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S. B. No. 247As IntroducedAs Introduced
124th General Assembly | Regular Session | 2001-2002 |
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SENATOR Blessing
A BILL
To amend sections 145.46, 3307.01, 3307.39, 3307.51,
3307.56, 3307.561,
3307.563, 3307.58, 3307.60,
3307.761, 3307.763, 3307.764, 3307.87, 3309.45, and
3309.46
of the
Revised Code to create in the
State
Teachers Retirement System (STRS), School Employees
Retirement System, and Public
Employees
Retirement
System the option of receiving
retirement benefits
as a partial lump sum followed
by a reduced monthly
allowance and to make other changes to the law
governing STRS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.46, 3307.01, 3307.39, 3307.51,
3307.56, 3307.561,
3307.563, 3307.58, 3307.60, 3307.761, 3307.763,
3307.764, 3307.87, 3309.45, and 3309.46 of the Revised Code be
amended to
read as
follows:
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) 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 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 not more
than thirty-six times 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 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. 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.
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: (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 the monthly amount
that would be payable to the member as a single lifetime benefit
and not more than thirty-six times 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
before the first payment
is made to a former member under section 3307.58 or 3307.59 of the
Revised Code, option 1
as provided
for in division (A)(1) of this
section shall be paid to
the spouse
or other sole dependent
beneficiary.
Beginning on a date selected by the board, which shall be not
later than July 1, 2004, the spouse or sole beneficiary of a
former member whose death occurred prior to the receipt of the
first payment under section 3307.58 or 3307.59 of the Revised Code
may elect, in lieu of option 1, a plan of payment consisting of
both of the following:
(1) 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;
(2) 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 (C)(1) of this section shall be not
less than six times the monthly amount that would be payable as
the retirant's single life annuity and not more than thirty-six
times that amount. (C)(D) 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)(E) 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)(F) 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)(G)(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)
(G)(1)(a) of this section and
the board
does not receive the written statement provided for in
division
(F)
(G)(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)(H) 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. 3309.45. 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 the monthly amount that
would be payable to the surviving spouse or other sole dependent
beneficiary under division (A)(1) of this section and not more
than thirty-six times that 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 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 not more than thirty-six
times 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.
Section 2. That existing sections 145.46, 3307.01, 3307.39,
3307.51, 3307.56, 3307.561, 3307.563, 3307.58, 3307.60, 3307.761,
3307.763, 3307.764, 3307.87, 3309.45, and 3309.46 of the Revised
Code are
hereby
repealed.
Section 3. 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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