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S. B. No. 148 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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A BILL
To amend sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code to revise retirement eligibility requirements for members of the School Employees Retirement System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code be amended to read as follows:
Sec. 3309.33. (A) An employer may establish a retirement
incentive plan for its employees who are members of the school
employees retirement system. The plan shall provide for purchase
by the employer of service credit for eligible employees who
choose to participate in the plan and for payment by the employer
of the entire cost of such service credit. A plan established
under this section shall remain in effect until terminated by the
employer, except that, once established, the plan must remain in
effect for at least one year.
An employee who is a member of the school employees
retirement system shall (B) To be eligible to participate in a
retirement incentive plan if he, an employee must meet the following requirements:
(1) If the employee became a member of the retirement system before the effective date of this amendment, the member has attained age
fifty and he years of age;
(2) If the employee became a member of the retirement system on or after the effective date of this amendment, the employee has attained fifty-five years of age;
(3) The
employee
agrees to retire and retires under section 3309.36 of the Revised
Code effective within ninety days after receiving notice from the
school employees retirement system that service credit has been
purchased for him the employee under this section.
(C) Participation in the plan shall be available to all
eligible employees except that the employer may limit the number
of persons for whom it purchases credit in any calendar year to a
specified percentage of its employees who are members of the
school employees retirement system on the first day of January of
that year. The percentage shall not be less than five per cent
of such employees. If participation is limited, employees with a
greater length of service with the employer have the right to
elect to have credit purchased before employees with a lesser
length of service with the employer.
(D) The amount of service credit purchased for any participant
shall be uniformly determined but shall not exceed the lesser of
the following:
(A)(1) Five years of service credit;
(B)(2) An amount of service credit equal to one-fifth of the
total service credited to the participant under Chapter 3309. of
the Revised Code.
For each year of service credit purchased under this
section, the employer shall pay an amount specified by the school
employees retirement board equal to the additional liability
resulting from the purchase of that year of service credit as
determined by an actuary employed by the board. Payments shall
be made in accordance with rules adopted by the board, and the
board shall notify each member when he the member is credited
with service
purchased under this section.
No payment made to the school employees retirement system
under this section shall affect any payment required by section
3309.49 of the Revised Code.
Sec. 3309.34. (A)(1) A member of the school employees retirement system whose membership began before the effective date of this amendment is eligible for service retirement
if he the member has at least five years of total service credit
and has
attained sixty years of age, or if he the member has at least
thirty years
of total service credit at any age. A member whose membership began before the effective date of this amendment is eligible for
commuted service retirement if he the member has at least
twenty-five years
of total service credit and has attained fifty-five years of age.
(2) A member whose membership began on or after the effective date of this amendment is eligible for service retirement if the member meets one of the following requirements:
(a) Has earned at least ten years of total service credit and has attained sixty-two years of age;
(b) Has earned at least twenty-five years of total service credit and has attained sixty years of age;
(c) Has earned at least thirty years of total service credit and has attained fifty-five years of age.
(B) A member may retire by filing an application for retirement
with the school employees retirement board on a form provided by the board.
The board shall not retire the member sooner than the first day of the month
next following the later of:
(A)(1) The last day of employment for which compensation was
paid;
(B)(2) The attainment of minimum age and service credit eligibility for service
or commuted service retirement.
(C) At least once every ten years, the school employees retirement board shall direct its actuary to evaluate the retirement eligibility requirements of this section. In making the evaluation, the actuary shall use, as the actuarial assumptions, regular interest and such mortality and other tables as are adopted by the board.
Sec. 3309.36. (A)(1) A member retiring of the school employees retirement system whose membership began before the effective date of this amendment who retires on service retirement
shall be granted a retirement allowance consisting of the lesser
of the sum of the following amounts or the limit established by
section 415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A. 415, as amended:
(1)(a) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at that time;
(2)(b) A pension of equivalent amount;
(3)(c) An additional pension of forty dollars multiplied by
the
number of years of such prior service credit;
(4)(d) For members who have ten or more years of service
credit
accumulated prior to October 1, 1956, a basic annual
pension equal
to one hundred eighty dollars, except that such
basic annual
pension shall not exceed the sum of the total annual
benefits
provided by divisions (A)(1), (2), and
(3) of this section.
(2) A member whose membership began on or after the effective date of this amendment who retires on service retirement shall be granted a retirement allowance consisting of the lesser of the sum of the following amounts or the limit established by section 415 of the "Internal Revenue Code of 1986":
(a) An annuity having a reserve equal to the amount of the employee's accumulated contributions at that time;
(b) A pension of equivalent amount.
(B)(1) When a member retires on service retirement, the
member's
allowance when computed as an annual single lifetime
allowance as
provided in divisions (A)(1), (2),
(3), and (4)(2) of
this section and
section 3309.38 of the Revised Code, based upon
attained age
sixty-five or thirty years of total service credit,
shall be
not less than
the greater of the amounts determined by
multiplying the
member's total
service credit by the following:
(b) Two and two-tenths per
cent of the member's final
average salary for each of the
first thirty years of service
credit or fraction thereof plus two and one-half
per cent of the
member's final average salary for each subsequent year of
service
credit or fraction thereof.
(2) The For a member whose membership began before the effective date of this amendment, the
annual
single lifetime allowance determined under
division
(B)(1) of this section shall be adjusted by the greater
percentage shown in the
following schedule opposite the member's
attained age or years of
Ohio service credit:
|
Years of |
Per Cent |
Attained |
or |
Ohio Service |
of |
Age |
Credit |
Base Amount |
58 |
25 |
75% |
59 |
26 |
80 |
60 |
27 |
85 |
61 |
|
88 |
|
28 |
90 |
62 |
|
91 |
63 |
|
94 |
|
29 |
95 |
64 |
|
97 |
65 |
30 or more |
100
|
Members shall vest the For a member whose membership began before the effective date of this amendment, the right to a benefit shall vest in accordance with the
following schedule, based on the member's attained age by
September 1, 1976:
|
Per Cent |
Attained |
of |
Age |
Base Amount |
66 |
102 |
67 |
104 |
68 |
106 |
69 |
108 |
70 or more |
110 |
(3) For a member whose membership began on or after the effective date of this amendment, the annual single lifetime allowance determined under division (B)(1) of this section shall be adjusted to be the actuarial equivalent of the member's retirement allowance, as determined by the retirement board's actuary, had the member retired at age sixty-five or with thirty years of service credit, except that the retirement allowance shall not be lesser than the following amounts:
|
Per Cent |
Years of Service |
of |
Credit |
Base Amount |
25 |
75% |
26 |
80 |
27 |
85 |
28 |
90 |
29 |
95 |
(4) The annual single lifetime allowance which a retirant
shall receive under this division shall not exceed the lesser of
one hundred per cent of the member's final average salary
or the
limit
established by section 415 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(C) Retirement allowances determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
(D) At least once every ten years, the school employees retirement board shall direct its actuary to evaluate the actuarial equivalents in division (B)(3) of this section to determine their appropriateness. The board may adjust the actuarial equivalents in accordance with the actuary's recommendations.
Sec. 3309.38. (A) A member retiring on commuted service
retirement on or after September 30, 1963, shall be granted a
retirement allowance consisting of:
(1) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at the time;
(2) A pension of equivalent amount;
(3) An additional pension, if such employee has prior
service credit, the reserve for which, based upon regular
interest and the service tables approved by the board, shall be
the present worth of the reserve required for the payment of the
prior service pension provided by section 3309.36 of the Revised
Code, after either age sixty or thirty-two years of service
credit, whichever can be first attained. The annual prior
service pension shall be determined by the amount of such
commuted reserve divided by the service annuity rate for the
attained annuity age of retirement.
(4) For members who have ten or more years of service
credit accumulated prior to October 1, 1956, a basic annual
pension equal to one hundred eighty dollars, which shall be
commuted in the same manner as provided for the prior service
pension in division (A)(3) of this section, provided such
commuted
basic annual pension shall not exceed the sum of the total annual
benefits provided by divisions (A)(1), (2), and
(3) of this section.
(B) When a member retires on commuted service retirement,
the member's annual single lifetime allowance including the
allowances
provided in divisions (A)(1), (2),
(3), and (4) of this section
shall not be less than the allowances provided under the
provisions of division (B) of section 3309.36 of the
Revised Code
and shall not exceed the limit established by division
(B)(3)(4) of
that section.
(C) Retirement allowances determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Sec. 3309.381. (A) A recipient of a disability allowance
under section 3309.401 of the Revised Code who is subject to
division (C)(3) of that section may make application for service
retirement under this section. Retirement shall be effective on
the first day of the first month following the last day for which
the disability allowance is paid.
(B) The annual allowance payable under this section shall
consist of the sum of the amounts determined under divisions
(B)(1) and (2) of this section:
(1) The greater of the following:
(a) An allowance calculated as provided in section 3309.36
of the Revised Code, excluding any period during which the
applicant received a disability benefit under section 3309.401 of
the Revised Code;
(b) An allowance calculated by multiplying the applicant's
total service credit, including service credit for the last
continuous period during which the applicant received a
disability benefit
under section 3309.401 of the Revised Code, by
two and
two-tenths per cent of the applicant's final average
salary, except
that the allowance
shall not exceed forty-five per
cent of the applicant's final
average salary.
(2) An amount equal to the additional allowance the
recipient would receive under section 3309.374 of the Revised
Code, plus any other additional amount the recipient would
receive under
this chapter, had the recipient retired under
section 3309.36
of the Revised
Code effective on the effective
date of the recipient's most
recent
continuous period of receipt
of a disability benefit under
section 3309.401 of the Revised
Code.
(C) The allowance calculated under division (B) of this
section, exclusive of any amount added under division (B)(2) of
this section based on section 3309.374 of the Revised Code, shall
be the base for all future additional allowances under section
3309.374 of the Revised Code.
The anniversary date for future additional allowances under
section 3309.374 of the Revised Code shall be the effective date
of the recipient's most recent continuous period of receipt of a
disability benefit under section 3309.401 of the Revised Code.
(D) The retirement allowance determined under this section
shall be paid as provided in section 3309.46 of the Revised Code.
Section 2. That existing sections 3309.33, 3309.34, 3309.36, 3309.38, and 3309.381 of the Revised Code are hereby repealed.
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