Ohio Adm.Code 3307:1 | Ohio Administrative Code 3307:1 — State Teachers Retirement System | Defined Benefits

Chapter 3307:1-1 Definitions

Ohio Adm.Code 3307:1-1-01 Definitions.

Unless another definition is provided, as used in sections 3307.50 to 3307.79 of the Revised Code and Chapters 3307-1 to 3307-11, Chapters 3307:1-1 to 3307:1-13, and Chapters 3307:2-1 to 3307:2-6 of the Administrative Code:

(A) "Contributing service" means periods of employment that fall within the definition of employment as a teacher, as defined by section 3307.01 of the Revised Code, and for which contributions were made to this retirement system.

(B) "Contributing service credit" means the same service credit sections as listed in paragraphs (D)(1)(b)(i), (D)(1)(b)(ii), (D)(2)(a)(i) and (D)(2)(a)(ii) of section 3307.58 of the Revised Code.

(C) "Covered employment" means periods of employment that fall within the definition of employment as a teacher, as defined by section 3307.01 of the Revised Code.

(D) "Did not have any service credit on account on June 30, 2013" for purposes of division (A)(2) of section 3307.62 of the Revised Code and "did not have service credit on account on June 30, 2013" for purposes of division (C)(2)(i) of section 3307.66 of the Revised Code means the member had no service credit on account with the state teachers retirement system on June 30, 2013, or the member had service credit on account with the state teachers retirement system but withdrew the account on or after July 1, 2013.

(E) "Effective date" or "effective benefit date" in the case of service retirement means the effective date specified by section 3307.58 of the Revised Code; in the case of a disability benefit shall mean the effective date determined in accordance with section 3307.62 of the Revised Code; and in the case of a survivor benefit shall mean the effective date determined in accordance with section 3307.66 of the Revised Code.

(F) "Estimated benefit" or "partial benefit" means a payment, once eligibility for a benefit has been established, of a portion of the benefit not yet finally calculated or granted during the period between the effective date and the determination of the final benefit.

(G) "Final benefit" means the benefit granted once a final determination has been made as to the actual monthly amount payable by the retirement system.

(H) "Full time employment" means employment for the full normal workday of the employing agency.

(I) "Full time service" means as defined by in rule 3307:1-2-01 of the Administrative Code.

(J) "Had service credit on account on June 30, 2013" for purposes of both division (A)(1) of section 3307.62 of the Revised Code and division (C)(2)(i) of section 3307.66 of the Revised Code means the member had service credit on account with the state teachers retirement system on June 30, 2013 and did not withdraw the account on or after July 1, 2013.

(K) "Ohio contributing service" means employment by an Ohio public entity for periods during which contributions were made to the public employees retirement system, the school employees retirement system, the state teachers retirement system, the police and fire pension fund, or the highway patrol retirement system.

(L) "Part time service" means as defined in rule 3307:1-2-01 of the Administrative Code.

(M) "Regularly employed" means a consistent pattern of employment for twelve or more consecutive weeks by the same employer.

(N) "Total service" and "total service credit" means as defined by section 3307.50 of the Revised Code.

(O) "Year" means the year beginning July first and ending June thirtieth, unless a calendar year or period of twelve consecutive months is specified.

Last updated May 14, 2025 at 7:34 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-2-01

(A) As used in section 3307.53 of the Revised Code and this rule:

(1) "Full-time service" means employment as a teacher under a contract that:

(a) Requires teaching service that begins and ends on either:

(i) The first and last day of a year consisting of three hundred sixty-five days; or

(ii) The first and last day of a school year of at least the minimum hours required by sections 3313.48 and 3314.03 of the Revised Code or two semesters; and

(b) Provides compensation in an amount equal to the rate paid under an employer's overall salary schedule for teachers of the same experience teaching the entire day for every day of the school year. College and university teachers must be employed under a contract that provides compensation equal to the rate paid to other teachers of the same experience teaching the designated full-time equivalent workload.

(2) "Part-time service" means employment on any basis other than those identified in paragraph (A)(1) of this rule.

(B) Calculation of service credit for full-time service:

(1) One hundred twenty or more days or two semesters of contributing service as a teacher for a single employer constitutes one year of service credit to be used in determining total credit for retirement purposes.

(2) If less than one hundred twenty days of teaching, the annual service credit will be determined in accordance with paragraph (C) of this rule.

(1) If a teacher has taught in a given year for one employer for at least ninety days or five hundred hours, where hours are used only when the actual number of days of service is not available from the employer's records, service credit shall be calculated as follows, provided that the employment relationship has been in effect for a period of time at least equal to one hundred twenty days of that school year:

(a) If total compensation for the year is in an amount at least equal to the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be one year.

(b) If total compensation for the year is in an amount less than the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be the lesser of:

(i) Actual days of service divided by one hundred eighty; or

(ii) Hours of service divided by one thousand, but only if the actual number of days of service is not available from the employer's records; or

(iii) Actual compensation for the year divided by twelve thousand dollars.

(2) If a teacher has taught for one employer for less than ninety days or five hundred hours in a year or the employment relationship has been in effect for a period of time less than one hundred twenty days of that school year:

(a) Service credit will be determined by the lesser of:

(i) Dividing the number of days or partial days for which compensation was paid for actual teaching service rendered by one hundred eighty; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(b) If actual number of days or partial days taught is not available from payroll records and the teacher is compensated for hourly service, service credit will be determined by the lesser of:

(i) Dividing the number of hours for which compensation was paid by one thousand; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(3) If actual number of days or partial days taught is not available from payroll records and the teacher is compensated for per cent based salaried service, service credit granted on a contract which is issued on per cent of full-time employment as a teacher will be determined in accordance with the actual contract percentage averaged over three quarters or two semesters during the year, except that one full year of service credit will be granted when such employment exceeds sixty-six per cent averaged over three quarters or two semesters during the year.

(D) Calculation of service credit for full-time or part-time service does not include days when the teacher was on-call and no teaching service was performed.

(E) Non-teaching periods: Service credit granted for contribution paid during non-teaching periods authorized in sections 3307.77 and 3345.28 of the Revised Code shall be determined by the amount of contribution actually paid divided by the amount of contribution the member would have paid for full-time employment if the non-teaching period had not occurred.

(F) Credit for teaching service in and after September 1971 previously reported for all active members on the date of this amendment of this rule may be recalculated in accordance with this rule. Credit for part-time salaried service earned prior to September 1971 may be evaluated and recalculated in accordance with the versions of this rule in effect between December 23, 1976 and the effective date of this amendment.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 5, 2022
Promulgated Under: 111.15

Chapter 3307:1-2 Service Credit

Ohio Adm.Code 3307:1-2-01 Service credit.

(A) As used in section 3307.53 of the Revised Code and this rule:

(1) "Full-time service" means employment as a teacher under a contract that:

(a) Requires teaching service that begins and ends on either:

(i) The first and last day of a year consisting of three hundred sixty-five days; or

(ii) The first and last day of a school year of at least the minimum hours required by sections 3313.48 and 3314.03 of the Revised Code or two semesters; and

(2) "Part-time service" means employment on any basis other than those identified in paragraph (A)(1) of this rule.

(B) Calculation of service credit for full-time service:

(2) If less than one hundred twenty days of teaching, the annual service credit will be determined in accordance with paragraph (C) of this rule.

(a) If total compensation for the year is in an amount at least equal to the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be one year.

(b) If total compensation for the year is in an amount less than the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be the lesser of:

(i) Actual days of service divided by one hundred eighty; or

(ii) Hours of service divided by one thousand, but only if the actual number of days of service is not available from the employer's records; or

(iii) Actual compensation for the year divided by twelve thousand dollars.

(a) Service credit will be determined by the lesser of:

(i) Dividing the number of days or partial days for which compensation was paid for actual teaching service rendered by one hundred eighty; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(b) If actual number of days or partial days taught is not available from payroll records and the teacher is compensated for hourly service, service credit will be determined by the lesser of:

(i) Dividing the number of hours for which compensation was paid by one thousand; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(D) Calculation of service credit for full-time or part-time service does not include days when the teacher was on-call and no teaching service was performed.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 5, 2022
Promulgated Under: 111.15

Chapter 3307:1-3 Restoration and Purchased Credit

Ohio Adm.Code 3307:1-3-01 Interest rate and cost calculation for restoration and purchased service.

Except to the extent otherwise specified by the Revised Code or the Administrative Code, in any calculation of cost for the restoration or purchase of service credit under sections 3307.50 to 3307.79 of the Revised Code in which interest is to be compounded, the rate used shall be eight per cent compounded annually regardless of whether the restoration or purchase is paid in a single payment or through a payroll deduction plan.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-02 Purchase of service credit.

(A) Members may purchase service credit under sections 3307.71, 3307.72, 3307.752, 3307.761, 3307.763 and 3307.77 of the Revised Code in increments and the cost for purchasing partial service credit shall be calculated as a proportionate part of the total cost at time of purchase.

(B) Members may not purchase service credit that results in more than one year of total service credit as defined by section 3307.50 of the Revised Code for any year.

(C) Members applying for service retirement must establish all service credit before the effective date of service retirement if credit for such service is to be included in the benefit calculation, except that:

(1) Service credit shall be deemed to have been established prior to the effective date of retirement in the event that after the effective date of retirement but prior to the final benefit determination service credit is granted by the public employees retirement system pursuant to section 145.483 of the Revised Code or by this retirement system pursuant to section 3307.75 of the Revised Code.

(2) Payment for other purchases or restoration of service credit will be accepted for three months after the effective date of retirement and service credit will be deemed to have been established prior to the effective date, provided:

(a) That prior to the effective date of retirement this retirement system approved an application for purchase of service credit on forms provided by this system determining that the service credit qualifies for purchase;

(b) That prior to the effective date of retirement this retirement system issued cost statements for each such purchase of service credit; and

(c) That payment in full is received by the retirement system no later than the earlier of the last day of the third month after the effective date of service retirement wherein the first month of the three months is the month of retirement, or the day the retirement has become final pursuant to paragraph (G) of rule 3307-8-01 of the Administrative Code.

(3) An estimated or partial benefit may be paid prior to the final determination only if a member qualifies for retirement without regard to a purchase or restoration of service credit for which payment in full has not been received.

(4) If payment in full is not received by the last day of the third month after the effective date of service retirement;

(a) The application to purchase service credit shall be cancelled;

(b) The final benefit shall be calculated for a member eligible for retirement without the service credit that could have been obtained had timely payment been made;

(c) The application for retirement shall be cancelled for any member not eligible to retire without the service credit that could have been obtained had timely payment been made.

(D) Members applying for disability benefits must complete all purchases of service credit before the first benefit payment if the service credit is to be included in the disability benefit calculation.

(E) Except for purchases of service credit by payroll deduction, a member may purchase all or part of eligible service credit under sections 3307.71, 3307.72, 3307.752, 3307.761, 3307.763 and 3307.77 of the Revised Code, provided that the minimum payment shall be the greater of the amount needed to establish one per cent of a year of service credit or two hundred dollars. But in all cases the member shall pay the full cost if less than either two hundred dollars or the amount needed to establish one percent of a year of service credit.

(F) For purposes of sections 3307.72 and 3307.74 of the Revised Code, qualifying service for a full-year as a graduate teaching assistant or other graduate assistant work may be purchased up to a maximum of fifty per cent of a year if the employer at the time provides evidence of the teaching work load assigned. In the absence of such evidence, a maximum of thirty-four per cent of a year may be purchased.

(G) Payments for purchased or restored service credit may be refunded upon the request of the member and such service credit will be cancelled,

(1) If the service credit established under all Ohio public retirement systems for the year in which the service purchased was performed totals one year without credit for the period purchased; or

(2) If a benefit calculated without credit for the period purchased is equal to or greater than one hundred per cent of final average salary; or

(3) For any reason upon application for retirement.

(H) If disability benefits were paid pursuant to section 3307.63 or 3307.631 of the Revised Code, a member shall not receive a refund of any payments for a purchase of service credit included in the calculation of benefits paid pursuant to section 3307.63 or 3307.631 of the Revised Code.

(I) A qualified survivor as defined in division (B) of section 3307.66 of the Revised Code shall not receive a refund of any payments for a purchase of service credit.

Last updated May 14, 2025 at 7:34 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307-8-01

(A) As used in this rule, "alternate payee" and "participant" shall be as defined by section 3105.80 of the Revised Code.

(B) All monthly benefits or partial lump-sum option plan benefits paid directly to the recipient on and after October 1, 2010 shall be paid by electronic funds transfer.

(1) Benefit recipients or alternate payees whose addresses are outside of the United States may choose to receive benefits by electronic funds transfer to a bank in the United States, but are not required to do so; and

(2) The retirement system, in its sole discretion, may issue payment by paper checks to any benefit recipient or alternate payee if determined to be necessary for administrative purposes and/or if payment by electronic funds transfer is impracticable.

(D) Each benefit recipient and each alternate payee shall notify the retirement system on a form it supplies of:

(1) The name of the financial institution to which benefits will be transferred electronically;

(2) The routing number of that financial institution;

(3) The account number to which funds are to be transferred; and

(4) Such other information as the retirement system may specify.

(E) No payment will be made to a benefit recipient or to an alternate payee of estimated or regular monthly benefits until such recipient or alternate payee provides full information about the financial institution to the retirement system.

(F) Amounts payable under an optional plan of payment selected pursuant to division (B)(1) or (E)(2)(a) of section 3307.60 of the Revised Code or the defined contribution program under section 3307.81 of the Revised Code shall be paid by electronic transfer of funds to the same financial institution to which monthly benefits will be paid except in the case of amounts paid directly to another retirement savings plan eligible to receive rollovers from a qualified plan.

(G) Selection of a plan of payment pursuant to section 3307.60 of the Revised Code or 6.2(e) of the document establishing the defined contribution program under section 3307.81 of the Revised Code shall become final on the fifteenth day of the month of the first regular benefit payment. Regular benefits begin once a final benefit, as defined by rule, is paid. Retirement may not be canceled thereafter and no change may be made thereafter in the plan of payment selected, the retirement date or the amount of any lump sum option selected pursuant to division (B)(1) of section 3307.60 of the Revised Code or the account to which it is to be deposited. The member's ability to purchase service credit or to replace contributions as outlined in paragraph (C)(2) of rule 3307:1-3-02, paragraph (D)(2)(n) of rule 3307:1-3-13, paragraph (D) of rule 3307:2-4-02 and paragraph (C) of rule 3307:2-4-03 of the Administrative Code ceases on the fifteenth day of the month following the first regular benefit payment. The repayment of any lump sum must be made no later than the thirtieth day after the fifteenth day of the month of the first regular benefit.

(H) Selection of an annuitized benefit under section 6.3 of the document establishing the defined contribution program under section 3307.81 of the Revised Code shall become final on the effective date of retirement. Retirement may not be canceled thereafter and no change may be made in the effective date of retirement. Selection of a plan of payment pursuant to section 6.3(c) shall become final on the fifteenth day of the month of the first regular benefit payment and no change may be made thereafter. Regular benefits begin once a final benefit, as defined by rule, is paid.

(I) The benefit effective date of a benefit paid under section 3307.63 or 3307.631 of the Revised Code shall be final on the fifteenth day of the month of the first regular benefit payment.

(J) Payment to an alternate payee shall occur no earlier than the sixteenth day of the month of the first regular benefit payment to the participant.

(K) The right to a benefit, including a lump sum withdrawal, under Chapter 3307. of the Revised Code is a personal right. Benefits may be suspended or terminated by the retirement system in the event the system has good cause to believe that a benefit recipient may be incapacitated and no other person has legal authority to act or receive benefits on the benefit recipient's behalf or in the event the system learns that a benefit recipient is missing and unable to present himself or herself to establish to the retirement system's satisfaction that he or she is in fact alive and entitled to receive benefits.

Last updated May 4, 2023 at 9:29 AM

History

Effective: May 4, 2023
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-03 Determination of purchasable service credit under sections 3307.70 and 3307.74 of the Revised Code.

The following rule shall be utilized to determine a member's eligibility to purchase service credit under sections 3307.70 and 3307.74 of the Revised Code:

(A) Factors to be used to determine eligibility and cost:

(1) The service credit must be properly certified by the employer or custodian of records on a form provided by the retirement system. This certification shall be taken from a legitimate source of documentation, such as payroll or retirement records of the state, municipality, institution, or public school. When records have been destroyed, an affidavit from the member may be used, but only in conjunction with other documented evidence establishing proof and amount of service. The determination of acceptable documentation shall reside solely with the retirement system and its decision shall be final.

(2) To be eligible to purchase service credit under section 3307.74 of the Revised Code, the member must have been regularly employed. Part-time service may be purchased if the member was regularly employed.

(3) Service credit to be purchased shall be determined as follows:

(a) The service credit earned with a school shall be determined by dividing the number of days of regular full-time service by one hundred eighty days, or dividing the number of full-time months of regular service by nine months. Should the actual number of days or partial days taught not be available from payroll records and the teacher is compensated for hourly service, service credit will be determined by dividing the number of hours for which compensation was paid by one thousand hours.

(b) The credit for all other types of eligible service shall be determined by dividing the number of days of regular service by two hundred forty days, or dividing the number of full-time months of regular service by twelve months. Should the actual number of days or partial days of employment not be available from payroll records and the individual is compensated for hourly service, service credit will be determined by dividing the number of hours for which compensation was paid by nineteen hundred fifty hours.

(4) The cost pursuant to section 3307.70 of the Revised Code for the purchase of service credit under section 3307.74 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code.

(B) Factors to be used to determine the type of service that may be purchased under section 3307.74 of the Revised Code:

(1) Public school, college or university teaching service - service in a public school located outside the state of Ohio. Type of service will qualify if such school had been located in Ohio and retirement contributions had been amenable to the state teachers retirement system.

Teaching service performed at a public university or college when the member was also a student at the public university or college qualifies for purchase only if the teaching service was performed prior to July 1, 1978, or after that date if performed after membership in the state teachers retirement system of Ohio was first established, or after that date if performed after membership was first established in the state retirement system of the state where the service was rendered and that retirement system covers public teaching service.

(2) Other public service

paid employment by a governmental agency or subdivision of another state, or the United States federal government. Type of service will qualify if such governmental unit had been with Ohio and service rendered was amenable to retirement contributions covered by the public employees retirement system, the school employees retirement system, the Ohio police and fire pension fund, or state highway patrol retirement system. Services compensated by funds not appropriated for use by that governmental entity or fee-based services shall not constitute public service for the purposes of section 3307.74 of the Revised Code.

Service, other than teaching service, performed at a public university or college when the member was also a student qualifies for purchase only if the service:

(a) Is not purchasable with the Ohio public employees retirement system; and,

(b) Was performed prior to July 1, 1978, or after that date if performed after membership in the state teachers retirement system of Ohio was first established, or after that date if performed after membership was first established in the state retirement system of the state where the service was rendered and that retirement system covers such public service.

(3) School or entity operated primarily for United States citizens - service in any school operated by the direct control of the United States government, or by contract of a third party but under control of the United States government, or primarily a school for employees of the United States government or their dependents. As used in this paragraph, primarily for United States citizens shall be defined as a school where at least fifty per cent of the students are United States citizens.

(4) Private school, college or university - teaching service at the time performed in a private school, college or university must meet all of the following categories:

(a) The school, college or university must:

(i) Be recognized by an established accrediting association or governmental agency. The determination of what qualifies as an established accrediting association or governmental agency shall reside solely with the retirement system and its decision shall be final.

(ii) Have the educational credits recognized by a public school, college or university in Ohio.

(iii) Be primarily oriented toward preparation for high school graduation, an advanced degree in higher education, or an advanced certification in higher education. Pre-schools, day care centers, community organizations, private schools oriented primarily to trades and occupations, or self-improvement schools do not qualify under section 3307.74 of the Revised Code.

(b) The position:

(i) On the school level, must be in a position determined by this retirement system as comparable to a position in a public school in Ohio.

(ii) On the college or university level, must have had faculty rank or status.

(iii) On the private university or college level when the member was also a student at the private university or college, will qualify for purchase only if the teaching service:

(a) Had faculty rank or status and such rank or status is confirmed by the private university or college for which the service was performed on a form provided by the state teachers retirement system; and

(b) Was performed prior to July 1, 1978 or after that date if performed after membership in the state teachers retirement system of Ohio was first established.

(C) Service credit may not be purchased for any service that was already used in the calculation or payment of a retirement benefit or that is used in the calculation of a 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, provided:

(1) If participation was in a defined benefit plan, otherwise qualifying service may be purchased upon certification by the plan administrator that there has been a total withdrawal and cancellation of all service credit for the member.

(2) If participation was in a defined contribution plan, otherwise qualifying service may be purchased upon certification by the plan administrator that the member received a total withdrawal of the account, including member contributions and any employer contributions to which the member was entitled.

(3) If the plan is a non-contributory plan where only employer contributions were paid to the retirement plan, the member is eligible to purchase the service only if the member is not vested in the plan and not entitled to any portion of the funds contributed to the plan on the member's behalf.

(D) Service credit may not be purchased under section 3307.74 of the Revised Code for service in an amount that exceeds the sum of service credit the member has earned under section 3307.53 of the Revised Code, restored under section 3307.71 of the Revised Code, granted under section 3307.75 of the Revised Code or purchased under section 3307.72, 3307.751 or 3307.752 of the Revised Code.

Last updated May 14, 2025 at 7:34 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-13

(A) As provided in section 3307.73, 3307.74, 3307.751, 3307.76, 3307.771, or 3307.78 of the Revised Code, a member may purchase service credit at a cost that is equal to one hundred percent of the actuarial liability resulting from the purchase. The cost for each year shall be calculated separately and sequentially and shall be based on the factors outlined in paragraph (B) of this rule.

(B) The member shall pay the retirement system for credit to the member's accumulated account an amount equal to one hundred per cent of the actuarial liability resulting from the purchase of the service credit as determined by an actuary employed by the state teachers retirement board based on the following factors at the time the cost statement is issued:

(1) The member's age as of the previous July first.

(2) The member's years of service credit, which shall include all of the following, except that such total combined service credit shall not exceed one year of credit for any one year, and which shall be determined by the retirement system in its sole discretion:

(a) Total service credit as defined by section 3307.50 of the Revised Code as of the previous June thirtieth unless such service credit reporting is adjusted after that date, then the total service credit as of June thirtieth will be changed to reflect the adjustment made. Should the adjustment in service credit occur after the cost statement is issued but before the payment is completed, a new cost statement reflecting the adjustment in service credit will be issued to the member.

(b) All service credit established after June thirtieth or being purchased through payroll deduction as outlined in this rule and rule 3307:1-3-11 of the Administrative Code under sections 3307.71, 3307.72, 3307.73, 3307.74, 3307.75, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763, 3307.77, 3307.771, and 3307.78 of the Revised Code. Should the amount of service credit in this paragraph change due to other purchases of service credit after the cost statement is issued but before the payment is completed, the member's years of service credit will be adjusted to reflect the change in the years of service credit and a new cost statement will be issued to the member.

(d) All service credit established in the public employees retirement system of Ohio and the school employees retirement system of Ohio including total service credit as defined in sections 145.01 and 3309.01 of the Revised Code and service credit eligible for restoration under sections 3309.26, 3309.261, 145.31 and 145.311 of the Revised Code.

(3) The member's salary base for determining the cost of service credit purchased under section 3307.70 of the Revised Code shall be the compensation as described in paragraphs (B)(3)(a), (B)(3)(b), and (B)(3)(c) of this rule, and if the compensation is adjusted after the cost statement is issued but before the payment is completed, the salary base will be changed to reflect the adjustment made and a new cost statement will be issued to the member. The salary base shall be determined by the retirement system in its sole discretion.

(a) Compensation is defined the same as division (L) of section 3307.01 of the Revised Code.

(b) The calculation of cost shall be based upon the greater of the salary base amount as defined in section 3317.13 of the Revised Code, final average salary or the most recent year in which the member had compensation upon which contributions were made, adjusted to full-time equivalence if less than full-time.

(c) The salary base shall also include all compensation with the public employee's retirement system and school employee's retirement system for the same year in which the member had compensation as described in paragraphs (B)(3)(a) and (B)(3)(b) of this rule.

(1) If the member has one year of service credit eligible for purchase, the member will receive one year of service once the payment for one hundred percent of the actuarial liability created by the purchase has been paid in full.

(2) If the member is only eligible to purchase less than one year of service credit, the member will receive that amount of service credit once the payment for one hundred percent of the actuarial liability created by the purchase has been paid in full. If the member certifies additional service credit as eligible for purchase, the member will receive service credit for the balance of the year, if any balance is remaining for the last year, at no additional cost. A member will not receive more service credit than he or she is eligible to purchase.

(D) Service credit may be purchased by one of the following methods:

(1) Lump sum purchase. In order for a member to purchase service credit through a lump sum purchase all of the following shall apply:

(a) The retirement system will provide the member with a cost statement indicating the amount of service credit eligible for purchase and the current cost based on the factors described in paragraph (B) of this rule.

(b) The member must return the completed and signed cost statement with the first payment.

(c) A member must complete the service credit purchase on the cost statement by the earlier of the end of the month following the ninetieth day after the retirement system receives the first payment or June thirtieth.

(d) No service credit will be posted to a member's account until all funds for the total purchase of service credit have been received by the retirement system.

(e) If the member does not complete the purchase by the deadline established under paragraph (D)(1)(c) of this rule and indicated on the cost statement, then all payments received by the retirement system will be returned.

(2) Installment purchase plan. The following plan for purchase of service credit by payroll deduction is hereby established pursuant to sections 3307.70 and 3307.701 of the Revised Code:

(a) A member who has applied for the purchase of service credit pursuant to section 3307.73, 3307.74, 3307.751, 3307.76, or 3307.771 of the Revised Code may elect to make payment to purchase one year of service credit, or the full amount of service credit eligible for purchase if the member is only eligible to purchase less than one year of service credit, by payroll deduction over a period of up to three years if the member will receive regular periodic payments of salary or wages by the employer over that period in an amount after taxes and other deductions that is at least equal to the payment to be deducted.

(i) Where eligible service has been certified, the retirement system will provide to the member a form for the member's use in initiating purchase of service credit by payroll deduction and a statement setting forth the total cost of such purchase and a statement of the monthly deductions necessary to spread payment over periods ranging from one to three years.

(ii) If a member wishes to elect payment by payroll deduction, the member shall complete and sign the form so provided to indicate the amount to be deducted monthly and file it with the member's employer.

(b) A form so filed with an employer shall be completed by the employer to indicate the date deductions will begin, which date shall be agreed upon by the member and the employer but in no case shall it be later than three months after the form is filed with the employer, and the monthly amount to be deducted. The employer shall transmit the form to the retirement system no later than the last day of the month preceding the month in which deductions will begin, except that the form may be transmitted with the first month's payroll deduction if the monthly deduction equals or exceeds the minimum payment specified in paragraph (D)(2)(d) of this rule.

(c) Amounts deducted by an employer shall be transmitted monthly to the retirement system no later than the fifteenth day of the month following deduction. Employers will be charged interest on amounts not received by such time at the rate specified in rule 3307:1-3-01 of the Administrative Code.

(d) Monthly payments shall not be less than the amount specified to purchase service credit over the maximum period allowable under paragraph (D)(2)(a) of this rule, and shall not be less than fifty dollars. Deducted payments in an amount less than the applicable minimum will be returned to the employer and that payroll deduction plan will be cancelled.

(e) Except for purchase under a tax-deferred plan as provided in paragraph (D)(2)(k) of this rule, the amount of deduction selected by a member may be changed by written notice given by the member to the employer; however, the monthly payment deducted shall not be less than the minimum specified in paragraph (D)(2)(d) of this rule.

(f) Except for purchases under a tax-deferred plan as provided in paragraph (D)(2)(k) of this rule, a member may elect to terminate payroll deduction at any time by notice to the employer in such manner as the employer may specify. Termination of employment or the grant of a disability benefit under section 3307.63 or 3307.631 of the Revised Code shall terminate payroll deduction. In the event a member who has been purchasing service credit by payroll deduction terminates employment and becomes employed as a teacher by a different employer, a new application for payroll deduction will be required and it shall be the member's responsibility to file such application with the new employer to complete the purchase during the time period specified under the original payment schedule. The member shall have until the end of the month after the ninetieth day following termination of employment to file the application with the new employer. If the member does not resume the payroll deduction plan with a new employer or complete the purchase through a lump-sum payment by the deadline specified in this paragraph, then all funds will be returned as specified in paragraph (D)(2)(m) of this rule.

(g) A member will be eligible for payroll deduction by any employer for restoration or purchase under only one cost statement at any given time. If employed by more than one employer, a member may not simultaneously participate in more than one payroll deduction plan. No portion of qualifying service credit being purchased pursuant to this rule under a tax-deferred plan as provided in paragraph (D)(2)(k) of this rule shall be purchasable under provisions of rule 3307:1-3-02 of the Administrative Code unless payroll deductions under this rule are first terminated.

(h) Changes in the interest rate applicable under rule 3307:1-3-01 of the Administrative Code will result in the recalculation of a new payroll deduction schedule for the remaining balance of service credit as of the effective date of the change in interest rate. A member participating in payroll deduction will be sent a recalculation in the event of such a change and may then either reselect the amount to be deducted in order to maintain the original payment schedule or alter the period of time involved, up to a maximum of three years from the date the original payroll deduction plan began. In all cases the member must pay at least the minimum monthly payment as specified in paragraph (D)(2)(d) of this rule.

(i) The retirement system will prepare a monthly listing of participating employees based upon the payroll deduction forms and designated changes thereto previously submitted by an employer. Such listing shall be sent to the employer monthly and shall set forth the expected deduction for each participant. The employer shall enter the amount actually deducted and return the listing and deducted amounts to the retirement system by the fifteenth of each month.

(i) If the actual deduction is less than the minimum deduction, the payroll deduction plan will be terminated. Purchase of additional service credit by payroll deduction will require a new application. Should the payroll deduction plan not resume with an employer or the payment for the service credit not be completed with the retirement system by the earlier of the end of the month following the ninetieth day from the last payment made by payroll deduction or June thirtieth, then all funds will be returned as specified in paragraph (D)(2)(m) of this rule.

(ii) Participating members may be added by an employer if accompanied by the application form and the actual deduction equals or exceeds the minimum deduction as of the month the deduction begins.

(j) Accumulated deductions for the purchase of service credit shall be refundable only upon termination of covered employment and withdrawal of accumulated contributions pursuant to section 3307.56 of the Revised Code, except that upon the request of the member, the cost of service credit purchased by payroll deduction may be refunded for the reasons set forth in paragraph (G) of rule 3307:1-3-02 of the Administrative Code.

(k) An employer may adopt a plan in compliance with section 414(H)(2) of the Internal Revenue Code for the purchase of service credit by payroll deduction with payments designated as picked-up by the employer. An employer shall notify the retirement system of its adoption of any such plan at least sixty days before it goes into effect on a form provided by the retirement system. A member who has chosen to participate in such a plan may not terminate or alter payroll deduction until the service credit at a cost of one hundred percent of the actuarial liability is fully purchased or employment is terminated.

(l) In lieu of payroll deduction, the retirement system will accept from the employer lump-sum payments for certified purchasable service credit for a member. The employer must submit a document indicating if the payment is from after-tax or tax-deferred funds. Tax-deferred funds will only be accepted by the retirement system if the employer has adopted a plan in compliance with section 414(H)(2) of the Internal Revenue Code as specified in paragraph (D)(2)(k) of this rule.

(m) If there is a refund of only the purchased service credit within two years of receipt, the funds will be returned to the employer unless the employer requests distribution to the member; upon such request by the employer, the funds will be returned to the member and federal taxes will be withheld as required under federal law and regulations, if the money was tax-deferred.

(n) If a member purchasing service credit through payroll deduction applies for service retirement, the retirement system will notify the employer to stop the deductions the month before the member's benefit effective date and will send the member a cost statement for any remaining amount due to complete the purchase of service credit at a cost of one hundred per cent of the actuarial liability created by such purchase. Should the payroll deduction plan not be completed with the retirement system within three months of the retirement date, then all funds will be returned as specified in paragraph (D)(2)(m) of this rule.

Last updated March 6, 2025 at 12:57 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-04 Military service credit.

(A) For purposes of sections 3307.70 and 3307.75, divisions (A)(1) and (B) of section 3307.751, and section 3307.752 of the Revised Code:

(1) Effective July 1, 2011, a member shall be granted one-twelfth of a year of service credit for each month purchased.

(2) A full month of service credit shall be granted for the month of entry and the month of discharge for only one period of service.

(3) Except for purchases under section 3307.752 of the Revised Code, military service must be certified on an application provided by the retirement system and accompanied by a DD214 military separation form or an NA form 13038.

(B) For purposes of division (A)(2) of section 3307.751 of the Revised Code:

(1) Service credit eligible for purchase shall be determined by dividing the actual number of days of active military service in the Ohio national guard or reserves by three hundred sixty-five. In all cases, the determination of the amount of service eligible for purchase resides solely with the retirement system and its decision shall be final.

(2) Active duty with the Ohio national guard or active duty reserve service must be certified on an application provided by the retirement system and accompanied by a military form stating the dates of service that is acceptable documentation by the retirement system. The determination of acceptable documentation shall reside solely with the retirement system and its decision shall be final.

(C) For purposes of sections 3307.75 and 3307.751 of the Revised Code, time spent as a student enrolled at a military service academy does not constitute active duty and does not qualify under those sections.

(D) To qualify for a grant of or purchase of service credit under sections 3307.75 and 3307.752 of the Revised Code, a member must have entered uniformed services within five months of leaving employment covered by this retirement system.

(E) For purposes of sections 3307.751, 3307.752, 3307.761 and 3307.763 of the Revised Code the amount of military service credit that can be purchased under each section cannot exceed five years, except that service credit purchased for periods as a prisoner of war under division (B) of section 3307.751 of the Revised Code cannot exceed an additional five years.

(F) To qualify for a grant of service credit under section 3307.75 of the Revised Code:

(1) A member who entered military service within five months of leaving employment covered by this retirement system and who subsequently withdrew contributions made prior to the military service must restore at least the lesser of one year of service credit or the total amount of service credit cancelled upon the withdrawal.

(2) A member must return to service as a teacher as defined in section 3307.01 of the Revised Code or to a position covered by the public employees retirement system or the school employees retirement system within two years of the effective date of military discharge and must thereupon establish at least one year of service credit. If the member thereafter withdrew Ohio public service that meets this requirement, at least one full year of withdrawn service credit must be restored to qualify as a return to service.

(G) Effective January 1, 2014, the cost pursuant to section 3307.70 of the Revised Code for the purchase of service credit under section 3307.751 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code. Service credit may not be purchased under section 3307.751 of the Revised Code for service credit in an amount that exceeds the sum of service credit the member has earned under section 3307.53 of the Revised Code, restored under section 3307.71 of the Revised Code or purchased under section 3307.72 of the Revised Code.

(H) For purchases of service credit for service in the uniformed services under section 3307.752 of the Revised Code:

(1) The cost shall be equal to the sum of the member and employer contributions that would have been made 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.

(2) The cost shall be without interest for a period which is the lesser of five years or three times the member's period of service beginning from the later of the member's date of reemployment or October 29, 1996. If interest is applied, it is applicable to the member contributions only.

(3) The member must have returned to covered employment as a teacher by the same employer within three calendar months after honorable discharge or release from the uniformed service.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-05 Non-paid professional leaves approved by the retirement board.

A member may complete retirement contributions and obtain service credit for non-paid professional leaves as approved by the retirement board by complying with the following requirements:

(A) Eligibility requirements:

(1) An annual contract for service covered by this system during the year within which the absence occurred.

(2) A leave granted by the employer for the purpose of accepting an assignment during such absence. Leaves will not be recognized for a period greater than a total of two school years for each period of leave.

(3) Assignments that will be considered for service credit under this rule are those related to professional duties and responsibilities of members or activities which may be expected to improve the service rendered by a member upon return to employment.

(4) Not later than twelve months following termination of the leave the member must resume contributing service covered by this system, the public employees retirement system or the school employees retirement system.

(5) Approval of the employer for the payment of the employer cost without reimbursement from the member.

(6) Retirement board approval for the member to make retirement contributions covering the period of absence.

(B) Procedural requirements:

(1) Subsequent to the termination of the leave the member must submit to the retirement board:

(a) A statement showing the nature and purpose of the assignment during such absence.

(b) A written request to the retirement board for approval of payment by the member of member contributions.

(i) Member's annual contract salary in effect for each year or part of year (first of July to thirtieth of June) in which there was such absence.

(ii) Official action of the employer granting the leave stating the beginning date and the termination date.

(iii) Official action of the employer approving the payment of the employer cost without reimbursement from the member.

(2) If the member pays to the employer the amounts specified by paragraph (C)(1) of this rule within sixty days of notice that the retirement board has approved the request, the employer shall within thirty days of payment by the member pay to the retirement system the amount specified by paragraph (C)(2) of this rule along with the amounts paid by the member.

(1) Member costs:

(a) If payment is received by the retirement system by June thirtieth of the year in which the leave occurred, the member shall pay the difference between the contributions deducted from salary payments during the leave period, if any, and the contributions due based on the contract salary.

(b) If payment is received by the retirement system after June thirtieth of the year in which the leave occurred, the member shall pay the sum of the following for each year of credit purchased:

(i) An amount determined by multiplying the employee rate of contribution in effect at the time the leave commenced by the contract salary the member would have received for the leave less salary payments made during the leave period, if any.

(ii) Interest compounded annually, at a board determined rate, on the amount determined under paragraph (C)(1)(b)(i) of this rule from the day following the last day of the year in which the leave terminated and ending through the month of payment.

(iii) Interest compounded annually, at a board determined rate, on the employer contribution determined under paragraph (C)(2) of this rule from the day following the last day of the year in which the leave terminated and ending through the month of payment.

(2) Employer contribution: the employer shall pay to the system for each year of credit purchased under this rule an amount determined by multiplying the employer contribution rate in effect at the time the leave commenced by the contract salary the member would have received for the leave less salary payments made during the leave period, if any.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-06 Contributions during non-teaching periods.

Section 3307.77 of the Revised Code permits a teacher who is under contract the right to complete contributions for a period during which the teacher was prevented by illness, injury, a leave granted pursuant to section 3319.13, 3319.131, or 3345.28 of the Revised Code, or other reasons approved by the state teachers retirement board, from making regular retirement contributions.

To facilitate crediting of such contributions, employer contributions, and associated service credit, the following rule applies:

(A) In the event of absences for non-teaching periods caused by illness, injury, or leave pursuant to section 3319.13, 3319.131 or 3345.28 of the Revised Code; absences caused by school closings for weather conditions or other emergency conditions that alter the regular school year and which are beyond the control of the member; or leave pursuant to the Family and Medical Leave Act of 1993, Pub. L. 103-3, 107 Stat. 6, 29 U.S.C. 2601:

(1) Employee contributions shall be made at the member's option.

(2) The employer may make such deductions from other payrolls during the year in which the absence occurred as authorized in division (C) of section 3307.77 of the Revised Code.

(3) Nothing herein shall be construed as authorizing the employer to make additional deductions from payrolls during a year other than the year in which the absence occurred.

(4) Employer contributions from the member's employer at such time as the leave commenced shall be due based upon the date the member has contributions deducted or pays contributions to the employer.

(5) As authorized in division (D) of section 3307.77 of the Revised Code, if a member has changed employment, the employer responsible for accepting and forwarding contributions for the leave period shall be the member's employer at such time as the absence or leave commenced.

(6) "Date of payment," as used under divisions (D)(2) and (D)(3) of section 3307.77 of the Revised Code, means the end of the month in which payment is made.

(7) "Last day of the year in which the absence or leave terminated," as used under divisions (D)(2) and (D)(3) of section 3307.77 of the Revised Code, means the last day of the fiscal year in which there is service credit certified with the retirement system as eligible for purchase.

(B) Contributions may be submitted for purchases of service credit for absences, subject to approval by the executive director or the director's designee.

(C) Contributions may be submitted after the effective date of retirement for purposes of service credit for absences under section 3307.77 of the Revised Code, if the additional contributions will reduce or eliminate limitation of the compensation that may be included in final average salary under section 3307.501 of the Revised Code.

(D) Members purchasing leaves of absence pursuant to section 3307.77 of the Revised Code to meet the two year or one year disability eligibility application requirement pursuant to division (D) of section 3307.62 of the Revised Code shall purchase at a minimum, the time period extending from the date the leave began through the date required to meet eligibility.

(E) Members shall not be permitted to purchase leaves of absence pursuant to section 3307.77 of the Revised Code for:

(1) Leave periods granted retroactively, that if purchased, would qualify the member to apply for disability benefits with the retirement system; or

(2) Leave periods during which the member received disability benefits from the retirement system.

Last updated March 6, 2025 at 12:56 PM

History

Effective: July 1, 2021
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-07 Other Ohio public service.

(A) To be eligible for purchase of service credit under sections 3307.70 and 3307.76 of the Revised Code, service credit must:

(1) Be non-teaching service with an Ohio public school, college or university or be service with the state of Ohio or its agencies, instrumentalities or subdivisions; and

(2) Be properly certified by the employer or custodian of records on a form approved by the retirement system. This certification shall be based upon a legitimate source of documentation such as payroll or retirement records of the state, municipality, public institution, or public school. When records have been destroyed, an affidavit from the member may be used, but only in conjunction with other documented evidence establishing proof and amount of service. The determination of acceptable documentation shall reside solely with the retirement system and its decision shall be final.

(B) Effective January 1, 2014, the cost pursuant to section 3307.70 of the Revised Code for the purchase of service credit under section 3307.76 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code.

(C) A member is ineligible to purchase credit under section 3307.76 of the Revised Code if credit for the service may be obtained from the public employees retirement system or the 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.

Last updated May 14, 2025 at 7:35 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-08 Establishment of service credit for leaves of absence and resignations due to pregnancy or adoption.

Service credit for periods of absence due to pregnancy leave or pregnancy resignation or adoption of a child may be purchased, subject to sections 3307.70 and 3307.771 of the Revised Code and the following requirements and procedures:

(A) Eligibility requirements:

(1) A member must have resigned from a teaching position covered under Chapter 3307. of the Revised Code before July 1, 1982 due to pregnancy or adoption of a child or prior to that date, must have been granted an official leave of absence from such a position due to pregnancy or adoption.

(2) A member may not purchase service credit under section 3307.771 of the Revised Code if service credit for the absence has already been purchased or established under any other section of Chapter 3307. of the Revised Code.

(3) A resignation or leave shall qualify as an absence due to the adoption of a child for the purposes of section 3307.771 of the Revised Code if:

(a) A child was placed in the member's home within twelve months of the effective date of the resignation or leave; and

(b) A final court order granting adoption to the member has been entered for the same child.

(B) Procedural requirements:

(1) An employer that granted a leave must provide the retirement system with a certification stating the period and purpose of the leave.

(2) An employer that accepted a resignation must provide the retirement system with a certification indicating the date of and the reason for the resignation.

(3) If the employer is not able to certify the reason for the leave or resignation was due to pregnancy, the member must provide one of the following:

(a) A photocopy of the child's birth certificate if the member's pregnancy resulted in birth; or

(b) A statement based on medical records if the member's pregnancy did not result in birth.

(4) If the employer is not able to certify that the reasons for the leave or resignation was due to adoption, documentation establishing that the child was placed in the member's home within twelve months after the effective date of the leave or resignation shall be provided by the member.

(5) Certifications and applications for the purchase of service credit must be completed on forms approved by the retirement system.

(6) Effective January 1, 2014, the cost pursuant to section 3307.70 of the Revised Code for the purchase of service credit under section 3307.771 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code.

Last updated March 6, 2025 at 12:57 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-09 Purchase of credit for service as a school board or governing board member.

(A) Application for the purchase of service credit pursuant to section 3307.78 of the Revised Code shall be made on a form approved by the retirement system and shall include certification of the service.

(B) A member may purchase credit for service as a school board or governing board member prior to July 1, 1991 if the member meets the requirements set forth in section 3307.78 of the Revised Code. A member may purchase credit for concurrent service as a member of more than one school board or governing board, provided that the total of all service credit earned or purchased for any school year shall not exceed one year.

(C) Effective January 1, 2014, the cost pursuant to section 3307.70 of the Revised Code for the purchase of service credit under section 3307.78 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code.

Last updated March 6, 2025 at 12:57 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-10 Purchase of credit for waived service.

(A) A member may make application for the purchase of service credit under section 3307.73 of the Revised Code if a total of at least one and one-half years of contributing service under this system or eighteen months of contributing service credit under the public employees retirement system or the school employees retirement system has been established. A member who is also a member of the public employees retirement system or the school employees retirement system is ineligible to purchase service credit under this system if the unadjusted service credit established under either one of those systems exceeds the service credit established under this system.

(B) The member shall request that the employer for whom the service was performed certify such service to this system. Once certification is received from the employer, the amount of service credit otherwise qualifying for purchase shall be determined as follows:

(1) If the service credit to be purchased is for service waived or exempted under Chapter 3307. of the Revised Code or denied pursuant to rule 3307-4-01 of the Administrative Code, upon receipt of the certification of the employer, the system shall determine the amount of service credit that would have been earned had the service not been waived, exempted or denied.

(2) If the service credit to be purchased is for service that would have been covered under Chapter 145. or Chapter 3309. of the Revised Code, the system shall contact the applicable retirement system and shall request certification from that retirement system that the service was exempt.

(3) Service credit may not be purchased for any service:

(a) Which is concurrent with any other service credit that will be used in calculating a benefit under Chapter 145., Chapter 3307., or Chapter 3309. of the Revised Code; or

(b) If the purchase would result in the establishment of total service credit under Chapter 145., Chapter 3307., and Chapter 3309. of the Revised Code which exceeds a year of service credit in any year.

(C) Once service qualifying for purchase has been certified and determined pursuant to paragraph (B) of this rule, the cost for the purchase of service credit under section 3307.70 of the Revised Code shall be determined as specified in rule 3307:1-3-13 of the Administrative Code.

Last updated March 6, 2025 at 12:57 PM

History

Effective: May 7, 2015
Promulgated Under: 111.15

Ohio Adm.Code 3307-4-01

(A) Membership in the retirement system may be denied to the following categories of teachers employed on a temporary basis:

Visiting faculty members appointed to an academic chair in Ohio, provided;

(1) The appointment will not exceed two years;

(2) The faculty member will terminate employment upon completion of the appointment;

(3) The faculty member will remain the employee of a school, college or university other than an Ohio public employer.

(B) A member employed on a part-time basis as a student employee by a school, college or university in which he or she is regularly attending classes may make application to be exempt from contributions to the retirement system, provided that:

(1) Application for exemption from contribution is made within thirty days of such employment or enrollment as a student on a form provided by the retirement system;

(2) The exemption from contribution remains in effect until employment as a student employee of that employer is terminated or contributions are made upon compensation paid by that employer, whichever occurs earlier;

(3) A member on leave of absence from a teaching position covered by the retirement system shall be ineligible for exemption from contribution;

(4) Membership shall be maintained throughout any period of exemption from contribution and such exemption shall not constitute termination of covered employment within the meaning of section 3307.56 of the Revised Code.

(C) Requests for denial of membership or contribution pursuant to this rule shall be made jointly by the teacher and employer involved. Failure to comply with any of the conditions specified in paragraph (A) or paragraph (B) of this rule shall void any denial of membership or contribution previously granted and contributions will thereupon be due beginning with the initial date of appointment.

(D) No service credit will be awarded for any period for which a person is exempted from contribution. A person shall be forever barred from claiming credit for any such period, except as provided by section 3307.73 of the Revised Code.

(E) Supplemental salaried service: Compensation received as a result of reimbursement from a contracted third party or agency for supplemental services rendered in addition to the full-time contracted work period or workload shall not be subject to contributions to the retirement system as provided in division (B) of section 3307.01 of the Revised Code and section 3307.26 of the Revised Code. As such, no service credit is granted for these services.

Last updated May 4, 2023 at 8:23 AM

History

Effective: May 4, 2023
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-11 Payroll deductions for purchase and restoration of service credit.

The following plan for restoration or purchase of service credit by payroll deduction is hereby established pursuant to section 3307.701 of the Revised Code:

(A) Service credit eligible for payment by payroll deduction shall be determined as follows:

(1) Effective January 1, 2014, a member who has applied for restoration of service credit pursuant to section 3307.71 or division (C) of section 3307.761 of the Revised Code or purchase of service credit pursuant to section 3307.72 of the Revised Code may elect to make payment for all or a portion of such restoration or purchase by payroll deduction over a period of up to five years if the member will receive regular periodic payments of salary or wages by the employer over that period in an amount after taxes and other deductions that is at least equal to the payment to be deducted.

(2) Where eligible service has been certified, the retirement system will provide to the member:

(a) A statement setting forth the total cost of such restoration or purchase; and

(b) A statement setting forth the cost of such restoration or purchase on a cost per year basis.

(3) Upon request, the retirement system will provide a form for the member's use in initiating restoration or purchase by payroll deduction, which shall include a statement of the monthly deductions necessary to spread payment over periods ranging from one to five years.

Such statement shall be based upon the assumption that the interest rate then in effect under rule 3307:1-3-01 of the Administrative Code remains constant throughout each such period; however, the statement shall inform the member that the actual cost of restoration or purchase shall be subject to any change, during the period of deduction, in the interest rate applicable to such restoration or purchase.

(4) If a member wishes to elect payment by payroll deduction, the member shall complete and sign the form so provided to indicate the amount to be deducted monthly and file it with the member's employer.

(B) A form so filed with an employer shall be completed by the employer to indicate the date deductions will begin, which date shall be agreed upon by the member and the employer but in no case shall it be later than three months after the form is filed with the employer, and the monthly amount to be deducted. The employer shall transmit the form to the retirement system no later than the last day of the month preceding the month in which deductions will begin, except that the form may be transmitted with the first month's payroll deduction if the monthly deduction equals or exceeds the minimum payment specified in paragraph (D) of this rule.

(C) Amounts deducted by an employer shall be transmitted monthly to the retirement system no later than the fifteenth day of the month following deduction. Employers will be charged interest on amounts not received by such time at the rate specified in rule 3307:1-3-01 of the Administrative Code.

(D) Monthly payments shall not be less than the minimum amount specified to restore or purchase service credit over the maximum period allowable under paragraph (A) of this rule, and shall not be less than fifty dollars. Deducted payments in an amount less than the applicable minimum will be returned to the employer and that payroll deduction plan will be cancelled.

(E) Except for purchase under a tax-deferred plan as provided in paragraph (L) of this rule, the amount of deduction selected by a member may be changed by written notice given by the member to the employer; however, the monthly amount deducted shall not be less than the minimum monthly payment specified in paragraph (D) of this rule.

(F) Except for purchases under a tax-deferred plan as provided in paragraph (L) of this rule, a member may elect to terminate payroll deduction at any time by notice to the employer in such manner as the employer may specify. Termination of employment or the grant of a disability benefit under section 3307.63 or 3307.631 of the Revised Code shall terminate deduction. In the event a member who has been restoring or purchasing service credit by payroll deduction terminates employment and becomes employed as a teacher by a different employer, a new application for payroll deduction will be required and it shall be the member's responsibility to file such application with the new employer to complete the restoration or purchase during the time period specified under the original payment schedule. The new cost calculation shall be based on the applicable cost criteria and interest rate in effect at the time of such application under rule 3307:1-3-01 of the Administrative Code.

(G) A member will be eligible for payroll deduction by any employer for restoration or purchase under only one cost statement at any given time. If employed by more than one employer, a member may not simultaneously participate in more than one payroll deduction plan. No portion of qualifying service credit being purchased pursuant to this rule under a tax-deferred plan as provided in paragraph (L) of this rule shall be purchasable under provisions of rule 3307:1-3-02 of the Administrative Code unless payroll deductions under this rule are first terminated.

(H) Changes in the interest rate applicable under rule 3307:1-3-01 of the Administrative Code will result in the recalculation of a new payroll deduction schedule for the remaining balance of service credit as of the effective date of the change in interest rate. A member participating in payroll deduction will be sent a recalculation in the event of such a change and may then either reselect the amount to be deducted in order to maintain the original payment schedule or alter the period of time involved, up to a maximum of five years for each full or partial year of qualifying service credit. In all cases, the member must pay at least the minimum monthly payment as specified in paragraph (D) of this rule.

(I) A new application is required for restoration or purchase of additional service credit. The employer will be billed annually by fiscal year for employer contributions required for member purchases under sections 3307.72 and 3307.77 of the Revised Code. If the payroll deduction payments are terminated or paid-off within the year, the employer will be billed after the final payroll deduction payment. Any amounts unpaid by the first day of October of any year may be certified for payment under section 3307.31 of the Revised Code. The Ohio police and fire pension fund or state highway patrol retirement system will be notified annually by fiscal year of the amount purchased from the state teachers retirement system under section 3307.761 of the Revised Code. If the payroll deduction payments are terminated or paid-off within the year, the other retirement system will be notified of the amount of purchase after the final payroll deduction payment.

(J) The retirement system will prepare a monthly listing of participating employees based upon the payroll deduction forms and designated changes thereto previously submitted by an employer. Such listing shall be sent to the employer monthly and shall set forth the expected deduction for each participant. The employer shall enter the amount actually deducted and return the listing and deducted amounts to the retirement system by the fifteenth of each month.

(1) If the actual deduction is less than the minimum deduction, the payroll deduction plan will be terminated and the service credit purchased to date will be credited to the member's account. Purchase of additional service credit by payroll deduction will require a new application.

(2) Participating members may be added by an employer if accompanied by the application form and the actual deduction equals or exceeds the minimum deduction as of the month the deduction begins.

(K) Accumulated deductions for the purchase or restoration of service credit shall be refundable only upon termination of covered employment and withdrawal of accumulated contributions pursuant to section 3307.56 of the Revised Code, except that upon the request of the member, the cost of service credit purchased by payroll deduction may be refunded for the reasons set forth in paragraph (G) of rule 3307:1-3-02 of the Administrative Code.

(L) An employer may adopt a plan in compliance with section 414(H)(2) of the Internal Revenue Code for the purchase of service credit by payroll deduction with payments designated as picked-up by the employer. An employer shall notify the retirement system of its adoption of any such plan at least sixty days before it goes into effect on a form provided by the retirement system. A member who has chosen to participate in such a plan may not terminate or alter payroll deduction until the service credit is fully purchased or employment is terminated.

(M) In lieu of payroll deduction, the retirement system will accept from the employer lump-sum payments for certified purchasable service credit for a member. The employer must submit a document indicating if the payment is from after-tax or tax-deferred funds. Tax-deferred funds will only be accepted by the retirement system if the employer has adopted a plan in compliance with section 414(H)(2) of the Internal Revenue Code as specified in paragraph (L) of this rule.

(N) If there is a refund of only the purchased service credit within two years of receipt, the funds will be returned to the employer unless the employer requests distribution to the member; upon such request by the employer, the funds will be returned to the member and federal taxes will be withheld as required under federal law and regulations, if the money was tax-deferred.

(O) If a member purchasing service through payroll deduction applies for service retirement, the retirement system will notify the employer to stop the deductions the month before the member's benefit effective date and will send the member a cost statement for any remaining service credit eligible for purchase.

Last updated March 6, 2025 at 12:57 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Chapter 3307:1-4 Determination of Final Average Salary

Ohio Adm.Code 3307:1-4-01 Compensation includible in the determination of final average salary.

The following criteria and procedures are established by the retirement board pursuant to section 3307.501 of the Revised Code.

(A) As used in section 3307.501 of the Revised Code and this rule, a percentage increase shall be considered to be generally applicable if:

(1) It is paid by a school board or governing board, school district, or governing authority of a community school or a science, technology, engineering, and mathematics school pursuant to a teacher salary schedule with the same employer including performance based payments that are paid in accordance with uniform criteria applicable to all members covered under the teacher salary schedule and employed by the employer without regard to supplemental or extended pay contracts; or

(2) It is paid by a school board or governing board, school district, or governing authority of a community school or a science, technology, engineering, and mathematics school to an employee not paid under the teacher salary schedule up to the amount payable under the teacher salary schedule including performance based payments that are paid in accordance with uniform criteria applicable to all members covered under the teacher salary schedule and employed by the employer to teachers with equivalent service and education without regard to supplemental or extended pay contracts; or

(3) It is paid by a university or college as an average salary increase attributable to academic services as certified by an authorized representative of the university or college; or

(4) It is paid by a school board or governing board, school district, or governing authority of a community school or a science, technology, engineering, and mathematics school that does not use a teacher salary schedule as an average salary increase as certified by an authorized representative of the employer.

(B) In determining the highest percentage increase in compensation under division (B)(1) of section 3307.501 of the Revised Code, increases in compensation from one fiscal year earnings to another for which a member has not performed full-time service as defined in paragraph (A)(1) of rule 3307:1-2-01 of the Administrative Code in either or both year(s) shall be the greater of:

(1) The projected salary increase established by an actuary for the retirement board based on the member's years of service credit at the beginning of the fiscal year used in calculating the member's final average salary, or

(2) The percentage increase considered generally applicable to members employed by the employer.

(C) Where the two highest years of compensation certified for an applicant for service retirement include a percentage increase otherwise excluded by division (B) of section 3307.501 of the Revised Code, the executive director of the retirement system or his or her designee may include all or part of such percentage increase in the calculation of final average salary, up to a maximum of seventy-five hundred dollars, if:

(1) The increase is related to a diminution of compensation as the result of illness or incapacitation, provided that completion of contributions is not authorized under the terms of section 3307.77 of the Revised Code; or

(2) The executive director of the retirement system or his or her designee determines that other good cause exists for inclusion.

(D) Where a percentage increase is excluded from compensation used to determine final average salary under the provisions of division (B) of section 3307.501 of the Revised Code and paragraph (A) or (B) of this rule, the applicant shall be given written notice of the right to an appeal pursuant to this paragraph, provided:

(1) Requests for an appeal shall be made by the applicant in writing within thirty days of such notice.

(2) The applicant shall be afforded the opportunity to provide written information explaining the arguments for making an exception to the statutory limitation. The applicant shall be informed of the date the retirement system will review and consider the appeal.

(3) All information supporting an applicant's assertion that good cause exists for making an exception to the statutory limitation must be received by the retirement system at least two weeks before the scheduled review.

(E) In determining final average salary under division (C) of section 3307.501 of the Revised Code if disability benefits to a member began before August 1, 2015, the benefits beginning date shall be the effective date disability benefits were granted, provided that monthly benefits continue without any interruption in the monthly stream of benefits to the member pursuant to section 3307.57, 3307.58 or 3307.59 of the Revised Code or to a survivor of the member pursuant to section 3307.66 of the Revised Code.

Last updated May 14, 2025 at 7:35 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-2-01

(A) As used in section 3307.53 of the Revised Code and this rule:

(1) "Full-time service" means employment as a teacher under a contract that:

(a) Requires teaching service that begins and ends on either:

(i) The first and last day of a year consisting of three hundred sixty-five days; or

(ii) The first and last day of a school year of at least the minimum hours required by sections 3313.48 and 3314.03 of the Revised Code or two semesters; and

(2) "Part-time service" means employment on any basis other than those identified in paragraph (A)(1) of this rule.

(B) Calculation of service credit for full-time service:

(2) If less than one hundred twenty days of teaching, the annual service credit will be determined in accordance with paragraph (C) of this rule.

(a) If total compensation for the year is in an amount at least equal to the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be one year.

(b) If total compensation for the year is in an amount less than the base amount as defined in section 3317.13 of the Revised Code, annual service credit shall be the lesser of:

(i) Actual days of service divided by one hundred eighty; or

(ii) Hours of service divided by one thousand, but only if the actual number of days of service is not available from the employer's records; or

(iii) Actual compensation for the year divided by twelve thousand dollars.

(a) Service credit will be determined by the lesser of:

(i) Dividing the number of days or partial days for which compensation was paid for actual teaching service rendered by one hundred eighty; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(b) If actual number of days or partial days taught is not available from payroll records and the teacher is compensated for hourly service, service credit will be determined by the lesser of:

(i) Dividing the number of hours for which compensation was paid by one thousand; or

(ii) Actual compensation for the year divided by twelve thousand dollars.

(D) Calculation of service credit for full-time or part-time service does not include days when the teacher was on-call and no teaching service was performed.

Last updated March 6, 2025 at 12:56 PM

History

Effective: May 5, 2022
Promulgated Under: 111.15

Chapter 3307:1-5 Selection and Reselection of Plan of Payment

Ohio Adm.Code 3307:1-5-01 Selection and reselection of plan of payment for retirees on or before September 1, 1989.

By authority of section 3307.04 and section 3307.60 of the Revised Code, the following rule shall apply to the plans of payment provided in section 3307.58 and 3307.60 of the Revised Code:

(A) The provisions for reselection of a plan of payment set forth in this paragraph shall be applicable to all service retirants granted retirement effective on or before September 1, 1989, except a retirant who elected recalculation of benefits pursuant to section three of Am. H.B. 293 of the 118th General Assembly or a retirant whose application is made on or after September 15, 1989 for retirement effective July 1, 1989 or thereafter, who meet the requirements set forth in division (F) or (G) of section 3307.60 of the Revised Code.

(1) Application for a change of plan of payment must be received by the retirement system on or before the retiree's date of death on a form approved by the retirement board. Payment under a reselected plan of payment shall be effective as follows:

(a) Death of a beneficiary -first of the month following death of beneficiary regardless of when the application is received, provided such beneficiary was designated at the time of retirement. The reselection of a plan of payment shall be limited to the single lifetime benefit equivalent option, as stipulated in paragraph (A)(2) of this rule.

(b) Divorce, annulment or marriage dissolution the later of the first of the month following date application is received by the retirement system or the first of the month after the divorce, annulment or marriage dissolution, provided:

(i) The spouse was designated as beneficiary under the plan of payment selected at retirement; and

(ii) A spousal consent form approved by the retirement system or court order specifically authorizing the reselection of plan of payment on the basis of the marriage termination is received by the retirement system; and

(iii) The reselection of a plan of payment shall be limited to the single lifetime benefit equivalent option, as stipulated in paragraph (A)(2) of this rule.

(c) Marriage or remarriage the later of either the first of the month following the date a completed application on a form approved by the retirement system is received by the retirement system or the first of the month after the marriage or remarriage, except if the marriage or remarriage occurs on or after June 6, 2005, the election must be made not later than one year after the date of the marriage or remarriage. The spouse must be selected as beneficiary as set forth in division (H) of section 3307.60 of the Revised Code and the benefit must be calculated as stipulated in paragraph (A)(3) of this rule.

(2) The single lifetime benefit equivalent to which a retirant may elect to return shall be the gross benefit that the retirant would currently be receiving had the retirant selected a single lifetime benefit at retirement.

(3) Option plans shall be based on the single lifetime benefit actuarially reduced based on the ages in effect when such plan is selected and the option factors in effect on the later of January 1, 1983, or the effective date of retirement. All previously granted cost of living adjustments and ad hoc increases shall also be reduced by such option factor.

Last updated May 14, 2025 at 7:35 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-5-02 Selection and reselection of plan of payment for retirees on or after October 1, 1989.

By authority of sections 3307.04 and 3307.60 of the Revised Code, the following rule shall apply to the plans of payment provided in sections 3307.58, 3307.59 and 3307.60 of the Revised Code:

(A) The provisions for reselection of a plan of payment set forth in this paragraph shall be applicable to all service retirants granted retirement effective on or after October 1, 1989, or a retirant who elects recalculation of benefits pursuant to section three of Am. H.B. 293 of the 118th General Assembly, or a retirant whose application is made on or after September 15, 1989 for retirement effective July 1, 1989 or thereafter, and who meet the requirements set forth in section 3307.60 of the Revised Code.

(a) Death of a beneficiary first of the month following death of beneficiary regardless of when the application is received, provided such beneficiary was designated at the time of retirement. The reselection of a plan of payment shall be limited to the single lifetime benefit equivalent option, as stipulated in paragraph (A)(2) of this rule or as specified in division (A)(4) of section 3307.60 of the Revised Code if a joint and survivor plan of payment with multiple primary beneficiaries was elected.

(i) The spouse was designated as beneficiary under the plan of payment selected at retirement; and

(iii) The reselection of a plan of payment shall be limited to the single lifetime benefit equivalent option, as stipulated in paragraph (A)(2) of this rule or as specified in division (A)(4) of section 3307.60 of the Revised Code if a joint and survivor plan of payment with multiple primary beneficiaries was elected.

(c) Marriage or remarriage the later of either the first of the month following the date a completed application on a form approved by the retirement system is received by the retirement system or the first of the month after the marriage or remarriage, except if the marriage or remarriage occurs on or after June 6, 2005, the election must be made not later than one year after the date of the marriage or remarriage. The spouse must be selected as beneficiary under division (A)(1), (A)(2), (A)(3), (A)(4) or (A)(6) of section 3307.60 of the Revised Code and the benefit must be calculated as stipulated in paragraph (A)(3) of this rule.

(d) For those retirants whose benefit is commenced under a single lifetime benefit in accordance with section 401(a)(9) of the Internal Revenue Code and the regulations thereunder, not later than one year after the date that the benefit described in this paragraph commences, a retirant who was married on the effective date of the benefit may elect a plan of payment under division (A)(1), (A)(2), (A)(3), or (A)(6) of section 3307.60 of the Revised Code and calculated as stipulated in paragraph (A)(3) of this rule provided the spouse is named as the beneficiary. The election shall be made on a form approved by the retirement system and shall be effective on the effective date of the benefit paid under a single life annuity. Any benefit overpayment may be recovered as provided in section 3307.47 of the Revised Code.

(2) The single lifetime benefit equivalent to which a retirant who elected a plan of payment under division (A)(3) of section 3307.60 of the Revised Code or a plan of payment consisting of both a lump sum payment under division (B)(1) of section 3307.60 of the Revised Code and a benefit payable to a beneficiary under division (A)(3) of section 3307.60 of the Revised Code may elect to return shall be the gross benefit that the retirant would currently be receiving had the retirant selected a single lifetime benefit at retirement less any reductions, if applicable, for a lump-sum payment made under division (B)(1) of section 3307.60 of the Revised Code.

(3) Optional plans of payment shall be based on the single lifetime benefit less any reductions, if applicable, for a lump-sum payment made under division (B)(1) of section 3307.60 of the Revised Code actuarially reduced based on the ages in effect as of the effective benefit date when each beneficiary is added as a joint survivor and the option factors in effect on the effective date of retirement. All previously granted cost of living adjustments and ad hoc increases shall also be reduced by such option factor.

(B) Pursuant to division (H)(1) of section 3307.60 of the Revised Code, a retirant married on the effective date of service retirement effective on or after October 1, 1989, a retirant married at the time of an election for recalculation of benefits pursuant to section three of Amended House Bill No. 293 of the 118th General Assembly, or a retirant who applies on or after September 15, 1989 for retirement effective July 1, 1989 or thereafter who is married at the time of such application, shall be deemed to have elected the plan of payment under option 3 as provided under division (A)(3) of section 3307.60 of the Revised Code with half of the retirant's benefit continuing for the lifetime of the spouse, unless:

(1) The applicant elects a plan of payment which provides more than fifty per cent of the benefit payable during the lifetime of the retirant will continue after the retirant's death to the spouse.

(2) The spouse consents on a form approved by the retirement system to the retirant's election of a single life annuity or payment pursuant to an optional plan under which, after the death of the retirant, the spouse will receive less than fifty per cent of the benefit payable during the lifetime of the retirant.

(3) The retirement board waives the deemed election of option 3 after receipt of one of the following:

(a) If the retirement system receives the written statement of a physician certifying that the spouse is medically incapable of acknowledging the plan of payment elected by the applicant, and receives consent by and through a duly appointed guardian, as specified by rule 3307-7-01 of the Administrative Code, or

(b) If the affidavits of the applicant and at least two other persons, one of whom must be unrelated to the applicant, are received by the retirement system attesting that the whereabouts of the spouse is unknown.

(1) The member is required to elect a plan of payment pursuant to 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 the member designates the member's current spouse to receive a survivor annuity of at least fifty per cent or the remaining available survivor benefits, if less, under that plan, or

(2) The amount specified pursuant to a court order or orders under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property is the maximum amount payable to a joint and survivor beneficiary or beneficiaries.

(3) The retirement system is required to commence a benefit in accordance with section 401(a)(9) of the Internal Revenue Code and the regulations thereunder.

(D) A member's current spouse must consent to the election of a plan of payment described in division (A)(4) of section 3307.60 of the Revised Code if either of the following apply:

(1) The member selects a plan of payment described in division (A)(4) of section 3307.60 of the Revised Code, but the member is not subject to 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 that requires the member to make such election;

(2) The member is ordered to designate a former spouse as beneficiary of a specified portion of the benefit, but also designates a beneficiary or beneficiaries other than the member's current spouse under that plan of payment.

(E) A member may elect a plan of payment pursuant to division (A)(6) of section 3307.60 of the Revised Code that is equivalent to a single lifetime benefit in a lesser amount, payable for life, with the following provisions:

(1) The plan of payment shall include:

(a) Continuing monthly benefits of either one hundred per cent or fifty per cent of the benefit payable during the lifetime of the retirant are paid after the retirant's death to a sole primary beneficiary named at retirement; and

(b) Continuing benefits for any months remaining in a certain period that begins on the effective date of retirement and continues for a specific number of years chosen at retirement to a secondary beneficiary or beneficiaries; where

(i) The certain period may be a minimum number of years; or

(ii) The certain period is an extended number of years elected by the member with an additional reduction in the benefit amount as determined by the actuary employed by the retirement board.

(2) Monthly benefits shall not be paid to joint secondary beneficiaries, but joint secondary beneficiaries may receive a lump-sum amount equal to the present value of the benefits remaining in the certain period.

(3) If all beneficiaries die before the expiration of the certain period, the present value of the benefits remaining in the certain period may be paid to the estate of the beneficiary last receiving benefits.

(4) The present value of the benefits remaining in the certain period shall be calculated at the assumed rate of return in effect at the time of payment.

Last updated May 14, 2025 at 7:35 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Ohio Adm.Code 3307-7-01

(A) As used herein, "recipient" shall mean any person who is eligible to receive a payment or benefit under Chapter 3307. of the Revised Code.

(B) Election of or payment of benefits or other monies shall be by and through a duly appointed guardian of the estate or other person specified by court order if:

(1) A recipient is under the age of eighteen and is not in the custody and care of a natural or adoptive parent; or

(2) A recipient is age eighteen or older, but has been adjudicated incompetent by a court with jurisdiction over the recipient; or

(3) A recipient is age eighteen or older and has been determined to qualify for benefits under section 3307.66 of the Revised Code as a result of physical or mental incompetency determined by a doctor of medicine or osteopathic medicine appointed by the retirement board and the recipient's attending doctor of medicine or osteopathic medicine determines the recipient is incapable of handling his or her financial matters because of the physical or mental incompetency. Such determination shall be made in accordance with section 3307.66 of the Revised Code and the procedures set forth in paragraph (H) of rule 3307:1-8-01 of the Administrative Code.

(C) Notwithstanding paragraph (B) of this rule, guardianship will not be required for payment of benefits or other monies due a recipient described in paragraph (B)(1) or paragraph (B)(2) of this rule if documentation has been provided to the retirement system to support one of the following:

(1) Guardianship has been terminated pursuant to section 2111.05 of the Revised Code or its counterpart under the laws of the state with jurisdiction over the recipient, and the court has authorized payment to a person or entity designated by the court; or

(2) A court has authorized payments due to a recipient under the age of eighteen pursuant to section 2111.131 of the Revised Code or its counterpart under the laws of the state with jurisdiction over the recipient to a person or entity designated by the court; or

(3) A court has authorized payments to a representative payee designated by the court, pursuant to some other section of the Revised Code or the laws of the state with jurisdiction over the benefit recipient.

(4) If a guardian, permanent custodian or authorized payee has not been appointed by the courts for a minor child who has no natural guardian or whose natural guardian cannot be located, monthly benefits may be paid to the person in whose custody a minor child resides, provided:

(a) If the natural guardian cannot be located, an application for payment to the person in whose custody a minor child resides must be supported by affidavits from that person and at least two other persons, at least one of whom shall be unrelated to the applicant, attesting that the whereabouts of the natural guardian are unknown.

(b) If a court has awarded temporary custody, monthly benefits will be delayed for a period up to three months following the date of death of the member. If no permanent custody, guardianship or payee order has been made within that period and if no court order directs otherwise, payment may be made to the person who has temporary custody.

(5) For lump sum withdrawals authorized by Chapter 3307. of the Revised Code payable to members, superannuates or other system retirants as defined in section 3307.35 of the Revised Code, including member account withdrawals pursuant to section 3307.56 of the Revised Code and withdrawals pursuant to section 3307.352 of the Revised Code:

(a) With a value of ten thousand dollars or more an application must be signed by the member or by the superannuate or other system retirant, or by the guardian of the estate of the member, superannuate or other system retirant with approval of the court that created the guardianship; or

(b) With a value of less than ten thousand dollars an application must be signed by the member or by the superannuate or other system retirant, or by an attorney in fact who has authority pursuant to a power of attorney to execute financial transactions with the retirement system on behalf of the member, superannuate or other system retirant.

(6) For lump sum payments authorized by Chapter 3307. of the Revised Code payable to beneficiaries and qualified survivors as defined in sections 3307.562, 3307.60 and 3306.66 of the Revised Code:

(a) With a value of ten thousand dollars or more, or of any value if payment is pursuant to division (D) of section 3307.60 of the Revised Code, an application must be signed by either the beneficiary or qualified survivor or by the guardian of the estate for the beneficiary or the qualified survivor with approval of the court that created the guardianship; or

(b) With a value of less than ten thousand dollars, except for lump sum payments pursuant to division (D) of section 3307.60 of the Revised Code, an application must be signed by either the beneficiary or qualified survivor, or by an attorney in fact who has authority pursuant to a power of attorney to execute financial transactions with the retirement system on behalf of the beneficiary or qualified survivor.

(D) Absent a court order otherwise specifying or the consent of the guardian of the estate, account or benefit information shall not be provided to persons appointed to serve only as guardians of the person. Such persons may not exercise rights specified by Chapter 3307. of the Revised Code or the Administrative Code on behalf of a minor child.

(E) Where there is no person clearly identified to the retirement system as authorized to make binding financial decisions or where the appointment by a court of a guardian or payee so requires, that person shall obtain an order of the court approving withdrawal, election of rights, selection of a plan of payment except as provided in division (F) of section 3307.60 of the Revised Code, or designation of beneficiaries.

Last updated March 7, 2023 at 10:39 AM

History

Effective: May 3, 2018
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-5-03 Court orders.

(A) All retirants subject to division (I)(1)(b) of section 3307.60 of the Revised Code shall indicate such requirement on his or her application for service retirement benefits submitted to the retirement system and shall provide a copy of the court order or court orders when making application for benefits pursuant to section 3307.57, 3307.58 or 3307.59 of the Revised Code.

(1) The retirement system in its sole discretion shall determine whether a retirant elects a plan of payment on the application for service retirement benefits that complies with any court orders.

(2) The retirement system may request the retirant to provide additional court orders or other information, as determined solely by the retirement system, to clarify the plan of payment that the retirant is required to elect.

(a) The retirement system shall not commence payment of retirement benefits until it receives the requested additional court orders or other information.

(b) If the retirement system does not receive the requested additional court orders or other information within twelve months of the date of the initial request, the retirant's application for service retirement benefits shall be cancelled.

(B) At any time, before or after monthly benefits begin, a former spouse may waive his or her rights to any part of a lump-sum payment paid before or after the member's death or any portion of a continuing benefit payable after the retirant's death 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 division of marital property. Such waiver shall be effective upon receipt of a notarized statement approved by the retirement system and signed by the affected former spouse. Such waiver shall be a full discharge and release to the board and system from any future claim for such payment.

(C) For purposes of determining the priority of court orders 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 require a member to elect the plan of payment set forth in division (A)(4) of section 3307.60 of the Revised Code and designate a former spouse as a beneficiary, the retirement system shall process such court orders in the order in which they were filed with the clerk of courts.

Last updated March 6, 2025 at 12:58 PM

History

Effective: June 13, 2024
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-5-04 Amounts due and unpaid at death of benefit recipient.

(A) Amounts due to a retirant receiving retirement benefits under a plan described in division (A) of section 3307.60 of the Revised Code and unpaid at death shall be paid to the retirant's surviving beneficiary or beneficiaries under the plan on a prorated basis. The amount payable to each surviving beneficiary shall be determined by multiplying the amount due the retirant by a fraction whose numerator is the gross monthly amount the beneficiary will be paid and whose denominator is the total gross monthly amount all beneficiaries will be paid.

(B) In the event that a deceased retirant's named beneficiary dies after the necessary paperwork has been received by the retirement system, the system will make payment directly to the beneficiary (or beneficiaries) of the retirant's beneficiary in the following order of precedence: (1) surviving spouse, (2) children, share and share alike, (3) parents, share and share alike, (4) estate.

(C) In the event that a deceased retirant's named beneficiary has died and no paperwork has been received by the retirement system, the system will make equal payments to any surviving named beneficiaries of the deceased retirant. If there are no surviving named beneficiaries, the system will make payments in the following order of precedence to the deceased retirant: (1) surviving spouse, (2) children, share and share alike, (3) parents, share and share alike, (4) estate.

Last updated March 6, 2025 at 12:58 PM

History

Effective: May 7, 2020
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-5-05 Early retirement reduction factors.

(A) For purposes of division (E)(2) of section 3307.58 of the Revised Code, the percentage for reducing the annual single lifetime benefit of a member described in division (B)(2) of section 3307.58 of the Revised Code shall be the percentage that provides the member the greatest benefit when using:

(1) Any of the percentages calculated as of each July first occurring on or after July 1, 2016, that immediately precedes the member's effective benefit dates, assuming the member was eligible to retire on that July first; or,

(2) The percentage calculated on the member's effective benefit date.

(B) For purposes of determining eligibility for retirement benefits pursuant to section 3307.58 of the Revised Code, a member shall be considered to continually maintain retirement eligibility upon first meeting age and service eligibility.

Last updated May 14, 2025 at 7:35 AM

History

Effective: May 10, 2025
Promulgated Under: 111.15

Chapter 3307:1-6 Temporary Supplementary Benefit Fund

Ohio Adm.Code 3307:1-6-01 Determination of temporary supplementary benefit fund.

By authority provided in section 3307.671 of the Revised Code, the state teachers retirement board shall establish the following rule for determining the amount of the temporary supplementary benefit fund, if allocated:

(A) A temporary supplementary benefit will be paid to a person granted and paid a benefit by this system upon meeting the eligibility requirements of section 3307.57, 3307.58, 3307.59, 3307.60, 3307.63, 3307.631, or 3307.66 of the Revised Code, if during the year in which a payment is awarded the person received twelve monthly benefit payments including that paid for December.

(B) If more than one person is receiving a benefit under section 3307.66 of the Revised Code from the account of a deceased member the temporary supplementary benefit payable to the account shall be divided into proportionate payments based on the ratio the benefit paid to each benefit recipient who is sharing in the account at the time of payment bears to the total benefit paid on the account. If such division of the temporary supplementary benefit results in a payment of less than twenty-five dollars, the amount shall be increased to twenty-five dollars to each affected recipient.

(C) If more than one person is receiving a joint and survivor annuitant benefit under division (A)(4) of section 3307.60 of the Revised Code, the temporary supplementary benefit payable to the account shall be divided into proportionate payments based on the ratio the benefit paid to each beneficiary bears to the total benefit paid on the account. If such division of the temporary supplementary benefit results in a payment of less than twenty-five dollars, the amount shall be increased to twenty-five dollars to each affected recipient.

(D) If the system has retained a division of property order as provided under sections 3105.88 and 3307.371 of the Revised Code and rule 3307-9-01 of the Administrative Code, the temporary supplementary benefit shall be divided as provided in the division of property order.

(E) A retirant who has been re-employed in violation of the restrictions of section 3307.35 of the Revised Code during a calendar year is ineligible to receive a temporary supplementary benefit for that year. If a determination of violation of section 3307.35 of the Revised Code is made after the payment of a temporary supplementary benefit is paid for the year in which the violation occurred, such benefit shall be repaid or collected along with any other benefits overpaid.

(F) The amount of the temporary supplementary benefit will be determined according to the number of units accumulated by each account, as follows:

(1) One unit is accumulated for each full calendar year that the benefit has been paid from the account.

(a) Except as described in paragraph (F)(1)(c) of this rule, the service retirement benefit effective date shall be used to determine the years the benefit has been received when calculating units for benefits paid under section 3307.60 of the Revised Code to a survivor annuitant of a service retirement benefit.

(b) Except as described in paragraph (F)(1)(c) of this rule, the survivor benefit effective date shall be used to determine the years the benefit has been received when calculating units for benefits paid under section 3307.66 of the Revised Code.

(c) The disability benefit effective date shall be used to determine the years the benefit has been received when calculating units for a recipient who moves from a disability benefit under section 3307.63 or 3307.631 of the Revised Code to either a benefit paid under section 3307.60 of the Revised Code or a benefit paid under section 3307.66 of the Revised Code without a break in benefits.

(2) One unit is accumulated for each year of total service credit as defined by section 3307.50 of the Revised Code and rule 3307:1-1-01 of the Administrative Code. Partial units are accumulated for partial years of such Ohio credit.

(3) Units shall not be accumulated by recipients of disability benefits under section 3307.63 of the Revised Code for years of projected credit used in the calculation of a benefit.

(4) Units shall not include service credit applied to the account of a former disability allowance recipient under section 3307.631 of the Revised Code for the last continuous period during which the recipient received a disability benefit as described in division (B)(1)(b) of section 3307.59 of the Revised Code and is now receiving a service retirement benefit under section 3307.59 of the Revised Code.

(G) For each year in which a temporary supplementary benefit is paid, the state teachers retirement board shall assign a monetary value to each unit, based upon the total amount allocated within the limits established in section 3307.671 of the Revised Code.

(H) The total value of all units actually paid will establish the amount of the temporary supplementary benefit fund for that year.

(I) Any temporary supplemental benefit calculated under this rule shall be reduced by any amounts due to be repaid to the retirement system on an account, without regard to the individual primarily responsible for such repayment.

Last updated March 6, 2025 at 12:58 PM

History

Effective: May 5, 2022
Promulgated Under: 111.15

Ohio Adm.Code 3307-9-01

(A) For purposes of this rule:

(1) "Order" means an order described in section 3105.81 of the Revised Code.

(2) "Alternate payee," "benefit," "lump sum payment" and "participant" have the meanings set forth in divisions (A) to (D) of section 3105.80 of the Revised Code.

(B) The retirement system may retain an order that provides the last four digits of the participant's or alternate payee's social security numbers. After the retirement system retains an order, the alternate payee shall provide information required on a form provided by the retirement system. The retirement system shall not issue payment to the alternate payee until the retirement system receives the information required for payment. The alternate payee shall notify this retirement system in writing of any change in the information.

(1) The fee hereby established shall be deducted prior to calculation of the limit specified by section 3105.85 of the Revised Code.

(2) The fee hereby established shall be divided between the participant and the alternate payee. The fee shall be deducted from the first payment made after retention of an order, except to the extent that the deduction in such manner would exceed the limitation specified by section 3105.85 of the Revised Code, in which case fees shall be paid by deduction from future payments.

(3) The fee shall be calculated under the terms of this rule in effect at the time payment is made.

(a) The fee shall be calculated as an amount equal to the lesser of four hundred dollars or one per cent of the amount a participant in the defined benefit plan is or would be eligible to receive as a lump sum payment under section 3307.56 of the Revised Code.

(b) In the case of a participant in the defined contribution plan, the fee shall be calculated as an amount equal to the lesser of four hundred dollars or one per cent of the amount the participant is or would be eligible to receive as a lump sum payment under the plan in which he or she participates.

(c) In the event a participant is ineligible for a lump sum distribution because benefits have been granted prior to the retention of an order, the fee shall be four hundred dollars.

(D) Pursuant to section 3105.90 of the Revised Code, an order shall be on the form prescribed by the appendix to this rule.

(E) Any benefit or lump sum payment that is owed and unpaid to an alternate payee at the time of the alternate payee's death shall be paid to the estate of the alternate payee.

(F) Any beneficiary designations previously received by the retirement system from an alternate payee shall be voided as of the effective date of this rule and all due and unpaid payments shall be paid as outlined in paragraph (E) of this rule.

View Appendix

Last updated March 7, 2023 at 10:39 AM

History

Effective: May 3, 2018
Promulgated Under: 111.15

Ohio Adm.Code 3307:1-1-01