The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
As Reported by the Senate Ways and Means Committee
123rd General Assembly
Regular Session
1999-2000 | Sub. S. B. No. 270 |
SENATORS DRAKE-BLESSING-HERINGTON-DiDONATO-McLIN
A BILL
To amend sections 3309.01, 3309.03, 3309.04, 3309.05, 3309.07, 3309.12,
3309.15, 3309.17, 3309.22, 3309.341, 3309.36, 3309.374, 3309.381,
3309.40, 3309.401, 3309.45, 3309.47, 3309.49, 3309.53, 3309.54, 3309.55,
3309.57, 3309.59, 3309.60, 3309.61, 3309.66, and 3309.69;
to enact sections 3309.031, 3309.25, 3309.251, 3309.252, 3309.253, 3309.80,
3309.81, 3309.811, 3309.812, 3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 3309.98; and to repeal
section 3309.58
of the Revised Code to increase certain benefits paid by
the School Employees Retirement System (SERS), to increase the
SERS reimbursement for insurance coverage under Medicare Part B,
to require SERS to establish a defined contribution retirement plan, and to
make
other changes to the law governing SERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3309.01, 3309.03, 3309.04, 3309.05, 3309.07,
3309.12,
3309.15, 3309.17, 3309.22, 3309.341, 3309.36, 3309.374, 3309.381,
3309.40, 3309.401, 3309.45, 3309.47, 3309.49, 3309.53, 3309.54, 3309.55,
3309.57, 3309.59, 3309.60, 3309.61, 3309.66, and 3309.69 be amended and
sections 3309.031, 3309.25, 3309.251, 3309.252, 3309.253, 3309.80,
3309.81, 3309.811, 3309.812, 3309.813, 3309.82, 3309.85, 3309.86, 3309.87,
3309.88, 3309.91, 3309.92, 3309.95, 3309.97, and 3309.98
of the Revised Code be enacted to read as
follows:
Sec. 3309.01. As used in this chapter:
(A) "Employer" or "public employer" means boards of
education, school districts, joint vocational districts,
governing authorities of community schools established under
Chapter 3314. of the Revised Code, educational institutions, technical
colleges, state, municipal,
and community colleges, community college branches, universities,
university branches, other educational institutions, or other
agencies within the state by which an employee is employed and
paid, including any organization using federal funds, provided
the federal funds are disbursed by an employer as
determined by
the above. In all cases of doubt, the school employees
retirement board shall determine whether any employer is an
employer as defined in this chapter, and its decision shall be
final.
(B) "Employee" means all of the following:
(1) Any person employed by a public employer in a position
for which the person is not required to have a certificate or license
issued
pursuant to sections 3319.22 to 3319.31 of the Revised Code;
(2) Any person who performs a service common to the normal
daily operation of an educational unit even though the
person is
employed and paid by one who has contracted with an employer to
perform the service, and the contracting board or
educational
unit shall be the employer for the purposes of administering the
provisions of this chapter;
(3) Any person, not a faculty member, employed in any
school or college or other institution wholly controlled and
managed, and wholly or partly supported by the state or any
political subdivision thereof, the board of trustees, or other
managing body of which shall accept the requirements and
obligations of this chapter.
In all cases of doubt, the school employees retirement
board shall determine whether any person is an employee, as
defined in this division, and its decision is final.
(C) "Prior service" means all service rendered prior to
September 1, 1937:
(1) As an employee as defined in division (B) of this
section;
(2) As an employee in a capacity covered by the public
employees retirement system or the state teachers retirement
system;
(3) As an employee of an institution in another state,
service credit for which was procured by a member under the
provisions of section 3309.31 of the Revised Code.
Prior service, for service as an employee in a capacity
covered by the public employees retirement system or the state
teachers retirement system, shall be granted a member under
qualifications identical to the laws and rules applicable to
service credit in those systems.
Prior service shall not be granted any member for
service rendered in a capacity covered by the public employees
retirement system, the state teachers retirement system, and this
system in the event the service credit has, in the
respective
systems, been received, waived by exemption, or forfeited by
withdrawal of contributions, except as provided in this chapter.
If a member who has been granted prior service should,
subsequent to September 16, 1957, and before retirement,
establish three years of contributing service in the public
employees retirement system, or one year in the state teachers
retirement system, then the prior service granted shall
become,
at retirement, the liability of the other system, if the
prior
service or employment was in a capacity that is covered by that
system.
The provisions of this division shall not cancel any prior
service granted a member by the school employees retirement board
prior to August 1, 1959.
(D) "Total service," "total service credit," or "Ohio
service credit" means all contributing service of a member of the
school employees retirement system, and all
prior service, computed as provided in this chapter, and all service
established pursuant to sections 3309.31, 3309.311, and 3309.33 of the Revised
Code. In addition, "total service" includes any period,
not in excess of three years, during which a member was out of
service and receiving benefits from the state insurance fund,
provided the injury or incapacitation was the direct result of
school employment.
(E) "Member" means any employee, except an SERS retirant
or other system retirant as defined in section 3309.341 of the
Revised Code, who has established membership in the school
employees retirement system. "Member" includes a disability
benefit recipient.
(F) "Contributor" means any person who has an account in
the employees' savings fund.
WHEN USED IN THE SECTIONS LISTED IN DIVISION (B) OF SECTION
3309.82 OF THE REVISED CODE, "CONTRIBUTOR" INCLUDES ANY
PERSON
PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED CODE.
(G) "Retirant" means any former member who retired and is
receiving a service retirement allowance or commuted service
retirement allowance as provided in this chapter.
(H) "Beneficiary" or "beneficiaries" means the estate or a
person or persons who, as the result of the death of a
contributor or retirant, qualifies for or is receiving some right
or benefit under this chapter.
(I) "Interest," as specified in division (E) of section
3309.60 of the Revised Code, means interest at the rates
for the
respective funds and accounts as the school employees retirement
board may determine from time to time, except as follows:
(1) The rate of interest credited on employee
contributions at retirement shall be four per cent per annum,
compounded annually, to and including June 30, 1955; three per
cent per annum, compounded annually, from July 1, 1955, to and
including June 30, 1963; three and one-quarter per cent per
annum, compounded annually, from July 1,
1963, through June 30, 1966; and thereafter,
four per cent per annum compounded annually until a
change in the amount is recommended by the system's actuary
and
approved by the retirement board. Subsequent to June 30, 1959,
the retirement board shall discontinue the annual crediting of
current interest on a contributor's accumulated contributions.
Noncrediting of current interest shall not
affect the rate
of interest at retirement guaranteed under this division.
(2) In determining the reserve value for purposes of
computing the amount of the contributor's annuity, the rate of
interest used in the annuity values shall be four per cent per
annum through September 30, 1956; three per cent per annum
compounded annually from October 1, 1956, through June 30, 1963;
three and one-quarter per cent per annum compounded annually
from July 1, 1963, through June 30, 1966; and, thereafter, four per cent per
annum compounded annually until a change in
the amount is recommended by the system's actuary and
approved
by the retirement board. In the purchase of out-of-state service
credit as provided in section 3309.31 of the Revised Code, and in
the purchase of an additional annuity, as provided in section
3309.47 of the Revised Code, interest shall be computed and
credited to reserves therefor at the rate the
school
employees retirement board shall fix as regular interest thereon.
(J) "Accumulated contributions" means the sum of all
amounts credited to a contributor's account in the employees'
savings fund together with any regular interest credited thereon
at the rates approved by the retirement board prior to
retirement.
(K) "Final average salary" means the sum of the annual
compensation for the three highest years of compensation for
which contributions were made by the member, divided by three.
If the member has a partial year of contributing service in the
year in which the member terminates employment and
the partial year
is at a rate of compensation that is higher than the rate of
compensation for any one of the highest three years of annual
earnings, the board shall substitute the compensation earned for
the partial year for the compensation earned for a similar
fractional portion in the lowest of the three high years of
annual compensation before dividing by three. If a member has
less than three years of contributing membership, the final
average salary shall be the total compensation divided by the
total number of years, including any fraction of a year, of
contributing service.
(L) "Annuity" means payments for life derived from
contributions made by a contributor and paid from the annuity and
pension reserve fund as provided in this chapter. All annuities
shall be paid in twelve equal monthly installments.
(M)(1) "Pension" means annual payments for life derived
from appropriations made by an employer and paid from the
employers' trust fund or the annuity and pension reserve fund.
All pensions shall be paid in twelve equal monthly installments.
(2) "Disability retirement" means retirement as provided
in section 3309.40 of the Revised Code.
(N) "Retirement allowance" means the pension plus the
annuity.
(O)(1) "Benefit" means a payment, other than a retirement
allowance or the annuity paid under section 3309.341 of the
Revised Code, payable from the accumulated contributions of the
member or the employer, or both, under this chapter and includes
a disability allowance or disability benefit.
(2) "Disability allowance" means an allowance paid on
account of disability under section 3309.401 of the Revised Code.
(3) "Disability benefit" means a benefit paid as
disability retirement under section 3309.40 of the Revised Code,
as a disability allowance under section 3309.401 of the Revised
Code, or as a disability benefit under section 3309.35 of the
Revised Code.
(P) "Annuity reserve" means the present value, computed
upon the basis of mortality tables adopted by the
school employees retirement board, of all payments to be made on
account of any annuity, or benefit in lieu of any annuity,
granted to a retirant.
(Q) "Pension reserve" means the present value, computed
upon the basis of mortality tables adopted by the
school employees retirement board, of all payments to be made on
account of any pension, or benefit in lieu of any pension,
granted to a retirant or a beneficiary.
(R) "Year" means the year beginning the first day of July
and ending with the thirtieth day of June next following.
(S) "Local district pension system" means any school
employees' pension fund created in any school district of the
state prior to September 1, 1937.
(T) "Employer contribution" means the amount paid by an
employer as determined by the employer rate, contributions, and
funds as provided in this chapter, and shall be credited to the
employers' trust fund UNDER SECTION 3309.49 of the Revised Code.
(U) "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.
(V)(1) Except as otherwise provided in this division,
"compensation" means all salary, wages, and other earnings paid
to a contributor by reason of employment. The
salary,
wages, and other earnings shall be determined prior to
determination of the amount required to be contributed to the
employees' savings fund under section 3309.47 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 or compensation is also paid or
during which benefits are paid under this chapter;
(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 contributor or the contributor's family, or amounts paid
by the employer to the contributor 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 to or on behalf of a contributor 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 contributor 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. 103-66, 107 Stat. 472;
(g) 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;
(h) Anything of value received by the contributor that is
based on or attributable to retirement or an agreement to retire,
except that payments made on or before January 1, 1989, that are
based on or attributable to an agreement to retire shall be
included in compensation if both of the following apply:
(i) The payments are made in accordance with contract
provisions that were in effect prior to January 1, 1986.
(ii) The employer pays the retirement system an amount
specified by the retirement board equal to the additional
liability from the payments.
(3) The retirement board shall determine by rule whether
any form of earnings not enumerated in this division is to be
included in compensation, and its decision shall be final.
(W) "Disability benefit recipient" means a member who is
receiving a disability benefit.
(X) "Actuary" means an individual who satisfies all of the
following requirements:
(1) Is a member of the American academy of actuaries;
(2) Is an associate or fellow of the society of actuaries;
(3) Has a minimum of five years' experience in providing actuarial
services to public retirement plans.
Sec. 3309.03. A school employees retirement system is
hereby established for the employees as defined in section
3309.01 of the Revised Code, which shall include the several
funds created and placed under the management of the school
employees retirement board for the payment of retirement
allowances and other benefits provided in Chapter 3309. of the
Revised Code. The board may sue and be sued, plead and be
impleaded, contract and be contracted with, and do all things
necessary to carry out Chapter 3309. of the Revised Code. All of
its business shall be transacted, all of its funds invested, all
warrants for money drawn and payments made, and all of its cash, securities,
and other property shall be held in the
name of
the board, or in the name of its nominee, provided that nominees
are authorized by retirement board resolution for the purpose of
facilitating the ownership and transfer of investments SUCH
PURPOSES.
THE BOARD MAY TAKE ALL APPROPRIATE ACTION TO AVOID PAYMENT BY THE
SYSTEM OR ITS MEMBERS OF FEDERAL OR STATE INCOME TAXES ON CONTRIBUTIONS
TO THE SYSTEM OR AMOUNTS EARNED ON THOSE CONTRIBUTIONS.
Sec. 3309.031. THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL
CONSIST OF THE PLANS DESCRIBED IN SECTION 3309.18 TO 3309.70 OF THE
REVISED CODE AND THE PLAN OR PLANS ESTABLISHED UNDER
SECTION 3309.81 OF THE REVISED CODE.
Sec. 3309.04. The general administration and management of the school
employees retirement system and making effective Chapter 3309. of the Revised
Code are hereby vested in the school employees retirement board which may
adopt rules IN ACCORDANCE WITH SECTION 111.15 of the Revised Code and may authorize
its administrative officers, or committees
composed of members of said board, to act for the board in accord
ACCORDANCE with such
policies and subject to subsequent approval by the board.
The attorney general shall prescribe procedures for the adoption of rules
authorized under this chapter, consistent with the provision of section 111.15
of the Revised Code under which all rules shall be filed in order to be
effective. Such procedures shall establish methods by which notice
NOTICE of
proposed rules is SHALL BE given to interested parties and rules
adopted by
the board SHALL BE published and otherwise made available.
When it files a rule with the joint committee on agency
rule review pursuant to section 111.15 of the
Revised Code, the board shall submit to
the Ohio retirement study
council a copy of the full text of the rule, and if applicable,
a copy of the rule summary and fiscal analysis required by division
(B) of section 127.18 of the Revised Code.
All rules adopted pursuant to this chapter, prior to August 20,
1976, shall be published and
made available to interested parties by January 1, 1977.
Sec. 3309.05. The school employees retirement board shall
consist of the following seven members:
(A) The auditor of state;
(B) The attorney general;
(C) Four members, known as employee members, who shall be
members of the school employees retirement system, and who shall
be elected by ballot by the members of the system;
(D) One member, known as the retirant member, who shall be
a former member of the retirement system who is a recipient of
RESIDENT OF THIS STATE AND CURRENTLY RECEIVING AN AGE AND
service retirement benefits under this chapter and a resident of
this state or a member of the retirement system who is a
recipient of BENEFIT, a disability benefit under this
chapter and a
resident of this state, OR BENEFITS UNDER A PLAN
ESTABLISHED UNDER SECTION 3309.81 of the Revised Code. The retirant member shall be
elected by
ballot by former members of the system who are CURRENTLY receiving
AN AGE AND service
retirement benefits or BENEFIT, a disability benefit
under this chapter, OR BENEFITS UNDER A PLAN ESTABLISHED
UNDER SECTION 3309.81 of the Revised Code.
Sec. 3309.07. (A) All elections for employee or retirant
members of the school employees retirement board shall be held
under the direction of the board.
(B) Any member of the school employees retirement system,
other than a disability benefit recipient, shall be eligible for
election as an employee member of the board who has been
nominated by a petition signed by at least five hundred members,
provided that there shall be not less than twenty signers each
from at least ten counties wherein such members are employed.
The petition shall specify the term of office and position. The
name of any member so nominated shall be placed upon the ballot
by the board as a regular candidate. Other names of eligible
candidates may at any election be substituted for the regular
candidates by writing such names upon the ballot. The candidate
receiving the highest number of votes for any term as member of
the board shall be elected for such term. In any year in which
two employee member positions must be filled, the candidates who
receive the highest and second highest number of votes shall be
elected to the offices.
(C) Any service retirant or disability benefit recipient FORMER
MEMBER
of the school employees retirement system DESCRIBED IN DIVISION
(D) OF SECTION 3309.05 of the Revised Code is eligible for
election as the retirant member of the board
TO REPRESENT FORMER MEMBERS CURRENTLY RECEIVING AN AGE AND SERVICE
RETIREMENT BENEFIT, A DISABILITY BENEFIT, OR BENEFITS UNDER A PLAN
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE,
provided that such
person has been nominated by a petition signed by at least one
hundred fifty former members of the system who are CURRENTLY receiving
AN AGE AND service retirement benefits or BENEFIT,
a disability benefit, OR BENEFITS under this
chapter A PLAN ESTABLISHED UNDER SECTION 3309.81 of the Revised Code. The
petition shall contain the signatures of at least
ten such retirants or disability benefit recipients from each of
at least five counties wherein service retirants or disability
benefit recipients under OF BENEFITS FROM this system
reside. The petition shall
specify the term of office and position. The name of any
retirant or disability benefit recipient PERSON so nominated
shall be
placed upon the ballot by the board as a regular candidate.
Other names of eligible candidates may at any election be
substituted for the regular candidates by writing such names upon
the ballot. The candidate receiving the highest number of votes
for any term as member of the board shall be elected for such
term.
No employee member of the board who retires while a member
of the board shall be eligible to become a retirant member of the
board for three years after the date of the member's retirement.
Sec. 3309.12. The treasurer of state shall be the
custodian of the funds of the school employees retirement system,
and all disbursements therefrom shall be paid by him THE TREASURER
OF STATE only upon
instruments duly authorized by the school employees retirement
board and bearing the signatures of the board; provided, that
such instruments may bear the names of the board members printed
thereon and the signatures of the president and secretary of the
board. The signatures of the president and secretary may be
affixed through the use of a mechanical check signing device.
The treasurer of state shall give a separate and additional
bond in such amount as is fixed by the governor and with sureties
selected by the board and approved by the governor, conditioned
for the faithful performance of the duties of the treasurer of
state as custodian of the funds of the system. Such bonds shall
be deposited with the secretary of state and kept in his THE
TREASURER OF STATE'S office.
The governor may require the treasurer of state to give other and
additional bonds, as the funds of the system increase, in such
amounts and at such times as are fixed by the governor, which
additional bonds shall be conditioned, filed, and obtained as is
provided for the original bond of the treasurer of state covering
the funds of the system. The premium on all bonds shall be paid
by the board.
The treasurer of state shall deposit any portion of the
funds of the system not needed for immediate use in the same
manner as state funds are deposited, and subject to all
provisions of law with respect to the deposit of state funds, by
the treasurer of state, and all interest earned by such portion
of the retirement funds as may be deposited by the treasurer of
state shall be collected by him and placed to the credit of the
board.
THE TREASURER OF THE STATE SHALL FURNISH ANNUALLY TO THE SCHOOL EMPLOYEES
RETIREMENT SYSTEM A
SWORN STATEMENT OF THE AMOUNT OF THE FUNDS IN THE TREASURERS' CUSTODY
BELONGING TO THE SCHOOL EMPLOYEES RETIREMENT
SYSTEM.
Sec. 3309.15. (A) The members of the school employees retirement board
shall be the trustees of the funds created by section
3309.60 of the Revised Code. The board shall have full power to invest the
funds. The board and other fiduciaries
shall discharge their duties with respect to the funds solely in
the interest of the participants and beneficiaries; for the
exclusive purpose of providing benefits to participants and their
beneficiaries and defraying reasonable expenses of administering
the school employees retirement system; with care, skill, prudence, and
diligence under the
circumstances then prevailing that a prudent person acting in a
like capacity and familiar with such matters would use in the
conduct of an enterprise of a like character and with like aims;
and by diversifying the investments of the system so as to
minimize the risk of large losses, unless under the circumstances
it is clearly prudent not to do so.
To facilitate investment of the funds, the THE board may
establish a
partnership, trust, limited liability company, corporation, including a
corporation exempt from taxation under the Internal Revenue
Code, 100 Stat. 2085, 26
U.S.C.A. 1, as amended, or any
other legal entity authorized to transact business in this state.
(B) In exercising its fiduciary responsibility with
respect to the investment of the funds, it shall be the intent of
the board to give consideration to investments that enhance the
general welfare of the state and its citizens where the
investments offer quality, return, and safety comparable to
other
investments currently available to the board. In fulfilling this
intent, equal consideration shall also be given to investments
otherwise qualifying under this section that involve minority
owned and controlled firms and firms owned and controlled by
women, either alone or in joint venture with other firms.
The board shall adopt, in regular meeting, policies,
objectives,
or criteria for the operation of the investment program that include asset
allocation targets and ranges, risk factors, asset class benchmarks, time
horizons, total return objectives, and performance evaluation guidelines.
In adopting policies and criteria for the selection of agents with
whom the board may contract for the administration of the
funds, the board shall give equal consideration to minority owned and
controlled firms, firms owned and controlled by women, and
ventures involving minority owned and controlled firms and firms
owned and controlled by women that otherwise meet the policies and
criteria
established by the board. Amendments and additions to the
policies and criteria shall be adopted in regular meeting. The board
shall publish its
policies, objectives, and criteria under this provision no less
often than annually and shall
make copies available to interested parties.
When reporting on the performance of investments, the board shall comply
with the performance presentation standards established by the association for
investment management and research.
(C) All evidences of title of investments purchased by the
board under this section shall
be delivered to the treasurer
of state, who is hereby designated as custodian thereof, or to
the treasurer of state's authorized agent, and
the treasurer of state or the agent shall collect principal, interest,
dividends, and distributions that become due and
payable and place the same when so collected into the
custodial funds. Evidences of title of the
investments may be deposited by the treasurer of
state for safekeeping with an authorized agent, selected by the
treasurer of state, who is a qualified trustee under section
135.18 of the Revised Code. The treasurer of state shall pay for
the investments purchased by the board pending receipt of the evidence
of title
of the investments by the treasurer of state or to the
treasurer of state's authorized agent, and on
receipt of written or electronic instructions from the board
or the board's designated agent authorizing the purchase. The
board may sell any investments held by the board, and the treasurer of
state or the treasurer
of state's authorized agent shall accept payment from the purchaser
and deliver evidence of title of the investment to the
purchaser on receipt of written or electronic instructions from the board or
the board's designated agent authorizing the sale, and pending receipt of the
moneys for the investments. The amount received shall be placed into the
custodial funds. The board and the treasurer of
state may enter into agreements to establish procedures for the purchase and
sale of investments under this division and the custody of the investment.
(D) No purchase or sale of any investment shall be
made under this section except as authorized by the school
employees retirement board.
(E) Any statement of financial position distributed by the
board shall include the fair value, as of the statement
date,
of all investments held by the board under this section.
Sec. 3309.17. The proper officers of each taxing district issuing the bonds
provided for in section 3309.16 of the Revised Code shall, without additional
procedure or legislation on their part, comply with sections 3309.01 to
3309.68, inclusive, of the Revised Code THIS CHAPTER, except that
the proper accounting
officer of such taxing district and the secretary of its sinking fund shall
make and keep a detailed record of any such changes required by the school
employees retirement board. The board shall not change the date of maturity
of any part of the principal or interest of any bond issue, nor shall it
require a bond of any issue to be of a larger denomination, nor any partial
payment of principal to be of greater amount than the aggregate amount of such
issue falling due at any date.
Sec. 3309.22. (A) The treasurer of state shall furnish
annually to the school employees retirement board a sworn
statement of the amount of the funds in the treasurer's
custody belonging to
the school employees retirement system.
(B)(1) As used in this division, "personal history record"
means information maintained by the board on a member, former
member, contributor, former contributor, retirant, or beneficiary
that includes the address, telephone number, social security
number, record of contributions, correspondence with the system,
and other information the board determines to be confidential.
(2) The records of the board shall be open to public
inspection, except for the following, which shall be excluded,
except with the written authorization of the individual
concerned:
(a) The individual's statement of previous service and
other information as provided for in section 3309.28 of the
Revised Code;
(b) Any information identifying by name and address the
amount of a monthly allowance or benefit paid to the individual;
(c) The individual's personal history record.
(C)(B) All medical reports and recommendations required by
the system are privileged except that copies of such medical
reports or recommendations shall be made available to the
personal physician, attorney, or authorized agent of the
individual concerned upon written release received from the
individual or the individual's agent, or when necessary
for the proper administration of the
fund, to the board assigned physician.
(D)(C) Any person who is a contributor of the system shall be
furnished, on written request, with a statement of the
amount to the credit of the person's account. The board need not
answer more than one such request of a person in any one year.
(E)(D) Notwithstanding the exceptions to public inspection in
division (B)(A)(2) of this section, the board may furnish the
following information:
(1) If a member, former member, contributor, former
contributor, or retirant is subject to an order issued under section 2907.15
of the Revised Code or is convicted of or pleads guilty to a
violation of section 2921.41 of the Revised Code, on written
request of a prosecutor as defined in section 2935.01 of the
Revised Code, the board shall furnish to the prosecutor the
information requested from the individual's personal history
record.
(2) Pursuant to a court or administrative order issued
under section 3111.23 or 3113.21 of the Revised Code, the board
shall furnish to a court or child support enforcement agency the
information required under that section.
(3) At the written request of any person, the board shall
provide to the person a list of the names and addresses of
members, former members, retirants, contributors, former
contributors, or beneficiaries. The costs of compiling, copying,
and mailing the list shall be paid by such person.
(4) Within fourteen days after receiving from the director
of job and family services a list of the names and social security
numbers
of recipients of public assistance pursuant to section 5101.181
of the Revised Code, the board shall inform the auditor of state
of the name, current or most recent employer address, and social
security number of each contributor whose name and social
security number are the same as that of a person whose name or
social security number was submitted by the director. The board
and its employees shall, except for purposes of furnishing the
auditor of state with information required by this section,
preserve the confidentiality of recipients of public assistance
in compliance with division (A) of section 5101.181 of the
Revised Code.
(F)(E) A statement that contains information obtained from
the system's records that is signed by an officer of the
retirement system and to which the system's official seal is
affixed, or copies of the system's records to which the signature
and seal are attached, shall be received as true copies of the
system's records in any court or before any officer of this
state.
Sec. 3309.25. ON RECEIPT OF NOTICE UNDER SECTION 3309.55 of the Revised Code OF THE
EMPLOYMENT OF A NEW EMPLOYEE, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM
SHALL INFORM THE EMPLOYEE OF THE REQUIREMENTS OF SECTION 3309.251 of the Revised Code.
Sec. 3309.251. (A) EXCEPT AS PROVIDED IN DIVISION (D)
OF
THIS SECTION, AN INDIVIDUAL WHO BECOMES A MEMBER OF THE
SCHOOL EMPLOYEES RETIREMENT SYSTEM
ON OR AFTER THE DATE ON WHICH THE SCHOOL EMPLOYEES RETIREMENT BOARD
ESTABLISHES
A PLAN UNDER SECTION 3309.81
OF THE REVISED CODE SHALL MAKE AN ELECTION UNDER THIS
SECTION. NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DATE ON WHICH
EMPLOYMENT BEGINS, THE INDIVIDUAL SHALL ELECT TO PARTICIPATE EITHER IN THE
PLAN DESCRIBED IN SECTIONS 3309.18 TO 3309.70 OF THE REVISED
CODE
OR ONE OF THE PLANS ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED CODE. IF A FORM EVIDENCING AN ELECTION
UNDER THIS SECTION IS NOT ON FILE WITH THE EMPLOYER AT THE END OF THE
ONE-HUNDRED-EIGHTY-DAY PERIOD,
THE INDIVIDUAL IS DEEMED TO HAVE
ELECTED TO
PARTICIPATE IN THE PLAN DESCRIBED IN SECTIONS 3309.18 TO 3309.70
OF THE REVISED CODE.
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN WRITING ON A
FORM PROVIDED BY THE RETIREMENT SYSTEM AND FILED WITH THE
EMPLOYER'S PERSONNEL OFFICER. NOT LATER THAN
TEN DAYS
AFTER RECEIVING THE FORM EVIDENCING THE ELECTION, THE EMPLOYER SHALL TRANSMIT
TO THE SYSTEM A COPY THAT INCLUDES A STATEMENT CERTIFYING
THAT IT IS A TRUE AND ACCURATE COPY OF THE ORIGINAL.
(C) AN ELECTION UNDER THIS SECTION SHALL TAKE EFFECT ON THE DATE
EMPLOYMENT BEGAN AND IS IRREVOCABLE ON RECEIPT BY THE EMPLOYER.
(D) AN INDIVIDUAL IS INELIGIBLE TO MAKE AN ELECTION UNDER THIS
SECTION IF EITHER OF THE FOLLOWING APPLIES:
(1) AT THE TIME EMPLOYMENT BEGINS, THE INDIVIDUAL IS ALREADY A
MEMBER OR CONTRIBUTOR PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS
3309.18 TO 3309.70 OF THE REVISED CODE OR AN SERS
RETIRANT, AS DEFINED IN SECTION 3309.341 of the Revised Code.
(2) AN ELECTION TO PARTICIPATE IN AN ALTERNATIVE RETIREMENT PLAN
UNDER SECTION 3305.05 OF THE REVISED CODE IS IN EFFECT FOR
EMPLOYMENT COVERED BY THE SYSTEM.
Sec. 3309.252. (A) A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT
SYSTEM, WHO, AS OF THE
LAST DAY OF THE MONTH IMMEDIATELY PRECEDING THE DATE ON WHICH THE
SYSTEM ESTABLISHES A PLAN UNDER SECTION 3309.81
OF THE REVISED CODE, HAS LESS THAN FIVE YEARS OF TOTAL
SERVICE CREDIT IS ELIGIBLE TO MAKE AN ELECTION UNDER THIS SECTION.
NOT LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DAY THE
BOARD FIRST ESTABLISHES ONE OR MORE PLANS UNDER SECTION 3309.81
OF THE REVISED CODE, AN ELIGIBLE MEMBER MAY ELECT TO
PARTICIPATE IN
A PLAN ESTABLISHED UNDER THAT SECTION. IF AN ELECTION IS NOT MADE, A MEMBER
TO WHOM THIS SECTION APPLIES
IS DEEMED TO HAVE ELECTED TO CONTINUE PARTICIPATING IN THE PLAN
DESCRIBED IN SECTIONS 3309.18 TO 3309.70 OF THE REVISED
CODE.
(B) AN ELECTION UNDER THIS SECTION SHALL BE MADE IN WRITING ON A
FORM PROVIDED BY THE SYSTEM AND FILED WITH THE SYSTEM.
(C) ON RECEIPT OF AN ELECTION UNDER THIS SECTION, THE SYSTEM
SHALL DO BOTH OF THE FOLLOWING:
(1) CREDIT TO THE ACCOUNT OF THE MEMBER IN THE DEFINED
CONTRIBUTION FUND THE ACCUMULATED CONTRIBUTIONS STANDING TO THE MEMBER'S
CREDIT IN THE EMPLOYEES' SAVINGS FUND;
(2) CANCEL ALL SERVICE CREDIT AND ELIGIBILITY FOR ANY PAYMENT,
BENEFIT, OR RIGHT UNDER THE PLAN DESCRIBED IN SECTIONS 3309.18 TO 3309.70
OF THE REVISED CODE.
(D) AN
ELECTION UNDER THIS SECTION SHALL BE IRREVOCABLE ON RECEIPT BY THE
SYSTEM.
Sec. 3309.253. A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT SYSTEM
WHO ELECTS TO PARTICIPATE IN A PLAN ESTABLISHED UNDER SECTION 3309.81
OF THE REVISED
CODE SHALL BE INELIGIBLE FOR ANY BENEFIT OR PAYMENT UNDER
SECTIONS 3309.18 TO 3309.70 OF THE REVISED CODE AND
SHALL BE FOREVER
BARRED FROM CLAIMING OR PURCHASING SERVICE CREDIT WITH ANY
STATE RETIREMENT SYSTEM, AS DEFINED IN SECTION 145.30 OF THE
REVISED CODE, FOR SERVICE COVERED BY THE
ELECTION.
Sec. 3309.341. (A) As used in this section:
(1) "SERS retirant" means any person who is receiving a
retirement allowance from the school employees retirement system
under section 3309.36, 3309.38, or 3309.381 of the Revised Code OR ANY
BENEFIT PAID UNDER A PLAN ESTABLISHED UNDER SECTION 3309.81 of the Revised Code.
(2) "Other system retirant" means a member or former
member of the public employees retirement system, Ohio police
and fire pension fund, state teachers retirement
system, state highway patrol retirement system, or Cincinnati
retirement system who is receiving age and service or commuted
age and service retirement, or a disability benefit from a system
of which the retirant is a member or former member.
(B)(1) An SERS retirant or other system retirant may be
employed by a public employer. If so employed, the SERS retirant
or other system retirant shall contribute to the school employees
retirement system in accordance with section 3309.47 of the
Revised Code, and the employer shall make contributions in
accordance with section 3309.49 of the Revised Code.
(2) An employer that employs an SERS retirant or other
system retirant shall notify the retirement board of the
employment not later than the end of the month in which the
employment commences. On receipt of notice from an employer that
a person who is an other system retirant has been employed, the
school employees retirement system shall notify the state
retirement system of which the other system retirant was a member
of such employment.
(C) An SERS retirant or other system retirant who has
received a retirement allowance or disability benefit for
less
than two months when employment subject to this section commences
shall forfeit the retirement allowance or disability benefit
for
the period that begins on the date the employment commences and
ends on the date that is two months after the date on which the
retirement allowance or disability benefit commenced. Service
and contributions for that period shall not be included in the
calculation of any benefits payable to the SERS retirant or other
system retirant, and those contributions shall be refunded on
death or termination of the employment.
(D) On receipt of notice from the Ohio police and
fire pension fund, public employees retirement
system,
or state teachers retirement system of the re-employment of an
SERS retirant, the school employees retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the SERS
retirant in accordance with section 145.38, 742.26, or
3307.35 of the Revised Code.
(E)(1) On termination of employment under this section, an
SERS retirant or other system retirant may file an application with
the school employees retirement system for a benefit under this
division, which shall consist of a single life annuity having a
reserve equal to the amount of the retirant's accumulated
contributions for
the period of employment and an equal amount of the employer's
contributions, plus interest credited to the date of retirement
at the rate provided in division (I)(2) of section 3309.01 of the
Revised Code. The SERS retirant or other system retirant shall
elect either to receive the benefit as a monthly annuity for
life or a lump-sum payment discounted to the present value using
the current actuarial assumption rate of interest, except that if
the monthly annuity would be less than twenty-five dollars
per
month, the retirant shall receive a lump-sum payment.
(2) A benefit payable under this division shall commence
on the first day of the month after the latest of the following:
(a) The last day for which compensation for employment
subject to this section was paid;
(b) Attainment by the SERS retirant or other system
retirant of age sixty-five;
(c) If the SERS retirant or other system retirant was
previously employed under this section and is receiving or
previously received a benefit under this division, completion of
a period of twelve months since the effective date of that
benefit.
(3) An SERS retirant or other system retirant subject to
this section is not a member of the school employees retirement
system; does not have any of the rights, privileges, or
obligations of membership, except as specified in this section;
and is not eligible to receive health, medical, hospital, or
surgical benefits under section 3309.69 of the Revised Code for
employment subject to this section. No amount received under
this division shall be included in determining an additional
benefit under section 3309.374 of the Revised Code or any other
post-retirement benefits.
(F)(1) If an SERS retirant or other system retirant dies
while employed in employment subject to this section, a lump-sum
payment calculated in accordance with division (E)(1) of this
section shall be paid to the beneficiary under division (H) of
this section.
(2) If at the time of death an SERS retirant or other
system retirant receiving a monthly annuity has received less
than the retirant would have received as a lump-sum
payment,
the difference
between the amount received and the amount that
would have been
received as a lump-sum payment shall be paid to the
retirant's beneficiary
under division (H) of this section.
(G) If the disability benefit of an other system retirant
employed under this section is terminated, the retirant shall
become a
member of the school employees retirement system, effective on
the first day of the month next following the termination, with
all the rights, privileges, and obligations of membership. If
the retirant, after the termination of
the
disability benefit,
earns two years of service credit under this retirement system or
under the public employees retirement system, Ohio police and
fire pension fund, state teachers
retirement
system, or state highway patrol retirement system, the
retirant's prior
contributions as an other system retirant under this section
shall be included in the retirant's total service credit as
a school
employees retirement system member, and the retirant shall
forfeit all
rights and benefits of this section. Not more than one year of
credit may be given for any period of twelve months.
(H) An SERS retirant or other system retirant employed
under this section may designate one or more persons as
beneficiary to receive any benefits payable under this section
due to death. The designation shall be in writing duly
executed on a form provided by the school employees retirement
board, signed by the SERS retirant or other system retirant, and
filed with the board prior to death. The last designation of
a beneficiary revokes all previous designations. The SERS
retirant's or other system retirant's marriage, divorce, marriage
dissolution, legal separation, withdrawal of account, birth of
the retirant's child, or adoption of a child revokes all
previous
designations. If there is no designated beneficiary, the
beneficiary is the beneficiary designated under division (D) of
section 3309.44 of the Revised Code. If any benefit payable
under this section due to the death of an SERS retirant or other
system retirant is not claimed by a beneficiary within five years
after the death, the amount payable shall be transferred to the
guarantee fund and thereafter paid to the beneficiary or the
estate of the SERS retirant or other system retirant on
application to the board.
(I) This section does not affect the receipt of benefits
by or eligibility for benefits of any person who on August 29,
1976, was receiving a disability benefit or service retirement
pension or allowance from a state or municipal retirement system
in Ohio and was a member of any other state or municipal
retirement system of this state.
(J) The school employees retirement board may adopt rules
to carry out 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:
(1) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at that time;
(2) A pension of equivalent amount;
(3) An additional pension of forty dollars multiplied by
the number of years of such prior service credit;
(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), (2), and
(3) of this section.
(B)(1) When a member retires on service retirement, the
member's
allowance when computed as an annual single lifetime allowance as
provided in divisions (A)(1), (2),
(3), and (4) of this section and
section 3309.38 of the Revised Code, based upon attained age
sixty-five or thirty years of total service credit, shall be
not less than
the greater of the amounts determined by multiplying the
member's total
service credit by the following:
(a) Eighty-six dollars;
(b) Two and one-tenth TWO-TENTHS per
cent of the member's final average salary for each of the
first thirty years of service credit or fraction thereof plus two and one-half
per cent of the member's final average salary for each subsequent year of
service credit or fraction thereof.
(2) The
annual
single lifetime allowance determined under division
(B)(1) of this section shall be adjusted by the greater
percentage shown in the
following schedule opposite the member's attained age or years of
Ohio service credit:
| Years of | Per Cent |
Attained or | Ohio Service | of |
Age | Credit | Base Amount |
58 | 25 | 75% |
59 | 26 | 80 |
60 | 27 | 85 |
61 | | 88 |
| 28 | 90 |
62 | | 91 |
63 | | 94 |
| 29 | 95 |
64 | | 97 |
65 | 30 or more | 100 |
Members shall vest the 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 |
(3) The annual single lifetime allowance which a retirant
shall receive under this division shall not exceed the lesser of
ninety ONE HUNDRED per cent of the member's final average salary
or the
limit
established by section 415 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(C) Retirement allowances determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.374. (A) Beginning April 1, 1971, and each year thereafter, the
board of the school employees retirement system shall determine
the average percentage change in the consumer price index
prepared by the United States bureau of labor statistics (U.S.
City Average for Urban Wage Earners and Clerical Workers: "All
Items 1982-84=100") for the twelve-calendar-month period
prior to
the first day of January over the next preceding
twelve-calendar-month period, as reported by the bureau.
Upon a determination by the board in any year that the
change in the consumer price index is an
increase or that the change plus the accumulation described in division
(B) of this section is an increase, the board shall increase each
allowance, pension, or benefit payable under this chapter by a percentage
equal to the percentage increase in the consumer price index or to that
increase plus the accumulation, except that the increase shall not exceed
three per cent and no allowance, pension, or benefit
shall exceed the limit established by section 415 of the
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,
as amended.
The first increase is payable to all persons becoming
eligible after June 30, 1971, upon such persons receiving an
allowance, pension, or benefit for twelve months.
The increased amount is payable for the ensuing
twelve-month period or until the next increase is granted under
this section, whichever is later. Subsequent increases shall be
determined from the date of the first increase paid to the former
member in the case of an allowance being paid a beneficiary under
an option, or from the date of the first increase to the survivor
first receiving an allowance or benefit in the case of an
allowance or benefit being paid to the subsequent survivors of
the former member.
The date of the first increase under this section
becomes the anniversary date for any future increases.
The allowance or benefit used in the first calculation of
an increase under this section shall remain as the base for all
future increases, unless a new base is established. ANY INCREASE RESULTING
FROM PAYMENT OF A RECALCULATED BENEFIT UNDER SECTION 3 OF
SUBSTITUTE SENATE BILL NO. 270 OF THE
123rd
GENERAL ASSEMBLY SHALL BE INCLUDED IN THE CALCULATION OF
FUTURE INCREASES UNDER THIS SECTION.
(B) Any percentage of change in the consumer price index in any
year that is in excess of three per cent shall be accumulated and used to
determine increases under this section in subsequent years. Any percentage of
change in the consumer price index accumulated by an
eligible person prior to the effective date of this amendment
SEPTEMBER 27, 1996, shall be used in
determining any future increases under this section.
(C) The board shall make all rules necessary to carry out this
section.
Sec. 3309.381. (A) A recipient of a disability allowance
under section 3309.401 of the Revised Code who is subject to
division (C)(3) of that section may make application for service
retirement under this section. Retirement shall be effective on
the first day of the first month following the last day for which
the disability allowance is paid.
(B) The annual allowance payable under this section shall
consist of the sum of the amounts determined under divisions
(B)(1) and (2) of this section:
(1) The greater of the following:
(a) An allowance calculated as provided in section 3309.36
of the Revised Code, excluding any period during which the
applicant received a disability benefit under section 3309.401 of
the Revised Code;
(b) An allowance calculated by multiplying the applicant's
total service credit, including service credit for the last
continuous period during which he THE APPLICANT received a
disability benefit
under section 3309.401 of the Revised Code, by two and one-tenth
TWO-TENTHS
per cent of his THE APPLICANT'S final average salary, except
that the allowance
shall not exceed forty-five per cent of the applicant's final
average salary.
(2) An amount equal to the additional allowance the
recipient would receive under section 3309.374 of the Revised
Code, plus any other additional amount he THE RECIPIENT would
receive under
this chapter, had he THE RECIPIENT retired under section 3309.36
of the Revised
Code effective on the effective date of his THE RECIPIENT'S most
recent
continuous period of receipt of a disability benefit under
section 3309.401 of the Revised Code.
(C) The allowance calculated under division (B) of this
section, exclusive of any amount added under division (B)(2) of
this section based on section 3309.374 of the Revised Code, shall
be the base for all future additional allowances under section
3309.374 of the Revised Code.
The anniversary date for future additional allowances under
section 3309.374 of the Revised Code shall be the effective date
of the recipient's most recent continuous period of receipt of a
disability benefit under section 3309.401 of the Revised Code.
(D) The retirement allowance determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.40. A member who has elected disability coverage
under this section, has not attained age sixty, and is determined
by the school employees retirement board under section 3309.39 of
the Revised Code to qualify for a disability beenfit BENEFIT
shall be
retired on disability under this section.
Upon disability retirement, a member shall receive an
annual amount that shall consist of:
(A) An annuity having a reserve equal to the amount of the
member's accumulated contributions;
(B) A pension that shall be the difference between his THE
MEMBER'S
annuity and an annual amount determined by multiplying the total
service credit of such member, and in addition thereto, the
number of years and fractions thereof between the effective date
of his THE MEMBER'S disability retirement and attained age
sixty, assuming
continuous service, by eighty-six dollars, or by two and
one-tenth TWO-TENTHS per cent of his THE MEMBER'S
final average salary,
whichever is
greater.
Where the member is not receiving a disability benefit
under section 3309.35 of the Revised Code and is receiving a
disability benefit from either the public employees retirement
system or the state teachers retirement system, then such member
shall not be eligible for service credit based upon the number of
years and fractions thereof between the effective date of
disability and attained age sixty as provided for in this
division.
Such disability retirement shall not be less than thirty
per cent nor more than seventy-five per cent of the member's
final average salary, except that it shall not exceed any limit
to which the retirement system is subject under section 415 of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
415, as amended.
The school employees retirement board is the final
authority in determining the eligibility of a member for such
form of retirement.
Sec. 3309.401. (A) A member with disability coverage
under this section who is determined by the school employees
retirement board under section 3309.39 of the Revised Code to
qualify for a disability benefit shall receive a disability
allowance under this section. The allowance shall be an annual
amount equal to the greater of the following:
(1) Forty-five per cent of the member's final average
salary;
(2) The member's total service credit multiplied by two
and one-tenth TWO-TENTHS per cent of his THE
MEMBER'S final average salary,
not exceeding
sixty per cent of his THE MEMBER'S final average salary.
(B) Sufficient reserves for payment of the disability
allowance shall be transferred to the annuity and pension reserve
fund from the employers' accumulation fund. The accumulated
contributions of the member shall remain in the employees'
savings fund. No part of the allowance paid under this section
shall be charged against the member's accumulated contributions.
(C) A disability allowance paid under this section shall
terminate at the earliest of the following:
(1) The effective date of service retirement under section
3309.35, 3309.36, or 3309.38 of the Revised Code;
(2) The date the allowance is terminated under section
3309.41 of the Revised Code;
(3) The later of the last day of the month in which the
recipient attains age sixty-five, or the last day of the month in
which the benefit period ends as follows:
Attained Age at Effective Date
| |
of Disability Allowance
|
Benefit Period
|
60 or 61 | 60 months |
62 or 63 | 48 months |
64 or 65 | 36 months |
66, 67, or 68 | 24 months |
69 or older | 12 months |
Sec. 3309.45. Except as provided in division (C)(1) of
this section, in lieu of accepting the payment of the
accumulated account of a member who dies before service
retirement, the beneficiary, as determined in section 3309.44 of
the Revised Code, may elect to forfeit the accumulated account
and to substitute certain other benefits either under division
(A) or (B) of this section.
(A) If a deceased member was eligible for a service
retirement allowance as provided in section 3309.36, 3309.38, or
3309.381 of the Revised Code, a surviving spouse or other sole
dependent beneficiary
may elect to receive a monthly benefit
computed as the joint-survivor allowance designated as "plan D"
in section 3309.46 of the Revised Code, which the member would
have received had the member retired on the last day of the month of
death and had the member at that time selected such joint-survivor
plan. Payment shall begin with the month subsequent to the member's
death.
(B) If the deceased member had completed at least one and
one-half years of credit for Ohio service, with at least
one-quarter year of Ohio contributing service credit within the
two and one-half years prior to the date of death, or was
receiving at the time of death a disability benefit as provided
in section 3309.40 or 3309.401 of the Revised Code, qualified survivors
may WHO elect to receive
monthly benefits, SHALL RECEIVE THE GREATER OF THE BENEFITS
provided in divisions DIVISION (B)(1) and (5)(a)
OR (b) AS ALLOCATED IN ACCORDANCE WITH DIVISION
(B)(6) of this section.
(1)(a) Number | | |
of Qualified | | |
| |
Or
|
survivors |
Annual Benefit as a Per
|
Monthly Benefit
|
affecting |
Cent of Decedent's Final
|
shall not be
|
the benefit |
Average Salary
|
less than
|
1 | 25% | $ 96 |
2 | 40 | 186 |
3 | 50 | 236 |
4 | 55 | 236 |
5 or more | 60 | 236 |
(b) YEARS OF SERVICE | ANNUAL BENEFIT AS A PER
CENT OF
MEMBER'S FINAL AVERAGE SALARY |
20 | 29% |
21 | 33 |
22 | 37 |
23 | 41 |
24 | 45 |
25 | 48 |
26 | 51 |
27 | 54 |
28 | 57 |
(2) THE FINAL AVERAGE SALARY USED IN THE CALCULATION OF A BENEFIT
PAYABLE PURSUANT TO THIS DIVISION TO A QUALIFIED SURVIVOR OF A
DISABILITY BENEFIT RECIPIENT SHALL BE ADJUSTED FOR EACH YEAR BETWEEN THE
DISABILITY BENEFIT'S EFFECTIVE DATE AND THE RECIPIENT'S DATE OF
DEATH BY THE LESSER OF THREE PER CENT OR THE ACTUAL AVERAGE
PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX PREPARED BY THE
UNITED
STATES BUREAU OF LABOR STATISTICS
(U.S.
CITY
AVERAGE FOR
URBAN WAGE EARNERS AND
CLERICAL WORKERS: "ALL ITEMS
1982-84=100").
(3)
Benefits shall begin as qualified survivors meet
eligibility requirements as follows:
(a) A qualified spouse is the surviving spouse of the
deceased member who is age
sixty-two, or REGARDLESS OF
age fifty if the deceased member had ten or more years of Ohio
service credit, or regardless of age if caring for a
surviving
child, or regardless of age if adjudged physically or mentally
incompetent.
(b) A qualified child is any
unmarried child of
the
deceased member WHO HAS NEVER BEEN MARRIED AND TO WHOM ONE OF THE FOLLOWING
APPLIES:
(i) IS under age eighteen, or under age twenty-two if
the child is attending an institution of learning or training
pursuant to a program designed to complete in each school year
the equivalent of at least two-thirds of the full-time curriculum
requirements of such institution and as further determined by
board policy, or regardless;
(ii) REGARDLESS of age if, IS adjudged
physically or
mentally incompetent
IF THE INCOMPETENCE EXISTED PRIOR TO THE MEMBER'S
DEATH AND PRIOR TO THE CHILD ATTAINING AGE EIGHTEEN, OR AGE TWENTY-TWO IF
ATTENDING AN INSTITUTION DESCRIBED IN DIVISION
(B)(2)(b)(i) OF THIS SECTION.
(c) A qualified parent is a dependent parent aged sixty-five or
older.
(3)(4) "Physically or mentally incompetent" as used in this
section may be determined by a court of jurisdiction, or by a
physician appointed by the retirement board. Incapability of
earning a living because of a physically or mentally disabling
condition shall meet the qualifications of this division.
(4)(5) Benefits to a qualified survivor shall terminate
upon
a first marriage, abandonment, adoption, or during
active
military service.
Benefits to a deceased member's surviving spouse that were terminated
under a former version of this section that required termination due to
remarriage and were not resumed prior to the effective date of this amendment
shall resume on the first day of the month immediately following receipt by
the board of an application on a form provided by the board.
Upon the death of any subsequent
spouse who was a member of the public employees retirement system, state
teachers retirement system, or school employees retirement
system, the surviving spouse of such member may elect to continue
receiving benefits under this division, or to receive survivor's
benefits, based upon the subsequent spouse's membership in one or
more of the systems, for which such surviving spouse is eligible
under this section or section 145.45 or 3307.66 of the
Revised
Code. If the surviving spouse elects to continue receiving
benefits under this division, such election shall not preclude
the payment of benefits under this division to any other
qualified survivor.
Benefits shall begin or resume on the first day of the
month following the attainment of eligibility and shall terminate
on the first day of the month following loss of eligibility.
(5) Benefits (6)(a) IF A BENEFIT IS PAYABLE UNDER
DIVISION (B)(1)(a) OF THIS SECTION, BENEFITS
to a qualified spouse shall be paid in the
amount determined for the first qualifying survivor in
division
(B)(1)(a) of this section, but shall not be less than one hundred
six dollars per month if the deceased member had ten or more
years of Ohio service credit. All other qualifying
survivors
shall share equally in the benefit or remaining portion thereof.
(6)(b)
ALL QUALIFYING SURVIVORS SHALL SHARE EQUALLY IN A
BENEFIT PAYABLE UNDER DIVISION (B)(1)(b) OF THIS
SECTION, EXCEPT THAT IF THERE IS A SURVIVING SPOUSE THE SURVIVING SPOUSE SHALL
RECEIVE NO LESS THAN THE GREATER OF THE AMOUNT DETERMINED FOR THE FIRST
QUALIFYING SURVIVOR IN
DIVISION (B)(1)(a) OF THIS SECTION
OR
ONE HUNDRED SIX DOLLARS PER MONTH.
(7) The beneficiary of a member who is also a member of
the public employees retirement system, or of the state teachers
retirement system, must forfeit the member's accumulated
contributions in those systems, if the beneficiary
takes
a
survivor benefit. Such benefit shall be exclusively governed by
section 3309.35 of the Revised Code.
(C)(1) Regardless
of whether the member
is survived by a spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member
described in division (A) or (B) of
this section has one or more qualified children, all persons who are qualified
survivors under Division
(B) of this section
shall receive
monthly benefits as provided in division
(B) of this section.
If, after determining the monthly benefits to be paid under division
(B) of this section, the system receives notice that there is a
qualified survivor who was not considered when the determination was made, the
system shall, notwithstanding section 3309.661 of the Revised
Code, recalculate the monthly benefits with that qualified survivor
included, even if the benefits to qualified survivors already receiving
benefits are reduced as a result. The benefits shall be calculated as if the
qualified survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified survivors
effective on the first day of the first month following the system's receipt
of the notice.
If the retirement system did not receive notice that a
deceased member has one or more qualified children prior
to making payment under
section 3309.44 of the
Revised
Code to a beneficiary as
determined by the retirement system, the payment is a full
discharge and release of the system from any future claims under
this section or section 3309.44 of the Revised Code.
(2) If benefits under division (C)(1)
of this section to all persons, or to all persons other than a surviving
spouse
or other sole beneficiary, terminate, there are no children under the age of
twenty-two years, and the surviving spouse or
beneficiary qualifies for benefits under division
(A) of this section, the surviving spouse or
beneficiary may elect to receive benefits under division
(A) of this section. Benefits shall be effective on the first day
of the month
following receipt by the board of an application for benefits
under division (A) of this
section.
(D) If the survivor benefits due and paid under this
section are in a total amount less than the member's accumulated
account that was transferred from the employees' savings fund,
the state teachers retirement fund, and the public employees
retirement fund to the survivors' benefit fund, then the
difference between the total amount of the benefits paid shall be
paid to the beneficiary under section 3309.44 of the Revised
Code.
Sec. 3309.47. Each school employees retirement system
contributor shall contribute eight per cent of his THE
CONTRIBUTOR'S compensation
to the employees' savings fund, except that the school employees
retirement board may raise the contribution rate to a rate not
greater than ten per cent of compensation.
The contributions by the direction of the school employees
retirement board shall be deducted by the employer from the
compensation of each contributor on each payroll of such
contributor for each payroll period and shall be an amount equal
to the required per cent of such contributor's compensation.
ON A FINDING BY THE BOARD THAT AN EMPLOYER HAS FAILED OR REFUSED
TO DEDUCT CONTRIBUTIONS FOR ANY EMPLOYEE DURING ANY YEAR AND TO TRANSMIT
SUCH AMOUNTS TO THE RETIREMENT SYSTEM, THE RETIREMENT BOARD MAY MAKE A
DETERMINATION OF THE AMOUNT OF THE DELINQUENT CONTRIBUTIONS,
INCLUDING INTEREST AT A RATE SET BY THE RETIREMENT BOARD, FROM THE
END OF EACH YEAR, AND CERTIFY TO THE EMPLOYER THE AMOUNTS FOR
COLLECTION. IF THE AMOUNT IS NOT PAID BY THE EMPLOYER, IT MAY BE
CERTIFIED FOR COLLECTION IN THE SAME MANNER AS PAYMENTS DUE THE
EMPLOYERS' TRUST FUND. ANY AMOUNTS SO COLLECTED SHALL BE HELD IN
TRUST PENDING RECEIPT OF A REPORT OF CONTRIBUTIONS FOR THE
EMPLOYEE FOR THE PERIOD INVOLVED AS PROVIDED BY LAW AND,
THEREAFTER, THE AMOUNT IN TRUST SHALL BE TRANSFERRED TO THE
EMPLOYEE'S SAVINGS FUND TO THE CREDIT OF THE EMPLOYEE. ANY
AMOUNT REMAINING AFTER THE TRANSFER TO THE EMPLOYEES' SAVINGS FUND
SHALL BE TRANSFERRED TO THE EMPLOYERS' TRUST FUND AS A CREDIT OF
THE EMPLOYER.
Any contributor under contract who, because of illness,
accident, or other reason approved by the employer, is prevented
from making his THE CONTRIBUTOR'S contribution to the system for
any payroll
period, may, upon returning to contributing service, have such
deductions made from other payrolls during the year, or may pay
such amount to the employer and the employer shall transmit such
deductions to the system. The deductions shall be made
notwithstanding that the minimum compensation for any contributor
shall be reduced thereby. Every contributor shall be deemed to
consent and agree to the contributions made and provided for in
this section and shall receipt in full for his THE CONTRIBUTOR'S
salary or
compensation, and payment, less the contributions, is a full and
complete discharge and acquittance of all claims and demands
whatsoever for the services rendered by the person during the
period covered by the payment.
Each contributor shall pay with the first payment to the
employees' savings fund each year a sum to be determined by the
board, as provided by law, which amount shall be credited to the
expense fund. The payments for the expense fund shall be made to
the board in the same way as payments to the employees' savings
fund are made.
Additional deposits may be made to a member's account. At
retirement, the amount deposited with interest may be used to
provide additional annuity income. The additional deposits may
be refunded to the member before retirement, and shall be
refunded if the member withdraws his THE MEMBER'S refundable
amount. The
deposits may be refunded to the beneficiary or estate if the
member dies before retirement, and the board shall determine
whether regular interest shall be credited to deposits thus
refunded.
Sec. 3309.49. Each employer shall pay annually to the
employers' trust fund SCHOOL EMPLOYEES RETIREMENT SYSTEM an
amount certified by the secretary that
shall be a certain per cent of the earnable compensation of all
employees, and shall be known as the "employer contribution."
The rate per cent of such contribution shall be fixed by the
actuary on the basis of his THE ACTUARY'S evaluation of the
liabilities of the
school employees retirement system, but shall not exceed fourteen
per cent, and shall be approved by the school employees
retirement board. The school employees retirement board may
raise the rate per cent of the contribution to fourteen per cent
of the earnable compensation of all employees. In making such
evaluation, the actuary shall use, as the actuarial assumptions,
regular interest and such mortality and other tables as are
adopted by the school employees retirement board. He THE
ACTUARY shall
compute the percentage of such earnable compensation, to be known
as the "employer rate," required annually to fund the liability
for all allowances, annuities, pensions and other benefits, and
any deficiencies in the various funds, provided for in this
chapter, after deducting therefrom the annuity and other benefits
provided by the contributor's accumulated contributions and
deposits or other applicable moneys.
Sec. 3309.53. Each employer, before employing any employee to whom
sections
3309.01 to 3309.68, inclusive, of the Revised Code, THIS CHAPTER
may apply, shall give such
person a written statement of his THE PERSON'S duties and
obligations under such sections
as a condition of his employment, which statement shall be prepared and
supplied to each employer by the school employees retirement board.
Any such appointment or reappointment of any employee, or service upon
indefinite tenure, shall be conditioned upon the employee's acceptance of such
sections as a part of the contract.
Sec. 3309.54. During September of each year, or at such other time as the
school employees retirement board approves, each employer shall certify to the
board the names of all employees to whom sections 3309.01 to 3309.68,
inclusive, of the Revised Code, apply THIS CHAPTER APPLIES.
Sec. 3309.55. Each employer shall on the first day of each calendar month, or
at such less frequent intervals as the school employees retirement board
approves, notify the board of the employment of new employees, removals,
withdrawals, and changes in compensation of employees that have occurred
during the month preceding or the period since the period covered by the last
notification. At least once a year each employer shall submit to the board a
complete listing of all employees not contributing to the school employees
retirement system.
EACH EMPLOYER SHALL KEEP SUCH RECORDS AND SHALL FURNISH SUCH
INFORMATION AND ASSISTANCE TO THE SCHOOL EMPLOYEES RETIREMENT BOARD AS
IT REQUIRES IN THE DISCHARGE OF ITS DUTIES.
Sec. 3309.57. The treasurer of each employer on receipt from the employer of
the voucher for deductions from the compensation of employees and for the
contributions of the employer shall transmit monthly or at such times as the
school employees retirement board designates the amounts specified in such
voucher to the secretary of the board. The secretary of the board after
making a record of all such receipts shall pay them to the treasurer of state
for use according to sections 3309.01 to 3309.68 of the Revised Code
THIS CHAPTER.
Sec. 3309.59. Employers who obtain funds directly by taxation shall levy
annually such additional taxes as are required to provide the additional funds
necessary to meet the financial requirements imposed upon them by sections
3309.01 to 3309.68, inclusive, of the Revised Code, THIS CHAPTER
and said tax shall be
placed before and in preference to all other items except for sinking fund or
interest purposes.
Sec. 3309.60. The school employees retirement board shall
be the trustee of certain funds hereby created as follows:
(A) The "employees' savings fund" is the fund in which
shall be accumulated the contributions deducted from the
compensation of contributors as provided by section 3309.47 of
the Revised Code, together with the interest credited thereon.
Such accumulated contributions refunded upon withdrawal or
payable to a beneficiary as provided in this chapter, shall be
paid from this fund. Any accumulated contributions forfeited by
the failure of a contributor or a beneficiary to claim the same
shall be transferred from this fund to the guarantee fund. The
accumulated contributions of a contributor shall be transferred
at his retirement from the employee's savings fund to the annuity
and pension reserve fund. The accumulated contributions of a
member who dies prior to service retirement and which are
forfeited by the qualified beneficiary in exchange for monthly
survivor benefits, as provided by section 3309.45 of the Revised
Code, shall be transferred to the survivors' benefit fund. The
accumulated contributions of an SERS retirant or other system
retirant as defined in section 3309.341 of the Revised Code, who
dies prior to retirement, shall be transferred to the survivors'
benefit fund for payment of a lump sum benefit to a beneficiary
as provided in section 3309.341 of the Revised Code.
(B) The "employers' trust fund" is the fund to which the
employer contribution shall be credited and in which shall be
accumulated the reserves held in trust for the payment of all
pensions, disability benefits, or other benefits provided by this
chapter, to contributors retiring or receiving disability
benefits in the future or to their qualified beneficiaries, and
from which the reserves for such pensions, disability benefits,
and other benefits shall be transferred to the annuity and
pension reserve fund and to the survivors' benefit fund. The
balances in the employers' accumulation fund shall be transferred
to this fund. As of June 30, 1958, an additional amount shall be
transferred from the employers' trust fund to the annuity and
pension reserve fund in the amount required to complete the
funding of the prior service and military service pensions then
payable.
(C) The "annuity and pension reserve fund" is the fund
from which shall be paid all annuities, pensions, and disability
benefits for which reserves have been transferred from the
employees' savings fund and the employers' trust fund.
(D) The "survivors' benefit fund" is the fund from which
shall be paid the survivors' benefits provided by section 3309.45
of the Revised Code, and the lump sum payment to beneficiaries as
provided in section 3309.341 of the Revised Code and to which
shall be transferred from the employers' trust fund the amount
required to fund all liabilities as of the end of each year.
(E) The "guarantee fund" is the fund from which interest
is transferred and credited on the amounts in the funds described
in divisions (A), (B), (C), and (D) of this section, and is a
contingent fund from which the special requirements of said funds
may be paid by transfer from this fund. All income derived from
the investment of funds by the school employees retirement board
as trustees under section 3309.15 of the Revised Code, together
with all gifts and bequests, or the income therefrom, shall be
paid into this fund.
Any deficit occurring in any other fund that will not be
covered by payments to that fund, as otherwise provided in this
chapter, shall be paid by transfers of amounts from the guarantee
fund to such fund or funds. Should the amount in the guarantee
fund be insufficient at any time to meet the amounts payable
therefrom TO THE FUNDS DESCRIBED IN DIVISIONS (C) AND
(D) OF THIS SECTION, the amount of such deficiency, with regular
interest,
shall be paid by an additional employer rate of contribution as
determined by the actuary, not to exceed fourteen per cent, and
shall be approved by the school employees retirement board, and
the amount of such additional employer contribution shall be
credited to the guarantee fund.
The school employees retirement board SYSTEM may accept gifts
and
bequests. Any GIFTS, BEQUESTS, OR funds that may come into
possession of the school
employees retirement board in this manner or that may be
transferred from the employees' savings fund by reason of lack of
a claimant, or any surplus in any fund created by this section,
or any other funds whose disposition is not otherwise provided
for, shall be credited to the guarantee fund.
(F) The "expense fund" is the fund from which shall be
paid the expenses for the administration and management of the
school employees retirement system as provided by this chapter,
and to which shall be credited the fees paid by members as
provided by sections 3309.47 and 3309.62 of the Revised Code.
(G) THE DEFINED CONTRIBUTION FUND IS THE FUND IN
WHICH
SHALL BE ACCUMULATED THE CONTRIBUTIONS DEDUCTED FROM THE COMPENSATION OF
MEMBERS PARTICIPATING IN A PLAN ESTABLISHED UNDER SECTION 3309.81 of the Revised Code, AS
PROVIDED IN
SECTION 3309.85 OF THE REVISED CODE, TOGETHER WITH ANY
EARNINGS AND
EMPLOYER CONTRIBUTIONS, AS PROVIDED IN SECTION 3309.86 OF THE
REVISED CODE, CREDITED THEREON. THE DEFINED CONTRIBUTION
FUND IS THE FUND FROM WHICH SHALL BE PAID ALL BENEFITS PROVIDED UNDER A PLAN
ESTABLISHED UNDER SECTION 3309.81 of the Revised Code.
Sec. 3309.61. Wherever in sections 3309.01 to 3309.68, inclusive, of the
Revised Code THIS CHAPTER, reference is made to the employees'
savings fund, the
employers'
trust fund, the annuity and pension reserve fund, the guarantee fund, the
survivors' benefit fund, THE DEFINED CONTRIBUTION FUND, or the
expense fund, such reference shall be
construed to have been made to each as a separate legal entity. This section
does not prevent the deposit or investment of all such moneys intermingled for
such purpose but such funds shall be separate and distinct legal entities for
all other purposes.
Sec. 3309.66. The right of a person to a pension, an annuity, or a
retirement allowance itself, any optional benefit, any other right accrued or
accruing to any persons, under sections 3309.01 to 3309.68 of the Revised
Code THIS CHAPTER, or the various funds created by section 3309.60
of the Revised Code and
all moneys
and investments and income thereof, are exempt from any state tax, except the
tax imposed by section 5747.02 of the Revised Code, and are exempt from any
county, municipal, or other local tax, except taxes imposed pursuant to
section 5748.02 or 5748.08 of the Revised Code and,
except as provided in sections
3111.23, 3113.21, and 3309.67 of the Revised Code, shall not be subject to
execution, garnishment, attachment, the operation of bankruptcy or insolvency
laws, or any other process of law whatsoever, and shall be unassignable except
as specifically provided in sections 3111.23, 3113.21, and 3309.01 to 3309.68
of the Revised Code.
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. Effective on the
first day of the month after
December 8, 1998 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, 1992 1999.
(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, Ohio police and fire 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.
Sec. 3309.80. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL ADOPT
RULES TO IMPLEMENT EACH PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED CODE.
Sec. 3309.81. THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL ESTABLISH
ONE OR MORE PLANS CONSISTING OF BENEFIT OPTIONS THAT PROVIDE FOR AN
INDIVIDUAL ACCOUNT FOR EACH PARTICIPATING MEMBER AND UNDER WHICH
BENEFITS ARE BASED SOLELY ON THE AMOUNTS THAT HAVE ACCUMULATED IN
THE ACCOUNT. THE PLANS MAY INCLUDE OPTIONS UNDER WHICH A MEMBER
PARTICIPATING IN A PLAN MAY RECEIVE DEFINITELY DETERMINABLE
BENEFITS.
EACH PLAN ESTABLISHED UNDER THIS SECTION SHALL MEET THE
REQUIREMENTS OF SECTIONS 3309.81 TO 3309.98 OF THE REVISED
CODE AND
ANY RULES ADOPTED IN ACCORDANCE WITH SECTION 3309.80 OF THE REVISED
CODE. IT MAY INCLUDE LIFE INSURANCE, ANNUITIES, VARIABLE
ANNUITIES, REGULATED INVESTMENT TRUSTS, POOLED INVESTMENT FUNDS, OR OTHER
FORMS OF INVESTMENT.
THE BOARD MAY ADMINISTER THE PLANS, ENTER INTO CONTRACTS WITH
OTHER ENTITIES TO ADMINISTER THE PLANS, OR BOTH.
Sec. 3309.811. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED CODE SHALL QUALIFY AS A GOVERNMENTAL PLAN UNDER
SECTION
414(d) OF THE "INTERNAL REVENUE
CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A.
414(d), AS AMENDED, AND MEET THE REQUIREMENTS OF SECTION
401(a) OF THE
"INTERNAL
REVENUE
CODE OF 1986," 26
U.S.C.A. 401(a), AS
AMENDED, APPLICABLE TO GOVERNMENTAL PLANS.
Sec. 3309.812. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED
CODE SHALL MEET THE REQUIREMENTS NECESSARY TO QUALIFY AS A
RETIREMENT SYSTEM MAINTAINED BY A STATE OR LOCAL GOVERNMENT ENTITY UNDER
SECTION 3121(b)(7)(F) OF THE "INTERNAL
REVENUE
CODE OF 1986," 100
STAT. 2085, 26
U.S.C.A.
3121(b)(7)(F), AS AMENDED. EACH PARTICIPANT IN A
PLAN SHALL
QUALIFY AS A MEMBER OF THAT SYSTEM.
Sec. 3309.813. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED
CODE SHALL REQUIRE THE SCHOOL EMPLOYEES RETIREMENT BOARD, OR THE
ENTITY ADMINISTERING THE PLAN PURSUANT TO A CONTRACT WITH THE BOARD, TO CAUSE
AN INDIVIDUAL ACCOUNT TO BE MAINTAINED FOR EACH MEMBER
PARTICIPATING IN THE PLAN. A PLAN
MAY INCLUDE DEPOSITS TO THE DEFINED
CONTRIBUTION FUND CREATED UNDER SECTION 3309.60 OF THE REVISED
CODE
OR ADDITIONAL DEPOSITS MADE UNDER
SECTION 3309.47 of the Revised Code
TO THE EMPLOYEES'
SAVINGS FUND.
Sec. 3309.82. (A) EXCEPT AS PROVIDED IN DIVISION (B) OF
THIS
SECTION, SECTIONS 3309.02, 3309.021, AND 3309.022 AND SECTIONS 3309.18 TO
3309.70 OF THE REVISED CODE DO
NOT
APPLY TO A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED
CODE, EXCEPT THAT A PLAN MAY
INCORPORATE PROVISIONS OF THOSE SECTIONS
AS SPECIFIED IN THE PLAN DOCUMENT.
(B) THE FOLLOWING SECTIONS OF CHAPTER 3309. OF THE
REVISED CODE
APPLY TO A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED
CODE:
SECTIONS 3309.19, 3309.21, 3309.22, 3309.23, 3309.24, 3309.28, 3309.29,
3309.341, 3309.3712, 3309.47, 3309.471, 3309.49, 3309.51, 3309.53,
3309.54, 3309.55, 3309.56, 3309.57, 3309.571, 3309.58, 3309.59,
3309.60, 3309.61, 3309.62, 3309.66, 3309.661, 3309.67, 3309.68,
AND 3309.70
OF THE REVISED CODE.
Sec. 3309.85. EACH MEMBER PARTICIPATING IN A PLAN ESTABLISHED
UNDER SECTION 3309.81 OF THE REVISED CODE SHALL CONTRIBUTE A
PER CENT OF
THE MEMBER'S COMPENSATION TO THE SCHOOL EMPLOYEES RETIREMENT
SYSTEM AS REQUIRED IN SECTION 3309.47 OF THE REVISED CODE.
CONTRIBUTIONS MADE UNDER THIS SECTION SHALL NOT EXCEED THE LIMITS
ESTABLISHED BY SECTION 415 OF THE "INTERNAL REVENUE
CODE OF
1986," 100 STAT. 2085, 26
U.S.C.A.
415, AS AMENDED.
Sec. 3309.86. FOR EACH MEMBER PARTICIPATING IN A PLAN ESTABLISHED
UNDER SECTION 3309.81 OF THE REVISED CODE, THE EMPLOYER
SHALL
CONTRIBUTE A PER CENT OF THE MEMBER'S COMPENSATION TO THE SCHOOL
EMPLOYEES RETIREMENT SYSTEM AS REQUIRED IN SECTION 3309.49 OF THE
REVISED CODE.
Sec. 3309.87. EXCEPT AS PROVIDED IN SECTION 3309.88 of the Revised Code, AMOUNTS
CONTRIBUTED UNDER SECTIONS 3309.85 AND 3309.86
OF THE REVISED CODE, AND ANY EARNINGS ON THOSE AMOUNTS,
SHALL BE
DEPOSITED AND CREDITED IN ACCORDANCE WITH THE PLAN ESTABLISHED UNDER
SECTION 3309.81 OF THE REVISED CODE THAT IS SELECTED BY THE
MEMBER.
Sec. 3309.88. FOR EACH MEMBER PARTICIPATING IN A PLAN ESTABLISHED
UNDER SECTION 3309.81 OF THE REVISED CODE, THE SCHOOL
EMPLOYEES
RETIREMENT SYSTEM SHALL TRANSFER TO THE EMPLOYERS' TRUST FUND A
PORTION OF THE EMPLOYER CONTRIBUTION REQUIRED UNDER SECTION 3309.49 OF THE
REVISED CODE. THE PORTION SHALL EQUAL THE PERCENTAGE OF
COMPENSATION OF MEMBERS FOR WHOM THE
CONTRIBUTIONS ARE BEING MADE THAT IS DETERMINED BY AN ACTUARY
APPOINTED BY THE SCHOOL EMPLOYEES RETIREMENT BOARD TO BE NECESSARY
TO MITIGATE ANY NEGATIVE FINANCIAL IMPACT ON THE SYSTEM OF MEMBERS'
PARTICIPATION IN A PLAN.
THE BOARD SHALL HAVE PREPARED ANNUALLY AN ACTUARIAL STUDY TO
DETERMINE WHETHER THE PERCENTAGE TRANSFERRED UNDER THIS SECTION SHOULD
BE CHANGED TO REFLECT A CHANGE IN THE LEVEL OF NEGATIVE FINANCIAL IMPACT
RESULTING FROM MEMBERS' PARTICIPATION IN A PLAN. THE PERCENTAGE
TRANSFERRED SHALL BE INCREASED OR DECREASED TO REFLECT THE AMOUNT NEEDED TO
MITIGATE THE NEGATIVE FINANCIAL IMPACT, IF ANY, ON THE
SYSTEM, AS DETERMINED BY THE STUDY. A CHANGE
SHALL TAKE EFFECT ON THE FIRST DAY OF THE YEAR FOLLOWING
THE DATE THE CONCLUSIONS OF THE STUDY ARE REPORTED TO
THE BOARD.
THE SYSTEM SHALL MAKE THE TRANSFER REQUIRED UNDER THIS SECTION
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 AND BENEFIT INCREASES TO MEMBERS AND FORMER
MEMBERS PARTICIPATING IN THE PLAN DESCRIBED IN SECTIONS 3309.18 TO 3309.70
OF THE REVISED CODE GRANTED AFTER THE EFFECTIVE DATE OF
THIS SECTION, IS FULLY AMORTIZED, AS DETERMINED BY THE ANNUAL ACTUARIAL
VALUATION PREPARED UNDER SECTION 3309.21 OF THE REVISED
CODE.
Sec. 3309.91. THE RIGHT OF EACH MEMBER PARTICIPATING IN A PLAN
ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED CODE TO A
RETIREMENT, DISABILITY, SURVIVOR, OR DEATH BENEFIT, TO HEALTH OR LONG-TERM
CARE INSURANCE, OR TO A WITHDRAWAL OF ANY AMOUNTS THAT HAVE ACCUMULATED ON THE
MEMBER'S BEHALF SHALL BE GOVERNED EXCLUSIVELY BY THE PLAN SELECTED BY THE
MEMBER.
Sec. 3309.92. IF A MEMBER PARTICIPATING IN A PLAN ESTABLISHED
UNDER SECTION 3309.81 OF THE REVISED CODE IS MARRIED AT THE
TIME
BENEFITS UNDER THE PLAN ARE TO COMMENCE, BEFORE MAKING ANY PAYMENT THE SCHOOL
EMPLOYEES RETIREMENT SYSTEM, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT TO
A CONTRACT
WITH THE SCHOOL EMPLOYEES RETIREMENT BOARD, SHALL OBTAIN THE
CONSENT OF THE MEMBER'S SPOUSE TO THE FORM OF PAYMENT SELECTED BY
THE MEMBER.
A PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE REVISED
CODE SHALL
INCLUDE REQUIREMENTS FOR CONSENT UNDER THIS SECTION THAT ARE THE SAME AS
THE REQUIREMENTS SPECIFIED IN SECTION
417(a)(2) OF THE "INTERNAL
REVENUE
CODE OF 1986," 100
STAT. 2085, 26
U.S.C.A. 417(a)(2), AS
AMENDED. A PLAN MAY WAIVE CONSENT IF THE SPOUSE CANNOT BE LOCATED OR FOR ANY
OTHER REASON SPECIFIED IN THE REGULATIONS ADOPTED UNDER THAT
SECTION.
CONSENT OR WAIVER IS EFFECTIVE ONLY WITH REGARD TO THE SPOUSE WHO
IS THE SUBJECT OF THE CONSENT OR WAIVER.
Sec. 3309.95. SUBJECT TO SECTIONS 3309.341, 3309.66, AND 3309.67 OF THE
REVISED
CODE, THE RIGHT OF A MEMBER PARTICIPATING IN A PLAN ESTABLISHED
UNDER SECTION 3309.81 OF THE REVISED CODE TO ANY PAYMENT OR
BENEFIT
ACCRUING FROM CONTRIBUTIONS MADE BY OR ON BEHALF OF THE MEMBER UNDER
SECTIONS 3309.85 AND 3309.86 OF THE REVISED CODE SHALL VEST
IN
ACCORDANCE WITH THIS SECTION.
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON THE
MEMBER'S CONTRIBUTIONS IS NONFORFEITABLE.
A MEMBER'S RIGHT TO ANY PAYMENT OR BENEFIT THAT IS BASED ON
CONTRIBUTIONS BY THE MEMBER'S EMPLOYER IS NONFORFEITABLE AS SPECIFIED BY
THE PLAN SELECTED BY THE MEMBER.
Sec. 3309.97. EACH PLAN ESTABLISHED UNDER SECTION 3309.81 OF THE
REVISED
CODE SHALL PERMIT A MEMBER PARTICIPATING IN THE PLAN TO DO ALL OF
THE FOLLOWING:
(A) MAINTAIN ON DEPOSIT WITH THE SCHOOL EMPLOYEES RETIREMENT
SYSTEM, OR THE ENTITY ADMINISTERING THE PLAN PURSUANT TO A CONTRACT WITH THE
SCHOOL EMPLOYEES RETIREMENT BOARD, ANY
AMOUNTS THAT HAVE ACCUMULATED ON BEHALF OF THE MEMBER;
(B) IF THE MEMBER HAS WITHDRAWN THE AMOUNTS DESCRIBED IN DIVISION
(A) OF THIS SECTION, REDEPOSIT WITH THE SYSTEM OR THE ENTITY
ADMINISTERING THE PLAN THE AMOUNTS WITHDRAWN;
(C) MAKE ADDITIONAL DEPOSITS AS PERMITTED BY THE
"INTERNAL
REVENUE CODE OF 1986," 100 STAT.
2085, 26 U.S.C.A. 1, AS AMENDED.
Sec. 3309.98. CONTRIBUTIONS UNDER SECTIONS
3309.85 AND 3309.86 OF THE REVISED CODE SHALL CEASE ON THE
MEMBER'S DEATH OR TERMINATION OF
EMPLOYMENT OR FOR ANY OTHER REASON SPECIFIED BY THE PLAN SELECTED BY THE
MEMBER.
Section 2.
That existing sections 3309.01, 3309.03, 3309.04, 3309.05, 3309.07, 3309.12,
3309.15, 3309.17, 3309.22, 3309.341, 3309.36, 3309.374, 3309.381,
3309.40, 3309.401, 3309.45, 3309.47, 3309.49, 3309.53, 3309.54, 3309.55,
3309.57, 3309.59, 3309.60, 3309.61, 3309.66, and 3309.69
and section 3309.58 of the
Revised Code are hereby repealed.
Section 3. The School Employees Retirement System shall
recalculate under section 3309.36, 3309.381, 3309.40, 3309.401, or 3309.45
of the Revised Code, as amended by this act, or 3309.38 of the
Revised Code, each benefit that is payable under those sections or section
3309.46 of the Revised Code and became effective on or after
January 1, 2000, but before the effective date of this act. If
the recalculated benefit is greater than the recipient's benefit
prior to the recalculation, the system shall do both of the
following:
(A) Pay the recalculated benefit beginning on the first day of
the month immediately following the date the board recalculates
the benefit;
(B) Make a one-time payment to each recipient receiving a benefit on the
effective date of this act.
The payment shall be an amount equal to the
difference between the benefits paid to the recipient between
January 1, 2000, and the date of the payment and the increased
benefits that would have been paid to the recipient had the
amendments to sections 3309.36, 3309.381, 3309.40, 3309.401, and 3309.45 of
the Revised Code gone into effect on January 1, 2000.
Section 4. (A) The School Employees Retirement System shall make
a one-time payment to each person receiving a monthly payment under section
3309.69 of the Revised Code as of the effective date of this act who was
eligible to receive a
monthly payment during the period commencing January 1, 1993, and
ending on the last day of the month in which this act takes effect
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.
Except as provided in division (B) of this section, the payment
shall be equal to the difference between:
(1) The amount the recipient was eligible to receive under
division (D) of section 3309.69 of the Revised Code during the
period commencing January 1, 1993, and ending on the last day of
the month in which this act takes effect;
(2) The amount the recipient would have received under division
(D) of section 3309.69 of the Revised Code during the same period
had the amendments to that division made by this act taken effect January 1,
1993.
(B) The School Employees Retirement System shall subtract from
any amount payable under this section any amount the recipient was
eligible to receive pursuant to Section 3 of Am. Sub. H.B. 673 of
the 122nd General Assembly.
Section 5. If the surviving spouse of a member who died on or after
January 1, 2000, but before the effective date of this act would
be eligible for a benefit under division (B)(3)(a) of section
3309.45 of the Revised Code as amended by this act and the
surviving spouse has not taken the payment of the member's
accumulated account, the system shall calculate the benefit
payable to the surviving spouse under section 3309.45 of the
Revised Code as of the effective date of this act and do both of
the following:
(A) Begin payment to the surviving spouse on the first day of the
month immediately following the date the calculation is made;
(B) Make a one-time payment to each surviving spouse eligible to receive
payment under division (A) of this section.
The payment under this division shall be an amount equal to the
sum of the monthly benefits that would have been paid to the
surviving spouse had the amendments to section 3309.45 of the
Revised Code gone into effect on January 1, 2000.
Section 6. The amendments made by this act to section 3309.05 and
3309.07 of the Revised Code do not affect the term of the retirant
member holding office on the effective date of this act.
|