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(122nd General Assembly)(Amended Substitute House Bill Number 673)
AN ACT
To amend sections 145.291, 145.30, 3305.05, 3305.06, 3307.01, 3307.35,
3309.36, 3309.38, 3309.50, and
3309.69, to enact sections 3305.051 and 3307.515, and to repeal section
3309.37 of the Revised Code to increase the School
Employees Retirement System
(SERS) service retirement benefit for retirants
with more than 30 years'
service credit, to increase the SERS death benefit to $1,000, to increase
the SERS reimbursement for insurance
coverage under Medicare
Part B, to make changes with regard
to military service credit granted by the
Public Employees Retirement System,
to make changes to the law
governing alternative retirement programs for employees of
public institutions
of higher education,
to change the date by which
the Ohio Retirement Study Council is
required to have completed and
submitted an actuarial study of the alternative
retirement program for
employees of public institutions of higher
education, to permit a
member of the Public Employees Retirement System who resigned
due to pregnancy to purchase up to one year of service credit,
to permit a member of the State Teachers Retirement System
who was granted a leave of absence for pregnancy or resigned due
to pregnancy to purchase up to two years of service credit, and to declare an
emergency.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 145.291, 145.30, 3305.05, 3305.06, 3307.01, 3307.35,
3309.36, 3309.38, 3309.50,
and 3309.69 be amended and sections 3305.051 and 3307.515 of the Revised Code
be enacted to read as follows:
Sec. 145.291. Any member, of the public
employees retirement system who subsequent to January 1, 1935, and the
date membership was established was off the payroll for not more than one
year either
on a leave of absence approved by the then appointing authority or because
the member resigned due to pregnancy, shall have the right to make such
payment, at the contribution rate in effect at the time of
payment, with interest on such amount compounded annually at a
rate to be determined by the retirement board as he the
member would
have
made if he the member
had continued on the payroll at the earnable salary he the
member was
receiving at the time his public service was
interrupted, provided
that subsequent to such leave of absence he the member returned
to regular
contributing status in this the retirement system for at least
twelve calendar months. The
In the case of resignation, the member must submit evidence satisfactory
to the retirement board documenting that the resignation was due to pregnancy. The member may choose to purchase only part of
such the
credit in any one payment, subject to board rules. The payment
shall entitle the member to receive service credit for the leave or
period of absence, except that service credit purchased under
this section shall not exceed one year. The payment, together with any
regular interest,
shall, in the event of death or withdrawal from service of the
member prior to retirement, be considered as accumulated
contributions of the member. Sec. 145.30. (A) As used in this section and section 145.301 of the Revised
Code: (1) "Armed forces" of the United States includes the following: (a) Army, navy, air force, marine corps, coast guard, auxiliary corps as
established by congress, red cross nurse serving with the army, navy, air
force, or hospital service of the United States, army nurse corps, navy nurse
corps, full-time service with the American red cross in a combat zone, and
such other service as may be designated by congress as included therein; (b) Personnel of the Ohio national guard and the reserve components of any of
the armed forces enumerated in division (A)(1) of this section who are called
to active duty pursuant to an executive order issued by the president of the
United States or an act of congress; (c) Persons on whom United States merchant marine veteran status has been
conferred for service aboard oceangoing merchant ships in service to the
United States during World War II. (2) "State retirement system" means any of the following: the police and
firemen's disability and pension fund, public employees retirement system,
school employees retirement system, state highway patrol retirement system, or
the state teachers retirement system. (B) Upon reemployment in the public service and completion of one year of
service credit as covered by a state retirement system or the Cincinnati
retirement system, within two years after service in the uniformed
services armed forces
that is terminated in a manner other than as described in section 4304 of
Title 38 of the United States Code, "Uniformed Services Employment and
Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 4304, and
presentation of documentation of the service and subject to rules adopted by
the retirement board, any member of the public employees retirement system who
was a member with not less than one year of payroll deductions before entering
active duty with the armed forces and maintained membership in the public
employees retirement system as provided by section 145.41 of the Revised Code,
and who was or is out of active service as a public employee by reason of
having become a member of the armed forces of the United States on active duty
or service shall have such military service, not in excess of ten
years,
considered as the equivalent of prior service. Uniformed service
service in the armed forces as
established by documentation of the service, not in excess of ten years, shall
also be considered prior service for a person who was a public employee and
who has acquired service credit for five years prior to, and within the one
year preceding, the date of entering on active duty in the armed forces of the
United States if such person was reemployed in the public service within one
year after service in the uniformed services armed forces that
is terminated in a manner
other than as described in section 4304 of Title 38 of the United States Code,
"Uniformed Services Employment and Reemployment Rights Act of 1994," 108 Stat.
3149, 38 U.S.C.A. 4304, and established total service credit as defined in
section 145.01 Of the Revised Code of twenty years exclusive of credit for service in
the uniformed
service services, as defined in section 145.302 Of the Revised Code. This
division shall not serve to cancel any military service credit
earned or granted prior to November 1, 1965. (C) A member of the public employees retirement system is ineligible to
receive service credit under this section for any year of military service
credit used in the calculation of any retirement benefit currently being paid
to the member or payable in the future under any other retirement program,
except social security, or used to obtain service credit pursuant to section
145.301 or 145.302 of the Revised Code. At the time such credit is requested,
the member shall certify on a form supplied by the retirement board that the
member does and will conform to this requirement. This division does not
cancel any military service credit earned prior to March 15, 1979. Sec. 3305.05. (A) A person whose employment as an academic or
administrative employee of a public institution of higher education commences
after the initial date on which the board of trustees of the public
institution establishes the alternative retirement program may, not later than
ninety days after the starting date of employment, make an election to
participate in an alternative retirement plan available at the public
institution. If no election to an alternative retirement plan is in effect at
the end of ninety days after the person's starting date of employment, the
person shall be
deemed to have elected participation in the state retirement system that
applies to the person's employment. Except as provided under division
(F) of this section, an election that is made under this division or
division (B) of this section and that is in effect at the end of
ninety days after the person's starting date of employment, shall be
irrevocable while the electing
employee remains continuously employed. A person who makes an election to
participate in an alternative retirement plan shall be forever barred from
claiming or purchasing service credit under any state retirement system for
the
period of that person's employment that the election is in effect.
If a person ceases to be
continuously employed and subsequently is employed by a public institution of
higher education in a position for which an alternative retirement plan is
available under this chapter, the person may make another election under this
division. Each public institution of higher
education employing a person eligible to make an election under
this division shall notify, within ten days of the person's
employment, that the state retirement system that applies to
that person's
employment in the manner specified by that state retirement
system, which
notice shall include the new employee's name and address. This division does not apply to any person who has made an election under
this division or division (B) of this section unless the person has
ceased to be continuously employed. (B)(1) Not later than one hundred twenty days after the date on
which the board
of trustees of a public institution of higher education establishes the
initial alternative retirement program for that public institution, each
eligible
academic or administrative employee of the public institution with less
than
five years of total service credit in the state retirement system in which the
person is a member on that initial
establishment date may make an election to participate in an alternative
retirement plan available at the public institution. If a person to whom this
division applies fails to make an election, the person shall be deemed to have
elected continued participation in the state retirement system in which the
person is a member. (2)(a) If a public institution's alternative retirement program
is established on or after the effective date of this amendment but not later
than twelve months after the department of insurance
makes a designation under section 3305.03 Of the Revised Code, a member of the public
employees retirement system or school employees retirement system who is an
academic or administrative employee of the public institution is eligible to
elect to participate if the member has less than five years of service credit
in the retirement system on the last day of the month in which the designation
is made. If a public institution's alternative retirement program is
established more than twelve months after the department of insurance makes
the
designation, a member of the public employees retirement system or school
employees retirement system who is an academic or administrative employee of
the public institution is eligible to elect to participate if the member has
less than five years of service credit in the retirement system on the first
day the month in which the program is established. (b) A member of the state teachers retirement system who is an
academic or administrative employee of a public institution that establishes
an alternative retirement program is eligible to participate in the program if
the member has less than five years of service credit in the retirement system
on the thirtieth day of June immediately preceding the date the
program is established. (C) Each academic or administrative employee shall make any an
election under division (A) or (B) of this section in
writing and submit the election to the designated officer of the employee's
employing public institution of higher education. The officer shall
file a certified copy of the election within ten days with the state
retirement
system to which, apart from this election, the employee's employment would be
subject. (D)(1) Each election made under division (A) of this
section shall be effective on the electing employee's starting date of
employment. (2) Each In the case of a member of the public employees retirement
system or school employees retirement system, an election made under
division (B) of this section shall
be effective on the first day of the month next following the date on which
the electing employee submits the election under division (C) of this
section date described in division (B)(2)(a)
of
this section. In the case of a member of the state teachers retirement
system, an election shall be effective on the date described in division
(B)(2)(b) of this section. (E) Any election made under division (A) or (B)
of this section shall only apply to the electing employee's employment in
positions for which an alternative retirement program is available pursuant to
this chapter. Employment of the electing employee in any other position shall
be subject to the applicable state retirement system. (F) The board of trustees of a public institution of higher
education shall permit an electing employee to change the alternative
retirement plan in which the electing employee participates if the plan
ceases,
pursuant to division (C) of section 3305.03 of the Revised Code, to be a
designated
plan. Sec. 3305.051. The state retirement system that covers the position held
by an employee of a public institution of higher education who makes an
election under division (A) of section 3305.05 Of the Revised Code to participate in
the public institution's alternative retirement program shall return to the
public institution any employee and employer contributions made to the
retirement system for the ninety-day period described in that division less
the amount due the retirement system pursuant to division (E) of
section 3305.06 Of the Revised Code for that period. The state retirement system that covers the position held by an employee of
a public institution of higher education who makes an election under division
(B) of section 3305.05 Of the Revised Code to participate in the public
institution's alternative retirement program shall return to the public
institution any employee and employer contributions made to the retirement
system for any period commencing after the applicable date described in
division (B)(2)(a) or (b) of section
3305.05 Of the Revised Code less the amount due the retirement system pursuant to division
(E) of section 3305.06 Of the Revised Code for that period. Sec. 3305.06. (A) Each electing employee shall contribute an
amount, which shall be a certain percentage of the employee's compensation, to
the alternative retirement plan in which the employee participates. This
percentage shall be the percentage the electing employee would have otherwise
been required to contribute to the state retirement system that applies to the
employee's position, except that the percentage shall not be less than three
per cent. Employee contributions under this division may be treated as
employer contributions in accordance with Internal Revenue
Code 414 (h). (B) Each public institution of higher education employing an
electing employee shall contribute an amount, which shall be a certain
percentage of the employee's compensation, to the alternative retirement plan
the employee has elected. This percentage shall be determined by the board of
trustees of the public institution. (C)(1) In no event shall the amount contributed
by the electing employee pursuant to division (A) of this section and
on the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as a state
retirement system pursuant to Internal Revenue Code
3121(B)(7) and the regulations adopted thereunder. (2) The full amount of the electing employee's contribution under
division (A) of this section and the full amount of the employer's
contribution made on behalf of that employee under division (B) of
this section shall be paid to the entity providing the employee's alternative
retirement plan for application to that plan in accordance with any contract
the electing employee has entered into for purposes of that plan. In no event
shall any benefits be paid under that plan prior to the time an electing
employee ceases to be continuously employed. (D) An electing employee may make voluntary deposits to the
employee's alternative retirement plan in addition to the employee
contribution
required under division (A) of this section. (E) Each public institution of higher education employing an
electing employee shall contribute on behalf of that employee to the state
retirement system that otherwise applies to the electing employee's position
an amount equal to six per cent of the electing employee's compensation to
mitigate any negative financial impact of the alternative retirement program
on
the state retirement system; provided that on the first day of July
following the first year after the effective date of this section
department of insurance designates an alternative retirement plan under
section 3305.03 Of the Revised Code and every third year thereafter, the Ohio retirement
study commission COUNCIL shall cause an independent
actuarial study to be completed and submitted to the Ohio board of
regents. The study shall determine any adjustments in contributions necessary
to reflect any change in the level of the negative financial impact resulting
from the establishment of the alternative retirement program. The amount
contributed
to the state retirement system pursuant to this division shall be increased or
decreased to reflect the amount needed to mitigate the negative financial
impact, if any, on the system, as determined by each actuarial study.
Any increase or decrease in
contributions shall become effective on the first day of July in the
year in which the actuarial study is completed. Contributions on behalf of an
electing employee shall continue in accordance with this division until the
occurrence of the following: (1) If the electing employee would be subject to Chapter 145. of the
Revised Code had the employee not made an election pursuant
to
section 3305.05 of the Revised Code, until the unfunded
actuarial
accrued liability for all benefits, except health care benefits provided under
section 145.325 or 145.58 of the Revised Code, is fully
amortized, as determined by the annual actuarial valuation prepared under
section 145.22 of the Revised Code; (2) If the electing employee would be subject to Chapter 3307. of the
Revised Code had the employee not made an election pursuant to
section 3305.05 of the Revised Code, until the unfunded actuarial
accrued liability for all benefits, except health care benefits provided under
section 3307.405 or 3307.74 of the Revised Code, is fully
amortized, as determined by the annual actuarial valuation prepared under
section 3307.20 of the Revised Code; (3) If the electing employee would be subject to Chapter 3309. of the
Revised Code had the employee not made an election pursuant to
section 3305.05 of the Revised Code, until the unfunded actuarial
accrued liability for all benefits, except health care benefits provided under
section 3309.375 or 3309.69 of the Revised Code, is fully
amortized, as determined by the annual actuarial valuation prepared under
section 3309.21 of the Revised Code. Sec. 3307.01. As used in this chapter: (A) "Employer" means the board of education, school
district, governing authority of any community school established under
Chapter 3314. of the Revised Code, college, university, institution, or
other agency
within the state by which a teacher is employed and paid. (B) "Teacher" means any person paid from public funds and
employed in the public schools of the state under any type of
contract described in section 3319.08 of the Revised Code in a
position for which the person is required to have a
license issued
pursuant to sections 3319.22 to 3319.31 of the Revised Code; any person
employed as a teacher by a community school pursuant to Chapter 3314.
of the Revised Code; and
any other teacher or faculty member employed in any school,
college, university, institution, or other agency wholly
controlled and managed, and supported in whole or in part, by the
state or any political subdivision thereof, including Central
state university, Cleveland state university, the university of
Toledo, and the medical college of Ohio at Toledo. The
educational employees of the department of education, as
determined by the state superintendent of public instruction,
shall be considered teachers for the purpose of membership in
this system. In all cases of doubt, the state teachers
retirement board shall determine whether any person is a teacher,
and its decision shall be final. "Teacher" does not include any academic or administrative employee of a public
institution of higher education, as defined in section 3305.01 of the Revised
Code, who participates in an alternative retirement plan
established under Chapter 3305. of the Revised Code. (C) "Prior service" means all service as a teacher before
September 1, 1920, military service credit, all service prior to
September 1, 1920, as an employee of any employer who comes
within the public employees retirement system, the school
employees retirement system, or any other state retirement system
established under the laws of Ohio, and similar service in
another state, credit for which was procured by a member under
section 3307.33 of the Revised Code, prior to June 25, 1945.
Prior service credit shall not be granted to any member for
service for which credit or benefits have been received in any
other state retirement system in Ohio or for credit that was
forfeited by withdrawal of contributions, unless the credit has
been restored. If the teacher served as an employee in any two
or all of the capacities, "prior service" means the total
combined service in the capacities prior to September 1, 1920. If a teacher who has been granted prior service credit for
service rendered prior to September 1, 1920, as an employee of an
employer who comes within the public employees retirement system
or the school employees retirement system, establishes,
subsequent to September 16, 1957, and before retirement, three
years of contributing service in the public employees retirement
system, or one year in the school employees retirement system,
the prior service credit granted shall become, at
retirement, the liability of the other system if
the prior
service or employment was in a capacity covered by that system. (D) "Total service," "total service credit," except as
provided in section 3307.41 of the Revised Code, or "Ohio service
credit" means all service of a member of the state teachers
retirement system since last becoming a member and, in addition
thereto, restored service credit under section 3307.28 of the Revised Code,
all prior
service credit, all military service credit
computed as provided in this chapter, and all other service credit established
under sections 3307.22, 3307.31, 3307.311, 3307.32, 3307.35,
3307.411,
3307.412, 3307.51, 3307.512, 3307.513, 3307.514, 3307.515, and
3307.73
and former section
3307.52 of the Revised Code, and Section 3 of Amended Substitute
Senate Bill No. 530 of the 114th general assembly. All service
credit purchased under section 3307.33 of the Revised Code shall
be used exclusively for the purpose of qualifying for service
retirement. (E) "Member" means any person included in the membership
of the state teachers retirement system, which shall consist of
all teachers and contributors as defined in divisions (B) and (F)
of this section and all disability benefit recipients. However,
for purposes of this chapter, the following persons shall not be
considered members: (1) A student, intern, or resident who is not a member while employed
part-time by a school, college, or
university at which the student, intern, or resident is
regularly attending classes; (2) A person denied membership pursuant to section 3307.27
of the Revised Code; (3) A superannuate or other system retirant as defined in
section 3307.381 of the Revised Code; (4) An individual employed in a program established
pursuant to the "Job Training Partnership Act," 96 Stat. 1322
(1982), 29 U.S.C.A. 1501. (F) "Contributor" means any person who has an account in
the teachers' savings fund. (G) "Beneficiary" means any person eligible to receive, or
in receipt of, a retirement allowance or other benefit provided
by this chapter. (H)(1) "Service retirement" means retirement as provided
in section 3307.38 or 3307.39 of the Revised Code. (2) "Disability retirement" means retirement as provided
in section 3307.43 of the Revised Code. (I) "Accumulated contributions" means the sum of all
amounts credited to a contributor's individual account in the
teachers' savings fund, together with interest credited thereon
at the rates approved by the state teachers retirement board
prior to retirement. (J) "Annuity" means payments for life derived from
contributions made by a contributor and paid from the annuity and
pension reserve fund. All annuities shall be paid in twelve
equal monthly installments. (K) "Pensions" means annual payments for life derived from
appropriations made by an employer and paid from the annuity and
pension reserve fund. All pensions shall be paid in twelve equal
monthly installments. (L)(1) "Allowance" or "benefit" means the pension plus the
annuity, or any other payment under this chapter, and includes a
disability allowance or disability benefit. (2) "Disability allowance" means an allowance paid on
account of disability under section 3307.431 of the Revised Code. (3) "Disability benefit" means a benefit paid as
disability retirement under section 3307.43 of the Revised Code,
as a disability allowance under section 3307.431 of the Revised
Code, or as a disability benefit under section 3307.41 of the
Revised Code. (M) "Annuity reserve" means the present value, computed
upon the basis of mortality tables adopted by the state teachers
retirement board with interest, of all payments to be made on
account of any annuity, or benefit in lieu of any annuity,
granted to a member. (N) "Pension reserve" means the present value, computed
upon the basis of mortality tables adopted by the state teachers
retirement board with interest, of all payments to be made on
account of any pension, or benefit in lieu of any pension,
granted to a member or to a beneficiary. (O) "Year" means the year beginning the first day of July
and ending with the thirtieth day of June next following, except
that for the purpose of determining final average salary, "year"
may mean the contract year. (P) "Local district pension system" means any school
teachers pension fund created in any school district of the state
in accordance with the laws of the state prior to September 1,
1920. (Q) "Employer contribution" means the amount paid by an
employer, as determined by the employer rate, including the
normal and deficiency rates, contributions, and funds wherever
used in this chapter. (R) "Five years of service credit," for the exclusive
purpose of satisfying the service credit requirements and
determining eligibility for benefits under section 3307.38 of the
Revised Code, means employment covered under this chapter and
employment covered under a former retirement plan operated,
recognized, or endorsed by a college, institute, university, or
political subdivision of this state prior to coverage under this
chapter. (S) "Actuary" means the actuarial consultant to the state
teachers retirement board, who shall be either of the following: (1) A member of the American academy of actuaries; (2) A firm, partnership, or corporation of which at least
one person is a member of the American academy of actuaries. (T) "Fiduciary" means a person who does any of the
following: (1) Exercises any discretionary authority or control with
respect to the management of the system, or with respect to the
management or disposition of its assets; (2) Renders investment advice for a fee, direct or
indirect, with respect to money or property of the system; (3) Has any discretionary authority or responsibility in
the administration of the system. (U)(1) Except as otherwise provided in this division,
"compensation" means all salary, wages, and other earnings paid
to a teacher by reason of the teacher's employment, including compensation
paid pursuant to a supplemental contract. The salary, wages,
and other earnings shall be determined prior to determination of
the amount required to be contributed to the teachers' savings
fund under section 3307.51 of the Revised Code and without regard
to whether any of the salary, wages, or other earnings are
treated as deferred income for federal income tax purposes. (2) Compensation does not include any of the following: (a) Payments for accrued but unused sick leave or personal
leave, including payments made under a plan established pursuant
to section 124.39 of the Revised Code or any other plan
established by the employer; (b) Payments made for accrued but unused vacation leave,
including payments made pursuant to section 124.13 of the Revised
Code or a plan established by the employer; (c) Payments made for vacation pay covering concurrent
periods for which other salary, compensation, or benefits under
this chapter are paid; (d) Amounts paid by the employer to provide life
insurance, sickness, accident, endowment, health, medical,
hospital, dental, or surgical coverage, or other insurance for
the teacher or the teacher's family, or amounts paid by the
employer to the teacher in lieu of providing the insurance; (e) Incidental benefits, including lodging, food, laundry,
parking, or services furnished by the employer, use of the
employer's property or equipment, and reimbursement for
job-related expenses authorized by the employer, including moving
and travel expenses and expenses related to professional
development; (f) Payments made by the employer in exchange for a
member's waiver of a right to receive any payment, amount, or
benefit described in division (U)(2) of this section; (g) Payments by the employer for services not actually
rendered; (h) Any amount paid by the employer as a retroactive
increase in salary, wages, or other earnings, unless the increase
is one of the following: (i) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for teaching and not designated for being an administrator
issued under section 3319.22 of the Revised Code that is
paid in accordance with uniform criteria applicable to all
members employed by the board in positions requiring the
licenses; (ii) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for being an administrator issued under section 3319.22 of
the Revised Code that is paid in accordance
with uniform criteria applicable to all members employed by the
board in positions requiring the licenses; (iii) A retroactive increase paid to a member employed by
a school district board of education as a superintendent that is
also paid as described in division (U)(2)(h)(i) of this section; (iv) A retroactive increase paid to a member employed by
an employer other than a school district board of education in
accordance with uniform criteria applicable to all members
employed by the employer. (i) Payments made to or on behalf of a teacher that are in
excess of the annual compensation that may be taken into account
by the retirement system under division (a)(17) of section 401 of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
401(a)(17), as amended. For a teacher who first establishes
membership before July 1, 1996, the annual compensation that may be
taken into account by the retirement system shall be determined under
division (d)(3) of section 13212 of the "Omnibus
Budget Reconciliation Act of 1993," Pub.
L. No. 103-66, 107 Stat. 472. (j) Payments made under division (B) or (D) of section
5923.05 of the Revised Code or Section 4 of Substitute
Senate Bill No. 3 of the 119th general
assembly; (k) Anything of value received by the teacher that is
based on or attributable to retirement or an agreement to retire. (3) The retirement board shall determine by rule both of
the following: (a) Whether particular forms of earnings are included in
any of the categories enumerated in this division; (b) Whether any form of earnings not enumerated in this
division is to be included in compensation. Decisions of the board made under this division shall be
final. (V) "Retirant" means any former member who is granted age
and service retirement as provided in sections 3307.38, 3307.39,
3307.41, and 3307.50 of the Revised Code. (W) "Disability benefit recipient" means a member who is
receiving a disability benefit. Sec. 3307.35. An employer may establish a retirement
incentive plan for its employees who are members of the state
teachers retirement system. The plan shall provide for purchase
by the employer of service credit for eligible employees who
choose to participate in the plan and for payment by the employer
of the entire cost of such service credit. A plan established
under this section shall remain in effect until terminated by the
employer, except that, once established, the plan must remain in
effect for at least one year. An employee who is a member of the state teachers
retirement system shall be eligible to participate in a
retirement incentive plan if the employee has attained age
fifty and the employee
agrees to retire and retires under section 3307.38 of the Revised
Code effective within ninety days after receiving notice from the
state teachers retirement system that service credit has been
purchased for the member under this section. Participation in the plan shall be available to all
eligible employees except that the employer may limit the number
of persons for whom it purchases credit in any calendar year to a
specified percentage of its employees who are members of the
state teachers retirement system on the first day of January of
that year. The percentage shall not be less than five per cent
of such employees. If participation is limited, employees with a
greater length of service with the employer have the right to
elect to have credit purchased before employees with a lesser
length of service with the employer. The amount of service credit purchased for any participant
shall be uniformly determined but shall not exceed the lesser of
the following: (A) Five years of service credit; (B) An amount of service credit equal to one-fifth of the
total service credited to the participant under sections 3307.02,
3307.021, 3307.022, 3307.22, 3307.28, 3307.31, 3307.311,
3307.32, 3307.41, 3307.411, 3307.412, 3307.512, 3307.513, 3307.514,
3307.515, 3307.52,
and 3307.73 of the Revised Code. For each year of service credit purchased under this
section, the employer shall pay an amount specified by the state
teachers retirement board equal to the additional liability
resulting from the purchase of that year of service credit as
determined by an actuary employed by the board. Payments shall
be made in accordance with rules adopted by the board, and the
board shall notify each member when the member is credited
with service
purchased under this section. No payment made to the state teachers retirement system
under this section shall affect any payment required by section
3307.53 of the Revised Code. Sec. 3307.515. As used in this section, "regular employment" means a
consistent pattern of employment for twelve or more consecutive weeks by the
same employer during the year. A member of the state teachers retirement system who prior
to July 1, 1982, was granted a leave of absence for pregnancy or
resigned due to pregnancy may purchase service credit for a period for which
she did not make contributions under section 3307.51 Of the Revised Code. Service credit
purchased under this section shall not exceed the lesser of two years or the
period from the day the leave commenced or the effective date of resignation
to the date of the member's return to regular employment as a contributor to
the retirement system. A member may purchase credit for more than one period
of absence due to pregnancy, but the total service credit purchased under this
section, section 3307.513, and section 3307.514 Of the Revised Code shall not exceed two
years. The member shall submit evidence satisfactory to the retirement board
documenting that the leave or resignation was due to pregnancy. For each year of service credit purchased under this section, the member
shall pay to the system for credit to her accumulated account an amount
determined by multiplying the employee rate of contribution in effect at the
time the leave or absence commenced by her annual compensation for full-time
employment during the first year of service in Ohio following
termination of the absence or leave and adding to that amount interest
compounded annually, at a rate established by the board, from the date the
absence or leave terminated to the date of payment. A member may purchase all or part of the credit for which she is eligible
in one or more payments. A member who purchases service credit for an absence
or leave under this section may not purchase credit for that absence or leave
under section 3307.512 Of the Revised Code. A member who has purchased service credit for an
absence or leave under section 3307.512, 3307.513, or 3307.514 Of the Revised Code may not
purchase credit under this section for the same period of absence or leave. The state teachers retirement board may adopt rules to implement this
section. Sec. 3309.36. (A) A member retiring on service retirement
shall be granted a retirement allowance consisting of the lesser
of the sum of the following amounts or the limit established by
section 415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A. 415, as amended: (A)(1) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at that time;
(B)(2) A pension of equivalent amount;
(C)(3) An additional pension of forty dollars multiplied by
the number of years of such prior service credit;
(D)(4) For members who have ten or more years of service
credit accumulated prior to October 1, 1956, a basic annual
pension equal to one hundred eighty dollars, except that such
basic annual pension shall not exceed the sum of the total annual
benefits provided by divisions (A)(1), (B)(2), and
(C)(3) of this section.
(E)(B)(1) When a member retires on service retirement and
his, the
member's
allowance when computed as an annual single lifetime allowance as
provided in divisions (A)(1), (B)(2),
(C)(3), and (D)(4) of this section and
section 3309.38 of the Revised Code, based upon attained age
sixty-five or thirty years of total service credit, is shall be
not less than
the greater of the amounts determined by multiplying his the
member's total
service credit by eighty-six the following:
(a) Eighty-six dollars, or by two; (b) Two and one-tenth per
cent of his the member's final average salary, then the
allowance shall be
increased to such greater amount. If such member's attained age
is other than sixty-five, or his total service
credit is other
than thirty years, then he shall receive an adjusted for each of the
first thirty years of service credit or fraction thereof plus two and one-half
per cent of the member's final average salary for each subsequent year of
service credit or fraction thereof. (2) The
annual
single lifetime allowance which determined under division
(B)(1) of this section shall be adjusted by the higher
percentage of
a base amount determined by greater percentage shown in the
following schedule OPPOSITE THE MEMBER'S ATTAINED AGE OR YEARS OF
OHIO SERVICE CREDIT:
| Years of | Per Cent |
Attained or | Ohio Service | of |
Age | Credit | Base Amount |
58 | 25 | 75% |
59 | 26 | 80 |
60 | 27 | 85 |
61 | | 88 |
| 28 | 90 |
62 | | 91 |
63 | | 94 |
| 29 | 95 |
64 | | 97 |
65 | 30 or more | 100. |
Members shall vest the right to a benefit in accordance with the
following schedule, based on the member's attained age by
September 1, 1976:
| Per Cent |
Attained | of |
Age | Base Amount |
66 | 102 |
67 | 104 |
68 | 106 |
69 | 108 |
70 or more | 110. |
(2)(3) The annual single lifetime allowance which a retirant
shall receive under this division shall not exceed the lesser of
ninety per cent of his the member's final average salary or the
limit
established by section 415 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(F)(C) Retirement allowances determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.38. (A) A member retiring on commuted service
retirement on or after September 30, 1963, shall be granted a
retirement allowance consisting of: (A)(1) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at the time;
(B)(2) A pension of equivalent amount;
(C)(3) An additional pension, if such employee has prior
service credit, the reserve for which, based upon regular
interest and the service tables approved by the board, shall be
the present worth of the reserve required for the payment of the
prior service pension provided by section 3309.36 of the Revised
Code, after either age sixty or thirty-two years of service
credit, whichever can be first attained. The annual prior
service pension shall be determined by the amount of such
commuted reserve divided by the service annuity rate for the
attained annuity age of retirement;.
(D)(4) For members who have ten or more years of service
credit accumulated prior to October 1, 1956, a basic annual
pension equal to one hundred eighty dollars, which shall be
commuted in the same manner as provided for the prior service
pension in division (C)(A)(3) of this section, provided such
commuted
basic annual pension shall not exceed the sum of the total annual
benefits provided by divisions (A)(1), (B)(2), and
(C)(3) of this section.
(E)(B) When a member retires on commuted service retirement,
his the member's annual single lifetime allowance including the
allowances
provided in divisions (A)(1), (B)(2),
(C)(3), and (D)(4) of this section
shall not be less than the allowances provided under the
provisions of division (E)(B) of section 3309.36 of the
Revised Code
and shall not exceed the limit established by division
(E)(2)(B)(3) of
that section.
(F)(C) Retirement allowances determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.50. Upon the death of a retirant or disability benefit recipient,
who at the time of death is receiving a service retirement allowance or
disability benefit from the school employees retirement system, a lump-sum
payment of five hundred one thousand dollars shall be paid to
any designated or qualified
beneficiary under division (D) of section 3309.44 of the Revised Code, or, if
none no such designation has been filed or if the designated
beneficiary is deceased or is not located within ninety days, the school
employees retirement board may approve payment to either the
person responsible for the burial expenses or to the decedent's estate
following the completion of an application on a form approved by the board. Sec. 3309.69. (A) As used in this section, "ineligible
individual" means all of the following: (1) A former member receiving benefits pursuant to section
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised
Code for whom eligibility is established more than five years
after June 13, 1981, and who, at the time of establishing
eligibility, has accrued less than ten years of service credit,
exclusive of credit obtained after January 29, 1981, pursuant to
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised
Code; (2) The spouse of the former member; (3) The beneficiary of the former member receiving
benefits pursuant to section 3309.46 of the Revised Code. (B) The school employees retirement board may enter into
an agreement with insurance companies, health
insuring
corporations, or government
agencies authorized to do business in the state for issuance of a
policy or contract of health, medical, hospital, or surgical
benefits, or any combination thereof, for those
individuals receiving service retirement or a disability or
survivor benefit
subscribing to the plan and their eligible dependents. If all or any portion of the policy or contract premium is
to be paid by any individual receiving service
retirement or a disability or survivor benefit, the
person shall, by written
authorization, instruct the board to deduct the premiums agreed
to be paid by the individual to the
companies, corporations, or agencies. The board may contract for coverage on the basis of
part or all of the cost of the coverage to be paid from
appropriate funds of the school employees retirement system. The cost paid
from the
funds of the system shall be included in the
employer's contribution rate provided by sections
3309.49 and 3309.491 of the
Revised Code. The board shall not pay or reimburse the cost for
health care under this section or section 3309.375 of the Revised
Code for any ineligible individual. The board may provide for self-insurance of risk or level
of risk as set forth in the contract with the companies,
corporations, or agencies, and may provide through the
self-insurance method specific benefits as authorized by the
rules of the board. (C) If the board provides health, medical, hospital, or
surgical benefits through any means other than a health
insuring corporation, it shall offer to
each
individual eligible
for the benefits the alternative of receiving benefits
through
enrollment in a health insuring
corporation, if all of the
following apply: (1) The health insuring corporation
provides health care services
in the geographical area in which the individual
lives; (2) The eligible individual was receiving health care
benefits through a health maintenance organization or a health insuring
corporation before
retirement; (3) The rate and coverage provided by the health
insuring corporation to eligible
individuals is
comparable to that currently provided by the board under division
(B) of this section. If the rate or coverage provided
by the health insuring corporation is
not comparable to that
currently provided by the board under division (B) of this
section, the board may deduct the additional cost from the eligible
individual's monthly benefit. The health insuring corporation shall
accept as an
enrollee any eligible individual who requests enrollment. The board shall permit each eligible individual to change
from one plan to another at least once a year at a time determined by
the board. (D) The board shall, beginning the month following receipt
of satisfactory evidence of the payment for coverage, make a
monthly payment to each recipient of service retirement, or a
disability or survivor benefit under the school employees
retirement system who is eligible for insurance coverage under
part B of "The Social Security Amendments of 1965," 79 Stat. 301,
42 U.S.C.A. 1395j, as amended, except that the board shall make
no such payment to any ineligible individual. The Effective on the
first day of the month after the effective date of this amendment, the
amount of the
payment shall be the lesser of an amount equal to the basic
premium for such coverage, or an amount equal to the
basic premium in effect on January 1, 1988 1992. (E) The board shall establish by rule requirements for the
coordination of
any coverage, payment, or benefit provided under this section or section
3309.375 of the Revised
Code with any similar coverage, payment, or
benefit made available to the same individual by the public employees
retirement system, police and firemen's disability and pension fund, state
teachers retirement system, or state highway patrol retirement
system. (F) The board shall make all other necessary rules
pursuant to the purpose and intent of this section. SECTION 2 . That existing sections 145.291, 145.30, 3305.05, 3305.06, 3307.01,
3307.35, 3309.36, 3309.38,
3309.50, and 3309.69 and
section 3309.37 of the Revised Code are hereby repealed.
SECTION 3 . The School Employees Retirement System shall make a one-time
payment to each person who is a current recipient of service retirement or a
disability or survivor benefit from the System and was eligible to receive a
monthly payment pursuant to division (D) of section 3309.69 of the Revised
Code for insurance coverage under Part B of "The Social Security Amendments of
1965," 79 Stat. 301, 42 U.S.C.A. 1935j, as amended, at any time during the
period commencing January 1, 1992, and ending on the effective date of this
section. The amount of the payment to each recipient shall be equal to the
sum of the differences between:
(A) Each monthly payment the recipient was eligible to receive under division
(D) of section 3309.69 of the Revised Code during the period commencing
January 1, 1992, and ending on the effective date of this section; and (B) The amount of the monthly payment that is authorized by division (D) of
section 3309.69 of the Revised Code as enacted by this act. SECTION 4 . Not later than sixty days after the effective date of this act,
the School Employees Retirement Board shall recalculate each allowance
calculated under section 3309.36 or 3309.38 of the Revised Code that is based
on more than thirty years of service credit and is effective on or after July
1, 1998, but before the effective date of this act.
If the recalculated allowance is greater than the recipient's allowance prior
to the recalculation, the Board shall do both of the following: (A) Begin payment of the recalculated allowance on the first day of the
month immediately following the date the recalculation is made; (B) Make one additional payment to the recipient equal to the difference
between the amount of allowance the recipient received between July 1, 1998,
and the date of the payment described in division (A) of this section and the
increased allowance the recipient would have received had the act gone into
effect on July 1, 1998. SECTION 5 . 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 act establishes dates for determining
who is eligible to participate in the alternative retirement programs for
academic and administrative employees of public institutions of higher
education and, without such dates, the programs cannot be implemented.
Therefore, this act shall go into immediate effect.
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