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Sub. H. B. No. 98 As Reported by the House Banking, Pensions and Securities CommitteeAs Reported by the House Banking, Pensions and Securities Committee
125th General Assembly | Regular Session | 2003-2004 |
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Representatives Willamowski, Hughes, Gibbs, Allen, Otterman, J. Stewart, Schneider, Schmidt, Reidelbach
A BILL
To amend sections 145.323, 145.46, 145.92, 3105.80, 3105.82, 3307.60,
3307.67, 3307.87, 3309.374, 3309.46, and 3309.92 of the Revised Code to make changes to the
optional benefit plans for retirants and the
cost-of-living increase in the Public Employee Retirement System, State Teachers Retirement System, and School Employees
Retirement System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.323, 145.46, 145.92, 3105.80, 3105.82,
3307.60, 3307.67, 3307.87, 3309.374, 3309.46, and 3309.92
of the Revised Code be amended to read as follows: Sec. 145.323. (A)
The public employees retirement
board
shall
annually increase each allowance,
pension, or benefit
payable
under this chapter
by
three per cent,
except that no
allowance,
pension, or benefit
shall
exceed the limit
established
by section
415 of the
"Internal Revenue Code of
1986," 100 Stat.
2085, 26
U.S.C.A. 415, as amended. The first increase is payable to all persons becoming
eligible after June 30, 1971, upon such persons receiving an
allowance for twelve months. The increased amount is payable for
the ensuing twelve-month period or until the next increase is
granted under this section, whichever is later. Subsequent
increases shall be determined from the date of the first increase
paid to the former member in the case of an allowance being paid
a
beneficiary under an option, or from the date of the first
increase to the survivor first receiving an allowance or benefit
in the case of an allowance or benefit being paid to the
subsequent survivors of the former member. The date of the first increase under this section
becomes the
anniversary date for any future increases. The allowance or benefit used in the first calculation of
an
increase under this section shall remain as the base for all
future increases, unless a new base is established. (B)
If payment of a portion of a benefit is made to an
alternate payee under section 145.571 of the Revised Code,
increases under this section granted while the order is in effect
shall be apportioned between the alternate payee and the benefit recipient in the same proportion that the amount
being paid to the alternate payee bears to the amount paid to the
benefit recipient.
(C) The board shall make all rules necessary to carry out
this
section.
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) Except as provided in division (B)(1)(b) of this section, 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. (b) A member may elect to receive the member's a retirement
allowance
under a plan of payment other than "plan A" if either of the following is the case: (i) 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;
(ii) A plan of payment providing for payment in a specified amount continuing after the member's death to a former spouse is required by a court order issued prior to the effective date of the member's retirement under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property. (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 or there is a court order dividing marital property that provides for payment in a specified amount, 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)(3) 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)(4) of this section or one of the
following plans:
(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. (e) "Plan F," 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 each of two or more
surviving beneficiaries designated at the time of the member's
retirement, in such portion as specified at retirement. (3)(4)(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)(4)(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)(5) An election under division
(B)(2)(3) or (3)(4) of this section
shall be made at the time the member
makes application for
retirement.
(5)(6) 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)(3)(b), or
(2)(3)(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. 145.92. If a member participating in
a
PERS defined
contribution plan
is married at the
time
benefits under the plan
are to
commence,
unless the spouse consents to another plan
of
payment or the spouse's consent is waived, 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. 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
rules adopted by the public
employees
retirement board. A plan shall waive the requirement of consent if a plan of payment that provides for payment in a specified amount continuing after the member's death to a former spouse is required by a court order issued prior to the effective date of the member's retirement under section 3105.171 or 3105.65 of the Revised Code or laws of another state regarding division of marital property. Consent or waiver is effective only with regard to the spouse
who
is the subject of the consent or waiver.
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)(4) of section 145.46, division (B) of section
3307.60, or division (B)(3)(4) 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. 3105.82. An order described in section
3105.81 of the
Revised Code shall meet all of the
following
requirements: (A) Be on the form created under section 3105.90 of the
Revised
Code; (B) Set forth the name and address of the public retirement
program
subject to the order or, if the court determines that the
participant has
contributions on deposit with more than one public
retirement program, the name and address of each public retirement
program that is potentially subject to the order; (C) Set forth the names, social security numbers, and
current
addresses of the participant and alternate payee; (D) Specify the amount to be paid to the alternate payee as
one of the following: (1) As both a monthly dollar amount should the participant
elect a benefit
and as a
one-time payment should the participant
elect a lump sum
payment; (2) As a percentage of a fraction determined as follows of a
monthly
benefit or lump sum payment: (a) The numerator of the fraction shall be the number of
years
during which the participant was both a member of a public
retirement program
and married to the alternate payee. (b) The denominator, which shall be determined by the public
retirement program at the time the participant elects to take the
benefit or
payment, shall be the participant's total years of
service credit or, in the
case of a participant in a retirement
plan established under section 145.81, 3307.81, or 3309.81 or Chapter
3305. of the Revised Code, years of
participation in the plan. (E)
If the participant is eligible for more than one benefit
or lump sum
payment, specify in accordance with division (D)
of
this section the amount, if any, to be paid to the alternate payee
from
each
benefit or lump sum payment. (F)
Require an individual who is a participant or alternate
payee
to notify the public retirement program in writing of a
change in the
individual's mailing
address; (G) Notify the alternate payee of the following: (1) The payee's right to payment under the order is
conditional on the
participant's right to a benefit payment or
lump sum payment; (2) The possible reduction under section 145.571, 742.462,
3307.371,
3309.671, or 5505.261 of the Revised Code of the amount
paid to the alternate payee; (3) The
possible termination of the payee's rights as
described in
section 3105.86 of the Revised Code. (H) Apply to payments made by the public retirement program
after
retention of an order under section 145.571, 742.462,
3305.21, 3307.371,
3309.671, or 5505.261 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. A portion of the retirant's lesser benefit
shall be paid for life to each of two or more beneficiaries named
at retirement, in such portion as specified at retirement. (5) Option 5. 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)(6) Option 56. A plan of payment established by the state
teachers retirement board combining any of the features of
options
1, 2, and 45.
(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)(6) 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. (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. (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. (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. (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. (H)(1) Unless one of the following occurs Except as otherwise provided in this division, 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. The exceptions are as follows: (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) A plan of payment providing for payment in a specified amount continuing after the retirant's death to a former spouse is required by a court order issued prior to the effective date of retirement under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property. (c) 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 or there is a court order dividing marital property that provides for payment in a specified amount, 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
(H)(1)(a) of this section, no court has ordered a plan of payment described in division (H)(1)(b) of this section, and
the
board
does not receive the written statement provided for in
division
(H)(1)(b)(c) of this section, it the board 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. (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. 3307.67. (A)
The state teachers retirement board shall
annually increase each allowance or
benefit payable under
sections
3307.50 to 3307.79 of the Revised
Code by
three per cent,
except
that no allowance or benefit shall exceed the limit
established by
section
415 of the
"Internal Revenue Code of 1986,"
100 Stat.
2085, 26 U.S.C.A. 415,
as amended. The first increase is payable to all persons becoming
eligible after June 30, 1971, upon such persons receiving an
allowance or benefit for twelve months. The increased
amount is
payable for the ensuing twelve-month period or until
the next
increase is granted under this section, whichever is
later.
Subsequent increases shall be determined from the date of
the
first increase paid to the former member in the case of an
allowance being paid a beneficiary under an option, or from the
date of the first increase to the survivor first receiving an
allowance or benefit in the case of an allowance or benefit being
paid to the subsequent survivors of the former member. The date of the first increase under this section
becomes the
anniversary date for any future increases. The allowance or benefit used in the first calculation of
an
increase under this section shall remain as the base for all
future increases, unless a new base is established. (B)
If payment of a portion of a benefit is made to an
alternate payee under section 3307.371 of the Revised Code,
increases under this section granted while the order is in effect
shall be apportioned between the alternate payee and the benefit recipient in the same proportion that the amount
being paid to the alternate payee bears to the amount paid to the
benefit recipient.
(C) The board shall make all rules necessary to carry out
this
section.
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 or the spouse's consent is waived under that division. (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 or the spouse's consent is waived under that division. (C)
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
rules adopted by the state teachers retirement board. A plan shall waive the requirement of consent if a plan of payment that provides for payment in a specified amount continuing after the member's death to a former spouse is required by a court order issued prior to the effective date of the member's retirement under section 3105.171 or 3105.65 of the Revised Code or laws of another state regarding division of marital property. Consent or waiver is effective only with regard to the spouse
who is the
subject of the consent or waiver.
Sec. 3309.374. (A)
The school employees retirement
board
shall
annually increase each
allowance,
pension, or
benefit
payable under this chapter by
three per cent, except that no
allowance,
pension, or benefit
shall
exceed the limit established
by section
415 of the
"Internal
Revenue Code of 1986," 100 Stat.
2085, 26
U.S.C.A. 415,
as
amended. The first increase is payable to all persons becoming
eligible after June 30, 1971, upon such persons receiving an
allowance, pension, or benefit for twelve months. The increased amount is payable for the ensuing
twelve-month
period or until the next increase is granted under
this section,
whichever is later. Subsequent increases shall be
determined from
the date of the first increase paid to the former
member in the
case of an allowance being paid a beneficiary under
an option, or
from the date of the first increase to the survivor
first
receiving an allowance or benefit in the case of an
allowance or
benefit being paid to the subsequent survivors of
the former
member. The date of the first increase under this section
becomes the
anniversary date for any future increases. The allowance or benefit used in the first calculation of
an
increase under this section shall remain as the base for all
future increases, unless a new base is established. Any increase
resulting
from payment of a recalculated benefit under Section 3
of
Substitute Senate Bill No. 270 of the
123rd
general assembly
shall be included in the calculation of
future increases under
this section. (B)
If payment of a portion of a benefit is made to an
alternate payee under section 3309.671 of the Revised Code,
increases under this section granted while the order is in effect
shall be apportioned between the alternate payee and the retirant or disability benefit recipient in the same proportion that the amount
being paid to the alternate payee bears to the amount paid to the retirant or disability
benefit recipient.
(C) The board shall make all rules necessary to carry out
this
section.
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) Except as provided in division (B)(1)(b) of this section, 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. (b) A member may elect to receive a retirement allowance
under a
plan of payment other than "plan A" if the either of the following is the case: (i) 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;
(ii) A plan of payment providing for payment in a specified amount continuing after the member's death to a former spouse is required by a court order issued prior to the effective date of the member's retirement under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property. (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 or there is a court order dividing marital property that provides for payment in a specified amount, 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)(3) and (3)(4) 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)(3) 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)(4) of this section or one of the following
plans:
(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. (e) "Plan F," 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 each of two
or more surviving beneficiaries designated at the time of the
member's retirement, in such portion as specified at retirement. (3)(4)(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)(3) 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)(3) 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)(5) An election under division (B)(2)(3) or (3)(4) of this section
shall be made at the time the member makes application for
retirement.
(5)(6) 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
the portion of the plan of payment to provide providing continuing lifetime benefits to the deceased
spouse or deceased designated beneficiary and the retirant shall receive
the actuarial equivalent of 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 portion of the plan providing continuing lifetime benefits to that spouse and receive the member's actuarial equivalent of the retirant'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 both of the following apply: (a) A retirant who is
receiving a benefit pursuant to "plan B" may elect a new plan of
payment under division (B)(1), (2)(3)(b), or (2)(3)(c) of this section
based on the actuarial equivalent of the member's retirant's single
lifetime
retirement allowance as determined by the board. The (b) A retirant who is receiving a benefit pursuant to a plan of payment providing for payment to a former spouse pursuant to a court order described in division (B)(1)(b)(ii) of this section may elect a new plan of payment under division (B)(3)(e) of this section based on the actuarial equivalent of the retirant's single lifetime retirement allowance as determined by the board if the new plan of payment elected does not reduce the payment to the former spouse. 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. 3309.92. If a member participating in a plan
established
under section 3309.81 of the Revised Code is married
at the
time
benefits under the plan are to commence, before making
any payment the school
employees retirement system, or the entity
administering the plan pursuant to
a contract
with the school
employees retirement board, shall obtain the
consent of the
member's spouse to the form of payment selected by
the member, unless the spouse's consent is waived under this section. A plan established under section 3309.81 of the Revised
Code
shall
include requirements for consent under this section that are
the same as
the requirements specified in section
417(a)(2) of the
"Internal
Revenue
Code of 1986," 100
Stat. 2085, 26
U.S.C.A.
417(a)(2), as
amended. A plan may waive consent if the spouse
cannot be located or for any
other reason specified in the
regulations adopted under that
section. A plan shall waive consent if a plan of payment that provides for payment in a specified amount continuing after the member's death to a former spouse is required by a court order issued prior to the effective date of the member's retirement under section 3105.171 or 3105.65 of the Revised Code or laws of another state regarding division of marital property. Consent or waiver is effective only with regard to the spouse
who
is the subject of the consent or waiver.
Section 2. That existing sections 145.323, 145.46, 145.92, 3105.80, 3105.82,
3307.60, 3307.67, 3307.87, 3309.374, 3309.46, and 3309.92 of the Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act take effect July 1, 2004.
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