To amend sections 3309.36, 3309.38, 3309.50, and 3309.69 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, and to increase the SERS reimbursement for insurance coverage under Medicare Part B.

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

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.

(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.