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(126th General Assembly)(Amended House Bill Number 10)
AN ACTTo amend sections 145.384, 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code regarding an election by a retirant of one of the state's public retirement systems who has married or remarried to change the plan under which a retirement benefit is paid, to amend the versions of sections 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code that are scheduled to take effect on October 27, 2006, to continue provisions of this act on and after that effective date, and to declare an emergency. Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 145.384, 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code be amended to read as follows:
Sec. 145.384. (A) As used in this section, "PERS retirant"
means
a
PERS retirant who is not subject to division (C) of
section
145.38 of the Revised Code. For purposes of this section,
"PERS
retirant"
also includes
both of the following: (1) A member who retired under section 145.383 of
the Revised
Code; (2) A retirant whose retirement allowance resumed under
section 145.385 of the Revised Code. (B)(1) An other system retirant or PERS retirant who has
made
contributions under section 145.38 or 145.383 of the Revised
Code
or, in the case of a retirant described in division (A)(2) of
this
section, section 145.47 of the Revised Code may file an
application with the public employees retirement
system to receive either a
benefit, as provided in division (B)(2) of this section, or payment of the retirant's contributions made under those sections, as provided in division (H) of
this section. (2) A
benefit under this section shall
consist of
an
annuity
having
a reserve equal to the
amount of the
retirant's
accumulated
contributions for the period
of employment,
other than
the
contributions
excluded pursuant to
division
(B)(4)(a) or
(b)
of
section 145.38 of the Revised Code,
and an
amount of
the
employer's contributions determined by the board. (a) Unless, as described in division (I) of this section, the application is accompanied by a statement of the spouse's consent to another form of payment or the board waives the requirement of spousal consent, a PERS retirant or other system retirant who is married at the time of application for a benefit under this section shall receive a monthly annuity under which the actuarial equivalent of the retirant's single life annuity is paid in a lesser amount for life and one-half of the lesser amount continues after the retirant's death to the surviving spouse. (b) A PERS
retirant
or other system
retirant who is not subject to division (B)(2)(a) of this section shall elect either to receive
the benefit
as a monthly
annuity
or a lump sum payment
discounted to
the
present
value
using a rate of
interest determined by the board.
A
retirant who elects to receive
a monthly annuity
shall select
one
of the following as the plan of
payment: (i) The retirant's single life annuity; (ii) The actuarial equivalent of the retirant's single life
annuity in an equal or lesser amount for life and continuing after death to
a surviving beneficiary designated at the time the plan of payment
is selected. If a retirant who is eligible to select a plan of payment under division (B)(2)(b) of this section fails to do so, the benefit shall be paid as a monthly annuity under the plan of payment specified in rules adopted by the public employees retirement board.
(c) Notwithstanding divisions (B)(2)(a) and (b) of this section, if a monthly annuity would be less than twenty-five dollars per month, the retirant shall receive a lump sum payment. (C)(1) The death of a spouse or other designated
beneficiary
under a plan of payment described in
division (B)(2) of
this section cancels that plan of payment. The
PERS retirant or
other system retirant shall receive the
equivalent of the
retirant's single life annuity, as determined by
the board, effective the first day of
the month
following receipt by the board of notice of the death. (2) On divorce, annulment, or marriage dissolution, a PERS
retirant or other system retirant receiving a benefit described in
division (B)(2) of this section under which the beneficiary is the
spouse may, with the written consent of the spouse or pursuant to
an order of the court with jurisdiction over the termination of
the marriage, elect to cancel the plan and receive the equivalent
of the retirant's single life annuity as determined by the
board. The election shall be made on a form provided
by the board and shall be effective the month following its
receipt by the board. (D) Following a marriage or remarriage, a PERS retirant or
other system retirant who is receiving a benefit described in division
(B)(2)(b)(i) of this section may elect a new plan of payment under division (B)(2)(b) of this
section based on the actuarial equivalent of the retirant's single
life annuity as determined by the board. The If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage. The plan elected under this division shall be
effective the first day of the month following on the date of receipt by the
board of an application on a form approved by the board, but any change in the amount of the benefit shall commence on the first day of the month following the effective date of the plan. (E) A benefit payable under division (B)(2) of this section shall commence
on
the latest of the following: (1) The last day for which compensation for all employment
subject to section 145.38, 145.383, or 145.385 of the Revised
Code
was paid; (2) Attainment by the PERS retirant or other system
retirant
of age sixty-five; (3) If the PERS retirant or other system retirant was
previously employed under section 145.38, 145.383, or 145.385
of
the Revised
Code and is receiving or
previously received a
benefit
under this
section, completion of
a period of twelve
months since
the
effective date of the last
benefit under this
section; (4) A date specified by the retirant. (F)(1) If a PERS retirant or other system retirant
dies
while employed in employment subject to section 145.38,
145.383,
or 145.385
of the Revised Code, a lump
sum payment
calculated in
accordance
with division
(B)(2) of this
section
shall be paid to the
retirant's
beneficiary under
division
(G)
of this section. (2) If at the time of death a PERS retirant or other
system
retirant receiving a monthly annuity under division (B)(2)(b)(i) of this section has received less
than the
retirant would have received as a lump sum payment,
the difference
between the amount received and the amount that
would have been
received as a lump sum payment shall be paid to
the retirant's
beneficiary under division
(G) of this
section. (3) If a beneficiary receiving a monthly annuity under division (B)(2) of this section dies and, at the time of the beneficiary's death, the total of the amounts paid to the retirant and beneficiary are less than the amount the retirant would have received as a lump sum payment, the difference between the total of the amounts received by the retirant and beneficiary and the amount that the retirant would have received as a lump sum payment shall be paid to the beneficiary's estate. (G) A PERS retirant or other system retirant employed
under
section 145.38, 145.383, or 145.385 of the Revised Code
may
designate
one or
more persons as
beneficiary to receive any
benefits payable
under division (B)(2)(b) of
this section
due to death. The designation
shall be in
writing
duly
executed on a form provided by the public
employees
retirement
board, signed by the PERS retirant or other
system
retirant, and
filed with the board prior to death. The
last
designation of
a beneficiary revokes all previous
designations.
The PERS
retirant's or other system retirant's
marriage, divorce,
marriage
dissolution, legal separation,
withdrawal of account,
birth of
a child, or adoption of a child
revokes all previous
designations. If there is no designated
beneficiary, the
beneficiary is the beneficiary determined under
division (D) of
section 145.43 of the Revised Code. If any
benefit payable under
this section due to the death of a PERS
retirant or other system
retirant is not claimed by a beneficiary
within five years after
the death, the amount payable shall be
transferred to the income
fund and thereafter paid to the
beneficiary or the estate of the
PERS retirant or other system
retirant on application to the
board. (H)(1) A PERS retirant or other system retirant who applies under division (B)(1) of this section for payment of the retirant's contributions and is unmarried or is married and, unless the board has waived the requirement of spousal consent, includes with the application a statement of the spouse's consent to the payment, shall be paid the contributions made under section 145.38 or 145.383 of the Revised Code or, in the case of a retirant described in division (A)(2) of this section, section 145.47 of the Revised Code, plus interest as provided in section 145.471 of the Revised Code, if the following conditions are met:
(a) The retirant has not attained sixty-five years of age and has terminated employment subject to section 145.38, 145.383, or 145.385 of the Revised Code for any cause other than death or the receipt of a benefit under this section.
(b) Three months have elapsed since the termination of the retirant's employment subject to section 145.38, 145.383, or 145.385 of the Revised Code, other than employment exempted from contribution pursuant to section 145.03 of the Revised Code.
(c) The retirant has not returned to public service, other than service exempted from contribution pursuant to section 145.03 of the Revised Code, during the three-month period. (2) Payment of a retirant's contributions cancels the retirant's right to a benefit under division (B)(2) of this section. (I) A statement of a spouse's consent under division (B)(2) of this section to the form of a benefit or under division (H) of this section to a payment of contributions is valid only if signed by the spouse and witnessed by a notary public. The board may waive the requirement of spousal 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. (J) No amount received under this section shall be
included
in
determining an additional benefit under section
145.323 of the
Revised Code or any other
post-retirement benefit
increase.
Sec. 145.46. (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: (a) "Plan B," which shall consist of an allowance
determined
under section 145.33, 145.331, or 145.34 of the
Revised Code; (b) "Plan C," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for life and one-half or some other
portion of the
allowance continuing after death to
the member's sole
surviving
beneficiary designated at the time of the member's
retirement,
provided that the amount payable to the beneficiary
does not
exceed the amount payable to the member; (c) "Plan D," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for life and continuing after
death
to a surviving
beneficiary designated at the time of
the member's retirement; (d) "Plan E," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 145.33, 145.331, or 145.34 of the Revised Code in a
lesser
amount payable for a certain period from the member's
retirement
date as elected by the member and approved by the
retirement
board, and on the member's death before the expiration of
that
certain
period the member's lesser retirement allowance payable
for
the remainder
of that period to the member's surviving
designated
beneficiary nominated
by written designation filed with
the retirement board. Should the nominated beneficiary designated in writing die
prior to the expiration of the guarantee period, then for the
purpose of completing payment for the remainder of the guarantee
period, the present value of such payments shall be paid to the
estate of the beneficiary last receiving. (3)(a) Beginning on a date selected by the retirement board,
which shall be not later than July 1, 2004, a member may elect to
receive a retirement allowance
under a plan of payment consisting
of both a lump sum in an amount
the member designates that
constitutes a portion of the member's
retirement allowance under a
plan described in division (B) of
this section and the remainder
as a monthly allowance under that
plan. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. (b) The lump sum designated by a member shall be not less
than six times and not more than thirty-six times the monthly
amount that would be payable to the
member under the plan of
payment elected under division (B)(3)(a)
of this section had the
lump sum not been elected and shall not result in a monthly
allowance that is less than fifty per cent of that monthly amount. (4) An election under division
(B)(2) or (3) of this section
shall be made at the time the member
makes application for
retirement. (5) A member eligible to elect to receive the member's
retirement
allowance under a plan of payment other than "plan A"
because the
member
is unmarried who fails to make an election on
retirement shall
receive the member's retirement allowance under
"plan B." (C) If the retirement allowances, as a single life annuity
or payment plan as provided in this section, due and paid are in
a
total amount less than (1) the accumulated contributions, and
(2)
other deposits made by the member as provided by this chapter,
standing to the
credit of
the member at the time of retirement,
then the difference
between the total amount of the allowances
paid and the
accumulated contributions and other deposits shall be
paid to the
beneficiary provided under division (D) of section
145.43 of the
Revised Code. (D)(1) The death of a spouse or any designated beneficiary
following retirement shall cancel any plan of payment to provide
continuing lifetime benefits to the spouse or beneficiary and
return the retirant to the retirant's single lifetime
benefit
equivalent, as
determined by the board, to be effective the month
following
receipt by the board of notice of the death. (2) On divorce, annulment, or marriage dissolution, a
retirant receiving a retirement allowance under a plan that
provides for continuation of all or part of the allowance after
death for the lifetime of the retirant's
surviving spouse may,
with the
written consent of the spouse or pursuant to an order of
the
court with jurisdiction over the termination of the marriage,
elect to cancel the plan and receive the member's single
lifetime
benefit
equivalent as determined by the retirement board. The
election
shall be made on a form provided by the board and shall
be
effective the month following its receipt by the board. (E) Following a marriage or remarriage, a retirant who is
receiving the retirant's retirement allowance under "plan
B" may
elect a
new plan of payment under division (B)(1), (2)(b), or
(2)(c) of
this section based on the actuarial equivalent of the
retirant's single
lifetime benefit as determined by the board.
The If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage. The
plan elected under this division shall
become effective the first day of the month
following on the date of
receipt by
the board of an application on a form
approved by the
board, but any change in the amount of the retirement allowance shall commence on the first day of the month following the effective date of the plan. (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. 742.3711. (A) On application for retirement as
provided in section 742.37 of the Revised Code, a member of the
fund may elect to receive a retirement allowance payable
throughout the member's life, or may elect, on the
application for
retirement, to receive the actuarial
equivalent of the member's
retirement
allowance in a lesser amount payable for life and
continuing
after death to a surviving designated beneficiary under
one
of the following optional plans, provided the amount payable
to
the beneficiary shall not exceed the amount payable to the
retiring member of the fund, and is certified by the actuary
engaged by the board of trustees of the Ohio police and fire
pension fund to be the actuarial equivalent of the member's
retirement allowance and is approved by the board. (1) Option 1. The member's lesser retirement allowance
shall
be paid for life to the sole beneficiary designated at the
time of the member's retirement. (2) Option 2. One-half or some other portion of the
member's
lesser retirement allowance shall be paid for life to the
sole
beneficiary designated at the time of the member's
retirement. (3) Option 3. Upon the member's death before the
expiration
of a
certain period from the retirement date and elected by the
member and
approved by the retirement board, the member's lesser
retirement allowance shall be continued for the remainder of
that
period to the
beneficiary the member has nominated by written
designation
and filed
with the retirement board. Should the nominated beneficiary designated in writing
become
deceased 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. (B)(1)
The death of a
spouse
nominated as beneficiary or the death of any other
nominated
beneficiary following
a member's retirement
or election
under section 742.44 of the Revised Code
to participate in the
deferred retirement option plan shall cancel
any
optional plan of
payment to provide continuing lifetime
benefits
to such nominated
beneficiary and return the member of
the fund
to the member'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
member
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 member'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 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. (C) Following marriage or remarriage, a member of the fund
receiving a pension retirement allowance under section 742.37 or 742.39 of the Revised
Code may elect not later than one year after the date of marriage
or
remarriage a new optional plan of payment based on the
actuarial
equivalent of the member's single lifetime benefit as
determined
by the
board. The The plan elected under this division and the member's lesser
retirement
allowance shall
become effective on the date the
election is made of receipt by the board of an application
on a form approved by the board. (D)(1) Unless one of the following occurs, an application
for
retirement 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 retirement
allowance 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 retirement allowance 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
retirement
allowance 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 retirement
allowance 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" 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 an employee of the board or a
notary public. (3) If the retirant does not select an optional plan as
described in division (D)(1)(a) of this section and the board does
not receive the written statement provided for in division
(D)(1)(b)
of this section, it shall determine and pay the
retirement
allowance in accordance with division (A)(2) of this
section,
except that the board may provide by rule for waiver by
the board
of the statement and payment of the allowance other than
in
accordance with division (A)(2) of this section if the retirant
is unable to obtain the statement due to absence or incapacity of
the spouse or other cause specified by the board. (E) A member of the fund who has elected an optional plan
under this section or section 742.3715 of the Revised Code may,
with the consent of the designated beneficiary, cancel the
optional plan and receive the retirement allowance payable
throughout life the member would have received had
the member not
elected the
optional plan, if the member makes a request to cancel
the
optional plan
not later than one year after the later of
September 9, 1988, or
the date on which the member first receives
a payment under this
section or section 742.3715 of the Revised
Code. Cancellation of
the optional plan shall be effective the
month after acceptance
of the request by the trustees of the fund.
No payment or
adjustment shall be made in the retirement allowance
payable
throughout the member's life to compensate for the lesser
allowance the member received under the optional plan. The request to cancel the optional plan shall be made on a
form provided by the fund and shall be valid only if the
completed
form includes a signed statement of the designated
beneficiary's
understanding of and consent to the cancellation. The signature
shall be verified by the trustees of the fund prior
to their
acceptance of the cancellation. (F) Any option elected and payments made under this
section
shall be in addition to any benefit payable under
divisions (D),
(E), and (F) of section 742.37 of the Revised
Code. (G) A
person is eligible to receive a benefit
increase under
this
division if the person is receiving a retirement allowance or
benefit
under an optional plan elected under this section or
section
742.3715 of the Revised Code based on an award made prior
to July
24, 1986. A person is not eligible to receive an
increase
under this
division if the person is
receiving a
pension or
benefit in accordance with rules in force on April 1,
1947, that
govern the granting of pensions and benefits and that
provide an
increase in the original pension or benefit from time
to time
pursuant to changes in the salaries of active members. The
board shall
annually increase all benefits
payable
under
this section or section 742.3715 of the Revised
Code to
eligible
persons by the actuarial equivalent of
three hundred sixty
dollars, except that
no 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 eligible
persons on
July
1, 1988. The increase is
payable for
the ensuing
twelve-month
period or until the next increase is
granted under
this section,
whichever is later. The date of the first increase payable under
this
section
shall be the anniversary date for future increases.
Sec. 3307.60. (A) Upon application for retirement as
provided in section 3307.58 or
3307.59 of the Revised Code, the
retirant may elect
a plan of payment under this division or, on
and after the date specified in
division (B) of this section, a
plan of payment under that division. Under this division, the
retirant
may elect to receive a single lifetime benefit, or
may
elect to
receive the actuarial equivalent of
the retirant's
benefit in a
lesser amount, payable for life, and continuing after
death
to a
beneficiary under one of the following optional plans: (1) Option 1. The retirant's lesser benefit shall be paid
for life
to the sole beneficiary named at retirement. (2) Option 2. Some other portion of the retirant's benefit
shall be
paid for life to the sole beneficiary named at
retirement.
The
beneficiary's monthly amount shall not exceed the
monthly amount
payable to the retirant during the retirant's
lifetime. (3) Option 3. The retirant's lesser benefit established as
provided
under option 1 or option 2 shall be paid for life to the
sole
beneficiary named at retirement, except that in the event of
the
death of the sole beneficiary or termination of a marital
relationship between the retirant and the sole beneficiary the
retirant may elect to return to a single lifetime benefit
equivalent as determined by the state teachers retirement board,
if, in
the case of
termination of a marital relationship, the
election is made with
the written consent of the beneficiary or
pursuant to an order of
the court with jurisdiction over
termination of the marital
relationship. (4) Option 4. Upon the retirant's death before the
expiration of a
certain period from the retirement date and
elected by the
retirant, and
approved by the board, the
retirant's
benefit
shall be continued for the remainder of such period to the
beneficiary. Monthly benefits shall not be paid to joint
beneficiaries, but they may receive the present value of any
remaining payments in a lump sum settlement. If all
beneficiaries
die before the expiration of the certain period,
the present value
of all payments yet remaining in such period
shall be paid to the
estate of the beneficiary last receiving. (5) Option 5. A plan of payment established by the state
teachers retirement board combining any of the features of
options
1, 2, and 4. (B)
Beginning on a date selected by the state teachers
retirement board, which shall be not later than July 1, 2004, a
retirant may elect, in lieu of a plan of payment under division
(A) of this section, a plan consisting of both of the following: (1) A lump sum in an amount the member designates that
constitutes a portion of the member's single lifetime
benefit; (2) Either of the following: (a) The remainder of the retirant's single
lifetime benefit; (b) The actuarial equivalent of the remainder of the
retirant's benefit in a lesser
amount, payable for life, and
continuing after death to a
beneficiary under one of the options
described in divisions (A)(1)
to (5) of this section. In the event of the death of the sole beneficiary or
termination of a marital relationship between the retirant and the
sole beneficiary, the retirant may elect to receive the actuarial
equivalent of the remainder of the retirant's single lifetime
benefit except that, in the case of termination of a marital
relationship, the election may be made only with the written
consent of the beneficiary or pursuant to an order of the court
with jurisdiction over termination of the marital relationship. The amount designated by the member under division (B)(1) of
this section shall be not less than six times and not more than
thirty-six times the monthly amount
that would be payable to the
member as a single lifetime benefit
and shall not result in a
monthly allowance that is less than fifty per cent of that amount. (C) Until the first payment is made to a former member
under
section 3307.58 or
3307.59 of the Revised Code, the former
member
may
change the selection of a plan of payment. (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 If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The plan elected under this division
shall
become effective on the first date of the month following receipt by the board of
an
application
on a form approved by the board, but any change in the amount of the benefit shall commence on the first day of the month following the effective date of the plan. (H)(1) Unless one of the following occurs, an application
for
service retirement made pursuant to section 3307.58 or
3307.59
of
the Revised Code by a married person shall be considered an
election of a benefit under option 2 as provided for in division
(A)(2) of this section under which one-half of the lesser benefit
payable during the life of the retirant will be paid after
death
to the retirant's spouse for life as sole beneficiary: (a) The retirant selects an optional plan under division
(A)
of this section providing for payment after death to
the
retirant's
spouse for life as sole beneficiary of more than
one-half of the
lesser benefit payable during the life of the
retirant. (b) The retirant submits to the retirement board a written
statement signed by the spouse attesting that the spouse consents
to the
retirant's election
to receive a single lifetime
annuity or
a payment under an optional benefit plan under which
after the
death of the retirant the surviving spouse will receive
less than
one-half of the lesser benefit payable during the life
of the
retirant. (2) An application for retirement shall include an
explanation of all of the following: (a) That, if the member is married, unless the
spouse
consents to another plan of payment, the member's
retirement
allowance will be paid under "option 2"
as provided for in
division (A)(2) of this section and consist
of the actuarial
equivalent of the member's retirement allowance
in a lesser amount
payable for life and one-half of the
lesser allowance continuing
after death to the surviving spouse for the
life of the spouse; (b) A description of the alternative plans of
payment
available with the consent of the spouse; (c) That the spouse may consent to another plan of
payment
and the procedure for giving consent; (d) That consent is irrevocable once notice of consent is
filed
with the board. Consent shall be valid only if it is signed, in writing, and
witnessed by a notary public. (3) If the retirant does not select an optional plan of
payment
as described in division
(H)(1)(a) of this section and
the
board
does not receive the written statement provided for in
division
(H)(1)(b) of this section, it shall determine and pay
the
retirement
allowance in accordance with this division, except
that
the board
may provide by rule for waiver by the board of the
statement and
payment of the benefits other than in accordance
with this
division or payment under section 3307.56 of the
Revised
Code if
the retirant is
unable to obtain the statement due to
absence or incapacity of the spouse or other cause specified by
the board. (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. 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: (a) "Plan B," which shall consist of an allowance
determined
under section 3309.36, 3309.38, or 3309.381 of the
Revised Code; (b) "Plan C," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for life and one-half or some other
portion
of the allowance continuing after death to
the member's sole
surviving beneficiary designated at the time of the member's
retirement, provided that the amount payable to the beneficiary
does not exceed the amount payable to the member; (c) "Plan D," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for life and continuing after
death
to a
surviving designated beneficiary designated at the time of
the
member's retirement; (d) "Plan E," which shall consist of the actuarial
equivalent of the member's retirement allowance determined under
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a
lesser amount payable for a certain period from the member's
retirement date as elected by the member and approved by the
retirement
board, and on the member's death before the expiration
of
that certain
period, the member's lesser retirement allowance
continued
for the
remainder of that period to, and in such order,
the beneficiaries
as the member has nominated by written
designation and filed
with the
retirement board. Monthly benefits shall not be paid to joint beneficiaries,
but they may receive the present value of any remaining payments
in a lump sum settlement. If all beneficiaries die before the
expiration of the certain period, the present value of all such
payments yet remaining in such period shall be paid to the estate
of the beneficiary last receiving. (3)(a) Beginning on a date selected by the board, which shall
be not later than July 1, 2004, a member may elect, in lieu of a
plan of payment under division (B)(1) or (2) of this section, a
plan
consisting of both a lump sum in an amount the member
designates
that constitutes a portion of the retirement allowance
payable
under a plan described in division (B)(1) or (2) of this
section
and the remainder of the allowance payable under that plan
in monthly payments. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. (b) The lump sum amount designated by the member shall be not
less than six times and not more than thirty-six times the monthly
amount that would be payable to
the member under the plan of
payment elected under this section
had the lump sum not been
elected and shall not result in a monthly benefit that is less
than fifty per cent of that amount. (4) An election under division (B)(2) or (3) of this section
shall be made at the time the member makes application for
retirement. (5) A member eligible to elect to receive a retirement
allowance under a plan of payment other than "plan A" because the
member
is unmarried who fails to make an election on retirement
shall
receive a retirement allowance under "plan B." (C) Until the first payment of any retirement allowance is
made, as provided in sections 3309.36, 3309.38, or 3309.381 of
the
Revised Code, a member may change the member's election
of a
payment
plan if the election is made in accordance with and is
consistent
with division (B) of this section. (D) If the retirement allowances due and paid under the
above provisions of this section are in a total amount less than
(1) the accumulated contributions, (2) the deposits for
additional
credit as provided by section 3309.31 of the Revised
Code, (3) the
deposits for additional annuities as provided by
section 3309.47
of the Revised Code, (4) the deposits for
repurchase of service
credit as provided by section 3309.26 of
the Revised Code, (5) the
accumulated contributions provided by
section 3309.65 of the
Revised Code, (6) the deposits for
purchase of military service
credit provided by section 3309.021 or
3309.022
of the Revised
Code, and (7) the deposits for the purchase of
service credit
provided by section 3309.73 of the
Revised Code,
standing to the
credit of the member at the time of
retirement, then the
difference between the total amount of the
allowances paid and the
accumulated contributions and other
deposits shall be paid to the
beneficiary provided under division
(D) of section 3309.44 of the
Revised Code. (E)(1) The death of a spouse or any other designated
beneficiary following the member's retirement shall cancel any
plan of payment to provide continuing lifetime benefits to the
spouse or designated beneficiary and the retirant shall receive
the retirant's single lifetime retirement allowance
equivalent as
determined
by the board. (2) On divorce, annulment, or marriage dissolution, a
retirant receiving a retirement allowance under a plan of payment
that provides for continuation of all or part of the allowance
after death for the lifetime of the member's
surviving spouse may
elect to cancel the plan and receive the member's single
lifetime
retirement allowance equivalent as determined by the retirement
board, except that in the case of a member who retires on or
after
July 24, 1990, the election may be made only with the
written
consent of the spouse or pursuant to an order of the
court with
jurisdiction over the termination of the marriage.
The election
shall be made on a form provided by the board and
shall be
effective the month following its receipt by the board. (3) Following marriage or remarriage, a retirant who is
receiving a benefit pursuant to "plan B" may elect a new plan of
payment under division (B)(1), (2)(b), or (2)(c) of this section
based on the actuarial equivalent of the member's single
lifetime
retirement allowance as determined by the board. The If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The plan elected under division (E)(3) of this section shall
become effective on the first day date of the month following receipt by
the board of an application on a form approved by the board, but any change in the amount of the benefit shall commence on the first day of the month following the effective date of the plan.
Sec. 5505.162. (A) On application for retirement as
provided in section 5505.16 of the Revised Code, a member of the
state highway patrol retirement system may elect, on a form
provided by the state highway patrol retirement board, to receive
the pension that the member is eligible to receive on retirement
under that section in one of the following forms: (1) A single lifetime pension; (2) The
actuarial equivalent of
the single lifetime
pension
that the member may elect under division (A)(1) of this
section in a lesser annual amount
payable for
the member's
life and continuing after
the member's death to a
surviving
designated beneficiary under one of the following
optional plans,
provided the annual amount payable to the
designated beneficiary
shall not exceed the annual amount payable
to such retiring
member, the amount is certified by the actuary
employed by the
system to be the actuarial equivalent of
the
member's pension,
and the amount is approved by the board: (a) Option 1.
The member's lesser pension shall be
paid
for life to
the member's sole beneficiary designated at
the
time of retirement. (b) Option 2. One-half or some other portion of
the
member's lesser pension shall be paid for life to
the
member's
sole beneficiary designated at the time of
retirement. (c) Option 3. Upon
death before the expiration of a
certain period from
the member's retirement date as elected
by
the member and approved by the board,
the
member's lesser
pension shall be continued for
the remainder of such period to the
beneficiaries, and in such
order, as designated by
the member
in writing and filed with
the board. No monthly payments shall be
paid to joint beneficiaries, but
they may jointly receive the
present value of any remaining
payments in a lump sum settlement.
If all designated
beneficiaries die before the expiration of such
period, the
present value of all the payments yet remaining in the
period
shall be paid to the estate of the beneficiary last
receiving
such payments.
(3) If the member has attained age fifty-one with at least
twenty-five years' total service or fifty-two with at least twenty
years' total service, a pension consisting of both a partial
benefit lump sum in an amount the member designates that
constitutes a
portion of the single lifetime pension the member
may elect
under division (A)(1) of this section and the actuarial
equivalent
of the remainder of the single lifetime pension payable
for the
member's life, provided an actuary employed by the system
certifies the actuarial equivalent and the board approves the
partial benefit lump
sum payment and the amount to be paid as the
actuarial equivalent. The amount designated by a member shall be not less than six
times the monthly amount that would be payable to the member as a
single lifetime pension under division (A)(1) of this section and
not more than sixty times that amount. A member who has attained the age of fifty-one with
twenty-five years of service who elects a partial benefit lump sum
may designate an amount that does not exceed an amount equal to
one month's pension for each month of service beyond twenty-five
years. A member who has attained the age of fifty-two with twenty
years of service who elects a partial benefit lump sum may
designate an amount that does not exceed an amount equal to one
month's pension for each month of service beyond twenty years. (B)(1) The death of a spouse designated as beneficiary or
the death of any other designated beneficiary following
retirement
shall cancel any optional plan of payment
selected under division
(A)(2) of this section to provide
continuing lifetime benefits to
such designated beneficiary and
return the member to the
equivalent of
the member's single
lifetime
pension, 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
member
receiving a pension under a plan that provides for
continuation of
all or part of the pension after
death for
the lifetime of
the member'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 equivalent of
the member's
single lifetime
pension
as determined by the 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. (C) Following marriage or remarriage, a member may elect a
new optional plan of payment
under division (A)(2) of this section
based on the actuarial equivalent of
the member's single
lifetime pension as determined by the
board. The If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The plan elected under this division
shall
become effective on the first day date of the month following
receipt by
the board of an application on a form approved by the
board, but any change in the amount of the pension shall commence on the first day of the month following the effective date of the plan. (D) A member who has elected an optional plan under
division
(A)(2) of this
section may, with the written consent of the
designated
beneficiary, cancel the optional plan and receive the
single lifetime pension
that the
member
would have received had
the member elected the single lifetime pension under division
(A)(1) of this section, if
the member makes a request to
cancel
the
optional plan not later than one year after the date on which
the
member first receives a payment under the plan. Cancellation
of
the optional plan shall be effective the month after acceptance
of the request by the board. No payment or adjustment shall be
made in the
single lifetime pension
to
compensate for the lesser pension
the member
received under
the optional plan. The request to cancel the optional plan shall be made on a
form provided by the board and shall be valid only if the
completed form includes a signed statement of the designated
beneficiary's understanding of and consent to the cancellation.
The designated beneficiary's signature shall be verified by the
board prior to its acceptance of the cancellation. (E) Any option elected and payments made under
division
(A)(2) of this
section shall be in addition to any pension payable
to the
member's surviving spouse, children, or parents under
section
5505.17 of the Revised Code.
SECTION 2. That existing sections 145.384, 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code are hereby repealed.
SECTION 3. That the versions of sections 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code that are scheduled to take effect on October 27, 2006, 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)(a) Except as provided in divisions (B)(1)(b) and (c) 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 receive 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;
(ii) A plan of payment providing for payment in a specified portion of the allowance continuing after the member's death to a former spouse is required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property prior to the effective date of the member's retirement. (c) If a member is subject to division (B)(1)(b)(ii) of this section and the board has received a copy of the order described in that division, the board shall accept the member's election of a plan of payment under this section only if the member complies with both of the following: (i) The member elects a plan of payment that is in accordance with the order described in division (B)(1)(b)(ii) of this section. (ii) If the member is married, the member elects "plan F" and designates the member's current spouse as a beneficiary under that plan unless that spouse consents in writing to not being designated a beneficiary under any plan of payment or the board waives the requirement that the current spouse consent. (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 issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of 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. (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)(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 to the retirant for life and some portion of the lesser amount continuing after death to two, three, or four
surviving beneficiaries designated at the time of the member's
retirement. The portion of the lesser allowance that continues after the member's death shall be allocated among the beneficiaries at the time of the member's retirement. If the member elects this plan as required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and compliance with the court order requires the allocation of a portion less than ten per cent to any beneficiary, the member shall allocate a portion less than ten per cent to that beneficiary in accordance with that order. In all other circumstances, no portion allocated under this plan of payment shall be less than ten per cent. The total of the portions allocated shall not exceed one hundred per cent of the member's lesser allowance. (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)(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. (5) An election under division
(B)(3) or (4) of this section
shall be made at the time the member
makes application for
retirement. (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 the portion of the plan of payment providing
continuing lifetime benefits to the deceased spouse or deceased designated beneficiary. The retirant shall receive the actuarial equivalent of the retirant's single lifetime
benefit, as
determined by the board, based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. The change shall 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 portion of the plan providing continuing lifetime benefits to that spouse. The retirant shall receive the actuarial equivalent of the retirant's single
lifetime
benefit
as determined by the retirement board based on the number of remaining beneficiaries, with no change in amount payable to any remaining beneficiary. 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)(1) Following a marriage or remarriage, both of the following apply: (1)(a) A retirant who is
receiving the retirant's retirement allowance under "plan
B" may
elect a
new plan of payment under division (B)(1), (3)(b),
or (3)(c) of
this section based on the actuarial equivalent of the
retirant's single
lifetime benefit as determined by the board.
(2)(b) A retirant who is receiving a benefit retirement allowance 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 "plan F" 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 (2) If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The
plan elected under this division shall
become effective the first day of the month
following on the date of
receipt by
the board of an application on a form
approved by the
board, but any change in the amount of the retirement allowance shall commence on the first day of the month following the effective date of the plan. (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. 742.3711. (A) On application for retirement as
provided in section 742.37 of the Revised Code, a member of the
fund may elect to receive a retirement allowance payable
throughout the member's life, or may elect, on the
application for
retirement, to receive the actuarial
equivalent of the member's
retirement
allowance in a lesser amount payable for life and
continuing
after death to a surviving designated beneficiary under
one
of the following optional plans, provided the amount payable
to
the beneficiary shall not exceed the amount payable to the
retiring member of the fund, and is certified by the actuary
engaged by the board of trustees of the Ohio police and fire
pension fund to be the actuarial equivalent of the member's
retirement allowance and is approved by the board. (1) Option 1. The member's lesser retirement allowance
shall
be paid for life to the sole beneficiary designated at the
time of the member's retirement. (2) Option 2. One-half or some other portion of the
member's
lesser retirement allowance shall be paid for life to the
sole
beneficiary designated at the time of the member's
retirement. (3) Option 3. Upon the member's death before the
expiration
of a
certain period from the retirement date and elected by the
member and
approved by the retirement board, the member's lesser
retirement allowance shall be continued for the remainder of
that
period to the
beneficiary the member has nominated by written
designation
and filed
with the retirement board. Should the nominated beneficiary designated in writing
become
deceased 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. (4) Option 4. The member's lesser retirement allowance or a portion of the lesser retirement allowance shall be paid for life to two, three, or four surviving beneficiaries designated at the time of the member's retirement, in such portions as specified at retirement. If the member elects this plan as required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and compliance with the court order requires the allocation of a portion less than ten per cent to any beneficiary, the member shall allocate a portion less than ten per cent to that beneficiary in accordance with that order. In all other circumstances, no portion allocated under this plan of payment shall be less than ten per cent. The total of the portions allocated shall not exceed one hundred per cent of the member's lesser allowance. (B)(1)
The death of a
spouse
nominated as beneficiary or the death of any other
nominated
beneficiary following
a member's retirement
or election
under section 742.44 of the Revised Code
to participate in the
deferred retirement option plan shall cancel
the portion of the
optional plan of
payment providing continuing lifetime
benefits
to the deceased nominated
beneficiary. The member of
the fund
shall receive the actuarial equivalent of the member's
single lifetime benefit, as
determined by the
board, based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. The change shall
be effective the month following
receipt by the board
of notice of
the death. (2) On divorce, annulment, or marriage dissolution, a
member
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 member'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 portion of the plan providing continuing lifetime benefits to that spouse. The member shall receive the actuarial equivalent of the member's single
lifetime benefit
as determined by the board based on the number of remaining beneficiaries, with no change in amount payable to any remaining beneficiary. The election
shall be made
on a form provided by the board and shall be
effective the month
following its receipt by the board. (C)(1) Following marriage or remarriage, both of the following apply: (1)(a) A member of the fund
receiving a pension retirement allowance under section 742.37 or 742.39 of the Revised
Code may elect not later than one year after the date of marriage
or
remarriage a new optional plan of payment based on the
actuarial
equivalent of the member's single lifetime benefit as
determined
by the
board.
(2)(b) If a member is receiving a benefit retirement allowance pursuant to a plan of payment providing for payment to a former spouse pursuant to a court order described in division (D)(1)(c) of this section and the board has received a copy of the order described in that division, the member may elect a new plan of payment under "option 4" 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 (2) A plan elected under this division and the member's lesser
retirement
allowance shall
become effective on the date the
election is made of receipt by the board of an application
on a form approved by the board.
(D)(1) Unless one of the following occurs, an application
for
retirement 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 retirement
allowance 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 retirement allowance 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
retirement
allowance 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 retirement
allowance payable
during the life of the retirant;
(c) 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 the retirant's retirement under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property. (d) If a retirant is subject to division (D)(1)(c) of this section and the board has received a copy of the order described in that division, the board shall accept the retirant's election of a plan of payment under this section only if the retirant complies with both of the following: (i) The retirant elects a plan of payment that is in accordance with the order described in division (D)(1)(c) of this section. (ii) If the retirant is married, the retirant elects "option 4" and designates the retirant's current spouse as a beneficiary under that plan unless that spouse consents in writing to not being designated a beneficiary under any plan of payment or the board waives the requirement that the current spouse consent. (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 issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property that provides for payment in a specified amount, the member's
retirement
allowance will be paid under
"option 2" 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 an employee of the board or a
notary public. (3) If the retirant does not select an optional plan as
described in division (D)(1)(a) of this section and the board does
not receive the written statement provided for in division
(D)(1)(b)
of this section, it shall determine and pay the
retirement
allowance in accordance with division (A)(2) of this
section,
except that the board may provide by rule for waiver by
the board
of the statement and payment of the allowance other than
in
accordance with division (A)(2) of this section if the retirant
is unable to obtain the statement due to absence or incapacity of
the spouse or other cause specified by the board. (E) A member of the fund who has elected an optional plan
under this section or section 742.3715 of the Revised Code may,
with the consent of the designated beneficiary, cancel the
optional plan and receive the retirement allowance payable
throughout life the member would have received had
the member not
elected the
optional plan, if the member makes a request to cancel
the
optional plan
not later than one year after the later of
September 9, 1988, or
the date on which the member first receives
a payment under this
section or section 742.3715 of the Revised
Code. Cancellation of
the optional plan shall be effective the
month after acceptance
of the request by the trustees of the fund.
No payment or
adjustment shall be made in the retirement allowance
payable
throughout the member's life to compensate for the lesser
allowance the member received under the optional plan. The request to cancel the optional plan shall be made on a
form provided by the fund and shall be valid only if the
completed
form includes a signed statement of the designated
beneficiary's
understanding of and consent to the cancellation. The signature
shall be verified by the trustees of the fund prior
to their
acceptance of the cancellation. (F) Any option elected and payments made under this
section
shall be in addition to any benefit payable under
divisions (D),
(E), and (F) of section 742.37 of the Revised
Code. (G) A
person is eligible to receive a benefit
increase under
this
division if the person is receiving a retirement allowance or
benefit
under an optional plan elected under this section or
section
742.3715 of the Revised Code based on an award made prior
to July
24, 1986. A person is not eligible to receive an
increase
under this
division if the person is
receiving a
pension or
benefit in accordance with rules in force on April 1,
1947, that
govern the granting of pensions and benefits and that
provide an
increase in the original pension or benefit from time
to time
pursuant to changes in the salaries of active members. The
board shall
annually increase all benefits
payable
under
this section or section 742.3715 of the Revised
Code to
eligible
persons by the actuarial equivalent of
three hundred sixty
dollars, except that
no 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 eligible
persons on
July
1, 1988. The increase is
payable for
the ensuing
twelve-month
period or until the next increase is
granted under
this section,
whichever is later. The date of the first increase payable under
this
section
shall be the anniversary date for future increases. If payment of a portion of a benefit is made to an alternate payee under section 742.462 of the Revised Code, increases under this division 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. If payment of a portion of a retirement allowance is made to one or more beneficiaries under "option 4" under division (A)(4) of section 742.3711 of the Revised Code, each increase under this division granted while the plan of payment is in effect shall be divided among the designated beneficiaries in accordance with the portion each beneficiary has been allocated.
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. The retirant's lesser benefit or a portion of the retirant's lesser benefit
shall be paid for life to two, three, or four surviving beneficiaries named at retirement. The portion of the allowance that continues after the member's death shall be allocated among the beneficiaries at the time of the member's retirement. If the retirant elects this plan as required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and compliance with the court order requires the allocation of a portion less than ten per cent to any person, the retirant shall allocate a portion less than ten per cent to that beneficiary in accordance with that order. In all other circumstances, no portion allocated under this plan of payment shall be less than ten per cent. The total of the portions allocated shall not exceed one hundred per cent of the retirant's lesser allowance. (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. (6) Option 6. A plan of payment established by the state
teachers retirement board combining any of the features of
options
1, 2, and 5. (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 (6) of this section. In the event of the death of a beneficiary or
termination of a marital relationship between the retirant and a beneficiary, the retirant may elect to cancel the portion of the plan of payment providing continuing lifetime benefits to that beneficiary. The retirant shall receive the actuarial
equivalent of the remainder of the retirant's single lifetime
benefit based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. 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)(1) Following marriage or remarriage, both of the following apply: (1)(a) 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.
(2)(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 (H)(1)(b) of this section may elect a new plan of payment under "option 4" 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 (2) If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The plan elected under this division
shall
become effective on the first date of the month following receipt by the board of
an
application
on a form approved by the board, but any change in the amount of the benefit shall commence on the first day of the month following the effective date of the plan. (H)(1) Except as otherwise provided in this division and division (H)(2) of this section, 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) If a retirant is subject to division (H)(1)(b) of this section and the board has received a copy of the order described in that division, the board shall accept the retirant's election of a plan of payment under this section only if the retirant complies with both of the following: (i) The retirant elects a plan of payment that is in accordance with the order described in division (H)(1)(b) of this section. (ii) If the retirant is married, the retirant elects "option 4" and designates the retirant's current spouse as a beneficiary under that plan unless that spouse consents in writing to not being designated a beneficiary under any plan of payment or the board waives the requirement that the current spouse consent. (3) 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 issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of 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. (4) 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)(c) of this section, 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. 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)(a) Except as provided in divisions (B)(1)(b) and (c) 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 receive 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 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. (c) If a member is subject to division (B)(1)(b)(ii) of this section and the board has received a copy of the order described in that division, the board shall accept the member's election of a plan of payment under this section only if the member complies with both of the following: (i) The member elects a plan of payment that is in accordance with the order described in division (B)(1)(b)(ii) of this section. (ii) If the member is married, the member elects "plan F" and designates the member's current spouse as a beneficiary under that plan unless that spouse consents in writing to not being designated a beneficiary under any plan of payment or the board waives the requirement that the current spouse consent. (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 issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of 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)(3) and (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. (3)(a) 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)(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 to the member for life and some portion of the lesser amount continuing after death to two, three, or four
surviving beneficiaries designated at the time of the member's
retirement. The portion of the lesser amount that continues after the member's death shall be allocated among the beneficiaries at the time of the member's retirement. If the member elects this plan as required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and compliance with the court order requires the allocation of a portion less than ten per cent to any person, the member shall allocate a portion less than ten per cent to that beneficiary in accordance with that order. In all other circumstances, no portion allocated under this plan of payment shall be less than ten per cent. The total of the portions allocated shall not exceed one hundred per cent of the member's lesser allowance. (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 (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 (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. (5) An election under division (B)(3) or (4) of this section
shall be made at the time the member makes application for
retirement. (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
the portion of the plan of payment providing continuing lifetime benefits to the deceased
spouse or deceased designated beneficiary. The retirant shall receive
the actuarial equivalent of the retirant's single lifetime retirement allowance
as
determined
by the board based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. (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 retirant's
surviving spouse may
elect to cancel the portion of the plan providing continuing lifetime benefits to that spouse. The retirant shall receive the actuarial equivalent of the retirant's single
lifetime
retirement allowance as determined by the retirement
board based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. 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)(a) Following marriage or remarriage, both of the following apply: (a)(i) A retirant who is
receiving a benefit pursuant to "plan B" may elect a new plan of
payment under division (B)(1), (3)(b), or (3)(c) of this section
based on the actuarial equivalent of the retirant's single
lifetime
retirement allowance as determined by the board.
(b)(ii) 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 (b) If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage.
The plan elected under division (E)(3) of this section shall
become effective on the first day date of the month following receipt by
the board of an application on a form approved by the board, but any change in the amount of the retirement allowance shall commence on the first day of the month following the effective date of the plan.
Sec. 5505.162. (A) On application for retirement as
provided in section 5505.16 of the Revised Code, a member of the
state highway patrol retirement system may elect, on a form
provided by the state highway patrol retirement board, to receive
the pension that the member is eligible to receive on retirement
under that section in one of the following forms: (1) A single lifetime pension; (2) The
actuarial equivalent of
the single lifetime
pension
that the member may elect under division (A)(1) of this
section in a lesser annual amount
payable for
the member's
life and continuing after
the member's death to a
surviving
designated beneficiary under one of the following
optional plans,
provided the annual amount payable to the
designated beneficiary
shall not exceed the annual amount payable
to such retiring
member, the amount is certified by the actuary
employed by the
system to be the actuarial equivalent of
the
member's pension,
and the amount is approved by the board: (a) Option 1.
The member's lesser pension shall be
paid
for life to
the member's sole beneficiary designated at
the
time of retirement. (b) Option 2. One-half or some other portion of
the
member's lesser pension shall be paid for life to
the
member's
sole beneficiary designated at the time of
retirement. (c) Option 3. Upon
death before the expiration of a
certain period from
the member's retirement date as elected
by
the member and approved by the board,
the
member's lesser
pension shall be continued for
the remainder of such period to the
beneficiaries, and in such
order, as designated by
the member
in writing and filed with
the board. No monthly payments shall be
paid to joint beneficiaries, but
they may jointly receive the
present value of any remaining
payments in a lump sum settlement.
If all designated
beneficiaries die before the expiration of such
period, the
present value of all the payments yet remaining in the
period
shall be paid to the estate of the beneficiary last
receiving
such payments.
(d) Option 4. The member's lesser pension or portion of the lesser pension shall be paid for life to two, three, or four surviving beneficiaries designated at the time of the member's retirement, in such portions as specified at retirement. If the member elects this plan as required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and compliance with the court order requires the allocation of a portion less than ten per cent to any person, the member shall allocate a portion less than ten per cent to that person in accordance with that order. In all other circumstances, no portion allocated under this plan of payment shall be less than ten per cent. The total of the portions allocated shall not exceed one hundred per cent of the member's lesser pension. (3) If the member has attained age fifty-one with at least
twenty-five years' total service or fifty-two with at least twenty
years' total service, a pension consisting of both a partial
benefit lump sum in an amount the member designates that
constitutes a
portion of the single lifetime pension the member
may elect
under division (A)(1) of this section and the actuarial
equivalent
of the remainder of the single lifetime pension payable
for the
member's life, provided an actuary employed by the system
certifies the actuarial equivalent and the board approves the
partial benefit lump
sum payment and the amount to be paid as the
actuarial equivalent. The amount designated by a member shall be not less than six
times the monthly amount that would be payable to the member as a
single lifetime pension under division (A)(1) of this section and
not more than sixty times that amount. A member who has attained the age of fifty-one with
twenty-five years of service who elects a partial benefit lump sum
may designate an amount that does not exceed an amount equal to
one month's pension for each month of service beyond twenty-five
years. A member who has attained the age of fifty-two with twenty
years of service who elects a partial benefit lump sum may
designate an amount that does not exceed an amount equal to one
month's pension for each month of service beyond twenty years. (4) If a plan of payment providing for payment in a specified portion of the pension continuing after the member's death to a former spouse is required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property prior to the effective date of the member's retirement and the board has received a copy of the order, the board shall accept the member's election of a plan of payment under this section only if the member elects a plan of payment that is in accordance with the order. (B)(1) The death of a spouse designated as beneficiary or
the death of any other designated beneficiary following
retirement
shall cancel the portion of the optional plan of payment
selected under division
(A)(2) of this section providing
continuing lifetime benefits to
the deceased designated beneficiary. The member shall receive the actuarial
equivalent of
the member's single
lifetime
pension, as
determined by the board based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. The change shall be effective the month
following
receipt by the board of notice of the death. (2) On divorce, annulment, or marriage dissolution, a
member
receiving a pension under a plan that provides for
continuation of
all or part of the pension after
death for
the lifetime of
the member'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 portion of the plan providing continuing lifetime benefits to that spouse. The member shall
receive the actuarial equivalent of
the member's
single lifetime
pension
as determined by the board based on the number of remaining beneficiaries, with no change in amount payable to any remaining beneficiary. The election shall be made
on a form
provided by the board and shall be effective the month
following
its receipt by the board. (C)(1) Following marriage or remarriage, both of the following apply: (1)(a) A member may elect a
new optional plan of payment
under division (A)(2) of this section
based on the actuarial equivalent of
the member's single
lifetime pension as determined by the
board.
(2)(b) A member who is receiving a pension pursuant to a plan of payment providing for payment to a former spouse pursuant to a court order described in division (A)(4) of this section may elect a new plan of payment under "option 4" based on the actuarial equivalent of the retirant's single lifetime pension as determined by the board if the new plan of payment elected does not reduce the payment to the former spouse.
The (2) If the marriage or remarriage occurs on or after the effective date of this amendment, the election must be made not later than one year after the date of the marriage or remarriage. The plan elected under this section
shall
become effective on the first day date of the month following
receipt by
the board of an application on a form approved by the
board, but any change in the amount of the pension shall commence on the first day of the month following the effective date of the plan. (D) A member who has elected an optional plan under
division
(A)(2) of this
section may, with the written consent of the
designated
beneficiary, cancel the optional plan and receive the
single lifetime pension
that the
member
would have received had
the member elected the single lifetime pension under division
(A)(1) of this section, if
the member makes a request to
cancel
the
optional plan not later than one year after the date on which
the
member first receives a payment under the plan. Cancellation
of
the optional plan shall be effective the month after acceptance
of the request by the board. No payment or adjustment shall be
made in the
single lifetime pension
to
compensate for the lesser pension
the member
received under
the optional plan. The request to cancel the optional plan shall be made on a
form provided by the board and shall be valid only if the
completed form includes a signed statement of the designated
beneficiary's understanding of and consent to the cancellation.
The designated beneficiary's signature shall be verified by the
board prior to its acceptance of the cancellation. (E) Any option elected and payments made under
division
(A)(2) of this
section shall be in addition to any pension payable
to the
member's surviving spouse, children, or parents under
section
5505.17 of the Revised Code.
SECTION 4. That the existing versions of sections 145.46, 742.3711, 3307.60, 3309.46, and 5505.162 of the Revised Code that are scheduled to take effect on October 27, 2006, are hereby repealed.
SECTION 5. Sections 3 and 4 of this act shall take effect October 27, 2006.
SECTION 6. The individual appointed by the Governor pursuant to Section 5 of Sub. S.B. 133 of the 125th General Assembly to serve as the additional retirant member of the Board of the School Employees Retirement System shall hold office through June 30, 2005. With regard to the vacancy left on the School Employees Retirement Board by the employee member whose term would have ended on June 5, 2005, the individual elected by the Board to fill the vacant employee member seat shall hold office through June 30, 2005.
SECTION 7. Sections 1 and 2 of this act shall take effect on the ninety-first day after the effective date of this act.
SECTION 8. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reason for such necessity is that, to provide consistent governance of the School Employees Retirement System, the continuity of the membership of the School Employees Retirement Board must be maintained. Therefore, this act shall go into immediate effect.
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