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S. B. No. 341 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Senators Niehaus, Kearney
A BILL
To amend sections 3309.05, 3309.051, 3309.061,
3309.07, 3309.072, 3309.074, 3309.075, 3309.10,
3309.15, 3309.21, 3309.22, 3309.23, 3309.26,
3309.28, 3309.33, 3309.34, 3309.341, 3309.343,
3309.35, 3309.353, 3309.354, 3309.36, 3309.362,
3309.371, 3309.373, 3309.376, 3309.379, 3309.3710,
3309.3711, 3309.39, 3309.401, 3309.41, 3309.44,
3309.45, 3309.46, 3309.47, 3309.50, 3309.51,
3309.69, and 3309.88; to enact new section
3309.571 and sections 3309.392 and 3309.474; and
to repeal sections 3309.38 and 3309.571 of the
Revised Code to revise the law governing the
School Employees Retirement System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3309.05, 3309.051, 3309.061,
3309.07, 3309.072, 3309.074, 3309.075, 3309.10, 3309.15, 3309.21,
3309.22, 3309.23, 3309.26, 3309.28, 3309.33, 3309.34, 3309.341,
3309.343, 3309.35, 3309.353, 3309.354, 3309.36, 3309.362,
3309.371, 3309.373, 3309.376, 3309.379, 3309.3710, 3309.3711,
3309.39, 3309.401, 3309.41, 3309.44, 3309.45, 3309.46, 3309.47,
3309.50, 3309.51, 3309.69, and 3309.88 be amended and that new
section 3309.571 and sections 3309.392 and 3309.474 be enacted to
read as follows:
Sec. 3309.05. (A) The school employees retirement board shall
consist of the following members:
(A)(1) One member, known as the treasurer of state's
investment designee, who shall be appointed by the treasurer of
state for a term of four years and who shall have the following
qualifications:
(a) The member is a resident of this state.
(b) Within the three years immediately preceding the
appointment, the member has not been employed by the public
employees retirement system, police and fire pension fund, state
teachers retirement system, school employees retirement system, or
state highway patrol retirement system or by any person,
partnership, or corporation that has provided to one of those
retirement systems services of a financial or investment nature,
including the management, analysis, supervision, or investment of
assets.
(c) The member has direct experience in the management,
analysis, supervision, or investment of assets.
(d) The member is not currently employed by the state or a
political subdivision of the state.
(B)(2) Four members, known as employee members, who shall be
members of the school employees retirement system, and who shall
be elected by ballot by the members of the system;
(C)(3) Two members, known as the retirant members, who shall
be former members of the retirement system who reside in this
state and currently receive an age and service retirement benefit,
a disability benefit, or benefits under a plan established under
section 3309.81 of the Revised Code. The retirant members shall be
elected by ballot by former members of the system who are
currently receiving an age and service retirement benefit, a
disability benefit, or benefits under a plan established under
section 3309.81 of the Revised Code.
(D)(1)(4) Two members, known as the investment expert
members, who shall be appointed to four-year terms. One investment
expert member shall be appointed by the governor, and one
investment expert member shall be jointly appointed by the speaker
of the house of representatives and the president of the senate.
Each investment expert member shall have the following
qualifications:
(a) The member is a resident of this state;
(b) Within the three years immediately preceding the
appointment, the member has not been employed by the public
employees state retirement system, police and fire pension fund,
state teachers retirement system, school employees retirement
system, or state highway patrol retirement system or by any
person, partnership, or corporation that has provided to one of
those retirement systems services of a financial or investment
nature, including the management, analysis, supervision, or
investment of assets;
(c) The member has direct experience in the management,
analysis, supervision, or investment of assets.
(2)(B) Any investment expert member appointed to fill a
vacancy occurring prior to the expiration of the term for which
the member's predecessor was appointed holds under this section
shall hold office until the later of the end of such the term. The
for which the member continues in office subsequent to the
expiration date of the member's term until is appointed or the
date the member's successor takes office, or until a period of
sixty days has elapsed, whichever occurs first.
Sec. 3309.051. Each newly elected member of the school
employees retirement board and each individual appointed to fill a
vacancy on the board shall, not later than ninety days after
commencing service as a board member, complete the orientation
program component of the retirement board member education program
established under section 171.50 of the Revised Code.
Each member of the board who has served a year or longer as a
board member shall, not less than twice each year, attend one or
more programs that are part of the continuing education component
of the retirement board member education program established under
section 171.50 of the Revised Code.
Sec. 3309.061. (A) The office of an employee member or
retirant a member of the school employees retirement board who is
convicted of or pleads guilty to a felony, a theft offense as
defined in section 2913.01 of the Revised Code, or a violation of
section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13,
2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code
shall be deemed vacant. A person who has pleaded guilty to or been
convicted of an offense of that nature is ineligible for election
or appointment to the office of employee or retirant member of the
school employees retirement board.
(B) A member of the school employees retirement board who
willfully and flagrantly exercises authority or power not
authorized by law, refuses or willfully neglects to enforce the
law or to perform any official duty imposed by law, or is guilty
of gross neglect of duty, gross immorality, drunkenness,
misfeasance, malfeasance, or nonfeasance is guilty of misconduct
in office. On complaint and hearing in the manner provided for in
this section, the board member shall have judgment of forfeiture
of the office with all its emoluments entered against the board
member, creating in the office a vacancy to be filled as provided
by law.
(C) Proceedings for removal of a board member on any of the
grounds enumerated in division (B) of this section shall be
commenced by filing with the court of common pleas of the county
in which the board member resides a written complaint specifically
setting forth the charge. The complaint shall be accepted if
signed by the governor or signed as follows:
(1) If the complaint is against an employee member of the
board, the complaint must be signed by a number of members of the
retirement system that equals at least the following and must
include signatures of at least twenty employee members residing in
at least five different counties:
(a) If the employee member was most recently elected in
accordance with division (B) of section 3309.07 of the Revised
Code, ten per cent of the number of members of the system who
voted in that election;
(b) If the employee member most recently became a member of
the board pursuant to section 3309.06 of the Revised Code to fill
a vacancy in the board or took office in accordance with section
3309.061 of the Revised Code, ten per cent of the number of
members of the system who voted in the most recent election held
in accordance with division (B) of section 3309.07 of the Revised
Code for that employee member position on the board.
(2) If the complaint is against a retirant member of the
board, the complaint must be signed by a number of system
retirants that equals at least the following and must include
signatures of at least twenty retirant members residing in at
least five different counties:
(a) If the retirant member was most recently elected in
accordance with division (C) of section 3309.07 of the Revised
Code, ten per cent of the number of former members of the system
who voted in that election;
(b) If the retirant member most recently became a member of
the board pursuant to section 3309.06 of the Revised Code to fill
a vacancy in the board or took office in accordance with section
3309.061 of the Revised Code, ten per cent of the number of former
members of the system who voted in the most recent election held
in accordance with division (C) of section 3309.07 of the Revised
Code for that retirant member position on the board.
(D) The clerk of the court of common pleas in which a
complaint against a board member is filed under division (C) of
this section shall do both of the following with respect to the
complaint:
(1) Submit the signatures obtained pursuant to division (C)
of this section to the board for purposes of verifying the
validity of the signatures. The board shall verify the validity of
the signatures and report its findings to the court.
(2) Cause a copy of the complaint to be served on the board
member at least ten days before the hearing on the complaint. The
court shall hold a public hearing not later than thirty days after
the filing of the complaint. The court may subpoena witnesses and
compel their attendance in the same manner as in civil cases.
Process shall be served by the sheriff of the county in which the
witness resides. Witness fees and other fees in connection with
the proceedings shall be the same as in civil cases. The court may
suspend the board member pending the hearing.
If the court finds that one or more of the charges in the
complaint are true, it shall make a finding for removal of the
board member. The court's finding shall include a full, detailed
statement of the reasons for the removal. The finding shall be
filed with the clerk of the court and be made a matter of public
record.
The board member has the right to appeal to the court of
appeals.
(E) No individual who has been removed from the board
pursuant to this section shall be eligible to fill an elective or
appointed position as a member of the board.
Sec. 3309.07. (A) All elections for employee or retirant
members of the school employees retirement board shall be held
under the direction of the board in accordance with rules adopted
under section 3309.075 of the Revised Code.
(B) Any member of the school employees retirement system,
other than a disability benefit recipient, shall be eligible to be
nominated for election as an employee member of the board who has
been nominated by a petition that is signed by at least five
hundred members and certified in accordance with rules adopted
under section 3309.075 of the Revised Code. The petition shall
contain the signatures of not less than twenty members each from
at least ten counties wherein such members are employed. The
petition shall specify the term of office and position. The name
of any member so nominated shall be placed upon the ballot by the
board as a regular candidate. Other names of eligible candidates
may at any election be substituted for the regular candidates by
writing such names upon the ballot. The candidate receiving the
highest number of votes for any term as member of the board shall
be elected for such term on certification of the election results
in accordance with rules adopted under section 3309.075 of the
Revised Code. In any year in which two employee member or two
retirant member positions must be filled, the candidates who
receive the highest and second highest number of votes shall be
elected to the offices on certification of the election results in
accordance with rules adopted under section 3309.075 of the
Revised Code.
(C) Any former member of the school employees retirement
system described in division
(D)(A)(3) of section 3309.05 of the
Revised Code is eligible for election as a retirant member of the
board to represent former members currently receiving an age and
service retirement benefit, a disability benefit, or benefits
under a plan established under section 3309.81 of the Revised
Code, provided that such person has been nominated by a petition
that is certified in accordance with rules adopted under section
3309.075 of the Revised Code and signed by at least one hundred
fifty former members of the system who are currently receiving an
age and service retirement benefit, a disability benefit, or
benefits under a plan established under section 3309.81 of the
Revised Code. The petition shall contain the signatures of at
least ten such recipients from each of at least five counties
wherein recipients of benefits from this system reside. The
petition shall specify the term of office and position. The name
of any person so nominated shall be placed upon the ballot by the
board as a regular candidate. Other names of eligible candidates
may at any election be substituted for the regular candidates by
writing such names upon the ballot. The candidate receiving the
highest number of votes for any term as member of the board shall
be elected for such term on certification of the election results
in accordance with rules adopted under section 3309.075 of the
Revised Code.
No employee member of the board who retires while a member of
the board shall be eligible to become a retirant member of the
board for three years after the date of the member's retirement.
Sec. 3309.072. (A) As used in this section:
(1) "Campaign committee" means a candidate or a combination
of two or more persons authorized by a candidate to receive
contributions and in-kind contributions and make expenditures on
behalf of the candidate.
(2) "Candidate" means an individual who has been nominated
pursuant to section 3309.07 of the Revised Code for election to
the school employees retirement board or who is seeking to be
elected to fill a vacancy on the board pursuant to division (D) of
section 3309.06 of the Revised Code.
(3) "Contribution" means a loan, gift, deposit, forgiveness
of indebtedness, donation, advance, payment, transfer of funds or
transfer of anything of value including a transfer of funds from
an inter vivos or testamentary trust or decedent's estate, and the
payment by any person other than the person to whom the services
are rendered for the personal services of another person, which
contribution is made, received, or used for the purpose of
influencing the results of an election to the school employees
retirement board under section 3309.07 of the Revised Code or the
results of an election to fill a vacancy on the board pursuant to
division (C) of section 3309.06 of the Revised Code.
"Contribution" does not include:
(a) Services provided without compensation by individuals
volunteering a portion or all of their time on behalf of a person;
(b) Ordinary home hospitality;
(c) The personal expenses of a volunteer paid for by that
volunteer campaign worker.
(4) "Election day" means the following, as appropriate to the
situation:
(a) The first Monday in March of a year for which section
3309.06 of the Revised Code specifies that an election for a
member of the school employees retirement board be held;
(b) If, pursuant to section 3309.071 of the Revised Code, no
election is held, the first Monday in March of a year that the
election would have been held if not for section 3309.071 of the
Revised Code.
(5) "Expenditure" means the disbursement or use of a
contribution for the purpose of influencing the results of an
election to the school employees retirement board under section
3309.07 of the Revised Code or the results of an election to fill
a vacancy on the board pursuant to division (D) of section 3309.06
of the Revised Code.
(6) "Independent expenditure" means an expenditure by an
individual, partnership, or other entity advocating the election
or defeat of an identified candidate or candidates, that is not
made with the consent of, in coordination, cooperation, or
consultation with, or at the request or suggestion of any
candidate or candidates or of the campaign committee or agent of
the candidate or candidates. An independent expenditure shall not
be construed as being a contribution. As used in division (A)(6)
of this section:
(a) "Advocating" means any communication containing a message
advocating election or defeat.
(b) "Identified candidate" means that the name of the
candidate appears, a photograph or drawing of the candidate
appears, or the identity of the candidate is otherwise apparent by
unambiguous reference.
(c) "Made in coordination, cooperation, or consultation with,
or at the request or suggestion of, any candidate or the campaign
committee or agent of the candidate" means made pursuant to any
arrangement, coordination, or direction by the candidate, the
candidate's campaign committee, or the candidate's agent prior to
the publication, distribution, display, or broadcast of the
communication. An expenditure is presumed to be so made when it is
any of the following:
(i) Based on information about the candidate's plans,
projects, or needs provided to the person making the expenditure
by the candidate, or by the candidate's campaign committee or
agent, with a view toward having an expenditure made;
(ii) Made by or through any person who is, or has been,
authorized to raise or expend funds, who is, or has been, an
officer of the candidate's campaign committee, or who is, or has
been, receiving any form of compensation or reimbursement from the
candidate or the candidate's campaign committee or agent;
(iii) Made by a political party in support of a candidate,
unless the expenditure is made by a political party to conduct
voter registration or voter education efforts.
(d) "Agent" means any person who has actual oral or written
authority, either express or implied, to make or to authorize the
making of expenditures on behalf of a candidate, or means any
person who has been placed in a position with the candidate's
campaign committee or organization such that it would reasonably
appear that in the ordinary course of campaign-related activities
the person may authorize expenditures.
(7) "In-kind contribution" means anything of value other than
money that is used to influence the results of an election to the
school employees retirement board under section 3309.07 of the
Revised Code or the results of an election to fill a vacancy on
the board pursuant to division (C) of section 3309.06 of the
Revised Code or is transferred to or used in support of or in
opposition to a candidate and that is made with the consent of, in
coordination, cooperation, or consultation with, or at the request
or suggestion of the benefited candidate. The financing of the
dissemination, distribution, or republication, in whole or part,
of any broadcast or of any written, graphic, or other form of
campaign materials prepared by the candidate, the candidate's
campaign committee, or their authorized agents is an in-kind
contribution to the candidate and an expenditure by the candidate.
(8) "Personal expenses" includes ordinary expenses for
accommodations, clothing, food, personal motor vehicle or
airplane, and home telephone.
(B) Except as otherwise provided in division (D) of this
section, each candidate who, or whose campaign committee, receives
contributions or in-kind contributions totaling one thousand
dollars or more or has expenditures totaling one thousand dollars
or more in connection with the candidate's efforts to be elected
to the school employees retirement board under section 3309.07 of
the Revised Code shall file with the secretary of state two
complete, accurate, and itemized statements setting forth in
detail the contributions, in-kind contributions, and expenditures.
The statements shall be filed regardless of whether, pursuant to
section 3309.071 of the Revised Code, no election is held. The
statements shall be made on a form prescribed under section 111.30
of the Revised Code. Every expenditure in excess of twenty-five
dollars shall be vouched for by a receipted bill, stating the
purpose of the expenditures, that shall be filed with the
statement; a canceled check with a notation of the purpose of the
expenditure is a receipted bill for purposes of this division.
The first statement shall be filed not later than four p.m.
on the day that is twelve days before election day. The second
statement shall be filed not sooner than the day that is eight
days after election day and not later than thirty-eight days after
election day. The first statement shall reflect contributions and
in-kind contributions received and expenditures made to the close
of business on the twentieth day before election day. The second
statement shall reflect contributions and in-kind contributions
received and expenditures made during the period beginning on the
nineteenth day before election day and ending on the close of
business on the seventh day after election day.
(C) Each individual, partnership, or other entity who makes
an independent expenditure in connection with the candidate's
efforts to be elected to the school employees retirement board
under section 3309.07 of the Revised Code shall file with the
secretary of state two complete, accurate, and itemized statements
setting forth in detail the independent expenditures. The
statements shall be filed regardless of whether, pursuant to
section 3309.071 of the Revised Code, no election is held. The
statements shall be made on a form prescribed under section 111.30
of the Revised Code.
The first statement shall be filed not later than four p.m.
on the day that is twelve days before election day. The second
statement shall be filed not sooner than the day that is eight
days after election day and not later than thirty-eight days after
election day. The first statement shall reflect independent
expenditures made to the close of business on the twentieth day
before election day. The second statement shall reflect
independent expenditures made during the period beginning on the
nineteenth day before election day and ending on the close of
business on the seventh day after election day.
(D) Each candidate who, or whose campaign committee, receives
a contribution contributions or in-kind contribution contributions
totaling one thousand dollars or more or makes an expenditure has
expenditures totaling one thousand dollars or more in connection
with the candidate's efforts to be elected to fill a vacancy in
the state teachers school employees retirement board pursuant to
division (C) of section 3309.06 of the Revised Code shall file
with the secretary of state a complete, accurate, and itemized
statement setting forth in detail the contributions, in-kind
contributions, and expenditures. The statement shall be made on a
form prescribed under section 111.30 of the Revised Code. Every
expenditure in excess of twenty-five dollars shall be vouched for
by a receipted bill, stating the purpose of the expenditures, that
shall be filed with the statement; a canceled check with a
notation of the purpose of the expenditure is a receipted bill for
purposes of this division.
The statement shall be filed within thirty-eight days after
the day the candidate takes office. The statement shall reflect
contributions and in-kind contributions received and expenditures
made to the close of business on the seventh day after the day the
candidate takes office.
(E) Each individual, partnership, or other entity that makes
an independent expenditure in connection with the candidate's
efforts to be elected to fill a vacancy in the school employees
retirement board under division (C) of section 3309.06 of the
Revised Code shall file with the secretary of state a complete,
accurate, and itemized statement setting forth in detail the
independent expenditures. The statement shall be made on a form
prescribed under section 111.30 of the Revised Code.
The statement shall be filed not later than thirty-eight days
after the day the candidate takes office. The statement shall
reflect independent expenditures made to the close of business on
the seventh day after the day the candidate takes office.
Sec. 3309.074. The secretary of state, or any person acting
on personal knowledge and subject to the penalties of perjury, may
file a complaint with the Ohio elections commission alleging a
violation of section 3309.073 of the Revised Code. The complaint
shall be made on a form prescribed and provided by the commission.
A complaint shall be filed not later than two years after the
occurrence of the act or failure to act that is the subject of the
complaint, except that if the act or failure to act involves
fraud, concealment, or misrepresentation and was not discovered
during that two-year period, a complaint may be filed not later
than one year after discovery of the act or failure to act.
On receipt of a complaint under this section, the commission
shall hold a hearing open to the public to determine whether the
violation alleged in the complaint has occurred. The commission
may administer oaths and issue subpoenas to any person in the
state compelling the attendance of witnesses and the production of
relevant papers, books, accounts, and reports. On the refusal of
any person to obey a subpoena or to be sworn or to answer as a
witness, the commission may apply to the court of common pleas of
Franklin county under section 2705.03 of the Revised Code. The
court shall hold contempt proceedings in accordance with Chapter
2705. of the Revised Code.
The commission shall provide the person accused of the
violation at least seven days prior notice of the time, date, and
place of the hearing. The accused may be represented by an
attorney and shall have an opportunity to present evidence, call
witnesses, and cross-examine witnesses.
At the hearing, the commission shall determine whether the
violation alleged in the complaint has occurred. If the commission
determines that a violation of division (A) of section 3309.073 of
the Revised Code has occurred, the commission shall either impose
a fine under section 3309.99 of the Revised Code or enter a
finding that good cause has been shown not to impose the fine. If
the commission determines that a violation of division (B) of
section 3309.073 of the Revised Code has occurred, the commission
shall impose the fine described in section 3309.99 of the Revised
Code, refer the matter to the appropriate prosecutor, or enter a
finding that good cause has been shown to not impose a fine or
refer the matter to the appropriate prosecutor.
Sec. 3309.075. (A) The school employees retirement board,
after consultation with the secretary of state, shall adopt rules
in accordance with Chapter 119. section 111.15 of the Revised
Code, governing all of the following:
(1) The administration of elections of members of the board
under section 3309.07 of the Revised Code and elections held under
section 3309.06 of the Revised Code to fill vacancies on the
board;
(2) Nominating petitions for the elections;
(3) Certification of the validity of nominating petitions for
the elections;
(4) Certification of the results of the elections.
(B) The board may contract with the secretary of state or an
independent firm to administer the elections, certify the validity
of nominating petitions, and certify the results of the elections.
The secretary of state and the independent firm shall perform
these services in accordance with the rules adopted under division
(A) of this section. Notwithstanding section 3309.22 of the
Revised Code, the board shall provide information necessary for
the secretary of state or the independent firm to certify the
election. If the board contracts with an independent firm to
administer an election, the secretary of state may audit the
election.
Sec. 3309.10. (A) The members No member of the school
employees retirement board shall be subject to disciplinary action
by an employer for absence from the member's regular employment
for service to the board.
Members of the school employees retirement board shall serve
without compensation from the retirement system, but they an
employer shall be reimbursed from the expense fund for any
compensation paid to an employee member of the board or a retirant
member employed by a public employer in accordance with section
3309.341 of the Revised Code for
any loss of compensation they
may suffer through serving on service to the board, provided, that
the regular employee contribution shall be withheld from any such
reimbursements to cover loss of compensation and credited to the
member's savings account, or the board member or former board
member may pay all such amounts direct to the retirement system.
The corresponding employer contribution shall be transferred
annually from the expense fund and applied in the same manner as
the employers' trust fund contribution payment by the district,
from which the member's regular contributions are reported.
(B) The members of the board shall be reimbursed from the
expense fund for all actual necessary expenses incurred while
serving on the board.
(B)(C) The board may secure insurance coverage designed to
indemnify board members and employees for their actions or conduct
in the performance of official duties, and may pay required
premiums for such coverage from the expense fund.
(C)(D) The board shall adopt rules in accordance with section
111.15 of the Revised Code establishing a policy for reimbursement
of travel expenses incurred by board members in the performance of
their official duties. As part of any audit performed under
Chapter 117. of the Revised Code, an inquiry shall be made into
whether board members have complied with these rules.
(D)(E) No board member shall accept payment or reimbursement
for travel expenses, other than for meals and other food and
beverages provided to the member, from any source other than the
expense fund. Except in the case of an emergency, no out-of-state
travel expenses shall be reimbursed unless approved in advance by
a majority of the board at a regular board meeting.
Sec. 3309.15. (A) The members of the school employees
retirement board shall be the trustees of the funds created by
section 3309.60 of the Revised Code. The board shall have full
power to invest the funds. The board and other fiduciaries shall
discharge their duties with respect to the funds solely in the
interest of the participants and beneficiaries; for the exclusive
purpose of providing benefits to participants and their
beneficiaries and defraying reasonable expenses of administering
the school employees retirement system; with care, skill,
prudence, and diligence under the circumstances then prevailing
that a prudent person acting in a like capacity and familiar with
such matters would use in the conduct of an enterprise of a like
character and with like aims; and by diversifying the investments
of the system so as to minimize the risk of large losses, unless
under the circumstances it is clearly prudent not to do so.
The board may establish a partnership, trust, limited
liability company, corporation, including a corporation exempt
from taxation under the Internal Revenue Code, 100 Stat. 2085, 26
U.S.C.A. 1, as amended, or any other legal entity authorized to
transact business in this state.
(B) In exercising its fiduciary responsibility with respect
to the investment of the funds, it shall be the intent of the
board to give consideration to investments that enhance the
general welfare of the state and its citizens where the
investments offer quality, return, and safety comparable to other
investments currently available to the board. In fulfilling this
intent, equal consideration shall also be given to investments
otherwise qualifying under this section that involve minority
owned and controlled firms and firms owned and controlled by
women, either alone or in joint venture with other firms.
The board shall adopt, in regular meeting, policies,
objectives, or criteria for the operation of the investment
program that include asset allocation targets and ranges, risk
factors, asset class benchmarks, time horizons, total return
objectives, and performance evaluation guidelines. In adopting
policies and criteria for the selection of agents with whom the
board may contract for the administration of the funds, the board
shall comply with sections 3309.157 and 3309.159 of the Revised
Code and shall also give equal consideration to minority owned and
controlled firms, firms owned and controlled by women, and
ventures involving minority owned and controlled firms and firms
owned and controlled by women that otherwise meet the policies and
criteria established by the board. Amendments and additions to the
policies and criteria shall be adopted in regular meeting. The
board shall publish its policies, objectives, and criteria under
this provision no less often than annually and shall make copies
available to interested parties.
When reporting on the performance of investments, If the
board contracts with a person, including an agent or investment
manager, for the management or investment of the funds, the board
shall require the person to comply with the global investment
performance presentation standards established by the association
for investment management and research chartered financial analyst
institute, or a successor organization, when reporting on the
performance of investments.
(C) All evidences of title of investments purchased by the
board under this section shall be delivered to the treasurer of
state, who is hereby designated as custodian thereof, or to the
treasurer of state's authorized agent, and the treasurer of state
or the agent shall collect principal, interest, dividends, and
distributions that become due and payable and place the same when
so collected into the custodial funds. Evidences of title of the
investments may be deposited by the treasurer of state for
safekeeping with an authorized agent, selected by the treasurer of
state, who is a qualified trustee under section 135.18 of the
Revised Code. The treasurer of state shall pay for the investments
purchased by the board pending receipt of the evidence of title of
the investments by the treasurer of state or to the treasurer of
state's authorized agent, and on receipt of written or electronic
instructions from the board or the board's designated agent
authorizing the purchase. The board may sell any investments held
by the board, and the treasurer of state or the treasurer of
state's authorized agent shall accept payment from the purchaser
and deliver evidence of title of the investment to the purchaser
on receipt of written or electronic instructions from the board or
the board's designated agent authorizing the sale, and pending
receipt of the moneys for the investments. The amount received
shall be placed into the custodial funds. The board and the
treasurer of state may enter into agreements to establish
procedures for the purchase and sale of investments under this
division and the custody of the investment.
(D) No purchase or sale of any investment shall be made under
this section except as authorized by the school employees
retirement board.
(E) Any statement of financial position distributed by the
board shall include the fair value, as of the statement date, of
all investments held by the board under this section.
Sec. 3309.21. (A) The school employees retirement board
shall have prepared annually by or under the supervision of an
actuary an actuarial valuation of the pension assets, liabilities,
and funding requirements of the school employees retirement system
as established pursuant to this chapter. The actuary shall
complete the valuation in accordance with actuarial standards of
practice promulgated by the actuarial standards board of the
American academy of actuaries and prepare a report of the
valuation. The report shall include all of the following:
(1) A summary of the benefit provisions evaluated;
(2) A summary of the census data and financial information
used in the valuation;
(3) A description of the actuarial assumptions, actuarial
cost method, and asset valuation method used in the valuation,
including a statement of the assumed rate of payroll growth and
assumed rate of growth or decline in the number of members
contributing to the retirement system;
(4) A summary of findings that includes a statement of the
actuarial accrued pension liabilities and unfunded actuarial
accrued pension liabilities;
(5) A schedule showing the effect of any changes in the
benefit provisions, actuarial assumptions, or cost methods since
the last annual actuarial valuation;
(6) A statement of whether contributions to the retirement
system are expected to be sufficient to satisfy the funding
objectives established by the board.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the first day of May
following the year for which the valuation was made.
(B) At such times as the school employees retirement board
determines, and at least once in each quinquennial period, the
board shall have prepared by or under the supervision of an
actuary an actuarial investigation of the mortality, service, and
other experience of the members, retirants, and beneficiaries of
the retirement system, and SERS retirants and other system
retirants as defined in section 3309.341 of the Revised Code to
update the actuarial assumptions used in the actuarial valuation
required by division (A) of this section. The actuary shall
prepare a report of the actuarial investigation. The report shall
be prepared and any recommended changes in actuarial assumptions
shall be made in accordance with the actuarial standards of
practice promulgated by the actuarial standards board of the
American academy of actuaries. The report shall include all of the
following:
(1) A summary of relevant decrement and economic assumption
experience observed over the period of the investigation;
(2) Recommended changes in actuarial assumptions to be used
in subsequent actuarial valuations required by division (A) of
this section;
(3) A measurement of the financial effect of the recommended
changes in actuarial assumptions.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the first day of May
following the last fiscal year of the period the report covers.
(C) The board may at any time request the actuary to make any
studies or actuarial valuations to determine the adequacy of the
rates of contribution as provided by section 3309.49 of the
Revised Code, and those rates may be adjusted by the board, as
recommended by the actuary, effective as of the first of any year
thereafter.
(D) The board shall have prepared by or under the supervision
of an actuary an actuarial analysis of any introduced legislation
expected to have a measurable financial impact on the retirement
system. The actuarial analysis shall be completed in accordance
with the actuarial standards of practice promulgated by the
actuarial standards board of the American academy of actuaries.
The actuary shall prepare a report of the actuarial analysis,
which shall include all of the following:
(1) A summary of the statutory changes that are being
evaluated;
(2) A description of or reference to the actuarial
assumptions and actuarial cost method used in the report;
(3) A description of the participant group or groups included
in the report;
(4) A statement of the financial impact of the legislation,
including the resulting increase, if any, in the employer normal
cost percentage; the increase, if any, in actuarial accrued
liabilities; and the per cent of payroll that would be required to
amortize the increase in actuarial accrued liabilities as a level
per cent of covered payroll for all active members over a period
not to exceed thirty years;
(5) A statement of whether the scheduled contributions to the
system after the proposed change is enacted are expected to be
sufficient to satisfy the funding objectives established by the
board.
Not later than sixty days from the date of introduction of
the legislation, the board shall submit a copy of the actuarial
analysis to the legislative service commission, the standing
committees of the house of representatives and the senate with
primary responsibility for retirement legislation, and the Ohio
retirement study council.
(E) The board shall have prepared annually a report giving a
full accounting of the revenues and costs relating to the
provision of benefits under sections 3309.375 and 3309.69 of the
Revised Code. The report shall be made as of June 30, 1997, and
the thirtieth day of June of each year thereafter. The report
shall include the following:
(1) A description of the statutory authority for the benefits
provided;
(2) A summary of the benefits;
(3) A summary of the eligibility requirements for the
benefits;
(4) A statement of the number of participants eligible for
the benefits;
(5) A description of the accounting, asset valuation, and
funding method used to provide the benefits;
(6) A statement of the net assets available for the provision
of the benefits as of the last day of the fiscal year;
(7) A statement of any changes in the net assets available
for the provision of benefits, including participant and employer
contributions, net investment income, administrative expenses, and
benefits provided to participants, as of the last day of the
fiscal year;
(8) For the last six consecutive fiscal years, a schedule of
the net assets available for the benefits, the annual cost of
benefits, administrative expenses incurred, and annual employer
contributions allocated for the provision of benefits;
(9) A description of any significant changes that affect the
comparability of the report required under this division;
(10) A statement of the amount paid under division
(C)(E) of
section 3309.69 of the Revised Code.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirty-first day of
December following the year for which the report was made.
Sec. 3309.22. (A)(1) As used in this division, "personal
history record" means information maintained in any format by the
board on an individual who is a member, former member,
contributor, former contributor, retirant, or beneficiary that
includes the address,
electronic mail address, telephone number,
social security number, record of contributions, correspondence
with the system, and other information the board determines to be
confidential.
(2) The records of the board shall be open to public
inspection and may be made available in printed or electronic
format, except for the following, which shall be excluded, except
with the written authorization of the individual concerned:
(a) The individual's statement of previous service and other
information as provided for in section 3309.28 of the Revised
Code;
(b) Any information identifying by name and address the
amount of a monthly allowance or benefit paid to the individual;
(c) The individual's personal history record.
(B) All medical reports and recommendations required by the
system are privileged except as follows:
(1) Copies of medical reports or recommendations shall be
made available to the following:
(a) The individual concerned, on written request;
(b) The personal physician, attorney, or authorized agent of
the individual concerned upon on written release received from the
individual or the individual's agent, or when necessary for the
proper administration of the fund, to the;
(c) The board assigned physician.
(2) Documentation required by section 2929.193 of the Revised
Code shall be provided to a court holding a hearing under that
section.
(C) Any person who is a contributor of the system shall be
furnished, on written request, with a statement of the amount to
the credit of the person's account. The board need not answer more
than one such request of a person in any one year.
(D) Notwithstanding the exceptions to public inspection in
division (A)(2) of this section, the board may furnish the
following information:
(1) If a member, former member, contributor, former
contributor, or retirant is subject to an order issued under
section 2907.15 of the Revised Code or an order issued under
division (A) or (B) of section 2929.192 of the Revised Code or is
convicted of or pleads guilty to a violation of section 2921.41 of
the Revised Code, on written request of a prosecutor as defined in
section 2935.01 of the Revised Code, the board shall furnish to
the prosecutor the information requested from the individual's
personal history record.
(2) Pursuant to a court or administrative order issued under
section 3119.80, 3119.81, 3121.02, 3121.03, or 3123.06 of the
Revised Code, the board shall furnish to a court or child support
enforcement agency the information required under that section.
(3) At the written request of any person, the board shall
provide to the person a list of the names and addresses of
members, former members, retirants, contributors, former
contributors, or beneficiaries. The costs of compiling, copying,
and mailing the list shall be paid by such person.
(4) Within fourteen days after receiving from the director of
job and family services a list of the names and social security
numbers of recipients of public assistance pursuant to section
5101.181 of the Revised Code, the board shall inform the auditor
of state of the name, current or most recent employer address, and
social security number of each contributor whose name and social
security number are the same as that of a person whose name or
social security number was submitted by the director. The board
and its employees shall, except for purposes of furnishing the
auditor of state with information required by this section,
preserve the confidentiality of recipients of public assistance in
compliance with section 5101.181 of the Revised Code.
(5) The system shall comply with orders issued under section
3105.87 of the Revised Code.
On the written request of an alternate payee, as defined in
section 3105.80 of the Revised Code, the system shall furnish to
the alternate payee information on the amount and status of any
amounts payable to the alternate payee under an order issued under
section 3105.171 or 3105.65 of the Revised Code.
(6) At the request of any person, the board shall make
available to the person copies of all documents, including
resumes, in the board's possession regarding filling a vacancy of
an employee member or retirant member of the board. The person who
made the request shall pay the cost of compiling, copying, and
mailing the documents. The information described in this division
is a public record.
(7) The system shall provide the notice required by section
3309.673 of the Revised Code to the prosecutor assigned to the
case.
(E) A statement that contains information obtained from the
system's records that is signed by an officer of the retirement
system and to which the system's official seal is affixed, or
copies of the system's records to which the signature and seal are
attached, shall be received as true copies of the system's records
in any court or before any officer of this state.
Sec. 3309.23. (A) Except as provided in division (B) of this
section, the following shall be contributors to the school
employees retirement system:
(1) All employees, as defined in division (B) of section
3309.01 of the Revised Code;
(2) The employees of an existing or newly created employer
unit as defined in division (A) of section 3309.01 of the Revised
Code, supported in whole or in part by the state or any political
subdivision thereof and wholly controlled and managed by the state
or any subdivision thereof. Such employees shall become
contributors on the same terms and conditions as provided by this
chapter, provided the board of trustees or other managing body of
such school, college, or other institution, if such institution is
now in existence or if in existence on such date, shall agree by
formal resolution to accept all the requirements and obligations
imposed by this chapter upon employers. A certified copy of the
resolution shall be filed with the school employees retirement
board. When such resolution has been adopted and a copy of it
filed with the school employees retirement board, it shall not
later be subject to rescission or abrogation. Service in such
schools, colleges, or other institutions shall be then considered
in every way the same as service in the public schools.
(3) All other individuals who become members.
(B) The following individuals may choose to be exempt from
compulsory membership by filing a written application for
exemption with the employer within the first month after being
employed:
(1) A student who is not a member at the time of his
employment and who is employed by the school, college, or
university in which he the student is enrolled and regularly
attending classes;
(2) An emergency employee serving on a temporary basis in
case of fire, snow, earthquake, flood, or other similar emergency;
(3) An individual employed in a program established pursuant
to the "Job Training Partnership Workforce Investment Act," 96 112
Stat. 1322 936 (1982 1998), 29 U.S.C.A. 1501 2801, or any other
federal job training program.
(C) A member may elect to have employment by the school,
college, or university at which he the member is enrolled and
regularly attending classes exempted from contribution to the
retirement system by filing a written application with his the
member's employer within the first month after being so employed.
(D) In all cases of doubt pertaining to contributors on an
individual or group basis or the status of existing or newly
created employer units, the decision shall be made by the
retirement board, and such decision shall be final.
Sec. 3309.26. The membership of any person in the school
employees retirement system shall terminate if the person
withdraws the person's accumulated contributions, retires on a
retirement allowance as provided in sections 3309.36, 3309.38, and
3309.381 of the Revised Code, or dies, unless otherwise provided
in Chapter 3309. of the Revised Code.
A former member with an account in the employees' savings
fund who formerly lost membership shall be reinstated as a member
with all the rights, privileges, and obligations as provided in
Chapter 3309. of the Revised Code.
Except as provided in this section, a member or former member
of the school employees retirement system with at least one and
one-half years of contributing service credit in this system, the
public employees retirement system, the state teachers retirement
system, the Ohio police and fire pension fund, or the state
highway patrol retirement system, subsequent to the withdrawal of
contributions and cancellation of service credit in this system
may restore such service credit by redepositing in the employees'
savings fund the amount withdrawn with interest at a rate to be
determined by the board, compounded annually, from the first of
the month of withdrawal to and including the month of redeposit. A
member may choose to purchase only part of such credit in any one
payment, subject to board rules. The total payment to restore
cancelled service credit, plus any interest credited thereto,
shall be considered as accumulated contributions of the member. If
a former member is eligible to buy the service credit as a member
of the Ohio police and fire pension fund, the state highway patrol
retirement system, or the city of Cincinnati retirement system,
the former member is ineligible to restore that service credit
under this section.
Sec. 3309.28. Each employee Not later than thirty days after
an employee begins employment, the employer shall file with the
school employees retirement system a detailed statement showing
sex, title, compensation, duties, date of birth, of the employee's
personal information and all his prior of the employee's previous
service as an employee or such other service as comes under this
chapter or Chapter 145., 742., 3307., or 5505. of the Revised
Code, and shall furnish such other facts information as the school
employees retirement board requires for the proper operation of
the school employees retirement system. If an employee fails to
file the required record within thirty days after commencing
employment, the secretary shall so advise his employer who shall
thereafter withhold all salary payments to such employee until
such record is filed with the school employees retirement board.
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.
(B) To An employee who is a member of the school employees
retirement system shall be eligible to participate in a retirement
incentive plan, an employee must meet the following requirements:
(1) Either of the following:
(a) If the employee became a member of the retirement system
before the effective date of this amendment, the member has
attained fifty years of age;
(b) If the employee became a member of the retirement system
on or after the effective date of this amendment, established by
the employer if the employee has attained fifty-five fifty-seven
years of age;
(2) The employee
and 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 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:
(1) Five years of service credit;
(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 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 the member
has under this division if either of the following is the case:
(a) On or before August 1, 2017, the member has at least
twenty-five years of total service credit and meets either of the
following requirements:
(i) Has at least five years of total service credit and has
attained sixty years of age, or if the member has;
(ii) 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 the
member has at least twenty-five years of total service credit and
has attained fifty-five years of age.
(b) As of August 1, 2017, the member will have less than
twenty-five years of total service credit but, not later than that
date, pays to the retirement system an amount equal to the
additional liability to the system resulting from the member's
retirement under this division.
(2) A member whose membership began on or after the effective
date of this amendment who, as of August 1, 2017, has less than
twenty-five years of total service credit is eligible for service
retirement under this division 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 fifty-seven 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:
(1) The last day of employment for which compensation was
paid;
(2) The attainment of minimum age and service credit
eligibility for service or commuted service retirement.
(C) At least once every ten years In each five-year period,
the board shall direct its actuary to evaluate the retirement
eligibility requirements of this section.
(D) The board, in consultation with its actuary, shall adopt
rules to implement this section.
Sec. 3309.341. (A) As used in this section and section
3309.344 of the Revised Code:
(1) "SERS retirant" means any person who is receiving a
retirement allowance from the school employees retirement system
under section 3309.36, 3309.38, or 3309.381 or former section
3309.38 of the Revised Code or any benefit paid under a plan
established under section 3309.81 of the Revised Code.
(2) "Other system retirant" means a member or former member
of the public employees retirement system, Ohio police and fire
pension fund, state teachers retirement system, state highway
patrol retirement system, or Cincinnati retirement system who is
receiving age and service or commuted age and service retirement,
or a disability benefit from a system of which the retirant is a
member or former member.
(B)(1) Subject to this section and section 3309.345 of the
Revised Code, an SERS retirant or other system retirant may be
employed by a public employer. If so employed, the SERS retirant
or other system retirant shall contribute to the school employees
retirement system in accordance with section 3309.47 of the
Revised Code, and the employer shall make contributions in
accordance with section 3309.49 of the Revised Code.
(2) An employer that employs an SERS retirant or other system
retirant shall notify the retirement board of the employment not
later than the end of the month in which the employment commences.
On receipt of notice from an employer that a person who is an
other system retirant has been employed, the school employees
retirement system shall notify the state retirement system of
which the other system retirant was a member of such employment.
(C) An SERS retirant or other system retirant who has
received a retirement allowance or disability benefit for less
than two months when employment subject to this section commences
shall forfeit the retirement allowance or disability benefit for
any month the SERS retirant or other system retirant is employed
prior to the expiration of the two-month period. Service and
contributions for that period shall not be included in the
calculation of any benefits payable to the SERS retirant or other
system retirant, and those contributions shall be refunded on
death or termination of the employment. Contributions made on
compensation earned after the expiration of such period shall be
used in the calculation of the benefit or payment due under
section 3309.344 of the Revised Code.
(D) On receipt of notice from the Ohio police and fire
pension fund, public employees retirement system, or state
teachers retirement system of the re-employment of an SERS
retirant, the school employees retirement system shall not pay, or
if paid shall recover, the amount to be forfeited by the SERS
retirant in accordance with section 145.38, 742.26, or 3307.35 of
the Revised Code.
(E) An SERS retirant or other system retirant subject to this
section is not a member of the school employees retirement system;
does not have any of the rights, privileges, or obligations of
membership, except as specified in this section; and is not
eligible to receive health, medical, hospital, or surgical
benefits under section 3309.69 of the Revised Code for employment
subject to this section.
(F) If the disability benefit of an other system retirant
employed under this section is terminated, the retirant shall
become a member of the school employees retirement system,
effective on the first day of the month next following the
termination, with all the rights, privileges, and obligations of
membership. If the retirant, after the termination of the
disability benefit, earns two years of service credit under this
retirement system or under the public employees retirement system,
Ohio police and fire pension fund, state teachers retirement
system, or state highway patrol retirement system, the retirant's
prior contributions as an other system retirant under this section
shall be included in the retirant's total service credit as a
school employees retirement system member, and the retirant shall
forfeit all rights and benefits of this section. Not more than one
year of credit may be given for any period of twelve months.
(G) This section does not affect the receipt of benefits by
or eligibility for benefits of any person who on August 29, 1976,
was receiving a disability benefit or service retirement pension
or allowance from a state or municipal retirement system in Ohio
and was a member of any other state or municipal retirement system
of this state.
(H) The school employees retirement board may adopt rules to
carry out this section.
Sec. 3309.343. (A) As used in this section:
(1) In addition to the meaning in section 3309.01 of the
Revised Code, when appropriate "compensation" has the same meaning
as in section 3307.01 of the Revised Code.
(2) "Earnable salary" has the same meaning as in section
145.01 of the Revised Code.
(3) "SERS position" means a position for which a member of
the school employees retirement system is making contributions to
the system.
(4) "Other state retirement system" means the public
employees retirement system or the state teachers retirement
system.
(5) "State retirement system" means the public employees
retirement system, state teachers retirement system, or the school
employees retirement system.
(B)(1) A member of the school employees retirement system who
holds two or more SERS positions may retire under section 3309.35,
3309.36, 3309.38, or 3309.46 of the Revised Code from the position
for which the annual compensation at the time of retirement is
highest and continue to contribute to the retirement system for
the other SERS position or positions.
(2) A member of the school employees retirement system who
also holds one or more other positions covered by the other state
retirement systems may retire under section 3309.35, 3309.36,
3309.38, or 3309.46 of the Revised Code from the SERS position and
continue contributing to the other state retirement systems if the
annual compensation for the SERS position at the time of
retirement is greater than annual compensation or earnable salary
for the position, or any of the positions, covered by the other
state retirement systems.
(3) A member of the school employees retirement system who
holds two or more SERS positions and at least one other position
covered by one of the other state retirement systems may retire
under section 3309.35, 3309.36, 3309.38, or 3309.46 of the Revised
Code from one of the SERS positions and continue contributing to
the school employees retirement system and the other state
retirement system if the annual compensation for the SERS position
from which the member is retiring is, at the time of retirement,
greater than the annual compensation or earnable salary for any of
the positions for which the member is continuing to make
contributions.
(4) A member of the school employees retirement system who
has retired as provided in division (B)(2) or (3) of section
145.383 or division (B)(2) or (3) of section 3307.351 of the
Revised Code may continue to contribute to the school employees
retirement system for an SERS position if the member held the
position at the time of retirement from the other state retirement
system.
(5) A member who contributes to the school employees
retirement system in accordance with division (B)(1), (3), or (4)
of this section shall contribute in accordance with section
3309.47 of the Revised Code. The member's employer shall
contribute as provided in section 3309.49 of the Revised Code.
Neither the member nor the member's survivors are eligible for any
benefits based on those contributions other than those provided
under section 145.384, 3307.352, or 3309.344 of the Revised Code.
(C)(1) In determining retirement eligibility and the annual
retirement allowance of a member who retires as provided in
division (B)(1), (2), or (3) of this section, the following shall
be used to the date of retirement:
(a) The member's earnable salary and compensation for all
positions covered by a state retirement system;
(b) Total service credit in any state retirement system,
except that the credit shall not exceed one year of credit for any
period of twelve months;
(c) The member's accumulated contributions.
(2) A member who retires as provided in division (B)(1),
(2), or (3) of this section is a retirant for all purposes of this
chapter, except that the member is not subject to section 3309.341
of the Revised Code for a position or positions for which
contributions continue under those divisions or division (B)(4) of
this section.
(D) A retired member receiving a benefit under section
3309.344 of the Revised Code based on employment subject to this
section is not a member of the school employees retirement system
and does not have any rights, privileges, or obligations of
membership. The retired member is an SERS retirant for purposes of
section 3309.341 of the Revised Code.
(E) The school employees retirement board may adopt rules to
carry out this section.
Sec. 3309.35. (A) As used in this section:
(1) "State retirement system" means the public employees
retirement system, state teachers retirement system, or school
employees retirement system.
(2) "Total service credit" means all service credit earned in
all state retirement systems, except credit for service subject to
section 3309.341 of the Revised Code. Total service credit shall
not exceed one year of credit for any twelve-month period.
(3) In addition to the meaning given in division (O) of
section 3309.01 of the Revised Code, "disability benefit" means
"disability benefit" as defined in sections 145.01 and 3307.01 of
the Revised Code.
(B) To coordinate and integrate membership in the state
retirement systems, at the option of a member, total contributions
and service credit in all state retirement systems, including
amounts paid to restore service credit under sections 145.311,
3307.711, and 3309.261 of the Revised Code, shall be used in
determining the eligibility and total retirement or disability
benefit payable. When total contributions and service credit are
so combined, the following provisions apply:
(1) Service and commuted service retirement or a disability
benefit is effective no sooner than the first day of the month
next following the last day of employment for which compensation
was paid. If the application is filed after that date, the board
may retire the member on the first day of the month next following
the last day of employment for which compensation was paid.
(2) In determining eligibility Eligibility for a disability
benefit, the medical examiner's report to shall be determined by
the retirement board of any the state retirement system, showing
that will calculate and pay the member's disability incapacitates
the member for the performance of duty, may benefit, as provided
in division (B)(3) of this section. The state retirement system
calculating and paying the disability benefit shall certify the
determination to the board of each other state retirement system
in which the member has service credit and shall be accepted by
the state retirement boards that board as sufficient for granting
a disability benefit.
(3) The board of the state retirement system in which the
member had the greatest service credit, without adjustment, shall
determine calculate and pay the total retirement or disability
benefit. Where the member's credit is equal in two or more state
retirement systems, the system having the largest total
contributions of the member shall
determine calculate and pay the
total benefit.
(4) In determining the total credit to be used in calculating
a retirement allowance or disability benefit, credit shall not be
reduced below that certified by the system or systems transferring
credit, except that such total combined service credit shall not
exceed one year of credit for any one "year" as defined in the law
of the system making the calculation.
(5) The state retirement system determining calculating and
paying a retirement or disability benefit shall receive from the
other system or systems the member's refundable account at
retirement or the effective date of a disability benefit plus an
amount from the employers' trust fund equal to the member's
refundable account less the interest credited under section
145.471, 145.472, or 3307.563 of the Revised Code. If applicable,
the retirement system
determining calculating and paying the
benefit shall receive from the public employees retirement system
a portion of the amount paid on behalf of the member by an
employer under section 145.483 of the Revised Code. The portion
shall equal the product obtained by multiplying by two the amount
the member would have contributed during the period the employer
failed to deduct contributions, as described in section 145.483 of
the Revised Code.
(a) The annuity rates and mortality tables of the state
retirement system making the calculation and paying the benefit
shall be exclusively applicable.
(b) Deposits made for the purchase of an additional annuity,
and including guaranteed interest, upon the request of the member,
shall be transferred to the state retirement system paying the
retirement or disability benefit. The return upon such deposits
shall be that offered by the state retirement system making the
calculation and paying the retirement or disability benefit.
(C) A former member receiving a retirement or disability
benefit under this section, who accepts employment amenable to
coverage in any state retirement system that participated in the
member's combined benefit, shall be subject to the applicable
provisions of law governing such re-employment. If a former member
should be paid any amount in a retirement allowance, to which the
former member is not entitled under the applicable provisions of
law governing such re-employment, such amount shall be recovered
by the state retirement system paying such allowance by utilizing
any recovery procedure available under the code provisions of the
state retirement system covering such re-employment.
(D) An SERS retirant or other system retirant, as defined in
section 3309.341 of the Revised Code, is not eligible to receive
any benefit under this section for service subject to section
3309.341 of the Revised Code.
Sec. 3309.353. As used in this section, "benefit" means any
allowance, pension, or other benefit to which an individual is
entitled and that
he the individual receives pursuant to section
3309.36, 3309.38, 3309.40, 3309.45, or 3309.46 or former section
3309.38 of the Revised Code.
The annual amount of each benefit for which eligibility was
established prior to February 1, 1983, shall, after the adjustment
required by section 3309.374 of the Revised Code, be increased by
five per cent.
Sec. 3309.354. As used in this section, "benefit" means any
allowance, pension, or other benefit to which an individual is
entitled and that he receives pursuant to section 3309.35,
3309.36, 3309.38, 3309.40, 3309.45, or 3309.46 or former section
3309.38 of the Revised Code.
Effective the first day of the month following
the effective
date of this section
September 9, 1988, the annual amount of
benefits shall be increased as follows:
(A) The annual amount of each benefit for which eligibility
was established prior to February 1, 1983, shall, after all
adjustments required by this chapter, be increased by two per
cent;
(B) The annual amount of each benefit for which eligibility
was established on or after February 1, 1983, but prior to the
effective date of this section
September 9, 1988, shall, after all
adjustments required by this chapter, be increased by five per
cent.
Sec. 3309.36. (A)(1) A member 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.
415, as amended:
(a)(1) An annuity having a reserve equal to the amount of the
employee's accumulated contributions at that time;
(b)(2) A pension of equivalent amount;
(c) An additional pension of forty dollars multiplied by the
number of years of such prior service credit;
(d)(3) 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), and (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)(a) When a member retires on service retirement under
division (A)(1) of section 3309.34 of the Revised Code, the
member's allowance when computed as an annual single lifetime
allowance as provided in divisions division (A)(1) and (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:
(a)(i) Eighty-six dollars;
(b)(ii) 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.
(b) When a member retires on service retirement under
division (A)(2) of section 3309.34 of the Revised Code, the
member's allowance when computed as an annual single lifetime
allowance as provided in division (A) of this section, based on
attained age sixty-seven 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:
(ii) 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) For a member whose membership began before the effective
date of this amendment who retires under division (A)(1) of
section 3309.34 of the Revised Code, the annual single lifetime
allowance determined under division (B)(1)(a) 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
|
|
|
For a member whose membership began before the effective date of
this amendment who retires under division (A)(1) of section
3309.34 of the Revised Code, 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 who retires under division (A)(2)
of section 3309.34 of the Revised Code, the annual single lifetime
allowance determined under division (B)(1)(b) 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 sixty-seven or
with thirty years of service credit, except that the retirement
allowance shall not be less than the following:
|
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 five 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. 3309.362. As used in this section, "benefit" means any
allowance, pension, or other benefit to which an individual is
entitled and that he the individual receives under section
3309.35, 3309.36,
3309.38, 3309.40, 3309.45, or 3309.46 or former
section 3309.38 of the Revised Code.
(A) The annual amount of each benefit for which eligibility
was established prior to January 1, 1977, shall, after the
adjustment required by section 3309.374 of the Revised Code, be
increased by six per cent or six hundred dollars, whichever is
less.
(B) The annual amount of each benefit for which eligibility
was established on or after January 1, 1977, but prior to January
1, 1980, shall, after the adjustment required by section 3309.374
of the Revised Code, be increased by four per cent or four hundred
dollars, whichever is less.
Sec. 3309.371. On and after October 1, 1957, all persons in
receipt of, or who are or become eligible to receive, a monthly
allowance, pension, or other benefit effective prior to June 29,
1955, which is payable or becomes payable pursuant to sections
3309.36 to 3309.38 3309.3712, 3309.40, and 3309.65 and former
section 3309.38 of the Revised Code, or an allowance payable at
any time under an option elected by a member and effective prior
to that date, shall be paid an increased allowance, pension, or
benefit as follows:
(A) An amount determined by increasing the original
allowance, pension, or benefit by the following percentages as
determined by the calendar year in which the allowance, pension,
or benefit became effective:
Calendar Year |
|
Per Cent |
|
|
Effective |
|
of Increase |
|
|
1937 - 1939 |
|
100 |
|
|
1940 |
|
94 |
|
|
1941 |
|
89 |
|
|
1942 |
|
77 |
|
|
1943 |
|
70 |
|
|
1944 |
|
68 |
|
|
1945 |
|
66 |
|
|
1946 |
|
55 |
|
|
1947 |
|
35 |
|
|
1948 |
|
23 |
|
|
1949 |
|
25 |
|
|
1950 |
|
23 |
|
|
1951 |
|
8 |
|
|
1952 |
|
4 |
|
|
1953 |
|
3 |
|
|
1954 |
|
2 |
|
|
Prior to June 29, 1955 |
|
2 |
|
|
(B) If the amount of any such allowance, pension, or other
benefit is increased by division (A) of this section to an amount
less than one hundred ten per cent of the present amount payable
immediately prior to October 1, 1957, such present amount shall be
increased by ten per cent.
(C) On and after August 1, 1959, the monthly allowance,
pension, or other benefit effective prior to June 29, 1955,
(exclusive of any amount receivable monthly by reason of a
voluntary deposit made for additional annuity), together with the
supplemental allowance payable pursuant to divisions (A) and (B)
of this section, shall be increased by twelve per cent.
Sec. 3309.373. (A) On and after July 1, 1968, all
allowances, pensions, or other benefits, which are payable or
become payable and for which eligibility is established prior to
July 1, 1968, pursuant to sections 3309.35, 3309.36, 3309.38,
3309.40, 3309.45, and 3309.46 and former section 3309.38 of the
Revised Code shall be increased by the percentages as determined
by the effective date of the allowance, pension, or benefit as
follows:
|
Effective Date of Benefit |
Percentage of |
|
|
|
Calendar Year |
Increase |
|
|
|
1937 through 1955 |
24.3 |
|
|
|
1956 |
22.5 |
|
|
|
1957 |
18.4 |
|
|
|
1958 |
15.2 |
|
|
|
1959 |
14.3 |
|
|
|
1960 |
12.5 |
|
|
|
1961 |
11.3 |
|
|
|
1962 |
10.1 |
|
|
|
1963 |
8.7 |
|
|
|
1964 |
7.3 |
|
|
|
1965 |
5.6 |
|
|
|
1966 |
2.6 |
|
|
|
1967 |
2.0 |
|
|
|
January 1, 1968 through June 30, 1968 |
2.0 |
|
|
(B)(1) All increases as determined by applying the
percentages in the table in division (A) of this section shall be
reduced by the dollar amount of the increases granted in 1965
pursuant to section 3309.372 of the Revised Code, except that no
allowance, pension, or benefit shall be reduced below the amount
due June 30, 1968 and no allowance granted under this section
shall be less than a total annual sum of thirty-six dollars.
(2) The allowances increased by division (A) of this section
shall exclude any monthly amount payable by reason of any
voluntary deposits made under section 3309.47 of the Revised Code.
(3) The increases provided by this section shall be granted
notwithstanding the final average salary limitation in sections
3309.36, 3309.40, and 3309.45 of the Revised Code.
(4) The cost of the increases provided by this section shall
be included in the employer contribution rate provided by section
3309.49 of the Revised Code. Such employer's contribution rate
shall not be increased until July 1, 1969 or later to reflect the
increased costs created by this section.
Sec. 3309.376. On and after December 31, 1971, all persons
who retired and were eligible to receive a pension that was
payable prior to July 1, 1968, pursuant to section 3309.36,
3309.38, or 3309.40 or former section 3309.38 of the Revised Code,
or in the event of the death of such persons, the person
designated by the deceased to receive payments under section
3309.46 of the Revised Code, shall receive an additional monthly
payment of two dollars for each year between the member's
effective date of retirement or disability and December 31, 1971,
or an additional fifty dollars, whichever is less.
Sec. 3309.379. (A) On and after the first day of the month
following the effective date of this section, each person eligible
to receive an allowance, pension, or benefit, pursuant to sections
3309.35, 3309.36, 3309.38, 3309.40, division (A) of section
3309.45, and section 3309.46 and former section 3309.38 of the
Revised Code, that was based upon an award made effective before
June 30, 1955, shall have the allowance, pension, or benefit
payable as of September 30, 1974, recalculated by the school
employees retirement board so that each such person shall receive
an annual single lifetime allowance, pension, or benefit or its
actuarial equivalent of not less than one hundred forty dollars
for each year of the member's total service credit, except that
service credit exceeding thirty-two years shall not be used in the
recalculation, and a final average salary limitation shall not be
applied.
If the amount of the allowance, pension, or benefit
recalculated under this division is less than the amount that is
payable on the effective date of this section, then the greater
allowance, pension, or benefit shall be continued.
(B) On and after the first day of the month following the
effective date of this section, each person receiving an
allowance, pension, or benefit, pursuant to sections 3309.35,
3309.36, 3309.38, 3309.40, division (A) of section 3309.45, and
section 3309.46 and former section 3309.38 of the Revised Code,
that was first effective on and after June 30, 1955, through June
30, 1971, shall be paid an increased allowance, pension, or
benefit as follows:
Effective Date of the Member's
|
|
|
|
|
Allowance, Pension, or Benefit: |
|
Per Cent of Increase: |
|
|
June 30, 1955 through June 29, 1959 |
|
33 |
|
|
June 30, 1959, through October 31, 1965 |
|
21 |
|
|
November 1, 1965, through June 30, 1968 |
|
14 |
|
|
July 1, 1968, through June 30, 1971 |
|
5 |
|
|
The increase shall be applied to the allowance, pension, or
benefit payable on the effective date of this section.
(C) On and after the first day of the month following the
effective date of this section, each person receiving or qualified
to receive an allowance, pension, or benefit, pursuant to division
(B) of section 3309.45 of the Revised Code, that was effective on
and after June 14, 1951, through August 26, 1970, shall receive an
increase in such allowance, pension, or benefit in the amount of
twenty per cent.
Sec. 3309.3710. (A) Effective July 1, 1981, each person
eligible to receive an allowance, pension, or benefit pursuant to
sections 3309.35, 3309.36, 3309.38, 3309.40, division (A) of
section 3309.45, and section 3309.46 and former section 3309.38 of
the Revised Code that was based upon an award made effective
before July 1, 1974, shall have the person's monthly allowance,
pension, or benefit increased by five per cent, except that the
twelve-month sum of such increases shall not exceed five per cent
of the first five thousand dollars of the annual allowance,
pension, or benefit.
(B) Effective July 1, 1981, each person receiving or
qualified to receive a benefit, pursuant to division (B) of
section 3309.45 of the Revised Code, that was effective on and
after June 14, 1951, through August 26, 1970, shall receive an
increase in such benefit of five per cent.
(C) The increases provided in divisions (A) and (B) of this
section shall be applied to the benefit payable on and after July
1, 1981.
(D) The increase in the monthly allowance, pension, or
benefit provided in divisions (A) and (B) of this section shall be
included in the calculation of additional benefits to recipients
under section 3309.374 of the Revised Code.
(E) The benefits provided in divisions (A) and (B) of this
section are a continuation of those first provided in Am. Sub.
H.B. 204 as passed by the 113th general assembly.
Sec. 3309.3711. Whenever the limits established by section
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26
U.S.C.A. 415, as amended, are raised, the school employees
retirement board shall increase the amount of the pension,
benefit, or allowance of any person whose pension, benefit, or
allowance payable under section 3309.36, 3309.374, 3309.38,
3309.381, 3309.40, or 3309.401 or former section 3309.38 of the
Revised Code was limited by the application of section 415. The
amount of the increased pension, benefit, or allowance shall not
exceed the lesser of the amount the person would have received if
the limits established by section 415 had not been applied or the
amount the person is eligible to receive subject to the new limits
established by section 415.
Sec. 3309.39. (A) The school employees retirement system
shall provide disability coverage to each member who has at least
five years of total service credit.
Not later than October 16, 1992, the school employees
retirement board shall give each person who is a member on July
29, 1992, the opportunity to elect disability coverage either
under section 3309.40 of the Revised Code or under section
3309.401 of the Revised Code. The board shall mail notice of the
election, accompanied by an explanation of the coverage under each
of the Revised Code sections and a form on which the election is
to be made, to each member at the member's last known address. The
board shall also provide the explanation and form to any member at
the member's request.
Regardless of whether the member actually receives notice of
the right to make an election, a member who fails to file a valid
election under this section shall be considered to have elected
disability coverage under section 3309.40 of the Revised Code. To
be valid, an election must be made on the form provided by the
retirement board, signed by the member, and filed with the board
not later than one hundred eighty days after the date the notice
was mailed, or, in the case of a form provided at the request of a
member, a date specified by rule of the retirement board. Once
made, an election is irrevocable, but if the member ceases to be a
member of the retirement system, the election is void. If a person
who makes an election under this section also makes an election
under section 145.35 or 3307.62 of the Revised Code, the election
made for the system that pays a disability benefit to that person
shall govern the benefit.
Disability coverage shall be provided under section 3309.401
of the Revised Code for persons who become members after July 29,
1992, and for members who elect under this division to be covered
under section 3309.401 of the Revised Code.
The retirement board may adopt rules governing elections made
under this division.
(B)(1) Application for a disability benefit may be made by a
member, by a person acting in the member's behalf, or by the
member's employer, provided if the member has meets all of the
following conditions:
(a) Has at least five years of total service credit and has;
(b) Has disability coverage under section 3309.40 or 3309.401
of the Revised Code. The;
(c) Is not receiving a disability benefit under this chapter
or Chapter 145., 742., 3305., 3307., or 5505. of the Revised Code,
or the Cincinnati retirement system;
(d) Is not applying for the disability benefit based on a
disabling condition that the system determines was caused by
commission of either of the following:
(i) A felony the member was convicted of, pled guilty to, or
was found not guilty of by reason of insanity;
(ii) An act for which the member was adjudicated a delinquent
child, that if committed by an adult, would be a felony.
(2) The application for a disability benefit shall be made on
a form provided by the retirement board. The benefit payable to
any member who is approved for a disability benefit shall become
effective on the first day of the month next following the later
of the following:
(1)(a) The last day for which compensation was paid;
(2)(b) The date on which the member member's most recent
application for a disability benefit was first incapacitated by
the disabling condition filed.
(C) Medical examination of a member who has applied for a
disability benefit shall be conducted by a competent disinterested
physician or physicians selected by the retirement board to
determine whether the member is mentally or physically
incapacitated for the performance of the member's last assigned
primary duty as an employee by a disabling condition either
permanent or presumed to be permanent for twelve continuous months
following the filing of an application. Such disability must have
occurred since last becoming a member before termination of the
member's contributing service and since last becoming a member or
have increased since last becoming a member to such extent as to
make the disability permanent or presumed to be permanent for
twelve continuous months following the filing of an application.
(D) Application for a disability benefit must be made within
two years from the date the member's contributing service
terminated, unless the retirement board determines that the
member's medical records demonstrate conclusively that at the time
the two-year period expired, the member was physically or mentally
incapacitated for duty as an employee and unable to make
application. Application may not be made by any person receiving a
service retirement allowance or commuted service retirement
allowance under section 3309.36, 3309.38, or 3309.381 or former
section 3309.38 of the Revised Code or any person who, pursuant to
section 3309.42 of the Revised Code, has been paid the accumulated
contributions standing to the credit of the person's individual
account in the employees' savings fund.
(E) If the physician or physicians determine that the member
qualifies for a disability benefit, the retirement board concurs
with the determination, and the member agrees to any recommended
medical treatment and vocational rehabilitation as specified in
division divisions (F) and (G) of this section, the member shall
receive a disability benefit under section 3309.40 or 3309.401 of
the Revised Code. The action of the board shall be final. At the
time the board decides it concurs with the determination of the
physician or physicians, the board shall determine the date on
which the member was first incapacitated by the disabling
condition.
(F) The school employees retirement board shall adopt rules
requiring a disability benefit recipient, as a condition of
continuing to receive a disability benefit, to agree in writing to
obtain any medical treatment recommended by the board's physician
and submit medical reports regarding the treatment. If the board
determines that a disability benefit recipient is not obtaining
the medical treatment or the board does not receive a required
medical report, the disability benefit shall be suspended until
the treatment is obtained, the report is received by the board, or
the board's physician certifies that the treatment is no longer
helpful or advisable. Should the recipient's failure to obtain
treatment or submit a medical report continue for one year, the
recipient's right to the disability benefit shall be terminated as
of the effective date of the original suspension.
(G)(1) A disability benefit recipient shall obtain any
vocational rehabilitation recommended by the board's physician or
other consultant and submit reports regarding the rehabilitation.
If the board determines that a recipient is not obtaining the
rehabilitation or the board does not receive a required report,
the disability benefit shall be suspended until the rehabilitation
is obtained, the report is received by the board, or the board's
physician or consultant certifies that rehabilitation is no longer
helpful or advisable. If the recipient's failure to obtain
rehabilitation or submit a required report continues for one year,
the recipient's right to the disability benefit shall be
terminated as of the effective date of the original suspension.
(2) The board shall adopt rules to implement this division.
(H) In the event an employer files an application for a
disability benefit as a result of a member having been separated
from service because the member is considered to be mentally or
physically incapacitated for the performance of the member's last
assigned primary duty as an employee, and the physician or
physicians selected by the board report to the board that the
member is physically and mentally capable of performing service
similar to that from which the member was separated, and the board
concurs in such report, then the board shall so certify to the
employer and the employer shall restore the member to the member's
previous position and salary or to a similar position and salary.
Sec. 3309.392. A recipient of a disability benefit granted
under this chapter on or after the effective date of this section
shall apply for social security disability insurance benefit
payments under 42 U.S.C. 423 if the recipient meets the
requirements of divisions (a)(1)(A), (B), and (C) of that section.
The application shall be made not later than ninety days after the
recipient is granted a disability benefit under this chapter
unless the school employees retirement board determines from the
member's medical records that the member is physically or mentally
unable to make the application. The recipient shall file a copy of
the completed application and a copy of the social security
administration's acknowledgement of receipt of the application
with the school employees retirement system. The system shall
accept the copy and acknowledgement as evidence of the member's
application.
If a recipient fails without just cause to apply for social
security disability insurance benefit payments or to file a copy
of the application and acknowledgement of receipt with the system,
the disability benefit under this chapter shall be suspended until
application is made and a copy of the application and
acknowledgement is filed with the system.
The member shall file with the system a copy of the social
security administration's final action on the member's application
for social security disability insurance benefit payments.
Sec. 3309.401. (A) A member with disability coverage under
this section who is determined by the school employees retirement
board under section 3309.39 of the Revised Code to qualify for a
disability benefit shall receive a disability allowance under this
section. The allowance shall be an annual amount equal to the
greater of the following:
(1) Forty-five per cent of the member's final average salary;
(2) The member's total service credit multiplied by two and
two-tenths per cent of the member's final average salary, not
exceeding sixty per cent of the member's final average salary.
(B) Sufficient reserves for payment of the disability
allowance shall be transferred to the annuity and pension reserve
fund from the employers' accumulation fund. The accumulated
contributions of the member shall remain in the employees' savings
fund. No part of the allowance paid under this section shall be
charged against the member's accumulated contributions.
(C) A disability allowance paid under this section shall
terminate at the earliest of the following:
(1) The effective date of service retirement under section
3309.35, or 3309.36, or 3309.38 of the Revised Code;
(2) The date the allowance is terminated under section
3309.41 of the Revised Code;
(3) The later of the last day of the month in which the
recipient attains age sixty-five, or the last day of the month in
which the benefit period ends as follows:
|
Attained Age at Effective Date |
|
|
|
|
|
of Disability Allowance |
|
Benefit Period |
|
|
|
60 or 61 |
|
60 months |
|
|
|
62 or 63 |
|
48 months |
|
|
|
64 or 65 |
|
36 months |
|
|
|
66, 67, or 68 |
|
24 months |
|
|
|
69 or older |
|
12 months |
|
|
Sec. 3309.41. (A) Notwithstanding any contrary provisions in
Chapter 124. or 3319. of the Revised Code:
(1) A disability benefit recipient whose benefit effective
date was before the effective date of this amendment shall retain
membership status and shall be considered on leave of absence from
employment during the first five years following the effective
date of a disability benefit, notwithstanding any contrary
provisions in Chapter 124. or 3319. of the Revised Code.
(2) A disability benefit recipient whose benefit effective
date is on or after the effective date of this amendment shall
retain membership status and shall be considered on leave of
absence from employment during the first three years following the
effective date of a disability benefit, except that, if the school
employees retirement board has recommended medical treatment or
vocational rehabilitation and the member is receiving treatment or
rehabilitation acceptable to a physician or consultant selected by
the board, the board may permit the recipient to retain membership
status and be considered on leave of absence from employment for
up to five years following the effective date of a disability
benefit.
(B) The school employees retirement board shall require a
disability benefit recipient to undergo an annual medical
examination, except that the board may waive the medical
examination if the board's physician or physicians certify that
the recipient's disability is ongoing. Should any disability
benefit recipient refuse to submit to a medical examination, the
recipient's disability benefit shall be suspended until withdrawal
of the refusal. Should the refusal continue for one year, all the
recipient's rights in and to the disability benefit shall be
terminated as of the effective date of the original suspension.
(C) On completion of the examination by an examining
physician or physicians selected by the board, the physician or
physicians shall report and certify to the board whether the
disability benefit recipient meets the applicable standard for
termination of a disability benefit. If the recipient's benefit
effective date is before the effective date of this amendment or
the benefit effective date is after the effective date of this
amendment and the recipient is considered on a leave of absence
under division (A)(2) of this section, the standard for
termination is that the recipient is no longer physically and
mentally incapable of resuming the service from which the
recipient was found disabled. If the board recipient's benefit
effective date is on or after the effective date of this amendment
and the recipient is not considered on a leave of absence under
division (A)(2) of this section, the standard is that the
recipient is not physically or mentally incapable of performing
the duties of a position that meets all of the following criteria:
(1) Replaces not less than seventy-five per cent of the
member's final average salary, adjusted each year by the actual
average increase in the consumer price index prepared by the
United States bureau of labor statistics (U.S. City Average for
Urban Wage Earners and Clerical Workers: "All Items 1982-84=100");
(2) Is reasonably to be found in the member's regional job
market;
(3) Is one that the member is qualified for by experience or
education.
If the board concurs in the report that the disability
benefit recipient is no longer incapable meets the applicable
standard for termination of a disability benefit, the payment of
the disability benefit shall be terminated not later than three
months after the date of the board's concurrence or upon
employment as an employee. If the leave of absence has not
expired, the retirement board shall certify to the disability
benefit recipient's last employer before being found disabled that
the recipient is no longer physically and mentally incapable of
resuming service that is the same or similar to that from which
the recipient was found disabled. The employer shall restore the
recipient to the recipient's previous position and salary or to a
position and salary similar thereto not later than the first day
of the first month following termination of the disability
benefit, unless the recipient was dismissed or resigned in lieu of
dismissal for dishonesty, misfeasance, malfeasance, or conviction
of a felony.
(D) Each disability benefit recipient shall file with the
board an annual statement of earnings, current medical information
on the recipient's condition, and any other information required
in rules adopted by the board. The board may waive the requirement
that a disability benefit recipient file an annual statement of
earnings or current medical information on the recipient's
condition if the board's physician or physicians certify that the
recipient's disability is ongoing.
The board shall annually examine the information submitted by
the recipient. If a disability benefit recipient refuses to file
the statement or information, the disability benefit shall be
suspended until the statement and information are filed. If the
refusal continues for one year, the recipient's right to the
disability benefit shall be terminated as of the effective date of
the original suspension.
(E) If a disability benefit recipient is employed by an
employer covered by this chapter, the recipient's disability
benefit shall cease.
(F) If disability retirement under section 3309.40 of the
Revised Code is terminated for any reason, the annuity and pension
reserves at that time in the annuity and pension reserve fund
shall be transferred to the employees' savings fund and the
employers' trust fund, respectively. If the total disability
benefit paid is less than the amount of the accumulated
contributions of the member transferred into the annuity and
pension reserve fund at the time of the member's disability
retirement, the difference shall be transferred from the annuity
and pension reserve fund to another fund as may be required. In
determining the amount of a member's account following the
termination of disability retirement for any reason, the amount
paid shall be charged against the member's refundable account.
If a disability allowance paid under section 3309.401 of the
Revised Code is terminated for any reason, the reserve on the
allowance at that time in the annuity and pension reserve fund
shall be transferred from that fund to the employers' trust fund.
The board may terminate a disability benefit at the request
of the recipient.
(G) If a disability benefit is terminated and a former
disability benefit recipient again becomes a contributor, other
than as an other system retirant as defined in section 3309.341 of
the Revised Code, to this system, the public employees retirement
system, or the state teachers retirement system, and completes an
additional two years of service credit after the termination of
the disability benefit, the former disability benefit recipient
shall be entitled to full receive up to two years of service
credit for the period as a disability benefit recipient and may
purchase service for the remaining period of the disability
benefit. Total service credit received and purchased under this
section shall not exceed the period of the disability benefit.
For each year of credit purchased, the member shall pay to
the system for credit to the member's accumulated account the sum
of the following amounts:
(1) The employee contribution rate in effect at the time the
disability benefit commenced multiplied by the member's annual
disability benefit;
(2) The employer contribution rate in effect at the time the
disability benefit commenced multiplied by the member's annual
disability benefit;
(3) Compound interest at a rate established by the board from
the date the member is eligible to purchase the credit to the date
of payment.
The member may choose to purchase only part of such credit in
any one payment, subject to board rules.
(H) If any employer employs any member who is receiving a
disability benefit, the employer shall file notice of employment
with the retirement board, designating the date of employment. In
case the notice is not filed, the total amount of the benefit paid
during the period of employment prior to notice shall be paid from
amounts allocated under Chapter 3317. of the Revised Code prior to
its distribution to the school district in which the disability
benefit recipient was so employed.
Sec. 3309.44. (A) As used in this section and in section
3309.45 of the Revised Code:
(1) "Child" means a biological or legally adopted child of a
deceased member. If a court hearing for an interlocutory decree
for adoption was held prior to the member's death, "child"
includes the child who was the subject of the hearing
notwithstanding the fact that the final decree of adoption,
adjudging the surviving spouse as the adoptive parent, is made
subsequent to the member's death.
(2) "Parent" is a parent or legally adoptive parent of a
deceased member.
(3) "Dependent" means a beneficiary who receives one-half of
the beneficiary's support from a member during the twelve months
prior to the member's death.
(4) "Surviving spouse" means an individual who establishes a
valid marriage to a member at the time of the member's death by
marriage certificate or pursuant to division
(E)(F) of this
section.
(5) "Survivor" means a surviving spouse, child, or parent.
(B) Except as provided in division (C)(1) of section 3309.45
of the Revised Code, should a member die before service or
commuted service retirement, the member's accumulated
contributions and any amounts owed and unpaid to a disability
benefit recipient shall be paid to such beneficiaries as the
member has designated in writing on a form provided by the school
employees retirement board, signed by the member and filed with
the board prior to death. The last designation of any beneficiary
revokes all previous designations. The member's marriage, divorce,
legal dissolution, legal separation, or withdrawal of account, or
the birth of the member's child, or the member's adoption of a
child, constitutes an automatic revocation of the member's last
designation. If a deceased member was also a member of the public
employees retirement system or the state teachers retirement
system, the beneficiary last established among the systems shall
be the sole beneficiary in all the systems.
If the accumulated contributions of a deceased member are not
claimed by a beneficiary, or by the estate of the deceased member,
within ten years, they shall be transferred to the guarantee fund
and thereafter paid to such beneficiary or to the member's estate
upon application to the board. The board shall formulate and adopt
rules governing all designations of beneficiaries.
(C) Except as provided in division (C)(1) of section 3309.45
of the Revised Code, if a member dies before service or commuted
service retirement and is not survived by a designated
beneficiary, any beneficiaries the following shall qualify, in the
following order of precedence, with all attendant rights and
privileges, the member's:
(2) Children share and share alike;
(3) A dependent parent who is age sixty-five or older, if
that parent takes survivor benefits under division (B) of section
3309.45 of the Revised Code;
(4) Parents, share and share alike;
Any payment made to a beneficiary as determined by the school
employees retirement board shall be a full discharge and release
to the board from any future claims.
If a person listed in divisions (C)(1) to (4) of this section
is deceased or is not located within one hundred eighty days, the
person ceases to qualify for any benefit and the person next in
order of precedence shall qualify.
(D) Any amount due any person, as an annuitant receiving a
monthly service or commuted service retirement allowance or
benefit, and unpaid to the annuitant at death, shall be paid to
the beneficiary designated in writing on a form provided by the
retirement board, signed by the annuitant and filed with the
board. If no such designation has been filed, or if the designated
beneficiary is deceased or is not located within ninety days, such
amount shall be paid, except as otherwise provided in section
3309.45 of the Revised Code, in the following order of precedence
to the annuitant's:
(2) Children, share and share alike;
(3) Parents, share and share alike;
If a person listed in divisions (D)(1) to (3) of this section
is deceased or is not located within one hundred eighty days, the
person ceases to qualify for any benefit and the person next in
order of precedence shall qualify.
For the purpose of this division, an "annuitant" is the last
person who received a monthly allowance or benefit pursuant to the
plan of payment selected by the retirant or designated by this
chapter. Such payment shall be a full discharge and release to the
board from any future claim for such payment.
(E) Any payment made under this section as determined by the
board shall be a full discharge and release to the board from any
future claim for payment.
(F) If the validity of marriage cannot be established to the
satisfaction of the retirement board for the purpose of disbursing
any amount due under this section or section 3309.45 of the
Revised Code, the retirement board may accept a decision rendered
by a court having jurisdiction in the state in which the member
was domiciled at the time of death that the relationship
constituted a valid marriage at the time of death, or the "spouse"
would have the same status as a widow or widower for purposes of
sharing in the distribution of the member's intestate personal
property.
(F)(G) As used in this division, "recipient" means an
individual who is receiving or may be eligible to receive an
allowance or benefit under this chapter based on the individual's
service to an employer.
If the death of a member, a recipient, or any individual who
would be eligible to receive an allowance or benefit under this
chapter by virtue of the death of a member or recipient is caused
by one of the following beneficiaries, no amount due under this
chapter to the beneficiary shall be paid to the beneficiary in the
absence of a court order to the contrary filed with the retirement
board:
(1) A beneficiary who is convicted of, pleads guilty to, or
is found not guilty by reason of insanity of a violation of or
complicity in the violation of either of the following:
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised Code;
(b) An existing or former law of any other state, the United
States, or a foreign nation that is substantially equivalent to
section 2903.01, 2903.02, or 2903.03 of the Revised Code;
(2) A beneficiary who is indicted for a violation of or
complicity in the violation of the sections or laws described in
division (F)(G)(1)(a) or (b) of this section and is adjudicated
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a delinquent
child by reason of committing an act that, if committed by an
adult, would be a violation of or complicity in the violation of
the sections or laws described in division (F)(G)(1)(a) or (b) of
this section.
Sec. 3309.45. Except as provided in division (C)(1) of this
section, in lieu of accepting the payment of the accumulated
account of a member who dies before service retirement, the
beneficiary, as determined in section 3309.44 of the Revised Code,
may elect to forfeit the accumulated account and to substitute
certain other benefits either under division (A) or (B) of this
section.
(A)(1) If a deceased member was eligible for a service
retirement allowance as provided in section 3309.36, 3309.38, or
3309.381 of the Revised Code, a surviving spouse or other sole
dependent beneficiary may elect to receive a monthly benefit
computed as the joint-survivor allowance designated as "plan D" in
section 3309.46 of the Revised Code, which the member would have
received had the member retired on the last day of the month of
death and had the member at that time selected such joint-survivor
plan. Payment shall begin with the month subsequent to the
member's death.
(2) Beginning on a date selected by the school employees
retirement board, which shall be not later than July 1, 2004, a
surviving spouse or other sole dependent beneficiary may elect, in
lieu of a monthly payment under division (A)(1) of this section, a
plan of payment consisting of both of the following:
(a) A lump sum in an amount the surviving spouse or other
sole dependent beneficiary designates that constitutes a portion
of the allowance that would be payable under division (A)(1) of
this section;
(b) The remainder of that allowance in monthly payments.
The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected.
The lump sum amount designated by the surviving spouse or
other sole dependent beneficiary under division (A)(2)(a) of this
section shall be not less than six times and not more than
thirty-six times the monthly amount that would be payable to the
surviving spouse or other sole dependent beneficiary under
division (A)(1) of this section and shall not result in a monthly
benefit that is less than fifty per cent of that monthly amount.
(B) If the deceased member had completed at least one and
one-half years of credit for Ohio service, with at least
one-quarter year of Ohio contributing service credit within the
two and one-half years prior to the date of death, or was
receiving at the time of death a disability benefit as provided in
section 3309.40 or 3309.401 of the Revised Code, qualified
survivors who elect to receive monthly benefits shall receive the
greater of the benefits provided in division (B)(1)(a) or (b) as
allocated in accordance with division (B)(5) of this section.
|
(1)(a) Number |
|
|
Or |
|
|
|
of Qualified |
|
|
Monthly |
|
|
|
survivors |
Annual Benefit as a Per |
|
Benefit |
|
|
|
affecting |
Cent of Decedent's Final |
|
shall not be |
|
|
|
the benefit |
Average Salary |
|
less than |
|
|
|
1 |
|
25% |
|
$96 |
|
|
|
2 |
|
40 |
|
186 |
|
|
|
3 |
|
50 |
|
236 |
|
|
|
4 |
|
55 |
|
236 |
|
|
|
5 or more |
|
60 |
|
236 |
|
|
(b) Years of Service |
Annual Benefit as a Per Cent of Member's Final Average Salary |
|
|
20 |
29% |
|
|
21 |
33 |
|
|
22 |
37 |
|
|
23 |
41 |
|
|
24 |
45 |
|
|
25 |
48 |
|
|
26 |
51 |
|
|
27 |
54 |
|
|
28 |
57 |
|
|
29 or more |
60 |
|
|
(2) Benefits shall begin as qualified survivors meet
eligibility requirements as follows:
(a) A qualified spouse is the surviving spouse of the
deceased member who is age sixty-two, or regardless of age if the
deceased member had ten or more years of Ohio service credit, or
regardless of age if caring for a surviving child, or regardless
of age if adjudged physically or mentally incompetent.
(b) A qualified child whose benefit began before the
effective date of this amendment is any child of the deceased
member who has never been married and to whom one of the following
applies:
(i) Is under age eighteen, or under age twenty-two if the
child is attending an institution of learning or training pursuant
to a program designed to complete in each school year the
equivalent of at least two-thirds of the full-time curriculum
requirements of such institution and as further determined by
board policy;
(ii) Regardless of age, is adjudged physically or mentally
incompetent if the incompetence existed prior to the member's
death and prior to the child attaining age eighteen, or age
twenty-two if attending an institution described in division
(B)(2)(b)(i) of this section.
(c) A qualified child whose benefit begins on or after the
effective date of this amendment is any child of the deceased
member who has never been married and to whom one of the following
applies:
(i) Is under age nineteen;
(ii) Regardless of age, is adjudged physically or mentally
incompetent if the incompetence existed prior to the member's
death and prior to the child attaining age nineteen.
(d) A qualified parent is a dependent parent aged sixty-five
or older.
(3) "Physically or mentally incompetent" as used in this
section may be determined by a court of jurisdiction, or by a
physician appointed by the retirement board. Incapability of
earning a living because of a physically or mentally disabling
condition shall meet the qualifications of this division.
(4) Benefits to a qualified survivor shall terminate upon a
first marriage, abandonment, adoption, or during active military
service. Benefits to a deceased member's surviving spouse that
were terminated under a former version of this section that
required termination due to remarriage and were not resumed prior
to September 16, 1998, shall resume on the first day of the month
immediately following receipt by the board of an application on a
form provided by the board.
Upon the death of any subsequent spouse who was a member of
the public employees retirement system, state teachers retirement
system, or school employees retirement system, the surviving
spouse of such member may elect to continue receiving benefits
under this division, or to receive survivor's benefits, based upon
the subsequent spouse's membership in one or more of the systems,
for which such surviving spouse is eligible under this section or
section 145.45 or 3307.66 of the Revised Code. If the surviving
spouse elects to continue receiving benefits under this division,
such election shall not preclude the payment of benefits under
this division to any other qualified survivor.
Benefits shall begin or resume on the first day of the month
following the attainment of eligibility and shall terminate on the
first day of the month following loss of eligibility.
(5)(a) If a benefit is payable under division (B)(1)(a) of
this section, benefits to a qualified spouse shall be paid in the
amount determined for the first qualifying survivor in division
(B)(1)(a) of this section, but shall not be less than one hundred
six dollars per month if the deceased member had ten or more years
of Ohio service credit. All other qualifying survivors shall share
equally in the benefit or remaining portion thereof.
(b) All qualifying survivors shall share equally in a benefit
payable under division (B)(1)(b) of this section, except that if
there is a surviving spouse, the surviving spouse shall receive no
less than the greater of the amount determined for the first
qualifying survivor in division (B)(1)(a) of this section or one
hundred six dollars per month.
(6) The beneficiary of a member who is also a member of the
public employees retirement system, or of the state teachers
retirement system, must forfeit the member's accumulated
contributions in those systems, if the beneficiary takes a
survivor benefit. Such benefit shall be exclusively governed by
section 3309.35 of the Revised Code.
(C)(1) Regardless of whether the member is survived by a
spouse or designated beneficiary, if the school employees
retirement system receives notice that a deceased member described
in division (A) or (B) of this section has one or more qualified
children, all persons who are qualified survivors under division
(B) of this section shall receive monthly benefits as provided in
division (B) of this section.
If, after determining the monthly benefits to be paid under
division (B) of this section, the system receives notice that
there is a qualified survivor who was not considered when the
determination was made, the system shall, notwithstanding section
3309.661 of the Revised Code, recalculate the monthly benefits
with that qualified survivor included, even if the benefits to
qualified survivors already receiving benefits are reduced as a
result. The benefits shall be calculated as if the qualified
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified
survivors effective on the first day of the first month following
the system's receipt of the notice.
If the retirement system did not receive notice that a
deceased member has one or more qualified children prior to making
payment under section 3309.44 of the Revised Code to a beneficiary
as determined by the retirement system, the payment is a full
discharge and release of the system from any future claims under
this section or section 3309.44 of the Revised Code.
(2) If benefits under division (C)(1) of this section to all
persons, or to all persons other than a surviving spouse or other
sole beneficiary, terminate, there are no children under the age
of twenty-two years, and the surviving spouse or beneficiary
qualifies for benefits under division (A) of this section, the
surviving spouse or beneficiary may elect to receive benefits
under division (A) of this section. Benefits shall be effective on
the first day of the month following receipt by the board of an
application for benefits under division (A) of this section.
(D) The final average salary used in the calculation of a
benefit payable pursuant to division (A) or (B) of this section to
a survivor or beneficiary of a disability benefit recipient shall
be adjusted for each year between the disability benefit's
effective date and the recipient's date of death by the lesser of
three per cent or the actual average percentage increase in the
consumer price index prepared by the United States bureau of labor
statistics (U.S. City Average for Urban Wage Earners and Clerical
Workers: "All Items 1982-84=100").
(E) If the survivor benefits due and paid under this section
are in a total amount less than the member's accumulated account
that was transferred from the employees' savings fund, the state
teachers retirement fund, and the public employees retirement fund
to the survivors' benefit fund, then the difference between the
total amount of the benefits paid shall be paid to the beneficiary
under section 3309.44 of the Revised Code.
Sec. 3309.46. (A) The retirement allowance calculated under
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be
paid as provided in this section. If the member is eligible to
elect a plan of payment under this section, the election shall be
made on the application for retirement. A plan of payment elected
under this section shall be effective only if it is certified by
the actuary engaged by the school employees retirement board to be
the actuarial equivalent of the member's retirement allowance and
is approved by the retirement board.
(B)(1)(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:
(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.
(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.
(b) If the marriage or remarriage occurs on or after the
effective date of this amendment June 6, 2005, 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 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.
Sec. 3309.47. Each school employees retirement system
contributor shall contribute eight per cent of the contributor's
compensation to the employees' savings fund, except that the
school employees retirement board may raise the contribution rate
to a rate not greater than ten per cent of compensation.
The contributions by the direction of the school employees
retirement board shall be deducted by the employer from the
compensation of each contributor on each payroll of such
contributor for each payroll period and shall be an amount equal
to the required per cent of such contributor's compensation. On a
finding by the board that an employer has failed or refused to
deduct contributions for any employee during any year and to
transmit such amounts to the retirement system, the retirement
board may make a determination of the amount of the delinquent
contributions, including interest at a rate set by the retirement
board, from the end of each year, and certify to the employer the
amounts for collection. If the amount is not paid by the employer,
it may be certified for collection in the same manner as payments
due the employers' trust fund. Any amounts so collected shall be
held in trust pending receipt of a report of contributions for the
employee for the period involved as provided by law and,
thereafter, the amount in trust shall be transferred to the
employee's savings fund to the credit of the employee. Any amount
remaining after the transfer to the employees' savings fund shall
be transferred to the employers' trust fund as a credit of the
employer.
Any contributor under contract who, because of illness,
accident, or other reason approved by the employer, is prevented
from making the contributor's contribution to the system for any
payroll period, may, upon returning to contributing service, have
such deductions made from other payrolls during the year, or may
pay such amount to the employer and the employer shall transmit
such deductions to the system. The deductions shall be made
notwithstanding that the minimum compensation for any contributor
shall be reduced thereby. Every contributor shall be deemed to
consent and agree to the contributions made and provided for in
this section and shall receipt in full for the contributor's
salary or compensation, and payment, less the contributions, is a
full and complete discharge and acquittance of all claims and
demands whatsoever for the services rendered by the person during
the period covered by the payment.
Each contributor shall pay with the first payment to the
employees' savings fund each year a sum to be determined by the
board, as provided by law, which amount shall be credited to the
expense fund. The payments for the expense fund shall be made to
the board in the same way as payments to the employees' savings
fund are made.
Additional deposits may be made to a member's account. At
retirement, the amount deposited with interest may be used to
provide additional annuity income. The additional deposits may be
refunded to the member before retirement, and shall be refunded if
the member withdraws the member's refundable amount. The deposits
may be refunded to the beneficiary or estate if the member dies
before retirement, and the board shall determine whether regular
interest shall be credited to deposits thus refunded.
Sec. 3309.474. (A) As used in this section, "state
retirement system" means the public employees retirement system,
Ohio police and fire pension fund, state teachers retirement
system, school employees retirement system, or state highway
patrol retirement system.
(B) A state retirement system member who while a member of
the school employees retirement system was out of service due to a
leave of absence approved by the member's employer may purchase
from the school employees retirement system service credit for any
period during the leave for which contributions were not made
under section 3309.47 of the Revised Code.
For purposes of this section, a period of leave commences on
the first day for which employee and employer contributions were
not made to the system and ends on the earlier of the termination
of the leave or the member's return to contributing service.
(C)(1) For each year of service purchased, the member shall
pay to the school employees retirement system for credit to the
member's accumulated account with that system an amount equal to
the sum of the following:
(a) An amount determined by multiplying the compensation the
member would have received during the leave by the employee
contribution rate in effect at that time;
(b) An amount determined by multiplying the compensation the
member would have received during the leave by the employer
contribution rate in effect at that time;
(c) Compound interest at a rate determined by the school
employees retirement board from the first day of the year
following the date the leave commenced to the date of payment.
(2) If the employee or employer contribution rate changed
during the leave, contributions for each month of the leave shall
be made at the rate in effect for that month.
(D) Service credit purchased under this section for any
period of leave shall not exceed two years. Credit may be
purchased for more than one period of leave, but the total number
of years purchased shall not exceed the lesser of five years or
the member's total accumulated number of years of service as a
contributor to the school employees retirement system. The member
may choose to purchase only part of such credit in any one
payment, subject to board rules.
(E) The board may adopt rules under section 3309.04 of the
Revised Code to implement this section.
Sec. 3309.50. (A)(1) Upon the death of a retirant or
disability benefit recipient, who at the time of death is
receiving a service retirement allowance or disability benefit
from the school employees retirement system, a lump-sum payment of
one thousand dollars shall be paid to any designated or qualified
beneficiary under division (D) of section 3309.44 of the Revised
Code, or, if no such designation has been filed or if the
designated beneficiary is deceased or is not located within ninety
days, the school employees retirement board may approve payment to
either the person responsible for the burial expenses or to the
decedent's estate following the completion of an application on a
form approved by the board, following completion of an application
on a form approved by the school employees retirement board, in
the following order of precedence to:
(a) The retirant or recipient's designated beneficiary;
(b) The retirant or recipient's surviving spouse;
(c) The retirant or recipient's children, share and share
alike;
(d) The retirant or recipient's parents, share and share
alike;
(e) The person responsible for the retirant or recipient's
burial expenses;
(f) The retirant or recipient's estate.
(2) If a person listed in division (A)(1) of this section is
deceased or is not located within one hundred eighty days, the
person ceases to qualify for the payment. The payment shall be
made to the person next in order of precedence.
(B) A benefit paid under this section shall be treated as
life insurance for purposes of this chapter and shall be funded
solely from contributions made under section 3309.49 of the
Revised Code and any earnings attributable to those contributions.
Sec. 3309.51. (A) Each employer shall pay annually into the
employers' trust fund, in such monthly or less frequent
installments as the school employees retirement board requires, an
amount certified by the school employees retirement board, which
shall be as required by Chapter 3309. of the Revised Code.
Payments by school district boards of education to the
employers' trust fund of the school employees retirement system
may be made from the amounts allocated under Chapter 3317. of the
Revised Code prior to their distribution to the individual school
districts. The amount due from each school district may be
certified by the secretary of the system to the superintendent of
public instruction monthly, or at such times as is determined by
the school employees retirement board.
Payments by governing authorities of community schools to the
employers' trust fund of the school employees retirement system
shall be made from the amounts allocated under section 3314.08 of
the Revised Code prior to their distribution to the individual
community schools. The amount due from each community school shall
be certified by the secretary of the system to the superintendent
of public instruction monthly, or at such times as determined by
the school employees retirement board.
Payments by a science, technology, engineering, and
mathematics school to the employers' trust fund of the school
employees retirement system shall be made from the amounts
allocated under section 3326.33 of the Revised Code prior to their
distribution to the school. The amount due from a science,
technology, engineering, and mathematics school shall be certified
by the secretary of the school employees retirement system to the
superintendent of public instruction monthly, or at such times as
determined by the school employees retirement board.
(B) The superintendent shall deduct from the amount allocated
to each community school under section 3314.08 of the Revised
Code, to each school district under Chapter 3317. of the Revised
Code, or to each science, technology, engineering, and mathematics
school under section 3326.33 of the Revised Code the entire
amounts due to the school employees retirement system from such
school or school district upon the certification to the
superintendent by the secretary thereof.
(C) Where an employer fails or has failed or refuses to make
payments to the employers' trust fund, as provided for under
Chapter 3309. of the Revised Code, or fails to pay any penalty
imposed under section 3309.571 of the Revised Code the secretary
of the school employees retirement system may certify to the state
superintendent of public instruction, monthly or at such times as
is determined by the school employees retirement board, the amount
due from such employer, and the superintendent shall deduct from
the amount allocated to the employer under section 3314.08 or
3326.33 or Chapter 3317. of the Revised Code, as applicable, the
entire amounts due to the system from the employer upon the
certification to the superintendent by the secretary of the school
employees retirement system.
(D) The superintendent shall certify to the director of
budget and management the amounts thus due the system for payment.
Sec. 3309.571. The school employees retirement system shall
impose the following penalties, which may be collected in the same
manner as described in division (B) of section 3309.51 of the
Revised Code:
(A) For a failure to transmit contributions withheld from
employees not later than the date specified under rules adopted by
the school employees retirement board, one hundred dollars per day
for each day the employer fails to transmit the contributions;
(B) For a failure to transmit any amount due the employer's
trust fund not later than the date specified under rules adopted
by the board, one hundred dollars per day for each day the
employer fails to transmit the amounts;
(C) Except for a statement required by section 3309.28 of the
Revised Code, for a failure to submit, complete, or correct any
payroll information or other report required under this chapter
not later than the date specified under rules adopted by the
board, one hundred dollars per day for each day the employer fails
to submit, complete, or correct the information or report, except
that the penalty shall not exceed one thousand five hundred
dollars;
(D) For a failure to submit a record in the form of a
statement required by section 3309.28 of the Revised Code, fifty
dollars per record for each month the record is not filed, except
that the penalty shall not exceed three hundred dollars.
Sec. 3309.69. (A) As used in this section, "ineligible
individual" means all of the following:
(1) A former member receiving benefits pursuant to section
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised
Code for whom eligibility is established more than five years
after June 13, 1981, and who, at the time of establishing
eligibility, has accrued less than ten years of service credit,
exclusive of credit obtained after January 29, 1981, pursuant to
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised
Code;
(2) The spouse of the former member;
(3) The beneficiary of the former member receiving benefits
pursuant to section 3309.46 of the Revised Code.
(B) The school employees retirement board may enter establish
a program to provide medical, hospital, surgical, prescription, or
other health care coverage, benefits, reimbursement, or any
combination thereof, to eligible individuals or dependents.
Any program established under this section shall be designed
and administered by the board. In establishing a program, the
board may do any of the following:
(1) Enter into an agreement with insurance companies, health
insuring corporations, persons or government agencies authorized
to do business in the state for issuance of a policy or contract
of health, medical, hospital, or prescription, surgical, or other
health care benefits, or any combination thereof, for those
individuals receiving service retirement or a disability or
survivor benefit subscribing to the plan and their eligible
dependents.
If all or any portion of the policy or contract premium is to
be paid by any individual receiving service retirement or a
disability or survivor benefit, the person shall, by written
authorization, instruct the board to deduct the premiums agreed to
be paid by the individual to the companies, corporations, or
agencies.
The board may contract for coverage on the basis of part or
all of the cost of the coverage to be paid from appropriate funds
of the school employees retirement system. The cost paid from the
funds of the system shall be included in the employer's
contribution rate provided by sections 3309.49 and 3309.491 of the
Revised Code. The board shall not pay or reimburse the cost for
health care under this section or section 3309.375 of the Revised
Code for any ineligible individual.
(2) Provide for self-insurance of risk or level of risk as
set forth in the contract with the companies, corporations, or
agencies, and may provide through the self-insurance method
specific benefits as authorized by the rules of the board.;
(3) Provide reimbursements or subsidies to eligible
participants;
(5) Determine levels of coverage and costs for the program;
(6) Take any other action it considers necessary to establish
and administer the program.
(B) If it establishes a health care program, the board shall
establish eligibility criteria and any other requirements for
participation. To be eligible, an individual must meet the
criteria established by the board and be one or more of the
following:
(1) A former member receiving benefits pursuant to section
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised
Code;
(2) A disability benefit recipient receiving a disability
benefit pursuant to section 3309.35, 3309.39, 3309.40, or 3309.401
of the Revised Code;
(3) A beneficiary receiving monthly benefits pursuant to
section 3309.45 of the Revised Code;
(4) The beneficiary of a former member who is receiving
monthly benefits pursuant to section 3309.46 of the Revised Code;
(5) A dependent, as determined under rules adopted by the
board, of an individual described in divisions (B)(1) to (4) of
this section.
(C) The cost paid from the funds of the system for coverage
under this section shall be included in the employer contribution
under sections 3309.49 and 3309.491 of the Revised Code.
(D)(1) The board may require payment of a premium for
participation in the health care program. Participation is deemed
consent for the deduction of premiums from any pension, benefit,
or annuity provided under this chapter to an eligible participant.
(2) An individual who fails to pay any required premium or
receives any coverage or payment to which the individual is not
entitled shall pay or repay any amount due the system. If an
individual fails to pay or repay an amount due, the system may
withhold the amount from any pension, benefit, annuity, or payment
due the individual or the individual's beneficiary under this
chapter or collect the amount in any other manner provided by law.
(E) A health care program participant who is eligible for
coverage under medicare part B, "Supplementary Medical Insurance
Benefits for the Aged and Disabled," 42 U.S.C. 1395j, as amended,
shall enroll for that coverage. The board shall, beginning the
month following receipt of satisfactory evidence of the payment
for coverage, make a monthly payment to each recipient of service
retirement, or a disability or survivor benefit under the school
employees retirement system who is eligible for insurance coverage
under part B of "The Social Security Amendments of 1965," 79 Stat.
301, 42 U.S.C.A. 1395j, as amended, except that the board shall
make no such payment to any ineligible individual. Effective on
the first day of the month after April 9, 2001, the amount of the
payment shall be the lesser of an amount equal to the basic
premium for such coverage, or an amount equal to the basic premium
in effect on January 1, 1999 the participant in an amount
determined by the board for such coverage that is not less than
forty-five dollars and fifty cents, except that the board shall
make no payment to a participant who is not eligible for coverage
under medicare part B or pay an amount that exceeds the amount
paid by the recipient for the coverage.
(D)(F) The board shall establish by rule requirements for the
coordination of any coverage, payment, or benefit provided under
this section or section 3309.375 of the Revised Code with any
similar coverage, payment, or benefit made available to the same
individual by the public employees retirement system, Ohio police
and fire pension fund, state teachers retirement system, or state
highway patrol retirement system.
(E)(G) The board shall make all other necessary rules
pursuant to the purpose and intent of this section.
(H) This section does not require the board to establish,
maintain, offer, or continue any health care program. This section
does not require the board to provide or continue access to any
health care program, or any level of coverage or costs provided
under the program, if the board establishes or maintains a program
under this section.
Sec. 3309.88. For each member participating in a plan
established under section 3309.81 of the Revised Code, the school
employees retirement system shall transfer to the employers' trust
fund a portion of the employer contribution required under section
3309.49 of the Revised Code. The portion shall equal the
percentage of compensation of members for whom the contributions
are being made that is determined by an actuary appointed by the
school employees retirement board to be necessary to mitigate any
negative financial impact on the system of members' participation
in a plan.
The board shall have prepared annually an actuarial study to
determine whether the percentage transferred under this section
should be changed to reflect a change in the level of negative
financial impact resulting from members' participation in a plan.
The percentage transferred shall be increased or decreased to
reflect the amount needed to mitigate the negative financial
impact, if any, on the system, as determined by the study. A
change shall take effect on the first day of the year following
the date the conclusions of the study are reported to the board.
The system shall make the transfer required under this
section until the unfunded actuarial accrued liability for all
benefits, except health care benefits provided under section
3309.375 or 3309.69 of the Revised Code and benefit increases to
members and former members participating in the plan described in
sections 3309.18 to 3309.70 of the Revised Code granted after
the
effective date of this section
April 9, 2001, is fully amortized,
as determined by the annual actuarial valuation prepared under
section 3309.21 of the Revised Code.
Section 2. That existing sections 3309.05, 3309.051,
3309.061, 3309.07, 3309.072, 3309.074, 3309.075, 3309.10, 3309.15,
3309.21, 3309.22, 3309.23, 3309.26, 3309.28, 3309.33, 3309.34,
3309.341, 3309.343, 3309.35, 3309.353, 3309.354, 3309.36,
3309.362, 3309.371, 3309.373, 3309.376, 3309.379, 3309.3710,
3309.3711, 3309.39, 3309.401, 3309.41, 3309.44, 3309.45, 3309.46,
3309.47, 3309.50, 3309.51, 3309.69, and 3309.88 and sections
3309.38 and 3309.571 of the Revised Code are hereby repealed.
Section 3. Section 3309.23 of the Revised Code is presented
in this act as a composite of the section as amended by both Am.
Sub. S.B. 351 and Am. S.B. 346 of the 119th General Assembly. The
General Assembly, applying the principle stated in division (B) of
section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
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