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(122nd General Assembly)(Amended House Bill Number 339)
To amend sections 3307.38 and 3307.384 and to enact
section 3307.4013 of the Revised Code to increase benefits
under the State
System, and to declare an emergency.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 3307.38 and 3307.384 be amended
and section 3307.4013 of the Revised Code be enacted to read as follows:
Sec. 3307.38. Any member who has five years of service
credit and has attained age sixty, or who has twenty-five years
of service credit and has attained age fifty-five, or who has
thirty years of service credit shall be granted service
retirement after filing with the state teachers retirement board
a completed application on a form approved by the board.
(A) Service retirement shall be effective on the first day
of the month next following the later of:
(1) The last day for which compensation was paid; or
(2) The attainment of minimum age or service credit
eligibility for benefits provided under this section.
Except as otherwise provided in division (D) of this
section, the service retirement benefit shall be the greater of
the benefits provided in divisions (B) and (C) of this section.
(B)(1) Subject to any adjustment made under division
(B)(2) of this section, the annual single lifetime benefit of
a member shall be the greater of the amounts determined by
service credit multiplied by one of the following:
(a) Eighty-six dollars;
(b) Two and one-tenth per cent of
his the member's final
average salary, except that if the member has more than thirty years service
credit earned under section 3307.31 or purchased under section 3307.512 of the
Revised Code, two and five-tenths the per cent of his
shall be the per cent shown in the following schedule times the
member's final average salary for each corresponding year or
fraction of a year of service credit earned or purchased under those sections
that is in excess of thirty years:
|Service||for that||Service||for that
For purposes of this schedule, years of service
credit shall be rounded to the nearest one-hundredth of a year.
(2) The annual single lifetime benefit of a member
determined under division (B)(1) of this section shall be
adjusted by the greater per cent shown in the following schedule
his the member's attained age or Ohio service credit.
| Years of||Per Cent
|Attained or||Ohio Service||of Base
| Age|| Credit|| Amount
| 58|| 25|| 75%
| 59|| 26|| 80
| 60|| 27|| 85
| 61|| 88
| 28|| 90
| 62|| 91
| 63|| 94
| 29|| 95
| 64|| 97
| 65||30 or more|| 100
Members shall vest the right to a benefit in accordance with the
following schedule, based on the member's attained age by
September 1, 1976:
|70 or more||110
(3) The annual single lifetime benefit determined under
this division shall not exceed the lesser of one hundred per cent
of the final average salary or the limit established by section
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26
U.S.C.A. 415, as amended.
(C) The annual single lifetime benefit of a member shall
not exceed the lesser of the sum of the following amounts or the
limit established by section 415 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:
(1) An annuity with a reserve equal to the member's
(2) A pension equal to the amount in division (C)(1) of
(3) An additional pension of forty dollars annually
multiplied by the number of years of prior and military service
credit, except years of credit purchased under section 3307.021
of the Revised Code;
(4) An additional basic annual pension of one hundred
eighty dollars, provided the member had ten or more years of Ohio
service credit as of October 1, 1956, except that
additional basic annual pension shall not exceed the sum of the annual
benefits provided by divisions (C)(1), (2), and (3) of this
(D) Benefits determined under this section shall be paid
as provided in section 3307.50 of the Revised Code.
Sec. 3307.384. A retirant who on the effective date of
section amendment is eligible to receive an
annual single lifetime benefit under section 3307.38, 3307.41, or
3307.50 of the Revised Code of less than six NINE thousand six
hundred dollars or its actuarial equivalent shall have such
that benefit increased to six NINE thousand six hundred
dollars or its actuarial equivalent if the benefit is based on an award
arising from thirty or more years of Ohio
service credit. The benefit increase provided by this section
amendment shall take effect on the first day of the first month
following the effective date of this section amendment and shall
not be subject to any final average salary limitation.
Sec. 3307.4013. (A) As used in this section:
(1) "Benefit" means a benefit, pension, or allowance under section
3307.38, 3307.41, 3307.43, 3307.431, 3307.49, or 3307.50 Of the Revised Code.
(2) "Cumulative percentage change in the CPI" means the total
percentage change in the consumer price index prepared by the United
bureau of labor statistics for urban wage earners and clerical workers
(CPI-W: U.S. city average, all items)
from the thirty-first day of December immediately preceding the year
in which the original benefit started through the thirty-first day of
December immediately preceding the effective date of this
(3) "Eligible recipient" means any person receiving a benefit on the
effective date of this section that has been payable to that person or to any
other person for at least twelve months.
(4) "Original benefit amount" means the initial amount of a benefit
granted to the initial recipient of the benefit.
(B) As of the effective date of this section, the state teachers
retirement board shall determine an amount for each eligible
recipient equal to the sum of the following amounts:
(1) an amount equal to seventy per cent of The original
benefit amount for the recipient;
(2) An amount equal to the product obtained when seventy per cent of the
original benefit amount is multiplied by the cumulative
percentage change in the CPI for the recipient.
(C)(1) Except as provided in division (C)(2) of this
section, if the amount of the annual benefit payable to an eligible
recipient on the effective date of this section is less than the amount
determined for the recipient under division (B) of this section, the
board shall recalculate that annual benefit so that it equals the amount
determined under division (B) of this section.
(2) If the recalculated benefit determined under division (C)(1)
of this section for an eligible recipient whose retirement was effective
before July 1, 1979, is less than one hundred three per cent of the
annual benefit payable to the recipient on the effective date of this section,
the board shall recalculate the annual benefit so that it equals one hundred
three per cent of the annual benefit payable to the recipient on the effective
date of this section.
An increase granted by division (C)(1) or (2) of this section to a
benefit amount shall apply on and after the first day of the month following
the effective date of this section.
(D) The board shall include the increase in amount paid under
this section in a person's base for purposes of future increases in any
benefit under section 3307.403 Of the Revised Code.
SECTION 2 . That existing sections 3307.38 and 3307.384 of the
Revised Code are hereby repealed.
SECTION 3 . Any retirant granted service retirement, as provided in section
3307.38 of the Revised Code, that is based on thirty-one or more years service
credit earned under section 3307.31 or purchased under section 3307.512 of the
Revised Code and is effective on or after July 1, 1997, but before the
effective date of this act may, no later than December 31, 1997, make
application to the State Teachers Retirement Board to have the retirant's
benefit recalculated under section 3307.38 of the Revised Code, as amended by
this act, and section 3307.50 of the Revised Code. On receipt of the
application, the Board shall inform the applicant of the benefit and options
to which the applicant is entitled under this act and the applicant may elect
to receive a recalculated benefit. If the applicant makes that election, the
Board shall pay the recalculated benefit.
If the recalculated benefit is greater than the applicant's benefit prior to
the recalculation, the Board shall make one additional payment to the
applicant equal to the difference between the benefits the applicant received
between July 1, 1997, and the date of the payment and the increased benefit
the applicant would have received had the act gone into effect on July 1,
The Board shall give written notice to each retirant subject to this section
that the retirant may, no later than December 31, 1997, make application to
the Board to have the retirant's benefit recalculated under section 3307.38 of
the Revised Code, as amended by this act, and section 3307.50 of the Revised
Code. The Board shall deliver the notice to each retirant by certified mail,
return receipt requested.
Section 4. This act is hereby declared to be an emergency measure necessary
for the immediate preservation of the public peace, health, and safety. The
reason for such necessity is that the benefits of teachers who retired in the
1960s and 1970s have lost a significant amount of purchasing power due to
inflation, and an immediate increase in benefits is needed to regain some of
this purchasing power. Therefore, this act shall go into immediate effect.