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(124th General Assembly)
(Substitute Senate Bill Number 247)
AN ACT
To amend sections 145.01, 145.04, 145.05, 145.091,
145.19, 145.191, 145.192, 145.20, 145.22, 145.23,
145.27, 145.35, 145.38, 145.384, 145.40, 145.45,
145.46, 145.56, 145.58, 145.80,
145.81,
145.811,
145.812, 145.813, 145.82, 145.85,
145.86,
145.87,
145.88, 145.91, 145.92, 145.95, 145.97, 742.14,
742.37, 742.372, 742.45, 3105.80, 3307.01, 3307.39,
3307.51,
3307.56, 3307.561,
3307.563, 3307.58,
3307.60,
3307.761, 3307.763, 3307.764, 3307.87,
3309.21,
3309.43, 3309.45,
3309.46, 3309.69,
5505.12, and
5505.28; to amend, for the purpose of
adopting a
new section number as indicated in
parentheses,
section 742.372 (742.371); to enact
sections
145.193, 145.385, 145.402, 145.814, and
145.83; and
to repeal sections 742.371 and 742.373
of the
Revised Code to create in the
State
Teachers
Retirement System (STRS), School
Employees
Retirement System, and Public
Employees
Retirement
System (PERS) the option of receiving
retirement
benefits
as a partial lump sum followed
by a
reduced monthly
allowance, to make other
changes to
the law
governing STRS to make changes
to the Ohio
Police
and Fire Pension Fund (OP&F)
cost of living
increase, to eliminate a health
maintenance
organization
requirement for public
pension system
retirees, to permit certain PERS
reemployed
retirants to elect resumption of a
retirement
allowance, to make permissive the
redeposit of
contributions previously withdrawn
from OP&F by
firefighters and police officers
returning to the
same employer after a period of
absence, and to
alter provisions governing the
PERS defined
contribution retirement plan.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 145.01, 145.04, 145.05, 145.091,
145.19, 145.191, 145.192, 145.20, 145.22, 145.23, 145.27, 145.35,
145.38, 145.384, 145.40, 145.45, 145.46, 145.56, 145.58, 145.80,
145.81,
145.811, 145.812, 145.813, 145.82, 145.85,
145.86,
145.87,
145.88, 145.91, 145.92, 145.95, 145.97, 742.14, 742.37, 742.372,
742.45, 3105.80, 3307.01, 3307.39, 3307.51,
3307.56, 3307.561,
3307.563,
3307.58, 3307.60, 3307.761, 3307.763,
3307.764, 3307.87,
3309.21,
3309.43, 3309.45, 3309.46, 3309.69,
5505.12, and 5505.28
be
amended, and section 742.372 (742.371) be amended for the
purpose
of adopting a new section number, and sections 145.193,
145.385,
145.402, 145.814, and 145.83 of the Revised
Code be
enacted to
read as
follows:
Sec. 145.01. As used in this chapter: (A) "Public employee" means: (1) Any person holding an office, not elective, under the
state or any
county, township, municipal corporation, park
district, conservancy district,
sanitary district, health
district, metropolitan housing authority, state
retirement board,
Ohio historical society, public library, county law library,
union
cemetery, joint hospital, institutional commissary, state
university, or
board, bureau, commission, council, committee,
authority, or administrative
body as the same are, or have been,
created by action of the general assembly
or by the legislative
authority of any of the units of local government named
in
division (A)(1) of this section, or employed and
paid in whole or
in part by the state or any
of the authorities named in division
(A)(1) of this
section in any capacity not covered by
section
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code. (2) A person who is a member of the public employees
retirement system
and who
continues to perform the same or similar
duties under the direction of a
contractor who has contracted to
take over what before the date of the
contract was a publicly
operated function. The governmental unit with which
the contract
has been made shall be deemed the employer for the purposes of
administering this chapter. (3) Any person who is an employee of a public employer,
notwithstanding that
the person's compensation for that employment
is derived from funds of a
person or entity other than the
employer. Credit for such service shall be
included as total
service credit, provided that the employee makes the
payments
required by this chapter, and the employer makes the payments
required by sections 145.48 and 145.51 of the Revised Code. (4) A person who elects in accordance with section 145.015
of the Revised
Code to remain a contributing member of the public
employees retirement
system. In all cases of doubt, the public employees retirement board
shall determine
whether any person is a public employee, and its
decision is final. (B) "Member" means any public employee, other than a public
employee excluded
or exempted from membership in the retirement
system by section 145.03,
145.031, 145.032, 145.033, 145.034,
145.035, or 145.38 of the Revised Code.
"Member" includes a PERS
retirant who becomes a member under division
(C) of section 145.38
of the Revised Code. "Member" also includes a
disability benefit
recipient. (C) "Head of the department" means the elective or
appointive head of the
several executive, judicial, and
administrative departments, institutions,
boards, and commissions
of the state and local government as the same are
created and
defined by the laws of this state or, in case of a charter
government, by that charter. (D) "Employer" or "public employer" means the state or any
county, township,
municipal corporation, park district,
conservancy district, sanitary district,
health district,
metropolitan housing authority, state retirement board, Ohio
historical society, public library, county law library, union
cemetery, joint
hospital, institutional commissary, state medical
college, state university,
or board, bureau, commission, council,
committee, authority, or administrative
body as the same are, or
have been, created by action of the general assembly
or by the
legislative authority of any of the units of local government
named
in this division not covered by section 742.01, 3307.01,
3309.01, or 5505.01 of the Revised
Code. In addition, "employer"
means the employer of any public employee. (E) "Prior service" means all service as a public employee
rendered before
January 1, 1935, and all service as an employee of
any employer who comes
within the state teachers retirement system
or of the school employees
retirement system or of any other
retirement system established under the laws
of this state
rendered prior to January 1, 1935, provided that if the employee
claiming the service was employed in any capacity covered by that
other system
after that other system was established, credit for
the service may be allowed
by the public employees retirement
system only when the employee has made
payment, to be computed on
the salary earned from the date of appointment to
the date
membership was established in the public employees retirement
system,
at the rate in effect at the time of payment, and the
employer has made
payment of the corresponding full liability as
provided by section 145.44 of
the Revised Code. "Prior service"
also means all service credited for active
duty with the armed
forces of the United States as provided in section 145.30
of the
Revised Code. If an employee who has been granted prior service credit by
the public
employees retirement system for service rendered prior
to January 1, 1935, as
an employee of a board of education
establishes, before retirement, one year
or more of contributing
service in the state teachers retirement system or
school
employees retirement system, then the prior service ceases to be
the
liability of this system. If the board determines that a position of any member in any
calendar year
prior to January 1, 1935, was a part-time position,
the board shall determine
what fractional part of a year's credit
shall be allowed by the following
formula: (1) When the member has been either elected or appointed to
an office the
term of which was two or more years and for which an
annual salary is
established, the fractional part of the year's
credit shall be computed as
follows: First, when the member's annual salary is one thousand
dollars or less, the
service credit for each such calendar year
shall be forty per cent of a year. Second, for each full one hundred dollars of annual salary
above one thousand
dollars, the member's service credit for each
such calendar year shall be
increased by two and one-half per
cent. (2) When the member is paid on a per diem basis, the service
credit for any
single year of the service shall be determined by
using the number of days of
service for which the compensation was
received in any such year as a
numerator and using two hundred
fifty days as a denominator. (3) When the member is paid on an hourly basis, the service
credit for any
single year of the service shall be determined by
using the number of hours of
service for which the compensation
was received in any such year as a
numerator and using two
thousand hours as a denominator. (F) "Contributor" means any person who has an account in the
employees'
savings fund created by section 145.23 of the Revised
Code. When used in
the sections listed in division (B) of section
145.82 of the
Revised Code, "contributor" includes any person
participating in a
PERS defined contribution plan
established
under section 145.81 of the
Revised Code. (G) "Beneficiary" or "beneficiaries" means the estate or a
person or persons
who, as the result of the death of a member,
contributor, or retirant, qualify
for or are receiving some right
or benefit under this chapter. (H)(1) "Total service credit," except as provided in section
145.37 of the
Revised Code, means all service credited to a member
of the retirement system
since last becoming a member, including
restored service credit as provided by
section 145.31 of the
Revised Code; credit purchased under sections 145.293
and 145.299
of the Revised Code; all the member's prior service credit; all
the member's military service credit computed as provided in this
chapter; all
service credit established pursuant to section
145.297 of the Revised Code;
and any other service credited under
this chapter. In addition, "total
service credit" includes any
period, not in excess of three years, during
which a member was
out of service and receiving benefits under Chapters 4121.
and
4123. of the Revised Code. For the exclusive purpose of
satisfying the
service credit requirement and of determining
eligibility for benefits under
sections 145.32, 145.33, 145.331,
145.35, 145.36, and 145.361 of the Revised
Code, "five or more
years of total service credit" means sixty or more
calendar months
of contributing service in this system. (2) "One and one-half years of contributing service
credit,"
as used in division (B) of section 145.45 of the Revised
Code,
also means eighteen or more calendar months of employment
by a
municipal corporation that formerly operated its own
retirement
plan for its employees or a part of its employees,
provided that
all employees of that municipal retirement plan who have
eighteen
or more months of such employment, upon
establishing membership in
the public employees retirement
system, shall make a payment of
the contributions they would have paid
had they been members of
this system for the eighteen months of
employment preceding the
date membership was established. When
that payment has been made
by all such employee
members, a
corresponding payment shall be
paid into the employers'
accumulation fund by that municipal
corporation as the employer
of the employees. (3) Where a member also is a member of the state teachers
retirement system
or the school employees retirement system, or
both, except in cases of
retirement on a combined basis pursuant
to section 145.37 of the Revised Code
or as provided in section
145.383 of the Revised Code,
service credit for any period shall
be credited on the basis of the ratio that
contributions to the
public employees retirement system
bear to total
contributions in
all state retirement systems. (4) Not more than one year of credit may be given for any
period of twelve
months. (5) "Ohio service credit" means credit for service that was
rendered to the
state or any of its political subdivisions or any
employer. (I) "Regular interest" means interest at any rates for the
respective funds and accounts as the public employees retirement
board may
determine from time to time. (J) "Accumulated contributions" means the sum of all
amounts
credited to a contributor's individual account in the
employees'
savings fund together with any interest
credited to the
contributor's account under section 145.471 or 145.472 of the
Revised Code. (K)(1) "Final average salary" means the quotient obtained
by
dividing by three the sum of the three full calendar years of
contributing service in which the member's earnable salary was
highest, except that if the member has a partial year of
contributing service in the year the member's employment
terminates and the member's earnable salary for the partial year
is higher
than for any comparable period in the three years, the
member's earnable
salary for the partial year shall be substituted
for the member's earnable
salary for the comparable period during
the three years in which the member's
earnable salary was lowest. (2) If a member has less than three years of contributing
service, the
member's final average salary shall be the member's
total earnable salary
divided by the total number of years,
including any fraction of a year, of the
member's contributing
service. (3) For the purpose of calculating benefits payable to a
member qualifying for service credit under division (Z) of this
section, "final average salary" means the total earnable salary
on
which contributions were made divided by the total number of
years
during which contributions were made, including any
fraction of a
year. If contributions were made for less than
twelve months,
"final average salary" means the member's total
earnable salary. (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) "Annuity reserve" means the present value, computed upon
the basis of the
mortality and other tables adopted by the board,
of all payments to be made on
account of any annuity, or benefit
in lieu of any annuity, granted to a
retirant as provided in this
chapter. (N)(1) "Disability retirement" means retirement as provided
in section 145.36
of the Revised Code. (2) "Disability allowance" means an allowance paid on
account of disability
under section 145.361 of the Revised Code. (3) "Disability benefit" means a benefit paid as disability
retirement under
section 145.36 of the Revised Code, as a
disability allowance under section
145.361 of the Revised Code, or
as a disability benefit under section 145.37
of the Revised Code. (4) "Disability benefit recipient" means a member who is
receiving a
disability benefit. (O) "Age and service retirement" means retirement as
provided in sections
145.32, 145.33, 145.331, 145.34, 145.37, and
145.46 of the Revised Code. (P) "Pensions" means annual payments for life derived from
contributions made
by the employer that at the time of retirement
are credited into the annuity
and pension reserve fund from the
employers' accumulation fund and paid from
the annuity and pension
reserve fund as provided in this chapter. All
pensions shall be
paid in twelve equal monthly installments. (Q) "Retirement allowance" means the pension plus that
portion of the benefit
derived from contributions made by the
member. (R)(1) Except as otherwise provided in division (R)
of this
section, "earnable salary" means
all salary, wages, and other
earnings paid to a contributor by reason of
employment in a
position covered by the retirement system. 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 145.47
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. "Earnable
salary" includes the following: (a) Payments made by the employer in lieu of salary, wages,
or other earnings
for sick leave, personal leave, or vacation used
by the contributor; (b) Payments made by the employer for the conversion of sick
leave, personal
leave, and vacation leave accrued, but not used if
the payment is made
during
the year in which the leave is accrued,
except that payments made pursuant to
section 124.383 or 124.386
of the Revised Code are not earnable salary; (c) Allowances paid by the employer for full maintenance,
consisting of
housing, laundry, and meals, as certified to the
retirement board by the
employer or the head of the department
that employs the contributor; (d) Fees and commissions paid under section 507.09 of the
Revised Code; (e) Payments that are made under a disability leave program
sponsored by the
employer and for which the employer is required
by section 145.296 of the
Revised Code to make periodic employer
and employee contributions; (f) Amounts included pursuant to divisions (K)(3) and (Y) of
this section. (2) "Earnable salary" does not include any of the following: (a) Fees and commissions, other than those paid under
section 507.09 of the
Revised Code, paid as sole compensation for
personal services and fees and
commissions for special services
over and above services for which the
contributor receives a
salary; (b) 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; (c) Incidental benefits, including lodging, food, laundry,
parking, or
services furnished by the employer, or use of the
employer's property or
equipment, or amounts paid by the employer
to the contributor in lieu of
providing the incidental benefits; (d) Reimbursement for job-related expenses authorized by the
employer,
including moving and travel expenses and expenses
related to professional
development; (e) Payments for accrued but unused sick leave, personal
leave, or
vacation
that are made at any time other than in the
year in which the sick leave,
personal leave, or vacation was
accrued; (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; (g) Payments made under division (B), (C), or (E) of section
5923.05 of the Revised
Code, Section 4 of Substitute Senate Bill
No. 3 of the 119th general
assembly, Section 3 of Amended
Substitute Senate Bill
No. 164 of the 124th general assembly, or
Amended Substitute House Bill No. 405 of the 124th 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 earnable salary 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 resulting from the
payments. (3) The retirement board shall determine by rule whether any
compensation not
enumerated in division (R) of this section is
earnable salary, and its decision shall be
final. (S) "Pension reserve" means the present value, computed upon
the basis of the
mortality and other tables adopted by the board,
of all payments to be made on
account of any retirement allowance
or benefit in lieu of any retirement
allowance, granted to a
member or beneficiary under this chapter. (T)(1) "Contributing service" means all service credited to
a member of the
system since January 1, 1935, for which
contributions are made as required by
sections 145.47, 145.48, and
145.483 of the Revised Code. In any year
subsequent to 1934,
credit for any service shall be allowed by the following
formula: (a) For each month for which the member's earnable salary is
two hundred
fifty dollars or more, allow one month's credit. (b) For each month for which the member's earnable salary is
less than two
hundred fifty dollars, allow a fraction of a month's
credit. The numerator of
this fraction shall be the earnable
salary during the month, and the
denominator shall be two hundred
fifty dollars, except that if the member's
annual earnable salary
is less than six hundred dollars, the member's credit
shall not be
reduced below twenty per cent of a year for a calendar year of
employment during which the member worked each month.
Division
(T)(1)(b) of this section shall not
reduce any credit earned
before January 1, 1985. (2) Notwithstanding division (T)(1) of this section, an
elected official who
prior to January 1, 1980, was granted a full
year of credit for each year of
service as an elected official
shall be considered to have earned a full year
of credit for each
year of service regardless of whether the service was
full-time or
part-time. The public employees retirement board has no
authority
to reduce the credit. (U) "State retirement board" means the public employees
retirement board, the
school employees retirement board, or the
state teachers retirement board. (V) "Retirant" means any former member who retires and is
receiving a monthly
allowance as provided in sections 145.32,
145.33, 145.331, 145.34, and 145.46
of the Revised Code. (W) "Employer contribution" means the amount paid by an
employer as
determined under section 145.48 of the Revised
Code. (X) "Public service terminates" means the last day for which
a public
employee is compensated for services performed for an
employer or the date of
the employee's death, whichever occurs
first. (Y) When a member has been elected or appointed to an
office, the term of
which is two or more years, for which an
annual salary is established, and in
the event that the salary of
the office is increased and the member is denied
the additional
salary by reason of any constitutional provision prohibiting an
increase in salary during a term of office, the member may elect
to have the
amount of the member's contributions calculated upon
the basis of the
increased salary for the office. At the member's
request, the board shall
compute the total additional amount the
member would have contributed, or the
amount by which each of the
member's contributions would have increased, had
the member
received the increased salary for the office the member holds. If
the member elects to have the amount by which the member's
contribution would
have increased withheld from the member's
salary, the member shall notify the
employer, and the employer
shall make the withholding and transmit it to the
retirement
system. A member who has not elected to have that amount withheld
may elect at any time to make a payment to the retirement system
equal to the
additional amount the member's contribution would
have increased, plus
interest on that contribution, compounded
annually at a rate established by
the board and computed from the
date on which the last contribution would have
been withheld from
the member's salary to the date of payment. A member may
make a
payment for part of the period for which the increased
contribution was
not withheld, in which case the interest shall be
computed from the date the
last contribution would have been
withheld for the period for which the
payment is made. Upon the
payment of the increased contributions as provided
in this
division, the increased annual salary as provided by law for the
office for the period for which the member paid increased
contributions
thereon shall be used in determining the member's
earnable salary for the
purpose of computing the member's final
average salary. (Z) "Five years of service credit," for the exclusive
purpose of satisfying
the service credit requirements and of
determining eligibility for benefits
under section 145.33 of the
Revised Code, means employment covered under this
chapter or under
a former retirement plan operated, recognized, or endorsed by
the
employer prior to coverage under this chapter or under a
combination of
the coverage. (AA) "Deputy sheriff" means any person who is commissioned
and employed as a
full-time peace officer by the sheriff of any
county, and has been so employed
since on or before December 31,
1965, and whose primary duties are to preserve
the peace, to
protect life and property, and to enforce the laws of this
state;
any person who is or has been commissioned and employed as a peace
officer by the sheriff of any county since January 1, 1966, and
who has
received a certificate attesting to the person's
satisfactory completion of
the peace officer training school as
required by section 109.77 of the Revised
Code and whose primary
duties are to preserve the peace, protect life and
property, and
enforce the laws of this state; or any person deputized by the
sheriff of any county and employed pursuant to section 2301.12 of
the Revised
Code as a criminal bailiff or court constable who has
received a certificate
attesting to the person's satisfactory
completion of the peace officer
training school as required by
section 109.77 of the Revised Code and whose
primary duties are to
preserve the peace, protect life and property, and
enforce the
laws of this state. (BB) "Township constable or police officer in a township
police department or
district" means any person who is
commissioned and employed as a full-time
peace officer pursuant to
Chapter 505. or 509. of the Revised Code, who has
received a
certificate attesting to the person's satisfactory completion of
the peace officer training school as required by section 109.77 of
the Revised
Code, and whose primary duties are to preserve the
peace, protect life and
property, and enforce the laws of this
state. (CC) "Drug agent" means any person who is either of the
following: (1) Employed full-time as a narcotics agent by a county
narcotics agency
created pursuant to section 307.15 of the Revised
Code and has received a
certificate attesting to the satisfactory
completion of the peace officer
training school as required by
section 109.77 of the Revised Code; (2) Employed full-time as an undercover drug agent as
defined in section
109.79 of the Revised Code and is in compliance
with section 109.77 of the
Revised Code. (DD) "Department of public safety enforcement agent" means a
full-time
employee of the
department of public safety who is
designated under section 5502.14
of the Revised Code as an
enforcement agent and who is in compliance with
section 109.77
of
the Revised Code. (EE) "Natural resources law enforcement staff officer" means
a
full-time employee of the department of natural resources who is
designated a
natural resources law enforcement staff officer under
section 1501.013 of the
Revised Code
and
is in compliance with
section 109.77 of the Revised Code. (FF) "Park officer" means a full-time employee of the
department of
natural
resources who is designated a park officer
under section 1541.10 of the
Revised Code and is in compliance
with section 109.77 of the Revised Code. (GG) "Forest officer" means a full-time employee of the
department of natural
resources who is designated a forest officer
under section 1503.29 of the
Revised Code and is in compliance
with section 109.77 of the Revised Code. (HH) "Preserve officer" means a full-time
employee of the
department of natural resources who is
designated a preserve
officer under section 1517.10 of the
Revised
Code and is in
compliance with
section 109.77 of the Revised
Code. (II) "Wildlife officer" means a full-time employee of the
department
of
natural resources who is designated a wildlife
officer under section 1531.13
of the Revised Code and is in
compliance with section 109.77 of the Revised
Code. (JJ) "State watercraft officer" means a full-time
employee
of the department
of natural resources who is designated a state
watercraft officer under
section 1547.521 of the Revised Code and
is in compliance with section 109.77
of the Revised Code. (KK) "Park district police officer" means a full-time
employee of a park
district who is designated pursuant to section
511.232 or 1545.13 of the
Revised Code and is in compliance with
section 109.77 of the Revised Code. (LL) "Conservancy district officer" means a full-time
employee of a
conservancy district who is designated pursuant to
section 6101.75 of the
Revised Code and is in compliance with
section 109.77 of the Revised Code. (MM) "Municipal police officer" means a member of the
organized police
department of a municipal corporation who is
employed full-time, is in
compliance with section 109.77 of the
Revised Code, and is not a member of the
Ohio police and fire
pension fund. (NN) "Ohio veterans' home police officer" means any
person
who is employed at
the Ohio veterans' home as a police officer
pursuant to section 5907.02 of the
Revised Code and is in
compliance with section 109.77 of the Revised Code. (OO) "Special police officer for a mental health
institution" means any
person who is designated as such pursuant
to section 5119.14 of the Revised
Code and is in compliance with
section 109.77 of the Revised Code. (PP) "Special police officer for an institution for the
mentally retarded and
developmentally disabled" means any person
who is designated as such pursuant
to section 5123.13 of the
Revised Code and is in compliance with section
109.77 of the
Revised Code. (QQ) "State university law enforcement officer" means any
person who is
employed full-time as a state university law
enforcement officer pursuant to
section 3345.04 of the Revised
Code and who is in compliance with section
109.77 of the Revised
Code. (RR)
"House sergeant at arms" means any person appointed by
the speaker of the house of representatives under division (B)(1)
of section 101.311 of the Revised Code who has arrest authority
under division (E)(1) of that section. (SS) "Assistant house sergeant at arms" means any person
appointed by the house sergeant at arms under division (C)(1) of
section 101.311 of the Revised Code. (TT) "Regional transit authority police officer" means a
person who is
employed full time as a regional transit authority
police officer under
division (Y) of section 306.35 of the Revised
Code
and is in
compliance with section 109.77 of the Revised Code. (UU)
"State highway patrol police officer" means a special
police
officer employed full time and designated by the
superintendent of the
state highway patrol pursuant to section
5503.09 of the
Revised Code or a person serving
full time as a
special police officer pursuant to that section on a
permanent
basis on October 21, 1997, who is in compliance
with section
109.77 of the Revised Code. (VV) Notwithstanding section 2901.01 of the Revised Code,
"PERS law enforcement
officer" means a sheriff, deputy sheriff,
township constable or police officer
in a township police
department or district, drug agent, department of public
safety
enforcement agent, natural resources law enforcement staff
officer,
park officer, forest officer, preserve officer,
wildlife
officer, state watercraft
officer, park district police officer,
conservancy district officer, Ohio
veterans' home police officer,
special police officer for a mental health
institution, special
police officer for an institution for the mentally
retarded and
developmentally disabled, state university law enforcement
officer,
municipal
police officer,
house sergeant at arms,
assistant house
sergeant
at arms, regional transit authority
police officer, or
state highway patrol police officer. (WW)
"Hamilton county municipal court
bailiff" means a
person
appointed by
the clerk of courts of the Hamilton county
municipal
court under
division
(A)(3) of section 1901.32 of the
Revised Code
who is employed full time as a
bailiff or deputy
bailiff, who has
received a certificate attesting to the
person's
satisfactory
completion of the peace officer basic training
described in
division (D)(1) of section 109.77 of the Revised
Code,
and whose
primary duties are to preserve the peace, to
protect
life and
property, and to
enforce the laws of this state. (XX) "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. (YY) "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. (ZZ) "PERS defined benefit plan" means the plan described in
sections 145.201 to 145.79 of the Revised Code.
(AAA) "PERS defined contribution plans" means the plan or
plans established under section 145.81 of the Revised Code.
Sec. 145.04. The general administration and management of
the public employees retirement system and the making effective
of
Chapter 145. of
the Revised Code, are hereby
vested in a board to
be known as the "public employees retirement
board," which shall
consist of nine members as follows: (A) The attorney general; (B) The auditor of state; (C) The director of administrative services; (D) Five members, known as employee members, one of whom
shall be a state employee member of the system, who shall be
elected by ballot by the state employee members of the system
from
among their number; another of whom shall be a county
employee
member of the system, who shall be elected by ballot by
the county
employee members of the system from among their
number; another of
whom shall be a municipal employee member of
the system, who shall
be elected by ballot by the municipal
employee members of the
system from among their number; another
of whom shall be a
university or college employee member of the
system, who shall be
elected by ballot by the university and
college employee members
of the system from among their number;
and another of whom shall
be a park district, conservancy
district, sanitary district,
health district, public library,
township, metropolitan housing
authority, union cemetery, joint
hospital, or institutional
commissary employee member of the
system, who shall be elected by
ballot by the park district,
conservancy district, sanitary
district, health district,
metropolitan housing authority,
township, public library, union
cemetery, joint hospital, and
institutional commissary employee
members of the system from among
their number, in a manner to be
approved by the board. Members of
the system who are receiving a
disability benefit under this
chapter are ineligible for
membership on the board as employee
members. (E) One member, known as the retirant member, who shall be
a
former member of the public employees retirement system who is a
resident
of this state and a recipient of age and service
retirement, a disability
benefit, or benefits paid under
a
PERS
defined contribution plan
established under section 145.81 of
the
Revised Code. The retirant member
shall be
elected by
ballot
by
former members of the system who are receiving age and
service
retirement, a disability benefit,
or benefits paid under
a
PERS
defined contribution plan
established under section 145.81 of
the
Revised
Code.
Sec. 145.05. (A) The terms of office of employee members
of
the public employees retirement board shall be for four years
each
beginning on the first day of January following election.
The
election of the county employee member of the board and the
employee member of the board representing public library, health
district, park district, conservancy district, sanitary district,
township, metropolitan housing authority, union cemetery, joint
hospital, and institutional commissary employees shall be held on
the first Monday in October, 1945, and on the first Monday in
October in each fourth year thereafter. The election of the
state
employee member of the board and the municipal employee
member of
the board shall be held on the first Monday in October,
1946, and
on the first Monday in October in each fourth year
thereafter.
The
election of the initial university-college
employee member of
the
board shall be held on the first Monday in
October, 1978, and
elections for subsequent university-college
employee members of
the board shall be held on the first Monday
in October in each
fourth year thereafter. (B) The term of office of the retirant member of the
public
employees retirement board shall be for four years
beginning on
the first day of January following the election.
The election of
the initial retirant member of the board shall be
held on the
first Monday in October, 1978, and elections for
subsequent
retirant members of the board shall be held on the
first Monday in
October in each fourth year thereafter. (C) All elections for employee members of the public
employees retirement board shall be held under the direction of
the board. Any member of the public employees retirement system,
except a member who is receiving a disability benefit under this
chapter, is eligible for election as an employee member of the
board to represent the employee group that includes
the member,
provided that the member has been nominated by a petition
signed
by at
least five hundred members of the employee group to be
represented and further provided that there shall be not less
than
twenty such signers from each of at least ten counties of
the
state. The name of any member so nominated shall be placed
upon
the ballot by the board as a regular candidate. Names of
other
eligible candidates may, at any election, be substituted
for the
regular candidates by writing such names upon the
ballots. The
candidate who receives the highest number of votes
for a
particular employee member position on the board shall be
elected
to that office. (D) All elections for the retirant member of the public
employees retirement board shall be held under the direction of
the board. Any former member of the public employees retirement
system who is described in division
(E) of section 145.04 of the
Revised Code is
eligible for election as
the retirant member of
the board to represent recipients of age
and service
retirement, a
disability benefit, or benefits paid under
a
PERS defined
contribution plan
established under section 145.81
of the Revised
Code,
provided that such person has been nominated by a petition
signed
by at least two hundred fifty former members of the system
who
are recipients of age and service retirement, a disability
benefit, or benefits paid
under
a
PERS defined contribution
plan
established under section 145.81 of the
Revised Code, or any
combination of such recipients that
totals two hundred fifty.
The
petition shall contain the signatures of at least ten such
recipients from each of at least five counties
wherein recipients
of benefits from
the system reside. The name of any person nominated in this manner shall be
placed upon the ballot by the board as a regular candidate.
Names
of other eligible candidates may, at any election for the
retirant
member of the board, be substituted for the regular
candidates by
writing the names of such persons upon the ballot.
The candidate
who receives the highest number of votes for any
term as the
retirant member of the board shall be elected to
office.
Sec. 145.091. The public employees retirement system shall
administer the
PERS defined benefit plan
described in sections
145.201 to 145.70 of the
Revised Code and the
plan or
PERS defined
contribution plans
established under section 145.81 of the
Revised
Code.
Sec. 145.19. (A) Except as provided in division (D) of
this
section, an individual who becomes
employed in a
member of the
public
employees retirement system
position subject to this
chapter
on or after the date on which the
public employees
retirement board
first
establishes
a
PERS defined contribution
plan
under section
145.81
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
PERS defined
benefit
plan
described in sections 145.201 to 145.79 of the
Revised
Code
or
one
of the
plans established under section 145.81
of the
Revised Code
a PERS defined contribution plan. If a form
evidencing an
election
under this
section is not
on file with
received by the
employer at the end of
public employees retirement system not
later than the last day of the
one-hundred-eighty-day period,
the
individual is deemed to have
elected to
participate in the
PERS
defined benefit plan
described in sections 145.201
to 145.79
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
system. (C) An election under this section shall take effect on the
date
employment began and, except as provided in section 145.814
of the Revised Code or rules governing the PERS defined benefit
plan, is irrevocable on receipt by the
employer
system. (D) An individual is ineligible to make an election under
this
section if one 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
145.201 to 145.79 of the Revised Code or a PERS
retirant
or other system retirant,
as
those terms are defined in section
145.38 of the Revised Code, or is retired under section 145.383 of
the Revised Code. (2)
An election to participate
The individual is
participating or has elected to participate in an alternative
retirement
plan
under section
3305.05 of the Revised Code
is in
effect for
employment covered by
the system
and the employment is
in a position that is subject to
division (E) of
that section. (3)
The individual is a contributor who, as of the last day
of the month prior to the date employment begins, has five or more
years of total service credit.
(4) The individual is employed in a position covered under
this chapter to which section 145.193 of the Revised Code applies. (5) The individual is a
PERS law enforcement officer
or
Hamilton county municipal court bailiff.
Sec. 145.191. (A)
A member of the
Except as provided in
division (E) of this section, a public employees
retirement
system, other than a member who is a
PERS law
enforcement
officer,
member or contributor who, as of the
last day of the month
immediately
preceding the date on which the
system
public
employees retirement board first establishes
a
PERS defined
contribution
plan
under
section 145.81
of the Revised Code, has
less than five
years of
total
service credit is
eligible to make
an election
under this
section.
A member or
contributor who is
employed in more than one position subject to
this chapter is
eligible to make only one election. The election
applies to all
positions subject to this chapter. Not later than one hundred eighty days after the day the
board
first establishes
one or more plans under section 145.81
of
the Revised Code
a PERS defined contribution plan, an
eligible
member
or contributor may elect to
participate in
a
PERS defined
contribution plan
established under that section. If
a form
evidencing an election is not
made
received by the system not
later than the last day of the one-hundred-eighty-day period,
a
member
or contributor
to whom this section applies
is deemed to
have elected to
continue participating in the
PERS defined benefit
plan
described in sections 145.201
to 145.79 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;
plan elected both
of the following:
(a) Any employer contributions attributable to the member
for the period beginning on the day the board first established a
PERS defined contribution plan;
(b) All accumulated contributions attributable to the member
or contributor.
(2) Cancel all service credit and eligibility for any
payment,
benefit, or right under the
PERS defined benefit plan
described in sections
145.201 to
145.79 of the Revised Code. (D) An
election under this section
shall be
is effective as
of the date the board first established a PERS defined
contribution plan and, except as
provided in section 145.814 of
the Revised Code or rules governing the PERS defined benefit plan,
is irrevocable on
receipt by the
system.
(E) An election may not be made under this section by a
member or contributor who is either of the following:
(1) A PERS retirant who is a member under division (C) of
section 145.38 of the Revised Code; (2) A PERS law enforcement officer or a Hamilton county
municipal court bailiff.
Sec. 145.192.
A
Except as provided in section 145.814 and in
division (C) of section 145.82 of the Revised Code, a member of
the public employees retirement system
who elects to participate
in
a
PERS defined contribution plan
established under section
145.81
of the Revised
Code shall be ineligible for any benefit or
payment under
sections 145.201 to 145.79 of the Revised Code
the
PERS defined benefit plan and
shall be forever
barred from
claiming or purchasing service credit
with the system or any other
Ohio state retirement system, as
defined in section 145.30 of the
Revised Code, for service covered
by the
election.
Sec. 145.193. Except as provided in division (E) of section
3305.05 of the Revised Code, an election made or deemed to have
been made under section 145.19 or 145.191 of the Revised Code
applies to all positions subject to this chapter for which the
member is contributing under section 145.47 or 145.85 of the
Revised Code. A member who terminates employment in all positions
subject to this chapter and later becomes employed in a position
subject to this chapter may make an election under section 145.19
of the Revised Code as provided by that section.
Sec. 145.20. (A) Any elective official of the state of Ohio
or
of any political subdivision thereof having employees in the
public employees retirement system shall be considered as an
employee of the state or such political subdivision, and may
become a member of the system upon application to the public
employees retirement board, with all the rights, privileges, and
obligations of membership.
Service
An elective official who
becomes a member of the system on or after the date the public
employees retirement board first establishes a PERS defined
contribution plan shall make an election pursuant to section
145.19 of the Revised Code not later than one hundred eighty days
after applying for membership in the system. The election is
effective as of the date the official applies for membership and
is irrevocable on receipt by the system. If a form evidencing an
election is not received by the system not later than the last day
of the one-hundred-eighty-day period, the official is deemed to
have elected to participate in the PERS defined benefit plan.
(B) Service as any such elective official
by any member of
the system rendered prior to January 1, 1935,
shall be included as
prior service, provided the member
has
completed
does both of the
following: (1) Completes three years of
contributing service, or the
equivalent
thereof, in the public
employees retirement system
subsequent to
the date that membership
is established; (2) Participates in the PERS defined benefit plan or a PERS
defined contribution plan with definitely determinable benefits. (C) Credit for service between January 1, 1935, and the date
that
membership is established, except service as an elective
official
that was subject to the tax on wages imposed by the
"Federal
Insurance Contributions Act," 68A Stat. 415 (1954), 26
U.S.C.A.
3101, as amended, may be secured by the elective
official
provided
the elective official
pays
does all of the following: (1) Pays into the
employees' savings fund an
amount
determined by applying the member contribution rate in
effect at
the time of payment to the earnable salary of the
member
during
all periods of service after January 1, 1935,
covered by
this
chapter, for
which contributions have not been paid, plus
interest
on such
amount compounded annually at a rate to be
determined by
the
board, and completes; (2) Completes one and one-half years of
contributing
membership in the public employees retirement system
subsequent
to
the date membership was established.
The;
(3) Participates in the PERS defined benefit plan or a PERS
defined contribution plan with definitely determinable benefits. A member may
choose to
purchase
in any one payment only part
of
such
the credit
in any one payment
the member is eligible to
purchase.
The public
employees retirement board shall determine
the amount
and manner
of payment
of such contributions. In the
event of
death or
withdrawal from service, the payment into the
employees'
savings
fund for such service credit shall be
considered as
accumulated
contributions of the member.
Sec. 145.22. (A) The public employees retirement board
shall
have prepared annually by or under the supervision of an
actuary an actuarial
valuation of the pension assets, liabilities,
and funding requirements of the
public employees retirement system
as established pursuant to this
chapter. The actuary shall
complete the valuation in
accordance with actuarial standards of
practice promulgated by the
actuarial standards board of the
American
academy of actuaries and prepare a report of the
valuation. The report shall
include all of the following: (1) A summary of the benefit provisions evaluated; (2) A summary of the census data and financial information
used in the
valuation; (3) A description of the actuarial assumptions, actuarial
cost method,
and asset valuation method used in the valuation,
including a statement of the
assumed rate of payroll growth and
assumed rate of growth or decline in the
number of members
contributing to the retirement system; (4) A summary of findings that includes a statement of the
actuarial
accrued pension liabilities and unfunded actuarial
accrued pension
liabilities; (5) A schedule showing the effect of any changes in the
benefit
provisions, actuarial assumptions, or cost methods since
the last annual
actuarial valuation; (6) A statement of whether contributions to the retirement
system are
expected to be sufficient to satisfy the funding
objectives established by the
board. The board shall submit the report to the Ohio retirement
study
council and
the standing committees of the house of
representatives and the senate with
primary responsibility for
retirement legislation not later than the first day
of September
following the year for which the
valuation was made. (B) At such time as the public employees retirement board
determines, and at
least once in each
five-year period, the board
shall have prepared by or
under the supervision of an actuary an
actuarial
investigation of the mortality, service, and other
experience of the members,
retirants, contributors, and
beneficiaries of the system to update the
actuarial assumptions
used in the actuarial valuation
required by division (A) of this
section. The
actuary shall prepare a report of the actuarial
investigation. The report
shall be prepared and any recommended
changes in actuarial assumptions shall
be made in accordance with
the actuarial standards of practice promulgated by
the actuarial
standards board of the American
academy of actuaries. The report
shall include all of the following: (1) A summary of relevant decrement and economic assumption
experience
observed over the period of the investigation; (2) Recommended changes in actuarial assumptions to be used
in
subsequent actuarial valuations required by division
(A) of
this section; (3) A measurement of the financial effect of the recommended
changes in
actuarial assumptions. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary responsibility for
retirement legislation not later than the first day
of November
following the last fiscal year of the period the report covers. (C) The board may at any time request the actuary to make
any studies or actuarial valuations to determine the
adequacy of
the
contribution rate
determined under section
145.48 of the
Revised Code, and those rates may be adjusted
by the board, as
recommended by the actuary, effective as of the first of any
year
thereafter. (D) The board shall have prepared by or under the
supervision of an actuary an actuarial analysis of any introduced
legislation
expected to have a measurable financial impact on the
retirement system. The
actuarial analysis shall be completed in
accordance with the actuarial
standards of practice promulgated by
the actuarial standards board of the
American academy of
actuaries. The actuary
shall prepare a report of the actuarial
analysis, which shall include all of
the following: (1) A summary of the statutory changes that are being
evaluated; (2) A description of or reference to the actuarial
assumptions and
actuarial cost method used in the report; (3) A description of the participant group or groups
included in the
report; (4) A statement of the financial impact of the legislation,
including
the resulting increase, if any, in the employer normal
cost percentage; the
increase, if any, in actuarial accrued
liabilities; and the per cent of payroll
that would be required to
amortize the increase in actuarial accrued
liabilities as a level
per cent of covered payroll for all active members over
a period
not to exceed thirty years; (5) A statement of whether the scheduled contributions to
the system
after the proposed change is enacted are expected to be
sufficient to satisfy
the funding objectives established by the
board. Not later than sixty days from the date of introduction of
the
legislation, the board shall submit a copy of the actuarial
analysis to the
legislative budget office of the legislative
service commission, the standing
committees of the house of
representatives and the senate with primary
responsibility for
retirement legislation, and the
Ohio retirement study council. (E) The board shall have
prepared annually a report giving a
full accounting of the
revenues and costs relating to the
provision of benefits under
sections 145.325 and 145.58 of the
Revised Code. The report shall be made as
of December 31, 1997,
and the thirty-first day of
December of each year
thereafter. The
report shall include the following: (1) A description of the statutory authority for the
benefits provided; (2) A summary of the benefits; (3) A summary of the eligibility requirements for the
benefits; (4) A statement of the number of participants eligible for
the
benefits; (5) A description of the accounting, asset valuation, and
funding method used to provide the benefits; (6) A statement of the net assets available for the
provision of the benefits as of the last day of the fiscal
year; (7) A statement of any changes in the net assets
available
for the provision of benefits, including participant and
employer
contributions, net investment income, administrative
expenses, and
benefits provided to participants, as of the last day
of the
fiscal year; (8) For the last six consecutive fiscal years, a schedule
of
the net assets available for the benefits, the
annual cost of
benefits, administrative expenses incurred, and
annual employer
contributions allocated for the provision of
benefits; (9) A description of any significant changes that affect
the
comparability of the report required under this
division; (10) A statement of the amount paid under division
(D)(C) of
section
145.58 of the Revised Code. The board shall submit the report to the Ohio retirement
study
council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirtieth day of
June
following the year for which the report was made.
Sec. 145.23. The funds hereby created are the employees'
savings fund, the employers' accumulation fund, the annuity and
pension reserve fund, the income fund, the survivors' benefit
fund, the defined contribution fund, and the expense fund. (A) The employees' savings fund is the fund in which shall
be accumulated contributions from the earnable salaries of
contributors for the purchase of annuities or retirement
allowances. The accumulated contributions of a contributor returned to
the contributor upon withdrawal, or paid to
the contributor's
estate or designated
beneficiary in the event of death, shall be
paid from the
employees' savings fund. Any accumulated
contributions forfeited
by failure of a member, or a member's
estate, to claim the
same, shall
be transferred from the
employees' savings fund to the income
fund. The accumulated
contributions of a contributor shall be
transferred from the
employees' savings fund to the annuity and
pension reserve fund in
the event of the contributor's
retirement. (B) The employers' accumulation fund is the fund in which
shall be accumulated the reserves for the payment of all pensions
and disability benefits payable as provided in this chapter. The
amounts paid by any employer under section 145.48
of the
Revised
Code shall be
credited to the employers' accumulation fund. Any payments made into the employers' accumulation fund by
a
member as provided in section 145.31 of the Revised Code shall
be
refunded to such member under the conditions specified in
section
145.40 of the Revised Code. Upon the retirement of a contributor, the full amount of
the
contributor's pension reserve shall be transferred from
the
employers'
accumulation fund to the annuity and pension reserve
fund. (C) The annuity and pension reserve fund is the fund from
which shall be paid all pensions, disability benefits, annuities,
and benefits in lieu thereof, because of which reserves have been
transferred from the employees' savings fund and the employers'
accumulation fund. Any
contributor
member participating in the PERS defined
benefit plan may deposit in the employees' savings fund,
subject
to rules established by the public
employees retirement
system,
additional
amounts, and, at
the time of age and service
retirement, shall receive in return
therefor, at the
contributor's
participant's
option, either an annuity
having a reserve equal
to
the amount
deposited or a cash refund of such amounts together
with such
interest as may have been allowed by the
board.
Such
deposits for
additional annuity together with such interest
as may
have been
allowed by the board
at the end of each calendar year
shall be
refunded in the event
of death prior to retirement or
withdrawal
of accumulated
contributions as provided in sections
145.40 and
145.43 of the
Revised Code or upon application of the
contributor
prior to age
and service retirement. Any additional deposits that were made under this section by
a member who elects under section 145.191 of the Revised Code to
participate in a PERS defined contribution plan shall be credited
to the defined contribution plan elected by the member under that
section. For deposits received in a calendar year,
interest shall be
earned beginning on the first day of the calendar year next
following and ending on the last day of that year,
except that in
the case of a
payment under this division
made prior to the last
day of a year, interest shall be earned ending on the
last day of
the month prior to the date of payment.
The board shall credit
interest at the end of the calendar year in which it is
earned. (D) The income fund is the fund from which interest is
transferred and credited on the amounts in the funds described in
divisions (B), (C), and (F) of this section, and is a contingent
fund from which the special requirements of the funds may be paid
by transfer from this fund. All income derived from the
investment of the funds of the system,
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
Chapter
145. of the Revised Code, shall be paid by transfers of
amounts
from the income fund to such fund or funds. If the
amount in the
income fund is insufficient at any time to meet the
amounts
payable to the funds described in divisions
(C) and (F) of this
section, the amount of the
deficiency shall be transferred from
the
employers' accumulation fund. The system may accept gifts
and
bequests. Any gifts or
bequests, any
funds which may be
transferred from the employees'
savings fund by reason of lack of
a claimant, 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 income
fund. (E) The expense fund is the fund from which shall be paid
the expenses of the administration of this chapter, exclusive of
amounts payable as retirement allowances and as other benefits. (F) The survivors' benefit fund is the fund from which
shall
be paid dependent survivor benefits provided by section
145.45 of
the Revised Code. (G) The defined contribution fund is the fund in
which
shall
be accumulated the contributions deducted from the earnable salary
of
members participating in
a
PERS defined contribution plan
established under section
145.81 of the Revised Code, as
provided
in
section 145.85 of the
Revised Code, together with any
earnings
and
employer
contributions, as provided in section 145.86 of the
Revised Code,
credited thereon. The defined contribution
fund is
the fund from
which shall be paid all benefits provided under
a
PERS defined contribution plan
established
under section
145.81 of
the Revised Code.
Sec. 145.27. (A)(1) As used in this division, "personal
history record"
means information maintained by the public
employees retirement board
on an individual who is 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
public employees
retirement system,
or other information the board
determines to be confidential. (2) The records of the board shall be open to public
inspection, except
for
that 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 145.16 of the
Revised Code; (b) The amount of a monthly allowance or benefit paid to
the
individual; (c) The individual's personal history record. (B) All medical reports and recommendations required by
this
chapter 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
from the individual or the
individual's
agent, or when necessary for the proper
administration of the fund, to the board assigned physician. (C) Any person who is a member or contributor of the
system
shall be furnished with a statement of the amount to the
credit of
the individual's account upon
written request. The
board is not
required to answer more than one such request of a
person in any
one year. The board may issue annual statements of
accounts to
members and contributors. (D) Notwithstanding the exceptions to public inspection in
division (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
pursuant to Chapter 3119., 3121., 3123., or 3125. 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, contributors, former contributors,
retirants, 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 member 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.
(5) The system shall comply with orders issued under section
3105.87 of the Revised Code.
On the written request of an alternate payee, as defined in
section 3105.80 of the Revised Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts payable to the alternate payee under an order issued under
section 3105.171 or 3105.65 of the Revised Code. (E) A statement that contains information obtained from
the
system's records that is signed by the executive director or an
officer of
the 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. 145.35. (A) As used in this section,
"on-duty
illness
or injury" means an illness or injury that occurred
during or
resulted from performance of duties under the direct
supervision
of a member's appointing authority. (B) The public employees retirement system shall provide
disability coverage to each member who has at least five years of
total service credit and disability coverage for on-duty illness
or injury to each member who is a
PERS law enforcement officer
or
Hamilton county municipal court bailiff,
regardless of length of
service. Not later than October 16, 1992, the public employees
retirement board shall give each person who is a member on July
29, 1992,
the opportunity to elect disability coverage either
under section 145.36 of
the Revised Code or under section 145.361
of the Revised Code. The board
shall mail notice of the election,
accompanied by an explanation
of the coverage under each of the
Revised Code sections and a
form on which the election is to be
made, to each member at the
member's
last known address. The
board shall also provide the explanation
and form to any member on
request. Regardless of whether the member actually receives notice of
the right to make an election, a member who fails to file a
valid
election under this section shall be considered to have
elected
disability coverage under section 145.36 of the Revised
Code. To
be valid, an election must be made on the form provided
by the
retirement board, signed by the member, and filed with the
board
not later than one hundred eighty days after the date the
notice
was mailed, or, in the case of a form provided at the
request of a
member, a date specified by rule of the retirement
board. Once
made, an election is irrevocable, but if the member
ceases to be a
member of the retirement system, the election is
void. If a
person who makes an election under this section also
makes an
election under section 3307.62 or 3309.39 of
the Revised
Code, the
election made for the system that pays a disability
benefit to
that person shall govern the benefit. Disability coverage shall be provided under section 145.361
of the Revised Code for persons who become members after July
29,
1992,
and for members who elect under this division to be covered
under section
145.361 of the Revised Code. The retirement board may adopt rules governing elections
made
under this division. (C) Application for a disability benefit may be made by a
member, by a person acting in the member's behalf, or by the
member's
employer, provided the member has disability coverage
under
section 145.36 or 145.361 of the Revised Code and is not
receiving a disability benefit under any other Ohio state or
municipal retirement program. Application must be made within
two
years from the date the member's contributing service
terminated
or the date the member ceased to make contributions to the PERS
defined benefit plan under section 145.814 of the Revised Code,
unless the retirement board determines that the
member's medical
records demonstrate conclusively that at the
time the two-year
period expired, the member was physically or
mentally
incapacitated for duty and unable to make an
application.
Application may not be made by or for any person
receiving age and
service retirement benefits under section
145.33, 145.331, 145.34,
or 145.37 of the Revised Code or any
person who, pursuant to
section 145.40 of the Revised Code, has
been paid the accumulated
contributions standing to the credit of
the person's individual
account in the employees' savings
fund. The application shall be
made on a form provided by the retirement
board. (D) The benefit payable to any member who is approved for
a
disability benefit shall become effective on the first day of
the
month immediately following the later of the following: (1) The last day for which compensation was paid; (2) The attainment of eligibility for a disability
benefit. (E) Medical examination of a member who has applied for
a
disability benefit shall be conducted by a competent
disinterested
physician or physicians selected by the board to
determine whether
the member is mentally or physically
incapacitated for the
performance of duty by a disabling
condition either permanent or
presumed to be permanent.
The disability must have occurred since
last becoming a member or
have increased since last becoming a
member to such extent as to
make the disability permanent or
presumed to be permanent. A
disability is presumed to be
permanent if it is expected to last
for a continuous period of not
less than twelve months following
the filing of the application. If the physician or physicians determine that the member
qualifies for a disability benefit, the board concurs with
the
determination, and the member agrees to medical
treatment as
specified in division (F) of this section,
the member shall
receive a disability benefit
under section 145.36 or 145.361 of
the Revised Code. The action
of the board shall be final. (F) The public employees retirement board shall adopt
rules
requiring a disability
benefit recipient, as a condition of
continuing to receive a disability
benefit, to agree in writing to
obtain any medical
treatment recommended by the board's physician
and submit medical reports
regarding the treatment.
If the board
determines that a disability benefit recipient is not
obtaining
the medical treatment or the board does not receive a required
medical report, the disability benefit shall
be suspended until
the treatment is
obtained, the report is received
by the board, or
the board's physician certifies that the
treatment is no longer
helpful or advisable. Should the
recipient's failure to obtain
treatment or submit a medical report continue
for one year, the
recipient's right to the disability benefit shall be
terminated as
of the effective date of the original suspension. (G) In the event an employer files an application for a
disability benefit as a result of a member having been separated
from service because the member is considered to be mentally
or
physically incapacitated for the performance of the
member's
present duty,
and the physician or physicians selected by the
board reports to
the board that the member is physically and
mentally capable of
performing service similar to that from which
the member was
separated
and the board concurs in the report, the
board shall so certify
to the employer and the employer shall
restore the member to the
member's
previous position and salary or
to a similar position and salary.
Sec. 145.38. (A) As used in this section and section
145.384 of the Revised Code: (1)
"PERS retirant" means a former member of the public
employees retirement system who is receiving one of the
following: (a) Age and service retirement benefits under section
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; (b) Age and service retirement benefits paid by the public
employees retirement system under section 145.37 of the Revised
Code; (c) Any benefit paid
by the system under
a
PERS defined
contribution plan
established
under
section 145.81 of the Revised
Code. (2)
"Other system retirant" means both of the following: (a) A member or former member of the Ohio police and
fire
pension fund, state teachers retirement system,
school employees
retirement system, state highway patrol
retirement system, or
Cincinnati retirement system who is
receiving age and service or
commuted age and service retirement
benefits or a disability
benefit from a system of which the
person is a member or former
member; (b) A member or former member of the public employees
retirement system who is receiving age and service retirement
benefits or a disability benefit under section 145.37 of the
Revised Code paid by the school employees retirement system or
the
state teachers retirement system. (B)(1) Subject to this section, a PERS retirant or other
system retirant may be employed by a public employer. If so
employed, the PERS retirant or other system retirant shall
contribute to the public employees retirement system in
accordance
with section 145.47 of the Revised Code, and the
employer shall
make contributions in accordance with section
145.48 of the
Revised Code. (2) A public employer that employs a PERS retirant or
other
system retirant, or enters into a contract for services as
an
independent contractor with a PERS retirant
shall notify the
retirement board of the employment or contract not
later than the
end of the month in which the employment or contract
commences.
Any overpayment of benefits to a PERS retirant by the
retirement
system resulting from delay or failure of the employer
to give the
notice shall be repaid to the retirement system by
the employer. (3) On receipt of notice from a public employer that a
person who is an other system retirant has been employed, the
retirement system shall notify the retirement system of which the
other system retirant was a member of such employment. (4)(a) A PERS retirant who has received a retirement
allowance for less than two months when employment subject to
this
section commences shall forfeit the retirement allowance for
any
month the PERS retirant is employed prior to the
expiration of the
two-month period. Service and contributions for
that period shall
not be included in calculation of any benefits
payable to the PERS
retirant and those contributions shall be
refunded on the
retirant's death or termination of the
employment. (b) An 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 any month
the
other
system retirant is employed prior to the expiration of the
two-month period. Service
and contributions for that period
shall
not be included in the
calculation of any benefits payable
to the
other system retirant
and those contributions shall be
refunded on
the retirant's
death or termination of the employment. (c) Contributions made on compensation earned after the
expiration of the two-month period shall be used in the
calculation of the
benefit or payment due under section 145.384 of
the Revised Code. (5) On receipt of notice from the Ohio police and
fire
pension fund, school employees retirement
system,
or state
teachers retirement system of the re-employment of a
PERS
retirant, the public employees retirement system shall not pay,
or
if paid, shall recover, the amount to be forfeited by the PERS
retirant in accordance with section 742.26, 3307.35,
or 3309.341
of the Revised Code. (6) A PERS retirant who enters into a contract to provide
services as an independent contractor to the employer by which
the
retirant was employed at the time of retirement or, less
than two
months after the retirement allowance commences, begins
providing
services as an independent contractor pursuant to a contract with
another public employer, shall forfeit the pension portion of
the
retirement benefit for the period beginning the first day of the
month following the month in which the services begin and ending
on the first day of the month following the month in which the
services end. The annuity portion of the retirement allowance
shall be suspended on the day services under the contract begin
and shall accumulate to the credit of the retirant to be paid in
a
single payment after services provided under the contract
terminate. A PERS retirant subject to division (B)(6) of this
section shall not contribute to the retirement system and shall
not become a member of the system. (7) As used in this division,
"employment" includes service
for which a
PERS retirant or other system retirant, the retirant's
employer, or
both, have waived any earnable salary for the
service. (C)(1) Except as provided in division (C)(3) of this
section, this division applies to both of the following: (a) A PERS retirant who, prior to September 14, 2000,
was
subject to division (C)(1)(b) of this
section as that
division
existed immediately prior to September
14, 2000,
and
has not
elected
pursuant to Am. Sub. S.B. 144 of the 123rd general
assembly to
cease to be subject to
that division; (b) A PERS retirant to whom both of the following apply: (i) The retirant held elective office in this state, or in
any municipal corporation, county, or other political subdivision
of this
state at the time of retirement under this chapter. (ii) The retirant was elected or appointed to the same
office for the remainder of the term or the term immediately
following the term during which the retirement occurred. (2) A PERS retirant who is subject to this division is a
member of the public employees retirement system with all the
rights,
privileges, and obligations of membership, except that the
membership does
not include survivor benefits provided pursuant to
section 145.45 of the
Revised Code or, beginning on the ninetieth
day after September 14, 2000, any amount
calculated under section
145.401 of the Revised
Code. The pension portion of the PERS
retirant's retirement
allowance shall be forfeited until the first
day of the first month following
termination of the employment.
The annuity portion of the retirement
allowance shall accumulate
to the credit of the
PERS retirant to
be paid in a single payment
after termination of the employment.
The retirement allowance
shall resume on the first day of the
first month following
termination of the employment. On
termination of the employment,
the PERS retirant shall elect to
receive either a refund of the
retirant's contributions to
the retirement
system during the
period of employment subject to this section or
a supplemental
retirement allowance based on the retirant's
contributions and
service credit for that period of employment. (3) This division does not apply to any of the following: (a) A PERS retirant elected to office who, at the time of
the election for the retirant's current term, was not retired but,
not less than ninety days prior to the election for the term,
filed a written declaration of intent to retire before the end of
the term with the board of elections of the county in which
petitions for nomination or election to the office were filed; (b) A PERS retirant elected to office who, at the time of
the election for the retirant's current term, was a retirant and
had been retired for not less than ninety days; (c) A PERS retirant appointed to office who, at the time of
appointment to the retirant's current term, notified the person or
entity making the appointment that the retirant was already
retired or intended to retire before the end of the term. (D)(1) Except as provided in division (C) of this
section,
a PERS
retirant or other system retirant subject to
this section
is not
a member of the public employees
retirement system, and,
except as
specified in this section does not
have any of the
rights,
privileges, or
obligations of membership. Except as
specified in
division
(D)(2) of this
section, the retirant is not
eligible to
receive health, medical,
hospital, or surgical
benefits under
section 145.58 of the Revised Code for employment
subject to this
section.
(2) A PERS retirant subject to this
section shall receive
primary health, medical,
hospital, or surgical insurance coverage
from the retirant's employer, if the
employer provides coverage to
other employees performing
comparable work. Neither the employer
nor the PERS retirant may
waive the employer's coverage, except
that the PERS retirant may
waive the employer's coverage if the
retirant has coverage comparable to
that provided by the employer
from a source other than the
employer or the public employees
retirement system. If a claim
is made, the employer's coverage
shall be the primary coverage
and shall pay first. The benefits
provided under section 145.58
of the Revised Code shall pay only
those medical expenses not
paid through the employer's coverage or
coverage the PERS
retirant receives through a source other than
the retirement
system. (E) If the disability benefit of an other system retirant
employed under this section is terminated, the retirant shall
become a member of the public 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
such person, after the termination of the
disability benefit,
earns two years of service credit under this
system or under the
Ohio police and fire
pension fund, state
teachers
retirement system, school employees retirement system, or
state
highway patrol retirement system, the person's prior
contributions as an
other system retirant under this section shall
be included in the person's
total service credit as a public
employees retirement system
member, and the person 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. (F) This section does not affect the receipt of benefits
by
or
eligibility for benefits of any person who on August 20,
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. (G) The public employees retirement board may adopt rules
to
carry out this section.
Sec. 145.384. (A) As used in this section, "PERS retirant"
means
a
PERS retirant who is not subject to division (C) of
section
145.38 of the Revised Code. For purposes of this section,
"PERS
retirant"
also includes
a
both of the following: (1) A member who retired under section 145.383 of
the Revised
Code; (2) A retirant whose retirement allowance resumed under
section 145.385 of the Revised Code. (A)(B) An other system retirant or PERS retirant who has
made
contributions under section 145.38 or 145.383 of the Revised
Code
or, in the case of a retirant described in division (A)(2) of
this section, section 145.47 of the Revised Code may file an
application with the public employees retirement
system for a
benefit under
this section. The
benefit shall
consist of
a single
life
an annuity
having
a reserve equal to the
amount of the
retirant's accumulated
contributions for the period
of employment,
other than the
contributions
excluded pursuant to
division
(B)(4)(a) or
(b) of
section 145.38 of the Revised Code,
and an
equal amount of
the
employer's contributions. The PERS
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.
A retirant who elects to receive
a monthly annuity
shall select
one of the following as the plan of
payment:
(1) The retirant's single life annuity;
(2) The actuarial equivalent of the retirant's single life
annuity in a lesser amount for life and continuing after death to
a surviving beneficiary designated at the time the plan of payment
is selected. (B)(C)(1) The death of a spouse or other designated
beneficiary
following selection of a plan of payment under
division (B)(2) of
this section cancels that plan of payment. The
PERS retirant or
other system retirant shall receive the
equivalent of the
retirant's single life annuity, as determined by
the public
employees retirement board, effective the first day of
the month
following receipt by the board of notice of the death.
(2) On divorce, annulment, or marriage dissolution, a PERS
retirant or other system retirant receiving a benefit under
division (B)(2) of this section under which the beneficiary is the
spouse may, with the written consent of the spouse or pursuant to
an order of the court with jurisdiction over the termination of
the marriage, elect to cancel the plan and receive the equivalent
of the member's single life annuity as determined by the
retirement board. The election shall be made on a form provided
by the board and shall be effective the month following its
receipt by the board.
(D) Following a marriage or remarriage, a PERS retirant or
other system retirant who is receiving a benefit under division
(B)(1) of this section may elect a new plan of payment under this
section based on the actuarial equivalent of the retirant's single
life annuity as determined by the board. The plan shall be
effective the first day of the month following receipt by the
board of an application on a form approved by the board. (E) A benefit payable under this section shall commence
on
the latest of the following: (1) The last day for which compensation for all employment
subject to section 145.38
or, 145.383, or 145.385 of the Revised
Code was paid; (2) Attainment by the PERS retirant or other system
retirant
of age sixty-five; (3) If the PERS retirant or other system retirant was
previously employed under section 145.38
or, 145.383, or 145.385
of the Revised
Code and is receiving or
previously received a
benefit under this
section, completion of
a period of twelve
months since the
effective date of the last
benefit under this
section. (C)(F)(1) If a PERS retirant or other system retirant
dies
while employed in employment subject to section 145.38
or,
145.383, or 145.385
of the Revised Code, a lump
sum payment
calculated in accordance
with division
(A)(B) of this
section
shall be paid to the retirant's
beneficiary under
division
(D)(G)
of this section.
(2) If at the time of death a PERS 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
(D)(G) of this
section. (D)(G) A PERS retirant or other system retirant employed
under
section 145.38
or, 145.383, or 145.385 of the Revised Code
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 public
employees
retirement
board, signed by the PERS retirant or other
system
retirant, and
filed with the board prior to death. The
last
designation of
a beneficiary revokes all previous
designations.
The PERS
retirant's or other system retirant's
marriage, divorce,
marriage
dissolution, legal separation,
withdrawal of account,
birth of
a child, or adoption of a child
revokes all previous
designations. If there is no designated
beneficiary, the
beneficiary is the beneficiary determined under
division (D) of
section 145.43 of the Revised Code. If any
benefit payable under
this section due to the death of a PERS
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 income
fund and thereafter paid to the
beneficiary or the estate of the
PERS retirant or other system
retirant on application to the
board.
(E)(H) No amount received under this section shall be
included
in
determining an additional benefit under section
145.323 of the
Revised Code or any other
post-retirement benefit
increase.
Sec. 145.385. (A) A PERS retirant who made an election under
former section 145.381 of the Revised Code under which the annuity
portion of the retirant's retirement allowance was suspended and
the pension portion forfeited may have the entire retirement
allowance resume by giving notice to the public employees
retirement system. The notice must be given not later than ninety
days after the effective date of this section.
(B) The retirement allowance shall resume on the first day
of the month following receipt of notice by the retirement system.
(C) The annuity portion of the retirement allowance that has
accumulated to the retirant's credit shall be paid as a single
payment on the first day of the month following receipt of notice
by the retirement system.
(D) Contributions made by the retirant and employer during
the period of forfeiture and contributions made after the
retirement allowance resumes shall be left on deposit with the
system and used in the calculation of a benefit under section
145.384 of the Revised Code. Sec. 145.40. (A)(1) Subject to the provisions of section
145.57
of the Revised Code and except as provided in
section
145.402 of the Revised Code and division (B)
of this
section, if a
member elects to become exempt from
contribution to the public
employees retirement system pursuant
to
section 145.03 of the
Revised Code or ceases to be a public
employee for any cause other
than death, retirement, receipt
of a
disability benefit, or
current employment in a
position in which
the member has elected
to participate in an alternative
retirement
plan under section
3305.05 of the Revised Code, upon application
the public employees
retirement board shall pay the member the
member's accumulated
contributions, plus any applicable amount
calculated under
section 145.401 of the Revised Code, provided
that
all
both the
following apply: (a) Three months have elapsed since the
member's
public
service
subject to this chapter,
other than service exempted from
contribution pursuant to
section
145.03 of the Revised Code, was
terminated; (b) The member has not returned to
public service
subject to
this chapter, other
than service exempted from contribution
pursuant to section
145.03
of the Revised Code, during that
three-month period; (c) The member is not a member of the school employees
retirement system or the state teachers retirement system.
The payment of such accumulated contributions shall cancel
the total service credit of such member in the public employees
retirement system. (2) A member described in division (A)(1) of this
section
who is married at the time of application for payment and is
eligible for age
and service retirement under section 145.32,
145.33, 145.331, or
145.34 of the Revised Code shall submit with
the application
a written statement by the member's spouse
attesting that the spouse consents
to the payment of the member's
accumulated
contributions. Consent shall be valid only if it is
signed and witnessed
by a notary public. The board may waive the requirement of consent if the spouse
is
incapacitated or cannot be located, or for any other reason
specified by the
board. Consent or waiver is effective only with
regard to the spouse who is
the subject of the consent or waiver. (B) This division applies to any member who is employed in a
position in
which the member has made an election under section
3305.05 of the Revised Code and due to
the election ceases to be a
public
employee for purposes of that position. Subject to section 145.57 of the Revised Code, the public
employees
retirement system shall
do the following: (1) On receipt of a certified copy of a form evidencing an
election under
section 3305.05
of the Revised Code, pay to the
appropriate provider, in
accordance with section
3305.051 of the
Revised Code, the amount described in
section 3305.051 of the
Revised Code; (2) If a member has accumulated contributions, in addition
to
those subject to division (B)(1) of this section, standing to
the
credit of the member's individual account and is not otherwise
employed in a
position in which the member is considered a
public
employee for the purposes of that position,
pay, to the provider
the member selected pursuant to section
3305.05 of the Revised
Code, the member's accumulated
contributions. The payment shall
be made on the
member's application. (C) Payment of a member's accumulated contributions under
division (B) of this section cancels the member's total
service
credit in the public
employees retirement system.
A member whose
accumulated contributions are
paid to a
provider pursuant to
division (B) of this section is
forever barred from claiming or
purchasing service credit under the public
employees retirement
system for the period of
employment attributable to those
contributions.
Sec. 145.402. (A) Except as provided in division (B) of this
section, a member of the public employees retirement system who
has ceased to be a public employee under this chapter and is also
a member of either the state teachers retirement system or the
school employees retirement system, or both, may not withdraw the
member's accumulated contributions.
(B) On application, the public employees retirement board
shall pay a member described in division (A) of this section the
member's accumulated contributions if either of the following
applies:
(1) The member also withdraws the member's contributions
from the other system or systems.
(2) The member is a participant in a plan established under
section 3307.81 or 3309.81 of the Revised Code and has withdrawn
the member's contributions under plans described in sections
3307.50 to 3307.79 and 3309.18 to 3309.70 of the Revised Code.
Sec. 145.45. 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, a
beneficiary, as determined in this section or
section 145.43 of
the Revised Code, may elect to forfeit the
accumulated
contributions and to substitute certain other
benefits under
division (A) or (B) of this section. (A)(1) If a deceased member was eligible for a service
retirement benefit as provided in section 145.33, 145.331, or
145.34 of the Revised Code, a surviving spouse or other sole
dependent beneficiary
may elect to receive a monthly benefit
computed as the joint-survivor benefit designated as
"plan D" in
section 145.46 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,
except that a surviving spouse who is less than
sixty-five years
old may defer receipt of such benefit. Upon
receipt, the benefit
shall be calculated based upon the spouse's
age at the time of
first payment, and shall accrue regular
interest during the time
of deferral.
(2) Beginning on a date selected by the public employees
retirement board, which shall be not later than July 1, 2004, a
surviving spouse or other sole dependent beneficiary may elect, in
lieu of a monthly payment under division (A)(1) of this section, a
plan of payment consisting of both of the following: (a) A lump sum in an amount the surviving spouse or other
sole dependent beneficiary designates that constitutes a portion
of the allowance that would be payable under division (A)(1) of
this section; (b) The remainder of that allowance in monthly payments. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. The lump sum amount designated by the surviving spouse or
other sole dependent beneficiary under division (A)(2)(a) of this
section shall be not less than six times and not more than
thirty-six times the monthly amount that
would be payable to the
surviving spouse or other sole dependent
beneficiary under
division (A)(1) of this section and shall not result in a monthly
payment that is less than fifty per cent of that monthly amount. (B) If a deceased member had, except as provided in division
(B)(7) of this section, at least one and one-half
years
of
contributing service credit, with, except as provided in division
(B)(7) of this section, at least one-quarter
year of
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 145.36,
145.361, or
145.37 of the
Revised Code, qualified survivors
who elect to
receive monthly
benefits shall receive the greater of the benefits
provided
in
division (B)(1)(a) or (b)
and (4) of this section as
allocated in
accordance with
division (B)(5) 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% | | $250 |
| 2 | | 40
| |
400 |
| 3 | | 50
| |
500 |
| 4 | | 55
| |
500 |
| 5 or more | | 60 | |
500 |
| (b) Years of | Annual Benefit as a Per Cent | | Service | of Member's Final Average | | | Salary | | 20 | 29% |
| 21 | 33
|
| 22 | 37
|
| 23 | 41
|
| 24 | 45
|
| 25 | 48
|
| 26 | 51
|
| 27 | 54
|
| 28 | 57
|
| 29 or more | 60
|
(2)
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 if the
deceased member had ten or
more years of Ohio
service credit, or
regardless of age if caring for a
qualified child, or regardless
of age if adjudged physically or
mentally
incompetent. A spouse
of a member who died prior to August 27,
1970, whose eligibility
was determined at the member's death, and
who is physically or
mentally incompetent on or after August 20,
1976, shall be paid
the monthly benefit which that person would
otherwise receive when
qualified by age. (b) A qualified child is any
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; (ii) Regardless of age, is adjudged
physically or
mentally
incompetent at the time of the member's death.
(c) A qualified parent is a dependent parent aged sixty-five
or
older
or regardless of age if physically or mentally
incompetent, a
dependent parent whose eligibility was determined
by the member's
death prior to August 20, 1976, and who is
physically or mentally
incompetent on or after August 20, 1976,
shall be paid the
monthly benefit for which that person would
otherwise qualify. (3)
"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
making a living because of a physically or mentally disabling
condition shall meet the qualifications of this division. (4) Benefits to a qualified survivor shall terminate
upon
ceasing to meet eligibility requirements as provided in this
division, 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
September 16, 1998, 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 3307.66 or 3309.45 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)(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. All other qualifying
survivors shall
share equally in the benefit or remaining portion
thereof. (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 not
less than the
amount determined for the first
qualifying survivor in division
(B)(1)(a) of this section. (6) The beneficiary of a member who is also a member of
the
state teachers retirement system or of the school employees
retirement system, must forfeit the member's accumulated
contributions in those systems and in the public employees
retirement system, if the beneficiary takes a
survivor benefit.
Such benefit shall be exclusively governed by section
145.37 of
the Revised Code.
(7) The restriction that the deceased member have at
least
one and one-half years of contributing service credit, with
at
least one-quarter year of contributing service within the two
and
one-half years prior to the date of death, does not apply if
the
deceased member was contributing toward benefits under
division
(B) or (C) of section 145.33 of the Revised Code at the
time of
death. (C)(1) Regardless
of whether the member is survived by
a
spouse or designated beneficiary, if the public 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
145.561
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 145.43 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 145.43 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. The benefits shall be
effective on the first
day of the month immediately following the
termination. (D) The final average salary used in the calculation of a
benefit payable
pursuant to division (A) or (B) of this section to
a
survivor or beneficiary 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"). (E) 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 public employees' savings
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 145.43 of the Revised Code.
Sec. 145.46. (A) A retirement allowance calculated under
section 145.33, 145.331, or 145.34 of the Revised Code shall be
paid as provided in this section. If the member is eligible to
elect a plan of payment under this section, the election shall be
made on a form provided by the public employees retirement board.
A plan of payment elected under this section shall be effective
only if approved by the board, which shall approve it only if it
is certified by an actuary engaged by the board to be the
actuarial equivalent of the retirement allowance calculated under
section 145.33, 145.331, or 145.34 of the Revised Code. (B)(1) Unless the member is eligible to elect another plan
of payment, a member who retires under section 145.32, 145.331,
or
145.34 of the Revised Code shall receive a retirement
allowance
under "plan A," which shall consist of the actuarial
equivalent of
the member's retirement allowance determined
under section
145.33,
145.331, or 145.34 of the Revised Code in a lesser amount
payable
for life and one-half of such allowance continuing
after death to
the member's surviving spouse for
the life of the
spouse. A member may elect to receive the member's retirement
allowance
under a plan of payment other than "plan A" if the
member is not
married or either the member's spouse consents in
writing to the
member's
election of a plan of payment other than
"plan A"
or the board waives the requirement that the spouse
consent. An
application for retirement shall include an
explanation
of all of the following: (a) That, if the member is married, unless the
spouse
consents to another plan of payment, the member's
retirement
allowance will be paid under "plan
A," which consists of the
actuarial equivalent of the member's retirement allowance in a
lesser amount payable for life and one-half of the allowance
continuing after death to the surviving spouse for the life of
the
spouse; (b) A description of the alternative plans of
payment,
including all plans described in divisions (B)(2) and (3) of this
section, available with the consent of the spouse; (c) That the spouse may consent to another plan of
payment
and the procedure for giving consent; (d) That consent is irrevocable once notice of consent is
filed
with the board. Consent
shall be valid only if it is
signed, in writing, and
witnessed by
a notary public.
The
board may waive the requirement
of consent if
the
spouse is incapacitated or cannot be located or
for any other
reason specified by the board. Consent or
waiver is
effective only with regard to the spouse who is the subject of
the
consent or waiver. (2) A member eligible to elect to receive the member's
retirement
allowance under a plan of payment other than "plan A"
shall
receive the member's retirement allowance under
the plan
described in division (B)(3) of this section or one of the
following plans
elected at the time the member makes application
for
retirement: (a) "Plan B," which shall consist of an allowance
determined
under section 145.33, 145.331, or 145.34 of the
Revised Code; (b) "Plan C," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for life and one-half or some other
portion of the
allowance continuing after death to
the member's sole
surviving
beneficiary designated at the time of the member's
retirement,
provided that the amount payable to the beneficiary
does not
exceed the amount payable to the member; (c) "Plan D," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for life and continuing after
death
to a surviving
beneficiary designated at the time of
the member's retirement; (d) "Plan E," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for a certain period from the member's
retirement
date as elected by the member and approved by the
retirement
board, and on the member's death before the expiration of
that
certain
period the member's lesser retirement allowance payable
for
the remainder
of that period to the member's surviving
designated
beneficiary nominated
by written designation filed with
the retirement board. Should the nominated beneficiary designated in writing die
prior to the expiration of the guarantee period, then for the
purpose of completing payment for the remainder of the guarantee
period, the present value of such payments shall be paid to the
estate of the beneficiary last receiving. (3)(a) Beginning on a date selected by the retirement board,
which shall be not later than July 1, 2004, a member may elect to
receive a retirement allowance
under a plan of payment consisting
of both a lump sum in an amount
the member designates that
constitutes a portion of the member's
retirement allowance under a
plan described in division (B) of
this section and the remainder
as a monthly allowance under that
plan. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. (b) The lump sum designated by a member shall be not less
than six times and not more than thirty-six times the monthly
amount that would be payable to the
member under the plan of
payment elected under division (B)(3)(a)
of this section had the
lump sum not been elected and shall not result in a monthly
allowance that is less than fifty per cent of that monthly amount.
(4) An election under division
(B)(2) or (3) of this section
shall be made at the time the member
makes application for
retirement. (5) A member eligible to elect to receive the member's
retirement
allowance under a plan of payment other than "plan A"
because the
member
is unmarried who fails to make an election on
retirement shall
receive the member's retirement allowance under
"plan B." (C) If the retirement allowances, as a single life annuity
or payment plan as provided in this section, due and paid are in
a
total amount less than (1) the accumulated contributions, and
(2)
other deposits made by the member as provided by this chapter,
standing to the
credit of
the member at the time of retirement,
then the difference
between the total amount of the allowances
paid and the
accumulated contributions and other deposits shall be
paid to the
beneficiary provided under division (D) of section
145.43 of the
Revised Code. (D)(1) The death of a spouse or any designated beneficiary
following retirement shall cancel any plan of payment to provide
continuing lifetime benefits to the spouse or beneficiary and
return the retirant to the retirant's single lifetime
benefit
equivalent, as
determined by the board, to be effective the month
following
receipt by the board of notice of the death. (2) On divorce, annulment, or marriage dissolution, a
retirant receiving a retirement allowance under a plan that
provides for continuation of all or part of the allowance after
death for the lifetime of the retirant's
surviving spouse may,
with the
written consent of the spouse or pursuant to an order of
the
court with jurisdiction over the termination of the marriage,
elect to cancel the plan and receive the member's single
lifetime
benefit
equivalent as determined by the retirement board. The
election
shall be made on a form provided by the board and shall
be
effective the month following its receipt by the board. (E) Following a marriage or remarriage, a retirant who is
receiving the retirant's retirement allowance under "plan
B" may
elect a
new plan of payment under division (B)(1), (2)(b), or
(2)(c) of
this section based on the actuarial equivalent of the
retirant's single
lifetime benefit as determined by the board.
The
plan shall
become effective the first day of the month
following
receipt by
the board of an application on a form
approved by the
board. (F) Any person who, prior to July 24, 1990, selected an
optional plan of payment at retirement that provided for a return
to the single life benefit after the designated beneficiary's
death shall have the retirant's benefit adjusted to the
optional
plan
equivalent without such provision. (G) A retirant's receipt of the first month's retirement
allowance constitutes the retirant's final acceptance of the
plan
of payment
and may be changed only as provided in this chapter.
Sec. 145.56. The right of an individual to a pension,
an
annuity, or a retirement allowance itself, the right of an
individual
to any optional benefit,
any other right accrued or
accruing to any individual,
under this chapter, or
under any
municipal retirement system established subject to
this
chapter
under the
laws of this state or any charter, the various funds
created by
this chapter, or under such
municipal retirement
system, and all moneys,
investments, and
income from moneys or
investments 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
section
sections 145.57, 3105.171, 3105.65,
and 3115.32
and Chapters 3119., 3121., 3123., and 3125. of
the
Revised Code, shall not be subject to execution, garnishment,
attachment, the operation of bankruptcy or insolvency laws,
or
other process of law whatsoever, and shall be unassignable except
as
specifically provided in this chapter and
sections 3105.171,
3105.65,,, and 3115.32
and Chapters 3119., 3121.,
3123., and 3125.
of the Revised Code. Sec. 145.58. (A) As used in this section,
"ineligible
individual" means all of the following: (1) A former member receiving benefits pursuant to section
145.32, 145.33, 145.331, 145.34, or 145.46 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' service credit, exclusive of
credit
obtained pursuant to section 145.297 or 145.298 of the
Revised
Code, credit obtained after January 29, 1981, pursuant to
section
145.293 or 145.301 of the Revised Code, and credit
obtained after
May 4, 1992, pursuant to section 145.28 of the
Revised Code; (2) The spouse of the former member; (3) The beneficiary of the former member receiving
benefits
pursuant to section 145.46 of the Revised Code. (B) The public employees retirement board may enter into
agreements 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
age and service retirement or a disability
or survivor benefit
subscribing to the plan, or for PERS retirants
employed under
section 145.38 of the Revised Code, for coverage of
benefits in
accordance with division (D)(2) of section 145.38 of
the
Revised Code. Notwithstanding any other provision of this
chapter, the
policy or contract may also include coverage for any
eligible
individual's spouse and dependent children and for
any of
the individual's sponsored
dependents as the board determines
appropriate. If all
or any portion of the policy or contract
premium is to be paid by
any individual receiving age and service
retirement or a disability
or survivor benefit, the individual
shall, by written
authorization,
instruct the board to deduct the
premium agreed to be paid by
the individual
to the company,
corporation, or agency. 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 public employees retirement system. The
cost paid from the
funds of the system shall be
included in the
employer's
contribution rate provided by sections 145.48 and
145.51 of the
Revised Code. The board may by rule provide
coverage to
ineligible individuals if the coverage is provided at
no cost to
the retirement system. The board shall not pay or
reimburse the
cost for coverage under this section or section
145.325 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 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 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, pay monthly
to each recipient of service retirement, or a disability or
survivor benefit under the public employees retirement system who
is eligible for medical insurance coverage under part B of Title
XVIII of
"The Social Security Act," 79 Stat. 301 (1965), 42
U.S.C.A. 1395j, as amended, an amount equal to the basic premium
for such coverage, except that the board shall make no
such
payment to any ineligible individual.
(E)(D) The board shall establish by rule requirements for
the
coordination of
any coverage, payment, or benefit provided
under
this section or section
145.325 of the Revised Code with any
similar coverage, payment, or benefit
made available to
the same
individual by the Ohio police and fire pension
fund,
state
teachers retirement system, school employees retirement system, or
state
highway patrol retirement system.
(F)(E) The board shall make all other
necessary
rules
pursuant
to the purpose and intent of this section.
Sec. 145.80. The public employees retirement board shall
adopt
rules to implement
each
PERS defined contribution plan
established under section 145.81 of the
Revised Code.
Sec. 145.81. The public employees retirement board shall
establish
the PERS defined contribution plans, which shall be
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 145.81 to 145.98 of the Revised
Code and
any rules adopted in accordance with section 145.80 of the Revised
Code. It may include life insurance, annuities, variable
annuities, regulated investment trusts, pooled investment funds,
or other
forms of investment.
Each plan may also permit a
participant to transfer participation to another plan created
under this chapter. Transfers must be made in accordance with
section 145.814 of the Revised Code. The board may administer the plans, enter into contracts with
other entities to administer the plans, or both.
Sec. 145.811. Each
PERS defined contribution plan
established under section 145.81 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. 145.812. Each
PERS defined contribution plan
established under section 145.81 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. 145.813. Each
PERS defined contribution plan
established under section 145.81 of
the
Revised
Code shall require
the public 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
Amounts to be credited to an
individual account
may be deposited into any of the funds created
under section
145.23 of the Revised
Code
or
deposits under
division (C) of that
section to the employees'
savings fund
may be
transferred to the
entity administering the plan for deposit into
the member's
individual account.
Sec. 145.814. (A) As used in this section:
(1) "Additional liability" means an amount that, when added
to the amount on deposit, will provide the remaining portion of
the pension reserve for the period of service that corresponds to
the contributions made by or on behalf of a member.
(2) "Amount on deposit" means the sum of a member's employee
and employer contributions and, if applicable, any earnings or
losses on those contributions. (3) "Eligible member" means a member who was eligible to make
an election under section 145.19 or 145.191 of the Revised Code,
regardless of whether the member elected to participate in a PERS
defined contribution plan.
(B) If permitted to do so by the plan documents for a PERS
defined contribution plan or rules governing the PERS defined
benefit plan, an eligible member may elect, at intervals specified
by the plan document or rules, to participate in a different
defined contribution plan or in the PERS defined benefit plan.
The
election is subject to this section and rules adopted by the
public employees retirement board under sections 145.09 and 145.80
of the
Revised Code. An election to participate in a different
plan
shall be made in writing on a form provided by the public
employees retirement system and filed with the system. The
election shall take effect on the first day of the month following
the date the election is filed and, except as provided in the plan
documents or rules governing the PERS defined benefit plan, is
irrevocable on receipt by the system.
(C)(1) Except as provided in division (C)(2) of this
section, an election to participate in a different plan shall
apply only to employee and employer contributions made and, if
applicable, service credit earned after the effective date of the
election.
(2) An eligible member may elect to have the member's amount
on deposit and, if applicable, service credit earned prior to the
effective date of the election deposited and credited in
accordance with the member's new plan if one of the following
applies:
(a) The member, by an election under this section, will
cease participation in a PERS defined contribution plan that does
not include definitely determinable benefits.
(b) The member, by an election under division (A) of this
section, will begin participating in the PERS defined benefit
plan.
(3)
If a member described in division (C)(2) of this
section makes
the election described in that division, the
board's actuary
shall determine the additional liability to the
system, if any.
If
the actuary determines that there is an
additional liability,
the
member shall elect one of the following:
(a) To receive the total amount of service credit that the
member would have received had the member been participating in
the new plan, pay to the system an amount equal to the additional
liability;
(b) Receive an amount of service credit that corresponds to
the amount on deposit.
For each member who makes the election described in
division
(C)(2) of this section, the system shall deposit and
credit to the
new plan the amount on deposit and, if applicable, the amount paid
by the member.
Sec. 145.82. (A) Except as provided in
division
divisions
(B)
and (C)
of
this
section, sections 145.201 to 145.70 of the
Revised Code do
not
apply to
a
PERS defined contribution plan
established
under section 145.81 of the Revised
Code, except that
a
PERS defined contribution plan may
incorporate provisions of
those sections
as specified in the plan document. (B) The following sections of Chapter 145. of the
Revised
Code
apply to
a
PERS defined contribution plan
established
under
section 145.81 of the Revised
Code: 145.22, 145.221,
145.23,
145.25, 145.26, 145.27, 145.296,
145.38, 145.382,
145.383,
145.384, 145.391, 145.47,
145.471, 145.48, 145.483,
145.49,
145.51, 145.54, 145.55, 145.56,
145.561,
145.563, 145.57,
145.571,
145.69,
and 145.70 of the Revised Code.
(C) A PERS defined contribution plan that includes definitely
determinable benefits may incorporate by
reference all or part of
sections 145.201 to 145.79 of the Revised
Code to allow a member
participating in the plan to purchase
service credit or to be
eligible for any of the following:
(1) Retirement, disability, survivor, or death benefits;
(2) Health or long-term care insurance or any other type of
health care benefit;
(3) Additional increases under section 145.323 of the
Revised Code;
(4) A refund of contributions made by or on behalf of a
member.
With respect to the benefits described in division (C)(1) of
this section, the public employees retirement board may establish
eligibility requirements and benefit formulas or amounts that
differ from those of members participating in the PERS defined
benefit plan. With respect to the purchase of service credit by a
member participating in a PERS defined contribution plan, the
board may reduce the cost of the service credit to reflect the
different benefit formula established for the member.
Sec. 145.83. A PERS defined contribution plan may include a
program under which a
participating member is required to
accumulate a portion of the
amount contributed under section
145.86 of the Revised Code for
the purpose of providing funds to
the member for the payment of
health, medical, hospital, surgical,
dental, or vision care
expenses, including insurance premiums,
deductible amounts, or
copayments. The program may be a voluntary
employees' beneficiary
association, as described in section
501(c)(9) of the "Internal
Revenue Code of 1986," 100 Stat. 2085,
26 U.S.C.A. 501(c)(9), as
amended; a medical savings account; or a
similar type of program
under which an individual may accumulate
funds for the purpose of
paying such expenses. To implement the
program, the public
employees retirement board may enter into
agreements with
insurance companies or other entities authorized
to conduct
business in this state.
If a PERS defined contribution plan
includes a program
described in this section, the board shall
adopt rules to
establish and administer the program. The rules
shall specify the
length of time during which the member will vest
in amounts
accumulated on the member's behalf and may provide for
a minimum
annual distribution from the accumulated amount after
the member
terminates employment in positions subject to this
chapter.
Sec. 145.85. Each member participating in
a
PERS defined
contribution plan
established
under section 145.81 of the Revised
Code shall contribute a
per cent of
the member's earnable salary
to the public employees retirement
system as required in section
145.47 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. 145.86. For each member participating in
a
PERS
defined
contribution plan
established
under section 145.81 of the
Revised
Code, the employer shall
contribute a per cent of the
member's
earnable salary to the public
employees retirement system
as
required in section 145.48 of the
Revised Code, less the
percentage required under
section 145.87 of the Revised Code.
Sec. 145.87. For each member participating in
a
PERS
defined
contribution plan
established
under section 145.81 of the
Revised
Code, the public
employees
retirement system shall
transfer to the
employers' accumulation fund a
portion of the
employer
contribution required under section 145.48 of the
Revised
Code.
The portion shall equal the percentage of
earnable salary
of
members for whom the
contributions are being made that is
determined by an actuary
appointed by the public 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
145.325 or 145.58 of the
Revised Code and benefit increases to
members and former
members participating in the
PERS defined
benefit plan
described in sections 145.201 to 145.70
of the
Revised Code granted after
the effective date of
this section
September
21, 2000, is fully
amortized, as determined by the
annual actuarial
valuation prepared under section 145.22 of the
Revised
Code.
Sec. 145.88. Amounts contributed under sections 145.85 and
145.86
of the Revised Code, and any earnings on those amounts,
shall be
deposited and credited in accordance with the
PERS
defined contribution plan
established under
section 145.81 of the
Revised Code that is selected by the
member.
The plan may include
provisions authorizing the public employees retirement system to
do either of the following:
(A) Withhold from the amounts contributed under section
145.85 of the Revised Code a percentage of earnable salary that is
determined by an actuary appointed by the public employees
retirement board to be necessary to administer the plan;
(B) Withhold from the amounts contributed under section
145.86 of the Revised Code a percentage of earnable salary for the
purpose of funding health care insurance coverage or any other
type of health care benefit for a member participating in the
plan.
Sec. 145.91. The right of each member participating in
a
PERS defined contribution plan
established under section 145.81 of
the Revised Code to a
retirement, disability, survivor, or death
benefit, to health or long-term
care insurance
or any other type
of health care benefit, 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. 145.92. If a member participating in
a
PERS defined
contribution plan
established
under section 145.81 of the Revised
Code is married at the
time
benefits under the plan are to
commence,
before making any payment the public
employees
retirement system, or the entity administering the plan pursuant
to
a contract
with the public employees retirement board, shall
obtain the
consent of the member's spouse to the form of payment
selected by
the member
unless the spouse consents to another plan
of payment, the member's retirement allowance under the plan shall
be paid in a lesser amount payable for life and one-half of the
allowance continuing after death to the surviving spouse for the
life of the spouse. A plan established under section 145.81 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.
Consent is valid only if it is evidenced by
a written document signed by the member and the signature is
witnessed by a notary public. A plan may waive
the requirement of
consent if the spouse
is incapacitated or cannot be located or for
any
other reason specified
by the plan or in
the regulations
adopted under that
section
rules adopted by the public employees
retirement board.
Consent or waiver is effective only with regard to the spouse
who
is the subject of the consent or waiver.
Sec. 145.95. Subject to sections 145.38, 145.56, and 145.57
of the
Revised
Code, the right of a member participating in
a
PERS
defined contribution plan
established
under section 145.81 of
the
Revised Code to any payment or
benefit
accruing from
contributions
made by or on behalf of the member under
sections
145.85 and
145.86 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. 145.97. Each
PERS defined contribution plan
established
under section 145.81 of
the
Revised
Code shall permit a member
participating in the plan to do all of
the following: (A) Maintain on deposit with the public employees retirement
system, or the entity administering the plan pursuant to a
contract with the
public 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
returns to employment
covered under this chapter, and is participating in a plan that
includes definitely determinable benefits, pay to the system
or
the entity
administering the plan the amounts withdrawn
in
accordance with section 145.31 of the Revised Code; (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. 742.14. (A) The board of trustees
of the Ohio police
and
fire pension fund shall have prepared annually by or
under the
supervision of an actuary an
actuarial valuation of the pension
assets, liabilities, and funding
requirements of
the Ohio police
and
fire pension fund as established pursuant
to sections 742.01
to 742.61 of the Revised
Code. The actuary shall complete the
valuation in accordance with actuarial standards of practice
promulgated by
the actuarial standards board of the American
academy of actuaries and prepare a report of the valuation. The
report shall
include all of the following: (1) A summary of the benefit provisions evaluated; (2) A summary of the census data and financial information
used in the
valuation; (3) A description of the actuarial assumptions, actuarial
cost method,
and asset valuation method used in the valuation,
including a statement of the
assumed rate of payroll growth and
assumed rate of growth or decline in the
number of members of the
fund contributing to the pension fund; (4) A summary of findings that includes a statement of the
actuarial
accrued pension liabilities and unfunded actuarial
accrued pension
liabilities; (5) A schedule showing the effect of any changes in the
benefit
provisions, actuarial assumptions, or cost methods since
the last annual
actuarial valuation; (6) A statement of whether contributions to the pension fund
are
expected to be sufficient to satisfy the funding objectives
established by the
board. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
November
following the year for which the
valuation was made. (B) The board shall annually thereafter have prepared by
an
actuary a
report
showing the adequacy of the rate of the police
officer
employers' contribution
provided for by section 742.33 of
the Revised Code, and the adequacy of the
rate of the firefighter
employers' contribution provided
for by section 742.34 of
the
Revised Code. (C) At such times as the board
determines, and at
least once
in each quinquennial
period, the board shall have prepared by
or
under the supervision of an actuary an actuarial
investigation of
the
mortality, service, and other experience of
the members of the
fund and
of other system retirants, as defined in section 742.26
of the
Revised Code, who are members of a police department or a
fire
department to update the actuarial assumptions used in the
actuarial valuation required by division (A)
of this section. The
actuary shall prepare a report of the actuarial
investigation.
The
report shall be prepared and any recommended changes in
actuarial
assumptions shall be made in accordance with the
actuarial
standards
of practice promulgated by the actuarial
standards board
of the
American academy of actuaries. The report
shall include
all of the following: (1) A summary of relevant decrement and economic assumption
experience
observed over the period of the investigation; (2) Recommended changes in actuarial assumptions to be used
in
subsequent actuarial valuations required by division
(A) of
this section; (3) A measurement of the financial effect of the recommended
changes in
actuarial assumptions; (4) If the investigation required by this division includes
the investigation required by division (F) of this section, a
report of the result of that investigation. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
November
following the last fiscal year of the
period the report covers. (D) The board shall have prepared by or
under the
supervision of an actuary an actuarial analysis of any introduced
legislation expected to have a measurable financial impact on the
pension
fund.
The actuarial analysis shall be completed in
accordance with the actuarial
standards of practice promulgated by
the actuarial standards board of the
American academy of
actuaries. The actuary
shall prepare a report of the actuarial
analysis, which shall include all of
the following: (1) A summary of the statutory changes that are being
evaluated; (2) A description of or reference to the actuarial
assumptions and
actuarial cost method used in the report; (3) A description of the participant group or groups
included in the
report; (4) A statement of the financial impact of the legislation,
including
the resulting increase, if any, in the employer normal
cost percentage; the
increase, if any, in actuarial accrued
liabilities; and the per cent of payroll
that would be required to
amortize the increase in actuarial accrued
liabilities as a level
per cent of covered payroll for all active members of
the fund
over a period not to exceed thirty years; (5) A statement of whether the scheduled contributions to
the system
after the proposed change is enacted are expected to be
sufficient to satisfy
the funding objectives established by the
board. Not later than sixty days from the date of introduction of
the
legislation, the board shall submit a copy of the actuarial
analysis to
the legislative
service commission, the standing
committees of the house of
representatives and the senate with
primary
responsibility for
retirement legislation, and the
Ohio
retirement study council. (E) The board shall have
prepared annually a report giving a
full accounting of the
revenues and costs relating to the
provision of benefits under
section 742.45 of the Revised
Code.
The report
shall be made as of December
31, 1997, and the
thirty-first day of December of each year
thereafter. The report
shall include the following: (1) A description of the statutory authority for the
benefits provided; (2) A summary of the benefits; (3) A summary of the eligibility requirements for the
benefits; (4) A statement of the number of participants eligible for
the
benefits; (5) A description of the accounting, asset valuation, and
funding method used to provide the benefits; (6) A statement of the net assets available for the
provision of the benefits as of the last day of the fiscal
year; (7) A statement of any changes in the net assets
available
for the provision of benefits, including participant and
employer
contributions, net investment income, administrative
expenses, and
benefits provided to participants, as of the last day
of the
fiscal year; (8) For the last six consecutive fiscal years, a schedule
of
the net assets available for the benefits, the
annual cost of
benefits, administrative expenses incurred, and
annual employer
contributions allocated for the provision of
benefits; (9) A description of any significant changes that affect
the
comparability of the report required under this
division; (10) A statement of the amount paid under division
(C)(B) of
section
742.45 of the Revised Code. The board shall submit the report to the
Ohio retirement
study
council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirtieth day of
June
following the year for
which the report was made.
(F) At least once in each quinquennial period, the board
shall have prepared by or under the supervision of an actuary an
actuarial investigation of the deferred retirement option plan
established under section 742.43 of the Revised Code. The
investigation shall include an examination of the financial
impact, if any, on the fund of offering the plan to members. The actuary shall prepare a report of the actuarial
investigation. The report shall include a determination of
whether the plan, as established or modified, has a negative
financial impact on the fund and, if so, recommendations on how to
modify the plan to eliminate the negative financial impact. If
the actuarial report indicates that the plan has a negative
financial impact on the fund, the board may modify the plan or
cease to allow members who have not already done so to elect to
participate in the plan. The firefighter and police officers
employers' contributions shall not be increased to offset any
negative financial impact of the plan. If the board ceases to allow members to
elect to participate
in the plan, the rights and obligations of
members who have
already elected to participate shall
not be
altered. The board may include the actuarial investigation required
under this division as part of the actuarial investigation
required under division (C) of this section.
If the report of the
actuarial investigation required by this division is not included
in the report required by division (C) of this section, the board
shall submit the report required by this division to the Ohio
retirement study council and the standing committees of the house
of representatives and the senate with primary responsibility for
retirement legislation not later than the first day of November
following the last fiscal year of the period the report covers.
Sec. 742.37. The board of trustees of the Ohio police and
fire pension fund shall
adopt rules for the
management of the fund
and for the disbursement of benefits and
pensions as set forth in
this
section and section 742.39 of the Revised Code. Any
payment
of a benefit
or pension under this section is subject to the
provisions of
section 742.461 of the Revised Code.
Notwithstanding
any other
provision of this section, no pension or
benefit paid or
determined under division (B) or (C) of this
section or section
742.39
of the Revised Code 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. (A) Persons who were receiving benefit or pension payments
from a police relief and pension fund established under former
section 741.32 of the Revised Code, or from a firemen's relief and
pension
fund established under former
section 521.02 or
741.02 of
the Revised Code, at the time the assets of the
fund
were
transferred to the Ohio police and fire pension fund, known
at
that time as the police and firemen's disability and
pension fund,
shall receive benefit and pension payments from the
Ohio police
and
fire pension fund in
the same
amount and subject to the same
conditions as such payments
were
being made from the former fund
on the date of
the transfer. (B) A member of the fund who, pursuant to law, elected to
receive benefits and pensions from a police relief and pension
fund established under former section 741.32 of the Revised
Code,
or from a firemen's relief and
pension fund established
under
former section 741.02 of the Revised Code, in accordance
with the
rules of the fund governing the granting of
benefits or
pensions
therefrom in force on April 1, 1947, shall receive
benefits and
pensions from the Ohio police and fire
pension
fund in accordance
with such rules; provided, that
any member of the fund who is not
receiving a benefit or pension
from the fund on August 12, 1975,
may, upon application for a
benefit or pension to be received on
or after August 12, 1975,
elect to receive a benefit or pension in
accordance with division
(C) of this section. (C) Members of the fund who have not elected to receive
benefits and pensions from a police relief and pension fund or a
firemen's relief and pension fund in
accordance with the rules of
the fund in force on April 1, 1947, shall receive pensions
and
benefits in accordance with the following provisions: (1) A member of the fund who has completed twenty-five
years
of active service in a police or fire department and has
attained
forty-eight years of age may, at the member's
election, retire
from the police or fire department. Except while
participating in
the deferred retirement option plan established
under section
742.43 of the Revised Code, upon notifying the board
in writing of
the election,
the member shall receive an annual
pension,
payable
in twelve monthly installments, in an amount
equal to a
percentage
of the member's average annual salary. The
percentage
shall
be
the sum of two and one-half per cent for each
of the
first
twenty
years the member was in the active service of
the
department,
plus
two per cent for each of the twenty-first to
twenty-fifth
years
the member was in the active service of the
department, plus one
and one-half per cent for each year in excess
of twenty-five
years
the member was in the active service of the
department. The
annual pension shall not exceed seventy-two per
cent of the
member's average annual salary. A member who completed twenty-five years of active
service,
has resigned or been discharged, and
has left the
sum deducted
from the member's salary on deposit in the pension fund
shall,
upon attaining
forty-eight years of age, be
entitled to receive a
normal service pension benefit computed and
paid under division
(C)(1) of this section. (2) A member of the fund who has served fifteen or more
years as an active member of a police or fire department and who
voluntarily resigns or is discharged from the department
for any
reason other than dishonesty, cowardice, intemperate habits, or
conviction of a felony, shall receive an annual pension, payable
in twelve monthly installments, in an amount equal to one and
one-half per cent of the member's average annual salary
multiplied
by the
number of full years the member was in the active service
of
the department. The pension payments shall not commence
until
the
member has attained the age of forty-eight years and until
twenty-five years have elapsed from the date on which the
member
became a
full-time regular police officer or
firefighter in the
department. (3) A member of the fund who has completed fifteen or more
years of active service in a police or fire department and who
has
attained sixty-two years of age, may retire from the
department
and, upon notifying the board in writing of the
election to
retire, shall receive an annual pension, payable in
twelve monthly
installments, in an amount equal to a percentage
of the member's
average annual salary. The percentage
shall be the sum of two and
one-half per cent for each of the first twenty
years
the member
was in the active service of the department,
plus
two per cent for
each of the twenty-first to twenty-fifth years
the member was in
the active service of the department, plus one and one-half
per
cent for each year in excess of twenty-five years the member
was
in the
active service of the department. The
annual pension shall
not
exceed seventy-two per cent of the member's average annual
salary. (4) With the exception of those persons who may make
application
for benefits as provided in section 742.26 of the
Revised Code,
no person receiving a pension or other benefit under
division (C)
of this section on or after July 24, 1986, shall be
entitled to
apply for any new, changed, or different benefit. If a member covered by division (C) of this section or
section 742.38
of the Revised Code dies
prior to the time the
member has received a payment and
leaves a
surviving spouse or
dependent child, the surviving
spouse or dependent child shall
receive a pension under division
(D) or (E) of this section. (D)(1) Except as provided in division (D)(2)
of this
section, a surviving spouse of a deceased member of the fund
or a
surviving spouse described in division (D)(4) of this section
shall
receive a monthly pension
as follows: (a) For the period beginning
July 1, 1999, and ending
June
30, 2000, five hundred
fifty dollars; (b) For the period beginning
July 1, 2000, and
ending June
30, 2002, five hundred fifty dollars plus an amount determined by
multiplying five hundred fifty dollars by the average percentage
change in the consumer price index, not exceeding three per cent,
as determined by the board under former section 742.3716 of the
Revised Code; (c) For the period beginning July 1, 2002, and the period
beginning the first day
of July of each year thereafter
and
continuing for the following
twelve months, an amount equal
to the
monthly amount paid during
the prior twelve-month period
plus
sixteen dollars
and fifty
cents. (2) A surviving spouse of a deceased member of the fund
shall receive a monthly pension
of four hundred ten dollars if
the
surviving spouse is eligible
for a benefit under division
(B) or
(D) of section 742.63 of the
Revised Code. If the surviving
spouse ceases to be eligible
for a benefit under division (B) or
(D) of section 742.63 of
the Revised
Code, the pension shall be
increased, effective the first day of the first month following
the day on which the surviving spouse ceases to be eligible for
the benefit,
to the amount it would be under division (D)(1) of
this section had
the spouse never
been eligible for a benefit
under division (B) or (D) of
section 742.63 of the
Revised
Code. (3) A pension paid under this division shall
continue
during
the natural life of the surviving spouse.
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 September
16, 1998, 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.
(4) A surviving spouse of a deceased member of or
contributor
to a fund established under former Chapter 521. or
741. of the
Revised Code whose benefit or pension was terminated
or not paid
due to remarriage shall receive a monthly pension
under division
(D)(1) of this section. The pension shall commence on the first day of the month
immediately following receipt by the board of a completed
application on a form provided by the board and evidence
acceptable to the board that at the time of death the deceased
spouse was a member of or contributor to a police or firemen's
relief and pension fund established under former Chapter 521. or
741. of the Revised Code and that the surviving spouse's benefits
were terminated or not granted due to remarriage.
(E)(1) Each surviving child of a deceased member
of the
fund
shall receive a monthly pension
until
the child attains the
age of eighteen years, or
marries,
whichever
event occurs first.
A
pension under this
division,
however, shall
continue to be
payable
to a child under age
twenty-two who is a
student in and
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
the
institution, as
determined by the board. If
any surviving
child,
regardless
of
age at the time of the member's
death,
because of
physical
or
mental disability, is totally
dependent
upon the
deceased
member
for support at the time of
death, the
child shall
receive a
monthly
pension under this
division during
the
child's
natural
life or until the child has
recovered
from the
disability. (2) An eligible surviving child shall receive a monthly
pension as follows: (a) For the period beginning
July 1, 2001, and ending June
30, 2002, a monthly pension of one hundred fifty dollars plus the
cost of living increase provided for in former section 742.3720 of
the Revised Code; (b) For the period beginning July 1, 2002, and ending June
30, 2003, one hundred sixty-three
dollars and fifty cents; (b)(c) For the period beginning July 1, 2003, and
the period
beginning the first day
of each July thereafter and continuing for
the following twelve
months, an amount equal to the monthly amount
paid during the
prior twelve-month period plus four dollars and
fifty cents.
(F)(1) If a deceased member of the fund leaves no surviving
spouse or surviving children, but leaves
one or two parents
dependent
upon the deceased member for support, each parent shall
be
paid a
monthly pension. The
pensions
provided for in this
division shall be paid during the
natural
life of the surviving
parents, or until dependency ceases,
or
until remarriage,
whichever event occurs first. (2) Each eligible surviving parent shall be paid a monthly
pension as follows: (a) For the period ending June 30, 2002, one hundred six
dollars for each parent or two hundred twelve dollars for a sole
dependent parent; (b) For the period beginning July 1, 2002, and ending June
30, 2003, one hundred nine dollars for each parent or two hundred
eighteen dollars for a sole dependent parent; (c) For the period beginning July 1, 2003, and the first day
of each July thereafter and continuing for the following twelve
months, an amount equal to the monthly amount paid during the
prior twelve-month period plus three dollars for each parent or
six dollars for a sole dependent parent.
(G) Subject to the provisions of section 742.461 of the
Revised Code, a member of the fund who voluntarily
resigns or is
removed from active service in a police or fire
department is
entitled to receive an amount equal to the sums
deducted from the
member's salary and credited to
the member's account in the fund,
except that a member receiving a
disability benefit or service
pension is not entitled to receive any return of
contributions to
the fund. (H) On and after January 1, 1970, all pensions shall be
increased in accordance with the following provisions: (1) A member of the fund who retired prior to January 1,
1967, has attained age sixty-five on January 1, 1970, and was
receiving a pension on December 31, 1969, pursuant to division
(B)
or (C)(1) of this section
or former division (C)(2), (3), (4), or
(5) of this section,
shall have the pension increased by ten per
cent. (2) The monthly pension payable to eligible surviving
spouses under division (D) of this section shall be increased by
forty dollars for each surviving spouse receiving a pension on
December 31, 1969. (3) The monthly pension payable to each eligible child
under
division (E) of this section shall be increased by ten
dollars for
each child receiving a pension on December 31, 1969. (4) The monthly pension payable to each eligible dependent
parent under division (F) of this section shall be increased by
thirty dollars for each parent receiving a pension on December
31,
1969. (5) A member of the fund, including a survivor of a
member,
who is receiving a pension in accordance with the rules
governing
the granting of pensions and benefits in force on April
1, 1947,
that provide an increase in the original pension
from
time to time
pursuant to changes in the salaries of active
members, shall not
be eligible for the benefits provided in this
division. (I) On and after January 1, 1977, a member of the fund who
was receiving a pension or benefit on December 31, 1973, under
division (A), (B), (C)(1), or former division
(C)(2) or (7) of
this section shall have
the pension or benefit increased as
follows: (1) If the member's annual pension or benefit is less than
two
thousand seven hundred dollars, it shall be increased to three
thousand dollars. (2) If the member's annual pension or benefit is two
thousand seven
hundred dollars or more, it shall be increased by
three hundred
dollars. The following shall not be eligible to receive increased
pensions or benefits as provided in this division: (a) A member of the fund who is receiving a pension or
benefit in accordance with the rules in force on April 1, 1947,
governing the granting of pensions and benefits, which provide an
increase in the original pension or benefit from time to time
pursuant to changes in the salaries of active members; (b) A member of the fund who is receiving a pension or
benefit under division (A) or (B) of this section, based on
funded
volunteer or funded part-time service, or off-duty
disability, or
partial on-duty disability, or early vested
service; (c) A member of the fund who is receiving a pension under
division (C)(1) of this section, based on funded volunteer or
funded part-time service. (J) On and after July 1, 1977, a member of the fund who
was
receiving an annual pension or benefit on December 31, 1973,
pursuant to division (B) of this section, based upon partial
disability, off-duty disability, or early vested service, or
pursuant to former division (C)(3), (5), or (6) of this section,
shall
have such annual pension or benefit increased by three
hundred
dollars. The following are not eligible to receive the increase
provided by this division: (1) A member of the fund who is receiving a pension or
benefit in accordance with the rules in force on April 1, 1947,
governing the granting of pensions and benefits, which provide an
increase in the original pension or benefit from time to time
pursuant to changes in the salaries of active members; (2) A member of the fund who is receiving a pension or
benefit under division (B) or (C)(2) of this section or
former
division (C)(3), (5), or (6) of
this section based on volunteer or
part-time service. (K)(1) Except as otherwise provided in this division,
every
person who on July 24, 1986, is receiving an age and
service or
disability pension, allowance, or benefit pursuant to
this chapter
in an amount less than thirteen thousand dollars a
year that is
based upon an award made effective prior to February
28, 1984,
shall receive an increase of six hundred dollars a year
or the
amount necessary to increase the pension or benefit to
four
thousand two hundred dollars after all adjustments required
by
this section, whichever is greater. (2) Division (K)(1) of this section does not apply to the
following: (a) A member of the fund who is receiving a pension or
benefit in accordance with rules in force on April 1, 1947, that
govern the granting of pensions and benefits and that provide an
increase in the original pension or benefit from time to time
pursuant to changes in the salaries of active members; (b) A member of the fund who is receiving a pension or
benefit based on funded volunteer or funded part-time service. (L) On and after July 24, 1986: (1) The pension of each person receiving a pension under
division (D) of this section on July 24, 1986, shall be increased
to three hundred ten dollars per month. (2) The pension of each person receiving a pension under
division (E) of this section on July 24, 1986, shall be increased
to ninety-three dollars per month.
Sec. 742.372
742.371. A member of the fund who is in the
active
service of a police
or fire department and is not receiving
a pension or
benefit payment from the Ohio police and fire
pension
fund shall, in computing years of active service in such
department under division (C) of section 742.37 or section
742.39
of the Revised
Code, be given credit for
the time
previously
served in the active
full-time service
of
another
an Ohio police
or fire
department, provided both of the
following occur: (A) The member was a member of a police or firemen's relief
and
pension fund or the Ohio police and fire pension
fund during
the
full time
entire period for which such active service credit
is
claimed. (B) The member pays into the Ohio police and fire
pension
fund the amount received by the member under
division (I) of
former section 521.11, division (I) of former section 741.18,
division (I) of former section 741.49, or division (G) of section
742.37 of the Revised Code, with interest compounded annually
thereon at a rate to be determined by the board of trustees of
the
Ohio police and
fire
pension fund, from the
date of such receipt
to the date of such deposit, or there is to
the member's credit in
the police officers'
contribution fund
an amount equal
to the sums
contributed by the
member to such police or
firemen's relief
and
pension fund or to
the Ohio police and fire pension
fund
for the
full time for
which
such active service credit is claimed.
Subject to board rules, a member may choose to purchase in
any one payment only part of the credit that may be purchased
under this section. At the request of the fund, the employer shall certify to
the
board the dates the member was in the active service of the
police
or fire department.
Sec. 742.45. (A) The board of trustees of the Ohio police
and
fire pension fund 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
or disability pensions or survivor benefits subscribing to the
plan. Notwithstanding any other provision of this chapter, the
policy or contract may also include coverage for any eligible
individual's spouse and dependent children and for
any of the
eligible individual's sponsored dependents as the board considers
appropriate. If all or any portion of the policy or contract premium is
to
be paid by any individual receiving a service,
disability, or
survivor pension or benefit, the individual shall, by
written
authorization, instruct the board to deduct from the
individual's
benefit the
premium agreed to be paid by the individual to the
company,
corporation, or
agency. 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 Ohio police and fire pension
fund. The cost
paid from the
funds of the Ohio police and fire pension
fund shall be included
in the employer's contribution
rates provided by sections 742.33
and 742.34 of the Revised
Code. 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. (B)
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 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 (A) 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 (A) 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.
(C) The board shall, beginning the month following receipt
of satisfactory evidence of the payment for coverage, pay monthly
to each
recipient of service, disability, or
survivor benefits
under the Ohio police and
fire pension fund who is eligible for
medical insurance coverage under part B of "The Social Security
Amendments of
1965," 79 Stat. 301, 42 U.S.C.A. 1395j, as amended,
an amount equal to the
basic premiums for such coverage.
(D)(C) The board shall establish by rule requirements for
the
coordination of any coverage, payment, or benefit provided
under this section
with any similar coverage, payment, or benefit
made
available to the same individual by the
public employees
retirement system, state teachers retirement system, school
employees retirement system, or state highway patrol retirement
system.
(E)(D) The board shall make all other necessary rules
pursuant
to the purpose and intent of this section.
Sec. 3105.80. As used in this section and sections 3105.81
to 3105.90 of
the
Revised
Code: (A) "Alternate payee" means a party in an action for
divorce,
legal separation, annulment, or dissolution of marriage
who is to
receive one or more payments from a benefit or lump sum
payment
under an order issued under section 3105.171 or 3105.65 of
the
Revised Code that is in compliance with sections 3105.81 to
3105.90 of the Revised Code. (B) "Benefit" means a periodic payment under a pension,
annuity,
allowance, or other type of benefit, other than a
survivor benefit, that has
been or may be granted to a participant
under
sections 742.01 to 742.61 or Chapter 145., 3307.,
3309., or
5505. of the Revised Code or any payment that is
to be made under
a contract a participant has entered into for the purposes of
an
alternative retirement plan.
"Benefit" also includes all amounts
received or to be received under a plan of payment elected under
division (B)(3) of section 145.46, division (B) of section
3307.60, or division (B)(3) of section 3309.46 of the Revised
Code. (C) "Lump sum payment" means a payment of accumulated
contributions standing to a participant's credit under sections
742.01 to 742.61 or Chapter 145., 3307., 3309., or
5505. of the
Revised Code or pursuant to a contract a
participant has entered
into for the purposes of an alternative retirement
plan and any
other payment made or that
may
be made to a participant under
those sections or chapters on withdrawal of a
participant's
contributions. "Lump sum payment" includes
a lump sum payment
under section 145.384, 742.26, 3307.352, or 3309.344 of
the
Revised Code. (D) "Participant" means a member, contributor, retirant, or
disability benefit recipient who is or will be entitled to a
benefit or lump
sum payment
under sections 742.01 to
742.61 or
Chapter 145., 3307., 3309., or 5505. of the
Revised
Code or an
academic or administrative employee who elects to
participate in
an alternative retirement plan under Chapter 3305.
of the Revised
Code. (E) "Personal history record" has the same meaning as in
section
145.27, 742.41, 3305.20, 3307.20, 3309.22, and 5505.04 of
the Revised
Code. (F) "Public retirement program" means the public employees
retirement system, Ohio police and fire pension fund, school
employees retirement system, state teachers
retirement system,
state highway patrol retirement system, or an entity
providing an
alternative retirement plan under Chapter 3305.
of the Revised
Code.
Sec. 3307.01. As used in this chapter: (A) "Employer" means the board of education, school
district, governing authority of any community school established
under
Chapter 3314. of the Revised Code, college, university,
institution, or
other agency
within the state by which a teacher
is employed and paid. (B) "Teacher" means all of the following: (1) Any person paid from public funds and
employed in the
public schools of the state under any type of
contract described
in section 3319.08 of the Revised Code in a
position for which the
person is required to have a
license issued
pursuant to sections
3319.22 to 3319.31 of the Revised Code; (2) Any person
employed as a teacher by a community school
pursuant to Chapter 3314.
of the Revised Code; (3) Any person holding an
internship certificate issued
under section 3319.28 of the Revised
Code and
employed in a public
school in this state; (4) Any person having a
license issued pursuant to sections
3319.22 to 3319.31 of the
Revised Code and employed in a public
school in this state
in an educational
position, as determined by
the state board of education, under programs
provided for by
federal acts or regulations and financed in whole or in part
from
federal funds, but for which no licensure requirements for the
position
can be made under the provisions of such federal acts or
regulations; (5) Any other teacher or faculty member employed in any
school,
college, university, institution, or other agency wholly
controlled and managed, and supported in whole or in part, by the
state or any political subdivision thereof, including Central
state university, Cleveland state university, the university of
Toledo, and the medical college of Ohio at Toledo; (6) The
educational employees of the department of
education, as
determined by the state superintendent of public
instruction.
In all cases of doubt, the state teachers
retirement board
shall determine whether any person is a teacher,
and its decision
shall be final. "Teacher" does not include any academic or administrative
employee of a public
institution of higher education, as defined
in section 3305.01 of the Revised
Code, who participates in an
alternative retirement plan
established under Chapter 3305. of the
Revised Code. (C) "Member" means any person included in the membership
of
the state teachers retirement system, which shall consist of
all
teachers and contributors as defined in divisions (B) and
(D) of
this section and all disability benefit recipients, as defined in
section 3307.50 of the Revised Code. However,
for purposes of
this chapter, the following persons shall not be
considered
members: (1) A student, intern, or resident who is not a member while
employed
part-time by a school, college, or
university at which
the student, intern, or resident is
regularly attending classes; (2) A person denied membership pursuant to section
3307.24
of the Revised Code; (3) An other system retirant, as
defined in
section 3307.35
of the Revised Code, or a
superannuate; (4) An individual employed in a program established
pursuant
to the "Job Training Partnership Act," 96 Stat. 1322
(1982), 29
U.S.C.A. 1501. (D) "Contributor" means any person who has an account in
the
teachers' savings fund or defined contribution fund. (E) "Beneficiary" means any person eligible to receive,
or
in receipt of, a retirement allowance or other benefit provided
by
this chapter. (F) "Year" means the year beginning the first day of July
and ending with the thirtieth day of June next following, except
that for the purpose of determining final average salary under the
plan
described in sections 3307.50 to 3307.79 of the Revised
Code,
"year"
may mean the contract year. (G) "Local district pension system" means any school
teachers pension fund created in any school district of the state
in accordance with the laws of the state prior to September 1,
1920. (H) "Employer contribution" means the amount paid by an
employer, as determined by the employer rate, including the
normal
and deficiency rates, contributions, and funds wherever
used in
this chapter. (I) "Five years of service credit" means employment covered
under this
chapter and
employment covered under a former
retirement plan operated,
recognized, or endorsed by a college,
institute, university, or
political subdivision of this state
prior to coverage under this
chapter. (J) "Actuary" means the actuarial consultant to the state
teachers retirement board, who shall be either of the following: (1) A member of the American academy of actuaries; (2) A firm, partnership, or corporation of which at least
one person is a member of the American academy of actuaries. (K) "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. (L)(1) Except as provided in this
division,
"compensation"
means all salary, wages, and other earnings paid
to a teacher by
reason of the teacher's employment, including compensation
paid
pursuant to a supplemental contract. The salary, wages,
and other
earnings shall be determined prior to determination of
the amount
required to be contributed to the teachers' savings
fund or
defined contribution fund under section
3307.26 of the Revised
Code and
without regard
to whether any of the salary, wages, or
other earnings are
treated as deferred income for federal income
tax purposes. (2) Compensation does not include any of the following: (a) Payments for accrued but unused sick leave or personal
leave, including payments made under a plan established pursuant
to section 124.39 of the Revised Code or any other plan
established by the employer; (b) Payments made for accrued but unused vacation leave,
including payments made pursuant to section 124.13 of the Revised
Code or a plan established by the employer; (c) Payments made for vacation pay covering concurrent
periods for which other salary, compensation, or benefits under
this chapter are paid; (d) Amounts paid by the employer to provide life
insurance,
sickness, accident, endowment, health, medical,
hospital, dental,
or surgical coverage, or other insurance for
the teacher or the
teacher's family, or amounts paid by the
employer to the teacher
in lieu of providing the insurance; (e) Incidental benefits, including lodging, food, laundry,
parking, or services furnished by the employer, use of the
employer's property or equipment, and reimbursement for
job-related expenses authorized by the employer, including moving
and travel expenses and expenses related to professional
development; (f) Payments made by the employer in exchange for a
member's
waiver of a right to receive any payment, amount, or
benefit
described in division (L)(2) of this section; (g) Payments by the employer for services not actually
rendered; (h) Any amount paid by the employer as a retroactive
increase in salary, wages, or other earnings, unless the increase
is one of the following: (i) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for teaching and not designated for being an
administrator
issued under section 3319.22 of the Revised Code
that is
paid in accordance with uniform criteria applicable to all
members employed by the board in positions requiring the
licenses; (ii) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for being an administrator issued under section
3319.22 of
the Revised Code that is paid in accordance
with
uniform criteria applicable to all members employed by the
board
in positions requiring the licenses; (iii) A retroactive increase paid to a member employed by
a
school district board of education as a superintendent that is
also paid as described in division (L)(2)(h)(i) of this
section; (iv) A retroactive increase paid to a member employed by
an
employer other than a school district board of education in
accordance with uniform criteria applicable to all members
employed by the employer. (i) Payments made to or on behalf of a teacher that are in
excess of the annual compensation that may be taken into account
by the retirement system under division (a)(17) of section 401 of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
401(a)(17), as amended. For a teacher who first establishes
membership before July 1, 1996, the annual compensation that may
be
taken into account by the retirement system shall be determined
under
division (d)(3) of section 13212 of the "Omnibus
Budget
Reconciliation Act of 1993," Pub.
L. No. 103-66, 107 Stat. 472. (j) Payments made under division (B), (C), or
(E) of
section
5923.05 of the Revised Code, Section 4 of Substitute
Senate
Bill
No. 3 of the 119th general
assembly,
Section 3 of
Amended
Substitute Senate
Bill
No.
164 of the 124th general assembly,
or
Amended Substitute House Bill No. 405 of the 124th general
assembly; (k) Anything of value received by the teacher that is
based
on or attributable to retirement or an agreement to retire. (3) The retirement board shall determine by rule both of
the
following: (a) Whether particular forms of earnings are included in
any
of the categories enumerated in this division; (b) Whether any form of earnings not enumerated in this
division is to be included in compensation. Decisions of the board made under this division shall be
final. (M) "Superannuate" means both of the following: (1) A former teacher receiving from the system a retirement
allowance under section 3307.58 or 3307.59 of the Revised
Code; (2) A former teacher receiving
any
a benefit from the system
under
a plan established under section 3307.81 of the Revised
Code, except that "superannuate" does not include a former teacher
who is receiving a benefit based on
disability under a plan
established under section 3307.81 of the
Revised Code. For purposes of section 3307.35 of the Revised Code,
"superannuate" also means a former teacher receiving from the
system a combined service retirement benefit paid in accordance
with
section 3307.57 of the Revised Code, regardless of which
retirement system is paying the benefit.
Sec. 3307.39. (A) The state teachers 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, under the plan described in sections
3307.50
to 3307.79 of the Revised Code, service retirement or a
disability or
survivor
benefit who subscribe to the plan.
Notwithstanding
any other provision of this chapter, the
policy or
contract may also include coverage for any eligible
individual's
spouse and dependent children and for
any of the individual's
sponsored
dependents as the board considers appropriate. 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 individual
shall, by written authorization,
instruct the board to deduct the premium 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 state teachers retirement system. The cost paid from
the
funds of the system shall be included in the
employer's
contribution rate provided by section
3307.28 of the
Revised Code. The board may enter into an agreement under this division for
coverage of recipients of benefits under a plan established under
section
3307.81 of the Revised Code if the plan selected
includes
health, medical, hospital, or surgical benefits, or any
combination thereof. The board may contract for coverage on the
basis that
the
cost of the coverage will be paid by the recipient
or by the plan to which
the recipient contributed under this
chapter. The board
may offer to recipients plans that provide for
different levels
of coverage or for prepayment of the cost of
coverage. 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. (B)
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 (A) 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 (A) 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.
(C) The board shall make a
monthly payment to each recipient
of service retirement, or a
disability or survivor benefit under
the plan described in sections 3307.50
to 3307.79
of the Revised
Code 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, and may make a monthly payment
to a
recipient
of benefits under a plan established under section 3307.81 of
the
Revised Code who is eligible for that insurance coverage
if the
monthly payments are funded through the
plan selected by the
recipient. The payment shall be the
greater of the following:
(1) Twenty-nine dollars and ninety cents; (2) An amount determined by multiplying the
basic premium
for the coverage by a percentage, not exceeding ninety
per cent,
determined by
multiplying the years of service used in calculating
the service retirement or
benefit or, in the case of a recipient
of benefits under a plan established
under section 3307.81 of the
Revised Code, the participant's years of service
by a
percentage
determined by the board not exceeding three per
cent. The board shall make all payments under this division
beginning
the month following receipt of satisfactory evidence of
the payment for
the coverage. (D)(C) The board shall establish by rule requirements for
the
coordination of
any coverage, payment, or benefit provided
under this section or section
3307.61 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,
school
employees retirement system, or
state highway patrol retirement
system.
(E)(D) The board shall make all other necessary rules
pursuant to the purpose and intent of this section.
Sec. 3307.51. (A) The state teachers retirement
board
shall
have
prepared annually by or under the supervision of an actuary
an actuarial
valuation of the pension assets, liabilities, and
funding requirements of the
plan described in sections 3307.50 to
3307.79 of the Revised Code. The
actuary shall complete the
valuation in accordance with actuarial standards of
practice
promulgated by the actuarial standards board of the
American
academy of actuaries and prepare a
report of the valuation. The
report shall include all of the following: (1) A summary of the benefit provisions evaluated; (2) A summary of the census data and financial information
used in the
valuation; (3) A description of the actuarial assumptions, actuarial
cost method,
and asset valuation method used in the valuation,
including a statement of the
assumed rate of payroll growth and
assumed rate of growth or decline in the
number of members
contributing to the retirement system; (4) A summary of findings that includes a statement of the
actuarial
accrued pension liabilities and unfunded actuarial
accrued pension
liabilities; (5) A schedule showing the effect of any changes in the
benefit
provisions, actuarial assumptions, or cost methods since
the last annual
actuarial valuation; (6) A statement of whether contributions to the retirement
system are
expected to be sufficient to satisfy the funding
objectives established by the
board. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
January
following the year for which the valuation
was made. (B) At such times as the state teachers
retirement board
determines, and at least once in each
quinquennial period, the
board shall have prepared by or
under the supervision of an
actuary an
actuarial
investigation of the mortality, service, and
other experience of the
members, retirants, and beneficiaries of
the system, and other system
retirants
as defined in
section
3307.35 of the Revised Code to update the
actuarial assumptions
used
in the
actuarial valuation
required by division (A) of this
section. The
actuary shall prepare a report of the actuarial
investigation. The report
shall be prepared and any recommended
changes in actuarial assumptions shall
be
made in accordance with
the actuarial standards of practice promulgated by the
actuarial
standards board of the American
academy of actuaries. The report
shall include all of the following: (1) A summary of relevant decrement and economic assumption
experience
observed over the period of the investigation; (2) Recommended changes in actuarial assumptions to be used
in
subsequent actuarial valuations required by division
(A) of
this section; (3) A measurement of the financial effect of the recommended
changes in
actuarial assumptions. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
May
following the last fiscal year of the
period the report covers. (C) The board may at any time request the actuary to make
any
other studies or
actuarial valuations to determine the
adequacy of the normal and deficiency rates of contribution
provided by section 3307.28 of the Revised Code, and
those
rates
may be adjusted by the board, as recommended by the actuary,
effective as of the first of any year thereafter. (D) The board shall have prepared by or under the
supervision of an actuary an actuarial analysis of any introduced
legislation
expected to have a measurable financial impact on the
retirement system. The
actuarial analysis shall be completed in
accordance with the actuarial
standards of practice promulgated by
the actuarial standards board of the
American academy of
actuaries. The actuary
shall prepare a report of the actuarial
analysis, which shall include all of
the following: (1) A summary of the statutory changes that are being
evaluated; (2) A description of or reference to the actuarial
assumptions and
actuarial cost method used in the report; (3) A description of the participant group or groups
included in the
report; (4) A statement of the financial impact of the legislation,
including
the resulting increase, if any, in the employer normal
cost percentage; the
increase, if any, in actuarial accrued
liabilities; and the per cent of payroll
that would be required to
amortize the increase in actuarial accrued
liabilities as a level
per cent of covered payroll for all active members over
a period
not to exceed thirty years; (5) A statement of whether the scheduled contributions to
the system
after the proposed change is enacted are expected to be
sufficient to satisfy
the funding objectives established by the
board. Not later than sixty days from the date of introduction of
the
legislation, the board shall submit a copy of the actuarial
analysis to
the
legislative budget office of the legislative
service commission, the standing
committees of the house of
representatives and the senate with primary
responsibility for
retirement legislation, and the
Ohio retirement study council. (E) The board shall have
prepared annually a report giving a
full accounting of the
revenues and costs relating to the
provision of benefits under
sections 3307.39 and 3307.61
of the
Revised Code. The report shall
be made as of June 30, 1997, and
the thirtieth day of June
of each year thereafter.
The report
shall include the following: (1) A description of the statutory authority for the
benefits provided; (2) A summary of the benefits; (3) A summary of the eligibility requirements for the
benefits; (4) A statement of the number of participants eligible for
the
benefits; (5) A description of the accounting, asset valuation, and
funding method used to provide the benefits; (6) A statement of the net assets available for the
provisions of benefits as of the last day of the fiscal
year; (7) A statement of any changes in the net assets
available
for the provision of benefits, including participant and
employer
contributions, net investment income, administrative
expenses, and
benefits provided to participants, as of the last day
of the
fiscal year; (8) For the last six consecutive fiscal years, a schedule
of
the net assets available for the benefits, the
annual cost of
benefits, administrative expenses incurred, and
annual employer
contributions allocated for the provision of
benefits; (9) A description of any significant changes that affect
the
comparability of the report required under this
division; (10) A statement of the amount paid under division
(C)(B) of
section
3307.39 of the Revised Code. The board shall submit the report to the
Ohio retirement
study
council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirty-first day of
December following the year for
which the report was made.
Sec. 3307.56. (A)(1) Subject to
sections 3307.37 and
3307.561
of the Revised Code and except as provided in division
(B)(2) of
this section, a member participating in the plan
described in
sections 3307.50 to 3307.79 of the Revised Code who
ceases to be a teacher for
any cause
other than death, retirement,
receipt
of a disability benefit, or current employment in a
position in which the member has elected to participate in an
alternative
retirement plan
under section 3305.05 of the Revised
Code, upon application, shall be paid the
accumulated
contributions standing to the credit of the member's
individual
account in the teachers' savings fund plus an amount calculated
in
accordance with section 3307.563 of the Revised
Code. If the
member or
the member's legal
representative cannot be found within
ten years after the
member ceased making contributions pursuant to
section
3307.26 of the Revised
Code,
the accumulated
contributions
may be transferred to the guarantee fund and thereafter paid to
the member, to the member's beneficiaries,
or to the member's
estate, upon proper application. (2) A member described in division (A)(1) of this
section
who is married at the time of application for payment and is
eligible
for age and service retirement under section 3307.58
or
3307.59 of the Revised
Code shall
submit with the application a
written statement by the member's spouse
attesting that the spouse
consents to the payment of the member's accumulated
contributions.
Consent shall be valid only if it is signed and witnessed by
a
notary public. If
the statement is not submitted under this
division, the application shall be
considered an application for
service retirement and shall be subject to
division
(F)
(G)(1) of
section 3307.60 of the Revised
Code. The state teachers retirement board may waive the requirement
of consent if
the spouse is incapacitated or cannot be located, or
for any other reason
specified by the board. Consent or waiver is
effective only with regard to
the spouse who is the subject of the
consent or waiver. (B) This division applies to any member who is employed in a
position in
which the member has elected under section 3305.05 of
the Revised
Code to participate in an alternative retirement plan
and due to the
election ceases
to be a teacher for the purposes
of that position. Subject to sections 3307.37 and
3307.561 of the
Revised Code,
the state teachers retirement system shall
do the following: (1) On receipt of a certified copy of an election under
section 3305.05 of
the Revised Code, pay, in accordance with
section 3305.051
of the Revised Code, the amount described in that
section to
the appropriate provider; (2) If a member has accumulated contributions, in addition
to
those subject to division (B)(1) of this section, standing to
the
credit of a member's individual account and is not otherwise
in a
position in which the member is considered a teacher for the
purposes of that position, pay, to the provider the
member
selected pursuant to section 3305.05 of the Revised
Code,
the
accumulated contributions standing to the credit of the member's
individual account in the teachers' saving fund plus an amount
calculated in accordance with section 3307.80 of the Revised
Code.
The payment shall be made on the member's application. (C) Payment of a member's accumulated contributions under
division (B) of this section cancels the member's total service
credit in the state teachers retirement system. A member whose
accumulated
contributions are paid
to a provider pursuant to
division (B) of this
section is forever barred from claiming or
purchasing service credit under the
state teachers
retirement
system for the period of employment attributable to those
contributions.
Sec. 3307.561.
A
(A) Except as provided in division (B) of
this
section, a member of the state teachers
retirement system
participating in the plan described in sections 3307.50
to 3307.79
of the Revised Code who has ceased
to be a teacher, and who is
also a member of either the public employees
retirement system or
school employees retirement system, or both,
may not
withdraw the
member's accumulated contributions
unless
the. (B) On application, the state teachers retirement board
shall pay a member described in division (A) of this section the
member's accumulated contributions if either of the following
applies: (1) The member also withdraws the member's
contributions
from the other systems. (2) The member is a participant in a plan established under
section 145.81 or 3309.81 of the Revised Code and has withdrawn
the member's contributions under plans described in sections
145.201 to 145.79 and 3309.18 to 3309.70 of the Revised Code.
Sec. 3307.563. For the purposes of this section,
"service
credit" includes
only service credit obtained pursuant to sections
3307.53, 3307.71,
3307.72, and 3307.77 of the Revised Code. (A) The state teachers retirement system shall add to a
member's
accumulated contributions to be paid under section
3307.56 or 3307.562 of the
Revised Code an
amount paid from the
employers' trust fund equal to one of the following: (1) If the member has less than three full years of service
credit,
an amount equal to interest on the member's accumulated
contributions,
compounded annually, at a
rate not greater than
four per cent established by the board; (2) If the member has three or more full years of service
credit, but less
than five full years, an amount equal to interest
on the member's accumulated
contributions,
compounded annually, at
a rate not greater than six per cent established by
the board; (3) If the member has five or more full years of service
credit, the sum
of the following amounts: (a) An amount equal to interest on the member's accumulated
contributions,
compounded annually, at a rate not greater than six
per cent established by
the board; (b) An amount equal to fifty per cent of the sum of the
member's
contributions under section
3307.26
and division (C) of
section 3307.77 of the
Revised Code
plus interest on that amount
at a rate not greater
than six
per
cent
established by the board. Interest for each year included in the calculation under this
section shall
be calculated from the first day of the following
year
to the last day of the month
preceding payment under section
3307.56 or
3307.562 of the Revised Code. (B) Notwithstanding sections 3307.56 and
3307.562 of the
Revised Code, neither
the beneficiaries, survivors, nor estate of
a deceased member who was granted
disability benefits prior to
death is eligible for the payment of any amount
calculated under
this section.
Sec. 3307.58. Any member participating in the plan
described
in sections 3307.50 to 3307.79 of the Revised Code who has five
years of
service
credit and has attained age sixty, or who has
twenty-five years
of service credit and has attained age
fifty-five, or who has
thirty years of service credit shall be
granted service
retirement after filing with the state teachers
retirement board
a completed application on a form approved by the
board. (A) Service retirement shall be effective on the first day
of the month next following the later of: (1) The last day for which compensation was paid; or (2) The attainment of minimum age or service credit
eligibility for benefits provided under this section. Except as provided in division (E) of this
section, the
service retirement benefit shall be the greater of
the benefits
provided in divisions (B) and (D) of this
section. (B) Subject to any adjustment made under division
(C) of
this section, the annual single lifetime benefit
of
a member shall
be the greater of the amounts determined by the
member's Ohio
service credit multiplied by one of the following: (1) Eighty-six dollars; (2)(a) The sum of the following amounts: (i) For each of the first thirty years of Ohio service
credit, two and two-tenths per cent
of the member's final
average
salary
or, subject to the limitation described
in division
(B)(2)(b) of this section, two and
five-tenths per cent of the
member's final average salary if the
member has thirty-five or
more years of service credit under section 3307.53,
3307.57,
3307.75, 3307.751, 3307.752,
3307.761,
3307.763, 3307.77, or
3307.771 of the
Revised Code, division
(A)(2) or (B) of former
section 3307.513 of
the Revised Code, former
section 3307.514 of
the Revised Code,
section 3307.72
of the Revised Code earned after
July 1, 1978, or
any combination
of service credit under those
sections; (ii) For each year or fraction of a year of Ohio service
credit
in excess of thirty years, two and two-tenths per cent of
the member's final
average salary or, subject
to the limitation
described in division (B)(2)(b) of
this section,
if the member has
more than thirty years service
credit under section
3307.53,
3307.57, 3307.75, 3307.751, 3307.752, 3307.761,
3307.763,
3307.77,
or
3307.771 of the
Revised Code, division (A)(2) or (B) of former
section
3307.513 of the Revised Code, former section 3307.514 of
the Revised Code, section 3307.72 of the Revised Code earned
after
July 1, 1978, or any combination of service credit
under those
sections,
the per cent of final average salary shown in the
following schedule
for each corresponding year or
fraction of a
year of service credit under those
sections
that is in excess of
thirty years:
Year | Per | Year | Per |
of | Cent | of | Cent |
Service | for that | Service | for that |
Credit | Year | Credit | Year |
30.01 - 31.00 | 2.5% | 35.01 - 36.00 | 3.0% | 31.01 - 32.00 | 2.6 | 36.01 - 37.00 | 3.1 | 32.01 - 33.00 | 2.7 | 37.01 - 38.00 | 3.2 | 33.01 - 34.00 | 2.8 | 38.01 - 39.00 | 3.3 |
34.01 - 35.00 | 2.9 | | |
For purposes of this schedule, years of service
credit shall be
rounded to the nearest one-hundredth of a year. (b) For purposes of division (B)(2)(a)
of this section, a
percentage of final average salary in excess of two and two-tenths
per
cent shall be applied to service credit under section 3307.57
of the Revised Code only if the service credit was
established
under section
145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,
3309.021, 3309.022,
or 3309.47, or of the Revised Code or
restored
under
section 145.31 or 3309.26 of the
Revised Code. (C) The annual single lifetime benefit of a member
determined under division (B) of this section shall be
adjusted by
the greater per cent shown in the following schedule
opposite the
member's attained age or Ohio service credit.
| Years of | Per Cent |
Attained
| or | Ohio Service | of Base |
Age | Credit | Amount |
58 | 25 | 75% |
59 | 26 | 80 |
60 | 27 | 85 |
61 | | 88 |
| 28 | 90 |
62 | | 91 |
63 | | 94 |
| 29 | 95 |
64 | | 97 |
65 | 30 or more | 100 |
Members shall vest the right to a benefit in accordance with
the
following schedule, based on the member's attained age by
September 1, 1976:
| | Per Cent | |
| Attained | of Base | |
| Age | Amount |
|
| 66 | 102% | |
| 67 | 104 | |
| 68 | 106 | |
| 69 | 108 | |
| 70 or more | 110 | |
The annual single lifetime benefit determined under
division
(B) of this section shall not exceed the
lesser of one
hundred per
cent
of the final average salary or the limit established by
section
415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26
U.S.C.A. 415, as amended. (D) The annual single lifetime benefit of a member shall
not
exceed the lesser of the sum of the following amounts or the
limit
established by section 415 of the "Internal Revenue Code of
1986,"
100 Stat. 2085, 26 U.S.C.A. 415, as amended: (1) An annuity with a reserve equal to the member's
accumulated contributions; (2) A pension equal to the amount in division (D)(1) of
this
section; (3) An additional pension of forty dollars annually
multiplied by the number of years of prior and military service
credit, except years of credit purchased under section
3307.751 or
3307.752
of the Revised Code; (4) An additional basic annual pension of one hundred
eighty
dollars, provided the member had ten or more years of Ohio
service
credit as of October 1, 1956, except that the
additional basic
annual pension shall not exceed the sum of the annual
benefits
provided by divisions (D)(1), (2), and (3) of this
section. (E) Benefits determined under this section shall be paid
as
provided in section 3307.60 of the Revised Code.
Sec. 3307.60. (A) Upon application for retirement as
provided in section 3307.58 or
3307.59 of the Revised Code, the
retirant may elect
a plan of payment under this division or, on
and after the date specified in
division (B) of this section, a
plan of payment under that division. Under this division, the
retirant
may elect to receive a single lifetime benefit, or
may
elect to
receive the actuarial equivalent of
the retirant's
benefit in a
lesser amount, payable for life, and continuing after
death
to a
beneficiary under one of the following optional plans: (1) Option 1. The retirant's lesser benefit shall be paid
for life
to the sole beneficiary named at retirement. (2) Option 2. Some other portion of the retirant's benefit
shall be
paid for life to the sole beneficiary named at
retirement.
The
beneficiary's monthly amount shall not exceed the
monthly amount
payable to the retirant during the retirant's
lifetime. (3) Option 3. The retirant's lesser benefit established as
provided
under option 1 or option 2 shall be paid for life to the
sole
beneficiary named at retirement, except that in the event of
the
death of the sole beneficiary or termination of a marital
relationship between the retirant and the sole beneficiary the
retirant may elect to return to a single lifetime benefit
equivalent as determined by the state teachers retirement board,
if, in
the case of
termination of a marital relationship, the
election is made with
the written consent of the beneficiary or
pursuant to an order of
the court with jurisdiction over
termination of the marital
relationship. (4) Option 4. Upon the retirant's death before the
expiration of a
certain period from the retirement date and
elected by the
retirant, and
approved by the board, the
retirant's
benefit
shall be continued for the remainder of such period to the
beneficiary. Monthly benefits shall not be paid to joint
beneficiaries, but they may receive the present value of any
remaining payments in a lump sum settlement. If all
beneficiaries
die before the expiration of the certain period,
the present value
of all payments yet remaining in such period
shall be paid to the
estate of the beneficiary last receiving. (5) Option 5. A plan of payment established by the state
teachers retirement board combining any of the features of
options
1, 2, and 4. (B)
Beginning on a date selected by the state teachers
retirement board, which shall be not later than July 1, 2004, a
retirant may elect, in lieu of a plan of payment under division
(A) of this section, a plan consisting of both of the following: (1) A lump sum in an amount the member designates that
constitutes a portion of the member's single lifetime
benefit; (2) Either of the following: (a) The remainder of the retirant's single
lifetime benefit; (b) The actuarial equivalent of the remainder of the
retirant's benefit in a lesser
amount, payable for life, and
continuing after death to a
beneficiary under one of the options
described in divisions (A)(1)
to (5) of this section. In the event of the death of the sole beneficiary or
termination of a marital relationship between the retirant and the
sole beneficiary, the retirant may elect to receive the actuarial
equivalent of the remainder of the retirant's single lifetime
benefit except that, in the case of termination of a marital
relationship, the election may be made only with the written
consent of the beneficiary or pursuant to an order of the court
with jurisdiction over termination of the marital relationship. The amount designated by the member under division (B)(1) of
this section shall be not less than six times and not more than
thirty-six times the monthly amount
that would be payable to the
member as a single lifetime benefit
and shall not result in a
monthly allowance that is less than fifty per cent of that amount. (C) Until the first payment is made to a former member
under
section 3307.58 or
3307.59 of the Revised Code, the former
member
may
change the selection of a plan of payment.
If death occurs
prior
to an election of a plan of payment
(D)(1) If a deceased member was eligible for but had not yet
been awarded a service retirement benefit under section 3307.58 or
3307.59 of the Revised Code at the time of death, option 1
as
provided
for in division (A)(1) of this
section shall be paid to
the spouse
or other sole dependent
beneficiary.
(2) Beginning on a date selected by the board, which shall be
not
later than July 1, 2004, the spouse or sole beneficiary
may
elect, in lieu of option 1, a plan of payment consisting of
both
of the following:
(a) A lump sum in an amount the spouse or other sole
dependent beneficiary designates that constitutes a portion of the
retirant's single life annuity;
(b) The actuarial equivalent of the remainder of the
retirant's single life annuity paid in a lesser amount for life to
the spouse or other
sole dependent beneficiary.
The amount designated by the spouse or other sole dependent
beneficiary under division (D)(2)(a) of this section shall be not
less than six times and not more than thirty-six times the monthly
amount that would be payable as
the retirant's single life annuity
and shall not result in a monthly allowance that is less than
fifty per cent of that monthly amount. (C)(E) If the total benefit paid under this section is less
than the balance in the teachers' savings fund, the
difference
shall be paid to the beneficiary provided under division (D) of
section 3307.562 of the Revised Code.
(D)(F) In the case of a retirant who elected an optional
plan
prior to September 15, 1989:
(1) The death of the spouse or other designated
beneficiary
following retirement shall, at the election of the
retirant,
cancel any optional plan selected at retirement to
provide
continuing lifetime benefits to the spouse or other
beneficiary
and return the retirant to a single lifetime
benefit equivalent as
determined by the board. (2) A divorce, annulment, or marriage dissolution shall,
at
the election of the retirant, cancel any optional plan
selected at
retirement to provide continuing lifetime benefits to
the spouse
as designated beneficiary and return the retirant to
a single
lifetime benefit equivalent as determined by the
board
if the
election is made with the written consent of the
beneficiary or
pursuant to an order of a court of common pleas or
the court of
another state with jurisdiction over the termination
of the
marriage. (E)(G) Following marriage or remarriage, a retirant may
elect
a new optional plan of payment based on the actuarial
equivalent
of the retirant's single lifetime benefit, as
determined by
the board,
except that if the retirant is receiving
a retirement allowance
under an optional plan that provides for
continuation of benefits
after death to a former spouse, the
retirant may elect a new
optional plan of payment only with the
written consent of the
former spouse or pursuant to an order of
the court with
jurisdiction over the termination of the marriage.
Such plan
shall become effective the first of the month following
an
application on a form approved by the board.
(F)(H)(1) Unless one of the following occurs, an application
for
service retirement made pursuant to section 3307.58 or
3307.59
of
the Revised Code by a married person shall be considered an
election of a benefit under option 2 as provided for in division
(A)(2) of this section under which one-half of the lesser benefit
payable during the life of the retirant will be paid after
death
to the retirant's spouse for life as sole beneficiary:
(a) The retirant selects an optional plan under division
(A)
of this section providing for payment after death to
the
retirant's
spouse for life as sole beneficiary of more than
one-half of the
lesser benefit payable during the life of the
retirant. (b) The retirant submits to the retirement board a written
statement signed by the spouse attesting that the spouse consents
to the
retirant's election
to receive a single lifetime
annuity or
a payment under an optional benefit plan under which
after the
death of the retirant the surviving spouse will receive
less than
one-half of the lesser benefit payable during the life
of the
retirant. (2) An application for retirement shall include an
explanation of all of the following: (a) That, if the member is married, unless the
spouse
consents to another plan of payment, the member's
retirement
allowance will be paid under "option 2"
as provided for in
division (A)(2) of this section and consist
of the actuarial
equivalent of the member's retirement allowance
in a lesser amount
payable for life and one-half of the
lesser allowance continuing
after death to the surviving spouse for the
life of the spouse; (b) A description of the alternative plans of
payment
available with the consent of the spouse; (c) That the spouse may consent to another plan of
payment
and the procedure for giving consent; (d) That consent is irrevocable once notice of consent is
filed
with the board. Consent shall be valid only if it is signed, in writing, and
witnessed by a notary public. (3) If the retirant does not select an optional plan of
payment
as described in division
(F)(H)(1)(a) of this section and
the board
does not receive the written statement provided for in
division
(F)(H)(1)(b) of this section, it shall determine and pay
the
retirement
allowance in accordance with this division, except
that the board
may provide by rule for waiver by the board of the
statement and
payment of the benefits other than in accordance
with this
division or payment under section 3307.56 of the
Revised
Code if
the retirant is
unable to obtain the statement due to
absence or incapacity of the spouse or other cause specified by
the board. (G)(I) For the purpose of determining actuarial equivalence
under this section, on the advice of an actuary employed by the
board, the board shall adopt mortality tables that may take into
consideration the membership experience of the state teachers
retirement system and may also include the membership experience
of the public employees retirement system and the school
employees
retirement system.
Sec. 3307.761. (A) As used in this section
and
section
3307.765 of the Revised Code: (1) "Uniform retirement system" or "uniform system" means
the Ohio police and fire pension fund or state highway patrol
retirement system. (2) "Military service credit"
means credit purchased or
obtained under this
chapter or Chapter 742.
or 5505.
of the
Revised Code for service
in the armed forces of the
United States. (B) A
member of the state teachers retirement system
participating in the plan
described in sections 3307.50 to 3307.79
of the Revised Code who has
contributions on deposit with
a
uniform
retirement system shall, in computing years of total
service, be
given full credit for service credit earned under
Chapter 742. or
5505. of the
Revised
Code or for military service
credit if a
transfer to the
state teachers retirement system is
made under
this division.
At the request of the member, the
uniform
system shall
transfer to the state teachers retirement
system, for
each year
of
service,
the sum of the following: (1) An amount equal to the member's accumulated
contributions to the
uniform system
and any
payments by
the
member for military service credit; (2) An amount equal to the lesser of the employer's
contributions to the
uniform system or the amount
that would
have
been contributed by the employer for the service
had the
member
been a member of the state teachers retirement
system at
the time
the credit was earned; (3) Interest, determined as provided in division
(F) of this
section, on the
amounts specified in divisions
(B)(1) and (2) of
this section
from the last day
of the year for which the service
credit in the
uniform
system was earned or in
which
payment was
made for
military service credit
was
purchased or obtained
to the
date the transfer
is made. (C) A member participating in the plan described in
sections
3307.50 to
3307.79 of the Revised Code who has
at least
eighteen
months
one and one-half years of contributing service with the
state
teachers retirement
system, is a former member of
a uniform
retirement system, and
has
received a
refund of contributions to
that
uniform system
shall, in computing
years of total service,
be given full credit
for service credit
earned under
Chapter 742.
or 5505.
of the
Revised
Code or for
military service
credit if,
for each year of
service, the state
teachers retirement system
receives the sum
of
the following: (1) An amount, which shall be paid by the member, equal
to
the amount refunded by the
uniform system
to the member
for that
year for accumulated contributions and
payments for
military
service credit, with interest at a rate established by
the state
teachers retirement board on that amount from the date
of the
refund
to the date of the payment; (2) Interest, which shall be transferred
by the
uniform
system,
on the amount refunded to the member that is attributable
to
the
year of service from the last day of the year for which the
service credit
was earned or in which payment was made for
military service credit
to
the
date the refund was made; (3) An amount, which shall be transferred by the
uniform
system,
equal to the lesser of the employer's contributions to
the
uniform
system or the amount that would have been
contributed by the
employer for the service had the member
been a
member of the
state teachers retirement system at the time the
credit was
earned, with interest
on that amount from the last
day
of the year
for which the service credit was earned or in which
payment was
made for military service to the date of the
transfer. On receipt of payment from the member, the state
teachers
retirement system shall notify the
uniform system, which,
on
receipt of the notice, shall make
the transfer required by this
division. Interest shall be
determined as provided in division
(F) of this section. A member may choose to purchase only part of the credit
the
member is eligible to purchase under this division in any
one
payment, subject to rules of the state teachers retirement
board. (D) A member is
ineligible to obtain credit under this
section for service that
is used in the calculation of any
retirement benefit currently
being paid or payable in the future
under any other retirement program or for service credit that may
be transferred under section 3307.765 of the Revised Code. (E) If a member of
the state teachers retirement system who
is not a current
contributor elects to obtain credit under section
742.21 or
5505.40 of the Revised Code for service for which the
member contributed to the
system or
purchased for military
service credit, the
system shall transfer to the
uniform
retirement
system, as
applicable, the amount specified in division
(D) of section
742.21
or
division (B)(2) of section
5505.40 of
the Revised Code. (F) Interest charged
under this section shall be
calculated
separately for each year of service credit. Unless
otherwise
specified in this section it shall be calculated at the
lesser of
the actuarial assumption rate for that year of the
state teachers
retirement system or of the
uniform retirement
system in
which
the
credit was earned. The interest shall be
compounded
annually. (G) The state teachers retirement
board shall credit to a
member's account in the teachers'
savings fund the amounts
described in divisions
(B)(1) and (C)(1) of this section, except
that the interest paid by the member under division (C)(1)
of this
section shall be credited to the employers' trust fund.
The board
shall credit to the employers' trust fund the amounts
described in
divisions (B)(2) and
(3) and (C)(2) and (3) of this
section. (H) At the request of the state teachers retirement system,
the
Ohio police and fire pension fund or state highway patrol
retirement
system shall certify to the state teachers retirement
system a copy of the records of the service and contributions of a
state teachers retirement system member who seeks service
credit
under this section.
Sec. 3307.763. (A) If the conditions described in division
(B) of section
3307.762 of the Revised Code are met, a member of
the state
teachers retirement system who is not receiving a
pension or benefit from the
state teachers retirement system is
eligible to obtain credit for
service as a member of the
Cincinnati retirement system under this
section. (B) A member of the state teachers retirement system
participating in the plan described in sections 3307.50 to 3307.79
of the Revised Code who has
contributions on deposit with, but is
no longer contributing to,
the
Cincinnati retirement system shall,
in computing years of
service credit, be given credit for service
credit earned under
the
Cincinnati retirement system or purchased
or obtained as
military
service credit if, for each year of
service, the
Cincinnati
retirement
system transfers to the state
teachers
retirement system the sum of the
following: (1) The amount contributed by the member, or, in the case of
military service credit, paid by the member, that is attributable
to the year
of service; (2) An amount equal to the lesser of the
employer's
contributions to the Cincinnati retirement system or the
amount
that would have been contributed by the employer for the service
had
the member been
a member of the state teachers
retirement
system at the time the credit was earned; (3) Interest on the amounts specified in divisions (B)(1)
and (2)
of this section from the last day of the year for which
service credit was
earned or in which payment was made for
military service credit
to the date the transfer is made. (C) A member of the state teachers retirement system with at
least
eighteen months
one and one-half years of contributing
service credit with the
state teachers
retirement system who has
received a refund of the
member's contributions to the Cincinnati
retirement system shall,
in computing years of service, be given
credit for service credit
earned under the Cincinnati retirement
system or purchased
or
obtained as military service credit if, for
each year of service,
the state
teachers
retirement
system
receives the sum of the
following: (1) An amount, paid by the member, equal to the sum of the
following: (a) The amount refunded
by the Cincinnati retirement system
to the member for that year
for contributions and payments for
military service credit,
with interest at a rate established by
the state teachers retirement board on
that amount from the date
of
the refund to the date of payment; (b) The amount of interest, if any, the member received when
the
refund was made that is attributable to the year of service. (2) An amount, transferred by the Cincinnati retirement
system to
the state teachers retirement system, equal to the sum
of the
following: (a) Interest on the amount refunded to the member that is
attributable to the year of service from the last day of the year
for which the service credit was earned or in which payment was
made for
military service credit to the date the refund was made; (b) An amount equal to the lesser of the employer's
contributions
to the Cincinnati retirement system or the amount
that would have
been contributed by the employer for the service
had the member been a
member of the state teachers retirement
system at the time the credit was
earned, with interest on
that
amount from the last day of the year for which the service
credit
was earned to the date of the transfer. (D) The amount transferred under division
(C)(2)(a) of this
section
shall not include any amount of interest the Cincinnati
retirement
system paid to the person when it made the refund. (E) On receipt of payment from the member under division
(C)(1)
of this section, the state teachers retirement system shall
notify the
Cincinnati retirement system. On receipt of the
notice,
the Cincinnati retirement system shall transfer the amount
described in division (C)(2) of this section. (F) Interest charged under this section shall be calculated
separately for each year of service credit. Unless otherwise
specified in
this section, it shall be calculated at the lesser of
the actuarial
assumption rate for that year of the state teachers
retirement
system or the Cincinnati retirement system. The
interest shall be
compounded annually. (G) At the request of the state teachers retirement system,
the
Cincinnati retirement system shall certify to the state
teachers
retirement system a copy of the records of the service
and
contributions of a state teachers retirement system member who
seeks service credit under this section. (H) A member may choose to purchase only part of the credit
the
member is eligible to purchase under division (C) of this
section in
any one payment, subject to rules of the state teachers
retirement board. (I) A member is ineligible to obtain credit under this
section
for service that is used in the calculation of any
retirement benefit
currently being paid or payable in the future. (J) The state teachers retirement board shall credit to the
member's account in the teachers' savings fund the amounts
described in
divisions (B)(1) and (C)(1)(a) of this
section,
except that
interest paid by the member under division (C)(1)(a)
of this section
shall be credited to the employers' trust fund.
The board shall credit to the
employers' trust fund the amounts
described in divisions (B)(2),
(B)(3), (C)(1)(b), and (C)(2) of
this
section.
Sec. 3307.764. (A) If the conditions described in division
(B) of section
3307.762 of the Revised Code are met and a person
who is a
member or former
member
of the state teachers retirement
system
through participation in the plan described in sections
3307.50 to 3307.79 of the Revised Code, but
is not a current
contributor and who
is not receiving a
pension or benefit from the
state
teachers retirement system
elects to receive credit under
the
Cincinnati retirement system
for service for which the person
contributed to the state teachers
retirement system or purchased
or obtained
as military
service
credit, the state
teachers
retirement system shall transfer the
amounts specified in
division
(B) or (C) of this section to the
Cincinnati
retirement system. (B) If the person has contributions on deposit with the
state
teachers retirement system, the retirement system shall, for
each year of
service credit, transfer to the Cincinnati retirement
system the sum of the following: (1) An amount equal to the person's contributions to the
state
teachers retirement system and payments made by the member
for military
service credit; (2) An amount equal to the lesser of the
employer's
contributions to the state teachers retirement system or the
amount
that
would have been contributed by the employer for the
service had
the person been a member of the Cincinnati retirement
system at
the time the credit was earned; (3) Interest on the amounts specified in divisions (B)(1)
and (2)
of this section for the period from the last day of the
year for which the
service credit was earned or in which payment
was made for military
service credit to the date the transfer was
made. (C)(1) If the person has received a refund of accumulated
contributions to the state teachers retirement system, the state
teachers
retirement system
shall, for each year of service credit,
transfer to
the Cincinnati retirement system the sum of the
following: (a) Interest on the amount refunded to the former member
that is
attributable to the year of service from the last day of
the year for which
the service credit was
earned or in which
payment was made for military service credit to the date
the
refund was made; (b) An amount equal to the lesser of the
employer's
contributions to the state teachers retirement system or the
amount that would have been
contributed by the employer for the
service had the person been
a member of the Cincinnati retirement
system at the
time the credit was earned, with interest on that
amount from the last day of
the year for which
the service credit
was earned to the date of the
transfer. (2) The amount transferred under division (C)(1) of this
section
shall not include any amount added to the member's
accumulated
contributions under section 3307.563 of the Revised
Code
and paid under section 3307.56 or 3307.562 of the Revised
Code. (3) On receipt of notice from the Cincinnati retirement
system
that the Cincinnati retirement system has received payment
from a
person described in division (C)(1) of this section, the
state
teachers retirement system shall transfer the amount
described in that
division. (D) Interest charged under this section shall be calculated
separately for each year of service credit. Unless otherwise
specified in
this section, it shall be calculated at the lesser of
the actuarial
assumption rate for that year of the state teachers
retirement
system or the Cincinnati retirement system. The
interest shall be
compounded annually. (E) The transfer of any amount under this section cancels an
equivalent amount of service credit. (F) At the request of the Cincinnati retirement system,
the
state
teachers retirement system shall certify to the Cincinnati
retirement system a copy of the records of the service and
contributions of a
member or former
member of the state teachers
retirement system who elects to receive
service credit under the
Cincinnati retirement system.
Sec. 3307.87. (A)(1) If a member participating in a plan
established under section 3307.81 of the Revised Code is married
at the
time any benefits under the plan commence, benefits
shall
be paid in accordance with division (A)(2) of this section,
unless
the spouse has consented under division (C) of this section to
a
different form of payment. (2) The benefits described in division (A)(1) of this
section
shall be paid in the form of an annuity, which shall
consist of the actuarial
equivalent of the member's benefits, in
an amount that is payable for the
life of the member and one-half
of the amount continuing after the
member's
death to the spouse
for the life of the spouse. (B) If a member participating in a plan established under
section
3307.81 of the Revised Code is married at the time of the
member's death, any benefits that are payable to the member shall
be paid
to the member's spouse, unless the spouse has consented
under
division (C) of this section to the designation of a
different
beneficiary. (C)
A plan established under section 3307.81 of the Revised
Code shall include
requirements
for consent under this section
that are the same as the requirements specified
in division (a)(2)
of section 417 of the
Internal Revenue Code, 26 U.S.C.A.
417(a)(2), as amended.
Consent is valid only if it is evidenced by
a signed statement that is witnessed by a notary public. Each
plan may
waive
the requirement of consent if the spouse
is
incapacitated or cannot be located or for any other reason
specified
by the plan or in
the regulations adopted under that
section
rules adopted by the state teachers retirement board. Consent or waiver is effective only with regard to the spouse
who is the
subject of the consent or waiver.
Sec. 3309.21. (A) The school employees retirement board
shall
have
prepared annually by or under the supervision of an
actuary an actuarial
valuation of the pension assets, liabilities,
and funding requirements of the
school employees retirement system
as established pursuant to this chapter.
The actuary shall
complete the valuation in accordance with actuarial
standards of
practice promulgated by the actuarial standards board of the
American academy of actuaries and prepare a
report of the
valuation. The report shall include all of the following: (1) A summary of the benefit provisions evaluated; (2) A summary of the census data and financial information
used in the
valuation; (3) A description of the actuarial assumptions, actuarial
cost method,
and asset valuation method used in the valuation,
including a statement of the
assumed rate of payroll growth and
assumed rate of growth or decline in the
number of members
contributing to the retirement system; (4) A summary of findings that includes a statement of the
actuarial
accrued pension liabilities and unfunded actuarial
accrued pension
liabilities; (5) A schedule showing the effect of any changes in the
benefit
provisions, actuarial assumptions, or cost methods since
the last annual
actuarial valuation; (6) A statement of whether contributions to the retirement
system are
expected to be sufficient to satisfy the funding
objectives established by the
board. The board shall submit the report to the
Ohio retirement
study
commission
council and the
standing committees of the house
of representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
May
following the year for which the valuation
was made. (B) At such times as the school employees
retirement board
determines, and at least once in each
quinquennial period, the
board shall have prepared by or
under the supervision of an
actuary an actuarial investigation of
the
mortality, service, and
other experience of
the members, retirants, and
beneficiaries of
the retirement system, and
SERS
retirants and other system
retirants as defined in section
3309.341 of the Revised Code to
update the actuarial assumptions used in the
actuarial valuation
required by division (A) of this section. The
actuary shall
prepare a report of the actuarial investigation. The report
shall
be prepared and any recommended changes in actuarial assumptions
shall
be
made in accordance with the actuarial standards of
practice promulgated by the
actuarial standards board of the
American
academy of actuaries. The report shall include all of
the following: (1) A summary of relevant decrement and economic assumption
experience
observed over the period of the investigation; (2) Recommended changes in actuarial assumptions to be used
in
subsequent actuarial valuations required by division
(A) of
this section; (3) A measurement of the financial effect of the recommended
changes in
actuarial assumptions. The board shall submit the report to the
Ohio retirement
study
commission
council and the
standing committees of the house
of representatives and the senate with
primary
responsibility for
retirement legislation not later than the first day of
May
following the last fiscal year of the
period the report covers. (C) The board may at any time request the actuary to make
any
studies or actuarial
valuations to determine the
adequacy of
the rates of contribution as provided by section
3309.49 of the
Revised Code, and those rates may be
adjusted by
the board, as
recommended by the actuary, effective as of the
first of any year
thereafter. (D) The board shall have prepared by or under the
supervision of an actuary an actuarial analysis of any introduced
legislation
expected to have a measurable financial impact on the
retirement system. The
actuarial analysis shall be completed in
accordance with the actuarial
standards of practice promulgated by
the actuarial standards board of the
American academy of
actuaries. The actuary
shall prepare a report of the actuarial
analysis, which shall include all of
the following: (1) A summary of the statutory changes that are being
evaluated; (2) A description of or reference to the actuarial
assumptions and
actuarial cost method used in the report; (3) A description of the participant group or groups
included in the
report; (4) A statement of the financial impact of the legislation,
including
the resulting increase, if any, in the employer normal
cost percentage; the
increase, if any, in actuarial accrued
liabilities; and the per cent of payroll
that would be required to
amortize the increase in actuarial accrued
liabilities as a level
per cent of covered payroll for all active members over
a period
not to exceed thirty years; (5) A statement of whether the scheduled contributions to
the system
after the proposed change is enacted are expected to be
sufficient to satisfy
the funding objectives established by the
board. Not later than sixty days from the date of introduction of
the
legislation, the board shall submit a copy of the actuarial
analysis to
the
legislative budget office of the legislative
service commission, the standing
committees of the house of
representatives and the senate with primary
responsibility for
retirement legislation, and the
Ohio retirement study
commission
council. (E) The board shall have
prepared annually a report giving a
full accounting of the
revenues and costs relating to the
provision of benefits under
sections 3309.375 and 3309.69 of the
Revised
Code. The report shall
be made as of June 30, 1997, and
the thirtieth day of June
of each year thereafter.
The report
shall include the following: (1) A description of the statutory authority for the
benefits provided; (2) A summary of the benefits; (3) A summary of the eligibility requirements for the
benefits; (4) A statement of the number of participants eligible for
the
benefits; (5) A description of the accounting, asset valuation, and
funding method used to provide the benefits; (6) A statement of the net assets available for the
provision of the benefits as of the last day of the fiscal
year; (7) A statement of any changes in the net assets
available
for the provision of benefits, including participant and
employer
contributions, net investment income, administrative
expenses, and
benefits provided to participants, as of the last day
of the
fiscal year; (8) For the last six consecutive fiscal years, a schedule
of
the net assets available for the benefits, the
annual cost of
benefits, administrative expenses incurred, and
annual employer
contributions allocated for the provision of
benefits; (9) A description of any significant changes that affect
the
comparability of the report required under this
division; (10) A statement of the amount paid under division
(D)(C) of
section
3309.69 of the Revised Code. The board shall submit the report to the
Ohio retirement
study
commission
council and the standing committees of the house
of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirty-first day of
December following the year for
which the report was made.
Sec. 3309.43.
A
(A) Except as provided in division (B) of
this section, a member of the school employees retirement system
who has
ceased to be an employee, and who is also a member of
either the public
employees retirement system or the state
teachers retirement system, or both,
may not withdraw
his
the
member's accumulated contributions,
unless he.
(B) On application, the school employees retirement board
shall pay a member described in division (A) of this section the
member's accumulated contributions if either of the following
applies: (1) The member also withdraws
his
the
member's
contributions
from such other systems.
The (2) The member is a participant in a plan established under
section 145.81 or 3307.81 of the Revised Code and has withdrawn
the member's contributions under plans described in sections
145.201 to 145.79 and 3307.50 to 3307.79 of the Revised Code. The school employees retirement board
may waive the annual
expense fee where a member is contributing to another
state
retirement system provided such member is not at the same time
contributing to the school employees retirement system.
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)(1) 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.
(2) Beginning on a date selected by the school employees
retirement board, which shall be not later than July 1, 2004, a
surviving spouse or other sole dependent beneficiary may elect, in
lieu of a monthly payment under division (A)(1) of this section, a
plan of payment consisting of both of the following: (a) A lump sum in an amount the surviving spouse or other
sole dependent beneficiary designates that constitutes a portion
of the allowance that would be payable under division (A)(1) of
this section; (b) The remainder of that allowance in monthly payments. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. The lump sum amount designated by the surviving spouse or
other sole dependent beneficiary under division (A)(2)(a) of this
section shall be not less than six times and not more than
thirty-six times the monthly amount that
would be payable to the
surviving spouse or other sole dependent
beneficiary under
division (A)(1) of this section and shall not result in a monthly
benefit that is less than fifty per cent of that monthly amount. (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
who elect to receive
monthly benefits shall receive the
greater of the benefits
provided in division (B)(1)(a)
or (b) as
allocated in accordance with division
(B)(5) 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 |
29 or more | 60 |
(2) 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 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
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; (ii) Regardless of age, 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) "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) 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 September 16, 1998,
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)(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. (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. (6) 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
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)
The final average salary used in the calculation of a
benefit
payable pursuant to division (A) or (B) of this section
to
a
survivor or beneficiary 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"). (E) 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. 3309.46. (A) The retirement allowance calculated
under
section 3309.36, 3309.38, or 3309.381 of the Revised Code
shall be
paid as provided in this section. If the member is
eligible to
elect a plan of payment under this section, the
election shall be
made on
the application for
retirement. A plan of payment elected
under this section
shall be effective only if it is certified by
the actuary engaged
by the school employees retirement board to be
the actuarial equivalent
of the
member's retirement allowance and
is approved by the retirement
board. (B)(1) Unless the member is eligible to elect another plan
of payment, a member who retires under section 3309.36, 3309.38,
or 3309.381 of the Revised Code shall receive a retirement
allowance under "plan A," which shall consist of the actuarial
equivalent of the member's retirement allowance determined
under
section
3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser
amount payable for life and one-half of such allowance
continuing after death to the member's surviving
spouse for the
life
of the spouse. A member may elect to receive a retirement allowance
under a
plan of payment other than "plan A" if the member is not
married
or either the member's spouse consents in writing to the member's
election to a plan of payment other than "plan
A" or the board
waives the requirement that the spouse consent. An application for retirement shall include an explanation
of
all of the following: (a) That, if the member is married, unless the
spouse
consents to another plan of payment, the member's
retirement
allowance will be paid under "plan
A," which consists of the
actuarial equivalent of the member's retirement allowance in a
lesser amount payable for life and one-half of the allowance
continuing after death to the surviving spouse for the life of
the
spouse; (b) A description of the alternative plans of
payment,
including all plans described in divisions (B)(2) and (3) of this
section, available with the consent of the spouse; (c) That the spouse may consent to another plan of
payment
and the procedure for giving consent; (d) That consent is irrevocable once notice of consent is
filed
with the board. Consent shall be valid only if it
is in writing, signed by
the spouse, and witnessed by an employee of the
school employees
retirement
system or a notary public. The board may waive the
requirement of
consent if the spouse is incapacitated or cannot be
located or for any other reason specified by the board. Consent
or
waiver is effective only with regard to
the
spouse who is the
subject of the consent or
waiver. (2) A member eligible to elect to receive a retirement
allowance under a plan of payment other than "plan A" shall
receive the retirement allowance under
the plan described in
division (B)(3) of this section or one of the following
plans
elected at the time the member makes application for
retirement: (a) "Plan B," which shall consist of an allowance
determined
under section 3309.36, 3309.38, or 3309.381 of the
Revised Code; (b) "Plan C," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for life and one-half or some other
portion
of the allowance continuing after death to
the member's sole
surviving beneficiary designated at the time of the member's
retirement, provided that the amount payable to the beneficiary
does not exceed the amount payable to the member; (c) "Plan D," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for life and continuing after
death
to a
surviving designated beneficiary designated at the time of
the
member's retirement; (d) "Plan E," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for a certain period from the member's
retirement date as elected by the member and approved by the
retirement
board, and on the member's death before the expiration
of
that certain
period, the member's lesser retirement allowance
continued
for the
remainder of that period to, and in such order,
the beneficiaries
as the member has nominated by written
designation and filed
with the
retirement board. Monthly benefits shall not be paid to joint beneficiaries,
but they may receive the present value of any remaining payments
in a lump sum settlement. If all beneficiaries die before the
expiration of the certain period, the present value of all such
payments yet remaining in such period shall be paid to the estate
of the beneficiary last receiving. (3)(a) Beginning on a date selected by the board, which shall
be not later than July 1, 2004, a member may elect, in lieu of a
plan of payment under division (B)(1) or (2) of this section, a
plan
consisting of both a lump sum in an amount the member
designates
that constitutes a portion of the retirement allowance
payable
under a plan described in division (B)(1) or (2) of this
section
and the remainder of the allowance payable under that plan
in monthly payments. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. (b) The lump sum amount designated by the member shall be not
less than six times and not more than thirty-six times the monthly
amount that would be payable to
the member under the plan of
payment elected under this section
had the lump sum not been
elected and shall not result in a monthly benefit that is less
than fifty per cent of that amount.
(4) An election under division (B)(2) or (3) of this section
shall be made at the time the member makes application for
retirement.
(5) A member eligible to elect to receive a retirement
allowance under a plan of payment other than "plan A" because the
member
is unmarried who fails to make an election on retirement
shall
receive a retirement allowance under "plan B." (C) Until the first payment of any retirement allowance is
made, as provided in sections 3309.36, 3309.38, or 3309.381 of
the
Revised Code, a member may change the member's election
of a
payment
plan if the election is made in accordance with and is
consistent
with division (B) of this section. (D) If the retirement allowances due and paid under the
above provisions of this section are in a total amount less than
(1) the accumulated contributions, (2) the deposits for
additional
credit as provided by section 3309.31 of the Revised
Code, (3) the
deposits for additional annuities as provided by
section 3309.47
of the Revised Code, (4) the deposits for
repurchase of service
credit as provided by section 3309.26 of
the Revised Code, (5) the
accumulated contributions provided by
section 3309.65 of the
Revised Code, (6) the deposits for
purchase of military service
credit provided by section 3309.021 or
3309.022
of the Revised
Code, and (7) the deposits for the purchase of
service credit
provided by section 3309.73 of the
Revised Code,
standing to the
credit of the member at the time of
retirement, then the
difference between the total amount of the
allowances paid and the
accumulated contributions and other
deposits shall be paid to the
beneficiary provided under division
(D) of section 3309.44 of the
Revised Code. (E)(1) The death of a spouse or any other designated
beneficiary following the member's retirement shall cancel any
plan of payment to provide continuing lifetime benefits to the
spouse or designated beneficiary and the retirant shall receive
the retirant's single lifetime retirement allowance
equivalent as
determined
by the board. (2) On divorce, annulment, or marriage dissolution, a
retirant receiving a retirement allowance under a plan of payment
that provides for continuation of all or part of the allowance
after death for the lifetime of the member's
surviving spouse may
elect to cancel the plan and receive the member's single
lifetime
retirement allowance equivalent as determined by the retirement
board, except that in the case of a member who retires on or
after
July 24, 1990, the election may be made only with the
written
consent of the spouse or pursuant to an order of the
court with
jurisdiction over the termination of the marriage.
The election
shall be made on a form provided by the board and
shall be
effective the month following its receipt by the board. (3) Following marriage or remarriage, a retirant who is
receiving a benefit pursuant to "plan B" may elect a new plan of
payment under division (B)(1), (2)(b), or (2)(c) of this section
based on the actuarial equivalent of the member's single
lifetime
retirement allowance as determined by the board. The plan shall
become effective the first day of the month following receipt by
the board of an application on a form approved by the board. Sec. 3309.69. (A) As used in this section, "ineligible
individual" means all of the following: (1) A former member receiving benefits pursuant to section
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised
Code for whom eligibility is established more than five years
after June 13, 1981, and who, at the time of establishing
eligibility, has accrued less than ten years of service credit,
exclusive of credit obtained after January 29, 1981, pursuant to
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised
Code; (2) The spouse of the former member; (3) The beneficiary of the former member receiving
benefits
pursuant to section 3309.46 of the Revised Code. (B) The school employees retirement board may enter into
an
agreement with insurance companies, health
insuring
corporations,
or government
agencies authorized to do business in the state for
issuance of a
policy or contract of health, medical, hospital, or
surgical
benefits, or any combination thereof, for those
individuals receiving service retirement or a disability or
survivor benefit
subscribing to the plan and their eligible
dependents. If all or any portion of the policy or contract premium is
to
be paid by any individual receiving service
retirement or a
disability or survivor benefit, the
person shall, by written
authorization, instruct the board to deduct the premiums agreed
to
be paid by the individual to the
companies, corporations, or
agencies. The board may contract for coverage on the basis of
part or
all of the cost of the coverage to be paid from
appropriate funds
of the school employees retirement system. The cost paid
from the
funds of the system shall be included in the
employer's
contribution rate provided by sections
3309.49 and 3309.491 of the
Revised Code. The board shall not pay or reimburse the cost for
health care under this section or section 3309.375 of the Revised
Code for any ineligible individual. The board may provide for self-insurance of risk or level
of
risk as set forth in the contract with the companies,
corporations, or agencies, and may provide through the
self-insurance method specific benefits as authorized by the
rules
of the board. (C)
If the board provides health, medical, hospital, or
surgical benefits through any means other than a health
insuring
corporation, it shall offer to
each
individual eligible
for the
benefits the alternative of receiving benefits
through
enrollment
in a health insuring
corporation, if all of the
following apply: (1) The health insuring corporation
provides health care
services
in the geographical area in which the individual
lives;
(2) The eligible individual was receiving health care
benefits through a health maintenance organization or a health
insuring
corporation before
retirement;
(3) The rate and coverage provided by the health
insuring
corporation to eligible
individuals is
comparable to that
currently provided by the board under division
(B) of this
section. If the rate or coverage provided
by the health insuring
corporation is
not comparable to that
currently provided by the
board under division (B) of this
section, the board may deduct the
additional cost from the eligible
individual's monthly benefit.
The health insuring corporation shall
accept as an
enrollee
any eligible individual who requests enrollment.
The board shall permit each eligible individual to change
from one plan to another at least once a year at a time determined
by
the board.
(D) The board shall, beginning the month following receipt
of satisfactory evidence of the payment for coverage, make a
monthly payment to each recipient of service retirement, or a
disability or survivor benefit under the school employees
retirement system who is eligible for insurance coverage under
part B of "The Social Security Amendments of 1965," 79 Stat. 301,
42 U.S.C.A. 1395j, as amended, except that the board shall make
no
such payment to any ineligible individual. Effective on the
first
day of the month after
the effective date of this amendment
April
9, 2001, 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, 1999.
(E)(D) 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)(E) The board shall make all other necessary rules
pursuant
to the purpose and intent of this section.
Sec. 5505.12. (A) The state highway patrol retirement board
shall
have prepared annually by or under the supervision of an
actuary an actuarial
valuation of the pension assets, liabilities,
and funding requirements of the
state highway patrol retirement
system as established pursuant to this
chapter. The actuary shall
complete the valuation in accordance with
actuarial standards of
practice promulgated by the actuarial standards board
of the
American academy of actuaries and prepare a
report of the
valuation. The report shall include all of the following: (1) A summary of the benefit provisions evaluated; (2) A summary of the census data and financial information
used in the
valuation; (3) A description of the actuarial assumptions, actuarial
cost method,
and asset valuation method used in the valuation,
including a statement of the
assumed rate of payroll growth and
assumed rate of growth or decline in the
number of members
contributing to the retirement system; (4) A summary of findings that includes a statement of the
actuarial
accrued pension liabilities and unfunded actuarial
accrued pension
liabilities; (5) A schedule showing the effect of any changes in the
benefit
provisions, actuarial assumptions, or cost methods since
the last annual
actuarial valuation; (6) A statement of whether contributions to the retirement
system are
expected to be sufficient to satisfy the funding
objectives established by the
board. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary responsibility for
retirement legislation not later than the first day
of July
following the year for which the
valuation was made. (B) At such times as the state highway patrol
retirement
board determines, and at least once in each five-year
period after
January 1, 1966, the board shall have prepared by or
under the
supervision of an
actuary an actuarial investigation of the
mortality, service, and other
experience of the members,
retirants, and beneficiaries
to update the actuarial assumptions
used in the actuarial valuation
required by division (A) of this
section. The
actuary shall prepare a report of the actuarial
investigation. The report
shall be prepared and any recommended
changes in actuarial assumptions shall
be
made in accordance with
the actuarial standards of practice promulgated by the
actuarial
standards board of the American
academy of actuaries. The report
shall include all of the following: (1) A summary of relevant decrement and economic assumption
experience
observed over the period of the investigation; (2) Recommended changes in actuarial assumptions to be used
in
subsequent actuarial valuations required by division
(A) of
this section; (3) A measurement of the financial effect of the recommended
changes in
actuarial assumptions. The board shall submit the report to the
Ohio retirement
study council and the
standing committees of the house of
representatives and the senate with
primary responsibility for
retirement legislation not later than the first day
of November
following the last fiscal year of the
period the report covers. (C) The board may at any time request the actuary to make
any studies or
actuarial valuations to
determine the adequacy of
the rates of contributions provided by
section 5505.15 of the
Revised Code. (D) The board shall have prepared by or under the
supervision of an actuary an actuarial analysis of any introduced
legislation
expected to have a measurable financial impact on the
retirement system. The
actuarial analysis shall be completed in
accordance with the actuarial
standards of practice promulgated by
the actuarial standards board of the
American academy of
actuaries. The actuary
shall prepare a report of the actuarial
analysis, which shall include all of
the following: (1) A summary of the statutory changes that are being
evaluated; (2) A description of or reference to the actuarial
assumptions and
actuarial cost method used in the report; (3) A description of the participant group or groups
included in the
report; (4) A statement of the financial impact of the legislation,
including
the resulting increase, if any, in the employer normal
cost percentage; the
increase, if any, in actuarial accrued
liabilities; and the per cent of payroll
that would be required to
amortize the increase in actuarial accrued
liabilities as a level
per cent of covered payroll for all active members over
a period
not to exceed thirty years; (5) A statement of whether the scheduled contributions to
the system
after the proposed change is enacted are expected to be
sufficient to satisfy
the funding objectives established by the
board. Not later than sixty days from the date of introduction of
the
legislation, the board shall submit a copy of the actuarial
analysis to
the
legislative budget office of the legislative
service commission, the standing
committees of the house of
representatives and the senate with primary
responsibility for
retirement legislation, and the
Ohio retirement study council. (E) The board shall have
prepared annually a report giving a
full accounting of the
revenues and costs relating to the
provision of benefits under
section 5505.28 of the Revised
Code.
The report
shall be made as of December
31, 1997, and the
thirty-first day of December of each year
thereafter. The report
shall include the following: (1) A description of the statutory authority for the
benefits provided; (2) A summary of the benefits; (3) A summary of the eligibility requirements for the
benefits; (4) A statement of the number of participants eligible for
the
benefits; (5) A description of the accounting, asset valuation, and
funding method used to provide the benefits; (6) A statement of the net assets available for the
provision of the benefits as of the last day of the fiscal
year; (7) A statement of any changes in the net assets
available
for the provision of benefits, including participant and
employer
contributions, net investment income, administrative
expenses, and
benefits provided to participants, as of the last day
of the
fiscal year; (8) For the last six consecutive fiscal years, a schedule
of
the net assets available for the benefits, the
annual cost of
benefits, administrative expenses incurred, and
annual employer
contributions allocated for the provision of
benefits; (9) A description of any significant changes that affect
the
comparability of the report required under this
division; (10) A statement of the amount paid under division
(C)(B) of
section
5505.28 of the Revised Code. The board shall submit the report to the
Ohio retirement
study
council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirtieth day of
June
following the year for which the report was made.
Sec. 5505.28. (A) The state highway patrol 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 persons receiving
pensions and
subscribing to the plan. Notwithstanding
any other provision of
this chapter, the
policy or contract may also include coverage for
any eligible
individual's spouse and dependent children and for
any of the individual's
sponsored dependents as the board
considers appropriate. If all or any portion of the policy or contract premium is
to
be paid by any individual receiving a service,
disability, or
survivor pension or benefit, the individual shall, by
written
authorization, instruct the board to deduct from the
individual's
pension or
benefit the premium agreed to be paid by the individual
to
the company,
corporation, or agency. 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 state highway patrol retirement system.
The cost paid from
the funds of the system
shall be included in
the employer's
contribution rate as provided by section 5505.15
of the Revised
Code. (B)
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 (A) 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 (A) 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.
(C) The board shall, beginning the month following receipt
of satisfactory evidence of the payment for coverage, pay monthly
to each recipient of a pension
under the state highway patrol
retirement system who is eligible
for medical insurance coverage
under part B of "The Social
Security Amendments of 1965," 79 Stat.
301, 42 U.S.C.A. 1395j,
as amended, an
amount established by board
rule not exceeding the
basic premium for such coverage.
(D)(C) The board shall establish by rule requirements for
the
coordination of
any coverage, payment, or benefit provided
under this section 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 school employees retirement
system.
(E)(D) The board shall make all other necessary rules
pursuant
to the purpose and intent of this section.
SECTION 2. That existing sections 145.01, 145.04, 145.05,
145.091,
145.19, 145.191, 145.192, 145.20, 145.22, 145.23, 145.27,
145.35, 145.38, 145.384, 145.40, 145.45,
145.46, 145.56, 145.58,
145.80,
145.81,
145.811, 145.812, 145.813, 145.82, 145.85,
145.86,
145.87, 145.88, 145.91, 145.92, 145.95, 145.97, 742.14, 742.37,
742.372, 742.45, 3105.80, 3307.01, 3307.39,
3307.51,
3307.56,
3307.561,
3307.563, 3307.58, 3307.60, 3307.761,
3307.763,
3307.764, 3307.87,
3309.21, 3309.43, 3309.45, 3309.46, 3309.69,
5505.12, and 5505.28
and sections 742.371 and 742.373 of the
Revised
Code are
hereby
repealed.
SECTION 3. Section 145.01 of
the Revised Code is
presented in
this act as a composite of the
section as amended by
Sub. H.B.
158, Am. Sub. H.B. 405, and Am.
Sub. S.B. 164 of
the 124th General
Assembly. Section 145.27 of the Revised Code is
presented in
this
act as a composite of the section as amended by
both Sub.
H.B.
535 and Am. Sub. S.B. 180 of the 123rd General
Assembly.
Section
145.56 of the Revised Code is
presented in this act as a
composite
of the section as amended by
both Sub. H.B. 535 and Am.
Sub. S.B.
180 of the 123rd General
Assembly. Section 3307.58 of the Revised
Code is
presented
in
this act as a composite of the section as
amended by
both Sub.
H.B. 535 and Sub. S.B. 270 of
the 123rd
General
Assembly. The
General Assembly, applying the
principle
stated in
division (B) of
section 1.52 of the Revised
Code that
amendments
are to be
harmonized if reasonably capable of
simultaneous
operation, finds
that the composite is the resulting
version of
the section in
effect prior to the effective date of
the section
as presented in
this act.
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