Sub. S. B. No. 341 As Passed by the Senate

As Passed by the Senate

129th General Assembly

Regular Session

2011-2012

Sub. S. B. No. 341

Senators Niehaus, Kearney

Cosponsors: Senators Bacon, Coley, Hite, Jones, Lehner, Seitz, Tavares

A BILL

To amend sections 3309.05, 3309.051, 3309.061,

3309.07, 3309.072, 3309.074, 3309.075, 3309.10,

3309.15, 3309.21, 3309.22, 3309.23, 3309.26,

3309.28, 3309.33, 3309.34, 3309.341, 3309.343,

3309.35, 3309.353, 3309.354, 3309.36, 3309.362,

3309.371, 3309.373, 3309.376, 3309.379, 3309.3710,

3309.3711, 3309.39, 3309.401, 3309.41, 3309.44,

3309.45, 3309.46, 3309.47, 3309.50, 3309.51,

3309.69, and 3309.88; to enact new section

3309.571 and sections 3309.392 and 3309.474; and

to repeal sections 3309.38 and 3309.571 of the

Revised Code to revise the law governing the

School Employees Retirement System.

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

Section 1. That sections 3309.05, 3309.051, 3309.061,	14
3309.07, 3309.072, 3309.074, 3309.075, 3309.10, 3309.15, 3309.21,	15
3309.22, 3309.23, 3309.26, 3309.28, 3309.33, 3309.34, 3309.341,	16
3309.343, 3309.35, 3309.353, 3309.354, 3309.36, 3309.362,	17
3309.371, 3309.373, 3309.376, 3309.379, 3309.3710, 3309.3711,	18
3309.39, 3309.401, 3309.41, 3309.44, 3309.45, 3309.46, 3309.47,	19
3309.50, 3309.51, 3309.69, and 3309.88 be amended and that new	20
section 3309.571 and sections 3309.392 and 3309.474 be enacted to	21
read as follows:	22

Sec. 3309.05. (A) The school employees retirement board shall	23
consist of the following members:	24

~~(A)~~(1) One member, known as the treasurer of state's	25
investment designee, who shall be appointed by the treasurer of	26
state for a term of four years and who shall have the following	27
qualifications:	28

(a) The member is a resident of this state.

(b) Within the three years immediately preceding the	30
appointment, the member has not been employed by the public	31
employees retirement system, police and fire pension fund, state	32
teachers retirement system, school employees retirement system, or	33
state highway patrol retirement system or by any person,	34
partnership, or corporation that has provided to one of those	35
retirement systems services of a financial or investment nature,	36
including the management, analysis, supervision, or investment of	37
assets.	38

(c) The member has direct experience in the management,	39
analysis, supervision, or investment of assets.	40

(d) The member is not currently employed by the state or a	41
political subdivision of the state.	42

~~(B)~~(2) Four members, known as employee members, who shall be	43
members of the school employees retirement system, and who shall	44
be elected by ballot by the members of the system;	45

~~(C)~~(3) Two members, known as the retirant members, who shall	46
be former members of the retirement system who reside in this	47
state and currently receive an age and service retirement benefit,	48
a disability benefit, or benefits under a plan established under	49
section 3309.81 of the Revised Code. The retirant members shall be	50
elected by ballot by former members of the system who are	51
currently receiving an age and service retirement benefit, a	52
disability benefit, or benefits under a plan established under	53
section 3309.81 of the Revised Code.	54

~~(D)(1)~~(4) Two members, known as the investment expert	55
members, who shall be appointed to four-year terms. One investment	56
expert member shall be appointed by the governor, and one	57
investment expert member shall be jointly appointed by the speaker	58
of the house of representatives and the president of the senate.	59
Each investment expert member shall have the following	60
qualifications:	61

(a) The member is a resident of this state;

(b) Within the three years immediately preceding the	63
appointment, the member has not been employed by the public	64
employees state retirement system, police and fire pension fund,	65
state teachers retirement system, school employees retirement	66
system, or state highway patrol retirement system or by any	67
person, partnership, or corporation that has provided to one of	68
those retirement systems services of a financial or investment	69
nature, including the management, analysis, supervision, or	70
investment of assets;	71

(c) The member has direct experience in the management,	72
analysis, supervision, or investment of assets.	73

~~(2)~~(B) Any ~~investment expert~~ member appointed ~~to fill a~~	74
~~vacancy occurring prior to the expiration of the term for which~~	75
~~the member's predecessor was appointed holds~~under this section	76
shall hold office until the later of the end of ~~such~~the term~~. The~~	77
for which the member ~~continuesin office subsequent to the~~	78
~~expiration date of the member's term until~~is appointed or the	79
date the member's successor takes office~~, or until a period of~~	80
~~sixty days has elapsed, whichever occurs first~~.	81

Sec. 3309.051. Each ~~newly elected~~ member of the school	82
employees retirement board ~~and each individual appointed to fill a~~	83
~~vacancy on the board~~ shall, not later than ninety days after	84
commencing service as a board member, complete the orientation	85
program component of the retirement board member education program	86
established under section 171.50 of the Revised Code.	87

Each member of the board who has served a year or longer as a	88
board member shall, not less than twice each year, attend one or	89
more programs that are part of the continuing education component	90
of the retirement board member education program established under	91
section 171.50 of the Revised Code.	92

Sec. 3309.061. (A) The office of ~~an employee member or~~	93
~~retirant~~a member of the school employees retirement board who is	94
convicted of or pleads guilty to a felony, a theft offense as	95
defined in section 2913.01 of the Revised Code, or a violation of	96
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13,	97
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code	98
shall be deemed vacant. A person who has pleaded guilty to or been	99
convicted of an offense of that nature is ineligible for election	100
or appointment to ~~the office of employee or retirant member of~~ the	101
school employees retirement board.	102

(B) A member of the school employees retirement board who	103
willfully and flagrantly exercises authority or power not	104
authorized by law, refuses or willfully neglects to enforce the	105
law or to perform any official duty imposed by law, or is guilty	106
of gross neglect of duty, gross immorality, drunkenness,	107
misfeasance, malfeasance, or nonfeasance is guilty of misconduct	108
in office. On complaint and hearing in the manner provided for in	109
this section, the board member shall have judgment of forfeiture	110
of the office with all its emoluments entered against the board	111
member, creating in the office a vacancy to be filled as provided	112
by law.	113

(C) Proceedings for removal of a board member on any of the	114
grounds enumerated in division (B) of this section shall be	115
commenced by filing with the court of common pleas of the county	116
in which the board member resides a written complaint specifically	117
setting forth the charge. The complaint shall be accepted if	118
signed by the governor or signed as follows:	119

(1) If the complaint is against an employee member of the	120
board, the complaint must be signed by a number of members of the	121
retirement system that equals at least the following and must	122
include signatures of at least twenty employee members residing in	123
at least five different counties:	124

(a) If the employee member was most recently elected in	125
accordance with division (B) of section 3309.07 of the Revised	126
Code, ten per cent of the number of members of the system who	127
voted in that election;	128

(b) If the employee member most recently became a member of	129
the board pursuant to section 3309.06 of the Revised Code to fill	130
a vacancy in the board or took office in accordance with section	131
3309.061 of the Revised Code, ten per cent of the number of	132
members of the system who voted in the most recent election held	133
in accordance with division (B) of section 3309.07 of the Revised	134
Code for that employee member position on the board.	135

(2) If the complaint is against a retirant member of the	136
board, the complaint must be signed by a number of system	137
retirants that equals at least the following and must include	138
signatures of at least twenty retirant members residing in at	139
least five different counties:	140

(a) If the retirant member was most recently elected in	141
accordance with division (C) of section 3309.07 of the Revised	142
Code, ten per cent of the number of former members of the system	143
who voted in that election;	144

(b) If the retirant member most recently became a member of	145
the board pursuant to section 3309.06 of the Revised Code to fill	146
a vacancy in the board or took office in accordance with section	147
3309.061 of the Revised Code, ten per cent of the number of former	148
members of the system who voted in the most recent election held	149
in accordance with division (C) of section 3309.07 of the Revised	150
Code for that retirant member position on the board.	151

(D) The clerk of the court of common pleas in which a	152
complaint against a board member is filed under division (C) of	153
this section shall do both of the following with respect to the	154
complaint:	155

(1) Submit the signatures obtained pursuant to division (C)	156
of this section to the board for purposes of verifying the	157
validity of the signatures. The board shall verify the validity of	158
the signatures and report its findings to the court.	159

(2) Cause a copy of the complaint to be served on the board	160
member at least ten days before the hearing on the complaint. The	161
court shall hold a public hearing not later than thirty days after	162
the filing of the complaint. The court may subpoena witnesses and	163
compel their attendance in the same manner as in civil cases.	164
Process shall be served by the sheriff of the county in which the	165
witness resides. Witness fees and other fees in connection with	166
the proceedings shall be the same as in civil cases. The court may	167
suspend the board member pending the hearing.	168

If the court finds that one or more of the charges in the	169
complaint are true, it shall make a finding for removal of the	170
board member. The court's finding shall include a full, detailed	171
statement of the reasons for the removal. The finding shall be	172
filed with the clerk of the court and be made a matter of public	173
record.	174

The board member has the right to appeal to the court of	175
appeals.	176

(E) No individual who has been removed from the board	177
pursuant to this section shall be eligible to fill an elective or	178
appointed position as a member of the board.	179

Sec. 3309.07. (A) All elections for employee or retirant	180
members of the school employees retirement board shall be held	181
under the direction of the board in accordance with rules adopted	182
under section 3309.075 of the Revised Code.	183

(B) Any member of the school employees retirement system,	184
other than a disability benefit recipient, shall be eligible to be	185
nominated for election as an employee member of the board who has	186
been nominated by a petition that is signed by at least five	187
hundred members and certified in accordance with rules adopted	188
under section 3309.075 of the Revised Code. The petition shall	189
contain the signatures of not less than twenty members each from	190
at least ten counties wherein such members are employed. The	191
petition shall specify the term of office and position. The name	192
of any member so nominated shall be placed upon the ballot by the	193
board as a regular candidate. Other names of eligible candidates	194
may at any election be substituted for the regular candidates by	195
writing such names upon the ballot. The candidate receiving the	196
highest number of votes for any term as member of the board shall	197
be elected for such term on certification of the election results	198
in accordance with rules adopted under section 3309.075 of the	199
Revised Code. In any year in which two employee member or two	200
retirant member positions must be filled, the candidates who	201
receive the highest and second highest number of votes shall be	202
elected to the offices on certification of the election results in	203
accordance with rules adopted under section 3309.075 of the	204
Revised Code.	205

(C) Any former member of the school employees retirement	206
system described in division ~~(D)~~(A)(3) of section 3309.05 of the	207
Revised Code is eligible for election as a retirant member of the	208
board to represent former members currently receiving an age and	209
service retirement benefit, a disability benefit, or benefits	210
under a plan established under section 3309.81 of the Revised	211
Code, provided that such person has been nominated by a petition	212
that is certified in accordance with rules adopted under section	213
3309.075 of the Revised Code and signed by at least one hundred	214
fifty former members of the system who are currently receiving an	215
age and service retirement benefit, a disability benefit, or	216
benefits under a plan established under section 3309.81 of the	217
Revised Code. The petition shall contain the signatures of at	218
least ten such recipients from each of at least five counties	219
wherein recipients of benefits from this system reside. The	220
petition shall specify the term of office and position. The name	221
of any person so nominated shall be placed upon the ballot by the	222
board as a regular candidate. Other names of eligible candidates	223
may at any election be substituted for the regular candidates by	224
writing such names upon the ballot. The candidate receiving the	225
highest number of votes for any term as member of the board shall	226
be elected for such term on certification of the election results	227
in accordance with rules adopted under section 3309.075 of the	228
Revised Code.	229

No employee member of the board who retires while a member of	230
the board shall be eligible to become a retirant member of the	231
board for three years after the date of the member's retirement.	232

Sec. 3309.072. (A) As used in this section:

233

(1) "Campaign committee" means a candidate or a combination	234
of two or more persons authorized by a candidate to receive	235
contributions and in-kind contributions and make expenditures on	236
behalf of the candidate.	237

(2) "Candidate" means an individual who has been nominated	238
pursuant to section 3309.07 of the Revised Code for election to	239
the school employees retirement board or who is seeking to be	240
elected to fill a vacancy on the board pursuant to division (D) of	241
section 3309.06 of the Revised Code.	242

(3) "Contribution" means a loan, gift, deposit, forgiveness	243
of indebtedness, donation, advance, payment, transfer of funds or	244
transfer of anything of value including a transfer of funds from	245
an inter vivos or testamentary trust or decedent's estate, and the	246
payment by any person other than the person to whom the services	247
are rendered for the personal services of another person, which	248
contribution is made, received, or used for the purpose of	249
influencing the results of an election to the school employees	250
retirement board under section 3309.07 of the Revised Code or the	251
results of an election to fill a vacancy on the board pursuant to	252
division (C) of section 3309.06 of the Revised Code.	253
"Contribution" does not include:	254

(a) Services provided without compensation by individuals	255
volunteering a portion or all of their time on behalf of a person;	256

(b) Ordinary home hospitality;

257

(c) The personal expenses of a volunteer paid for by that	258
volunteer campaign worker.	259

(4) "Election day" means the following, as appropriate to the	260
situation:	261

(a) The first Monday in March of a year for which section	262
3309.06 of the Revised Code specifies that an election for a	263
member of the school employees retirement board be held;	264

(b) If, pursuant to section 3309.071 of the Revised Code, no	265
election is held, the first Monday in March of a year that the	266
election would have been held if not for section 3309.071 of the	267
Revised Code.	268

(5) "Expenditure" means the disbursement or use of a	269
contribution for the purpose of influencing the results of an	270
election to the school employees retirement board under section	271
3309.07 of the Revised Code or the results of an election to fill	272
a vacancy on the board pursuant to division (D) of section 3309.06	273
of the Revised Code.	274

(6) "Independent expenditure" means an expenditure by an	275
individual, partnership, or other entity advocating the election	276
or defeat of an identified candidate or candidates, that is not	277
made with the consent of, in coordination, cooperation, or	278
consultation with, or at the request or suggestion of any	279
candidate or candidates or of the campaign committee or agent of	280
the candidate or candidates. An independent expenditure shall not	281
be construed as being a contribution. As used in division (A)(6)	282
of this section:	283

(a) "Advocating" means any communication containing a message	284
advocating election or defeat.	285

(b) "Identified candidate" means that the name of the	286
candidate appears, a photograph or drawing of the candidate	287
appears, or the identity of the candidate is otherwise apparent by	288
unambiguous reference.	289

(c) "Made in coordination, cooperation, or consultation with,	290
or at the request or suggestion of, any candidate or the campaign	291
committee or agent of the candidate" means made pursuant to any	292
arrangement, coordination, or direction by the candidate, the	293
candidate's campaign committee, or the candidate's agent prior to	294
the publication, distribution, display, or broadcast of the	295
communication. An expenditure is presumed to be so made when it is	296
any of the following:	297

(i) Based on information about the candidate's plans,	298
projects, or needs provided to the person making the expenditure	299
by the candidate, or by the candidate's campaign committee or	300
agent, with a view toward having an expenditure made;	301

(ii) Made by or through any person who is, or has been,	302
authorized to raise or expend funds, who is, or has been, an	303
officer of the candidate's campaign committee, or who is, or has	304
been, receiving any form of compensation or reimbursement from the	305
candidate or the candidate's campaign committee or agent;	306

(iii) Made by a political party in support of a candidate,	307
unless the expenditure is made by a political party to conduct	308
voter registration or voter education efforts.	309

(d) "Agent" means any person who has actual oral or written	310
authority, either express or implied, to make or to authorize the	311
making of expenditures on behalf of a candidate, or means any	312
person who has been placed in a position with the candidate's	313
campaign committee or organization such that it would reasonably	314
appear that in the ordinary course of campaign-related activities	315
the person may authorize expenditures.	316

(7) "In-kind contribution" means anything of value other than	317
money that is used to influence the results of an election to the	318
school employees retirement board under section 3309.07 of the	319
Revised Code or the results of an election to fill a vacancy on	320
the board pursuant to division (C) of section 3309.06 of the	321
Revised Code or is transferred to or used in support of or in	322
opposition to a candidate and that is made with the consent of, in	323
coordination, cooperation, or consultation with, or at the request	324
or suggestion of the benefited candidate. The financing of the	325
dissemination, distribution, or republication, in whole or part,	326
of any broadcast or of any written, graphic, or other form of	327
campaign materials prepared by the candidate, the candidate's	328
campaign committee, or their authorized agents is an in-kind	329
contribution to the candidate and an expenditure by the candidate.	330

(8) "Personal expenses" includes ordinary expenses for	331
accommodations, clothing, food, personal motor vehicle or	332
airplane, and home telephone.	333

(B) Except as otherwise provided in division (D) of this	334
section, each candidate who, or whose campaign committee, receives	335
contributions or in-kind contributions totaling one thousand	336
dollars or more or has expenditures totaling one thousand dollars	337
or more in connection with the candidate's efforts to be elected	338
to the school employees retirement board under section 3309.07 of	339
the Revised Code shall file with the secretary of state two	340
complete, accurate, and itemized statements setting forth in	341
detail the contributions, in-kind contributions, and expenditures.	342
The statements shall be filed regardless of whether, pursuant to	343
section 3309.071 of the Revised Code, no election is held. The	344
statements shall be made on a form prescribed under section 111.30	345
of the Revised Code. Every expenditure in excess of twenty-five	346
dollars shall be vouched for by a receipted bill, stating the	347
purpose of the expenditures, that shall be filed with the	348
statement; a canceled check with a notation of the purpose of the	349
expenditure is a receipted bill for purposes of this division.	350

The first statement shall be filed not later than four p.m.	351
on the day that is twelve days before election day. The second	352
statement shall be filed not sooner than the day that is eight	353
days after election day and not later than thirty-eight days after	354
election day. The first statement shall reflect contributions and	355
in-kind contributions received and expenditures made to the close	356
of business on the twentieth day before election day. The second	357
statement shall reflect contributions and in-kind contributions	358
received and expenditures made during the period beginning on the	359
nineteenth day before election day and ending on the close of	360
business on the seventh day after election day.	361

(C) Each individual, partnership, or other entity who makes	362
an independent expenditure in connection with the candidate's	363
efforts to be elected to the school employees retirement board	364
under section 3309.07 of the Revised Code shall file with the	365
secretary of state two complete, accurate, and itemized statements	366
setting forth in detail the independent expenditures. The	367
statements shall be filed regardless of whether, pursuant to	368
section 3309.071 of the Revised Code, no election is held. The	369
statements shall be made on a form prescribed under section 111.30	370
of the Revised Code.	371

The first statement shall be filed not later than four p.m.	372
on the day that is twelve days before election day. The second	373
statement shall be filed not sooner than the day that is eight	374
days after election day and not later than thirty-eight days after	375
election day. The first statement shall reflect independent	376
expenditures made to the close of business on the twentieth day	377
before election day. The second statement shall reflect	378
independent expenditures made during the period beginning on the	379
nineteenth day before election day and ending on the close of	380
business on the seventh day after election day.	381

(D) Each candidate who, or whose campaign committee, receives	382
~~a contribution~~contributions or in-kind ~~contribution~~contributions	383
totaling one thousand dollars or more or ~~makes an expenditure~~has	384
expenditures totaling one thousand dollars or more in connection	385
with the candidate's efforts to be elected to fill a vacancy in	386
the ~~state teachers~~school employees retirement board pursuant to	387
division (C) of section 3309.06 of the Revised Code shall file	388
with the secretary of state a complete, accurate, and itemized	389
statement setting forth in detail the contributions, in-kind	390
contributions, and expenditures. The statement shall be made on a	391
form prescribed under section 111.30 of the Revised Code. Every	392
expenditure in excess of twenty-five dollars shall be vouched for	393
by a receipted bill, stating the purpose of the expenditures, that	394
shall be filed with the statement; a canceled check with a	395
notation of the purpose of the expenditure is a receipted bill for	396
purposes of this division.	397

The statement shall be filed within thirty-eight days after	398
the day the candidate takes office. The statement shall reflect	399
contributions and in-kind contributions received and expenditures	400
made to the close of business on the seventh day after the day the	401
candidate takes office.	402

(E) Each individual, partnership, or other entity that makes	403
an independent expenditure in connection with the candidate's	404
efforts to be elected to fill a vacancy in the school employees	405
retirement board under division (C) of section 3309.06 of the	406
Revised Code shall file with the secretary of state a complete,	407
accurate, and itemized statement setting forth in detail the	408
independent expenditures. The statement shall be made on a form	409
prescribed under section 111.30 of the Revised Code.	410

The statement shall be filed not later than thirty-eight days	411
after the day the candidate takes office. The statement shall	412
reflect independent expenditures made to the close of business on	413
the seventh day after the day the candidate takes office.	414

Sec. 3309.074. The secretary of state, or any person acting	415
on personal knowledge and subject to the penalties of perjury, may	416
file a complaint with the Ohio elections commission alleging a	417
violation of section 3309.073 of the Revised Code. The complaint	418
shall be made on a form prescribed and provided by the commission.	419

A complaint shall be filed not later than two years after the	420
occurrence of the act or failure to act that is the subject of the	421
complaint, except that if the act or failure to act involves	422
fraud, concealment, or misrepresentation and was not discovered	423
during that two-year period, a complaint may be filed not later	424
than one year after discovery of the act or failure to act.	425

On receipt of a complaint under this section, the commission	426
shall hold a hearing open to the public to determine whether the	427
violation alleged in the complaint has occurred. The commission	428
may administer oaths and issue subpoenas to any person in the	429
state compelling the attendance of witnesses and the production of	430
relevant papers, books, accounts, and reports. On the refusal of	431
any person to obey a subpoena or to be sworn or to answer as a	432
witness, the commission may apply to the court of common pleas of	433
Franklin county under section 2705.03 of the Revised Code. The	434
court shall hold contempt proceedings in accordance with Chapter	435
2705. of the Revised Code.	436

The commission shall provide the person accused of the	437
violation at least seven days prior notice of the time, date, and	438
place of the hearing. The accused may be represented by an	439
attorney and shall have an opportunity to present evidence, call	440
witnesses, and cross-examine witnesses.	441

At the hearing, the commission shall determine whether the	442
violation alleged in the complaint has occurred. If the commission	443
determines that a violation of division (A) of section 3309.073 of	444
the Revised Code has occurred, the commission shall either impose	445
a fine under section 3309.99 of the Revised Code or enter a	446
finding that good cause has been shown not to impose the fine. If	447
the commission determines that a violation of division (B) of	448
section 3309.073 of the Revised Code has occurred, the commission	449
shall impose the fine described in section 3309.99 of the Revised	450
Code, refer the matter to the appropriate prosecutor, or enter a	451
finding that good cause has been shown to not impose a fine or	452
refer the matter to the appropriate prosecutor.	453

Sec. 3309.075. (A) The school employees retirement board,	454
after consultation with the secretary of state, shall adopt rules	455
in accordance with ~~Chapter 119.~~section 111.15 of the Revised	456
Code, governing all of the following:	457

(1) The administration of elections of members of the board	458
under section 3309.07 of the Revised Code and elections held under	459
section 3309.06 of the Revised Code to fill vacancies on the	460
board;	461

(2) Nominating petitions for the elections;

462

(3) Certification of the validity of nominating petitions for	463
the elections;	464

(4) Certification of the results of the elections.

465

(B) The board may contract with the secretary of state or an	466
independent firm to administer the elections, certify the validity	467
of nominating petitions, and certify the results of the elections.	468
The secretary of state and the independent firm shall perform	469
these services in accordance with the rules adopted under division	470
(A) of this section. Notwithstanding section 3309.22 of the	471
Revised Code, the board shall provide information necessary for	472
the secretary of state or the independent firm to certify the	473
election. If the board contracts with an independent firm to	474
administer an election, the secretary of state may audit the	475
election.	476

Sec. 3309.10. (A) ~~The members~~No member of the school	477
employees retirement board shall be subject to disciplinary action	478
by an employer for absence from the member's regular employment	479
for service to the board.	480

Members of the ~~school employees retirement~~ board shall serve	481
without compensation from the retirement system, but ~~they~~an	482
employer shall be reimbursed from the expense fund for any	483
compensation paid to an employee member of the board or a retirant	484
member employed by a public employer in accordance with section	485
3309.341 of the Revised Code for ~~any loss of compensation they~~	486
~~may suffer through serving on~~service to the board~~, provided, that~~	487
~~the regular employee contribution shall be withheld from any such~~	488
~~reimbursements to cover loss of compensation and credited to the~~	489
~~member's savings account, or the board member or former board~~	490
~~member may pay all such amounts direct to the retirement system.~~	491
~~The corresponding employer contribution shall be transferred~~	492
~~annually from the expense fund and applied in the same manner as~~	493
~~the employers' trust fund contribution payment by the district,~~	494
~~from which the member's regular contributions are reported~~.	495

(B) The members of the board shall be reimbursed from the	496
expense fund for all actual necessary expenses incurred while	497
serving on the board.	498

~~(B)~~(C) The board may secure insurance coverage designed to	499
indemnify board members and employees for their actions or conduct	500
in the performance of official duties, and may pay required	501
premiums for such coverage from the expense fund.	502

~~(C)~~(D) The board shall adopt rules in accordance with section	503
111.15 of the Revised Code establishing a policy for reimbursement	504
of travel expenses incurred by board members in the performance of	505
their official duties. As part of any audit performed under	506
Chapter 117. of the Revised Code, an inquiry shall be made into	507
whether board members have complied with these rules.	508

~~(D)~~(E) No board member shall accept payment or reimbursement	509
for travel expenses, other than for meals and other food and	510
beverages provided to the member, from any source other than the	511
expense fund. Except in the case of an emergency, no out-of-state	512
travel expenses shall be reimbursed unless approved in advance by	513
a majority of the board at a regular board meeting.	514

Sec. 3309.15. (A) The members of the school employees	515
retirement board shall be the trustees of the funds created by	516
section 3309.60 of the Revised Code. The board shall have full	517
power to invest the funds. The board and other fiduciaries shall	518
discharge their duties with respect to the funds solely in the	519
interest of the participants and beneficiaries; for the exclusive	520
purpose of providing benefits to participants and their	521
beneficiaries and defraying reasonable expenses of administering	522
the school employees retirement system; with care, skill,	523
prudence, and diligence under the circumstances then prevailing	524
that a prudent person acting in a like capacity and familiar with	525
such matters would use in the conduct of an enterprise of a like	526
character and with like aims; and by diversifying the investments	527
of the system so as to minimize the risk of large losses, unless	528
under the circumstances it is clearly prudent not to do so.	529

The board may establish a partnership, trust, limited	530
liability company, corporation, including a corporation exempt	531
from taxation under the Internal Revenue Code, 100 Stat. 2085, 26	532
U.S.C.A. 1, as amended, or any other legal entity authorized to	533
transact business in this state.	534

(B) In exercising its fiduciary responsibility with respect	535
to the investment of the funds, it shall be the intent of the	536
board to give consideration to investments that enhance the	537
general welfare of the state and its citizens where the	538
investments offer quality, return, and safety comparable to other	539
investments currently available to the board. In fulfilling this	540
intent, equal consideration shall also be given to investments	541
otherwise qualifying under this section that involve minority	542
owned and controlled firms and firms owned and controlled by	543
women, either alone or in joint venture with other firms.	544

The board shall adopt, in regular meeting, policies,	545
objectives, or criteria for the operation of the investment	546
program that include asset allocation targets and ranges, risk	547
factors, asset class benchmarks, time horizons, total return	548
objectives, and performance evaluation guidelines. In adopting	549
policies and criteria for the selection of agents with whom the	550
board may contract for the administration of the funds, the board	551
shall comply with sections 3309.157 and 3309.159 of the Revised	552
Code and shall also give equal consideration to minority owned and	553
controlled firms, firms owned and controlled by women, and	554
ventures involving minority owned and controlled firms and firms	555
owned and controlled by women that otherwise meet the policies and	556
criteria established by the board. Amendments and additions to the	557
policies and criteria shall be adopted in regular meeting. The	558
board shall publish its policies, objectives, and criteria under	559
this provision no less often than annually and shall make copies	560
available to interested parties.	561

~~When reporting on the performance of investments,~~If the	562
board contracts with a person, including an agent or investment	563
manager, for the management or investment of the funds, the board	564
shall require the person to comply with the global investment	565
performance ~~presentation~~ standards established by the ~~association~~	566
~~for investment management and research~~chartered financial analyst	567
institute, or a successor organization, when reporting on the	568
performance of investments.	569

(C) All evidences of title of investments purchased by the	570
board under this section shall be delivered to the treasurer of	571
state, who is hereby designated as custodian thereof, or to the	572
treasurer of state's authorized agent, and the treasurer of state	573
or the agent shall collect principal, interest, dividends, and	574
distributions that become due and payable and place the same when	575
so collected into the custodial funds. Evidences of title of the	576
investments may be deposited by the treasurer of state for	577
safekeeping with an authorized agent, selected by the treasurer of	578
state, who is a qualified trustee under section 135.18 of the	579
Revised Code. The treasurer of state shall pay for the investments	580
purchased by the board pending receipt of the evidence of title of	581
the investments by the treasurer of state or to the treasurer of	582
state's authorized agent, and on receipt of written or electronic	583
instructions from the board or the board's designated agent	584
authorizing the purchase. The board may sell any investments held	585
by the board, and the treasurer of state or the treasurer of	586
state's authorized agent shall accept payment from the purchaser	587
and deliver evidence of title of the investment to the purchaser	588
on receipt of written or electronic instructions from the board or	589
the board's designated agent authorizing the sale, and pending	590
receipt of the moneys for the investments. The amount received	591
shall be placed into the custodial funds. The board and the	592
treasurer of state may enter into agreements to establish	593
procedures for the purchase and sale of investments under this	594
division and the custody of the investment.	595

(D) No purchase or sale of any investment shall be made under	596
this section except as authorized by the school employees	597
retirement board.	598

(E) Any statement of financial position distributed by the	599
board shall include the fair value, as of the statement date, of	600
all investments held by the board under this section.	601

Sec. 3309.21. (A) The school employees retirement board	602
shall have prepared annually by or under the supervision of an	603
actuary an actuarial valuation of the pension assets, liabilities,	604
and funding requirements of the school employees retirement system	605
as established pursuant to this chapter. The actuary shall	606
complete the valuation in accordance with actuarial standards of	607
practice promulgated by the actuarial standards board of the	608
American academy of actuaries and prepare a report of the	609
valuation. The report shall include all of the following:	610

(1) A summary of the benefit provisions evaluated;

611

(2) A summary of the census data and financial information	612
used in the valuation;	613

(3) A description of the actuarial assumptions, actuarial	614
cost method, and asset valuation method used in the valuation,	615
including a statement of the assumed rate of payroll growth and	616
assumed rate of growth or decline in the number of members	617
contributing to the retirement system;	618

(4) A summary of findings that includes a statement of the	619
actuarial accrued pension liabilities and unfunded actuarial	620
accrued pension liabilities;	621

(5) A schedule showing the effect of any changes in the	622
benefit provisions, actuarial assumptions, or cost methods since	623
the last annual actuarial valuation;	624

(6) A statement of whether contributions to the retirement	625
system are expected to be sufficient to satisfy the funding	626
objectives established by the board.	627

The board shall submit the report to the Ohio retirement	628
study council and the standing committees of the house of	629
representatives and the senate with primary responsibility for	630
retirement legislation not later than the first day of May	631
following the year for which the valuation was made.	632

(B) At such times as the school employees retirement board	633
determines, and at least once in each quinquennial period, the	634
board shall have prepared by or under the supervision of an	635
actuary an actuarial investigation of the mortality, service, and	636
other experience of the members, retirants, and beneficiaries of	637
the retirement system, and SERS retirants and other system	638
retirants as defined in section 3309.341 of the Revised Code to	639
update the actuarial assumptions used in the actuarial valuation	640
required by division (A) of this section. The actuary shall	641
prepare a report of the actuarial investigation. The report shall	642
be prepared and any recommended changes in actuarial assumptions	643
shall be made in accordance with the actuarial standards of	644
practice promulgated by the actuarial standards board of the	645
American academy of actuaries. The report shall include all of the	646
following:	647

(1) A summary of relevant decrement and economic assumption	648
experience observed over the period of the investigation;	649

(2) Recommended changes in actuarial assumptions to be used	650
in subsequent actuarial valuations required by division (A) of	651
this section;	652

(3) A measurement of the financial effect of the recommended	653
changes in actuarial assumptions.	654

The board shall submit the report to the Ohio retirement	655
study council and the standing committees of the house of	656
representatives and the senate with primary responsibility for	657
retirement legislation not later than the first day of May	658
following the last fiscal year of the period the report covers.	659

(C) The board may at any time request the actuary to make any	660
studies or actuarial valuations to determine the adequacy of the	661
rates of contribution as provided by section 3309.49 of the	662
Revised Code, and those rates may be adjusted by the board, as	663
recommended by the actuary, effective as of the first of any year	664
thereafter.	665

(D) The board shall have prepared by or under the supervision	666
of an actuary an actuarial analysis of any introduced legislation	667
expected to have a measurable financial impact on the retirement	668
system. The actuarial analysis shall be completed in accordance	669
with the actuarial standards of practice promulgated by the	670
actuarial standards board of the American academy of actuaries.	671
The actuary shall prepare a report of the actuarial analysis,	672
which shall include all of the following:	673

(1) A summary of the statutory changes that are being	674
evaluated;	675

(2) A description of or reference to the actuarial	676
assumptions and actuarial cost method used in the report;	677

(3) A description of the participant group or groups included	678
in the report;	679

(4) A statement of the financial impact of the legislation,	680
including the resulting increase, if any, in the employer normal	681
cost percentage; the increase, if any, in actuarial accrued	682
liabilities; and the per cent of payroll that would be required to	683
amortize the increase in actuarial accrued liabilities as a level	684
per cent of covered payroll for all active members over a period	685
not to exceed thirty years;	686

(5) A statement of whether the scheduled contributions to the	687
system after the proposed change is enacted are expected to be	688
sufficient to satisfy the funding objectives established by the	689
board.	690

Not later than sixty days from the date of introduction of	691
the legislation, the board shall submit a copy of the actuarial	692
analysis to the legislative service commission, the standing	693
committees of the house of representatives and the senate with	694
primary responsibility for retirement legislation, and the Ohio	695
retirement study council.	696

(E) The board shall have prepared annually a report giving a	697
full accounting of the revenues and costs relating to the	698
provision of benefits under sections 3309.375 and 3309.69 of the	699
Revised Code. The report shall be made as of June 30, 1997, and	700
the thirtieth day of June of each year thereafter. The report	701
shall include the following:	702

(1) A description of the statutory authority for the benefits	703
provided;	704

(2) A summary of the benefits;

705

(3) A summary of the eligibility requirements for the	706
benefits;	707

(4) A statement of the number of participants eligible for	708
the benefits;	709

(5) A description of the accounting, asset valuation, and	710
funding method used to provide the benefits;	711

(6) A statement of the net assets available for the provision	712
of the benefits as of the last day of the fiscal year;	713

(7) A statement of any changes in the net assets available	714
for the provision of benefits, including participant and employer	715
contributions, net investment income, administrative expenses, and	716
benefits provided to participants, as of the last day of the	717
fiscal year;	718

(8) For the last six consecutive fiscal years, a schedule of	719
the net assets available for the benefits, the annual cost of	720
benefits, administrative expenses incurred, and annual employer	721
contributions allocated for the provision of benefits;	722

(9) A description of any significant changes that affect the	723
comparability of the report required under this division;	724

(10) A statement of the amount paid under division ~~(C)~~(E) of	725
section 3309.69 of the Revised Code.	726

The board shall submit the report to the Ohio retirement	727
study council and the standing committees of the house of	728
representatives and the senate with primary responsibility for	729
retirement legislation not later than the thirty-first day of	730
December following the year for which the report was made.	731

Sec. 3309.22. (A)(1) As used in this division, "personal	732
history record" means information maintained in any format by the	733
board on an individual who is a member, former member,	734
contributor, former contributor, retirant, or beneficiary that	735
includes the address, electronic mail address, telephone number,	736
social security number, record of contributions, correspondence	737
with the system, and other information the board determines to be	738
confidential.	739

(2) The records of the board shall be open to public	740
inspection and may be made available in printed or electronic	741
format, except for the following, which shall be excluded, except	742
with the written authorization of the individual concerned:	743

(a) The individual's statement of previous service and other	744
information as provided for in section 3309.28 of the Revised	745
Code;	746

(b) Any information identifying by name and address the	747
amount of a monthly allowance or benefit paid to the individual;	748

749

(B) All medical reports and recommendations required by the	750
system are privileged except as follows:	751

(1) Copies of medical reports or recommendations shall be	752
made available to the following:	753

(a) The individual concerned, on written request;

754

(b) The personal physician, attorney, or authorized agent of	755
the individual concerned ~~upon~~on written release received from the	756
individual or the individual's agent~~, or when necessary for the~~	757
~~proper administration of the fund, to the~~;	758

759

(2) Documentation required by section 2929.193 of the Revised	760
Code shall be provided to a court holding a hearing under that	761
section.	762

(C) Any person who is a contributor of the system shall be	763
furnished, on written request, with a statement of the amount to	764
the credit of the person's account. The board need not answer more	765
than one such request of a person in any one year.	766

(D) Notwithstanding the exceptions to public inspection in	767
division (A)(2) of this section, the board may furnish the	768
following information:	769

(1) If a member, former member, contributor, former	770
contributor, or retirant is subject to an order issued under	771
section 2907.15 of the Revised Code or an order issued under	772
division (A) or (B) of section 2929.192 of the Revised Code or is	773
convicted of or pleads guilty to a violation of section 2921.41 of	774
the Revised Code, on written request of a prosecutor as defined in	775
section 2935.01 of the Revised Code, the board shall furnish to	776
the prosecutor the information requested from the individual's	777
personal history record.	778

(2) Pursuant to a court or administrative order issued under	779
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the	780
Revised Code, the board shall furnish to a court or child support	781
enforcement agency the information required under that section.	782

(3) At the written request of any person, the board shall	783
provide to the person a list of the names and addresses of	784
members, former members, retirants, contributors, former	785
contributors, or beneficiaries. The costs of compiling, copying,	786
and mailing the list shall be paid by such person.	787

(4) Within fourteen days after receiving from the director of	788
job and family services a list of the names and social security	789
numbers of recipients of public assistance pursuant to section	790
5101.181 of the Revised Code, the board shall inform the auditor	791
of state of the name, current or most recent employer address, and	792
social security number of each contributor whose name and social	793
security number are the same as that of a person whose name or	794
social security number was submitted by the director. The board	795
and its employees shall, except for purposes of furnishing the	796
auditor of state with information required by this section,	797
preserve the confidentiality of recipients of public assistance in	798
compliance with section 5101.181 of the Revised Code.	799

(5) The system shall comply with orders issued under section	800
3105.87 of the Revised Code.	801

On the written request of an alternate payee, as defined in	802
section 3105.80 of the Revised Code, the system shall furnish to	803
the alternate payee information on the amount and status of any	804
amounts payable to the alternate payee under an order issued under	805
section 3105.171 or 3105.65 of the Revised Code.	806

(6) At the request of any person, the board shall make	807
available to the person copies of all documents, including	808
resumes, in the board's possession regarding filling a vacancy of	809
an employee member or retirant member of the board. The person who	810
made the request shall pay the cost of compiling, copying, and	811
mailing the documents. The information described in this division	812
is a public record.	813

(7) The system shall provide the notice required by section	814
3309.673 of the Revised Code to the prosecutor assigned to the	815
case.	816

(E) A statement that contains information obtained from the	817
system's records that is signed by an officer of the retirement	818
system and to which the system's official seal is affixed, or	819
copies of the system's records to which the signature and seal are	820
attached, shall be received as true copies of the system's records	821
in any court or before any officer of this state.	822

Sec. 3309.23. (A) Except as provided in division (B) of this	823
section, the following shall be contributors to the school	824
employees retirement system:	825

(1) All employees, as defined in division (B) of section	826
3309.01 of the Revised Code;	827

(2) The employees of an existing or newly created employer	828
unit as defined in division (A) of section 3309.01 of the Revised	829
Code, supported in whole or in part by the state or any political	830
subdivision thereof and wholly controlled and managed by the state	831
or any subdivision thereof. Such employees shall become	832
contributors on the same terms and conditions as provided by this	833
chapter, provided the board of trustees or other managing body of	834
such school, college, or other institution, if such institution is	835
now in existence or if in existence on such date, shall agree by	836
formal resolution to accept all the requirements and obligations	837
imposed by this chapter upon employers. A certified copy of the	838
resolution shall be filed with the school employees retirement	839
board. When such resolution has been adopted and a copy of it	840
filed with the school employees retirement board, it shall not	841
later be subject to rescission or abrogation. Service in such	842
schools, colleges, or other institutions shall be then considered	843
in every way the same as service in the public schools.	844

(3) All other individuals who become members.

845

(B) The following individuals may choose to be exempt from	846
compulsory membership by filing a written application for	847
exemption with the employer within the first month after being	848
employed:	849

(1) A student who is not a member at the time of ~~his~~	850
employment and who is employed by the school, college, or	851
university in which hethe student is enrolled and regularly	852
attending classes;	853

(2) An emergency employee serving on a temporary basis in	854
case of fire, snow, earthquake, flood, or other similar emergency;	855

(3) An individual employed in a program established pursuant	856
to the "~~Job Training Partnership~~Workforce Investment Act," 96112	857
Stat. ~~1322~~936 (~~1982~~1998), 29 U.S.C.~~A. 1501~~2801, or any other	858
federal job training program.	859

(C) A member may elect to have employment by the school,	860
college, or university at which hethe member is enrolled and	861
regularly attending classes exempted from contribution to the	862
retirement system by filing a written application with ~~his~~the	863
member's employer within the first month after being so employed.	864

(D) In all cases of doubt pertaining to contributors on an	865
individual or group basis or the status of existing or newly	866
created employer units, the decision shall be made by the	867
retirement board, and such decision shall be final.	868

Sec. 3309.26. The membership of any person in the school	869
employees retirement system shall terminate if the person	870
withdraws the person's accumulated contributions, retires on a	871
retirement allowance as provided in sections 3309.36~~, 3309.38,~~ and	872
3309.381 of the Revised Code, or dies, unless otherwise provided	873
in Chapter 3309. of the Revised Code.	874

A former member with an account in the employees' savings	875
fund who formerly lost membership shall be reinstated as a member	876
with all the rights, privileges, and obligations as provided in	877
Chapter 3309. of the Revised Code.	878

Except as provided in this section, a member or former member	879
of the school employees retirement system with at least one and	880
one-half years of contributing service credit in this system, the	881
public employees retirement system, the state teachers retirement	882
system, the Ohio police and fire pension fund, or the state	883
highway patrol retirement system, subsequent to the withdrawal of	884
contributions and cancellation of service credit in this system	885
may restore such service credit by redepositing in the employees'	886
savings fund the amount withdrawn with interest at a rate to be	887
determined by the board, compounded annually, from the first of	888
the month of withdrawal to and including the month of redeposit. A	889
member may choose to purchase only part of such credit in any one	890
payment, subject to board rules. The total payment to restore	891
cancelled service credit, plus any interest credited thereto,	892
shall be considered as accumulated contributions of the member. If	893
a former member is eligible to buy the service credit as a member	894
of the Ohio police and fire pension fund, the state highway patrol	895
retirement system, or the city of Cincinnati retirement system,	896
the former member is ineligible to restore that service credit	897
under this section.	898

Sec. 3309.28. ~~Each employee~~Not later than thirty days after	899
an employee begins employment, the employer shall file with the	900
school employees retirement system a detailed statement ~~showing~~	901
~~sex, title, compensation, duties, date of birth,~~of the employee's	902
personal information and all ~~his prior~~of the employee's previous	903
service as an employee or such other service as comes under this	904
chapter or Chapter 145., 742., 3307., or 5505. of the Revised	905
Code, and ~~shall furnish~~ such other ~~facts~~information as the school	906
employees retirement board requires for the proper operation of	907
the school employees retirement system. ~~If an employee fails to~~	908
~~file the required record within thirty days after commencing~~	909
~~employment, the secretary shall so advise his employer who shall~~	910
~~thereafter withhold all salary payments to such employee until~~	911
~~such record is filed with the school employees retirement board.~~	912

Sec. 3309.33. (A) An employer may establish a retirement	913
incentive plan for its employees who are members of the school	914
employees retirement system. The plan shall provide for purchase	915
by the employer of service credit for eligible employees who	916
choose to participate in the plan and for payment by the employer	917
of the entire cost of such service credit. A plan established	918
under this section shall remain in effect until terminated by the	919
employer, except that, once established, the plan must remain in	920
effect for at least one year.	921

(B) ToAn employee who is a member of the school employees	922
retirement system shall be eligible to participate in a retirement	923
incentive plan~~, an employee must meet the following requirements:~~	924

~~(1) Either of the following:~~

925

~~(a) If the employee became a member of the retirement system~~	926
~~before the effective date of this amendment, the member has~~	927
~~attained fifty years of age;~~	928

~~(b) If the employee became a member of the retirement system~~	929
~~on or after the effective date of this amendment,~~established by	930
the employer if the employee has attained ~~fifty-five~~fifty-seven	931
years of age;	932

~~(2) The employee~~and agrees to retire and retires under	933
section 3309.36 of the Revised Code effective within ninety days	934
after receiving notice from the school employees retirement system	935
that service credit has been purchased for the employee under this	936
section.	937

(C) Participation in the plan shall be available to all	938
eligible employees except that the employer may limit the number	939
of persons for whom it purchases credit in any calendar year to a	940
specified percentage of its employees who are members of the	941
school employees retirement system on the first day of January of	942
that year. The percentage shall not be less than five per cent of	943
such employees. If participation is limited, employees with a	944
greater length of service with the employer have the right to	945
elect to have credit purchased before employees with a lesser	946
length of service with the employer.	947

(D) The amount of service credit purchased for any	948
participant shall be uniformly determined but shall not exceed the	949
lesser of the following:	950

(1) Five years of service credit;

951

(2) An amount of service credit equal to one-fifth of the	952
total service credited to the participant under Chapter 3309. of	953
the Revised Code.	954

For each year of service credit purchased under this section,	955
the employer shall pay an amount specified by the school employees	956
retirement board equal to the additional liability resulting from	957
the purchase of that year of service credit as determined by an	958
actuary employed by the board. Payments shall be made in	959
accordance with rules adopted by the board, and the board shall	960
notify each member when the member is credited with service	961
purchased under this section.	962

No payment made to the school employees retirement system	963
under this section shall affect any payment required by section	964
3309.49 of the Revised Code.	965

Sec. 3309.34. (A)(1) A member of the school employees	966
retirement system ~~whose membership began before the effective date~~	967
~~of this amendment~~ is eligible for service retirement ~~if the member~~	968
~~has~~under this division if either of the following is the case:	969

(a) On or before August 1, 2017, the member has at least	970
twenty-five years of total service credit and meets either of the	971
following requirements:	972

(i) Has at least five years of total service credit and has	973
attained sixty years of age~~, or if the member has~~;	974

(ii) Has at least thirty years of total service credit at any	975
age~~. A member whose membership began before the effective date of~~	976
~~this amendment is eligible for commuted service retirement if the~~	977
~~member has at least twenty-five years of total service credit and~~	978
~~has attained fifty-five years of age~~.	979

(b) As of August 1, 2017, the member will have less than	980
twenty-five years of total service credit but, not later than that	981
date, pays to the retirement system an amount equal to the	982
additional liability to the system resulting from the member's	983
retirement under this division.	984

(2) A(a) Except as provided in division (A)(2)(b) of this	985
section, a member ~~whose membership began on or after the effective~~	986
~~date of this amendment~~who, as of August 1, 2017, has less than	987
twenty-five years of total service credit is eligible for service	988
retirement under this division if the member meets one of the	989
following requirements:	990

~~(a)~~(i) Has earned at least ten years of total service credit	991
and has attained sixty-two years of age;	992

~~(b)~~(ii) Has earned at least twenty-five years of total	993
service credit and has attained sixty years of age;	994

~~(c)~~(iii) Has earned at least thirty years of total service	995
credit and has attained ~~fifty-five~~fifty-seven years of age.	996

(b) The board, by rule adopted under division (D) of this	997
section, may adjust the retirement eligibility requirements of	998
division (A)(2)(a) of this section if the board's actuary, in its	999
evaluation under division (C) of this section, determines that an	1000
adjustment is necessary to ensure that the retirement system meets	1001
the thirty-year amortization period requirement of section	1002
3309.211 of the Revised Code.	1003

(B) A member may retire by filing an application for	1004
retirement with the school employees retirement board on a form	1005
provided by the board. The board shall not retire the member	1006
sooner than the first day of the month next following the later	1007
of:	1008

(1) The last day of employment for which compensation was	1009
paid;	1010

(2) The attainment of minimum age and service credit	1011
eligibility for service or commuted service retirement.	1012

(C) ~~At least once every ten years~~In each five-year period,	1013
the board shall direct its actuary to evaluate the retirement	1014
eligibility requirements of this section.	1015

(D) The board, in consultation with its actuary, shall adopt	1016
rules to implement this section.	1017

Sec. 3309.341. (A) As used in this section and section	1018
3309.344 of the Revised Code:	1019

(1) "SERS retirant" means any person who is receiving a	1020
retirement allowance from the school employees retirement system	1021
under section 3309.36~~, 3309.38,~~ or 3309.381 or former section	1022
3309.38 of the Revised Code or any benefit paid under a plan	1023
established under section 3309.81 of the Revised Code.	1024

(2) "Other system retirant" means a member or former member	1025
of the public employees retirement system, Ohio police and fire	1026
pension fund, state teachers retirement system, state highway	1027
patrol retirement system, or Cincinnati retirement system who is	1028
receiving age and service or commuted age and service retirement,	1029
or a disability benefit from a system of which the retirant is a	1030
member or former member.	1031

(B)(1) Subject to this section and section 3309.345 of the	1032
Revised Code, an SERS retirant or other system retirant may be	1033
employed by a public employer. If so employed, the SERS retirant	1034
or other system retirant shall contribute to the school employees	1035
retirement system in accordance with section 3309.47 of the	1036
Revised Code, and the employer shall make contributions in	1037
accordance with section 3309.49 of the Revised Code.	1038

(2) An employer that employs an SERS retirant or other system	1039
retirant shall notify the retirement board of the employment not	1040
later than the end of the month in which the employment commences.	1041
On receipt of notice from an employer that a person who is an	1042
other system retirant has been employed, the school employees	1043
retirement system shall notify the state retirement system of	1044
which the other system retirant was a member of such employment.	1045

(C) An SERS retirant or other system retirant who has	1046
received a retirement allowance or disability benefit for less	1047
than two months when employment subject to this section commences	1048
shall forfeit the retirement allowance or disability benefit for	1049
any month the SERS retirant or other system retirant is employed	1050
prior to the expiration of the two-month period. Service and	1051
contributions for that period shall not be included in the	1052
calculation of any benefits payable to the SERS retirant or other	1053
system retirant, and those contributions shall be refunded on	1054
death or termination of the employment. Contributions made on	1055
compensation earned after the expiration of such period shall be	1056
used in the calculation of the benefit or payment due under	1057
section 3309.344 of the Revised Code.	1058

(D) On receipt of notice from the Ohio police and fire	1059
pension fund, public employees retirement system, or state	1060
teachers retirement system of the re-employment of an SERS	1061
retirant, the school employees retirement system shall not pay, or	1062
if paid shall recover, the amount to be forfeited by the SERS	1063
retirant in accordance with section 145.38, 742.26, or 3307.35 of	1064
the Revised Code.	1065

(E) An SERS retirant or other system retirant subject to this	1066
section is not a member of the school employees retirement system;	1067
does not have any of the rights, privileges, or obligations of	1068
membership, except as specified in this section; and is not	1069
eligible to receive health, medical, hospital, or surgical	1070
benefits under section 3309.69 of the Revised Code for employment	1071
subject to this section.	1072

(F) If the disability benefit of an other system retirant	1073
employed under this section is terminated, the retirant shall	1074
become a member of the school employees retirement system,	1075
effective on the first day of the month next following the	1076
termination, with all the rights, privileges, and obligations of	1077
membership. If the retirant, after the termination of the	1078
disability benefit, earns two years of service credit under this	1079
retirement system or under the public employees retirement system,	1080
Ohio police and fire pension fund, state teachers retirement	1081
system, or state highway patrol retirement system, the retirant's	1082
prior contributions as an other system retirant under this section	1083
shall be included in the retirant's total service credit as a	1084
school employees retirement system member, and the retirant shall	1085
forfeit all rights and benefits of this section. Not more than one	1086
year of credit may be given for any period of twelve months.	1087

(G) This section does not affect the receipt of benefits by	1088
or eligibility for benefits of any person who on August 29, 1976,	1089
was receiving a disability benefit or service retirement pension	1090
or allowance from a state or municipal retirement system in Ohio	1091
and was a member of any other state or municipal retirement system	1092
of this state.	1093

(H) The school employees retirement board may adopt rules to	1094
carry out this section.	1095

Sec. 3309.343. (A) As used in this section:

1096

(1) In addition to the meaning in section 3309.01 of the	1097
Revised Code, when appropriate "compensation" has the same meaning	1098
as in section 3307.01 of the Revised Code.	1099

(2) "Earnable salary" has the same meaning as in section	1100
145.01 of the Revised Code.	1101

(3) "SERS position" means a position for which a member of	1102
the school employees retirement system is making contributions to	1103
the system.	1104

(4) "Other state retirement system" means the public	1105
employees retirement system or the state teachers retirement	1106
system.	1107

(5) "State retirement system" means the public employees	1108
retirement system, state teachers retirement system, or the school	1109
employees retirement system.	1110

(B)(1) A member of the school employees retirement system who	1111
holds two or more SERS positions may retire under section 3309.35,	1112
3309.36, ~~3309.38,~~ or 3309.46 of the Revised Code from the position	1113
for which the annual compensation at the time of retirement is	1114
highest and continue to contribute to the retirement system for	1115
the other SERS position or positions.	1116

(2) A member of the school employees retirement system who	1117
also holds one or more other positions covered by the other state	1118
retirement systems may retire under section 3309.35, 3309.36,	1119
~~3309.38,~~ or 3309.46 of the Revised Code from the SERS position and	1120
continue contributing to the other state retirement systems if the	1121
annual compensation for the SERS position at the time of	1122
retirement is greater than annual compensation or earnable salary	1123
for the position, or any of the positions, covered by the other	1124
state retirement systems.	1125

(3) A member of the school employees retirement system who	1126
holds two or more SERS positions and at least one other position	1127
covered by one of the other state retirement systems may retire	1128
under section 3309.35, 3309.36, ~~3309.38,~~ or 3309.46 of the Revised	1129
Code from one of the SERS positions and continue contributing to	1130
the school employees retirement system and the other state	1131
retirement system if the annual compensation for the SERS position	1132
from which the member is retiring is, at the time of retirement,	1133
greater than the annual compensation or earnable salary for any of	1134
the positions for which the member is continuing to make	1135
contributions.	1136

(4) A member of the school employees retirement system who	1137
has retired as provided in division (B)(2) or (3) of section	1138
145.383 or division (B)(2) or (3) of section 3307.351 of the	1139
Revised Code may continue to contribute to the school employees	1140
retirement system for an SERS position if the member held the	1141
position at the time of retirement from the other state retirement	1142
system.	1143

(5) A member who contributes to the school employees	1144
retirement system in accordance with division (B)(1), (3), or (4)	1145
of this section shall contribute in accordance with section	1146
3309.47 of the Revised Code. The member's employer shall	1147
contribute as provided in section 3309.49 of the Revised Code.	1148
Neither the member nor the member's survivors are eligible for any	1149
benefits based on those contributions other than those provided	1150
under section 145.384, 3307.352, or 3309.344 of the Revised Code.	1151

(C)(1) In determining retirement eligibility and the annual	1152
retirement allowance of a member who retires as provided in	1153
division (B)(1), (2), or (3) of this section, the following shall	1154
be used to the date of retirement:	1155

(a) The member's earnable salary and compensation for all	1156
positions covered by a state retirement system;	1157

(b) Total service credit in any state retirement system,	1158
except that the credit shall not exceed one year of credit for any	1159
period of twelve months;	1160

1161

(2) A member who retires as provided in division (B)(1), (2),	1162
or (3) of this section is a retirant for all purposes of this	1163
chapter, except that the member is not subject to section 3309.341	1164
of the Revised Code for a position or positions for which	1165
contributions continue under those divisions or division (B)(4) of	1166
this section.	1167

(D) A retired member receiving a benefit under section	1168
3309.344 of the Revised Code based on employment subject to this	1169
section is not a member of the school employees retirement system	1170
and does not have any rights, privileges, or obligations of	1171
membership. The retired member is an SERS retirant for purposes of	1172
section 3309.341 of the Revised Code.	1173

(E) The school employees retirement board may adopt rules to	1174
carry out this section.	1175

Sec. 3309.35. (A) As used in this section:

1176

(1) "State retirement system" means the public employees	1177
retirement system, state teachers retirement system, or school	1178
employees retirement system.	1179

(2) "Total service credit" means all service credit earned in	1180
all state retirement systems, except credit for service subject to	1181
section 3309.341 of the Revised Code. Total service credit shall	1182
not exceed one year of credit for any twelve-month period.	1183

(3) In addition to the meaning given in division (O) of	1184
section 3309.01 of the Revised Code, "disability benefit" means	1185
"disability benefit" as defined in sections 145.01 and 3307.01 of	1186
the Revised Code.	1187

(B) To coordinate and integrate membership in the state	1188
retirement systems, at the option of a member, total contributions	1189
and service credit in all state retirement systems, including	1190
amounts paid to restore service credit under sections 145.311,	1191
3307.711, and 3309.261 of the Revised Code, shall be used in	1192
determining the eligibility and total retirement or disability	1193
benefit payable. When total contributions and service credit are	1194
so combined, the following provisions apply:	1195

(1) Service and commuted service retirement or a disability	1196
benefit is effective no sooner than the first day of the month	1197
next following the last day of employment for which compensation	1198
was paid. If the application is filed after that date, the board	1199
may retire the member on the first day of the month next following	1200
the last day of employment for which compensation was paid.	1201

(2) ~~In determining eligibility~~Eligibility for a disability	1202
benefit~~, the medical examiner's report to~~shall be determined by	1203
the ~~retirement~~ board of ~~any~~the state retirement system~~, showing~~	1204
that will calculate and pay the ~~member's disability incapacitates~~	1205
~~the member for the performance of duty, may~~benefit, as provided	1206
in division (B)(3) of this section. The state retirement system	1207
calculating and paying the disability benefit shall certify the	1208
determination to the board of each other state retirement system	1209
in which the member has service credit and shall be accepted by	1210
~~the state retirement boards~~that board as sufficient for granting	1211
a disability benefit.	1212

(3) The board of the state retirement system in which the	1213
member had the greatest service credit, without adjustment, shall	1214
~~determine~~calculate and pay the total retirement or disability	1215
benefit. Where the member's credit is equal in two or more state	1216
retirement systems, the system having the largest total	1217
contributions of the member shall ~~determine~~calculate and pay the	1218
total benefit.	1219

(4) In determining the total credit to be used in calculating	1220
a retirement allowance or disability benefit, credit shall not be	1221
reduced below that certified by the system or systems transferring	1222
credit, except that such total combined service credit shall not	1223
exceed one year of credit for any one "year" as defined in the law	1224
of the system making the calculation.	1225

(5) The state retirement system ~~determining~~calculating and	1226
paying a retirement or disability benefit shall receive from the	1227
other system or systems the member's refundable account at	1228
retirement or the effective date of a disability benefit plus an	1229
amount from the employers' trust fund equal to the member's	1230
refundable account less the interest credited under section	1231
145.471, 145.472, or 3307.563 of the Revised Code. If applicable,	1232
the retirement system ~~determining~~calculating and paying the	1233
benefit shall receive from the public employees retirement system	1234
a portion of the amount paid on behalf of the member by an	1235
employer under section 145.483 of the Revised Code. The portion	1236
shall equal the product obtained by multiplying by two the amount	1237
the member would have contributed during the period the employer	1238
failed to deduct contributions, as described in section 145.483 of	1239
the Revised Code.	1240

(a) The annuity rates and mortality tables of the state	1241
retirement system making the calculation and paying the benefit	1242
shall be exclusively applicable.	1243

(b) Deposits made for the purchase of an additional annuity,	1244
and including guaranteed interest, upon the request of the member,	1245
shall be transferred to the state retirement system paying the	1246
retirement or disability benefit. The return upon such deposits	1247
shall be that offered by the state retirement system making the	1248
calculation and paying the retirement or disability benefit.	1249

(C) A former member receiving a retirement or disability	1250
benefit under this section, who accepts employment amenable to	1251
coverage in any state retirement system that participated in the	1252
member's combined benefit, shall be subject to the applicable	1253
provisions of law governing such re-employment. If a former member	1254
should be paid any amount in a retirement allowance, to which the	1255
former member is not entitled under the applicable provisions of	1256
law governing such re-employment, such amount shall be recovered	1257
by the state retirement system paying such allowance by utilizing	1258
any recovery procedure available under the code provisions of the	1259
state retirement system covering such re-employment.	1260

(D) An SERS retirant or other system retirant, as defined in	1261
section 3309.341 of the Revised Code, is not eligible to receive	1262
any benefit under this section for service subject to section	1263
3309.341 of the Revised Code.	1264

Sec. 3309.353. As used in this section, "benefit" means any	1265
allowance, pension, or other benefit to which an individual is	1266
entitled and that hethe individual receives pursuant to section	1267
3309.36, ~~3309.38,~~ 3309.40, 3309.45, or 3309.46 or former section	1268
3309.38 of the Revised Code.	1269

The annual amount of each benefit for which eligibility was	1270
established prior to February 1, 1983, shall, after the adjustment	1271
required by section 3309.374 of the Revised Code, be increased by	1272
five per cent.	1273

Sec. 3309.354. As used in this section, "benefit" means any	1274
allowance, pension, or other benefit to which an individual is	1275
entitled and that he receives pursuant to section 3309.35,	1276
3309.36, ~~3309.38,~~ 3309.40, 3309.45, or 3309.46 or former section	1277
3309.38 of the Revised Code.	1278

Effective the first day of the month following ~~the effective~~	1279
~~date of this section~~September 9, 1988, the annual amount of	1280
benefits shall be increased as follows:	1281

(A) The annual amount of each benefit for which eligibility	1282
was established prior to February 1, 1983, shall, after all	1283
adjustments required by this chapter, be increased by two per	1284
cent;	1285

(B) The annual amount of each benefit for which eligibility	1286
was established on or after February 1, 1983, but prior to ~~the~~	1287
~~effective date of this section~~September 9, 1988, shall, after all	1288
adjustments required by this chapter, be increased by five per	1289
cent.	1290

Sec. 3309.36. (A)~~(1)~~ A member of the school employees	1291
retirement system ~~whose membership began before the effective date~~	1292
~~of this amendment~~ who retires on service retirement shall be	1293
granted a retirement allowance consisting of the lesser of the sum	1294
of the following amounts or the limit established by section 415	1295
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	1296
415, as amended:	1297

~~(a)~~(1) An annuity having a reserve equal to the amount of the	1298
employee's accumulated contributions at that time;	1299

~~(b)~~(2) A pension of equivalent amount;

1300

~~(c) An additional pension of forty dollars multiplied by the~~	1301
~~number of years of such prior service credit;~~	1302

~~(d)~~(3) For members who have ten or more years of service	1303
credit accumulated prior to October 1, 1956, a basic annual	1304
pension equal to one hundred eighty dollars, except that such	1305
basic annual pension shall not exceed the sum of the total annual	1306
benefits provided by divisions (A)(1),and (2)~~, and (3)~~ of this	1307
section.	1308

~~(2) A member whose membership began on or after the effective~~	1309
~~date of this amendment who retires on service retirement shall be~~	1310
~~granted a retirement allowance consisting of the lesser of the sum~~	1311
~~of the following amounts or the limit established by section 415~~	1312
~~of the "Internal Revenue Code of 1986":~~	1313

~~(a) An annuity having a reserve equal to the amount of the~~	1314
~~employee's accumulated contributions at that time;~~	1315

~~(b) A pension of equivalent amount.~~

1316

(B)(1)(a) When a member retires on service retirement under	1317
division (A)(1) of section 3309.34 of the Revised Code, the	1318
member's allowance when computed as an annual single lifetime	1319
allowance as provided in ~~divisions~~division (A)~~(1) and (2)~~ of this	1320
section ~~and section 3309.38 of the Revised Code~~, based upon	1321
attained age sixty-five or thirty years of total service credit,	1322
shall be not less than the greater of the amounts determined by	1323
multiplying the member's total service credit by the following:	1324

~~(a)~~(i) Eighty-six dollars;

1325

~~(b)~~(ii) Two and two-tenths per cent of the member's final	1326
average salary for each of the first thirty years of service	1327
credit or fraction thereof plus two and one-half per cent of the	1328
member's final average salary for each subsequent year of service	1329
credit or fraction thereof.	1330

(b) When a member retires on service retirement under	1331
division (A)(2) of section 3309.34 of the Revised Code, the	1332
member's allowance when computed as an annual single lifetime	1333
allowance as provided in division (A) of this section, based on	1334
attained age sixty-seven or thirty years of total service credit,	1335
shall be not less than the greater of the amounts determined by	1336
multiplying the member's total service credit by the following:	1337

(i) Eighty-six dollars;

1338

(ii) Two and two-tenths per cent of the member's final	1339
average salary for each of the first thirty years of service	1340
credit or fraction thereof plus two and one-half per cent of the	1341
member's final average salary for each subsequent year of service	1342
credit or fraction thereof.	1343

(2) For a member ~~whose membership began before the effective~~	1344
~~date of this amendment~~who retires under division (A)(1) of	1345
section 3309.34 of the Revised Code, the annual single lifetime	1346
allowance determined under division (B)(1)(a) of this section	1347
shall be adjusted by the greater percentage shown in the following	1348
schedule opposite the member's attained age or years of Ohio	1349
service credit:	1350

Years of	Per Cent		1351
Attained	or	Ohio Service	of	1352
Age		Credit	Base Amount	1353
58		25	75%	1354
59		26	80	1355
60		27	85	1356
61			88	1357
28	90		1358
62			91	1359
63			94	1360
29	95		1361
64			97	1362
65		30 or more	100	1363

For a member ~~whose membership began before the effective date of~~	1364
~~this amendment~~ who retires under division (A)(1) of section	1365
3309.34 of the Revised Code, the right to a benefit shall vest in	1366
accordance with the following schedule, based on the member's	1367
attained age by September 1, 1976:	1368

	Per Cent	1369
Attained	of	1370
Age	Base Amount	1371
66	102	1372
67	104	1373
68	106	1374
69	108	1375
70 or more	110	1376

(3) For a member ~~whose membership began on or after the~~	1377
~~effective date of this amendment~~who retires under division (A)(2)	1378
of section 3309.34 of the Revised Code, the annual single lifetime	1379
allowance determined under division (B)(1)(b) of this section	1380
shall be adjusted to be the actuarial equivalent of the member's	1381
retirement allowance, as determined by the retirement board's	1382
actuary, had the member retired at age ~~sixty-five~~sixty-seven or	1383
with thirty years of service credit, except that the retirement	1384
allowance shall not be less than the following:	1385

	Per Cent	1386
Years of Service	of	1387
Credit	Base Amount	1388
25	75%	1389
26	80	1390
27	85	1391
28	90	1392
29	95	1393

(4) The annual single lifetime allowance which a retirant	1394
shall receive under this division shall not exceed the lesser of	1395
one hundred per cent of the member's final average salary or the	1396
limit established by section 415 of the "Internal Revenue Code of	1397
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	1398

(C) Retirement allowances determined under this section shall	1399
be paid as provided in section 3309.46 of the Revised Code.	1400

(D) At least once every ~~ten~~five years, the school employees	1401
retirement board shall direct its actuary to evaluate the	1402
actuarial equivalents in division (B)(3) of this section to	1403
determine their appropriateness. The board may adjust the	1404
actuarial equivalents in accordance with the actuary's	1405
recommendations.	1406

Sec. 3309.362. As used in this section, "benefit" means any	1407
allowance, pension, or other benefit to which an individual is	1408
entitled and that hethe individual receives under section	1409
3309.35, 3309.36, ~~3309.38,~~ 3309.40, 3309.45, or 3309.46 or former	1410
section 3309.38 of the Revised Code.	1411

Effective July 1, 1981:

1412

(A) The annual amount of each benefit for which eligibility	1413
was established prior to January 1, 1977, shall, after the	1414
adjustment required by section 3309.374 of the Revised Code, be	1415
increased by six per cent or six hundred dollars, whichever is	1416
less.	1417

(B) The annual amount of each benefit for which eligibility	1418
was established on or after January 1, 1977, but prior to January	1419
1, 1980, shall, after the adjustment required by section 3309.374	1420
of the Revised Code, be increased by four per cent or four hundred	1421
dollars, whichever is less.	1422

Sec. 3309.371. On and after October 1, 1957, all persons in	1423
receipt of, or who are or become eligible to receive, a monthly	1424
allowance, pension, or other benefit effective prior to June 29,	1425
1955, which is payable or becomes payable pursuant to sections	1426
3309.36 to ~~3309.38~~3309.3712, 3309.40, and 3309.65 and former	1427
section 3309.38 of the Revised Code, or an allowance payable at	1428
any time under an option elected by a member and effective prior	1429
to that date, shall be paid an increased allowance, pension, or	1430
benefit as follows:	1431

(A) An amount determined by increasing the original	1432
allowance, pension, or benefit by the following percentages as	1433
determined by the calendar year in which the allowance, pension,	1434
or benefit became effective:	1435

Calendar Year	Per Cent	1436
Effective	of Increase	1437
1937 - 1939	100	1438
1940	94	1439
1941	89	1440
1942	77	1441
1943	70	1442
1944	68	1443
1945	66	1444
1946	55	1445
1947	35	1446
1948	23	1447
1949	25	1448
1950	23	1449
1951	8	1450
1952	4	1451
1953	3	1452
1954	2	1453
Prior to June 29, 1955	2	1454

(B) If the amount of any such allowance, pension, or other	1455
benefit is increased by division (A) of this section to an amount	1456
less than one hundred ten per cent of the present amount payable	1457
immediately prior to October 1, 1957, such present amount shall be	1458
increased by ten per cent.	1459

(C) On and after August 1, 1959, the monthly allowance,	1460
pension, or other benefit effective prior to June 29, 1955,	1461
(exclusive of any amount receivable monthly by reason of a	1462
voluntary deposit made for additional annuity), together with the	1463
supplemental allowance payable pursuant to divisions (A) and (B)	1464
of this section, shall be increased by twelve per cent.	1465

Sec. 3309.373. (A) On and after July 1, 1968, all	1466
allowances, pensions, or other benefits, which are payable or	1467
become payable and for which eligibility is established prior to	1468
July 1, 1968, pursuant to sections 3309.35, 3309.36, ~~3309.38,~~	1469
3309.40, 3309.45, and 3309.46 and former section 3309.38 of the	1470
Revised Code shall be increased by the percentages as determined	1471
by the effective date of the allowance, pension, or benefit as	1472
follows:	1473

Effective Date of Benefit	Percentage of	1474
Calendar Year	Increase	1475
1937 through 1955	24.3	1476
1956	22.5	1477
1957	18.4	1478
1958	15.2	1479
1959	14.3	1480
1960	12.5	1481
1961	11.3	1482
1962	10.1	1483
1963	8.7	1484
1964	7.3	1485
1965	5.6	1486
1966	2.6	1487
1967	2.0	1488
January 1, 1968 through June 30, 1968	2.0	1489

(B)(1) All increases as determined by applying the	1490
percentages in the table in division (A) of this section shall be	1491
reduced by the dollar amount of the increases granted in 1965	1492
pursuant to section 3309.372 of the Revised Code, except that no	1493
allowance, pension, or benefit shall be reduced below the amount	1494
due June 30, 1968 and no allowance granted under this section	1495
shall be less than a total annual sum of thirty-six dollars.	1496

(2) The allowances increased by division (A) of this section	1497
shall exclude any monthly amount payable by reason of any	1498
voluntary deposits made under section 3309.47 of the Revised Code.	1499

(3) The increases provided by this section shall be granted	1500
notwithstanding the final average salary limitation in sections	1501
3309.36, 3309.40, and 3309.45 of the Revised Code.	1502

(4) The cost of the increases provided by this section shall	1503
be included in the employer contribution rate provided by section	1504
3309.49 of the Revised Code. Such employer's contribution rate	1505
shall not be increased until July 1, 1969 or later to reflect the	1506
increased costs created by this section.	1507

Sec. 3309.376. On and after December 31, 1971, all persons	1508
who retired and were eligible to receive a pension that was	1509
payable prior to July 1, 1968, pursuant to section 3309.36,	1510
~~3309.38,~~ or 3309.40 or former section 3309.38 of the Revised Code,	1511
or in the event of the death of such persons, the person	1512
designated by the deceased to receive payments under section	1513
3309.46 of the Revised Code, shall receive an additional monthly	1514
payment of two dollars for each year between the member's	1515
effective date of retirement or disability and December 31, 1971,	1516
or an additional fifty dollars, whichever is less.	1517

Sec. 3309.379. (A) On and after the first day of the month	1518
following the effective date of this section, each person eligible	1519
to receive an allowance, pension, or benefit, pursuant to sections	1520
3309.35, 3309.36, ~~3309.38,~~ 3309.40, division (A) of section	1521
3309.45, and section 3309.46 and former section 3309.38 of the	1522
Revised Code, that was based upon an award made effective before	1523
June 30, 1955, shall have the allowance, pension, or benefit	1524
payable as of September 30, 1974, recalculated by the school	1525
employees retirement board so that each such person shall receive	1526
an annual single lifetime allowance, pension, or benefit or its	1527
actuarial equivalent of not less than one hundred forty dollars	1528
for each year of the member's total service credit, except that	1529
service credit exceeding thirty-two years shall not be used in the	1530
recalculation, and a final average salary limitation shall not be	1531
applied.	1532

If the amount of the allowance, pension, or benefit	1533
recalculated under this division is less than the amount that is	1534
payable on the effective date of this section, then the greater	1535
allowance, pension, or benefit shall be continued.	1536

(B) On and after the first day of the month following the	1537
effective date of this section, each person receiving an	1538
allowance, pension, or benefit, pursuant to sections 3309.35,	1539
3309.36, ~~3309.38,~~ 3309.40, division (A) of section 3309.45, and	1540
section 3309.46 and former section 3309.38 of the Revised Code,	1541
that was first effective on and after June 30, 1955, through June	1542
30, 1971, shall be paid an increased allowance, pension, or	1543
benefit as follows:	1544

Effective Date of the Member's		1545
Allowance, Pension, or Benefit:	Per Cent of Increase:	1546
June 30, 1955 through June 29, 1959	33	1547
June 30, 1959, through October 31, 1965	21	1548
November 1, 1965, through June 30, 1968	14	1549
July 1, 1968, through June 30, 1971	5	1550

The increase shall be applied to the allowance, pension, or	1551
benefit payable on the effective date of this section.	1552

(C) On and after the first day of the month following the	1553
effective date of this section, each person receiving or qualified	1554
to receive an allowance, pension, or benefit, pursuant to division	1555
(B) of section 3309.45 of the Revised Code, that was effective on	1556
and after June 14, 1951, through August 26, 1970, shall receive an	1557
increase in such allowance, pension, or benefit in the amount of	1558
twenty per cent.	1559

Sec. 3309.3710. (A) Effective July 1, 1981, each person	1560
eligible to receive an allowance, pension, or benefit pursuant to	1561
sections 3309.35, 3309.36, ~~3309.38,~~ 3309.40, division (A) of	1562
section 3309.45, and section 3309.46 and former section 3309.38 of	1563
the Revised Code that was based upon an award made effective	1564
before July 1, 1974, shall have the person's monthly allowance,	1565
pension, or benefit increased by five per cent, except that the	1566
twelve-month sum of such increases shall not exceed five per cent	1567
of the first five thousand dollars of the annual allowance,	1568
pension, or benefit.	1569

(B) Effective July 1, 1981, each person receiving or	1570
qualified to receive a benefit, pursuant to division (B) of	1571
section 3309.45 of the Revised Code, that was effective on and	1572
after June 14, 1951, through August 26, 1970, shall receive an	1573
increase in such benefit of five per cent.	1574

(C) The increases provided in divisions (A) and (B) of this	1575
section shall be applied to the benefit payable on and after July	1576
1, 1981.	1577

(D) The increase in the monthly allowance, pension, or	1578
benefit provided in divisions (A) and (B) of this section shall be	1579
included in the calculation of additional benefits to recipients	1580
under section 3309.374 of the Revised Code.	1581

(E) The benefits provided in divisions (A) and (B) of this	1582
section are a continuation of those first provided in Am. Sub.	1583
H.B. 204 as passed by the 113th general assembly.	1584

Sec. 3309.3711. Whenever the limits established by section	1585
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1586
U.S.C.A. 415, as amended, are raised, the school employees	1587
retirement board shall increase the amount of the pension,	1588
benefit, or allowance of any person whose pension, benefit, or	1589
allowance payable under section 3309.36, 3309.374, ~~3309.38,~~	1590
3309.381, 3309.40, or 3309.401 or former section 3309.38 of the	1591
Revised Code was limited by the application of section 415. The	1592
amount of the increased pension, benefit, or allowance shall not	1593
exceed the lesser of the amount the person would have received if	1594
the limits established by section 415 had not been applied or the	1595
amount the person is eligible to receive subject to the new limits	1596
established by section 415.	1597

Sec. 3309.39. (A) The school employees retirement system	1598
shall provide disability coverage to each member who has at least	1599
five years of total service credit.	1600

Not later than October 16, 1992, the school employees	1601
retirement board shall give each person who is a member on July	1602
29, 1992, the opportunity to elect disability coverage either	1603
under section 3309.40 of the Revised Code or under section	1604
3309.401 of the Revised Code. The board shall mail notice of the	1605
election, accompanied by an explanation of the coverage under each	1606
of the Revised Code sections and a form on which the election is	1607
to be made, to each member at the member's last known address. The	1608
board shall also provide the explanation and form to any member at	1609
the member's request.	1610

Regardless of whether the member actually receives notice of	1611
the right to make an election, a member who fails to file a valid	1612
election under this section shall be considered to have elected	1613
disability coverage under section 3309.40 of the Revised Code. To	1614
be valid, an election must be made on the form provided by the	1615
~~retirement~~ board, signed by the member, and filed with the board	1616
not later than one hundred eighty days after the date the notice	1617
was mailed, or, in the case of a form provided at the request of a	1618
member, a date specified by rule of the ~~retirement~~ board. Once	1619
made, an election is irrevocable, but if the member ceases to be a	1620
member of the ~~retirement~~ system, the election is void. If a person	1621
who makes an election under this section also makes an election	1622
under section 145.35 or 3307.62 of the Revised Code, the election	1623
made for the system that pays a disability benefit to that person	1624
shall govern the benefit.	1625

Disability coverage shall be provided under section 3309.401	1626
of the Revised Code for persons who become members after July 29,	1627
1992, and for members who elect under this division to be covered	1628
under section 3309.401 of the Revised Code.	1629

The ~~retirement~~ board may adopt rules governing elections made	1630
under this division.	1631

(B)(1) Application for a disability benefit may be made by a	1632
member, by a person acting in the member's behalf, or by the	1633
member's employer, ~~provided~~if the member ~~has~~meets all of the	1634
following conditions:	1635

(a) Has at least five years of total service credit ~~and has~~;

1636

(b) Has disability coverage under section 3309.40 or 3309.401	1637
of the Revised Code~~. The~~;	1638

(c) Is not receiving a disability benefit under this chapter	1639
or Chapter 145., 742., 3305., 3307., or 5505. of the Revised Code,	1640
or the Cincinnati retirement system;	1641

(d) Is not applying for the disability benefit based on a	1642
disabling condition that the system determines was caused by	1643
commission of either of the following:	1644

(i) A felony the member was convicted of, pled guilty to, or	1645
was found not guilty of by reason of insanity;	1646

(ii) An act for which the member was adjudicated a delinquent	1647
child, that if committed by an adult, would be a felony.	1648

(2) The application for a disability benefit shall be made on	1649
a form provided by the ~~retirement~~ board. The benefit payable to	1650
any member who is approved for a disability benefit shall become	1651
effective on the first day of the month next following the later	1652
of the following:	1653

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

1654

~~(2)~~(b) The date on which the ~~member~~member's most recent	1655
application for a disability benefit was ~~first incapacitated by~~	1656
~~the disabling condition~~filed.	1657

(C) Medical examination of a member who has applied for a	1658
disability benefit shall be conducted by a competent disinterested	1659
physician or physicians selected by the ~~retirement~~ board to	1660
determine whether the member is mentally or physically	1661
incapacitated for the performance of the member's last assigned	1662
primary duty as an employee by a disabling condition either	1663
permanent or presumed to be permanent for twelve continuous months	1664
following the filing of an application. Such disability must have	1665
occurred ~~since last becoming a member~~before termination of the	1666
member's contributing service and since last becoming a member or	1667
have increased since last becoming a member to such extent as to	1668
make the disability permanent or presumed to be permanent for	1669
twelve continuous months following the filing of an application.	1670

(D) Application for a disability benefit must be made within	1671
two years from the date the member's contributing service	1672
terminated, unless the ~~retirement~~ board determines that the	1673
member's medical records demonstrate conclusively that at the time	1674
the two-year period expired, the member was physically or mentally	1675
incapacitated for duty as an employee and unable to make	1676
application. Application may not be made by any person receiving a	1677
service retirement allowance or commuted service retirement	1678
allowance under section 3309.36~~, 3309.38,~~ or 3309.381 or former	1679
section 3309.38 of the Revised Code or any person who, pursuant to	1680
section 3309.42 of the Revised Code, has been paid the accumulated	1681
contributions standing to the credit of the person's individual	1682
account in the employees' savings fund.	1683

(E) If the physician or physicians determine that the member	1684
qualifies for a disability benefit, the ~~retirement~~ board concurs	1685
with the determination, and the member agrees to any recommended	1686
medical treatment and vocational rehabilitation as specified in	1687
~~division~~divisions (F) and (G) of this section, the member shall	1688
receive a disability benefit under section 3309.40 or 3309.401 of	1689
the Revised Code. The action of the board shall be final. ~~At the~~	1690
~~time the board decides it concurs with the determination of the~~	1691
~~physician or physicians, the board shall determine the date on~~	1692
~~which the member was first incapacitated by the disabling~~	1693
~~condition.~~	1694

(F) The ~~school employees retirement~~ board shall adopt rules	1695
requiring a disability benefit recipient, as a condition of	1696
continuing to receive a disability benefit, to agree in writing to	1697
obtain any medical treatment recommended by the board's physician	1698
and submit medical reports regarding the treatment. If the board	1699
determines that a disability benefit recipient is not obtaining	1700
the medical treatment or the board does not receive a required	1701
medical report, the disability benefit shall be suspended until	1702
the treatment is obtained, the report is received by the board, or	1703
the board's physician certifies that the treatment is no longer	1704
helpful or advisable. Should the recipient's failure to obtain	1705
treatment or submit a medical report continue for one year, the	1706
recipient's right to the disability benefit shall be terminated as	1707
of the effective date of the original suspension.	1708

(G)(1) A disability benefit recipient shall obtain any	1709
vocational rehabilitation recommended by the board's physician or	1710
other consultant and submit reports regarding the rehabilitation.	1711
If the board determines that a recipient is not obtaining the	1712
rehabilitation or the board does not receive a required report,	1713
the disability benefit shall be suspended until the rehabilitation	1714
is obtained, the report is received by the board, or the board's	1715
physician or consultant certifies that rehabilitation is no longer	1716
helpful or advisable. If the recipient's failure to obtain	1717
rehabilitation or submit a required report continues for one year,	1718
the recipient's right to the disability benefit shall be	1719
terminated as of the effective date of the original suspension.	1720

(2) The board shall adopt rules to implement this division.

1721

(H) In the event an employer files an application for a	1722
disability benefit as a result of a member having been separated	1723
from service because the member is considered to be mentally or	1724
physically incapacitated for the performance of the member's last	1725
assigned primary duty as an employee, and the physician or	1726
physicians selected by the board report to the board that the	1727
member is physically and mentally capable of performing service	1728
similar to that from which the member was separated, and the board	1729
concurs in such report, then the board shall so certify to the	1730
employer and the employer shall restore the member to the member's	1731
previous position and salary or to a similar position and salary.	1732

Sec. 3309.392. A recipient of a disability benefit granted	1733
under this chapter on or after the effective date of this section	1734
shall apply for social security disability insurance benefit	1735
payments under 42 U.S.C. 423 if the recipient meets the	1736
requirements of divisions (a)(1)(A), (B), and (C) of that section.	1737
The application shall be made not later than ninety days after the	1738
recipient is granted a disability benefit under this chapter	1739
unless the school employees retirement board determines from the	1740
member's medical records that the member is physically or mentally	1741
unable to make the application. The recipient shall file a copy of	1742
the completed application and a copy of the social security	1743
administration's acknowledgement of receipt of the application	1744
with the school employees retirement system. The system shall	1745
accept the copy and acknowledgement as evidence of the member's	1746
application.	1747

If a recipient fails without just cause to apply for social	1748
security disability insurance benefit payments or to file a copy	1749
of the application and acknowledgement of receipt with the system,	1750
the disability benefit under this chapter shall be suspended until	1751
application is made and a copy of the application and	1752
acknowledgement is filed with the system.	1753

The member shall file with the system a copy of the social	1754
security administration's final action on the member's application	1755
for social security disability insurance benefit payments.	1756

Sec. 3309.401. (A) A member with disability coverage under	1757
this section who is determined by the school employees retirement	1758
board under section 3309.39 of the Revised Code to qualify for a	1759
disability benefit shall receive a disability allowance under this	1760
section. The allowance shall be an annual amount equal to the	1761
greater of the following:	1762

(1) Forty-five per cent of the member's final average salary;

1763

(2) The member's total service credit multiplied by two and	1764
two-tenths per cent of the member's final average salary, not	1765
exceeding sixty per cent of the member's final average salary.	1766

(B) Sufficient reserves for payment of the disability	1767
allowance shall be transferred to the annuity and pension reserve	1768
fund from the employers' accumulation fund. The accumulated	1769
contributions of the member shall remain in the employees' savings	1770
fund. No part of the allowance paid under this section shall be	1771
charged against the member's accumulated contributions.	1772

(C) A disability allowance paid under this section shall	1773
terminate at the earliest of the following:	1774

(1) The effective date of service retirement under section	1775
3309.35,or 3309.36~~, or 3309.38~~ of the Revised Code;	1776

(2) The date the allowance is terminated under section	1777
3309.41 of the Revised Code;	1778

(3) The later of the last day of the month in which the	1779
recipient attains age sixty-five, or the last day of the month in	1780
which the benefit period ends as follows:	1781

	Attained Age at Effective Date				1782
	of Disability Allowance		Benefit Period		1783

60 or 61	60 months	1784
62 or 63	48 months	1785
64 or 65	36 months	1786
66, 67, or 68	24 months	1787
69 or older	12 months	1788

Sec. 3309.41. (A) Notwithstanding any contrary provisions in	1789
Chapter 124. or 3319. of the Revised Code:	1790

(1) A disability benefit recipient whose benefit effective	1791
date was before the effective date of this amendment shall retain	1792
membership status and shall be considered on leave of absence from	1793
employment during the first five years following the effective	1794
date of a disability benefit~~, notwithstanding any contrary~~	1795
~~provisions in Chapter 124. or 3319. of the Revised Code~~.	1796

(2) A disability benefit recipient whose benefit effective	1797
date is on or after the effective date of this amendment shall	1798
retain membership status and shall be considered on leave of	1799
absence from employment during the first three years following the	1800
effective date of a disability benefit, except that, if the school	1801
employees retirement board has recommended medical treatment or	1802
vocational rehabilitation and the member is receiving treatment or	1803
rehabilitation acceptable to a physician or consultant selected by	1804
the board, the board may permit the recipient to retain membership	1805
status and be considered on leave of absence from employment for	1806
up to five years following the effective date of a disability	1807
benefit.	1808

(B) The ~~school employees retirement~~ board shall require a	1809
disability benefit recipient to undergo an annual medical	1810
examination, except that the board may waive the medical	1811
examination if the board's physician or physicians certify that	1812
the recipient's disability is ongoing. Should any disability	1813
benefit recipient refuse to submit to a medical examination, the	1814
recipient's disability benefit shall be suspended until withdrawal	1815
of the refusal. Should the refusal continue for one year, all the	1816
recipient's rights in and to the disability benefit shall be	1817
terminated as of the effective date of the original suspension.	1818

(C) On completion of the examination by an examining	1819
physician or physicians selected by the board, the physician or	1820
physicians shall report and certify to the board whether the	1821
disability benefit recipient meets the applicable standard for	1822
termination of a disability benefit. If the recipient's benefit	1823
effective date is before the effective date of this amendment or	1824
the benefit effective date is after the effective date of this	1825
amendment and the recipient is considered on a leave of absence	1826
under division (A)(2) of this section, the standard for	1827
termination is that the recipient is no longer physically and	1828
mentally incapable of resuming the service from which the	1829
recipient was found disabled. If the ~~board~~recipient's benefit	1830
effective date is on or after the effective date of this amendment	1831
and the recipient is not considered on a leave of absence under	1832
division (A)(2) of this section, the standard is that the	1833
recipient is not physically or mentally incapable of performing	1834
the duties of a position that meets all of the following criteria:	1835

(1) Replaces not less than seventy-five per cent of the	1836
member's final average salary, adjusted each year by the actual	1837
average increase in the consumer price index prepared by the	1838
United States bureau of labor statistics (U.S. City Average for	1839
Urban Wage Earners and Clerical Workers: "All Items 1982-84=100");	1840

(2) Is reasonably to be found in the member's regional job	1841
market;	1842

(3) Is one that the member is qualified for by experience or	1843
education.	1844

If the board concurs in the report that the disability	1845
benefit recipient ~~is no longer incapable~~meets the applicable	1846
standard for termination of a disability benefit, the payment of	1847
the disability benefit shall be terminated not later than three	1848
months after the date of the board's concurrence or upon	1849
employment as an employee. If the leave of absence has not	1850
expired, the retirement board shall certify to the disability	1851
benefit recipient's last employer before being found disabled that	1852
the recipient is no longer physically and mentally incapable of	1853
resuming service that is the same or similar to that from which	1854
the recipient was found disabled. The employer shall restore the	1855
recipient to the recipient's previous position and salary or to a	1856
position and salary similar thereto not later than the first day	1857
of the first month following termination of the disability	1858
benefit, unless the recipient was dismissed or resigned in lieu of	1859
dismissal for dishonesty, misfeasance, malfeasance, or conviction	1860
of a felony.	1861

(D) Each disability benefit recipient shall file with the	1862
board an annual statement of earnings, current medical information	1863
on the recipient's condition, and any other information required	1864
in rules adopted by the board. The board may waive the requirement	1865
that a disability benefit recipient file an annual statement of	1866
earnings or current medical information on the recipient's	1867
condition if the board's physician or physicians certify that the	1868
recipient's disability is ongoing.	1869

The board shall annually examine the information submitted by	1870
the recipient. If a disability benefit recipient refuses to file	1871
the statement or information, the disability benefit shall be	1872
suspended until the statement and information are filed. If the	1873
refusal continues for one year, the recipient's right to the	1874
disability benefit shall be terminated as of the effective date of	1875
the original suspension.	1876

(E) If a disability benefit recipient is employed by an	1877
employer covered by this chapter, the recipient's disability	1878
benefit shall cease.	1879

(F) If disability retirement under section 3309.40 of the	1880
Revised Code is terminated for any reason, the annuity and pension	1881
reserves at that time in the annuity and pension reserve fund	1882
shall be transferred to the employees' savings fund and the	1883
employers' trust fund, respectively. If the total disability	1884
benefit paid is less than the amount of the accumulated	1885
contributions of the member transferred into the annuity and	1886
pension reserve fund at the time of the member's disability	1887
retirement, the difference shall be transferred from the annuity	1888
and pension reserve fund to another fund as may be required. In	1889
determining the amount of a member's account following the	1890
termination of disability retirement for any reason, the amount	1891
paid shall be charged against the member's refundable account.	1892

If a disability allowance paid under section 3309.401 of the	1893
Revised Code is terminated for any reason, the reserve on the	1894
allowance at that time in the annuity and pension reserve fund	1895
shall be transferred from that fund to the employers' trust fund.	1896

The board may terminate a disability benefit at the request	1897
of the recipient.	1898

(G) If a disability benefit is terminated and a former	1899
disability benefit recipient again becomes a contributor, other	1900
than as an other system retirant as defined in section 3309.341 of	1901
the Revised Code, to this system, the public employees retirement	1902
system, or the state teachers retirement system, and completes an	1903
additional two years of service credit after the termination of	1904
the disability benefit, the former disability benefit recipient	1905
shall be entitled to ~~full~~receive up to two years of service	1906
credit for the period as a disability benefit recipient and may	1907
purchase service for the remaining period of the disability	1908
benefit. Total service credit received and purchased under this	1909
section shall not exceed the period of the disability benefit.	1910

For each year of credit purchased, the member shall pay to	1911
the system for credit to the member's accumulated account the sum	1912
of the following amounts:	1913

(1) The employee contribution rate in effect at the time the	1914
disability benefit commenced multiplied by the member's annual	1915
disability benefit;	1916

(2) The employer contribution rate in effect at the time the	1917
disability benefit commenced multiplied by the member's annual	1918
disability benefit;	1919

(3) Compound interest at a rate established by the board from	1920
the date the member is eligible to purchase the credit to the date	1921
of payment.	1922

The member may choose to purchase only part of such credit in	1923
any one payment, subject to board rules.	1924

(H) If any employer employs any member who is receiving a	1925
disability benefit, the employer shall file notice of employment	1926
with the retirement board, designating the date of employment. In	1927
case the notice is not filed, the total amount of the benefit paid	1928
during the period of employment prior to notice shall be paid from	1929
amounts allocated under Chapter 3317. of the Revised Code prior to	1930
its distribution to the school district in which the disability	1931
benefit recipient was so employed.	1932

Sec. 3309.44. (A) As used in this section and in section	1933
3309.45 of the Revised Code:	1934

(1) "Child" means a biological or legally adopted child of a	1935
deceased member. If a court hearing for an interlocutory decree	1936
for adoption was held prior to the member's death, "child"	1937
includes the child who was the subject of the hearing	1938
notwithstanding the fact that the final decree of adoption,	1939
adjudging the surviving spouse as the adoptive parent, is made	1940
subsequent to the member's death.	1941

(2) "Parent" is a parent or legally adoptive parent of a	1942
deceased member.	1943

(3) "Dependent" means a beneficiary who receives one-half of	1944
the beneficiary's support from a member during the twelve months	1945
prior to the member's death.	1946

(4) "Surviving spouse" means an individual who establishes a	1947
valid marriage to a member at the time of the member's death by	1948
marriage certificate or pursuant to division ~~(E)~~(F) of this	1949
section.	1950

(5) "Survivor" means a surviving spouse, child, or parent.

1951

(B) Except as provided in division (C)(1) of section 3309.45	1952
of the Revised Code, should a member die before service or	1953
commuted service retirement, the member's accumulated	1954
contributions and any amounts owed and unpaid to a disability	1955
benefit recipient shall be paid to such beneficiaries as the	1956
member has designated in writing on a form provided by the school	1957
employees retirement board, signed by the member and filed with	1958
the board prior to death. The last designation of any beneficiary	1959
revokes all previous designations. The member's marriage, divorce,	1960
legal dissolution, legal separation, or withdrawal of account, or	1961
the birth of the member's child, or the member's adoption of a	1962
child, constitutes an automatic revocation of the member's last	1963
designation. If a deceased member was also a member of the public	1964
employees retirement system or the state teachers retirement	1965
system, the beneficiary last established among the systems shall	1966
be the sole beneficiary in all the systems.	1967

If the accumulated contributions of a deceased member are not	1968
claimed by a beneficiary, or by the estate of the deceased member,	1969
within ten years, they shall be transferred to the guarantee fund	1970
and thereafter paid to such beneficiary or to the member's estate	1971
upon application to the board. The board shall formulate and adopt	1972
rules governing all designations of beneficiaries.	1973

(C) Except as provided in division (C)(1) of section 3309.45	1974
of the Revised Code, if a member dies before service or commuted	1975
service retirement and is not survived by a designated	1976
beneficiary, ~~any beneficiaries~~the following shall qualify, in the	1977
following order of precedence, with all attendant rights and	1978
privileges, the member's:	1979

(1) Surviving spouse;

1980

(2) Children share and share alike;

1981

(3) A dependent parent who is age sixty-five or older, if	1982
that parent takes survivor benefits under division (B) of section	1983
3309.45 of the Revised Code;	1984

(4) Parents, share and share alike;

1985

(5) Estate.

1986

~~Any payment made to a beneficiary as determined by the school~~	1987
~~employees retirement board shall be a full discharge and release~~	1988
~~to the board from any future claims.~~	1989

If a person listed in divisions (C)(1) to (4) of this section	1990
is deceased or is not located within one hundred eighty days, the	1991
person ceases to qualify for any benefit and the person next in	1992
order of precedence shall qualify.	1993

(D) Any amount due any person, as an annuitant receiving a	1994
monthly service or commuted service retirement allowance or	1995
benefit, and unpaid to the annuitant at death, shall be paid to	1996
the beneficiary designated in writing on a form provided by the	1997
retirement board, signed by the annuitant and filed with the	1998
board. If no such designation has been filed, ~~or if the designated~~	1999
~~beneficiary is deceased or is not located within ninety days,~~ such	2000
amount shall be paid, except as otherwise provided in section	2001
3309.45 of the Revised Code, in the following order of precedence	2002
to the annuitant's:	2003

(1) Surviving spouse;

2004

(2) Children, share and share alike;

2005

(3) Parents, share and share alike;

2006

(4) Estate.

2007

If a person listed in divisions (D)(1) to (3) of this section	2008
is deceased or is not located within one hundred eighty days, the	2009
person ceases to qualify for any benefit and the person next in	2010
order of precedence shall qualify.	2011

For the purpose of this division, an "annuitant" is the last	2012
person who received a monthly allowance or benefit pursuant to the	2013
plan of payment selected by the retirant or designated by this	2014
chapter. ~~Such payment shall be a full discharge and release to the~~	2015
~~board from any future claim for such payment.~~	2016

(E) Any payment made under this section as determined by the	2017
board shall be a full discharge and release to the board from any	2018
future claim for payment.	2019

(F) If the validity of marriage cannot be established to the	2020
satisfaction of the retirement board for the purpose of disbursing	2021
any amount due under this section or section 3309.45 of the	2022
Revised Code, the retirement board may accept a decision rendered	2023
by a court having jurisdiction in the state in which the member	2024
was domiciled at the time of death that the relationship	2025
constituted a valid marriage at the time of death, or the "spouse"	2026
would have the same status as a widow or widower for purposes of	2027
sharing in the distribution of the member's intestate personal	2028
property.	2029

~~(F)~~(G) As used in this division, "recipient" means an	2030
individual who is receiving or may be eligible to receive an	2031
allowance or benefit under this chapter based on the individual's	2032
service to an employer.	2033

If the death of a member, a recipient, or any individual who	2034
would be eligible to receive an allowance or benefit under this	2035
chapter by virtue of the death of a member or recipient is caused	2036
by one of the following beneficiaries, no amount due under this	2037
chapter to the beneficiary shall be paid to the beneficiary in the	2038
absence of a court order to the contrary filed with the retirement	2039
board:	2040

(1) A beneficiary who is convicted of, pleads guilty to, or	2041
is found not guilty by reason of insanity of a violation of or	2042
complicity in the violation of either of the following:	2043

(a) Section 2903.01, 2903.02, or 2903.03 of the Revised Code;

2044

(b) An existing or former law of any other state, the United	2045
States, or a foreign nation that is substantially equivalent to	2046
section 2903.01, 2903.02, or 2903.03 of the Revised Code;	2047

(2) A beneficiary who is indicted for a violation of or	2048
complicity in the violation of the sections or laws described in	2049
division ~~(F)~~(G)(1)(a) or (b) of this section and is adjudicated	2050
incompetent to stand trial;	2051

(3) A beneficiary who is a juvenile found to be a delinquent	2052
child by reason of committing an act that, if committed by an	2053
adult, would be a violation of or complicity in the violation of	2054
the sections or laws described in division ~~(F)~~(G)(1)(a) or (b) of	2055
this section.	2056

Sec. 3309.45. Except as provided in division (C)(1) of this	2057
section, in lieu of accepting the payment of the accumulated	2058
account of a member who dies before service retirement, the	2059
beneficiary, as determined in section 3309.44 of the Revised Code,	2060
may elect to forfeit the accumulated account and to substitute	2061
certain other benefits either under division (A) or (B) of this	2062
section.	2063

(A)(1) If a deceased member was eligible for a service	2064
retirement allowance as provided in section 3309.36~~, 3309.38,~~ or	2065
3309.381 of the Revised Code, a surviving spouse or other sole	2066
dependent beneficiary may elect to receive a monthly benefit	2067
computed as the joint-survivor allowance designated as "plan D" in	2068
section 3309.46 of the Revised Code, which the member would have	2069
received had the member retired on the last day of the month of	2070
death and had the member at that time selected such joint-survivor	2071
plan. Payment shall begin with the month subsequent to the	2072
member's death.	2073

(2) Beginning on a date selected by the school employees	2074
retirement board, which shall be not later than July 1, 2004, a	2075
surviving spouse or other sole dependent beneficiary may elect, in	2076
lieu of a monthly payment under division (A)(1) of this section, a	2077
plan of payment consisting of both of the following:	2078

(a) A lump sum in an amount the surviving spouse or other	2079
sole dependent beneficiary designates that constitutes a portion	2080
of the allowance that would be payable under division (A)(1) of	2081
this section;	2082

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

2083

The total amount paid as a lump sum and a monthly benefit	2084
shall be the actuarial equivalent of the amount that would have	2085
been paid had the lump sum not been selected.	2086

The lump sum amount designated by the surviving spouse or	2087
other sole dependent beneficiary under division (A)(2)(a) of this	2088
section shall be not less than six times and not more than	2089
thirty-six times the monthly amount that would be payable to the	2090
surviving spouse or other sole dependent beneficiary under	2091
division (A)(1) of this section and shall not result in a monthly	2092
benefit that is less than fifty per cent of that monthly amount.	2093

(B) If the deceased member had completed at least one and	2094
one-half years of credit for Ohio service, with at least	2095
one-quarter year of Ohio contributing service credit within the	2096
two and one-half years prior to the date of death, or was	2097
receiving at the time of death a disability benefit as provided in	2098
section 3309.40 or 3309.401 of the Revised Code, qualified	2099
survivors who elect to receive monthly benefits shall receive the	2100
greater of the benefits provided in division (B)(1)(a) or (b) as	2101
allocated in accordance with division (B)(5) of this section.	2102

(1)(a) Number		Or	2103
of Qualified		Monthly	2104
survivors	Annual Benefit as a Per	Benefit	2105
affecting	Cent of Decedent's Final	shall not be	2106
the benefit	Average Salary	less than	2107

1	25%	$96	2108
2	40	186	2109
3	50	236	2110
4	55	236	2111
5 or more	60	236	2112

(b) Years of Service

Annual Benefit as a Per Cent of Member's Final Average Salary

2113

20	29%	2114
21	33	2115
22	37	2116
23	41	2117
24	45	2118
25	48	2119
26	51	2120
27	54	2121
28	57	2122
29 or more	60	2123

(2) Benefits shall begin as qualified survivors meet	2124
eligibility requirements as follows:	2125

(a) A qualified spouse is the surviving spouse of the	2126
deceased member who is age sixty-two, or regardless of age if the	2127
deceased member had ten or more years of Ohio service credit, or	2128
regardless of age if caring for a surviving child, or regardless	2129
of age if adjudged physically or mentally incompetent.	2130

(b) A qualified child whose benefit began before the	2131
effective date of this amendment is any child of the deceased	2132
member who has never been married and to whom one of the following	2133
applies:	2134

(i) Is under age eighteen, or under age twenty-two if the	2135
child is attending an institution of learning or training pursuant	2136
to a program designed to complete in each school year the	2137
equivalent of at least two-thirds of the full-time curriculum	2138
requirements of such institution and as further determined by	2139
board policy;	2140

(ii) Regardless of age, is adjudged physically or mentally	2141
incompetent if the incompetence existed prior to the member's	2142
death and prior to the child attaining age eighteen, or age	2143
twenty-two if attending an institution described in division	2144
(B)(2)(b)(i) of this section.	2145

(c) A qualified child whose benefit begins on or after the	2146
effective date of this amendment is any child of the deceased	2147
member who has never been married and to whom one of the following	2148
applies:	2149

(i) Is under age nineteen;

2150

(ii) Regardless of age, is adjudged physically or mentally	2151
incompetent if the incompetence existed prior to the member's	2152
death and prior to the child attaining age nineteen.	2153

(d) A qualified parent is a dependent parent aged sixty-five	2154
or older.	2155

(3) "Physically or mentally incompetent" as used in this	2156
section may be determined by a court of jurisdiction, or by a	2157
physician appointed by the retirement board. Incapability of	2158
earning a living because of a physically or mentally disabling	2159
condition shall meet the qualifications of this division.	2160

(4) Benefits to a qualified survivor shall terminate upon a	2161
first marriage, abandonment, adoption, or during active military	2162
service. Benefits to a deceased member's surviving spouse that	2163
were terminated under a former version of this section that	2164
required termination due to remarriage and were not resumed prior	2165
to September 16, 1998, shall resume on the first day of the month	2166
immediately following receipt by the board of an application on a	2167
form provided by the board.	2168

Upon the death of any subsequent spouse who was a member of	2169
the public employees retirement system, state teachers retirement	2170
system, or school employees retirement system, the surviving	2171
spouse of such member may elect to continue receiving benefits	2172
under this division, or to receive survivor's benefits, based upon	2173
the subsequent spouse's membership in one or more of the systems,	2174
for which such surviving spouse is eligible under this section or	2175
section 145.45 or 3307.66 of the Revised Code. If the surviving	2176
spouse elects to continue receiving benefits under this division,	2177
such election shall not preclude the payment of benefits under	2178
this division to any other qualified survivor.	2179

Benefits shall begin or resume on the first day of the month	2180
following the attainment of eligibility and shall terminate on the	2181
first day of the month following loss of eligibility.	2182

(5)(a) If a benefit is payable under division (B)(1)(a) of	2183
this section, benefits to a qualified spouse shall be paid in the	2184
amount determined for the first qualifying survivor in division	2185
(B)(1)(a) of this section, but shall not be less than one hundred	2186
six dollars per month if the deceased member had ten or more years	2187
of Ohio service credit. All other qualifying survivors shall share	2188
equally in the benefit or remaining portion thereof.	2189

(b) All qualifying survivors shall share equally in a benefit	2190
payable under division (B)(1)(b) of this section, except that if	2191
there is a surviving spouse, the surviving spouse shall receive no	2192
less than the greater of the amount determined for the first	2193
qualifying survivor in division (B)(1)(a) of this section or one	2194
hundred six dollars per month.	2195

(6) The beneficiary of a member who is also a member of the	2196
public employees retirement system, or of the state teachers	2197
retirement system, must forfeit the member's accumulated	2198
contributions in those systems, if the beneficiary takes a	2199
survivor benefit. Such benefit shall be exclusively governed by	2200
section 3309.35 of the Revised Code.	2201

(C)(1) Regardless of whether the member is survived by a	2202
spouse or designated beneficiary, if the school employees	2203
retirement system receives notice that a deceased member described	2204
in division (A) or (B) of this section has one or more qualified	2205
children, all persons who are qualified survivors under division	2206
(B) of this section shall receive monthly benefits as provided in	2207
division (B) of this section.	2208

If, after determining the monthly benefits to be paid under	2209
division (B) of this section, the system receives notice that	2210
there is a qualified survivor who was not considered when the	2211
determination was made, the system shall, notwithstanding section	2212
3309.661 of the Revised Code, recalculate the monthly benefits	2213
with that qualified survivor included, even if the benefits to	2214
qualified survivors already receiving benefits are reduced as a	2215
result. The benefits shall be calculated as if the qualified	2216
survivor who is the subject of the notice became eligible on the	2217
date the notice was received and shall be paid to qualified	2218
survivors effective on the first day of the first month following	2219
the system's receipt of the notice.	2220

If the retirement system did not receive notice that a	2221
deceased member has one or more qualified children prior to making	2222
payment under section 3309.44 of the Revised Code to a beneficiary	2223
as determined by the retirement system, the payment is a full	2224
discharge and release of the system from any future claims under	2225
this section or section 3309.44 of the Revised Code.	2226

(2) If benefits under division (C)(1) of this section to all	2227
persons, or to all persons other than a surviving spouse or other	2228
sole beneficiary, terminate, there are no children under the age	2229
of twenty-two years, and the surviving spouse or beneficiary	2230
qualifies for benefits under division (A) of this section, the	2231
surviving spouse or beneficiary may elect to receive benefits	2232
under division (A) of this section. Benefits shall be effective on	2233
the first day of the month following receipt by the board of an	2234
application for benefits under division (A) of this section.	2235

(D) The final average salary used in the calculation of a	2236
benefit payable pursuant to division (A) or (B) of this section to	2237
a survivor or beneficiary of a disability benefit recipient shall	2238
be adjusted for each year between the disability benefit's	2239
effective date and the recipient's date of death by the lesser of	2240
three per cent or the actual average percentage increase in the	2241
consumer price index prepared by the United States bureau of labor	2242
statistics (U.S. City Average for Urban Wage Earners and Clerical	2243
Workers: "All Items 1982-84=100").	2244

(E) If the survivor benefits due and paid under this section	2245
are in a total amount less than the member's accumulated account	2246
that was transferred from the employees' savings fund, the state	2247
teachers retirement fund, and the public employees retirement fund	2248
to the survivors' benefit fund, then the difference between the	2249
total amount of the benefits paid shall be paid to the beneficiary	2250
under section 3309.44 of the Revised Code.	2251

Sec. 3309.46. (A) The retirement allowance calculated under	2252
section 3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code shall be	2253
paid as provided in this section. If the member is eligible to	2254
elect a plan of payment under this section, the election shall be	2255
made on the application for retirement. A plan of payment elected	2256
under this section shall be effective only if it is certified by	2257
the actuary engaged by the school employees retirement board to be	2258
the actuarial equivalent of the member's retirement allowance and	2259
is approved by the retirement board.	2260

(B)(1)(a) Except as provided in divisions (B)(1)(b) and (c)	2261
of this section, a member who retires under section 3309.36,	2262
~~3309.38,~~ or 3309.381 of the Revised Code shall receive a	2263
retirement allowance under "plan A," which shall consist of the	2264
actuarial equivalent of the member's retirement allowance	2265
determined under section 3309.36~~, 3309.38,~~ or 3309.381 of the	2266
Revised Code in a lesser amount payable for life and one-half of	2267
such allowance continuing after death to the member's surviving	2268
spouse for the life of the spouse.	2269

(b) A member may receive a retirement allowance under a plan	2270
of payment other than "plan A" if either of the following is the	2271
case:	2272

(i) The member is not married or either the member's spouse	2273
consents in writing to the member's election to a plan of payment	2274
other than "plan A" or the board waives the requirement that the	2275
spouse consent;	2276

(ii) A plan of payment providing for payment in a specified	2277
amount continuing after the member's death to a former spouse is	2278
required by a court order issued prior to the effective date of	2279
the member's retirement under section 3105.171 or 3105.65 of the	2280
Revised Code or the laws of another state regarding division of	2281
marital property.	2282

(c) If a member is subject to division (B)(1)(b)(ii) of this	2283
section and the board has received a copy of the order described	2284
in that division, the board shall accept the member's election of	2285
a plan of payment under this section only if the member complies	2286
with both of the following:	2287

(i) The member elects a plan of payment that is in accordance	2288
with the order described in division (B)(1)(b)(ii) of this	2289
section.	2290

(ii) If the member is married, the member elects "plan F" and	2291
designates the member's current spouse as a beneficiary under that	2292
plan unless that spouse consents in writing to not being	2293
designated a beneficiary under any plan of payment or the board	2294
waives the requirement that the current spouse consent.	2295

(2) An application for retirement shall include an	2296
explanation of all of the following:	2297

(a) That, if the member is married, unless the spouse	2298
consents to another plan of payment or there is a court order	2299
dividing marital property issued under section 3105.171 or 3105.65	2300
of the Revised Code or the laws of another state regarding the	2301
division of marital property that provides for payment in a	2302
specified amount, the member's retirement allowance will be paid	2303
under "plan A," which consists of the actuarial equivalent of the	2304
member's retirement allowance in a lesser amount payable for life	2305
and one-half of the allowance continuing after death to the	2306
surviving spouse for the life of the spouse;	2307

(b) A description of the alternative plans of payment,	2308
including all plans described in divisions (B)(3) and (4) of this	2309
section, available with the consent of the spouse;	2310

(c) That the spouse may consent to another plan of payment	2311
and the procedure for giving consent;	2312

(d) That consent is irrevocable once notice of consent is	2313
filed with the board.	2314

Consent shall be valid only if it is in writing, signed by	2315
the spouse, and witnessed by an employee of the school employees	2316
retirement system or a notary public. The board may waive the	2317
requirement of consent if the spouse is incapacitated or cannot be	2318
located or for any other reason specified by the board. Consent or	2319
waiver is effective only with regard to the spouse who is the	2320
subject of the consent or waiver.	2321

(3)~~(a)~~ A member eligible to elect to receive a retirement	2322
allowance under a plan of payment other than "plan A" shall	2323
receive the retirement allowance under the plan described in	2324
division (B)(4) of this section or one of the following plans:	2325

(a) "Plan B," which shall consist of an allowance determined	2326
under section 3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code;	2327

(b) "Plan C," which shall consist of the actuarial equivalent	2328
of the member's retirement allowance determined under section	2329
3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code in a lesser	2330
amount payable for life and one-half or some other portion of the	2331
allowance continuing after death to the member's sole surviving	2332
beneficiary designated at the time of the member's retirement,	2333
provided that the amount payable to the beneficiary does not	2334
exceed the amount payable to the member;	2335

(c) "Plan D," which shall consist of the actuarial equivalent	2336
of the member's retirement allowance determined under section	2337
3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code in a lesser	2338
amount payable for life and continuing after death to a surviving	2339
designated beneficiary designated at the time of the member's	2340
retirement;	2341

(d) "Plan E," which shall consist of the actuarial equivalent	2342
of the member's retirement allowance determined under section	2343
3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code in a lesser	2344
amount payable for a certain period from the member's retirement	2345
date as elected by the member and approved by the retirement	2346
board, and on the member's death before the expiration of that	2347
certain period, the member's lesser retirement allowance continued	2348
for the remainder of that period to, and in such order, the	2349
beneficiaries as the member has nominated by written designation	2350
and filed with the retirement board.	2351

Monthly benefits shall not be paid to joint beneficiaries,	2352
but they may receive the present value of any remaining payments	2353
in a lump sum settlement. If all beneficiaries die before the	2354
expiration of the certain period, the present value of all such	2355
payments yet remaining in such period shall be paid to the estate	2356
of the beneficiary last receiving.	2357

(e) "Plan F," which shall consist of the actuarial equivalent	2358
of the member's retirement allowance determined under section	2359
3309.36~~, 3309.38,~~ or 3309.381 of the Revised Code in a lesser	2360
amount payable to the member for life and some portion of the	2361
lesser amount continuing after death to two, three, or four	2362
surviving beneficiaries designated at the time of the member's	2363
retirement. The portion of the lesser amount that continues after	2364
the member's death shall be allocated among the beneficiaries at	2365
the time of the member's retirement. If the member elects this	2366
plan as required by a court order issued under section 3105.171 or	2367
3105.65 of the Revised Code or the laws of another state regarding	2368
the division of marital property and compliance with the court	2369
order requires the allocation of a portion less than ten per cent	2370
to any person, the member shall allocate a portion less than ten	2371
per cent to that beneficiary in accordance with that order. In all	2372
other circumstances, no portion allocated under this plan of	2373
payment shall be less than ten per cent. The total of the portions	2374
allocated shall not exceed one hundred per cent of the member's	2375
lesser allowance.	2376

(4)(a) Beginning on a date selected by the board, which shall	2377
be not later than July 1, 2004, a member may elect, in lieu of a	2378
plan of payment under division (B)(1) or (3) of this section, a	2379
plan consisting of both a lump sum in an amount the member	2380
designates that constitutes a portion of the retirement allowance	2381
payable under a plan described in division (B)(1) or (3) of this	2382
section and the remainder of the allowance payable under that plan	2383
in monthly payments.	2384

The total amount paid as a lump sum and a monthly benefit	2385
shall be the actuarial equivalent of the amount that would have	2386
been paid had the lump sum not been selected.	2387

(b) The lump sum amount designated by the member shall be not	2388
less than six times and not more than thirty-six times the monthly	2389
amount that would be payable to the member under the plan of	2390
payment elected under this section had the lump sum not been	2391
elected and shall not result in a monthly benefit that is less	2392
than fifty per cent of that amount.	2393

(5) An election under division (B)(3) or (4) of this section	2394
shall be made at the time the member makes application for	2395
retirement.	2396

(6) A member eligible to elect to receive a retirement	2397
allowance under a plan of payment other than "plan A" because the	2398
member is unmarried who fails to make an election on retirement	2399
shall receive a retirement allowance under "plan B."	2400

(C) Until the first payment of any retirement allowance is	2401
made, as provided in sections 3309.36~~, 3309.38,~~ or 3309.381 of the	2402
Revised Code, a member may change the member's election of a	2403
payment plan if the election is made in accordance with and is	2404
consistent with division (B) of this section.	2405

(D) If the retirement allowances due and paid under the above	2406
provisions of this section are in a total amount less than (1) the	2407
accumulated contributions, (2) the deposits for additional credit	2408
as provided by section 3309.31 of the Revised Code, (3) the	2409
deposits for additional annuities as provided by section 3309.47	2410
of the Revised Code, (4) the deposits for repurchase of service	2411
credit as provided by section 3309.26 of the Revised Code, (5) the	2412
accumulated contributions provided by section 3309.65 of the	2413
Revised Code, (6) the deposits for purchase of military service	2414
credit provided by section 3309.021 or 3309.022 of the Revised	2415
Code, and (7) the deposits for the purchase of service credit	2416
provided by section 3309.73 of the Revised Code, standing to the	2417
credit of the member at the time of retirement, then the	2418
difference between the total amount of the allowances paid and the	2419
accumulated contributions and other deposits shall be paid to the	2420
beneficiary provided under division (D) of section 3309.44 of the	2421
Revised Code.	2422

(E)(1) The death of a spouse or any other designated	2423
beneficiary following the member's retirement shall cancel the	2424
portion of the plan of payment providing continuing lifetime	2425
benefits to the deceased spouse or deceased designated	2426
beneficiary. The retirant shall receive the actuarial equivalent	2427
of the retirant's single lifetime retirement allowance as	2428
determined by the board based on the number of remaining	2429
beneficiaries, with no change in the amount payable to any	2430
remaining beneficiary.	2431

(2) On divorce, annulment, or marriage dissolution, a	2432
retirant receiving a retirement allowance under a plan of payment	2433
that provides for continuation of all or part of the allowance	2434
after death for the lifetime of the retirant's surviving spouse	2435
may elect to cancel the portion of the plan providing continuing	2436
lifetime benefits to that spouse. The retirant shall receive the	2437
actuarial equivalent of the retirant's single lifetime retirement	2438
allowance as determined by the retirement board based on the	2439
number of remaining beneficiaries, with no change in the amount	2440
payable to any remaining beneficiary. In the case of a member who	2441
retires on or after July 24, 1990, the election may be made only	2442
with the written consent of the spouse or pursuant to an order of	2443
the court with jurisdiction over the termination of the marriage.	2444
The election shall be made on a form provided by the board and	2445
shall be effective the month following its receipt by the board.	2446

(3)(a) Following marriage or remarriage, both of the	2447
following apply:	2448

(i) A retirant who is receiving a benefit pursuant to "plan	2449
B" may elect a new plan of payment under division (B)(1), (3)(b),	2450
or (3)(c) of this section based on the actuarial equivalent of the	2451
retirant's single lifetime retirement allowance as determined by	2452
the board.	2453

(ii) A retirant who is receiving a benefit pursuant to a plan	2454
of payment providing for payment to a former spouse pursuant to a	2455
court order described in division (B)(1)(b)(ii) of this section	2456
may elect a new plan of payment under division (B)(3)(e) of this	2457
section based on the actuarial equivalent of the retirant's single	2458
lifetime retirement allowance as determined by the board if the	2459
new plan of payment elected does not reduce the payment to the	2460
former spouse.	2461

(b) If the marriage or remarriage occurs on or after ~~the~~	2462
~~effective date of this amendment~~June 6, 2005, the election must	2463
be made not later than one year after the date of the marriage or	2464
remarriage.	2465

The plan elected under division (E)(3) of this section shall	2466
become effective on the date of receipt by the board of an	2467
application on a form approved by the board, but any change in the	2468
amount of the retirement allowance shall commence on the first day	2469
of the month following the effective date of the plan.	2470

Sec. 3309.47. Each school employees retirement system	2471
contributor shall contribute eight per cent of the contributor's	2472
compensation to the employees' savings fund, except that the	2473
school employees retirement board may raise the contribution rate	2474
to a rate not greater than ten per cent of compensation.	2475

The contributions by the direction of the school employees	2476
retirement board shall be deducted by the employer from the	2477
compensation of each contributor on each payroll of such	2478
contributor for each payroll period and shall be an amount equal	2479
to the required per cent of such contributor's compensation. On a	2480
finding by the board that an employer has failed or refused to	2481
deduct contributions for any employee during any year and to	2482
transmit such amounts to the retirement system, the retirement	2483
board may make a determination of the amount of the delinquent	2484
contributions, including interest at a rate set by the retirement	2485
board, from the end of each year, and certify to the employer the	2486
amounts for collection. If the amount is not paid by the employer,	2487
it may be certified for collection in the same manner as payments	2488
due the employers' trust fund. Any amounts so collected shall be	2489
held in trust pending receipt of a report of contributions for the	2490
employee for the period involved as provided by law and,	2491
thereafter, the amount in trust shall be transferred to the	2492
employee's savings fund to the credit of the employee. Any amount	2493
remaining after the transfer to the employees' savings fund shall	2494
be transferred to the employers' trust fund as a credit of the	2495
employer.	2496

~~Any contributor under contract who, because of illness,~~	2497
~~accident, or other reason approved by the employer, is prevented~~	2498
~~from making the contributor's contribution to the system for any~~	2499
~~payroll period, may, upon returning to contributing service, have~~	2500
~~such deductions made from other payrolls during the year, or may~~	2501
~~pay such amount to the employer and the employer shall transmit~~	2502
~~such deductions to the system. The deductions shall be made~~	2503
~~notwithstanding that the minimum compensation for any contributor~~	2504
~~shall be reduced thereby. Every contributor shall be deemed to~~	2505
~~consent and agree to the contributions made and provided for in~~	2506
~~this section and shall receipt in full for the contributor's~~	2507
~~salary or compensation, and payment, less the contributions, is a~~	2508
~~full and complete discharge and acquittance of all claims and~~	2509
~~demands whatsoever for the services rendered by the person during~~	2510
~~the period covered by the payment.~~	2511

~~Each contributor shall pay with the first payment to the~~	2512
~~employees' savings fund each year a sum to be determined by the~~	2513
~~board, as provided by law, which amount shall be credited to the~~	2514
~~expense fund. The payments for the expense fund shall be made to~~	2515
~~the board in the same way as payments to the employees' savings~~	2516
~~fund are made.~~	2517

Additional deposits may be made to a member's account. At	2518
retirement, the amount deposited with interest may be used to	2519
provide additional annuity income. The additional deposits may be	2520
refunded to the member before retirement, and shall be refunded if	2521
the member withdraws the member's refundable amount. The deposits	2522
may be refunded to the beneficiary or estate if the member dies	2523
before retirement, and the board shall determine whether regular	2524
interest shall be credited to deposits thus refunded.	2525

Sec. 3309.474. (A) As used in this section, "state	2526
retirement system" means the public employees retirement system,	2527
Ohio police and fire pension fund, state teachers retirement	2528
system, school employees retirement system, or state highway	2529
patrol retirement system.	2530

(B) A state retirement system member who while a member of	2531
the school employees retirement system was out of service due to a	2532
leave of absence approved by the member's employer may purchase	2533
from the school employees retirement system service credit for any	2534
period during the leave for which contributions were not made	2535
under section 3309.47 of the Revised Code.	2536

For purposes of this section, a period of leave commences on	2537
the first day for which employee and employer contributions were	2538
not made to the system and ends on the earlier of the termination	2539
of the leave or the member's return to contributing service.	2540

(C)(1) For each year of service purchased, the member shall	2541
pay to the school employees retirement system for credit to the	2542
member's accumulated account with that system an amount equal to	2543
the sum of the following:	2544

(a) An amount determined by multiplying the compensation the	2545
member would have received during the leave by the employee	2546
contribution rate in effect at that time;	2547

(b) An amount determined by multiplying the compensation the	2548
member would have received during the leave by the employer	2549
contribution rate in effect at that time;	2550

(c) Compound interest at a rate determined by the school	2551
employees retirement board from the first day of the year	2552
following the date the leave commenced to the date of payment.	2553

(2) If the employee or employer contribution rate changed	2554
during the leave, contributions for each month of the leave shall	2555
be made at the rate in effect for that month.	2556

(D) Service credit purchased under this section for any	2557
period of leave shall not exceed two years. Credit may be	2558
purchased for more than one period of leave, but the total number	2559
of years purchased shall not exceed the lesser of five years or	2560
the member's total accumulated number of years of service as a	2561
contributor to the school employees retirement system. The member	2562
may choose to purchase only part of such credit in any one	2563
payment, subject to board rules.	2564

(E) The board may adopt rules under section 3309.04 of the	2565
Revised Code to implement this section.	2566

Sec. 3309.50. (A)(1) Upon the death of a retirant or	2567
disability benefit recipient, who at the time of death is	2568
receiving a service retirement allowance or disability benefit	2569
from the school employees retirement system, a lump-sum payment of	2570
one thousand dollars shall be paid ~~to any designated or qualified~~	2571
~~beneficiary under division (D) of section 3309.44 of the Revised~~	2572
~~Code, or, if no such designation has been filed or if the~~	2573
~~designated beneficiary is deceased or is not located within ninety~~	2574
~~days, the school employees retirement board may approve payment to~~	2575
~~either the person responsible for the burial expenses or to the~~	2576
~~decedent's estate following the completion of an application on a~~	2577
~~form approved by the board~~, following completion of an application	2578
on a form approved by the school employees retirement board, in	2579
the following order of precedence to:	2580

(a) The retirant or recipient's designated beneficiary;

2581

(b) The retirant or recipient's surviving spouse;

2582

(c) The retirant or recipient's children, share and share	2583
alike;	2584

(d) The retirant or recipient's parents, share and share	2585
alike;	2586

(e) The person responsible for the retirant or recipient's	2587
burial expenses;	2588

(f) The retirant or recipient's estate.

2589

(2) If a person listed in division (A)(1) of this section is	2590
deceased or is not located within one hundred eighty days, the	2591
person ceases to qualify for the payment. The payment shall be	2592
made to the person next in order of precedence.	2593

(B) A benefit paid under this section shall be treated as	2594
life insurance for purposes of this chapter and shall be funded	2595
solely from contributions made under section 3309.49 of the	2596
Revised Code and any earnings attributable to those contributions.	2597

Sec. 3309.51. (A) Each employer shall pay ~~annually~~ into the	2598
employers' trust fund, in ~~such~~ monthly or less frequent	2599
installments as the school employees retirement board requires, an	2600
amount certified by the school employees retirement board, which	2601
shall be as required by Chapter 3309. of the Revised Code.	2602

Payments by school district boards of education to the	2603
employers' trust fund of the school employees retirement system	2604
may be made from the amounts allocated under Chapter 3317. of the	2605
Revised Code prior to their distribution to the individual school	2606
districts. The amount due from each school district may be	2607
certified by the secretary of the system to the superintendent of	2608
public instruction monthly, or at such times as is determined by	2609
the school employees retirement board.	2610

Payments by governing authorities of community schools to the	2611
employers' trust fund of the school employees retirement system	2612
shall be made from the amounts allocated under section 3314.08 of	2613
the Revised Code prior to their distribution to the individual	2614
community schools. The amount due from each community school shall	2615
be certified by the secretary of the system to the superintendent	2616
of public instruction monthly, or at such times as determined by	2617
the school employees retirement board.	2618

Payments by a science, technology, engineering, and	2619
mathematics school to the employers' trust fund of the school	2620
employees retirement system shall be made from the amounts	2621
allocated under section 3326.33 of the Revised Code prior to their	2622
distribution to the school. The amount due from a science,	2623
technology, engineering, and mathematics school shall be certified	2624
by the secretary of the school employees retirement system to the	2625
superintendent of public instruction monthly, or at such times as	2626
determined by the school employees retirement board.	2627

(B) The superintendent shall deduct from the amount allocated	2628
to each community school under section 3314.08 of the Revised	2629
Code, to each school district under Chapter 3317. of the Revised	2630
Code, or to each science, technology, engineering, and mathematics	2631
school under section 3326.33 of the Revised Code the entire	2632
amounts due to the school employees retirement system from such	2633
school or school district upon the certification to the	2634
superintendent by the secretary thereof.	2635

(C) Where an employer fails or has failed or refuses to make	2636
payments to the employers' trust fund, as provided for under	2637
Chapter 3309. of the Revised Code, or fails to pay any penalty	2638
imposed under section 3309.571 of the Revised Code the secretary	2639
of the school employees retirement system may certify to the state	2640
superintendent of public instruction, monthly or at such times as	2641
is determined by the school employees retirement board, the amount	2642
due from such employer, and the superintendent shall deduct from	2643
the amount allocated to the employer under section 3314.08 or	2644
3326.33 or Chapter 3317. of the Revised Code, as applicable, the	2645
entire amounts due to the system from the employer upon the	2646
certification to the superintendent by the secretary of the school	2647
employees retirement system.	2648

(D) The superintendent shall certify to the director of	2649
budget and management the amounts thus due the system for payment.	2650

Sec. 3309.571. The school employees retirement system shall	2651
impose the following penalties, which may be collected in the same	2652
manner as described in division (B) of section 3309.51 of the	2653
Revised Code:	2654

(A) For a failure to transmit contributions withheld from	2655
employees not later than the date specified under rules adopted by	2656
the school employees retirement board, one hundred dollars per day	2657
for each day the employer fails to transmit the contributions;	2658

(B) For a failure to transmit any amount due the employer's	2659
trust fund not later than the date specified under rules adopted	2660
by the board, one hundred dollars per day for each day the	2661
employer fails to transmit the amounts;	2662

(C) Except for a statement required by section 3309.28 of the	2663
Revised Code, for a failure to submit, complete, or correct any	2664
payroll information or other report required under this chapter	2665
not later than the date specified under rules adopted by the	2666
board, one hundred dollars per day for each day the employer fails	2667
to submit, complete, or correct the information or report, except	2668
that the penalty shall not exceed one thousand five hundred	2669
dollars;	2670

(D) For a failure to submit a record in the form of a	2671
statement required by section 3309.28 of the Revised Code, fifty	2672
dollars per record for each month the record is not filed, except	2673
that the penalty shall not exceed three hundred dollars.	2674

Sec. 3309.69. (A) ~~As used in this section, "ineligible~~	2675
~~individual" means all of the following:~~	2676

~~(1) A former member receiving benefits pursuant to section~~	2677
~~3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised~~	2678
~~Code for whom eligibility is established more than five years~~	2679
~~after June 13, 1981, and who, at the time of establishing~~	2680
~~eligibility, has accrued less than ten years of service credit,~~	2681
~~exclusive of credit obtained after January 29, 1981, pursuant to~~	2682
~~sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised~~	2683
~~Code;~~	2684

~~(2) The spouse of the former member;~~

2685

~~(3) The beneficiary of the former member receiving benefits~~	2686
~~pursuant to section 3309.46 of the Revised Code.~~	2687

~~(B)~~ The school employees retirement board may ~~enter~~establish	2688
a program to provide medical, hospital, surgical, prescription, or	2689
other health care coverage, benefits, reimbursement, or any	2690
combination thereof, to eligible individuals or dependents.	2691

Any program established under this section shall be designed	2692
and administered by the board. In establishing a program, the	2693
board may do any of the following:	2694

(1) Enter into an agreement with ~~insurance companies, health~~	2695
~~insuring corporations,~~persons or government agencies authorized	2696
to do business in the state for issuance of a policy or contract	2697
of health, medical, hospital, orprescription, surgical, or other	2698
health care benefits, or any combination thereof~~, for those~~	2699
~~individuals receiving service retirement or a disability or~~	2700
~~survivor benefit subscribing to the plan and their eligible~~	2701
~~dependents.~~	2702

~~If all or any portion of the policy or contract premium is to~~	2703
~~be paid by any individual receiving service retirement or a~~	2704
~~disability or survivor benefit, the person shall, by written~~	2705
~~authorization, instruct the board to deduct the premiums agreed to~~	2706
~~be paid by the individual to the companies, corporations, or~~	2707
~~agencies.~~	2708

~~The board may contract for coverage on the basis of part or~~	2709
~~all of the cost of the coverage to be paid from appropriate funds~~	2710
~~of the school employees retirement system. The cost paid from the~~	2711
~~funds of the system shall be included in the employer's~~	2712
~~contribution rate provided by sections 3309.49 and 3309.491 of the~~	2713
~~Revised Code. The board shall not pay or reimburse the cost for~~	2714
~~health care under this section or section 3309.375 of the Revised~~	2715
~~Code for any ineligible individual.~~	2716

~~The board may provide~~;

2717

(2) Provide for self-insurance of risk or level of risk as	2718
~~set forth in the contract with the companies, corporations, or~~	2719
~~agencies,~~ and ~~may~~ provide through the self-insurance method	2720
specific benefits as authorized by the rules of the board.;	2721

(3) Provide reimbursements or subsidies to eligible	2722
participants;	2723

(4) Make disbursements;

2724

(5) Determine levels of coverage and costs for the program;

2725

(6) Take any other action it considers necessary to establish	2726
and administer the program.	2727

(B) If it establishes a health care program, the board shall	2728
establish eligibility criteria and any other requirements for	2729
participation. To be eligible, an individual must meet the	2730
criteria established by the board and be one or more of the	2731
following:	2732

(1) A former member receiving benefits pursuant to section	2733
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised	2734
Code;	2735

(2) A disability benefit recipient receiving a disability	2736
benefit pursuant to section 3309.35, 3309.39, 3309.40, or 3309.401	2737
of the Revised Code;	2738

(3) A beneficiary receiving monthly benefits pursuant to	2739
section 3309.45 of the Revised Code;	2740

(4) The beneficiary of a former member who is receiving	2741
monthly benefits pursuant to section 3309.46 of the Revised Code;	2742

(5) A dependent, as determined under rules adopted by the	2743
board, of an individual described in divisions (B)(1) to (4) of	2744
this section.	2745

(C) The cost paid from the funds of the system for coverage	2746
under this section shall be included in the employer contribution	2747
under sections 3309.49 and 3309.491 of the Revised Code.	2748

(D)(1) The board may require payment of a premium for	2749
participation in the health care program. Participation is deemed	2750
consent for the deduction of premiums from any pension, benefit,	2751
or annuity provided under this chapter to an eligible participant.	2752

(2) An individual who fails to pay any required premium or	2753
receives any coverage or payment to which the individual is not	2754
entitled shall pay or repay any amount due the system. If an	2755
individual fails to pay or repay an amount due, the system may	2756
withhold the amount from any pension, benefit, annuity, or payment	2757
due the individual or the individual's beneficiary under this	2758
chapter or collect the amount in any other manner provided by law.	2759

(E) A health care program participant who is eligible for	2760
coverage under medicare part B, "Supplementary Medical Insurance	2761
Benefits for the Aged and Disabled," 42 U.S.C. 1395j, as amended,	2762
shall enroll for that coverage. The board shall, beginning the	2763
month following receipt of satisfactory evidence of the payment	2764
for coverage, make a monthly payment to ~~each recipient of service~~	2765
~~retirement, or a disability or survivor benefit under the school~~	2766
~~employees retirement system who is eligible for insurance coverage~~	2767
~~under part B of "The Social Security Amendments of 1965," 79 Stat.~~	2768
~~301, 42 U.S.C.A. 1395j, as amended, except that the board shall~~	2769
~~make no such payment to any ineligible individual. Effective on~~	2770
~~the first day of the month after April 9, 2001, the amount of the~~	2771
~~payment shall be the lesser of an amount equal to the basic~~	2772
~~premium for such coverage, or an amount equal to the basic premium~~	2773
~~in effect on January 1, 1999~~the participant in an amount	2774
determined by the board for such coverage that is not less than	2775
forty-five dollars and fifty cents, except that the board shall	2776
make no payment to a participant who is not eligible for coverage	2777
under medicare part B or pay an amount that exceeds the amount	2778
paid by the recipient for the coverage.	2779

~~(D)~~(F) The board shall establish by rule requirements for the	2780
coordination of any coverage, payment, or benefit provided under	2781
this section or section 3309.375 of the Revised Code with any	2782
similar coverage, payment, or benefit made available to the same	2783
individual by the public employees retirement system, Ohio police	2784
and fire pension fund, state teachers retirement system, or state	2785
highway patrol retirement system.	2786

~~(E)~~(G) The board shall make all other necessary rules	2787
pursuant to the purpose and intent of this section.	2788

(H) This section does not require the board to establish,	2789
maintain, offer, or continue any health care program. This section	2790
does not require the board to provide or continue access to any	2791
health care program, or any level of coverage or costs provided	2792
under the program, if the board establishes or maintains a program	2793
under this section.	2794

Sec. 3309.88. For each member participating in a plan	2795
established under section 3309.81 of the Revised Code, the school	2796
employees retirement system shall transfer to the employers' trust	2797
fund a portion of the employer contribution required under section	2798
3309.49 of the Revised Code. The portion shall equal the	2799
percentage of compensation of members for whom the contributions	2800
are being made that is determined by an actuary appointed by the	2801
school employees retirement board to be necessary to mitigate any	2802
negative financial impact on the system of members' participation	2803
in a plan.	2804

The board shall have prepared annually an actuarial study to	2805
determine whether the percentage transferred under this section	2806
should be changed to reflect a change in the level of negative	2807
financial impact resulting from members' participation in a plan.	2808
The percentage transferred shall be increased or decreased to	2809
reflect the amount needed to mitigate the negative financial	2810
impact, if any, on the system, as determined by the study. A	2811
change shall take effect on the first day of the year following	2812
the date the conclusions of the study are reported to the board.	2813

The system shall make the transfer required under this	2814
section until the unfunded actuarial accrued liability for all	2815
benefits, except health care benefits provided under section	2816
3309.375 or 3309.69 of the Revised Code and benefit increases to	2817
members and former members participating in the plan described in	2818
sections 3309.18 to 3309.70 of the Revised Code granted after ~~the~~	2819
~~effective date of this section~~April 9, 2001, is fully amortized,	2820
as determined by the annual actuarial valuation prepared under	2821
section 3309.21 of the Revised Code.	2822

Section 2. That existing sections 3309.05, 3309.051,	2823
3309.061, 3309.07, 3309.072, 3309.074, 3309.075, 3309.10, 3309.15,	2824
3309.21, 3309.22, 3309.23, 3309.26, 3309.28, 3309.33, 3309.34,	2825
3309.341, 3309.343, 3309.35, 3309.353, 3309.354, 3309.36,	2826
3309.362, 3309.371, 3309.373, 3309.376, 3309.379, 3309.3710,	2827
3309.3711, 3309.39, 3309.401, 3309.41, 3309.44, 3309.45, 3309.46,	2828
3309.47, 3309.50, 3309.51, 3309.69, and 3309.88 and sections	2829
3309.38 and 3309.571 of the Revised Code are hereby repealed.	2830

Section 3. Section 3309.23 of the Revised Code is presented	2831
in this act as a composite of the section as amended by both Am.	2832
Sub. S.B. 351 and Am. S.B. 346 of the 119th General Assembly. The	2833
General Assembly, applying the principle stated in division (B) of	2834
section 1.52 of the Revised Code that amendments are to be	2835
harmonized if reasonably capable of simultaneous operation, finds	2836
that the composite is the resulting version of the section in	2837
effect prior to the effective date of the section as presented in	2838
this act.	2839