The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
Sub. S. B. No. 342 As Reported by the House Health and Aging CommitteeAs Reported by the House Health and Aging Committee
129th General Assembly | Regular Session | 2011-2012 |
| |
Senators Niehaus, Kearney
Cosponsors:
Senators Bacon, Eklund, Hite, Jones, Lehner, Schiavoni, Seitz, Tavares
A BILL
To amend sections 3305.06, 3307.01, 3307.031,
3307.04, 3307.044, 3307.061, 3307.14, 3307.142,
3307.20, 3307.214, 3307.25, 3307.251, 3307.252,
3307.26, 3307.28, 3307.33, 3307.35, 3307.351,
3307.352, 3307.371, 3307.39, 3307.391, 3307.42,
3307.46, 3307.47, 3307.50, 3307.501, 3307.51,
3307.512, 3307.52, 3307.53, 3307.56, 3307.561,
3307.562, 3307.563, 3307.57, 3307.58, 3307.59,
3307.60, 3307.62, 3307.63, 3307.631, 3307.64,
3307.66, 3307.661, 3307.67, 3307.671, 3307.694,
3307.71, 3307.711, 3307.712, 3307.72, 3307.73,
3307.74, 3307.75, 3307.751, 3307.752, 3307.76,
3307.761, 3307.763, 3307.764, 3307.77, 3307.771,
3307.78, 3307.79, 3307.80, 3307.81, 3307.811,
3307.812, 3307.83, 3307.84, 3307.86, 3307.87,
3307.89, 3307.98, and 3313.975; to amend, for the
purpose of adopting new section numbers as
indicated in parentheses, sections 3307.64
(3307.48) and 3307.70 (3307.701); to enact new
section 3307.70 and section 3307.143; and to
repeal sections 3307.54, 3307.61, 3307.741,
3307.88, 3307.881, and 3307.882 of the Revised
Code to revise the law governing the State
Teachers Retirement System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3305.06, 3307.01, 3307.031, 3307.04,
3307.044, 3307.061, 3307.14, 3307.142, 3307.20, 3307.214, 3307.25,
3307.251, 3307.252, 3307.26, 3307.28, 3307.33, 3307.35, 3307.351,
3307.352, 3307.371, 3307.39, 3307.391, 3307.42, 3307.46, 3307.47,
3307.50, 3307.501, 3307.51, 3307.512, 3307.52, 3307.53, 3307.56,
3307.561, 3307.562, 3307.563, 3307.57, 3307.58, 3307.59, 3307.60,
3307.62, 3307.63, 3307.631, 3307.64, 3307.66, 3307.661, 3307.67,
3307.671, 3307.694, 3307.71, 3307.711, 3307.712, 3307.72, 3307.73,
3307.74, 3307.75, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763,
3307.764, 3307.77, 3307.771, 3307.78, 3307.79, 3307.80, 3307.81,
3307.811, 3307.812, 3307.83, 3307.84, 3307.86, 3307.87, 3307.89,
3307.98, and 3313.975 be amended; sections 3307.64 (3307.48) and
3307.70 (3307.701) be amended for the purpose of adopting new
section numbers as indicated in parentheses; and new section
3307.70 and section 3307.143 of the Revised Code be enacted to
read as follows:
Sec. 3305.06. (A) Each electing employee shall contribute an
amount, which shall be a certain percentage of the employee's
compensation, to the provider of the investment option the
employee has selected. This percentage shall be the percentage the
electing employee would have otherwise been required to contribute
to the state retirement system that applies to the employee's
position, except that the percentage shall not be less than three
per cent. Employee contributions under this division may be
treated as employer contributions in accordance with Internal
Revenue Code 414(h).
(B) Each public institution of higher education employing an
electing employee shall contribute a percentage of the employee's
compensation to the provider of the investment option the employee
has selected. This percentage shall be equal to the percentage
that the public institution of higher education would otherwise
contribute on behalf of that employee to the state retirement
system that would otherwise cover that employee's position, less
the percentage contributed by the public institution of higher
education under division (D) of this section.
(C)(1) In no event shall the amount contributed by the
electing employee pursuant to division (A) of this section and on
the electing employee's behalf pursuant to division (B) of this
section be less than the amount necessary to qualify the plan as a
state retirement system pursuant to Internal Revenue Code
3121(b)(7) and the regulations adopted thereunder.
(2) The full amount of the electing employee's contribution
under division (A) of this section and the full amount of the
employer's contribution made on behalf of that employee under
division (B) of this section shall be paid to the appropriate
provider for application to the electing employee's investment
option.
(D) Each public institution of higher education employing an
electing employee shall contribute on behalf of that employee to
the state retirement system that otherwise applies to the electing
employee's position a percentage of the electing employee's
compensation to mitigate any negative financial impact of the
alternative retirement program on the state retirement system. The
percentage shall be six per cent, except that the percentage may
be adjusted by the Ohio retirement study council to reflect the
determinations made by actuarial studies conducted under section
171.07 of the Revised Code. Any adjustment shall become effective
on the first day of the second month following submission of the
actuarial study to the Ohio board of regents under section 171.07
of the Revised Code.
Contributions on behalf of an electing employee shall
continue in accordance with this division until the occurrence of
the following:
(1) If the electing employee would be subject to Chapter 145.
of the Revised Code had the employee not made an election pursuant
to section 3305.05 or 3305.051 of the Revised Code, until the
unfunded actuarial accrued liability for all benefits, except
health care benefits provided under section 145.325 or 145.58 of
the Revised Code and benefit increases provided after March 31,
1997, is fully amortized, as determined by the annual actuarial
valuation prepared under section 145.22 of the Revised Code;
(2) If the electing employee would be subject to Chapter
3307. of the Revised Code had the employee not made an election
pursuant to section 3305.05 or 3305.051 of the Revised Code, until
the unfunded actuarial accrued liability for all benefits, except
health care benefits provided under section 3307.39 or 3307.61 of
the Revised Code and benefit increases provided after March 31,
1997, is fully amortized, as determined by the annual actuarial
valuation prepared under section 3307.51 of the Revised Code;
(3) If the electing employee would be subject to Chapter
3309. of the Revised Code had the employee not made an election
pursuant to section 3305.05 or 3305.051 of the Revised Code, 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 provided after March 31,
1997, is fully amortized, as determined by the annual actuarial
valuation prepared under section 3309.21 of the Revised Code.
Sec. 3307.01. As used in this chapter:
(A) "Employer" means the board of education, school district,
governing authority of any community school established under
Chapter 3314. of the Revised Code, a science, technology,
engineering, and mathematics school established under Chapter
3326. of the Revised Code, college, university, institution, or
other agency within the state by which a teacher is employed and
paid.
(B) "Teacher" means all of the following:
(1) Any person paid from public funds and employed in the
public schools of the state under any type of contract described
in section 3311.77 or 3319.08 of the Revised Code in a position
for which the person is required to have a license issued pursuant
to sections 3319.22 to 3319.31 of the Revised Code;
(2) Any person employed as a teacher by a community school or
a science, technology, engineering, and mathematics school
pursuant to Chapter 3314. or 3326. of the Revised Code;
(3) Any person having a license issued pursuant to sections
3319.22 to 3319.31 of the Revised Code and employed in a public
school in this state in an educational position, as determined by
the state board of education, under programs provided for by
federal acts or regulations and financed in whole or in part from
federal funds, but for which no licensure requirements for the
position can be made under the provisions of such federal acts or
regulations;
(4) Any person having a license issued pursuant to sections
3319.22 to 3319.31 of the Revised Code and performing services
that are funded under section 3317.06 of the Revised Code and
provided to students attending nonpublic schools, without regard
to whether the services are performed in a public school and
whether the person is employed under a contract with a third
party;
(5) Any other teacher or faculty member employed in any
school, college, university, institution, or other agency wholly
controlled and managed, and supported in whole or in part, by the
state or any political subdivision thereof, including Central
state university, Cleveland state university, and the university
of Toledo;
(5)(6) The educational employees of the department of
education, as determined by the state superintendent of public
instruction.
In all cases of doubt, the state teachers retirement board
shall determine whether any person is a teacher, and its decision
shall be final.
"Teacher" does not include any eligible employee of a public
institution of higher education, as defined in section 3305.01 of
the Revised Code, who elects to participate in an alternative
retirement plan established under Chapter 3305. of the Revised
Code.
(C) "Member" means any person included in the membership of
the state teachers retirement system, which shall consist of all
teachers and contributors as defined in divisions (B) and (D) of
this section and all disability benefit recipients, as defined in
section 3307.50 of the Revised Code. However, for purposes of this
chapter, the following persons shall not be considered members:
(1) A student, intern, or resident who is not a member while
employed part-time by a school, college, or university at which
the student, intern, or resident is regularly attending classes;
(2) A person denied membership pursuant to section 3307.24 of
the Revised Code;
(3) An other system retirant, as defined in section 3307.35
of the Revised Code, or a superannuate;
(4) An individual employed in a program established pursuant
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29
U.S.C.A. 1501;
(5) The surviving spouse of a member or retirant if the
surviving spouse's only connection to the retirement system is an
account in an STRS defined contribution plan.
(D) "Contributor" means any person who has an account in the
teachers' savings fund or defined contribution fund, except that
"contributor" does not mean a member or retirant's surviving
spouse with an account in an STRS defined contribution plan.
(E) "Beneficiary" means any person eligible to receive, or in
receipt of, a retirement allowance or other benefit provided by
this chapter.
(F) "Year" means the year beginning the first day of July and
ending with the thirtieth day of June next following, except that
for the purpose of determining final average salary under the plan
described in sections 3307.50 to 3307.79 of the Revised Code,
"year" may mean the contract year.
(G) "Local district pension system" means any school teachers
pension fund created in any school district of the state in
accordance with the laws of the state prior to September 1, 1920.
(H) "Employer contribution" means the amount paid by an
employer, as determined by the employer rate, including the normal
and deficiency rates, contributions, and funds wherever used in
this chapter.
(I) "Five years of service credit" means employment covered
under this chapter and employment covered under a former
retirement plan operated, recognized, or endorsed by a college,
institute, university, or political subdivision of this state
prior to coverage under this chapter.
(J) "Actuary" means the an actuarial consultant to
professional contracted with or employed by the state teachers
retirement board, who shall be either of the following:
(1) A member of the American academy of actuaries;
(2) A firm, partnership, or corporation of which at least one
person is a member of the American academy of actuaries.
(K) "Fiduciary" means a person who does any of the following:
(1) Exercises any discretionary authority or control with
respect to the management of the system, or with respect to the
management or disposition of its assets;
(2) Renders investment advice for a fee, direct or indirect,
with respect to money or property of the system;
(3) Has any discretionary authority or responsibility in the
administration of the system.
(L)(1) Except as provided in this division, "compensation"
means all salary, wages, and other earnings paid to a teacher by
reason of the teacher's employment, including compensation paid
pursuant to a supplemental contract. The salary, wages, and other
earnings shall be determined prior to determination of the amount
required to be contributed to the teachers' savings fund or
defined contribution fund under section 3307.26 of the Revised
Code and without regard to whether any of the salary, wages, or
other earnings are treated as deferred income for federal income
tax purposes.
(2) Compensation does not include any of the following:
(a) Payments for accrued but unused sick leave or personal
leave, including payments made under a plan established pursuant
to section 124.39 of the Revised Code or any other plan
established by the employer;
(b) Payments made for accrued but unused vacation leave,
including payments made pursuant to section 124.13 of the Revised
Code or a plan established by the employer;
(c) Payments made for vacation pay covering concurrent
periods for which other salary, compensation, or benefits under
this chapter or Chapter 145. or 3309. of the Revised Code are
paid;
(d) Amounts paid by the employer to provide life insurance,
sickness, accident, endowment, health, medical, hospital, dental,
or surgical coverage, or other insurance for the teacher or the
teacher's family, or amounts paid by the employer to the teacher
in lieu of providing the insurance;
(e) Incidental benefits, including lodging, food, laundry,
parking, or services furnished by the employer, use of the
employer's property or equipment, and reimbursement for
job-related expenses authorized by the employer, including moving
and travel expenses and expenses related to professional
development;
(f) Payments made by the employer in exchange for a member's
waiver of a right to receive any payment, amount, or benefit
described in division (L)(2) of this section;
(g) Payments by the employer for services not actually
rendered;
(h) Any amount paid by the employer as a retroactive increase
in salary, wages, or other earnings, unless the increase is one of
the following:
(i) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for teaching and not designated for being an
administrator issued under section 3319.22 of the Revised Code
that is paid in accordance with uniform criteria applicable to all
members employed by the board in positions requiring the licenses;
(ii) A retroactive increase paid to a member employed by a
school district board of education in a position that requires a
license designated for being an administrator issued under section
3319.22 of the Revised Code that is paid in accordance with
uniform criteria applicable to all members employed by the board
in positions requiring the licenses;
(iii) A retroactive increase paid to a member employed by a
school district board of education as a superintendent that is
also paid as described in division (L)(2)(h)(i) of this section;
(iv) A retroactive increase paid to a member employed by an
employer other than a school district board of education in
accordance with uniform criteria applicable to all members
employed by the employer.
(i) Payments made to or on behalf of a teacher that are in
excess of the annual compensation that may be taken into account
by the retirement system under division (a)(17) of section 401 of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
401(a)(17), as amended. For a teacher who first establishes
membership before July 1, 1996, the annual compensation that may
be taken into account by the retirement system shall be determined
under division (d)(3) of section 13212 of the "Omnibus Budget
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.
(j) Payments made under division (B), (C), or (E) of section
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill
No. 3 of the 119th general assembly, Section 3 of Amended
Substitute Senate Bill No. 164 of the 124th general assembly, or
Amended Substitute House Bill No. 405 of the 124th general
assembly;
(k) Anything of value received by the teacher that is based
on or attributable to retirement or an agreement to retire;
(l) Any amount paid by the employer as a retroactive payment
of earnings, damages, or back pay pursuant to a court order,
court-adopted settlement agreement, or other settlement agreement,
unless the retirement system receives both of the following:
(i) Teacher and employer contributions under sections 3307.26
and 3307.28 of the Revised Code, plus interest compounded annually
at a rate determined by the board, for each year or portion of a
year for which amounts are paid under the order or agreement;
(ii) Teacher and employer contributions under sections
3307.26 and 3307.28 of the Revised Code, plus interest compounded
annually at a rate determined by the board, for each year or
portion of a year not subject to division (L)(2)(l)(i) of this
section for which the board determines the teacher was improperly
paid, regardless of the teacher's ability to recover on such
amounts improperly paid.
(3) The retirement board shall determine by rule both of the
following:
(a) Whether particular forms of earnings are included in any
of the categories enumerated in this division;
(b) Whether any form of earnings not enumerated in this
division is to be included in compensation.
Decisions of the board made under this division shall be
final.
(M) "Superannuate" means both of the following:
(1) A former teacher receiving from the system a retirement
allowance under section 3307.58 or 3307.59 of the Revised Code;
(2) A former teacher receiving a benefit from the system
under a plan established under section 3307.81 of the Revised
Code, except that "superannuate" does not include a former teacher
who is receiving a benefit based on disability under a plan
established under section 3307.81 of the Revised Code.
For purposes of sections 3307.35 and 3307.353 of the Revised
Code, "superannuate" also means a former teacher receiving from
the system a combined service retirement benefit paid in
accordance with section 3307.57 of the Revised Code, regardless of
which retirement system is paying the benefit.
(N) "STRS defined benefit plan" means the plan described in
sections 3307.50 to 3307.79 of the Revised Code.
(O) "STRS defined contribution plan" means the plans
established under section 3307.81 of the Revised Code and includes
the STRS combined plan under that section.
Sec. 3307.031. The state teachers retirement system shall
consist of the STRS defined benefit plan described in sections
3307.50 to 3307.79 and the one or more plans established under
section 3307.81 of the Revised Code STRS defined contribution
plan.
Sec. 3307.04. The general administration and the management
of the state teachers retirement system is hereby vested in the
state teachers retirement board, which shall adopt rules necessary
for the fulfillment of its duties and responsibilities under
Chapter 3307. of the Revised Code. The board shall adopt policies
for the operation of the system, and the investment of funds as
provided by section 3307.15 of the Revised Code, and may authorize
its administrative officers, or committees composed of board
members, to act for the board in accord with such policies and
subject to subsequent approval by the board.
The board may take all appropriate action to avoid payment by
the system or its members of federal or state income taxes on
contributions to the system or amounts earned on such
contributions and to comply with any plan qualification
requirements, including those on distributions, established under
Title 26 of the United States Code.
The attorney general shall prescribe procedures for the
adoption of rules authorized under this chapter, consistent with
the provision of section 111.15 of the Revised Code under which
all rules shall be filed in order to be effective. Such procedures
shall establish methods by which notice of proposed rules is given
to interested parties and rules adopted by the board published and
otherwise made available. When it files a rule with the joint
committee on agency rule review pursuant to section 111.15 of the
Revised Code, the board shall submit to the Ohio retirement study
council a copy of the full text of the rule, and if applicable, a
copy of the rule summary and fiscal analysis required by division
(B) of section 127.18 of the Revised Code.
All rules adopted pursuant to this chapter, prior to August
20, 1976, shall be published and made available to interested
parties by January 1, 1977.
Sec. 3307.044. The state teachers retirement board shall
appoint a committee to oversee the selection of an internal
auditor. The committee shall select one or more persons for
employment as an internal auditor. The board shall employ the
person or persons selected by the committee.
The committee shall consist of the following board members:
one retirant member, one contributing member, and one ex officio
member, and any additional board members appointed to the
committee by the board. The committee shall annually prepare and
submit to the Ohio retirement study council a report of its
actions during the preceding year.
Sec. 3307.061. (A) The office of a contributing member or
retired teacher member of the state teachers 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 contributing or retired teacher
member of the state teachers retirement board.
(B) A member of the state teachers 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 a contributing member of the
board, the complaint must be signed by a number of contributing
members of the retirement system that equals at least the
following and must include signatures of at least twenty
contributing members residing in at least five different counties:
(a) If the contributing member was most recently elected in
accordance with division (A) of section 3307.06 of the Revised
Code, ten per cent of the number of contributing members of the
system who voted in that election;
(b) If the contributing member was most recently elected
under division (D) of section 3307.06 of the Revised Code or took
office in accordance with section 3307.071 of the Revised Code,
ten per cent of the number of contributing members of the system
who voted in the most recent election held in accordance with
division (A) of section 3307.06 of the Revised Code for that
contributing member position on the board.
(2) If the complaint is against a retired teacher member of
the board, the complaint must be signed by a number of former
members of the system who are superannuates, as defined in section
3307.01 of the Revised Code, that equals at least the following
and must include signatures of at least twenty retired teacher
members residing in at least five different counties:
(a) If the retired teacher member was most recently elected
in accordance with division (C) of section 3307.06 of the Revised
Code, ten per cent of the number of former members of the system
who voted in that election;
(b) If the retired teacher member was most recently elected
under division (D) of section 3307.06 of the Revised Code or took
office in accordance with section 3307.071 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
(B) of section 3307.06 of the Revised Code for that retired
teacher member position on the board.
(D) The clerk of the court of common pleas in which a
complaint against a member of the state teachers retirement board
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. 3307.14. The state teachers retirement board shall be
the trustee of certain funds hereby created as follows:
(A) The "teachers' savings fund" is the fund in which shall
be accumulated the contributions deducted from the compensation of
teachers participating in the STRS defined benefit plan described
in sections 3307.50 to 3307.79 of the Revised Code, as provided by
section 3307.26 of the Revised Code, together with the interest
credited thereon. Such accumulated contributions refunded upon
withdrawal, or payable to an estate or beneficiary as provided in
this chapter, shall be paid from this fund. Any accumulated
contributions forfeited by the failure of a contributor, an
estate, or a beneficiary to claim the same shall be transferred
from this fund to the guarantee fund. The accumulated
contributions of a member or of a teacher who qualifies for a
benefit under section 3307.35 of the Revised Code shall be
transferred at the member's or teacher's retirement from the
teachers' savings fund to the annuity and pension reserve fund.
The accumulated contributions of a member who dies prior to
superannuation retirement that are forfeited by the qualified
beneficiary in exchange for monthly survivor benefits, as provided
by section 3307.66 of the Revised Code, shall be transferred to
the survivors' benefit fund. The accumulated contributions of a
superannuate or other system retirant as defined in section
3307.35 of the Revised Code shall be transferred to the survivors'
benefit fund for payment of a lump-sum benefit to a beneficiary as
provided in that section. As used in this division, "accumulated
contributions" has the same meaning as in section 3307.50 of the
Revised Code.
(B) The "employers' trust fund" is the fund to which the
employer contribution made on behalf of a teacher participating in
the STRS defined benefit plan
described in sections 3307.50 to
3307.79 of the Revised Code shall be credited and in which shall
be accumulated the reserves held in trust for the payment of all
pensions or other benefits provided by sections 3307.35, 3307.58,
3307.59, 3307.60, 3307.63, 3307.631, 3307.66, 3307.6912, and
3307.98 of the Revised Code, to teachers retiring or receiving
disability benefits in the future or to their qualified
beneficiaries, and from which the reserves for such pensions and
other benefits shall be transferred to the annuity and pension
reserve fund and to the survivors' benefit fund. The balances as
of August 31, 1957, in the employers accumulation fund shall be
transferred to this fund. As of September 1, 1957, an additional
amount shall be transferred from the employers' trust fund to the
annuity and pension reserve fund in the amount required to
complete the funding of the prior service, as defined in section
3307.50 of the Revised Code, and military service pensions then
payable.
(C) The "annuity and pension reserve fund" is the fund from
which shall be paid all annuities, pensions, and disability
benefits under the STRS defined benefit plan described in section
3307.50 to 3307.79 and annuities payable under section 3307.352 of
the Revised Code for which reserves have been transferred from the
teachers' savings fund and the employers' trust fund.
(D) The "survivors' benefit fund" is the fund from which
shall be paid the survivors' benefits provided by section 3307.66
of the Revised Code and the lump sum payment to beneficiaries as
provided in section 3307.35 of the Revised Code, and to which
shall be transferred from the employers' trust fund the amount
required to fund all liabilities as of the end of each year.
(E) The "guarantee fund" is the fund from which interest is
transferred and credited on the amounts in the funds described in
divisions (A), (B), (C), and (D) of this section, and is a
contingent fund from which the special requirements of said funds
may be paid by transfer from this fund. All income derived from
the investment of funds by the state teachers retirement board as
trustee under section 3307.15 of the Revised Code, together with
all gifts and bequests, or the income therefrom, shall be paid
into this fund.
Any deficit occurring in any other fund that will not be
covered by payments to that fund, as otherwise provided in this
chapter, shall be paid by transfers of amounts from the guarantee
fund to such fund or funds. Should the amount in the guarantee
fund be insufficient at any time to meet the amounts payable
therefrom, the amount of such deficiency, with regular interest,
shall be paid by an additional employer rate of contribution as
determined by the actuary and shall be approved by the board, and
the amount of such additional employer contribution shall be
credited to the guarantee fund.
The board may accept gifts and bequests. Any funds that may
come into the possession of the board in this manner or that may
be transferred from the teachers' savings fund by reason of lack
of a claimant, or any surplus in any fund created in divisions (A)
to (F) of this section, or any other funds whose disposition is
not otherwise provided for, shall be credited to the guarantee
fund.
(F) The expense fund is the fund from which shall be paid the
expenses for the administration and management of the state
teachers retirement system as provided by this chapter.
(G) The "defined contribution fund" is the fund in which
shall be accumulated the contributions deducted from the
compensation of teachers participating in a an STRS defined
contribution plan established under section 3307.81 of the Revised
Code, as provided in section 3307.26 of the Revised Code, together
with any earnings and employer contributions credited thereon.
(H) The "health care fund" is the fund in which shall be
accumulated any amounts allocated by the board for health care
coverage described in section 3307.39 of the Revised Code,
together with any earnings credited thereon. The fund shall be
established under 26 U.S.C. 401(h) as a separate account. It is
the fund from which shall be paid health care coverage made
available under section 3307.39 of the Revised Code, except that
payments from the fund shall be limited as provided by 26 U.S.C.
401(h).
Sec. 3307.142. (A) Interest compounded annually shall be
credited to the accounts of members participating in the STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code and to the various funds listed in divisions (A)
to (F) of section 3307.14 of the Revised Code, and shall be
assumed in determining actuarial factors, at rates recommended by
the actuary and approved by the state teachers retirement board,
but not less than three and twenty-five hundredths per cent
effective September 1, 1965, except as follows:
(1) For the years stated the rates shall be as follows:
|
Years |
|
Rates |
|
|
|
9-1-1920/8-31-1955 |
|
4.00% |
|
|
|
9-1-1955/8-31-1963 |
|
3.00 |
|
|
|
9-1-1963/8-31-1965 |
|
2.25 |
|
|
(2) Subsequent to August 31, 1959, interest shall be credited
to accounts only at retirement.
(3) If the amount of the account at retirement is not a
factor in determining the allowance, interest shall not be
credited to such account after September 1, 1964.
(4) The actuary shall estimate the amount of interest reserve
required in the teachers savings fund for credit to accounts when
interest is to be a factor in determining the allowance, and the
balance of the interest reserve in such fund shall be transferred
to the employers trust fund as of September 1, 1965.
(B) Interest shall be credited to the accounts of members
participating in a an STRS defined contribution plan established
under section 3307.81 of the Revised Code and to the defined
contribution fund in accordance with that plan.
Sec. 3307.143. If the state teachers retirement board
discontinues health care coverage authorized under section 3307.39
of the Revised Code, on satisfaction of all liabilities for health
care coverage at the time of the discontinuance of coverage, the
board shall transfer any surplus in the health care fund
established under division (H) of section 3307.14 of the Revised
Code in a fair and appropriate manner to the employers that have
contributed to the fund.
Sec. 3307.20. (A) As used in this section:
(1) "Personal history record" means information maintained by
the state teachers retirement 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 state teachers retirement system, or other
information the board determines to be confidential.
(2) "Retirant" has the same meaning as in section 3307.50 of
the Revised Code and includes any former member receiving a
benefit under an STRS defined contribution plan.
(B) The records of the board shall be open to public
inspection, except for the following, which shall be excluded,
except with the written authorization of the individual concerned:
(1) The individual's personal records provided for in section
3307.23 of the Revised Code;
(2) The individual's personal history record;
(3) Any information identifying, by name and address, the
amount of a monthly allowance or benefit paid to the individual.
(C)(1) All medical reports and recommendations received by
the board from a member, member's physician, board-assigned
physician, or other entity providing medical reports and
recommendations to the board under sections 3307.48, 3307.62,
3307.64, and 3307.66 of the Revised Code are privileged, except as
follows:
(1)(a) Copies of medical reports or recommendations shall be
made available by the board to the personal physician, attorney,
or authorized agent of the individual concerned upon written
release received from the individual or the individual's agent,
or, when necessary for the proper administration of the fund, to
the board assigned physician.
(2)(b) Documentation required by section 2929.193 of the
Revised Code shall be provided to a court holding a hearing under
that section.
(2) No medical report or recommendation received by the board
under section 3307.48, 3307.62, or 3307.66 of the Revised Code
shall be released to the individual concerned or considered a
medical record generated and maintained by a health care provider
in the process of establishing a therapeutic relationship.
(D) Any person who is a member or 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 request of a person in any one year.
(E) Notwithstanding the exceptions to public inspection in
division (B) of this section, the board may furnish the following
information:
(1) If a member, former member, retirant, contributor, or
former contributor 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 complete 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 member 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
a contributing member or retired teacher 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
3307.373 of the Revised Code to the prosecutor assigned to the
case.
(F) 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. 3307.214. On receipt of notice under section 3307.212
of the Revised Code of the employment of a new teacher, the state
teachers retirement system shall inform the teacher of the
requirements of section 3307.25 of the Revised Code and the
provisions of sections 3307.88 and 3307.881 of the Revised Code.
Sec. 3307.25. (A) An individual who becomes a member of the
state teachers retirement system on or after the date on which the
state teachers retirement board establishes
a an STRS defined
contribution plan under section 3307.81 of the Revised Code shall
make an election under this section. Not later than one hundred
eighty days after the date on which employment begins, the
individual shall elect to participate either in the STRS defined
benefit plan described in sections 3307.50 to 3307.79 of the
Revised Code or one of the STRS defined contribution plans
established under section 3307.81 of the Revised Code. If a form
evidencing an election under this section is not on file with the
system at the end of the one-hundred-eighty-day period, the
individual is deemed to have elected to participate in the STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code.
(B) An election under this section shall be made in writing
on a form provided by the system and filed with the system.
(C) An election under this section shall take effect on the
date employment began and, except as provided in division (E) of
this section 3307.88 of the Revised Code, is irrevocable at the
end of the election period described in division (A) of this
section.
(D) An individual is ineligible to make an election under
this section if one of the following applies:
(1) At the time employment begins, the individual is already
a member or contributor participating in the STRS defined benefit
plan described in sections 3307.50 to 3307.79 of the Revised Code,
a former member who has previously made an election under division
(E) of this section or section 3307.251 of the Revised Code, a
superannuate of the system, or an other system retirant, as
defined in section 3307.35 of the Revised Code;
(2) An election to participate in an alternative retirement
plan under section 3305.05 or 3305.051 of the Revised Code is in
effect for employment covered by the system.
(E) A member who elected under division (A) of this section
to participate in an STRS defined contribution plan may make an
election to cease participation in the plan elected and
participate in the STRS defined benefit plan or in another STRS
defined contribution plan. The election must be made, on a form
provided by the system, not later than the first day of June
preceding the first day of July following the fourth anniversary
of the commencement of the member's participation in the original
plan.
An election made under this division takes effect on the
first day of July following the election.
(F)(1) When a member elects under division (E) of this
section to change from an STRS defined contribution plan to the
STRS defined benefit plan the system shall do all of the
following:
(a) Transfer from the member's account in the defined
contribution fund to an account in the teachers' savings fund the
sum of the following:
(i) An amount equal to the contributions made pursuant to
section 3307.26 of the Revised Code;
(ii) Any supplemental contributions made by the member;
(iii) Any earnings from supplemental contributions.
(b) Transfer from the defined contribution fund to the
employers' trust fund the sum of the following:
(i) An amount equal to the contributions made pursuant to
section 3307.28 of the Revised Code;
(ii) Any amount remaining in the member's account in the
defined contribution fund after the transfers described in
divisions (F)(1)(a) and (b)(i) of this section are made.
(c) Grant service credit in accordance with rules adopted
under section 3307.53 of the Revised Code.
(2) If the amount in the member's account in the defined
contribution fund is less than the amount the member would have
had in an account in the teachers' savings fund had the member
elected to participate in the STRS defined benefit plan, the
system shall transfer from the guarantee fund established under
section 3307.14 of the Revised Code to the teachers' savings fund
the amount necessary to make the transfer required by division
(F)(1)(a)(i) of this section.
(3) Except for service credit granted under division
(F)(1)(c) of this section, a member who begins participation in
the STRS defined benefit plan pursuant to division (E) of this
section shall have the same rights and privileges under the plan
as a member who never had made an election to participate in an
STRS defined contribution plan.
Sec. 3307.251. As used in this section, "accumulated
contributions" and "total service credit" have the same meanings
as in section 3307.50 of the Revised Code.
(A) A member of the state teachers retirement system who, as
of the thirtieth day of June immediately preceding the date on
which the system establishes a an STRS defined contribution plan
under section 3307.81 of the Revised Code, has less than five
years of total service credit is eligible to make an election
under this section.
Not later than one hundred eighty days after the day the
state teachers retirement board first establishes one or more
plans under section 3307.81 of the Revised Code an STRS defined
contribution plan, an eligible member may elect to participate in
such a plan established under that section. If an election is not
made, a member to whom this section applies is deemed to have
elected to continue participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code.
(B) An election under this section shall be made in writing
on a form provided by the system and filed with the system.
(C) On receipt of an election under this section, the system
shall do both of the following:
(1) Credit to the account of the member in the defined
contribution fund the accumulated contributions standing to the
member's credit in the teachers' savings fund, plus interest at a
rate determined by the board;
(2) Cancel all service credit and eligibility for any
payment, benefit, or right under the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code.
(D) An election under this section shall be irrevocable at
the end of the election period described in division (A) of this
section.
Sec. 3307.252. A member of the state teachers retirement
system who elects to participate in a an STRS defined contribution
plan established under section 3307.81 of the Revised Code shall
be ineligible for any benefit or payment under
sections 3307.50 to
3307.79 of the Revised Code the STRS defined benefit plan and,
except as provided in section 3307.88 3307.25 of the Revised Code,
shall be forever barred from claiming or purchasing service credit
with the system or any other Ohio state retirement system, as
defined in section 3307.741 of the Revised Code, for service
covered by the election.
Sec. 3307.26. (A) Each teacher shall contribute eight a
certain per cent of the teacher's earned compensation, except that
the state teachers retirement board may raise the contribution
rate to a rate not greater than ten per cent of the teacher's
earned compensation. For the per cent shall be not greater than
fourteen per cent of the teacher's compensation. The per cent
shall be as follows:
(1) For compensation earned not later than June 30, 2013, ten
per cent;
(2) For compensation earned on or after July 1, 2013, but not
later than June 30, 2014, eleven per cent;
(3) For compensation earned on or after July 1, 2014, but not
later than June 30, 2015, twelve per cent;
(4) For compensation earned on or after July 1, 2015, but not
later than June 30, 2016, thirteen per cent;
(5) For compensation earned on or after July 1, 2016,
fourteen per cent;
(6) For compensation earned on or after July 1, 2017, the
state teachers retirement board may reduce the rate to less than
fourteen per cent if the board's actuary determines in its annual
actuarial valuation required by section 3307.51 of the Revised
Code or in other evaluations conducted under that section that a
reduction in the rate does not materially impair the fiscal
integrity of the retirement system.
(B) For teachers participating in the STRS defined benefit
plan described in sections 3307.50 to 3307.79 of the Revised Code,
contributions shall be deposited in the teachers' savings fund.
For teachers participating in a an STRS defined contribution plan
established under section 3307.81 of the Revised Code,
contributions shall be deposited in the defined contribution fund.
Contributions made pursuant to this section shall not exceed the
limits established by section 415 of the "Internal Revenue Code of
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(C) The contribution for all teachers shall be deducted by
the employer on each payroll in an amount equal to the applicable
per cent of the teachers' paid compensation for such payroll
period or other period as the board may approve. All contributions
on paid compensation for teachers participating in plans
established under section 3307.81 of the Revised Code an STRS
defined contribution plan shall be remitted at intervals required
by the state teachers retirement system under section 3307.86 of
the Revised Code. All contributions on earned compensation for
teachers participating in the STRS defined benefit plan described
in sections 3307.50 to 3307.79 of the Revised Code shall be
remitted to the state teachers retirement system by the thirtieth
day of June of each year. Each school district shall encumber
sufficient moneys by the thirtieth day of June of each year to
account for the difference, if any, that may exist between
contributions that would be withheld based upon compensation
earned by a teacher during the year ending the thirtieth day of
June and the contributions withheld based upon compensation paid
to the teacher for the year. Deductions from payroll for
contributions under this section, on an annual basis, shall not
exceed eight per cent or other percentage established by the board
authorized by this section.
(D) At retirement under the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code, or
upon a member's death prior to retirement under that plan, if
contributions have been made after September 1, 1959, in excess of
the contributions normally required to provide the retirement or
survivor benefit, the excess contributions may be refunded to the
member, to the member's beneficiary, or to the member's estate in
a lump sum, or may be used to provide additional income.
(E) The board may determine with regard to any member
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code whether the limits
established by division
(C)(D) of section 3307.58 of the Revised
Code have resulted in exclusion from use in the calculation of
benefits under section 3307.58, 3307.59, or 3307.60 of the Revised
Code of any compensation on which contributions have been made
under this section. The board may adopt rules in accordance with
section 111.15 of the Revised Code providing for the disposition
of contributions attributable to such compensation and may dispose
of the contributions in accordance with those rules. Any
disposition of contributions made by the board in accordance with
the rules shall be final.
(F) The deductions under this section shall be made even
though the minimum compensation provided by law for any teacher
shall be reduced thereby. Every teacher shall be deemed to consent
to the deductions made. Payment less the deductions shall be a
complete discharge and acquittance of all claims and demands for
the services rendered by the person during the period covered by
the payment.
(G) Additional deposits may be made to a member's account in
the teachers' savings fund or defined contribution fund, subject
to rules of the board. 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 account. The deposits may be refunded to the
beneficiary or estate if the member dies before retirement.
Sec. 3307.28. Each employer shall pay annually to the state
teachers retirement system an amount certified by the secretary
which shall be a certain per cent of the earnable compensation of
all members, and which shall be known as the "employer
contribution." For members participating in the STRS defined
benefit plan described in sections 3307.50 to 3307.79 of the
Revised Code, the employer contribution shall be deposited into
the employers' trust fund. For members participating in a an STRS
defined contribution plan established under section 3307.81 of the
Revised Code, the employer contribution shall be deposited into
the defined contribution fund in accordance with the plan selected
by the member, less the amount transferred under section 3307.84
of the Revised Code.
The rate per cent of the contribution shall be fixed by the
actuary on the basis of the actuary's evaluation of the
liabilities of the system, not to exceed fourteen per cent, and
shall be approved by the state teachers retirement board. The
board may raise the rate per cent of the contribution to fourteen
per cent of the earnable compensation of all members. In making
such evaluation, the actuary shall use, as the actuarial
assumptions, such interest rates and mortality and other tables as
are adopted by the board. The actuary shall compute the percentage
of such earnable compensation, to be known as the "employer rate,"
required annually to fund the liability for all benefits under
sections 3307.50 to 3307.79 of the Revised Code the STRS defined
benefit plan, after deducting therefrom the benefits provided by
the member's accumulated contributions, as defined in section
3307.50 of the Revised Code, deposits, and other appropriations,
and to fund any deficiencies in the funds described in divisions
(A) to (F) of section 3307.14 of the Revised Code.
Sec. 3307.33. Membership in the state teachers retirement
system shall cease on occurrence of any of the following: receipt
of payment pursuant to section 3307.56 of the Revised Code or
under a an STRS defined contribution plan
established under
section 3307.81 of the Revised Code; retirement as provided in
sections 3307.58 and 3307.59 of the Revised Code or under a an
STRS defined contribution plan
established under section 3307.81
of the Revised Code; death; or denial of membership pursuant to
section 3307.24 of the Revised Code.
Sec. 3307.35. (A) As used in this section and section
3307.352 of the Revised Code, "other system retirant" means a both
of the following:
(1) A member or former member of the public employees
retirement system, Ohio police and fire pension fund, school
employees retirement system, state highway patrol retirement
system, or Cincinnati retirement system who is receiving from a
system of which the retirant is a member or former member age and
service or commuted age and service retirement, a benefit,
allowance, or distribution under a plan established under section
145.81 or 3309.81 of the Revised Code, or a disability benefit
from a system of which the retirant is a member or former member;
(2) A person who is participating or has participated in an
alternative retirement plan established under Chapter 3305. of the
Revised Code and is receiving a benefit, allowance, or
distribution under the plan.
(B) Subject to this section and section 3307.353 of the
Revised Code, a superannuate or other system retirant may be
employed as a teacher.
(C) A superannuate or other system retirant employed in
accordance with this section shall contribute to the state
teachers retirement system in accordance with section 3307.26 of
the Revised Code and the employer shall contribute in accordance
with sections 3307.28 and 3307.31 of the Revised Code. Such
contributions shall be received as specified in section 3307.14 of
the Revised Code. A superannuate or other system retirant employed
as a teacher is not a member of the state teachers retirement
system, does not have any of the rights, privileges, or
obligations of membership, except as provided in this section, and
is not eligible to receive health, medical, hospital, or surgical
benefits under section 3307.39 of the Revised Code for employment
subject to this section.
(D) The employer that employs a superannuate or other system
retirant shall notify the state teachers retirement board of the
employment not later than the end of the month in which the
employment commences. Any overpayment of benefits to a
superannuate by the retirement system resulting from an employer's
failure to give timely notice may be charged to the employer and
may be certified and deducted as provided in section 3307.31 of
the Revised Code.
(E) On receipt of notice from an employer that a person who
is an other system retirant has been employed, the state teachers
retirement system shall notify the state retirement system of
which the other system retirant was a member of such employment.
(F) A superannuate or other system retirant who has received
an allowance or benefit for less than two months when employment
subject to this section or section 3305.05 of the Revised Code
commences shall forfeit the allowance or benefit for any month the
superannuate or retirant is employed prior to the expiration of
such period.
The allowance or benefit forfeited each month shall
be equal to the monthly amount the superannuate or other system
retirant is eligible to receive under a single lifetime benefit
plan of payment described in section 3307.60 of the Revised Code.
Contributions shall be made to the retirement system from the
first day of such employment, but service and contributions for
that period shall not be used in the calculation of any benefit
payable to the superannuate or other system retirant, and those
contributions shall be refunded on the superannuate's or
retirant's death or termination of the employment. Contributions
made on compensation earned after the expiration of such period
shall be used in calculation of the benefit or payment due under
section 3307.352 of the Revised Code.
(G) On receipt of notice from the Ohio police and fire
pension fund, public employees retirement system, or school
employees retirement system of the re-employment of a
superannuate, the state teachers retirement system shall not pay,
or if paid shall recover, the amount to be forfeited by the
superannuate in accordance with section 145.38, 742.26, or
3309.341 of the Revised Code.
(H) If the disability benefit of an other system retirant
employed under this section is terminated, the retirant shall
become a member of the state teachers retirement system, effective
on the first day of the month next following the termination, with
all the rights, privileges, and obligations of membership. If
such
person the retirant, after the termination of the retirant's
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, school employees 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
defined in section 3307.50 of the Revised Code, as a state
teachers 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.
(I) This section does not affect the receipt of benefits by
or eligibility for benefits of any person who on August 20, 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.
(J) The state teachers retirement board may make the
necessary rules to carry into effect this section and to prevent
the abuse of the rights and privileges thereunder.
Sec. 3307.351. (A) As used in this section:
(1) In addition to the meaning in section 3307.01 of the
Revised Code, when appropriate "compensation" has the same meaning
as in section 3309.01 of the Revised Code.
(2) "Earnable salary" has the same meaning as in section
145.01 of the Revised Code.
(3) "STRS position" means a position for which a member of
the state teachers retirement system is making contributions to
the system.
(4) "Other state retirement system" means the public
employees retirement system or the school employees 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 Subject to division (E) of this section, a member of
the state teachers retirement system who holds two or more STRS
positions may retire under section 3307.57, 3307.58, or 3307.60 of
the Revised Code or under an STRS defined contribution plan 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 STRS position or positions.
(2) A Subject to division (E) of this section, a member of
the state teachers retirement system who also holds one or more
other positions covered by the other state retirement systems may
retire under section 3307.57, 3307.58, or 3307.60 of the Revised
Code or under an STRS defined contribution plan from the STRS
position and continue contributing to the other state retirement
systems if the annual compensation for the STRS 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 Subject to division (E) of this section, a member of
the state teachers retirement system who holds two or more STRS
positions and at least one other position covered by one of the
other state retirement systems may retire under section 3307.57,
3307.58, or 3307.60 of the Revised Code or under an STRS defined
contribution plan from one of the STRS positions and continue
contributing to the state teachers retirement system and the other
state retirement system if the annual compensation for the STRS
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) Subject to division (E) of this section, a member of the
state teachers retirement system who also holds one or more other
positions covered by the other state retirement systems may retire
under section 3307.57, 3307.58, or 3307.60 of the Revised Code or
under an STRS defined contribution plan from one of the other
state retirement system positions and continue contributing to the
state teachers retirement system if the annual compensation for
the other state retirement system position from which the member
is retiring is, at the time of retirement, greater than the annual
compensation for any of the positions for which the member is
continuing to make contributions.
(5) A member of the state teachers 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 3309.343 of the Revised Code
may continue to contribute to the state teachers retirement system
for an STRS position if the member held the position at the time
of retirement from the other state retirement system.
(5)(6) A member who contributes to the state teachers
retirement system in accordance with division (B)(1), (3), or (4),
or (5) of this section shall contribute in accordance with section
3307.26 of the Revised Code. The member's employer shall
contribute as provided in section 3307.28 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), or (4) 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), or (4) of this section is a retirant for all purposes of
this chapter, except that the member is not subject to section
3307.35 of the Revised Code for a position or positions for which
contributions continue under those divisions or division (B)(4)(5)
of this section.
(D) A retired member receiving a benefit under section
3307.352 of the Revised Code based on employment subject to this
section is not a member of the state teachers retirement system
and does not have any rights, privileges, or obligations of
membership. The retired member is a superannuate for purposes of
section 3307.35 of the Revised Code.
(E) Effective July 1, 2014, a member may continue to
contribute to the retirement system for another STRS position or
other state retirement system position under division (B)(1), (2),
(3), or (4) of this section only for those positions the member
continuously held for at least twelve consecutive months
immediately prior to retirement under section 3307.57, 3307.58, or
3307.60 of the Revised Code or an STRS defined contribution plan.
(F) The state teachers retirement board may adopt rules to
carry out this section.
Sec. 3307.352. For purposes of this section, "superannuate"
includes a member who retired under section 3307.351 of the
Revised Code.
(A) Except as provided in division (B)(3) of this section, a
superannuate or other system retirant who has made contributions
under section 3307.35 or 3307.351 of the Revised Code may file an
application with the state teachers retirement system for a
benefit consisting of a single life annuity. The annuity shall
have a reserve equal to the amount of the superannuate's or
retirant's accumulated contributions, as defined in section
3307.50 of the Revised Code, for the period of employment, other
than the contributions excluded pursuant to division (F) of
section 3307.35 of the Revised Code, and an amount determined by
the state teachers retirement board from the employers' trust
created by section 3307.14 of the Revised Code, plus interest
credited to the date of retirement at a rate of interest
determined by the board. The superannuate or other system retirant
shall elect either to receive the benefit as a monthly annuity for
life or a lump sum payment discounted to the present value using a
rate of interest determined by the board, except that if the
monthly annuity would be less than twenty-five dollars per month
the superannuate or retirant shall receive a lump sum payment.
A benefit payable under this division shall commence on the
first day of the month immediately following the latest of the
following:
(1) The last day for which compensation for all employment
as
a teacher subject to this section was paid;
(2) Attainment by the superannuate or other system retirant
of age sixty-five;
(3) If the superannuate or other system retirant was
previously employed under section 3307.35 or 3307.351 of the
Revised Code and previously received or is receiving a benefit
under this division, completion of a period of twelve months since
the effective date of the last benefit under this division.
(B)(1) A superannuate or other system retirant under age
sixty-five who has made contributions under section 3307.35 or
3307.351 of the Revised Code may file an application with the
state teachers retirement system for a return of those
contributions if both of the following conditions are met:
(a) The superannuate or retirant has terminated, for any
reason other than death, the employment for which the
contributions were made.
(b) If the superannuate or retirant received a return of
contributions under this division for a previous period of
employment under section 3307.35 or 3307.351 of the Revised Code,
twelve months have passed since the date the retirement system
returned the contributions.
(2) A return of contributions under this division shall
consist of the sum of the following:
(a) The contributions the superannuate or other system
retirant made under section 3307.35 or 3307.351 of the Revised
Code other than the contributions excluded under division (F) of
section 3307.35 of the Revised Code;
(b) Interest at a rate determined by the state teachers
retirement board credited to through the date that later of the
month the superannuate or retirant terminated the employment for
which the contributions are made or the date required by division
(B)(1)(b) of this section.
(3) Payment of a return of contributions under this division
shall be made on a date determined by the state teachers
retirement board but shall be not earlier than the later of the
first day of the first month following termination of employment
or the date required by division (B)(1)(b) of this section. The
payment cancels the superannuate or retirant's right to a benefit
under division (A) of this section for the service for which the
contributions were made.
(C)(1) If a superannuate or other system retirant who made
contributions under section 3307.35 or 3307.351 of the Revised
Code dies before receiving a benefit under division (A) of this
section or a return of contributions under division (B) of this
section, a lump sum payment shall be paid to the beneficiary
designated under division (D)(1) of section 3307.562 of the
Revised Code. The lump sum shall be calculated in accordance with
division (A) of this section, except that the interest shall be
credited as follows:
(a) If the superannuate or retirant was under age sixty-five
at the time of death, the interest shall be credited through the
month of death.
(b) If the superannuate or retirant was age sixty-five or
older at the time of death, the interest shall be credited through
the later of the month in which the superannuate or retirant
terminated the employment for which the contributions are made or
the month the superannuate or retirant attained age sixty-five.
(2) If at the time of death a superannuate or other system
retirant receiving a monthly annuity under division (A) of this
section has received less than the superannuate or retirant would
have received as a lump sum payment, the difference between the
amount received and the amount that would have been received as a
lump sum payment shall be paid to the superannuate's or retirant's
beneficiary designated under division (D)(1) of section 3307.562
of the Revised Code.
(D) No amount received under this section shall be included
in determining an additional benefit under section 3307.67 of the
Revised Code or any other post-retirement benefit increase.
Sec. 3307.371. (A) As used in this section, "alternate
payee," "benefit," "lump sum payment," "participant," and "public
retirement program" have the same meanings as in section 3105.80
of the Revised Code.
(B) On receipt of an order issued under section 3105.171 or
3105.65 of the Revised Code, the state teachers retirement system
shall determine whether the order meets the requirements of
sections 3105.80 to 3105.90 of the Revised Code. The system shall
retain in the participant's record an order the board determines
meets the requirements. Not later than sixty days after receipt,
the system shall return to the court that issued the order any
order the system determines does not meet the requirements.
(C) The system shall comply with an order retained under
division (B) of this section at the following times as
appropriate:
(1) If the participant has applied for or is receiving a
benefit or has applied for but not yet received a lump sum
payment, as soon as practicable;
(2) If the participant has not applied for a benefit or lump
sum payment, on application by the participant for a benefit or
lump sum payment.
(D) If the system transfers a participant's service credit or
contributions made by or on behalf of a participant to a public
retirement program that is not named in the order, the system
shall do both of the following:
(1) Notify the court that issued the order by sending to the
court a copy of the order and the name and address of the public
retirement program to which the transfer was made.
(2) Send a copy of the order to the public retirement program
to which the transfer was made.
(E) If it receives a participant's service credit or
contributions and a copy of an order as provided in division (D)
of this section, the system shall administer the order as if it
were the public retirement program named in the order.
(F) If a participant's benefit or lump sum payment is or will
be subject to more than one order described in section 3105.81 of
the Revised Code or to an order described in that section
3105.81
of the Revised Code and a withholding an order under section
3111.23 or 3113.21 issued in accordance with Chapter 3119., 3121.,
3123., or 3125. of the Revised Code, the system shall, after
determining that the amounts that are or will be withheld will
cause the benefit or lump sum payment to fall below the limits
described in section 3105.85 of the Revised Code, do all of the
following:
(1) Establish, in accordance with division (G) of this
section and subject to the limits described in section 3105.85 of
the Revised Code, the priority in which the orders are or will be
paid by the system in accordance with division (G) of this
section;
(2) Reduce the amount paid to an alternate payee based on the
priority established under division (F)(1) of this section;
(3) Notify, by regular mail, a participant and alternate
payee of any action taken under this division.
(G) A withholding or deduction notice issued under section
3111.23 or 3113.21 in accordance with Chapter 3119., 3121., 3123.,
or 3125. of the Revised Code or an order described in section
3115.32 of the Revised Code has priority over all other orders and
shall be complied with in accordance with child support
enforcement laws. All other orders are entitled to priority in
order of earliest retention by the system. The system is not to
retain an order that provides for the division of property unless
the order is filed in a court with jurisdiction in this state.
(H) The system is not liable in civil damages for loss
resulting from any action or failure to act in compliance with
this section.
Sec. 3307.39. (A) The state teachers retirement board may
enter into an agreement with insurance companies, health insuring
corporations, or government agencies authorized to do business in
the state for issuance of a policy or contract of health, medical,
hospital, or surgical benefits, or any combination thereof, for
those individuals receiving, under the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code,
service retirement or a disability or survivor benefit who
subscribe to the plan. Notwithstanding any other provision of this
chapter, the policy or contract may also include coverage for any
eligible individual's spouse and dependent children and for any of
the individual's sponsored dependents as the board considers
appropriate. If all or any portion of the policy or contract
premium is to be paid by any individual receiving service
retirement or a disability or survivor benefit, the individual
shall, by written authorization, instruct the board to deduct the
premium agreed to be paid by the individual to the companies,
corporations, or agencies.
The board may contract for coverage on the basis of part or
all of the cost of the coverage to be paid from appropriate funds
of the state teachers retirement system. The cost paid from the
funds of the system shall be included in the employer's
contribution rate provided by section 3307.28 of the Revised Code.
The board may enter into an agreement under this division for
coverage of recipients of benefits under a an STRS defined
contribution plan established under section 3307.81 of the Revised
Code if the plan selected includes health, medical, hospital, or
surgical benefits, or any combination thereof. The board may
contract for coverage on the basis that the cost of the coverage
will be paid by the recipient or by the plan to which the
recipient contributed under this chapter. The board may offer to
recipients plans that provide for different levels of coverage or
for prepayment of the cost of coverage.
The board may provide for self-insurance of risk or level of
risk as set forth in the contract with the companies,
corporations, or agencies, and may provide through the
self-insurance method specific benefits as authorized by the rules
of the board.
(B) The board shall may make a monthly payment to each
recipient of service retirement, or a disability or survivor
benefit under the STRS defined benefit plan described in sections
3307.50 to 3307.79 of the Revised Code who is eligible for
insurance enrolled in coverage under part B of the medicare
program established under Title XVIII of "The Social Security
Amendments of 1965," 79 Stat. 301 (1965), 42 U.S.C.A. 1395j, as
amended, and may make a monthly payment to a recipient of benefits
under a an STRS defined contribution plan established under
section 3307.81 of the Revised Code who is eligible for that
insurance coverage if the monthly payments are funded through the
plan selected by the recipient. The payment shall be the greater
of the following:
(1) Twenty-nine dollars and ninety cents;
(2) An amount determined by multiplying the board, which
shall not exceed ninety per cent of the basic premium for the
coverage by a percentage, not exceeding ninety per cent,
determined by multiplying the years of service used in calculating
the service retirement or benefit or, in the case of a recipient
of benefits under a plan established under section 3307.81 of the
Revised Code, the participant's years of service by a percentage
determined by the board not exceeding three per cent, except that
the amount shall not exceed the amount paid by the recipient.
At the request of the board, the recipient shall certify the
amount paid by the recipient for coverage described in this
division.
The board shall make all payments under this division
beginning the month following receipt of satisfactory evidence of
the payment for the coverage.
(C) The board shall establish by rule requirements for the
coordination of any coverage, payment, or benefit provided under
this section or section 3307.61 of the Revised Code with any
similar coverage, payment, or benefit made available to the same
individual by the public employees retirement system, Ohio police
and fire pension fund, school employees retirement system, or
state highway patrol retirement system.
(D) The board shall make all other necessary rules pursuant
to the purpose and intent of this section.
Sec. 3307.391. The state teachers retirement board shall
may
establish a program under which members of the state teachers
retirement system, employers on behalf of members, and persons
receiving benefits under this chapter are permitted to participate
in contracts for long-term health care insurance. Participation
may include dependents and family members. If a participant in a
contract for long-term care insurance leaves employment, the
participant and the participant's dependents and family members
may, at their election, continue to participate in a program
established under this section in the same manner as if the
participant had not left employment, except that no part of the
cost of the insurance shall be paid by the participant's former
employer.
Such program may be established independently or jointly with
one or more of the other retirement systems. For purposes of this
section, "retirement systems" has the same meaning as in division
(A) of section 145.581 of the Revised Code.
The board may enter into an agreement with insurance
companies, health insuring corporations, or government agencies
authorized to do business in the state for issuance of a long-term
care insurance policy or contract. However, prior to entering into
such an agreement with an insurance company or health insuring
corporation, the board shall request the superintendent of
insurance to certify the financial condition of the company or
corporation. The board shall not enter into the agreement if,
according to that certification, the company or corporation is
insolvent, is determined by the superintendent to be potentially
unable to fulfill its contractual obligations, or is placed under
an order of rehabilitation or conservation by a court of competent
jurisdiction or under an order of supervision by the
superintendent.
The board shall may adopt rules in accordance with section
111.15 of the Revised Code governing the program. The Any rules
adopted by the board shall establish methods of payment for
participation under this section, which may include establishment
of a payroll deduction plan under section 3307.70 3307.701 of the
Revised Code, deduction of the full premium charged from a
person's benefit, or any other method of payment considered
appropriate by the board. If the program is established jointly
with one or more of the other retirement systems, the rules also
shall establish the terms and conditions of such joint
participation.
Sec. 3307.42. (A) Except as provided in section 3307.373 of
the Revised Code, the granting to any person of an allowance,
annuity, pension, or other benefit under the STRS defined benefit
plan described in sections 3307.50 to 3307.79 of the Revised Code,
or the granting of a benefit under a an STRS defined contribution
plan established under section 3307.81 of the Revised Code,
pursuant to an action of the state teachers' retirement board
vests a right in such person, so long as the person remains the
beneficiary of any of the funds established by section 3307.14 of
the Revised Code, to receive the allowance, annuity, pension, or
benefit at the rate fixed at the time of granting the allowance,
annuity, pension, or benefit. Such right shall also be vested with
equal effect in the beneficiary of a grant heretofore made from
any of the funds named in section 3307.14 of the Revised Code.
(B)(1) The state teachers retirement system may suspend the
benefit of a person receiving a benefit under section 3307.58 or
3307.59 of the Revised Code, a disability benefit under section
3307.63 or 3307.631 of the Revised Code, a survivor benefit under
section 3307.66 of the Revised Code, any payment under section
3307.352 of the Revised Code, a benefit under section 3307.60 of
the Revised Code as a beneficiary, or a benefit under an STRS
defined contribution plan under either of the following
circumstances:
(a) The retirement system has good cause to believe that the
person receiving benefits is incapacitated and no other person has
authority to act or receive benefits on the person's behalf.
(b) The retirement system learns that the person receiving
benefits is missing, and no person provides evidence satisfactory
to the system that the person is alive and is entitled to receive
benefits.
(2) Benefits shall resume on presentation of evidence
satisfactory to the board that the person is no longer
incapacitated or is alive and entitled to receive benefits. Any
missed payments shall be paid in a single lump sum payment.
(3) A benefit suspended under division (B)(1)(b) of this
section shall be terminated on presentation to the board of a
decree of presumed death. Notwithstanding section 2121.04 of the
Revised Code, the termination shall be retroactive to the date the
benefit was suspended.
Sec. 3307.46. 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 state teachers
retirement board may increase the amount of the pension, benefit,
or allowance of any person whose pension, benefit, or allowance
payable under section 3307.58, 3307.59, 3307.63, 3307.631, or
3307.67 of the Revised Code or a an STRS defined contribution plan
established under section 3307.81 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. 3307.47. (A) If a person is paid any benefit or payment
by the state teachers retirement system under the plans described
in section 3307.031 of the Revised Code or under section 3307.371
of the Revised Code to which the person is not entitled, the
benefit shall be repaid to the system by the person. If the person
fails to make the repayment, the system shall withhold the amount
due from any benefit due the person or the person's beneficiary
under this chapter, or may collect the amount in any other manner
provided by law.
(B) If an alternate payee under section 3307.371 of the
Revised Code fails to make a repayment required by division (A) of
this section, the system may withhold the amount due from any
benefit due the retirant who was subject to the order under which
the alternate payee was paid or due a survivor or beneficiary of
the retirant.
(C) If a survivor or beneficiary of a retirant fails to make
a repayment required by division (A) of this section, the system
may withhold the amount due from any benefit or payment due any
other survivor or beneficiary of the retirant receiving benefits
or payments under this chapter.
(D) If a child support enforcement agency fails to repay an
overpayment of child support, the system may withhold the amount
due from any benefit due a survivor or beneficiary of the retirant
who was subject to the child support order.
(E) If a person receives any payment pursuant to section
3307.39 of the Revised Code to which the person is not entitled,
including any payment to a third party on the person's behalf, the
payment to which the person is not entitled shall be repaid to the
retirement system. If the person or third party fails to make the
repayment, the retirement system shall withhold the amount due, or
portion of the amount due, from any payment or benefit due the
person or person's beneficiary under this chapter.
(F) The retirement system may collect amounts due under this
chapter in any other manner the system considers appropriate, as
provided by law.
Sec. 3307.64 3307.48. (A) As used in this section,
"disability benefit recipient" means a recipient of a disability
benefit under any of the following:
(1) Section 3307.63 of the Revised Code;
(2) Section 3307.631 of the Revised Code;
(3) The STRS combined plan.
(B) A disability benefit recipient, notwithstanding section
3319.13 of the Revised Code, shall retain membership in the state
teachers retirement system and shall be considered on leave of
absence during the first five years following the effective date
of a disability benefit.
The state teachers retirement board shall require any
disability benefit recipient to submit to an annual medical
examination by a physician selected by the board, except that the
board may waive forgo the medical examination if the board's
physician
certifies determines that the recipient's disability is
ongoing or may require additional examinations if the board's
physician determines that additional information should be
obtained. If a disability benefit recipient refuses to submit to a
medical examination, the recipient's disability benefit shall be
suspended until the recipient withdraws the refusal. If the
refusal continues for one year, all the recipient's rights under
and to the disability benefit shall be terminated as of the
effective date of the original suspension.
After the examination, the examiner shall report and certify
to the board whether the disability benefit recipient is no longer
physically and mentally incapable of resuming the service from
which the recipient was found disabled. If the board concurs in a
report by the examining physician that the disability benefit
recipient is no longer incapable, the board shall order
termination of payment of a disability benefit shall be terminated
not later than the following thirty-first day of August or upon
employment as a teacher prior thereto. The board shall provide
notice to the recipient of the board's order. At the request of
the recipient, a hearing on the order shall be conducted in
accordance with procedures established by the board. If the leave
of absence has not expired, the board shall so 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. If the recipient was
under contract at the time the recipient was found disabled, the
employer by the first day of the next succeeding year shall
restore the recipient to the recipient's previous position and
salary or to a position and salary similar thereto, unless the
recipient was dismissed or resigned in lieu of dismissal for
dishonesty, misfeasance, malfeasance, or conviction of a felony.
A disability benefit shall terminate if the disability
benefit recipient becomes employed as a teacher in any public or
private school or institution in this state or elsewhere. An
individual receiving a disability benefit from the system shall be
ineligible for to perform any employment as a teacher and it shall
be unlawful for any employer to employ the individual as a teacher
teaching service, as defined by the board. A disability benefit
shall immediately terminate if the disability benefit recipient
performs any teaching service in this state or elsewhere. The
board shall notify the recipient that the benefit is terminated.
The recipient may submit, not later than thirty days after the
date the notice is sent, to the board information specifying that
the disability recipient did not perform teaching services while
receiving disability benefits along with any supporting evidence
available to the recipient. The board shall review the information
and any accompanying evidence to determine whether the individual
performed teaching services. The board may designate an individual
to review the information and submit a recommendation to the
board. The board shall determine whether the benefit was correctly
terminated. If not, the benefit shall be reinstated and any missed
payments paid to the recipient. The board's decision is final.
If
If any employer should employ or reemploy the individual a
disability benefit recipient prior to the termination of a
disability benefit, the employer shall file notice of employment
with the board designating the date of the employment. If the
individual should be paid both disability benefit recipient
received a disability benefit and also compensation for performed
teaching service
services for all or any part of the same month,
the secretary of the board shall certify to the employer or to the
superintendent of public instruction recipient shall repay to the
annuity and pension reserve fund the amount of the disability
benefit received by the individual during the employment, which
amount shall be deducted from any amount due the employing
district under Chapter 3317. of the Revised Code or shall be paid
by the employer to the annuity and pension reserve fund recipient
from the beginning of employment.
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 if the board's physician
certifies 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.
A disability benefit also may be terminated by the board at
the request of the disability benefit recipient.
If disability retirement under section 3307.63 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 teachers' savings fund and the
employers' trust fund, respectively. If the total disability
benefit paid was less than the amount of the accumulated
contributions of the member transferred to the annuity and pension
reserve fund at the time of the member's disability retirement,
then the difference shall be transferred from the annuity and
pension reserve fund to another fund as required. In determining
the amount of a member's account following the termination of
disability retirement for any reason, the total amount paid shall
be charged against the member's refundable account.
If a disability allowance paid under section 3307.631 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.
If a former disability benefit recipient again becomes a
contributor, other than as an other system retirant under section
3307.35 of the Revised Code, to this retirement system, the school
employees retirement system, or the public employees retirement
system, and completes at least two additional years of service
credit, the former disability benefit recipient shall receive
credit for the period as a disability benefit recipient. Credit
may be received for more than one period of leave as a disability
benefit recipient, except that for credit received on or after
July 1, 2013, the total number of years received shall not exceed
the lesser of the years of contributing service following the
termination of disability benefits or five years of total service
credit.
Sec. 3307.50. As used in sections 3307.50 to 3307.79 of the
Revised Code:
(A) "Prior service" means all service as a teacher before
September 1, 1920, military service credit, all service prior to
September 1, 1920, as an employee of any employer who comes within
the public employees retirement system, the school employees
retirement system, or any other state retirement system
established under the laws of Ohio, and similar service in another
state, credit for which was procured by a member under former
section 3307.33 of the Revised Code, prior to June 25, 1945. Prior
service credit shall not be granted to any member for service for
which credit or benefits have been received in any other state
retirement system in Ohio or for credit that was forfeited by
withdrawal of contributions, unless the credit has been restored.
If the teacher served as an employee in any two or all of the
capacities, "prior service" means the total combined service in
the capacities prior to September 1, 1920.
If a teacher who has been granted prior service credit for
service rendered prior to September 1, 1920, as an employee of an
employer who comes within the public employees retirement system
or the school employees retirement system, establishes, subsequent
to September 16, 1957, and before retirement, three years of
contributing service in the public employees retirement system, or
one year in the school employees retirement system, the prior
service credit granted shall become, at retirement, the liability
of the other system if the prior service or employment was in a
capacity covered by that system.
(B) "Total service," "total service credit," except as
provided in section 3307.57 of the Revised Code, or "Ohio service
credit" means all service of a member of the state teachers
retirement system since last becoming a member and, in addition
thereto, restored service credit under section 3307.71 of the
Revised Code, all prior service credit, all military service
credit computed as provided in this chapter, and all other service
credit established under sections 3307.26, 3307.53, 3307.54,
3307.72, 3307.73, 3307.74, 3307.76, 3307.761, 3307.763, 3307.77,
3307.771, and 3307.78 and former sections 3307.513, 3307.514, and
3307.52 of the Revised Code, and Section 3 of Amended Substitute
Senate Bill No. 530 of the 114th general assembly. All service
credit purchased under section 3307.741 of the Revised Code shall
be used exclusively for the purpose of qualifying for service
retirement.
(C)(1) "Service retirement" means retirement as provided in
section 3307.58 or 3307.59 of the Revised Code.
(2) "Disability retirement" means retirement as provided in
section 3307.63 of the Revised Code.
(D) "Accumulated contributions" means the sum of all amounts
credited to a contributor's individual account in the teachers'
savings fund, together with interest credited thereon at the rates
approved by the state teachers retirement board prior to
retirement.
(E) "Annuity" means payments for life derived from
contributions made by a contributor and paid from the annuity and
pension reserve fund. All annuities shall be paid in twelve equal
monthly installments.
(F) "Pensions" means annual payments for life derived from
appropriations made by an employer and paid from the annuity and
pension reserve fund. All pensions shall be paid in twelve equal
monthly installments.
(G)(1) "Allowance" means the pension plus the annuity, or any
other payment under sections 3307.50 to 3307.79 of the Revised
Code the STRS defined benefit plan, and includes a disability
allowance or disability benefit.
(2) "Disability allowance" means an allowance paid on account
of disability under section 3307.631 of the Revised Code.
(3) "Disability benefit" means a benefit paid as disability
retirement under section 3307.63 of the Revised Code, as a
disability allowance under section 3307.631 of the Revised Code,
or as a disability benefit under section 3307.57 of the Revised
Code.
(H) "Annuity reserve" means the present value, computed upon
the basis of mortality tables adopted by the state teachers
retirement board with interest, of all payments to be made on
account of any annuity, or benefit in lieu of any annuity, granted
to a member.
(I) "Pension reserve" means the present value, computed upon
the basis of mortality tables adopted by the state teachers
retirement board with interest, of all payments to be made on
account of any pension, or benefit in lieu of any pension, granted
to a member or to a beneficiary.
(J) "Retirant" means any former member who is granted age and
service retirement as provided in sections 3307.57, 3307.58,
3307.59, and 3307.60 of the Revised Code.
(K) "Disability benefit recipient" means a member who is
receiving a disability benefit.
Sec. 3307.501. (A) As used in this section, "percentage
increase" means the percentage that an increase in compensation is
of the compensation paid prior to the increase.
(B) Notwithstanding division (L) of section 3307.01 of the
Revised Code, for the purpose of determining final average salary
under this section, "compensation" has the same meaning as in that
division, except that it does not include any amount resulting
from a percentage increase paid to a member during the member's
two highest years of compensation that exceeds the greater of the
following:
(1) The highest percentage increase in compensation paid to
the member during any of the three years immediately preceding the
earlier of the member's two highest years of compensation and any
subsequent partial year of compensation used in calculating the
member's final average salary;
(2) A percentage increase paid to the member as part of an
increase generally applicable to members employed by the employer.
An increase shall be considered generally applicable if it is paid
to members employed by a school district board of education in
positions requiring a license issued under section 3319.22 of the
Revised Code in accordance with uniform criteria applicable to all
such members or if paid to members employed by an employer other
than a school district board of education in accordance with
uniform criteria applicable to all such members.
(C) The state teachers retirement board shall determine the
final average salary of a member as follows:
(1) For benefits beginning before August 1, 2015, by dividing
the sum of the member's annual compensation for the three highest
years of compensation for which the member made contributions plus
any amount determined under division (E) of this section by three,
except that if the member has a partial year of contributing
service in the year the member's employment terminates and the
compensation for the partial year is at a rate higher than the
rate of compensation for any one of the member's highest three
years of compensation, the board shall substitute the compensation
for the partial year for the compensation for the same portion of
the lowest of the member's three highest years of compensation;
(2) For benefits beginning on or after August 1, 2015, by
dividing the sum of the member's annual compensation for the five
highest years of compensation for which the member made
contributions plus any amount determined under division (E) of
this section by five, except that if the member has a partial year
of contributing service in the year the member's employment
terminates and the compensation for the partial year is at a rate
higher than the rate of compensation for any one of the member's
highest five years of compensation, the board shall substitute the
compensation for the partial year for the compensation for the
same portion of the lowest of the member's five highest years of
compensation. If
If a member has less than three the requisite years of
contributing membership, the member's final average salary shall
be the member's total compensation for the period of contributing
membership plus any amount determined under division (E) of this
section divided by the total years, including any portion of a
year, of contributing service.
For the purpose of calculating benefits payable to a member
qualifying for service credit under division (I) of section
3307.01 of the Revised Code, the board shall calculate the
member's final average salary by dividing the member's total
compensation as a teacher covered under this chapter plus any
amount determined under division (E) of this section by the total
number of years, including any portion of a year, of contributing
membership during that period. If contributions were made for less
than twelve months, the member's final average salary is the total
amount of compensation paid to the member during all periods of
contributions under this chapter.
(D) Contributions made by a member and an employer on amounts
that, pursuant to division (B) of this section, are not
compensation or are not included, pursuant to division (E) of this
section, for the purpose of determining final average salary shall
be treated as additional deposits to the member's account under
section 3307.26 of the Revised Code and used to provide additional
annuity income.
(E) The state teachers retirement board shall adopt rules
establishing criteria and procedures for administering this
division.
The board shall notify each applicant for retirement of any
amount excluded from the applicant's compensation in accordance
with division (B) of this section and of the procedures
established by the board for requesting a hearing on this
exclusion.
Any applicant for retirement who has had any amount excluded
from the applicant's compensation in accordance with division (B)
of this section may request a hearing on this exclusion. Upon
receiving such a request, the board shall determine in accordance
with its criteria and procedures whether, for good cause as
determined by the board, all or any portion of any amount excluded
from the applicant's compensation in accordance with division (B)
of this section, up to a maximum of seventy-five hundred dollars,
is to be included in the determination of final average salary
under division (C) of this section. Any determination of the board
under this division shall be final.
Sec. 3307.51. (A) The state teachers retirement board shall
have prepared annually by or under the supervision of an actuary
an actuarial valuation of the pension assets, liabilities, and
funding requirements of the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code. The actuary shall
complete the valuation in accordance with actuarial standards of
practice promulgated by the actuarial standards board of the
American academy of actuaries and prepare a report of the
valuation. The report shall include all of the following:
(1) A summary of the benefit provisions evaluated;
(2) A summary of the census data and financial information
used in the valuation;
(3) A description of the actuarial assumptions, actuarial
cost method, and asset valuation method used in the valuation,
including a statement of the assumed rate of payroll growth and
assumed rate of growth or decline in the number of members
contributing to the retirement system;
(4) A summary of findings that includes a statement of the
actuarial accrued pension liabilities and unfunded actuarial
accrued pension liabilities;
(5) A schedule showing the effect of any changes in the
benefit provisions, actuarial assumptions, or cost methods since
the last annual actuarial valuation;
(6) A statement of whether contributions to the retirement
system are expected to be sufficient to satisfy the funding
objectives established by the board.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the first day of January
following the year for which the valuation was made.
(B) At such times as the state teachers retirement board
determines, and at least once in each quinquennial period, the
board shall have prepared by or under the supervision of an
actuary an actuarial investigation of the mortality, service, and
other experience of the members, retirants, and beneficiaries of
the system, and other system retirants as defined in section
3307.35 of the Revised Code to update the actuarial assumptions
used in the actuarial valuation required by division (A) of this
section. The actuary shall prepare a report of the actuarial
investigation. The report shall be prepared and any recommended
changes in actuarial assumptions shall be made in accordance with
the actuarial standards of practice promulgated by the actuarial
standards board of the American academy of actuaries. The report
shall include all of the following:
(1) A summary of relevant decrement and economic assumption
experience observed over the period of the investigation;
(2) Recommended changes in actuarial assumptions to be used
in subsequent actuarial valuations required by division (A) of
this section;
(3) A measurement of the financial effect of the recommended
changes in actuarial assumptions.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the first day of May
following the last fiscal year of the period the report covers.
(C) The board may at any time request the actuary to make any
other studies or actuarial valuations to determine the adequacy of
the normal and deficiency rates of contribution provided by
section 3307.28 of the Revised Code, and those rates may be
adjusted by the board, as recommended by the actuary, effective as
of the first of any year thereafter.
(D) The board shall have prepared by or under the supervision
of an actuary an actuarial analysis of any introduced legislation
expected to have a measurable financial impact on the retirement
system. The actuarial analysis shall be completed in accordance
with the actuarial standards of practice promulgated by the
actuarial standards board of the American academy of actuaries.
The actuary shall prepare a report of the actuarial analysis,
which shall include all of the following:
(1) A summary of the statutory changes that are being
evaluated;
(2) A description of or reference to the actuarial
assumptions and actuarial cost method used in the report;
(3) A description of the participant group or groups included
in the report;
(4) A statement of the financial impact of the legislation,
including the resulting increase, if any, in the employer normal
cost percentage; the increase, if any, in actuarial accrued
liabilities; and the per cent of payroll that would be required to
amortize the increase in actuarial accrued liabilities as a level
per cent of covered payroll for all active members over a period
not to exceed thirty years;
(5) A statement of whether the scheduled contributions to the
system after the proposed change is enacted are expected to be
sufficient to satisfy the funding objectives established by the
board.
Not later than sixty days from the date of introduction of
the legislation, the board shall submit a copy of the actuarial
analysis to the legislative 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 section 3307.39 and 3307.61
of the Revised Code. The report shall be made as of June 30, 1997,
and the thirtieth day of June of each year thereafter. The report
shall include the following:
(1) A description of the statutory authority for the benefits
provided;
(2) A summary of the benefits;
(3) A summary of the eligibility requirements for the
benefits;
(4) A statement of the number of participants eligible for
the benefits;
(5) A description of the accounting, asset valuation, and
funding method used to provide the benefits;
(6) A statement of the net assets available for the
provisions of benefits as of the last day of the fiscal year;
(7) A statement of any changes in the net assets available
for the provision of benefits, including participant and employer
contributions, net investment income, administrative expenses, and
benefits provided to participants, as of the last day of the
fiscal year;
(8) For the last six consecutive fiscal years, a schedule of
the net assets available for the benefits, the annual cost of
benefits, administrative expenses incurred, and annual employer
contributions allocated for the provision of benefits;
(9) A description of any significant changes that affect the
comparability of the report required under this division;
(10) A statement of the amount paid under division (B) of
section 3307.39 of the Revised Code.
The board shall submit the report to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation not later than the thirty-first day of
December following the year for which the report was made.
Sec. 3307.512. The state teachers retirement board shall
establish a period of not more than thirty years to amortize the
state teachers retirement system's unfunded actuarial accrued
pension liabilities for benefits paid under sections 3307.50 to
3307.79 of the Revised Code the STRS defined benefit plan. If in
any year the period necessary to amortize the unfunded actuarial
accrued pension liability exceeds thirty years, as determined by
the annual actuarial valuation required by section 3307.51 of the
Revised Code, the board, not later than ninety days after receipt
of the valuation, shall prepare and submit to the Ohio retirement
study council and the standing committees of the house of
representatives and the senate with primary responsibility for
retirement legislation a report that includes the following
information:
(A) The number of years needed to amortize the unfunded
actuarial accrued pension liability as determined by the annual
actuarial valuation;
(B) A plan approved by the board that indicates how the board
will reduce the amortization period of unfunded actuarial accrued
pension liability to not more than thirty years.
Sec. 3307.52. At the time of retirement under the STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code, the total service credited a teacher shall
consist of all the teacher's service as a teacher since the
teacher last became a member and, if the teacher has a prior
service certificate which is in full force and effect, all service
certified on such prior service certificate, together with
purchased service credit as provided in section 3307.741 of the
Revised Code.
Sec. 3307.53. The state teachers retirement board shall
credit a year of service to any teacher participating in the STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code who is employed on a full-time basis in a school
district for the number of months the regular day schools of such
district are in session in said district within any year. The
board shall adopt appropriate rules and regulations for the
determination of credit for less than a complete year of service,
and shall be the final authority in determining the number of
years of service credit. The board shall credit not more than one
year for all service rendered in any year.
If concurrent contributions are made to two or more
retirement systems, except in the case of retirement as provided
in section 3307.351 of the Revised Code, service credit shall be
on the basis of the ratio that contributions to this system bear
to the total contributions in all such systems.
The board shall adopt rules for the purpose of determining
the number of years or partial years of service credit to be
granted to a member under section 3307.88 3307.25 of the Revised
Code. The amount of service credit shall be based on the member's
length of participation in and contribution to a an STRS defined
contribution plan established under section 3307.81 of the Revised
Code. The board shall be the final authority in determining the
amount of service credit.
Sec. 3307.56. (A)(1) Subject to sections 3307.37 and
3307.561 of the Revised Code and except as provided in division
(B)(2) of this section, a member participating in the STRS defined
benefit plan
described in sections 3307.50 to 3307.79 of the
Revised Code who ceases to be a teacher for any cause other than
death, retirement, receipt of a disability benefit, or current
employment in a position in which the member has elected to
participate in an alternative retirement plan under section
3305.05 or 3305.051 of the Revised Code, upon application, shall
be paid the accumulated contributions standing to the credit of
the member's individual account in the teachers' savings fund plus
an amount calculated in accordance with section 3307.563 of the
Revised Code. If the member or the member's legal representative
cannot be found within ten years after the member ceased making
contributions pursuant to section 3307.26 of the Revised Code, the
accumulated contributions may be transferred to the guarantee fund
and thereafter paid to the member, to the member's beneficiaries,
or to the member's estate, upon proper application.
(2) A member described in division (A)(1) of this section who
is married at the time of application for payment and is eligible
for age and service retirement under section 3307.58 or 3307.59 of
the Revised Code or would be eligible for age and service
retirement under either of those sections but for a forfeiture
ordered under division (A) or (B) of section 2929.192 of the
Revised Code shall submit with the application a written statement
by the member's spouse attesting that the spouse consents to the
payment of the member's accumulated contributions. Consent shall
be valid only if it is signed and witnessed by a notary public. If
the statement is not submitted under this division, the
application shall be considered an application for service
retirement and shall be subject to division (G)(1) of section
3307.60 of the Revised Code.
The state teachers retirement board may waive the requirement
of consent if the spouse is incapacitated or cannot be located, or
for any other reason specified by the board. Consent or waiver is
effective only with regard to the spouse who is the subject of the
consent or waiver.
(B) This division applies to any member who is employed in a
position in which the member has elected under section 3305.05 or
3305.051 of the Revised Code to participate in an alternative
retirement plan and due to the election ceases to be a teacher for
the purposes of that position.
Subject to sections 3307.37 and 3307.561 of the Revised Code,
the state teachers retirement system shall do the following:
(1) On receipt of a certified copy of an election under
section 3305.05 or 3305.051 of the Revised Code, pay, in
accordance with section 3305.052 of the Revised Code, the amount
described in that section to the appropriate provider;
(2) If a member has accumulated contributions, in addition to
those subject to division (B)(1) of this section, standing to the
credit of a member's individual account and is not otherwise in a
position in which the member is considered a teacher for the
purposes of that position, pay, to the provider the member
selected pursuant to section 3305.05 or 3305.051 of the Revised
Code, the accumulated contributions standing to the credit of the
member's individual account in the teachers' saving fund plus an
amount calculated in accordance with section 3307.80 3307.563 of
the Revised Code. The payment shall be made on the member's
application.
(C) Payment of a member's accumulated contributions under
division (B) of this section cancels the member's total service
credit in the state teachers retirement system. A member whose
accumulated contributions are paid to a provider pursuant to
division (B) of this section is forever barred from claiming or
purchasing service credit under the state teachers retirement
system for the period of employment attributable to those
contributions.
Sec. 3307.561. (A) Except as provided in division (B) of
this section, a member of the state teachers retirement system
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who has ceased to
be a teacher, and who is also a member of either the public
employees retirement system or school employees retirement system,
or both, may not withdraw the member's accumulated contributions.
(B) On application, the state teachers retirement board shall
pay a member described in division (A) of this section the
member's accumulated contributions if either of the following
applies:
(1) The member also withdraws the member's contributions from
the other systems.
(2) The member is a participant in a PERS defined
contribution plan or a plan established under section 145.81 or
3309.81 of the Revised Code and has withdrawn the member's
contributions under plans the PERS defined benefit plan or the
plan described in sections
145.201 to 145.79 and 3309.18 to
3309.70 of the Revised Code.
Sec. 3307.562. (A) As used in this section and section
3307.66 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 if a final
decree of adoption adjudging the member's 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) of this section.
(5) "Survivor" means a spouse, child, or dependent parent.
(B) Except as provided in division (B) of section 3307.563 or
division (G)(1) of section 3307.66 of the Revised Code, should a
member who is participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code die
before service retirement, the member's accumulated contributions,
plus an amount calculated in accordance with section 3307.563 of
the Revised Code, and any amounts owed and unpaid to a disability
benefit recipient shall be paid to such beneficiaries as the
member has nominated by written designation signed by the member
and filed with received by the state teachers retirement board
prior to death. A member may designate two or more persons as
beneficiaries to be paid the amount determined under this
division. On and after July 1, 2013, and subject to rules adopted
by the board, a member who designates two or more persons as
beneficiaries shall specify the percentage of the amount that each
beneficiary is to be paid. If the member has not specified the
percentages, the amount shall be divided equally among the
beneficiaries. If a designated beneficiary is deceased, the amount
allocated to the deceased beneficiary shall be allocated to the
remaining beneficiaries based on each remaining beneficiary's
initial percentage. The nomination of beneficiary shall be on a
form provided by the retirement board. The last nomination of any
beneficiary revokes all previous nominations. The member's
marriage, divorce, marriage dissolution, legal separation, or
withdrawal of account, or the birth of the member's child, or the
member's adoption of a child, shall constitute an automatic
revocation of the member's previous designation. If a deceased
member was also a member of the public employees retirement system
or the school employees retirement system, the beneficiary last
established among the systems shall be the sole beneficiary in all
the systems.
Any beneficiary ineligible for monthly survivor benefits as
provided by section 3307.66 of the Revised Code may waive in
writing all claim to any benefits and such waiver shall thereby
put in effect the succession of beneficiaries under division (C)
of this section, provided the beneficiary thereunder is
immediately eligible and agrees in writing to accept survivor
benefits as provided by section 3307.66 of the Revised Code. 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 (G)(1) of section 3307.66
of the Revised Code, if a member dies before service retirement
and is not survived by a designated beneficiary, any beneficiaries
shall qualify, in the following order of precedence, with all
attendant rights and privileges:
(2) Children, share and share alike;
(3) A dependent parent, if that parent elects to take
survivor benefits under division (C)(2) of section 3307.66 of the
Revised Code;
(4) Parents, share and share alike;
If any survivor dies before payment is made under this
section or is not located prior to the ninety-first day after the
board receives notification of the member's death, the survivor
next in order of precedence shall qualify as a beneficiary,
provided that benefits under division (C)(2) of section 3307.66 of
the Revised Code are elected. In the event that the beneficiary
originally determined is subsequently located, the beneficiary may
qualify for benefits under division (C)(2) of section 3307.66 of
the Revised Code upon meeting the conditions of eligibility set
forth in division (B) of that section, but in no case earlier than
the first day of the month following application by such
beneficiary. Any payment made to a beneficiary as determined by
the board shall be a full discharge and release to the board from
any future claims.
(D)(1) Any amount due any person, as an annuitant, receiving
a monthly benefit, and unpaid to the annuitant at death, shall be
paid to the beneficiary named by written designation signed by the
annuitant and filed with received by the state teachers retirement
board prior to death. If no such designation has been filed, or if
the beneficiary designated is deceased or is not located prior to
the ninety-first day after the board receives notification of the
annuitant's death, such amount shall be paid, in the following
order of precedence to the annuitant's:
(2)(b) Children, share and share alike;
(3)(c) Parents, share and share alike;
(2) If there is no beneficiary under division (D)(1) of this
section, an amount not exceeding the cost of the annuitant's
burial expenses may be paid to the person responsible for the
burial expenses.
For purposes of this division an "annuitant" is the last
person who received a monthly benefit pursuant to the plan of
payment selected by the former member. Such payment shall be a
full discharge and release to the board from any future claim for
such payment.
(E) If the validity of marriage cannot be established to the
satisfaction of the board for the purpose of disbursing any amount
due under this section or section 3307.66 of the Revised Code, the
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 the distribution of
the member's intestate personal property.
(F) 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 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)(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)(1)(a) or (b) of
this section.
Sec. 3307.563. For the purposes of this section, "service
credit" includes only service credit obtained pursuant to sections
3307.53, 3307.71,
3307.712, 3307.72, and 3307.77 of the Revised
Code.
(A) The state teachers retirement system shall add to a
member's accumulated contributions to be paid under section
3307.56 or 3307.562 of the Revised Code an amount paid from the
employers' trust fund equal to one of the following:
(1) If the member has less than three full years of service
credit, an amount equal to interest on the member's accumulated
contributions, compounded annually, at a rate not greater than
four per cent established by the board;
(2) If the member has three or more full years of service
credit, but less than five full years, an amount equal to interest
on the member's accumulated contributions, compounded annually, at
a rate not greater than six per cent established by the board;
(3) If the member has five or more full years of service
credit, the sum of the following amounts:
(a) An amount equal to interest on the member's accumulated
contributions, compounded annually, at a rate not greater than six
per cent established by the board;
(b) An amount equal to fifty per cent of the sum of the
member's contributions under section 3307.26, any contributions
restored under section 3307.71 of the Revised Code to the extent
that the amount paid to restore the credit included amounts
received by the member under division (A)(3)(b) of this section,
and contributions deducted under division (C) of section 3307.77
of the Revised Code plus interest on that amount at a rate not
greater than six per cent established by the board.
Interest for each year included in the calculation under this
section shall be calculated from the first day of the following
year to the last day of the month preceding payment under section
3307.56 or 3307.562 of the Revised Code.
(B) Notwithstanding sections 3307.56 and 3307.562 of the
Revised Code, neither a member who returned to contributing
service after receiving disability benefits nor the beneficiaries,
survivors, nor or estate of a deceased member who was granted
disability benefits prior to death is eligible for the payment of
any amount calculated under this section.
Sec. 3307.57. To coordinate and integrate membership in the
state retirement systems, the following provisions apply:
(A) As used in this section:
(1) "Retirement systems" means the public employees
retirement system, state teachers retirement system, and school
employees retirement system.
(2) In addition to the meaning given in section 3307.50 of
the Revised Code, "disability benefit" means "disability benefit"
as defined in sections 145.01 and 3309.01 of the Revised Code;
(3) "Actuarial assumption rate" means the investment rate of
return assumed for projecting assets in the STRS defined benefit
plan.
(B) At the option of a member participating in the STRS
defined benefit plan
described in sections 3307.50 to 3307.79 of
the Revised Code, total contributions and service credit in all
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 for
benefits. If total contributions and service credit are combined,
the following provisions apply:
(1) Service retirement or a disability benefit is effective
on the first day of the month next following the later of:
(a) The last day for which compensation was paid;
(b) The attainment of minimum age or service credit for
benefits provided under this section.
(2) "Total service credit" includes the total credit in all
retirement systems except that such credit shall not exceed one
year for any period of twelve months.
(3) In determining eligibility Eligibility for a disability
benefit, the medical examiner's report to shall be determined by
the 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)(4) 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 that board as
sufficient for granting a disability benefit.
(4) 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 benefit. If the member's
credit is equal in two or more retirement systems, the system
having the member's largest total contributions shall determine
calculate and pay the total benefit.
(5) In determining the total credit to be used in calculating
a 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 statute governing the system
making the calculation.
(6)(a) The retirement system determining calculating and
paying the 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 interest
credited under section 145.471, 145.472, or 3307.563 of the
Revised Code. If applicable, the retirement system determining 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 all of the following for each year of
service:
(i) The amount contributed by the member, or, in the case of
service credit purchased by the member, paid by the member, that
is attributable to the year of service;
(ii) An amount equal to the lesser of the employer's
contributions made on behalf of the member to the retirement
system for that year of service or the amount that would have been
contributed by the employer for the service had the member been a
member of the state teachers retirement system at the time the
credit was earned;
(iii) If applicable, an amount equal to the amount paid on
behalf of the member by an employer under section 145.483 of the
Revised Code;
(iv) Interest compounded annually on the amounts specified in
divisions (B)(6)(a)(i), (ii), and (iii) of this section at the
lesser of the actuarial assumption rate for that year of the state
teachers retirement system or the other retirement system or
systems transferring amounts under this section.
(a)(b) The annuity rates and mortality tables of the
retirement system making the calculation and paying the benefit
shall be applicable.
(b)(c) Deposits made for the purchase of additional income,
with guaranteed interest, upon the member's request, shall be
transferred to the retirement system paying the regular benefit.
The return upon such deposits shall be that offered by the
retirement system making the calculation and paying the regular
benefit.
(C) A person receiving a benefit under this section, who
accepts employment amenable to coverage in any retirement system
that participated in the person's combined benefit, shall be
subject to the applicable provisions of law governing such
re-employment.
If a retirant should be paid any amount to which the retirant
is not entitled under the applicable provisions of law governing
such re-employment, such amount shall be recouped by the
retirement system paying such benefit by utilizing any recovery
procedure available under the law of the retirement system
covering such re-employment.
Sec. 3307.58. Any (A) As used in this section, "qualifying
service credit" means credit earned under section 3307.53 or for
which contributions were made under section 145.47 or 3309.47 of
the Revised Code, credit restored under section 145.31, 3307.71,
or 3309.26 of the Revised Code, and credit obtained under section
3307.761, 3307.763, or 3307.765 of the Revised Code.
(B) Any member participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code who
has five years of service credit and has attained the applicable
combination of age
sixty, or who has twenty-five years of and
service credit and has attained age fifty-five, or who has thirty
years of service credit shall be granted service retirement after
filing with the state teachers retirement board a completed
application on a form approved by the board.
(A)(1) Except as provided in division (B)(3) of this section,
a member is eligible to retire under this division if either of
the following is the case:
(a) The member has five or more years of qualifying service
credit and has attained age sixty-five;
(b) The member meets one of the following requirements:
(i) Before August 1, 2015, has thirty or more years of
service credit at any age;
(ii) On or after August 1, 2015, but before August 1, 2017,
has thirty-one or more years of service credit at any age;
(iii) On or after August 1, 2017, but before August 1, 2019,
has thirty-two or more years of service credit at any age;
(iv) On or after August 1, 2019, but before August 1, 2021,
has thirty-three or more years of service credit at any age;
(v) On or after August 1, 2021, but before August 1, 2023,
has thirty-four or more years of service credit at any age;
(vi) On or after August 1, 2023, but before August 1, 2026,
has thirty-five or more years of service credit at any age;
(vii) On or after August 1, 2026, has thirty-five or more
years of service credit and has attained age sixty.
(2) Except as provided in division (B)(3) of this section, a
member is eligible to retire under this division if either of the
following is the case:
(a) The member has five or more years of qualifying service
credit and has attained age sixty;
(b) The member meets one of the following requirements:
(i) Before August 1, 2015, has twenty-five or more years of
service credit and has attained age fifty-five;
(ii) On or after August 1, 2015, but before August 1, 2017,
has twenty-six or more years of service credit and has attained
age fifty-five or has thirty or more years of service credit at
any age;
(iii) On or after August 1, 2017, but before August 1, 2019,
has twenty-seven or more years of service credit and has attained
age fifty-five or has thirty or more years of service credit at
any age;
(iv) On or after after August 1, 2019, but before August 1,
2021, has twenty-eight or more years of service credit and has
attained age fifty-five or has thirty or more years of service
credit at any age;
(v) On or after August 1, 2021, but before August 1, 2023,
has twenty-nine or more years of service credit and has attained
age fifty-five or has thirty or more years of service credit at
any age;
(vi) On or after August 1, 2023, has thirty or more years of
service credit at any age.
(3) The board may adjust the retirement eligibility
requirements of this section if the board's actuary, in its annual
actuarial valuation required by section 3307.51 of the Revised
Code or in other evaluations conducted under that section,
determines that an adjustment does not materially impair the
fiscal integrity of the retirement system or is necessary to
preserve the fiscal integrity of the system.
(C) Service retirement shall be effective on the first day of
the month next following the later of:
(1) The last day for which compensation was paid; or
(2) The attainment of minimum age or service credit
eligibility for benefits provided under this section.
Except as provided in division (E) of this section, the
service retirement benefit shall be the greater of the benefits
provided in divisions (B) and (D) of this section.
(B) Subject to any adjustment made under (D)(1) Except as
provided in division
(C)(E) of this section, the annual single
lifetime benefit of a member whose retirement effective date is
before August 1, 2013, shall be the greater of the amounts
determined by the member's Ohio service credit multiplied by one
of the following:
(1)(a) Eighty-six dollars;
(2)(a)(b) The sum of the following amounts:
(i) For each of the first thirty years of Ohio service
credit, two and two-tenths per cent of the member's final average
salary or, subject to the limitation described in division
(B)(2)(b)(D)(1)(c) of this section, two and five-tenths per cent
of the member's final average salary if the member has thirty-five
or more years of service credit under section 3307.48, 3307.53,
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,
3307.765, 3307.77, or 3307.771 of the Revised Code, division
(A)(2) or (B) of former section 3307.513 of the Revised Code,
former section 3307.514 of the Revised Code, section 3307.72 of
the Revised Code earned after July 1, 1978, or any combination of
service credit under those sections;
(ii) For each year or fraction of a year of Ohio service
credit in excess of thirty years, two and two-tenths per cent of
the member's final average salary or, subject to the limitation
described in division (B)(2)(b)(D)(1)(c) of this section, if the
member has more than thirty years service credit under section
3307.48, 3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761,
3307.763, 3307.765, 3307.77, or 3307.771 of the Revised Code,
division (A)(2) or (B) of former section 3307.513 of the Revised
Code, former section 3307.514 of the Revised Code, section 3307.72
of the Revised Code earned after July 1, 1978, or any combination
of service credit under those sections, the per cent of final
average salary shown in the following schedule for each
corresponding year or fraction of a year of service credit under
those sections that is in excess of thirty years:
Year |
Per |
Year |
Per |
|
|
of |
Cent |
of |
Cent |
|
|
Service |
for that |
Service |
for that |
|
|
Credit |
Year |
Credit |
Year |
|
|
30.01 - 31.00 |
2.5% |
35.01 - 36.00 |
3.0% |
|
|
31.01 - 32.00 |
2.6 |
36.01 - 37.00 |
3.1 |
|
|
32.01 - 33.00 |
2.7 |
37.01 - 38.00 |
3.2 |
|
|
33.01 - 34.00 |
2.8 |
38.01 - 39.00 |
3.3 |
|
|
34.01 - 35.00 |
2.9 |
|
|
|
|
For purposes of this schedule, years of service credit shall be
rounded to the nearest one-hundredth of a year.
(b)(c) For purposes of division (B)(2)(a)(D)(1) of this
section, a percentage of final average salary in excess of two and
two-tenths per cent shall be applied to service credit under
section 3307.57 of the Revised Code only if the service credit was
established under section 145.30, 145.301, 145.302, 145.47,
145.483, 3309.02, 3309.021, 3309.022, or 3309.47 of the Revised
Code or restored under section 145.31 or 3309.26 of the Revised
Code.
(C)(2)(a) Except as provided in division (E) of this section,
the annual single lifetime benefit of a member whose retirement
effective date is on or after August 1, 2013, but before August 1,
2015, shall be the amount determined by the member's Ohio service
credit multiplied by the sum of the following amounts:
(i) For each of the first thirty years of Ohio service
credit, two and two-tenths per cent of the member's final average
salary or, subject to the limitation described in division
(D)(2)(b) of this section, two and five-tenths per cent of the
member's final average salary if the member has thirty-five or
more years of service credit under section 3307.53, 3307.57,
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or
3307.771 of the Revised Code, division (A)(2) or (B) of former
section 3307.513 of the Revised Code, former section 3307.514 of
the Revised Code, section 3307.72 of the Revised Code earned after
July 1, 1978, or any combination of service credit under those
sections;
(ii) For each year or fraction of a year of Ohio service
credit in excess of thirty years, two and two-tenths per cent of
the member's final average salary or, subject to the limitation
described in division (D)(2)(b) of this section, if the member has
more than thirty years service credit under section 3307.53,
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77,
or 3307.771 of the Revised Code, division (A)(2) or (B) of former
section 3307.513 of the Revised Code, former section 3307.514 of
the Revised Code, section 3307.72 of the Revised Code earned after
July 1, 1978, or any combination of service credit under those
sections, the per cent of final average salary shown in the
following schedule for each corresponding year or fraction of a
year of service credit under those sections that is in excess of
thirty years:
Year |
Per |
Year |
Per |
|
|
of |
Cent |
of |
Cent |
|
|
Service |
for that |
Service |
for that |
|
|
Credit |
Year |
Credit |
Year |
|
|
30.01 - 31.00 |
2.5% |
35.01 - 36.00 |
3.0% |
|
|
31.01 - 32.00 |
2.6 |
36.01 - 37.00 |
3.1 |
|
|
32.01 - 33.00 |
2.7 |
37.01 - 38.00 |
3.2 |
|
|
33.01 - 34.00 |
2.8 |
38.01 - 39.00 |
3.3 |
|
|
34.01 - 35.00 |
2.9 |
|
|
|
|
For purposes of this schedule, years of service credit shall be
rounded to the nearest one-hundredth of a year.
(b) For purposes of division (D)(2)(a)(ii) of this section, a
percentage of final average salary in excess of two and two-tenths
per cent shall be applied to service credit under section 3307.57
of the Revised Code only if the service credit was established
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,
3309.021, 3309.022, or 3309.47 of the Revised Code or restored
under section 145.31 or 3309.26 of the Revised Code.
(3) Except as provided in division (E) of this section, the
annual single lifetime benefit of a member whose retirement
effective date is on or after August 1, 2015, shall be the amount
determined by the member's service credit multiplied by two and
two-tenths of the member's final average salary.
(E)(1) The annual single lifetime benefit of a member
determined under described in division (B)(2) of this section
whose service retirement is effective before August 1, 2015, shall
be adjusted by the greater per cent shown in the following
schedule opposite the member's attained age or Ohio service
credit.
Years of |
Per Cent |
|
|
Attained
|
or |
Ohio Service |
of Base |
|
|
Age
| Credit |
Amount |
|
|
58
| 25 |
75% |
|
|
59
| 26 |
80 |
|
|
60
| 27 |
85 |
|
|
61
| |
88 |
|
|
28 |
90 |
|
|
62
| |
91 |
|
|
63
| |
94 |
|
|
29 |
95 |
|
|
64
| |
97 |
|
|
65
| 30 or more |
100 |
|
|
Members shall vest the right to a benefit in accordance with
the following schedule, based on the member's attained age by
September 1, 1976:
|
|
Per Cent |
|
|
|
|
Attained |
of Base |
|
|
|
|
Age |
Amount |
|
|
|
|
66 |
102% |
|
|
|
|
67 |
104 |
|
|
|
|
68 |
106 |
|
|
|
|
69 |
108 |
|
|
|
|
70 or more |
110 |
|
|
|
The (2) The annual single lifetime benefit of a member
described in division (B)(2) of this section whose service
retirement is effective on or after August 1, 2015, shall be
reduced by a percentage determined by the board's actuary for each
year the member retires before attaining the applicable age and
service credit specified in division (B)(1) of this section. The
board's actuary may use an actuarially based average percentage
reduction for this purpose.
(F) Notwithstanding any other provision of this section, on
application, a member who, as of July 1, 2015, has five or more
years of Ohio service credit and has attained age sixty, has
twenty-five or more years of Ohio service credit and has attained
age fifty-five, or has thirty or more years of Ohio service credit
shall be granted service retirement according to former section
3307.58 of the Revised Code as in effect immediately prior to the
effective date of this amendment. The member's benefit shall be
the greater of the amount the member would have been eligible for
had the member retired effective July 1, 2015, or the amount
determined under division (D)(3) of this section.
(G) The annual single lifetime benefit determined under
division (B)(D) or (E) of this section shall not exceed the lesser
of one hundred per cent of the final average salary or the limit
established by section 415 of the "Internal Revenue Code of 1986,"
100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(D)(H) The annual single lifetime benefit of a member whose
retirement effective date is before August 1, 2013, shall be the
greater of the amounts determined under division (D)(1) or (E)(1)
of this section as appropriate or under this division. The benefit
shall not exceed the lesser of the sum of the following amounts or
the limit established by section 415 of the "Internal Revenue Code
of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:
(1) An annuity with a reserve equal to the member's
accumulated contributions;
(2) A pension equal to the amount in division (D)(H)(1) of
this section;
(3) An additional pension of forty dollars annually
multiplied by the number of years of prior and military service
credit, except years of credit purchased under section 3307.751 or
3307.752 of the Revised Code;
(4) An additional basic annual pension of one hundred eighty
dollars, provided the member had ten or more years of Ohio service
credit as of October 1, 1956, except that the additional basic
annual pension shall not exceed the sum of the annual benefits
provided by divisions (D)(1), (2), and (3) of this section.
(E)(I) If a member's disability benefit was terminated under
section 3307.48 of the Revised Code and the member's retirement
under this section is effective on the first day of the month
following the last day for which the disability benefit was paid,
the member's annual single lifetime benefit determined under
division (D) or (E) of this section shall be increased by a
percentage equal to the total of any percentage increases the
member received under section 3307.67 of the Revised Code, plus
any additional amount the member received under this chapter while
receiving the disability benefit. The increase shall be based on
the plan of payment selected by the member under section 3307.60
of the Revised Code. However, the benefit used to calculate any
future increases under section 3307.67 of the Revised Code shall
be based on the plan of payment selected by the member, plus any
additional amount added to the benefit determined under this
division that established a new base benefit to the member.
(J) Benefits determined under this section shall be paid as
provided in section 3307.60 of the Revised Code.
Sec. 3307.59. (A) A recipient of a disability allowance
under section 3307.631 of the Revised Code who is subject to
division (C)(3) of whose allowance will terminate under that
section may make application for service retirement under this
section. Retirement The retirement shall be effective on the first
day of the first month following the last day for which the
disability allowance is paid.
(B) The annual allowance payable under this section shall
consist of the sum of the amounts determined under divisions
(B)(1) and (2) of this section:
(1) The greater of the following:
(a) An allowance calculated as provided in section 3307.58 of
the Revised Code, excluding any period during which the applicant
received a disability benefit under section 3307.631 of the
Revised Code;
(b) An allowance calculated by multiplying the applicant's
total service credit, including service credit for the last
continuous period during which the applicant received a disability
benefit under section 3307.631 of the Revised Code, by two and
two-tenths per cent of the applicant's final average salary,
except that the allowance shall be determined without application
of division (B) of section 3307.501 of the Revised Code and shall
not exceed forty-five per cent of the applicant's final average
salary.
(2) An Using the allowance calculated under division (B)(1)
of this section adjusted for the plan of payment selected by the
member under section 3307.60 of the Revised Code, an amount equal
to the additional allowance the recipient would receive under
section 3307.67 of the Revised Code, plus any other additional
amount the recipient would receive under this chapter, had the
recipient retired under section 3307.58 of the Revised Code
effective on the effective date of for the recipient's most recent
continuous period of receipt of a disability benefit under section
3307.631 of the Revised Code.
(C) The allowance calculated under division (B) of this
section adjusted for the plan of payment selected by the member
under section 3307.60 of the Revised Code, exclusive of any amount
added under division (B)(2) of this section based on section
3307.67 of the Revised Code, shall be the base for all future
additional allowances under section 3307.67 of the Revised Code.
The anniversary date for future additional allowances under
section 3307.67 of the Revised Code shall be the effective date of
the recipient's most recent continuous period of receipt of a
disability benefit under section 3307.631 of the Revised Code.
(D) The retirement allowance determined under this section
shall be paid as provided in section 3307.58 of the Revised Code.
Sec. 3307.60. (A) Upon application for retirement as
provided in section 3307.58 or 3307.59 of the Revised Code, the
retirant may elect a plan of payment under this division or, on
and after the date specified in division (B) of this section, a
plan of payment under that division. Under this division, the
retirant may elect to receive a single lifetime benefit, or may
elect to receive the actuarial equivalent of the retirant's
benefit in a lesser amount, payable for life, and continuing after
death to a beneficiary under one of the following optional plans:
(1) Option 1. The retirant's lesser benefit shall be paid for
life to the sole beneficiary named at retirement.
(2) Option 2. Some other portion of the retirant's benefit
shall be paid for life to the sole beneficiary named at
retirement. The beneficiary's monthly amount shall not exceed the
monthly amount payable to the retirant during the retirant's
lifetime.
(3) Option 3. The retirant's lesser benefit established as
provided under option 1 or option 2 shall be paid for life to the
sole beneficiary named at retirement, except that in the event of
the death of the sole beneficiary or termination of a marital
relationship between the retirant and the sole beneficiary the
retirant may elect to return to a single lifetime benefit
equivalent as determined by the state teachers retirement board,
if, in the case of termination of a marital relationship, the
election is made with the written consent of the beneficiary or
pursuant to an order of the court with jurisdiction over
termination of the marital relationship.
(4) Option 4. The retirant's lesser benefit or a portion of
the retirant's lesser benefit shall be paid for life to two,
three, or four surviving beneficiaries named at retirement. The
portion of the allowance that continues after the member's death
shall be allocated among the beneficiaries at the time of the
member's retirement. If the retirant elects this plan as required
by a court order issued under section 3105.171 or 3105.65 of the
Revised Code or the laws of another state regarding the division
of marital property and compliance with the court order requires
the allocation of a portion less than ten per cent to any person,
the retirant shall allocate a portion less than ten per cent to
that beneficiary in accordance with that order. In all other
circumstances, no portion allocated under this plan of payment
shall be less than ten per cent. The total of the portions
allocated shall not exceed one hundred per cent of the retirant's
lesser allowance. In the event of the death of a beneficiary or
termination of a marital relationship between the retirant and a
beneficiary, the retirant may elect to cancel the portion of the
plan of payment providing continuing lifetime benefits to that
beneficiary except that, in the case of termination of a marital
relationship, the election may be made only with the written
consent of the beneficiary or pursuant to an order of the court
with jurisdiction over termination of the marital relationship.
The retirant shall receive the actuarial equivalent of the
remainder of the retirant's single lifetime benefit based on the
number of remaining beneficiaries, with no change in the amount
payable to any remaining beneficiary.
(5) Option 5. Upon the retirant's death before the expiration
of a certain period from the retirement date and elected by the
retirant, and approved by the board, the retirant's benefit shall
be continued for the remainder of such period to the beneficiary.
Monthly benefits shall not be paid to joint beneficiaries, but
they may receive the present value of any remaining payments in a
lump sum settlement. If all beneficiaries die before the
expiration of the certain period, the present value of all
payments yet remaining in such period shall be paid to the estate
of the beneficiary last receiving.
(6) Option 6. A plan of payment established by the state
teachers retirement board combining any of the features of options
1, 2, and 5.
(B) Beginning on a date selected by the state teachers
retirement board, which shall be not later than July 1, 2004, a
retirant may elect, in lieu of a plan of payment under division
(A) of this section, a plan consisting of both of the following:
(1) A lump sum in an amount the member designates that
constitutes a portion of the member's single lifetime benefit;
(2) Either of the following:
(a) The remainder of the retirant's single lifetime benefit;
(b) The actuarial equivalent of the remainder of the
retirant's benefit in a lesser amount, payable for life, and
continuing after death to a beneficiary under one of the options
described in divisions (A)(1) to (6) of this section.
In the event of the death of a beneficiary or termination of
a marital relationship between the retirant and a beneficiary, the
retirant may elect to cancel the portion of the plan of payment
providing continuing lifetime benefits to that beneficiary. The
retirant shall receive the actuarial equivalent of the remainder
of the retirant's single lifetime benefit based on the number of
remaining beneficiaries, with no change in the amount payable to
any remaining beneficiary. In the case of termination of a marital
relationship, the election may be made only with the written
consent of the beneficiary or pursuant to an order of the court
with jurisdiction over termination of the marital relationship.
The amount designated by the member under division (B)(1) of
this section shall be not less than six times and not more than
thirty-six times the monthly amount that would be payable to the
member as a single lifetime benefit and shall not result in a
monthly allowance that is less than fifty per cent of that amount.
(C) Until the first payment is made to a former member under
section 3307.58 or 3307.59 of the Revised Code, the former member
may change the selection of a plan of payment.
(D)(1) If a deceased member was eligible for but had not yet
been awarded a service retirement benefit under section 3307.58 or
3307.59 of the Revised Code at the time of death, option 1 as
provided for in division (A)(1) of this section shall be paid to
the spouse or other sole dependent beneficiary.
(2) Beginning on a date selected by the board, which shall be
not later than July 1, 2004, the spouse or sole beneficiary may
elect, in lieu of option 1, a plan of payment consisting of both
of the following:
(a) A lump sum in an amount the spouse or other sole
dependent beneficiary designates that constitutes a portion of the
retirant's single life annuity;
(b) The actuarial equivalent of the remainder of the
retirant's single life annuity paid in a lesser amount as a
benefit under option 1 for life to the spouse or other sole
dependent beneficiary.
The amount designated by the spouse or other sole dependent
beneficiary under division (D)(2)(a) of this section shall be not
less than six times and not more than thirty-six times the monthly
amount that would be payable as the retirant's single life annuity
and shall not result in a monthly allowance that is less than
fifty per cent of that monthly amount.
(E) If the total benefit paid under this section is less than
the balance in the teachers' savings fund, the difference shall be
paid to the beneficiary provided under division (D)(1) of section
3307.562 of the Revised Code.
(F) In the case of a retirant who elected an optional plan
prior to September 15, 1989:
(1) The death of the spouse or other designated beneficiary
following retirement shall, at the election of the retirant,
cancel any optional plan selected at retirement to provide
continuing lifetime benefits to the spouse or other beneficiary
and return the retirant to a single lifetime benefit equivalent as
determined by the board.
(2) A divorce, annulment, or marriage dissolution shall, at
the election of the retirant, cancel any optional plan selected at
retirement to provide continuing lifetime benefits to the spouse
as designated beneficiary and return the retirant to a single
lifetime benefit equivalent as determined by the board if the
election is made with the written consent of the beneficiary or
pursuant to an order of a court of common pleas or the court of
another state with jurisdiction over the termination of the
marriage.
(G)(1) Following marriage or remarriage, both of the
following apply:
(a) A retirant who elected to receive a single lifetime
benefit or an optional plan of payment under division (A)(3) or
(4) of this section may elect a new optional plan of payment based
on the actuarial equivalent of the retirant's single lifetime
benefit, as determined by the board, except that if the. The new
plan must be a plan described in division (A)(1), (2), (3), (4),
or (6) of this section under which only the retirant's new spouse
is added as a beneficiary and the application for the new plan
must be received by the board prior to the retirant's death. A
spouse may not be added if there are four beneficiaries under
division (A)(4) of this section that must be retained pursuant to
a court order described under division (H)(1)(b) of this section
or if the amount payable to any beneficiary pursuant to such court
order would be reduced. A retirant who is receiving a retirement
allowance under an optional plan that provides for continuation of
benefits after death to a former spouse, the retirant may elect a
new optional plan of payment only with the written consent of the
former spouse or pursuant to an order of the court with
jurisdiction over the termination of the marriage, except that
consent of the former spouse is not required if the new optional
plan of payment will not affect payments to the former spouse.
(b) A retirant who is receiving a benefit pursuant to a plan
of payment providing for payment to a former spouse pursuant to a
court order described in division (H)(1)(b) of this section may
elect a new plan of payment under "option 4" with the retirant's
spouse as a beneficiary 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.
(2) 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 A valid election under division (G)(1) or
(2) of this division
section shall become effective on the date of
receipt by the board of an application on a form approved by the
board, but any. The election must be signed by the retirant and
received by the board prior to the retirant's death. Any change in
the amount of the benefit shall commence on the first day of the
month following the effective date of the plan.
(H)(1) Except as otherwise provided in this division and
division (H)(2) of this section, an application for service
retirement made pursuant to section 3307.58 or 3307.59 of the
Revised Code by a married person shall be considered an election
of a benefit under option 2 3 as provided for in division
(A)(2)(3) of this section under which one-half of the lesser
benefit payable during the life of the retirant will be paid after
death to the retirant's spouse for life as sole beneficiary. The
exceptions are as follows:
(a) The retirant selects an optional plan under division (A)
of this section providing for payment after death to the
retirant's spouse for life as sole beneficiary of more than
one-half of the lesser benefit payable during the life of the
retirant.
(b) A plan of payment providing for payment in a specified
amount continuing after the retirant's death to a former spouse is
required by a court order issued prior to the effective date of
retirement under section 3105.171 or 3105.65 of the Revised Code
or the laws of another state regarding division of marital
property.
(c) The retirant submits to the retirement board a written
statement signed by the spouse attesting that the spouse consents
to the retirant's election to receive a single lifetime annuity or
a payment under an optional benefit plan under which after the
death of the retirant the surviving spouse will receive less than
one-half of the lesser benefit payable during the life of the
retirant.
(d) Any other reason specified by the board.
(2) If a retirant is subject to division (H)(1)(b) of this
section and the board has received a copy of the order described
in that division, the board shall accept the retirant's election
of a plan of payment under this section only if the retirant
complies with both of the following:
(i)(a) The retirant elects a plan of payment that is in
accordance with the order described in division (H)(1)(b) of this
section.
(ii)(b) If the retirant is married, the retirant elects
"option 4" and designates the retirant's current spouse as a
beneficiary under that plan unless that spouse consents in writing
to not being designated a beneficiary under any plan of payment or
the board waives the requirement that the current spouse consent.
(3) An application for retirement shall include an
explanation of all of the following:
(a) That, if the member is married, unless the spouse
consents to another plan of payment or there is a court order
dividing marital property issued under section 3105.171 or 3105.65
of the Revised Code or the laws of another state regarding the
division of marital property that provides for payment in a
specified amount, the member's retirement allowance will be paid
under "option 2 3" as provided for in division (A)(2)(3) of this
section and consist of the actuarial equivalent of the member's
retirement allowance in a lesser amount payable for life and
one-half of the lesser allowance continuing after death to the
surviving spouse for the life of the spouse;
(b) A description of the alternative plans of payment
available with the consent of the spouse;
(c) That the spouse may consent to another plan of payment
and the procedure for giving consent;
(d) That consent is irrevocable once notice of consent is
filed with the board.
Consent shall be valid only if it is signed, in writing, and
witnessed by a notary public.
(4) If the retirant does not select an optional plan of
payment as described in division (H)(1)(a) of this section, no
court has ordered a plan of payment described in division
(H)(1)(b) of this section, and the board does not receive the
written statement provided for in division (H)(1)(c) of this
section, the board shall determine and pay the retirement
allowance in accordance with this division, except that the board
may provide by rule for waiver by the board of the statement and
payment of the benefits other than in accordance with this
division or payment under section 3307.56 of the Revised Code if
the retirant is unable to obtain the statement due to absence or
incapacity of the spouse or other cause specified by the board.
(I) For the purpose of determining actuarial equivalence
under this section, on the advice of an actuary employed by the
board, the board shall adopt mortality tables that may take into
consideration the membership experience of the state teachers
retirement system and may also include the membership experience
of the public employees retirement system and the school employees
retirement system.
Sec. 3307.62. (A) As used in this section, "qualifying
service credit" has the same meaning as in section 3307.58 of the
Revised Code.
(A) The state teachers retirement system shall provide
disability coverage to each member participating in the
STRS
defined benefit plan
described in sections 3307.50 to 3307.79 of
the Revised Code who meets either of the following:
(1) If the member earned service credit before July 1, 2013,
has at least five years of total
qualifying service credit;
(2) If the member did not earn any service credit before July
1, 2013, has at least ten years of qualifying service credit.
Not later than October 16, 1992, the state teachers
retirement board shall give each person who is a member on July
29, 1992, the opportunity to elect disability coverage either
under former section 3307.43 of the Revised Code or under former
section 3307.431 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 on 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 3307.63 of the Revised Code. To
be valid, an election must be made on the form provided by the
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 board. Once made, an election is
irrevocable, but if the member ceases to be a member of the
system, the election is void. If a person who makes an election
under this section also makes an election under section 145.35 or
3309.39 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 3307.631
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 3307.631 of the Revised Code.
The board may adopt rules governing elections made under this
division.
(B) 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, and if the member is participating in the plan
described in sections 3307.50 to 3307.79 of the Revised Code, has
at least five years of total service credit, and has disability
coverage under section 3307.63 or 3307.631 of the Revised Code
division (A) of this section.
The
The application for a disability benefit shall be made on a
form approved by the board. The benefit payable to any member
whose application is approved shall become effective on the first
day of the month next following the later of the following:
(1) The last day for which compensation was paid;
(2) The attainment of eligibility for a disability benefit.
(C) Medical examination of the member shall be conducted by a
competent, disinterested physician or physicians selected by the
board to determine whether the member is mentally or physically
incapacitated for the performance of duty by a disabling
condition, either permanent or presumed to be permanent for twelve
continuous months following the filing of an application. The
disability must have occurred since last becoming a member, or it
must have increased since last becoming a member to such an extent
as to make the disability permanent or presumably permanent for
twelve continuous months following the filing of an application.
(D) Application for a disability benefit must be made within
two years a two-year period from the date the member's
contributing service terminated, unless the 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 a teacher and unable to make
application, except that if the member did not earn any service
credit before July 1, 2013, application must be made within a
one-year period from the date contributing service terminated.
Application may not be made by any person receiving service
retirement benefits under section 3307.58 or 3307.59 of the
Revised Code or any person whose accumulated contributions
standing to the credit of the person's individual account in the
teachers' savings fund have been paid under section 3307.56 of the
Revised Code.
(E) If the physician or physicians determine that the member
qualifies for a disability benefit, the board concurs with the
determination, and the member agrees to medical treatment as
specified in division (G) of this section, the member shall
receive a disability benefit under section 3307.63 or 3307.631 of
the Revised Code. If such physician or physicians determine that
the member does not qualify for a disability benefit, the report
of the examiner or examiners shall be evaluated by a board of
medical review composed of at least three physicians appointed by
the retirement board.
(F) The state teachers retirement board shall render an order
determining whether or not the applicant shall be granted a
disability benefit. Notification to the applicant shall be issued,
and upon the request of an applicant who is denied a disability
benefit, a hearing or appeal relative to such order shall be
conducted in accordance with procedures established by the
retirement board.
(G) The state teachers retirement board shall adopt rules
requiring each 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.
(H) If 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 incapacitated for the
performance of duty, and the board denies the disability benefit,
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.
(I) The recipient of a disability allowance under section
3307.631 of the Revised Code whose allowance terminates under
division (C)(3) of that section due to age is not eligible to do
either of the following:
(1) Retire on disability under section 3307.63 of the Revised
Code;
(2) Receive a disability allowance under section 3307.631 of
the Revised Code.
Sec. 3307.63. A member participating in the STRS defined
benefit plan
described in sections 3307.50 to 3307.79 of the
Revised Code who has elected disability coverage under this
section, has not attained age sixty, and is determined by the
state teachers retirement board under section 3307.62 of the
Revised Code to qualify for a disability benefit shall be retired
on disability under this section.
Upon disability retirement, a member shall receive an annual
amount that shall consist of:
(A) An annuity having a reserve equal to the amount of the
member's accumulated contributions at that time;
(B) A pension that shall be the difference between the
annuity and an annual amount determined by multiplying the number
of years of Ohio service credit of such member, and in addition
the number of years and fraction of a year between the effective
date of the member's disability retirement and the date the member
attained age sixty, assuming continuous service, by eighty-six
dollars, or by two per cent of the member's final average salary,
whichever is greater. Such disability retirement shall not be less
than thirty per cent nor more than seventy-five per cent of the
member's final average salary, except that it shall not exceed any
limit to which the retirement system is subject under section 415
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26
U.S.C.A. 415, as amended.
If the member is not receiving a disability benefit under
section 3307.57 of the Revised Code, but is receiving a disability
benefit from either the public employees retirement system or the
school employees retirement system, then such member shall not be
eligible for service credit based upon the number of years and
fractions thereof between the date of disability and the date the
member attained age sixty as otherwise provided in this section.
A disability retirant under this section whose disability
retirement has been terminated, when eligible, may apply for
service retirement provided by section 3307.58 of the Revised
Code.
Sec. 3307.631. (A) A member participating in the STRS
defined benefit plan
described in sections 3307.50 to 3307.79 of
the Revised Code who has disability coverage under this section
and is determined by the state teachers retirement board under
section 3307.62 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' trust fund. The accumulated contributions
of the member shall remain in the teachers' 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
3307.57 or 3307.58 of the Revised Code;
(2) The date the allowance is terminated under section
3307.64 3307.48 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. 3307.66. (A) As used in this section, "physically:
(1) "Physically or mentally incompetent" means incapable of
earning a living because of a physically or mentally disabling
condition. Physical or mental incompetency may be determined by a
court or by a doctor of medicine or osteopathic medicine appointed
by the state teachers retirement board.
(2) "Qualifying service credit" has the same meaning as in
section 3307.58 of the Revised Code.
(B) For the purposes of this section:
(1) A qualified spouse is the surviving spouse of a deceased
member of the state teachers retirement system participating in
the STRS defined benefit plan described in sections 3307.50 to
3307.79 of the Revised Code who is one of the following:
(a) Age sixty-two Sixty-two years of age or older or any age
if the deceased member had ten or more years of Ohio service
credit;
(b) Caring for a qualified child;
(c) Adjudged physically or mentally incompetent at the time
of the member's death and has remained continuously incompetent;
(d) Any age if the deceased member was eligible for a service
retirement allowance as provided in section 3307.58 of the Revised
Code and the surviving spouse elects to receive a benefit under
division (C)(1) of this section.
(2) A qualified child
is a person who is the child of a
deceased member participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code who
is to whom both of the following apply:
(a) Unmarried Never married;
(b) Under Meets one of the following age-related
requirements:
(i) Is under age eighteen, or under;
(ii) Is under age twenty-two if 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, or any;
(iii) Is any age if adjudged physically or mentally
incompetent, if the person became incompetent prior to attainment
of age eighteen or prior to age twenty-two if attending an
institution of learning or training described in division
(B)(2)(b)(ii) of this section, and has remained continuously
incompetent.
(3) A qualified parent is a dependent parent of a deceased
member participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who is age
sixty-five or older.
(4) A person is a "qualified survivor" if the person
qualifies as a surviving spouse, child, or dependent parent.
(C) Except as provided in division (G)(1) of this section, in
lieu of accepting the payment of the accumulated account of a
member participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who dies before
service retirement, a beneficiary, as determined in section
3307.562 of the Revised Code, may elect to forfeit the accumulated
account and to substitute benefits under this division.
(1) If a deceased member was eligible for a service
retirement allowance as provided in section 3307.58 or 3307.59 of
the Revised Code, a surviving spouse or an individual designated
as the member's sole beneficiary pursuant to division (B) of
section 3307.562 of the Revised Code who was a qualified child or
dependent parent of the member or received one-half or more of
support from the member during the twelve-month period preceding
the member's death may elect to receive a monthly benefit computed
as the joint-survivor allowance designated as option 1 in section
3307.60 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) If a (a) A surviving spouse or other qualified survivor
may elect to receive monthly benefits under division (C)(2) of
this section if any of the following apply:
(i) The deceased member earned service credit before July 1,
2013, and had completed at least one and one-half years of credit
for Ohio qualifying service credit, with at least one-quarter year
of Ohio contributing qualifying service credit within the two and
one-half years prior to the date of death, or, if the member had
not earned service credit before July 1, 2013, had completed at
least five years of qualifying service credit and died not later
than one year after the date contributing service terminated.
(ii) The member was receiving at the time of death a
disability benefit as provided in section 3307.63 or 3307.631 of
the Revised Code, a surviving spouse or other qualified survivor
may elect to receive monthly benefits as provided in division
(C)(2) of this section.
(iii) The member was receiving, within twelve months prior to
the date of death, a disability benefit as provided in section
3307.63 or 3307.631 of the Revised Code and was contributing under
this chapter or Chapter 145. or 3309. of the Revised Code at the
time of death. The
(b) The surviving spouse or other qualified survivor shall
elect one of the following methods of calculating benefits elected
under division (C)(2) of this section, which shall, except as
provided in division (G)(1) of this section, remain in effect
without regard to any change in the number of qualified survivors:
|
|
|
|
Or |
|
|
(a)(i) Number |
|
Annual benefit as a |
|
Monthly benefit |
|
|
of qualified |
|
per cent of member's |
|
shall not be |
|
|
survivors |
|
final average salary |
|
less than |
|
|
|
1 |
|
25% |
|
$ 96 |
|
|
|
2 |
|
40 |
|
186 |
|
|
|
3 |
|
50 |
|
236 |
|
|
|
4 |
|
55 |
|
236 |
|
|
|
5 or more |
|
60 |
|
236 |
|
|
|
|
|
Annual benefit as a |
|
|
|
|
|
per cent of member's |
|
|
|
(b)(ii) Years of service |
|
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 |
|
|
(3)(a) If at the time of death the deceased member was
receiving a disability benefit under section 3307.63 or 3307.631
of the Revised Code, the benefit elected under division (C)(1) or
(2) of this section shall be increased by a percentage equal to
the total of any percentage increases the member received under
section 3307.67 of the Revised Code, plus any additional amount
the member received under this chapter while receiving the
disability benefit. The increase shall be based on the benefit
determined under division (C)(1) or (2) of this section. However,
the benefit used to calculate any future increases under section
3307.67 of the Revised Code shall be the benefit determined under
division (C)(1) or (2) of this section.
(b) If eligibility for a benefit under division (C)(1) or (2)
of this section is not established until more than one year after
the member's death, the annual benefit shall be increased by a
percentage equal to the total of the percentage increases that
would have been made under section 3307.67 of the Revised Code,
plus any additional amount that would have been paid under this
chapter had the benefit begun in the year in which the member
died. However, the benefit used to calculate any future increases
under section 3307.67 of the Revised Code shall be the benefit
determined under division (C)(1) or (2) of this section, plus any
additional amounts added to the benefit determined under this
division that established a new base benefit to the deceased
member.
(D) If a benefit is calculated pursuant to division
(C)(2)(a)(b)(i) of this section, benefits to a surviving spouse
shall be paid in the amount determined for the first qualifying
survivor in division (C)(2)(a)(b)(i) 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 qualifying service credit.
All other qualifying survivors shall share equally in the benefit
or remaining portion thereof.
If a benefit is calculated pursuant to division (C)(2)(b)(ii)
of this section and is payable to more than one qualified
survivor, the benefit shall be apportioned equally among the
qualified survivors, except that if there is a surviving spouse,
the portion of the benefit allocated to the surviving spouse shall
be as follows:
|
Number of
|
|
|
|
|
|
survivors |
|
Spouse's share of total benefit |
|
|
|
2 |
|
62.5% |
|
|
|
3 |
|
50.0% |
|
|
|
4 |
|
45.45% |
|
|
|
5 or more |
|
41.67% |
|
|
(E) Benefits A qualified survivor shall file with the board
an application for benefits payable under division (C)(2) of this
section. Payments shall begin or resume on whichever of the first
day of the month following the day a person becomes a qualified
survivor and terminate or be suspended on the first day of the
month following the day the person ceases to be a qualified
survivor applies:
(1) If application is received not later than one year after
the date of the member's death, benefits shall begin on the first
day of the month following the date of death.
(2) If application is received later than one year from the
date of death, benefits shall begin on the first day of the month
immediately following receipt of application by the board.
Benefits to a qualified survivor shall terminate upon a first
marriage, abandonment, or adoption, or during active military
service. The termination of benefits is effective on the first day
of the month following the day the person ceases to be a qualified
survivor. 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 the effective date of this amendment 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 3309.45 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.
(F) The beneficiary of a member who is also a member of the
public employees retirement system, or the school employees
retirement system, must forfeit the member's accumulated
contributions in those systems, if the beneficiary elects to
receive a benefit under division (C) of this section. Such benefit
shall be exclusively governed by section 3307.57 of the Revised
Code.
(G)(1) Regardless of whether the member is survived by a
spouse or designated beneficiary, if the state teachers retirement
system receives notice that a deceased member described in
division (C)(1) or (2) of this section has one or more qualified
children, all persons who are qualified survivors under division
(C)(2) of this section shall receive monthly benefits as provided
in division (C)(2) of this section.
If, after determining the monthly benefits to be paid under
division (C)(2) 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
3307.42 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 system did not receive notice that a deceased member
has one or more qualified children prior to making payment under
section 3307.562 of the Revised Code to a beneficiary as
determined by the system, the payment is a full discharge and
release of the system from any future claims under this section or
section 3307.562 of the Revised Code.
(2) If benefits under division (C)(2) of this section to all
persons, or to all persons other than a surviving spouse or 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 (C)(1) of this section, the
surviving spouse or beneficiary may elect to receive benefits
under division (C)(1) of this section. The benefit shall be
calculated based on the age of the spouse or beneficiary at the
time of the member's death and is effective on the first day of
the month following receipt by the board of an application for
benefits under division (C)(1) of this section.
(H) If the benefits due and paid under division (C) of this
section are in a total amount less than the member's accumulated
account that was transferred from the teachers' savings fund,
school employees retirement fund, and 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 3307.562 of the Revised Code.
Sec. 3307.661. On the death of a retirant or disability
benefit recipient who at the time of death is receiving, under the
STRS defined benefit plan
described in sections 3307.50 to 3307.79
of the Revised Code, a service retirement allowance or disability
benefit, the state teachers retirement system shall make a
lump-sum payment of one thousand dollars to any designated or
qualified beneficiary under division (D)(1) of section 3307.562 of
the Revised Code. If there is no beneficiary, the state teachers
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.
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 3307.28 of the Revised Code
on behalf of members participating in the STRS defined benefit
plan
described in sections 3307.50 to 3307.79 of the Revised Code,
and any earnings attributable to those contributions.
Sec. 3307.67. (A) The Except as provided in divisions (D)
and (E) of this section, the state teachers retirement board shall
annually increase each allowance or benefit payable under sections
3307.50 to 3307.79 of the Revised Code by three per cent, except
that no
the STRS defined benefit plan. Through July 31, 2013, the
increase shall be three per cent. On and after August 1, 2013, the
increase shall be two per cent. No allowance or benefit shall
exceed the limit
established by as annually determined pursuant
to section 415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26 U.S.C.A. 415, as amended, and regulations adopted
pursuant thereto but before August 1, 2013. The limit may be
adjusted in accordance with rules adopted by the board.
(B) The first increase is payable to all persons becoming
eligible for an allowance or benefit after June 30, 1971, upon
such persons receiving an allowance or benefit for twelve months.
The For an allowance or benefit beginning on or after August 1,
2013, except for an allowance or benefit that was immediately
preceded by a disability benefit granted prior to that date that
has been terminated, the first increase is payable upon such
persons receiving an allowance or benefit for sixty months.
The increased amount is payable for the ensuing twelve-month
period or until the next increase is granted under this section,
whichever is later. Subsequent increases shall be determined from
the date of the first increase paid to the former member in the
case of an allowance being paid a beneficiary under an option, or
from the date of the first increase to the survivor first
receiving an allowance or benefit in the case of an allowance or
benefit being paid to the subsequent survivors of the former
member.
The date of the first increase under this section becomes the
anniversary date for any future increases.
The allowance or benefit used in the first calculation of an
increase under this section shall remain as the base for all
future increases, unless a new base is established.
(B)(C) If payment of a portion of a benefit is made to an
alternate payee under section 3307.371 of the Revised Code,
increases under this section granted while the order is in effect
shall be apportioned between the alternate payee and the benefit
recipient in the same proportion that the amount being paid to the
alternate payee bears to the amount paid to the benefit recipient.
If payment of a portion of a benefit is made to one or more
beneficiaries under "option 4" under division (A)(4) of section
3307.60 of the Revised Code, each increase under this section
granted while the plan of payment is in effect shall be divided
among the designated beneficiaries in accordance with the portion
each beneficiary has been allocated.
The apportioned increases under this section shall begin with
increases granted on or after October 27, 2006.
(C)(D) The board shall not make the increases it would
otherwise make during the period July 1, 2013, through June 30,
2014, to persons granted an allowance or benefit prior to July 1,
2013. The board shall not increase any allowance or benefit
granted on July 1, 2013, until July 1, 2015.
(E) The board may adjust the increase payable under this
section if the board's actuary, in its annual actuarial valuation
required by section 3307.51 of the Revised Code or in other
evaluations conducted under that section, determines that an
adjustment does not materially impair the fiscal integrity of the
retirement system or is necessary to preserve the fiscal integrity
of the system.
(F) The board shall make all rules necessary to carry out
this section.
Sec. 3307.671. In December 1980, and in December of each
year thereafter, the state teachers retirement board may allocate
an amount from the guarantee fund created in division (E) of
section 3307.14 of the Revised Code to establish a temporary
supplemental benefit fund for the purpose of making a lump sum
benefit payment to all persons receiving an allowance, pension, or
benefit under sections 3307.50 to 3307.79 of the Revised Code the
STRS defined benefit plan for each of the twelve months preceding
the first day of the following January.
On or after July 1, 1980, and on or after the first day of
July of each year thereafter, the board may determine the amount
to be placed in a temporary supplemental benefit fund. Such
amount, if placed, shall be not more than twenty-five per cent of
the income from investments for the twelve months preceding the
first day of July not otherwise required to be credited to the
several funds set forth in section 3307.14 of the Revised Code.
The board shall adopt rules to administer this supplemental
benefit. The rules shall recognize the effective date of the
allowance, pension, or benefit and the years of Ohio service
credit for each recipient as an equitable basis for allocating the
amount payable to each recipient.
If the board determines that a supplemental benefit shall be
paid under this section, it shall pay such amount within sixty
calendar days following its allocation to the supplemental benefit
fund.
Amounts paid pursuant to this section shall not be included
in the base for increasing an allowance, pension, or benefit
provided in section 3307.67 of the Revised Code and shall not
incur any obligation or liability for future payments under this
section.
Sec. 3307.694. On and after July 1, 1968, all allowances,
pensions, or other benefits which were payable before July 1,
1968, pursuant to the provisions of former sections 3307.26,
3307.38, 3307.41, 3307.43, 3307.49, and 3307.50 of the Revised
Code, shall be increased by the percentages determined by the
effective date of the allowance, pension, or benefit, as follows:
|
Effective Date of Benefit |
|
|
|
|
|
Calendar Year |
|
Percentage of Increase |
|
|
|
1920 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 |
|
|
All increases determined by applying the percentages in the
preceding table shall be reduced by the dollar amount of the
increases granted in 1965 pursuant to divisions (D), (E), and (F)
of former section 3307.401 of the Revised Code, except that no
allowance, pension, or benefit shall be reduced below the amount
due on June 30, 1968, and no allowance granted under this section
shall be less than a total annual sum of thirty-six dollars.
The allowances increased by this section shall exclude any
monthly amount payable by reason of any voluntary deposits made
under the provisions of sections section 3307.26 and 3307.741 of
the Revised Code, except for prior service purchased before June
25, 1945.
The increases provided by this section shall be granted
notwithstanding the final average salary limitation in former
sections 3307.38 and 3307.43 of the Revised Code.
The cost of the increases provided by this section shall be
included in the employer's contribution rate provided by sections
3307.28, 3307.30, and 3307.31 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. 3307.70. (A) A member of the state teachers retirement
system who elects to purchase service credit described in section
3307.73, 3307.74, 3307.751, 3307.76, 3307.771, or 3307.78 of the
Revised Code shall do both of the following:
(1) Submit an application to the state teachers retirement
board in a manner or form approved by the board;
(2)(a) If the purchase will be completed not later than
December 31, 2013, for each year, or portion of a year, of credit
purchased, pay to the employees' savings fund the amount specified
by former section 3307.73, 3307.74, 3307.751, 3307.76, 3307.771,
or 3307.78 of the Revised Code as the appropriate section existed
immediately before the effective date of this section.
(b) If the purchase will not be completed until on or after
January 1, 2014, for each year, or portion of a year, of credit
purchased, pay to the employees' savings fund an amount specified
by the board that is equal to one hundred per cent of the
actuarial liability resulting from the purchase of that year or
portion of a year of credit as determined by an actuary employed
by the board.
(c) If, on the effective date of this amendment, the purchase
is being made through a payroll deduction plan under section
3307.701 of the Revised Code and at least one deduction has been
made, pay to the employees' savings fund the amount specified by
former section 3307.73, 3307.74, 3307.751, 3307.76, 3307.771, or
3307.78 of the Revised Code as the appropriate section existed
immediately before the effective date of this section.
(B)(1) A purchase shall be considered completed for purposes
of division (A)(2)(a) of this section only if the member's
application is received by the retirement system as completed not
later than December 31, 2013, and all payments are received by the
retirement system not later than June 30, 2014.
(2) A member purchasing credit through a payroll deduction
plan under division (A)(1)(c) of this section may pay in a single
payment the balance of the cost of the credit.
(C) Subject to board rules, a member may choose to purchase
only part of any eligible service credit in any one payment.
(D) The board shall adopt rules establishing criteria for
determining eligibility for purchases of service credit and
procedures for purchases of credit under this section.
Any determination of the board under this section shall be
final.
(E) Service credit purchased under this section shall be
included in the member's total service credit.
If a member dies or withdraws from service, any payment made
by the member under this section shall be considered as
accumulated contributions of the member.
Sec. 3307.70 3307.701. (A) The state teachers retirement
board may establish by rule payroll deduction plans for payment of
the following:
(1) The cost of restoring service credit under section
3307.71 or 3307.711 of the Revised Code or purchasing any service
credit members of the state teachers retirement system are
eligible to purchase under this chapter;
(2) Charges for participation in programs established under
section 3307.391 of the Revised Code;
(3) Deposits under section 3307.393 of the Revised Code and
any charges for participating in the program established under
that section.
(B) In addition to any other matter considered relevant by
the board, the rules adopted under this section shall specify all
of the following:
(1) The types of service credit that may be paid for through
payroll deduction, including the section of the Revised Code that
authorizes the purchase of each type of service credit for which
payment may be made by payroll deduction;
(2) The procedure for informing the member's employer and the
system that the member wishes to use payroll deduction to purchase
service credit or pay for participation in programs established
under section 3307.391 of the Revised Code;
(3) The procedure to be followed by the system and employers
to determine for each request the amount to be deducted, the
number of deductions to be made, and the interval at which
deductions will be made. The rules may provide for a minimum
amount for each deduction. They may also provide for a maximum
number of deductions for the purchase of any type of service
credit.
(4) The procedure to be followed by employers in transmitting
amounts deducted from the compensation of their employees to the
system;
(5) The procedure to be followed by the system in crediting
service credit to members who choose to purchase it through
payroll deduction;
(6) The time period within which employers are required to
transmit amounts deducted from payrolls to the system;
(7) Procedures to be followed by the system and the member's
employer for the member to pay in a single payment the balance of
the cost of the credit when a member separates from service from
the employer administering the member's payroll deduction plan.
(C)(1) If the board establishes a payroll deduction plan
under this section, it shall certify to the member's employer, for
each member for whom deductions are to be made, the amount of each
deduction and the payrolls from which deductions are to be made.
The employer shall make the deductions as certified and transmit
the amounts deducted in accordance with the rules established by
the board under this section.
(2) If an employer does not transmit amounts deducted from
the compensation of an employee to the system within the time
period specified in rules adopted under division (B)(6) of this
section, the employer shall pay interest on the deducted amount
compounded annually at a rate to be determined by the board from
the date the amount is deducted to the date it is transmitted to
the system.
(D) Rules adopted under this section shall not affect any
right to purchase service credit conferred by any other section of
the Revised Code, including the right of a member under any such
section to purchase only part of the service credit the member is
eligible to purchase.
(E) No payroll deduction made pursuant to this section may
exceed the amount of a member's net compensation after all other
deductions and withholdings required by law.
(F) No payments made to the system under this section shall
affect any contribution required by section 3307.26 or 3307.28 of
the Revised Code.
Sec. 3307.71. Except as provided in this section, section
3305.05, or section 3305.051 of the Revised Code, a member or
former member of the state teachers retirement system
participating in the STRS defined benefit plan
described in
sections 3307.50 to 3307.79 of the Revised Code who has at least
one and one-half years of contributing service credit in this
system, the public employees retirement system, the school
employees retirement system, the Ohio police and fire pension
fund, or the state highway patrol retirement system after the
withdrawal and cancellation of service credit in this system may
restore all or part of such service credit by repayment of the
amount withdrawn. To this amount shall be added interest at a rate
per annum, compounded annually, to be determined by the state
teachers retirement board. Interest shall be payable from the
first of the month of withdrawal through the month of repayment. A
member may choose to purchase only part of such credit in any one
payment. The cost for restoring partial service shall be
calculated as the proportion that it bears to the total cost at
the time of purchase and is subject to the rules established by
the board. 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.
The total payment to restore canceled service credit shall be
credited as follows:
(A) The amount that equals contributions made pursuant to
section 3307.26 of the Revised Code, plus any interest on the
contributions paid by the member pursuant to this section, to the
member's account in the teachers' savings fund;
(B) The amount that equals the amount paid under section
3307.563 of the Revised Code, to the employers trust fund;
(C) The remainder of the payment to restore canceled service
credit, to the guarantee fund.
Sec. 3307.711. (A) A member of the state teachers retirement
system who has at least eighteen months of contributing service
credit in the system, the police and firemen's disability and
pension fund, public employees retirement system, school employees
retirement system, or state highway patrol retirement system, and
is a former member of or no longer contributing to the public
employees retirement system or school employees retirement system
may restore service credit under section 145.31 or 3309.26 of the
Revised Code by making payments pursuant to this section through a
payroll deduction plan established under section
3307.70 3307.701
of the Revised Code. A member seeking to restore this service
credit shall notify the state teachers retirement system on a form
approved by the state teachers retirement board. After receiving
the notice, the state teachers retirement system shall request
that the former retirement system calculate under section 145.312
or 3309.262 of the Revised Code the cost to the member to restore
service credit for each year or portion of a year of service for
which the member seeks to restore the service credit. The amount
the former retirement system certifies as the cost of restoring
the service credit, plus interest described in division (B) of
this section, is the cost to the member of restoring the service
credit. On receiving the certification from the former retirement
system, the state teachers retirement system shall notify the
member of the cost.
(B) For each year or portion of a year of service credit
restored under section 145.31 or 3309.26 of the Revised Code, a
member shall pay to the state teachers retirement system the
amount certified by the former retirement system plus interest at
a rate specified by the former retirement system under section
145.312 or 3309.262 of the Revised Code for the period during
which deductions are made under section 3307.70 3307.701 of the
Revised Code.
(C) The state teachers retirement board shall annually notify
the former retirement system that a payment to restore service
credit under section 145.31 or 3309.26 of the Revised Code has
been made. At the time the payment is transferred under division
(D) of this section, the former retirement system shall restore
the service credit for the year or portion of a year for which the
payment was made.
(D) On application for a payment of accumulated contributions
or an age and service retirement, disability, or survivor benefit
under Chapter 145., 3307., or 3309. of the Revised Code by a
member who made payments under this section to restore service
credit in a former retirement system, the state teachers
retirement system shall pay to the former retirement system an
amount equal to the total amount paid by the member under this
section.
(E) The board shall adopt rules to implement this section.
Sec. 3307.712. After receiving a request from the public
employees retirement system under division (A) of section 145.311
or the school employees retirement system under division (A) of
section 3309.261 of the Revised Code, the state teachers
retirement system shall do both of the following:
(A) Calculate and certify to the requesting retirement system
the cost to a former member to restore service credit under
section 3307.71 of the Revised Code for each year or portion of a
year for which the former member seeks to restore service credit
under that section.
(B) Inform the requesting retirement system of the rate of
interest charged to a member under a payroll deduction plan
authorized under section 3307.70 3307.701 of the Revised Code.
Sec. 3307.72. The state teachers retirement board shall
credit years of service to a member participating in the STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code who was employed for teaching service by an
employer who failed to make retirement contributions to the state
teachers retirement system during any year or years beginning on
or after September 1, 1920, if the member deposits in the
teachers' savings fund a per cent of the member's annual
compensation for such service, at the rate of contribution then in
effect, plus interest compounded annually at a rate established by
the board. The member may choose to purchase only part of such
credit in any one payment, subject to board rules.
The employer shall, upon the request of such member, certify
the amount of compensation by years of employment to the secretary
of the board. For teaching service on or after July 1, 1978, the
employer shall pay an amount equal to the employer contributions
due at the time the service occurred, plus compound interest at a
rate determined by the board from the date the service began to
the date of payment.
Sec. 3307.73. (A)(1) Except as provided in division (A)(2)
of this section, a member of the state teachers retirement system
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who has at least
eighteen months of contributing service in the system, the public
employees retirement system, or school employees retirement system
who chose to be exempted from membership in one or more of the
systems pursuant to section 145.03, or 3309.23 of the Revised
Code, or former section 3307.25 or 3309.25 of the Revised Code, or
was exempt under section 3307.24 of the Revised Code, may purchase
credit under section 3307.70 of the Revised Code for each year or
portion of a year of service for which the member was exempted.
(2) A member may not purchase credit under this section for
service that was exempted from contribution under section 3307.24
of the Revised Code and subject to the tax on wages imposed by the
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26
U.S.C.A. 3101, as amended.
(B) For each year or portion of a year of credit purchased
under this section, a member shall pay to the state teachers
retirement system an amount determined by multiplying the member's
compensation for the twelve months of contributing service
preceding the month in which the member applies to purchase the
credit by a percentage rate established by rule of the state
teachers retirement board adopted under division (F) of this
section.
(C) Subject to board rules, a member may purchase all or part
of the credit the member is eligible to purchase under this
section in one or more payments. If the member purchases the
credit in more than one payment, compound interest at a rate
specified by rule of the board shall be charged on the balance
remaining after the first payment is made.
(D) Credit purchasable under described in this section shall
not exceed one year of service for any twelve-month period. If the
period of service for which credit is purchasable under this
section is concurrent with a period of service that will be used
to calculate a retirement benefit from this system, the public
employees retirement system, or school employees retirement
system, the amount of the credit shall be adjusted in accordance
with rules adopted by the board.
(C) A member who is also a member of the public employees
retirement system or school employees retirement system shall
purchase credit for any service for which the member exempted the
member's self under section 145.03 or 3309.23 of the Revised Code,
or former section 3307.25 or 3309.25 of the Revised Code, or was
exempt under section 3307.24 of the Revised Code, from the
retirement system in which the member has the greatest number of
years of service credit. If the member receives benefits under
section 3307.57 of the Revised Code, the state retirement system
that determines and pays the retirement benefit shall receive from
the other system or systems the amounts paid by the member for
purchase of credit for exempt service plus interest at the
actuarial assumption rate of the system paying that amount. The
interest shall be for the period beginning on the date of the
member's last payment for purchase of the credit and ending on the
date of the member's retirement.
(E) If a member dies or withdraws from service, any payment
made by the member under this section shall be considered as
accumulated contributions of the member.
(F) The retirement board shall adopt rules to implement this
section.
Sec. 3307.74. (A) Service credit purchased under this
section shall be included in the member's total service credit.
Credit may be purchased under section 3307.70 of the Revised Code
by a member participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code for
the following:
(1) Teaching service in a public or private school, college,
or university of this or another state, and for teaching service
in any school or entity operated by or primarily for the United
States
government citizens. Teaching credit purchased under this
section shall be limited to service rendered in schools, colleges,
or universities chartered or accredited by the appropriate
governmental agency.
(2) Public service with another state or the United States
government, provided that such credit shall be limited to service
that would have been covered by the state teachers retirement
system, school employees retirement system, Ohio police and fire
pension fund, state highway patrol retirement system, or public
employees retirement system if served in a comparable public
position in this state.
(3) Service for which contributions were made by the member
or on the member's behalf to a municipal retirement system in this
state, except that if the conditions specified in section 3307.762
of the Revised Code are met, service credit for this service may
be purchased only in accordance with section 3307.763 of the
Revised Code.
The number of years of service purchased under credit for
service described in this section shall not exceed the lesser of
five years or the member's total accumulated number of years of
Ohio service.
(B)(1) Except as otherwise provided in division (B)(2) of
this section, for each year of service purchased under this
section, a member shall pay to the state teachers retirement
system for credit to the member's accumulated account an amount
equal to the member's retirement contribution for full-time
employment for the first year of Ohio service following
termination of the service to be purchased. To this amount shall
be added an amount equal to compound interest at a rate
established by the state teachers retirement board from the date
of membership in the state teachers retirement system to the date
of payment.
(2) For each year of service described in division (A) of
this section that commenced on or after July 1, 1989, and, without
regard to when the service commenced, for each year of service
purchased under division (A) of this section by a member who first
established membership in the retirement system on or after July
1, 1989, the member shall pay to the retirement system for credit
to the member's individual account an amount specified by the
state teachers retirement board that shall be not less than fifty
per cent of the additional liability resulting from the purchase
of that year of service as determined by an actuary employed by
the board.
(3) A member may choose to purchase only part of the credit
the member is eligible to purchase under this section in any one
payment, subject to board rules Credit shall be purchased under
this section in accordance with section 3307.70 of the Revised
Code.
(C) A With the exception of social security, a member is
ineligible to purchase under credit for service described in this
section service that is used in the calculation of any retirement
benefit that has been paid, is currently being paid, or is payable
in the future to such member under any other retirement program,
except social security or service for five or more years for which
contributions were made to a defined contribution plan if the
member has been paid all contributions standing to the member's
credit or is not entitled to be paid any such contributions. At
the time the credit is purchased, the member shall certify on a
form furnished by the board that the member does and will conform
to this requirement.
(D) Credit purchased under for service described in this
section may be combined pursuant to section 3307.57 of the Revised
Code with credit purchased under sections 145.293 and 3309.31 of
the Revised Code, except that not more than a total of five years'
service credit
purchased under for service described in this
section and sections 145.293 and 3309.31 of the Revised Code shall
be used in determining retirement eligibility or calculating
benefits under section 3307.57 of the Revised Code.
(E) The retirement board shall establish a policy to
determine eligibility to purchase credit under this section, and
its decision shall be final.
Sec. 3307.75. (A) As used in this section, "armed forces" of
the United States includes both:
(1) Army, navy, air force, marine corps, coast guard,
auxiliary corps as established by congress, army nurse corps, navy
nurse corps, red cross nurse serving with the army, navy, air
force, or hospital service of the United States, full-time service
with the American red cross in a combat zone, and such other
service as is designated by the congress as included therein;
(2) Personnel of the Ohio national guard, the Ohio military
reserve, the Ohio naval militia, and the reserve components of the
armed forces enumerated in division (A)(1) of this section who are
called to active duty pursuant to an executive order issued by the
president of the United States or an act of congress.
(B) Upon presentation of an honorable discharge or
certificate of service, and subject to rules adopted by the state
teachers retirement board, any member of the state teachers
retirement system participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code who
was or is out of active service as a teacher by reason of having
become a member of the armed forces of the United States on active
duty or service shall be considered as on indefinite leave of
absence and shall have such service not in excess of ten years
considered as the equivalent of prior service, provided the member
returns to service as a teacher within two years after the
effective date of discharge and establishes one year of service
credit, or becomes a member of either the public employees
retirement system or the school employees retirement system within
such two-year period and establishes at least one year of service
credit. The retirement board shall extend such two-year period an
additional year if failure to return is due to continuous
professional training as determined by said board. If such member,
otherwise qualified for such credit, canceled membership by the
withdrawal of the member's accumulated account, such military
service credit shall be granted following the restoration of the
member's canceled service credit as provided by section 3307.71 of
the Revised Code. Any member of the state teachers retirement
system or anyone who becomes a new entrant who is assigned or
called to take charge of special training for essential national
defense work or veterans' training courses in any of the public
schools or universities of the state may make regular
contributions to the state teachers retirement system even though
the member's or new entrant's salary is paid from federal funds,
provided the member's or new entrant's salary is disbursed by an
employer.
(C) A member of the state teachers retirement system is
ineligible to receive service credit under this section for any
year of military service credit used in the calculation of any
retirement benefit currently being paid to the member or payable
in the future under any other retirement program, except social
security, or used to obtain service credit pursuant to section
3307.751 or 3307.752 of the Revised Code. At the time such credit
is requested, the member shall certify on a form supplied by the
board that the member does and will conform to this requirement.
This division does not cancel any military service credit earned
prior to March 15, 1979.
Sec. 3307.751. (A)(1) A member participating in the
STRS
defined benefit plan described in sections 3307.50 to 3307.79 of
the Revised Code may purchase service credit that shall be
considered as the equivalent of Ohio service under section 3307.70
of the Revised Code for each year or portion of a year of service
incurred by reason of having been on active duty as a member of
the armed forces of the United States, as defined in section
3307.75 of the Revised Code.
(2) As used in division (A)(2) of this section, "reserves"
means a reserve component of any of the armed forces of the United
States enumerated in division (A)(1) of section 3307.75 of the
Revised Code.
On presentation of documentation of the service and subject
to state teachers retirement board rules, a member participating
in the STRS defined benefit plan described in sections 3307.50 to
3307.79 of the Revised Code may purchase service credit that shall
be considered as the equivalent of Ohio service under section
3307.70 of the Revised Code for each year or portion of a year of
service incurred by reason of having been on active duty as a
member of the Ohio national guard or reserves for which the member
is not eligible to purchase credit under division (A)(1) of this
section. For purposes of division (A)(2) of this section, active
duty in the reserves or the Ohio national guard includes assembly
for drill and instruction; training at encampments, maneuvers,
outdoor target practice, or other exercises; and any training or
duty in this state ordered by the governor.
(3) Credit shall not be granted for any period of duty during
which the member was contributing to the retirement system.
The credit may be purchased at any time prior to the
effective date of a benefit. The number of years purchased under
this division shall not exceed five.
(B) For the purposes of this division, "prisoner of war"
means any regularly appointed, enrolled, enlisted, or inducted
member of the armed forces of the United States who was captured,
separated, and incarcerated by an enemy of the United States.
A member participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code may
purchase service credit that shall be considered as the equivalent
of Ohio service under section 3307.70 of the Revised Code for each
year of service such member was a prisoner of war. The number of
years purchased under this division shall not exceed five. Service
credit may be purchased under this division for the same years of
service used to purchase service credit under described in
division (A) of this section.
(C) The total number of years described in this section that
may be purchased under this section shall not exceed the member's
total accumulated number of years of Ohio service.
(D)(1) Except as otherwise provided in division (D)(2) or (3)
of this section, for each year or portion of a year of service
purchased under division (A) or (B) of this section, the member
shall pay to the state teachers retirement system for credit to
the member's accumulated account an amount determined by the
member rate of contribution in effect at the time the military
service began multiplied by the member's annual compensation for
full-time employment during the first year of service in Ohio
following termination of military service. If, however, a limit on
maximum salary or maximum contribution was in effect at the time
the military service began, the limit shall be applied to the
salary received during the first year of service in Ohio to
calculate the amount of payment. To this amount shall be added an
amount equal to compound interest at a rate established by the
state teachers retirement board from the date active military
service terminated to date of payment.
(2) For each year of service purchased under division (A)(1)
or (B) of this section for military service that commenced on or
after July 1, 1989, and, without regard to when the military
service commenced, for each year of service purchased under
division (A) or (B) of this section by a member who first
established membership in the retirement system on or after July
1, 1989, the member shall pay to the retirement system for credit
to the member's individual account an amount specified by the
state teachers retirement board that shall be not less than fifty
per cent of the additional liability resulting from the purchase
of that year of service as determined by an actuary employed by
the board.
(3) For each year or portion of a year of service in the
reserves or Ohio national guard purchased under division (A)(2) of
this section, the member shall pay to the retirement system for
credit to the member's individual account an amount equal to one
hundred per cent of the additional liability resulting from the
purchase of that year of service as determined by an actuary
employed by the board. The retirement system shall calculate the
number of years or portions of a year of credit the member is
eligible to purchase under division (A)(2) of this section by
dividing the number of days actually served by three hundred
sixty-five.
(4) A member may choose to purchase only part of the credit
the member is eligible to purchase under this section in any one
payment, subject to board rules.
(E) A member of the state teachers retirement system is
ineligible to purchase service credit under described in this
section for any year of military service that was:
(1) Used in the calculation of any retirement benefit
currently being paid to such member or payable in the future under
any other retirement program, except for retired pay for
non-regular service under Chapter 1223 of Section 1662 of Title
XVI of the "National Defense Authorization Act for Fiscal Year
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or
social security;
(2) Used to obtain service credit pursuant to section 3307.75
or 3307.752 of the Revised Code.
At the time the credit is purchased, the member shall certify
on a form furnished by the board that the member does and will
conform to this requirement.
(F)(E) Credit purchased under described in this section may
be combined pursuant to section 3307.57 of the Revised Code with
credit for military service purchased under sections 145.301 and,
742.52, 3309.021, and 5505.25 of the Revised Code or military
service credit purchased in the Cincinnati retirement system,
except that not more than a total of five years of credit
purchased under described in division (A) of this section,
division (B) of section 145.301, and
division (A) of section
742.52, division (A) of section 3309.021, and division (A) of
section 5505.25 of the Revised Code and not more than a total of
five years of credit
purchased under described in division (B) of
this section, division (C) of section 145.301,
and division (B) of
section 742.52, division (B) of section 3309.021 and division (B)
of section 5505.25 of the Revised Code or military service credit
purchased in the Cincinnati retirement system shall be used in
determining retirement eligibility or calculating benefits under
section 3307.57 of the Revised Code.
Sec. 3307.752. (A) As used in this section:
(1) "Service in the uniformed services" means the performance
of duty on a voluntary or involuntary basis in a uniformed service
under competent authority and includes active duty, active duty
for training, initial active duty for training, inactive duty
training, full-time national guard duty, and a period for which a
person is absent from a position of employment for the purpose of
an examination to determine the fitness of the person to perform
any such duty.
(2) "Uniformed services" means the army, navy, air force,
marine corps, coast guard, or any reserve components of such
services; national guard; the commissioned corps of the United
States public health service; service as a red cross nurse with
the army, navy, air force, or hospital service of the United
States, army nurse corps, navy nurse corps, or serving full-time
with the American red cross in a combat zone; and any other
category of persons designated by the president in time of war or
emergency.
(B) On the re-employment of a member participating in the
STRS defined benefit plan described in sections 3307.50 to 3307.79
of the Revised Code as a teacher by the same public employer that
employed the member prior to the member's service in the uniformed
services, the member may apply to the state teachers retirement
system on a form provided by the system to purchase service credit
for service in the uniformed services that shall be considered the
equivalent of Ohio service credit. On receipt of the application,
the system shall request from the employer that employed the
member as a teacher prior to the military service a certification
that the member was employed by the employer prior to, and
returned to employment with the employer within three months of
honorable discharge or release from, service in the uniformed
services. If the employer can so certify, it shall do so and shall
pay to the system the employer's contribution required by this
section. The service credit shall be granted the member if all of
the following requirements are met:
(1) The member was a member of and maintained membership in
the state teachers retirement system throughout service in the
uniformed services;
(2) The member was out of active service as a teacher by
reason of service in the uniformed services;
(3) The member was honorably discharged or released from
service in the uniformed services;
(4) The member pays contributions to the system in accordance
with this section.
(C) Credit may be purchased pursuant to this section at any
time prior to receipt of a benefit. The member may choose to
purchase only part of the credit in any one payment, subject to
board rules. The system shall grant service credit under this
section, not to exceed five years, for each period of service in
the uniformed services for which contributions have been received.
(D) For service purchased under this section, the member and
the member's employer, subject to board rules, shall pay to the
system for credit to the member's accumulated account an amount
equal to the contributions that would have been paid pursuant to
sections 3307.26 and 3307.28 of the Revised Code if the member had
not been out of active service as a teacher by reason of service
in the uniformed services.
If a member pays all or any portion of the contributions
required by section 3307.26 of the Revised Code later than the
lesser of five years or a period that is three times the member's
period of service in the uniformed services beginning from the
later of the member's date of re-employment as a teacher or
October 29, 1996, an amount equal to compound interest at a rate
established by the board from the later of the member's date of
re-employment as a teacher or October 29, 1996, to the date of
payment shall be added to the remaining amount to be paid by the
member to purchase service credit under this section.
(E) This section does not cancel any military service credit
or service in the uniformed services earned or granted under this
chapter prior to October 29, 1996.
(F) If a member purchased service credit under section
3307.751 of the Revised Code prior to October 29, 1996, is not
receiving a benefit, and would have been eligible to obtain
service credit pursuant to this section had it been in effect at
the time of purchase, the system shall refund the amounts paid by
the member for the purchase if both of the following requirements
are met:
(1) The member makes a written request for a refund on a form
provided by the system;
(2) The member pays to the system the contributions required
by this section.
(G) If the member meets the requirements of division (F) of
this section, the employer shall pay to the system the employer's
contributions required by this section.
Sec. 3307.76. (A) A member of the state teachers retirement
system participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code shall, in
computing years of total service, be given full credit for time
served in the public employees retirement system under Chapter
145. of the Revised Code or in the school employees retirement
system under Chapter 3309. of the Revised Code, provided that the
member pays to the state teachers retirement system the amount
specified in division (B) of this section.
(B) For each year of service described in division (A) of
this section, a member shall pay an amount specified by the state
teachers retirement board, which shall be not less than fifty per
cent of the additional liability resulting from the purchase of
that year of service as determined by an actuary employed by the
board.
(C) A member may choose to purchase only part of the credit
the member is eligible to purchase under this section in any one
payment, subject to board rules if the member purchases the credit
in accordance with section 3307.70 of the Revised Code.
A member is ineligible to purchase credit under described in
this section if credit for the service may be obtained from the
public employees retirement system or school employees retirement
system or if the credit is for service that is used in the
calculation of any retirement benefit
that has been paid, is
currently being paid, or is payable in the future to the member.
Sec. 3307.761. (A) As used in this section and section
3307.765 of the Revised Code:
(1) "Uniform retirement system" or "uniform system" means the
Ohio police and fire pension fund or state highway patrol
retirement system.
(2) "Military service credit" means credit purchased or
obtained under this chapter or Chapter 742. or 5505. of the
Revised Code for service in the armed forces of the United States.
(B) A member of the state teachers retirement system
participating in the STRS defined benefit plan
described in
sections 3307.50 to 3307.79 of the Revised Code who has
contributions on deposit with a uniform retirement system shall,
in computing years of total service, be given full credit for
service credit earned under Chapter 742. or 5505. of the Revised
Code or for military service credit if a transfer to the state
teachers retirement system is made under this division. At the
request of the member, the uniform system shall transfer to the
state teachers retirement system, for each year of service, the
sum of the following:
(1) An amount equal to the member's accumulated contributions
to the uniform system and any payments by the member for military
service credit;
(2) An amount equal to the lesser of the employer's
contributions to the uniform system or the amount that would have
been contributed by the employer for the service had the member
been a member of the state teachers retirement system at the time
the credit was earned;
(3) Interest, determined as provided in division (F) of this
section, on the amounts specified in divisions (B)(1) and (2) of
this section from the last day of the year for which the service
credit in the uniform system was earned or in which payment was
made for military service credit was purchased or obtained to the
date the transfer is made.
(C) A member participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code who
has at least one and one-half years of contributing service with
the state teachers retirement system, is a former member of a
uniform retirement system, and has received a refund of
contributions to that uniform system shall, in computing years of
total service, be given full credit for service credit earned
under Chapter 742. or 5505. of the Revised Code or for military
service credit if, for each year of service, the state teachers
retirement system receives the sum of the following:
(1) An amount, which shall be paid by the member, equal to
the amount refunded by the uniform system to the member for that
year for accumulated contributions and payments for military
service credit, with interest at a rate established by the state
teachers retirement board on that amount from the date of the
refund to the date of the payment;
(2) Interest, which shall be transferred by the uniform
system, on the amount refunded to the member that is attributable
to the year of service from the last day of the year for which the
service credit was earned or in which payment was made for
military service credit to the date the refund was made;
(3) An amount, which shall be transferred by the uniform
system, equal to the lesser of the employer's contributions to the
uniform system or the amount that would have been contributed by
the employer for the service had the member been a member of the
state teachers retirement system at the time the credit was
earned, with interest on that amount from the last day of the year
for which the service credit was earned or in which payment was
made for military service to the date of the transfer.
On receipt of payment from the member, the state teachers
retirement system shall notify the uniform system, which, on
receipt of the notice, shall make the transfer required by this
division. Interest shall be determined as provided in division (F)
of this section.
A member may choose to purchase only part of the credit the
member is eligible to purchase under this division in any one
payment, subject to rules of the state teachers retirement board.
(D) A member is ineligible to obtain credit under this
section for service that is used in the calculation of any
retirement benefit currently being paid or payable in the future
under any other retirement program or for service credit that may
be transferred under section 3307.765 of the Revised Code.
(E) If a member of the state teachers retirement system who
is not a current contributor elects to obtain credit under section
742.21 or 5505.40 of the Revised Code for service for which the
member contributed to the system or purchased for military service
credit, the system shall transfer to the uniform retirement
system, as applicable, the amount specified in division (D) of
section 742.21 or division (B)(2) of section 5505.40 of the
Revised Code.
(F) Interest charged under this section shall be calculated
separately for each year of service credit. Unless otherwise
specified in this section it shall be calculated at the lesser of
the actuarial assumption rate for that year of the state teachers
retirement system or of the uniform retirement system in which the
credit was earned. The interest shall be compounded annually.
(G) The state teachers retirement board shall credit to a
member's account in the teachers' savings fund the amounts
described in divisions (B)(1) and (C)(1) of this section, except
that the interest paid by the member under division (C)(1) of this
section shall be credited to the employers' trust fund. The board
shall credit to the employers' trust fund the amounts described in
divisions (B)(2) and (3) and (C)(2) and (3) of this section.
(H) At the request of the state teachers retirement system,
the Ohio police and fire pension fund or state highway patrol
retirement system shall certify to the state teachers retirement
system a copy of the records of the service and contributions of a
state teachers retirement system member who seeks service credit
under this section.
Sec. 3307.763. (A) If the conditions described in division
(B) of section 3307.762 of the Revised Code are met, a member of
the state teachers retirement system who is not receiving a
pension or benefit from the state teachers retirement system is
eligible to obtain credit for service as a member of the
Cincinnati retirement system under this section.
(B) A member of the state teachers retirement system
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who has
contributions on deposit with, but is no longer contributing to,
the Cincinnati retirement system shall, in computing years of
service credit, be given credit for service credit earned under
the Cincinnati retirement system or purchased or obtained as
military service credit if, for each year of service, the
Cincinnati retirement system transfers to the state teachers
retirement system the sum of the following:
(1) The amount contributed by the member, or, in the case of
military service credit, paid by the member, that is attributable
to the year of service;
(2) An amount equal to the lesser of the employer's
contributions to the Cincinnati retirement system or the amount
that would have been contributed by the employer for the service
had the member been a member of the state teachers retirement
system at the time the credit was earned;
(3) Interest on the amounts specified in divisions (B)(1) and
(2) of this section from the last day of the year for which
service credit was earned or in which payment was made for
military service credit to the date the transfer is made.
(C) A member of the state teachers retirement system with at
least one and one-half years of contributing service credit with
the state teachers retirement system who has received a refund of
the member's contributions to the Cincinnati retirement system
shall, in computing years of service, be given credit for service
credit earned under the Cincinnati retirement system or purchased
or obtained as military service credit if, for each year of
service, the state teachers retirement system receives the sum of
the following:
(1) An amount, paid by the member, equal to the sum of the
following:
(a) The amount refunded by the Cincinnati retirement system
to the member for that year for contributions and payments for
military service credit, with interest at a rate established by
the state teachers retirement board on that amount from the date
of the refund to the date of payment;
(b) The amount of interest, if any, the member received when
the refund was made that is attributable to the year of service.
(2) An amount, transferred by the Cincinnati retirement
system to the state teachers retirement system, equal to the sum
of the following:
(a) Interest on the amount refunded to the member that is
attributable to the year of service from the last day of the year
for which the service credit was earned or in which payment was
made for military service credit to the date the refund was made;
(b) An amount equal to the lesser of the employer's
contributions to the Cincinnati retirement system or the amount
that would have been contributed by the employer for the service
had the member been a member of the state teachers retirement
system at the time the credit was earned, with interest on that
amount from the last day of the year for which the service credit
was earned to the date of the transfer.
(D) The amount transferred under division (C)(2)(a) of this
section shall not include any amount of interest the Cincinnati
retirement system paid to the person when it made the refund.
(E) On receipt of payment from the member under division
(C)(1) of this section, the state teachers retirement system shall
notify the Cincinnati retirement system. On receipt of the notice,
the Cincinnati retirement system shall transfer the amount
described in division (C)(2) of this section.
(F) Interest charged under this section shall be calculated
separately for each year of service credit. Unless otherwise
specified in this section, it shall be calculated at the lesser of
the actuarial assumption rate for that year of the state teachers
retirement system or the Cincinnati retirement system. The
interest shall be compounded annually.
(G) At the request of the state teachers retirement system,
the Cincinnati retirement system shall certify to the state
teachers retirement system a copy of the records of the service
and contributions of a state teachers retirement system member who
seeks service credit under this section.
(H) A member may choose to purchase only part of the credit
the member is eligible to purchase under division (C) of this
section in any one payment, subject to rules of the state teachers
retirement board.
(I) A member is ineligible to obtain credit under this
section for service that is used in the calculation of any
retirement benefit currently being paid or payable in the future.
(J) The state teachers retirement board shall credit to the
member's account in the teachers' savings fund the amounts
described in divisions (B)(1) and (C)(1)(a) of this section,
except that interest paid by the member under division (C)(1)(a)
of this section shall be credited to the employers' trust fund.
The board shall credit to the employers' trust fund the amounts
described in divisions (B)(2), (B)(3), (C)(1)(b), and (C)(2) of
this section.
Sec. 3307.764. (A) If the conditions described in division
(B) of section 3307.762 of the Revised Code are met and a person
who is a member or former member of the state teachers retirement
system through participation in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code, but
is not a current contributor and who is not receiving a pension or
benefit from the state teachers retirement system elects to
receive credit under the Cincinnati retirement system for service
for which the person contributed to the state teachers retirement
system or purchased or obtained as military service credit, the
state teachers retirement system shall transfer the amounts
specified in division (B) or (C) of this section to the Cincinnati
retirement system.
(B) If the person has contributions on deposit with the state
teachers retirement system, the retirement system shall, for each
year of service credit, transfer to the Cincinnati retirement
system the sum of the following:
(1) An amount equal to the person's contributions to the
state teachers retirement system and payments made by the member
for military service credit;
(2) An amount equal to the lesser of the employer's
contributions to the state teachers retirement system or the
amount that would have been contributed by the employer for the
service had the person been a member of the Cincinnati retirement
system at the time the credit was earned;
(3) Interest on the amounts specified in divisions (B)(1) and
(2) of this section for the period from the last day of the year
for which the service credit was earned or in which payment was
made for military service credit to the date the transfer was
made.
(C)(1) If the person has received a refund of accumulated
contributions to the state teachers retirement system, the state
teachers retirement system shall, for each year of service credit,
transfer to the Cincinnati retirement system the sum of the
following:
(a) Interest on the amount refunded to the former member that
is attributable to the year of service from the last day of the
year for which the service credit was earned or in which payment
was made for military service credit to the date the refund was
made;
(b) An amount equal to the lesser of the employer's
contributions to the state teachers retirement system or the
amount that would have been contributed by the employer for the
service had the person been a member of the Cincinnati retirement
system at the time the credit was earned, with interest on that
amount from the last day of the year for which the service credit
was earned to the date of the transfer.
(2) The amount transferred under division (C)(1) of this
section shall not include any amount added to the member's
accumulated contributions under section 3307.563 of the Revised
Code and paid under section 3307.56 or 3307.562 of the Revised
Code.
(3) On receipt of notice from the Cincinnati retirement
system that the Cincinnati retirement system has received payment
from a person described in division (C)(1) of this section, the
state teachers retirement system shall transfer the amount
described in that division.
(D) Interest charged under this section shall be calculated
separately for each year of service credit. Unless otherwise
specified in this section, it shall be calculated at the lesser of
the actuarial assumption rate for that year of the state teachers
retirement system or the Cincinnati retirement system. The
interest shall be compounded annually.
(E) The transfer of any amount under this section cancels an
equivalent amount of service credit.
(F) At the request of the Cincinnati retirement system, the
state teachers retirement system shall certify to the Cincinnati
retirement system a copy of the records of the service and
contributions of a member or former member of the state teachers
retirement system who elects to receive service credit under the
Cincinnati retirement system.
Sec. 3307.77. (A) As used in this section, "employer" means
the employer employing a member of the state teachers retirement
system at the time the member commences an absence, or is granted
a leave described in this section.
(B) Any member of the state teachers retirement system
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code or the STRS
combined plan who is, or has been, prevented from making
contributions under section 3307.26 of the Revised Code because of
an absence due to the member's own illness or injury, or who is,
or has been, granted a leave for educational, professional, or
other purposes pursuant to section 3319.13, 3319.131, or 3345.28
of the Revised Code or for any other reason approved by the state
teachers retirement board, may purchase service credit, not to
exceed two years for each such period of absence or leave, either
by having deductions made in accordance with division (C) of this
section or by making the payment required by division (D) or (E)
of this section.
(C) If the absence or leave begins and ends in the same year,
the member may purchase credit for the absence or leave by having
the employer deduct and transmit to the system from payrolls in
that year employee contributions on the amount certified by the
employer as the compensation the member would have received had
the member remained employed in the position held when the absence
or leave commenced. The deductions may be made even though the
minimum compensation provided by law for the member is reduced
thereby, unless the amount to be deducted exceeds the compensation
to be paid the member from the time deductions begin until the end
of the year, in which case credit may not be purchased under this
division. The employer shall pay the system the employer
contributions on the compensation amount certified under this
division. Employee and employer contributions shall be made at the
rates in effect at the time the absence or leave occurred. If the
employee or employer rates in effect change during the absence or
leave, the contributions for each month of the absence or leave
shall be made at the rate in effect for that month.
(D) During or following the absence or leave, but no later
than two years following the last day of the year in which the
absence or leave terminates, a member may purchase credit for the
absence or leave by paying to the employer, and the employer
transmitting to the system, employee contributions on the amount
certified by the employer as the compensation the member would
have received had the member remained employed in the position
held when the absence or leave commenced. The employer shall pay
the system the employer contributions on the compensation amount
certified under this division. Employee and employer contributions
shall be made at the rates in effect at the time the absence or
leave occurred. If the employee or employer rates in effect change
during the absence or leave, the contributions for each month of
an absence or leave shall be made at the rate in effect for that
month.
(E) After two years following the last day of the year in
which an absence or leave terminated If the absence or leave does
not begin and end in the same year or the member does not purchase
the credit under division (C) of this section, a member may
purchase credit for the absence or leave by paying the employer,
and the employer transmitting to the system, the sum of the
following for each year of credit purchased:
(1) An amount determined by multiplying the employee rate of
contribution in effect at the time the absence or leave commenced
by the member's annual compensation for the member's last full
year of service prior to the commencement of the absence or leave,
or, if the member has not had a full year of service, the
compensation the member would have received for the year the
absence or leave commenced had the member continued in service for
a full year;
(2) Interest compounded annually, at a rate determined by the
board, on the amount determined under division (E)(D)(1) of this
section for the period commencing two years from the day following
the last day of the year in which the absence or leave terminated
and ending on to the date of payment;
(3) Interest compounded annually, at a rate determined by the
board, on an amount equal to the employer's contribution required
by this division for the period commencing two years from the day
following the last day of the year in which the absence or leave
terminated and ending on to the date of payment.
The employer shall pay to the system for each year of credit
purchased under this division an amount determined by multiplying
the employer contribution rate in effect at the time the absence
or leave commenced by the member's annual compensation for the
member's last full year of service prior to the commencement of
the absence or leave, or, if the member has not had a full year of
service, the compensation the member would have received for the
year the absence or leave commenced had the member continued in
service for a full year.
(F)(E) A member who chooses to purchase service credit under
division (D) or (E) of this section may choose to purchase only
part of the credit for which the member is eligible in any one
payment, but payments made more than two years following the last
day of the year in which the absence or leave terminated shall be
made in accordance with division (E) of this section.
(G)(F) The state teachers retirement board may adopt rules to
implement this section.
Sec. 3307.771. As used in this section, "regular employment"
means a consistent pattern of employment for twelve or more
consecutive weeks by the same employer during the year.
A member of the state teachers retirement system
participating in the STRS defined benefit plan
described in
sections 3307.50 to 3307.79 of the Revised Code who prior to July
1, 1982, was granted a leave of absence for pregnancy or resigned
due to pregnancy or adoption of a child may purchase service
credit under section 3307.70 of the Revised Code for a period for
which the member did not make contributions under section 3307.26
of the Revised Code. Service The service credit purchased under
this section shall not exceed the lesser of two years or the
period from the day the leave commenced or the effective date of
resignation to the date of the member's return to regular
employment as a contributor to the retirement system. A member may
purchase credit for more than one period of absence due to
pregnancy or adoption, but the total service credit and credit
purchased under this section, former section 3307.513, and former
section 3307.514 of the Revised Code shall not exceed two years.
The member shall submit evidence satisfactory to the retirement
board documenting that the leave or resignation was due to
pregnancy or adoption of a child.
For each year of service credit purchased under this section,
the member shall pay to the system for credit to the member's
accumulated account an amount determined by multiplying the
employee rate of contribution in effect at the time the leave or
absence commenced by the member's annual compensation for
full-time employment during the first year of service in Ohio
following termination of the absence or leave and adding to that
amount interest compounded annually, at a rate established by the
board, from the date the absence or leave terminated to the date
of payment.
A member may purchase all or part of the credit for which the
member is eligible in one or more payments. A member who purchases
service credit for an absence or leave under described in this
section may not purchase credit for that absence or leave under
section 3307.77 of the Revised Code. A member who has purchased
service credit for an absence or leave under former section
3307.513 or 3307.514 or section 3307.77 of the Revised Code may
not purchase credit under described in this section for the same
period of absence or leave.
The state teachers retirement board may adopt rules to
implement this section.
Sec. 3307.78. (A) As used in this section, "school board
member" means a member of a city, local, exempted village, or
joint vocational school district board of education and "governing
board member" means a member of an educational service center
governing board.
(B) A member of the state teachers retirement system
participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code who does both of
the following may purchase credit under section 3307.70 of the
Revised Code for service as a school board or governing board
member, other than service subject to the tax on wages imposed by
the "Federal Insurance Contributions Act," 68A Stat. 415 (1954),
26 U.S.C.A. 3101, as amended, if the member is eligible to retire
under this chapter or will become eligible to retire as a result
of purchasing the credit:
(1) Agrees to retire within ninety days after receiving
notice of the additional liability under division (C) of this
section;
(2) Provides evidence satisfactory to the state teachers
retirement board of service as a school board or governing board
member during the years for which the member wishes to purchase
credit.
Credit may be purchased for service as a school board or
governing board member between September 1, 1920, and the first
day of January of the year in which the credit is purchased. A
member is eligible to purchase one-quarter of a year's credit for
each year of service as a school board or governing board member.
Credit purchased under this section shall be included in the
member's total service credit for the purposes of section 3307.52
of the Revised Code.
(C) On receipt of a request from a member eligible to
purchase credit under described in this section, the system shall
obtain from its actuary certification of the additional liability
to the system for each quarter year of credit the member is
eligible to purchase and shall notify the member of such
additional liability. Within ninety days after receiving notice of
the additional liability, the member may purchase in quarter-year
increments any portion of the credit the member is eligible to
purchase. For each quarter year of credit purchased, the member
shall pay to the system an amount equal to the additional
liability resulting from the purchase. Payment shall be made in
full at the time of purchase.
(D) The board shall adopt rules in accordance with section
111.15 of the Revised Code concerning the purchase of credit under
this section. In addition to any other matters considered relevant
by the board, the rules shall specify the procedure to be followed
to inform the system that a member wishes to purchase credit for
service as a school board or governing board member.
(E) If the member does not retire within ninety days after
purchasing credit under described in this section, the system
shall withdraw the credit and refund the amount paid by the
member.
Sec. 3307.79. (A) A member whose death occurred prior to
July 1, 1973, who at the time of death had more than thirty-four
but less than thirty-five years of service credit shall be
presumed to have completed thirty-five years of such credit. Any
member whose death occurred on or after July 1, 1973, but prior to
August 20, 1976, and who at the time of death had more than
thirty-one but less than thirty-two years of service credit shall
be presumed to have completed thirty-two years of such credit. Any
member participating in the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code whose death occurs
on or after August 20, 1976, but prior to July 1, 2015, and who at
the time of death has more than twenty-nine but less than thirty
years of service credit shall be presumed to have completed thirty
years of such credit.
(B) On the death of a member who is participating in the STRS
defined benefit plan
described in sections 3307.50 to 3307.79 of
the Revised Code prior to service retirement, the surviving spouse
or dependents of the deceased member shall have the right to
purchase obtain any service credit the member, had the member not
died, would have been eligible to purchase obtain pursuant to
sections 3307.71, 3307.72, 3307.73, 3307.74, 3307.741, 3307.751,
3307.752, 3307.76, 3307.761, and 3307.763, 3307.77, and 3307.771
of the Revised Code upon the same terms and conditions which the
deceased member could have
purchased obtained such service credit
had the deceased member not died. Any service credit purchased
obtained under this section shall be applied under the provisions
of this chapter in the same manner as it would have been applied
had it been purchased obtained by the deceased member during the
deceased member's lifetime.
Sec. 3307.80. The state teachers retirement board shall
adopt rules to implement the plans any STRS defined contribution
plan established under section 3307.81 of the Revised Code.
Sec. 3307.81. The state teachers retirement board shall
establish one or more defined contribution plans consisting of
benefit options that provide for an individual account for each
participating member and under which benefits are based solely on
the amounts that have accumulated in the account. The plans may
include options under which a member participating in a plan may
receive definitely determinable benefits.
Each An STRS defined contribution plan established under this
section shall meet the requirements of sections 3307.81 to 3307.89
of the Revised Code. It may include life insurance, annuities,
variable annuities, regulated investment trusts, pooled investment
funds, or other forms of investment.
The board may administer the plans, enter into contracts with
other entities to administer the plans, or both. The board may
contract with another entity to administer the plans if the entity
agrees to meet all requirements of this chapter applicable to the
plans.
Sec. 3307.811. Each An STRS defined contribution plan
established under section 3307.81 of the Revised Code shall meet
the requirements necessary to qualify as a retirement system
maintained by a state or local government entity under division
(b)(7)(F) of section 3121 of the "Internal Revenue Code of 1986,"
100 Stat. 2085, 26 U.S.C.A. 3121(b)(7)(F), as amended. Each
participant in a plan shall qualify as a member of that system.
Sec. 3307.812. In establishing a an STRS defined
contribution plan under section 3307.81 of the Revised Code, the
state teachers retirement board may do all things necessary to
avoid the system being required to pay federal or state income
taxes on contributions to the plan or amounts earned under the
plan and, to the extent permitted under federal or state law, to
allow members participating in the plan to make tax deferred
contributions for periods of interrupted or prior service.
Sec. 3307.83. The right of each member participating in a an
STRS defined contribution plan
established under section 3307.81
of the Revised Code to a retirement, disability, or survivor
benefit, to health care insurance coverage, or to a withdrawal of
contributions shall be governed by the plan selected by the member
under section 3307.25 or 3307.251 of the Revised Code.
Sec. 3307.84. For each member participating in a an STRS
defined contribution plan
established under section 3307.81 of the
Revised Code, the state teachers retirement system shall may
transfer to the employers' trust fund a portion of the employer
contribution required under section 3307.28 of the Revised Code
that is equal to. If the state teachers retirement board elects to
make a transfer under this section, the portion transferred shall
not exceed the percentage of compensation of members described in
this section for whom the contributions are being made that is
determined by the board's actuary to be necessary to mitigate any
negative financial impact on the state teachers retirement system
of the participation of members in
a an STRS defined contribution
plan established under section 3307.81 of the Revised Code. The
remainder shall be credited as provided in section 3307.28 of the
Revised Code.
The state teachers retirement board shall may have prepared
annually, at intervals determined by the board, an actuarial study
to determine whether the percentage transferred a transfer under
this section should be changed is necessary to reflect a change in
the level of the negative financial impact resulting from
participation of members in a an STRS defined contribution plan
established under section 3307.81 of the Revised Code. The board
shall increase or decrease the percentage transferred, if any,
under this section to reflect the amount needed to mitigate the
negative financial impact, if any, on the system based on the
actuarial study. An increase or decrease in the percentage
transferred shall take effect on the first day of the month
following the date the conclusions of the actuarial study are
reported to a date determined by the board.
The If a transfer under this section is made, 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 3307.39 or 3307.61 of
the Revised Code and benefit increases provided to members and
former members participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code after
July 13, 2000, is fully amortized, as determined by the annual
actuarial valuation prepared under section 3307.51 of the Revised
Code.
Sec. 3307.86. The state teachers retirement system may
require members participating in a an STRS defined contribution
plan established under section 3307.81 of the Revised Code and
their employers to furnish the contributions and information
required under this chapter at more frequent intervals than those
required for members participating in the STRS defined benefit
plan described in sections 3307.50 to 3307.79 of the Revised Code.
The system has no duty to accept contributions by or on behalf of
a member if a contribution or information is not furnished at such
intervals.
Sec. 3307.87. (A)(1) If a member participating in a an STRS
defined contribution plan
established under section 3307.81 of the
Revised Code is married at the time any benefits under the plan
commence, benefits shall be paid in accordance with division
(A)(2) of this section, unless the spouse has consented under
division (C) of this section to a different form of payment or the
spouse's consent is waived under that division.
(2) The benefits described in division (A)(1) of this section
shall be paid in the form of an annuity, which shall consist of
the actuarial equivalent of the member's benefits, in an amount
that is payable for the life of the member and one-half of the
amount continuing after the member's death to the spouse for the
life of the spouse.
(B) If a member participating in a an STRS defined
contribution plan established under section 3307.81 of the Revised
Code is married at the time of the member's death, any benefits
that are payable to the member shall be paid to the member's
spouse, unless the spouse has consented under division (C) of this
section to the designation of a different beneficiary or the
spouse's consent is waived under that division.
(C) Consent is valid only if it is evidenced by a signed
statement that is witnessed by a notary public. Each plan may
waive the requirement of consent if the spouse is incapacitated or
cannot be located or for any other reason specified by the plan or
in rules adopted by the state teachers retirement board. A plan
shall waive the requirement of consent if a plan of payment that
provides for payment in a specified amount continuing after the
member's death to a former spouse is required by a court order
issued prior to the effective date of the member's retirement
under section 3105.171 or 3105.65 of the Revised Code or laws of
another state regarding division of marital property.
Consent or waiver is effective only with regard to the spouse
who is the subject of the consent or waiver.
Sec. 3307.89. The state teachers retirement board may offer
to members participating in the STRS defined benefit plan
described in sections 3307.50 to 3307.79 of the Revised Code the
opportunity to also participate in one or more of the benefit
options available under a an STRS defined contribution plan
established under section 3307.81 of the Revised Code. A member's
contributions to an option shall be credited to an individual
account established for the member in the defined contribution
fund.
Sec. 3307.98. The increasing contribution determined as
provided in sections 3307.96 and 3307.97 of the Revised Code by
the actuary shall be paid by the employer. In the event of merger,
the moneys and securities to the credit of the local district
pension system, not exceeding an aggregate amount equal to the
present value of the payments to be made on account of all
pensions to the pensioners on the rolls of the local district
pension system, shall be transferred to the employers'
accumulation fund and the pensions then payable by the local
district pension system shall thereafter be paid from the
employers' accumulation fund until the reserves on these pensions
with the other pensions payable from the employers' accumulation
fund have been accumulated and shall be transferred to the annuity
and pension reserve fund, from which fund they shall thereafter be
payable. The pensions of the active members of the local district
pension system and of the new entrants shall thereafter be payable
as are the pensions of other members of the state teachers
retirement system. The amount of the excess of the moneys and
securities of the local district pension system over and above the
present value of the payments to be made on account of all
pensions to the pensioners of on the rolls of the local district
pension system shall be transferred to the teachers' savings fund
and shall be credited pro rata to the active teachers of such
local district pension system on the basis of the amounts of their
previous contributions to the local district pension system. In
case such method of distribution is not found practicable by the
state teachers retirement board, the board may use such other
method of apportionment as seems fair and equitable to such board.
The amount so credited in any case shall be considered as a part
of the teacher's accumulated contributions, as defined in section
3307.50 of the Revised Code, for all purposes except in the case
of retirement under the STRS defined benefit plan described in
sections 3307.50 to 3307.79 of the Revised Code in which it shall
be considered as an amount in excess of the teacher's accumulated
contributions and shall be used in purchasing from the annuity and
pension reserve fund an annuity, in addition to any other annuity
or pension benefit otherwise provided by this chapter.
After the moneys and securities of any local district pension
system have been transferred to the employers' accumulation fund
or to the teachers' savings fund, such local district pension
system shall cease to exist.
Sec. 3313.975. As used in this section and in sections
3313.976 to 3313.979 of the Revised Code, "the pilot project
school district" or "the district" means any school district
included in the pilot project scholarship program pursuant to this
section.
(A) The superintendent of public instruction shall establish
a pilot project scholarship program and shall include in such
program any school districts that are or have ever been under
federal court order requiring supervision and operational
management of the district by the state superintendent. The
program shall provide for a number of students residing in any
such district to receive scholarships to attend alternative
schools, and for an equal number of students to receive tutorial
assistance grants while attending public school in any such
district.
(B) The state superintendent shall establish an application
process and deadline for accepting applications from students
residing in the district to participate in the scholarship
program. In the initial year of the program students may only use
a scholarship to attend school in grades kindergarten through
third.
The state superintendent shall award as many scholarships and
tutorial assistance grants as can be funded given the amount
appropriated for the program. In no case, however, shall more than
fifty per cent of all scholarships awarded be used by students who
were enrolled in a nonpublic school during the school year of
application for a scholarship.
(C)(1) The pilot project program shall continue in effect
each year that the general assembly has appropriated sufficient
money to fund scholarships and tutorial assistance grants. In each
year the program continues, new students may receive scholarships
in grades kindergarten to twelve. A student who has received a
scholarship may continue to receive one until the student has
completed grade twelve.
(2) If the general assembly discontinues the scholarship
program, all students who are attending an alternative school
under the pilot project shall be entitled to continued admittance
to that specific school through all grades that are provided in
such school, under the same conditions as when they were
participating in the pilot project. The state superintendent shall
continue to make scholarship payments in accordance with division
(A) or (B) of section 3313.979 of the Revised Code for students
who remain enrolled in an alternative school under this provision
in any year that funds have been appropriated for this purpose.
If funds are not appropriated, the tuition charged to the
parents of a student who remains enrolled in an alternative school
under this provision shall not be increased beyond the amount
equal to the amount of the scholarship plus any additional amount
charged that student's parent in the most recent year of
attendance as a participant in the pilot project, except that
tuition for all the students enrolled in such school may be
increased by the same percentage.
(D) Notwithstanding sections 124.39, 3307.54, and 3311.83 of
the Revised Code, if the pilot project school district experiences
a decrease in enrollment due to participation in a state-sponsored
scholarship program pursuant to sections 3313.974 to 3313.979 of
the Revised Code, the district board of education may enter into
an agreement with any teacher it employs to provide to that
teacher severance pay or early retirement incentives, or both, if
the teacher agrees to terminate the employment contract with the
district board, provided any collective bargaining agreement in
force pursuant to Chapter 4117. of the Revised Code does not
prohibit such an agreement for termination of a teacher's
employment contract.
Section 2. That existing sections 3305.06, 3307.01, 3307.031,
3307.04, 3307.044, 3307.061, 3307.14, 3307.142, 3307.20, 3307.214,
3307.25, 3307.251, 3307.252, 3307.26, 3307.28, 3307.33, 3307.35,
3307.351, 3307.352, 3307.371, 3307.39, 3307.391, 3307.42, 3307.46,
3307.47, 3307.50, 3307.501, 3307.51, 3307.512, 3307.52, 3307.53,
3307.56, 3307.561, 3307.562, 3307.563, 3307.57, 3307.58, 3307.59,
3307.60, 3307.62, 3307.63, 3307.631, 3307.64, 3307.66, 3307.661,
3307.67, 3307.671, 3307.694, 3307.71, 3307.711, 3307.712, 3307.72,
3307.73, 3307.74, 3307.75, 3307.751, 3307.752, 3307.76, 3307.761,
3307.763, 3307.764, 3307.77, 3307.771, 3307.78, 3307.79, 3307.80,
3307.81, 3307.811, 3307.812, 3307.83, 3307.84, 3307.86, 3307.87,
3307.89, 3307.98, and 3313.975 and sections 3307.54, 3307.61,
3307.741,
3307.88, 3307.881, and 3307.882 of the Revised Code are
hereby repealed.
Section 3. Sections 1, 2, and 6 of this act, except for the
amendments to division (A)(6) of section 3307.26, division (B)(3)
of section 3307.58, and division (E) of section 3307.67 of the
Revised Code, and the repeal of section 3307.54 of the Revised
Code, take effect January 7, 2013.
Section 4. The amendments by this act to division (A)(6) of
section 3307.26, division (B)(3) of section 3307.58, and division
(E) of section 3307.67 of the Revised Code take effect one hundred
eighty days after the effective date of this act.
Section 5. The repeal by this act of section 3307.54 of the
Revised Code takes effect July 31, 2014.
Section 6. (A) The Ohio Retirement Study Council shall study
and make recommendations on the State Teachers Retirement Board's
authority to do the following:
(1) For compensation earned on or after July 1, 2017, reduce
the employee contribution rate to less than fourteen per cent in
accordance with division (A)(6) of section 3307.26 of the Revised
Code;
(2) Adjust eligibility requirements for retirement in
accordance with division (B)(3) of section 3307.58 of the Revised
Code;
(3) Adjust the cost-of-living adjustment in accordance with
division (E) of section 3307.67 of the Revised Code.
(B) Not later than ninety days after the effective date of
this section, the Council shall prepare and submit to the
President of the Senate and the Speaker of the House of
Representatives a report of its findings and recommendations.
Section 7. The General Assembly makes the following
statement of findings and intent:
The General Assembly finds the following:
Current funding for the STRS defined benefit plan in the
State Teachers Retirement System is inadequate to pay benefits
over the long term and, if no changes are made to the plan, the
retirement system will eventually be unable to pay benefits. The
General Assembly bases this finding on the following:
Section 3307.512 of the Revised Code requires the State
Teachers Retirement Board to establish a period of not more than
thirty years to amortize its unfunded pension liabilities for
benefits paid under the STRS defined benefit plan.
A five-year actuarial experience study conducted in 2008
showed an amortization period of 41.2 years as of June 30, 2008,
exceeding the thirty-year amortization period. This increase in
the amortization period was caused by a variety of economic and
demographic factors, including an increase in the life expectancy
of retirement system members and prior increases in the retirement
benefit formula.
Due to the historic decline in the global investment markets
and accompanying recession that followed, the amortization period
for the retirement system's unfunded pension liabilities under the
STRS defined benefit plan became infinite.
There is a legitimate and important state interest in
maintaining the solvency of the STRS defined benefit plan,
maintaining public confidence in the plan, and ensuring that
funding is available to pay the monthly pensions of future
retirees under the plan.
The General Assembly finds that certain changes to the STRS
defined benefit plan, including changes to member contribution
rates, retirement eligibility, benefit formulas, the number of
years used to calculate final average salary, and future
cost-of-living adjustments, are reasonable and necessary to
further these legitimate and important state interests. The
General Assembly bases this finding on all of the following:
In March 2009, the State Teachers Retirement Board began a
long-term contingency planning process. As part of that process,
the Board conducted an asset allocation study showing that the
retirement system could not eliminate the shortfall in funding
through increased returns on investments.
In May 2009, the Ohio Retirement Study Council directed each
public retirement system, including the State Teachers Retirement
System, to prepare, for presentation to the Council in September
2009, board-approved plans for achieving or maintaining the
30-year funding period.
In preparing the September 2009 plan, the State Teachers
Retirement Board and its actuary evaluated potential changes to
numerous plan components designed to improve the long-term
solvency of the STRS defined benefit plan.
The September 2009 plan adopted by the State Teachers
Retirement Board included proposed changes to member contribution
rates, eligibility for retirement, the benefit formula for future
retirees, the number of years used to calculate final average
salary, and cost-of-living adjustments for current and future
retirees.
Over time, the State Teachers Retirement Board modified its
long-term pension reform plan. With each modification, the plan
adopted by the Board included proposed changes to member
contribution rates, retirement eligibility, benefit formulas for
future retirees, the number of years used to calculate final
average salary, and cost-of-living adjustments for both current
and future retirees.
In April 2012, the State Teachers Retirement Board
unanimously approved a new long-term pension reform plan following
the results of a three-year actuarial experience study. That study
resulted in changes to certain actuarial assumptions, including
lowering the expected long-term rate of return on investment
assets.
The April 2012 plan, like prior pension reform plans adopted
by the State Teachers Retirement Board, includes proposed changes
to member contribution rates, retirement eligibility, benefit
formulas for future retirees, the number of years used to
calculate final average salary, and cost-of-living adjustments for
current and future retirees.
The General Assembly finds that the changes proposed by the
State Teachers Retirement Board in its April 2012 plan are
reasonable and necessary to maintain the solvency of the STRS
defined benefit plan, maintain public confidence in the plan, and
help ensure that funds will be available to pay the monthly
pensions of current and future retirees.
In amending section 3307.67 of the Revised Code, it is the
intent of the General Assembly to do all of the following:
To recognize that no member has a legitimate expectation of
any particular future cost-of-living adjustment, or payment of
future cost-of-living adjustments at any particular time, under
Ohio law;
To declare that the modifications to future cost-of-living
adjustments under section 3307.67 of the Revised Code are
reasonable;
To recognize that the funding crisis exacerbated by the
historic decline in the global investment markets and accompanying
recession was unforeseen;
To recognize that cost-of-living adjustments under the STRS
defined benefit plan were never intended to undermine the solvency
of the STRS defined benefit plan, or to put at risk the monthly
pensions of current and future retirees under the plan;
To declare that the modifications to future cost-of-living
adjustments under the STRS defined benefit plan under section
3307.67 of the Revised Code, strike a reasonable balance between
current and future retirees;
To declare that the modifications to future cost-of-living
adjustments under section 3307.67 of the Revised Code are
necessary;
To recognize that the retirement system cannot eliminate its
funding crisis through increased returns on investments;
To declare that modifying future cost-of-living adjustments
is the most effective means for restoring the long-term solvency
of the STRS defined benefit plan;
To declare that modifications to future cost-of-living
adjustments under section 3307.67 of the Revised Code are
necessary to improve the long-term solvency and actuarial
soundness of the STRS defined benefit plan.
|