Ohio Administrative Code 3307:2 — State Teachers Retirement System | Defined Contributions

Chapter 3307:2-1 Defined Contribution Plans - Definitions

Ohio Adm.Code 3307:2-1-01 Definitions.

Except where another definition is specified, for the purposes of sections 3307.80 to 3307.89 of the Revised Code and Chapters 3307:2-1 to 3307:2-6 of the Administrative Code all definitions can be found in the plan document, which is the document or documents adopted by the retirement board to establish the defined contribution program or any of its constituent plans.

Last updated April 15, 2024 at 1:16 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Chapter 3307:2-2 Defined Contribution Plans - Establishment

Ohio Adm.Code 3307:2-2-01 Establishment of defined contribution program, including a defined contribution plan and combined plan.

(A) Defined contribution program. Pursuant to section 3307.81 of the Revised Code, the retirement board hereby establishes a defined contribution program effective July 1, 2001, consisting of such plans as the board may from time to time establish.

The terms and conditions of each such plan shall be as specified by a plan document adopted by the board. The plan document may be amended from time to time without prior notice as the retirement board deems necessary or appropriate. The plans established by the board may include plans in which the performance of investment choices specified by the board and selected by the member are used to determine the cash accumulation in each account and available to the participant upon retirement or withdrawal. The investment choices specified by the board may include a guaranteed return option. Such plans may provide definitely determinable benefits, or any combination of the foregoing.

Contributions made by participants and employers pursuant to sections 3307.26 and 3307.28 of the Revised Code shall be allocated in accordance with the applicable plan documents and as the board may from time to time specify. An account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code shall be maintained for each member who elects to participate in any such plan.

(B) Defined contribution plan. Pursuant to section 3307.81 of the Revised Code, the retirement board hereby establishes the defined contribution plan effective July 1, 2001. The terms and conditions of the defined contribution plan shall be as specified in a plan document adopted by the retirement board.

Contributions made by a participant pursuant to section 3307.26 of the Revised Code and a portion of employer contributions pursuant to section 3307.28 of the Revised Code specified by the retirement board shall be credited to the participant's account in the defined contribution fund. Contributions credited shall be allocated by the participant among investment choices specified by the retirement board.

(C) Combined plan. Pursuant to section 3307.81 of the Revised Code, the retirement board hereby establishes the combined plan effective July 1, 2001. The terms and conditions of the combined plan shall be as specified in a plan document adopted by the retirement board.

A portion of the participant contributions made pursuant to section 3307.26 of the Revised Code as specified by the retirement board shall be credited to a participant's account in the defined contribution fund. Such contributions shall be allocated by the participant among investment choices specified by the retirement board.

A portion of the participant contributions made pursuant to section 3307.26 of the Revised Code and a portion of the employer contributions made pursuant to section 3307.28 of the Revised Code shall be applied as specified by the retirement board to provide retirement, disability and survivor benefits under the terms, conditions and schedules specified by the plan document. A portion of the employer contributions may be allocated to the health care fund under the terms, conditions and schedules specified by the retirement board.

Last updated June 13, 2024 at 8:15 AM

History

• Effective: June 13, 2024
• Promulgated Under: 111.15

Chapter 3307:2-3 Defined Contribution Plans - Election

Ohio Adm.Code 3307:2-3-01 Initial election by new members.

(A) For purposes of section 3307.25 of the Revised Code, Chapter 3307:2-3 of the Administrative Code and the plan document:

(1) "Teacher" shall be a contributing member of the retirement system employed in a position that meets the requirements set forth in division (B) of section 3307.01 of the Revised Code.

(2) "New member" shall mean:

(a) An individual who is employed for the first time as a teacher and who has never previously been a member of the retirement system; or

(b) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code before July 1, 2001; and

(ii) On June 30, 2001 the individual was not a member of the retirement system; and

(iii) The individual thereafter returned to teaching service; or

(c) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system, if:

(i) On June 30, 2001, the individual was a member of the retirement system with five or more years of service credit; and

(ii) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code after July 1, 2001; and

(iii) The individual thereafter returns to teaching service; or

(d) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The prior membership in the system was established on or after July 1, 2001; and

(ii) Upon such prior membership, the individual made an election pursuant to section 3307.25 of the Revised Code to participate in the defined contribution plan or the combined plan; and

(iii) The individual thereafter terminated covered employment and withdrew all contributions or had the account exhausted through fees under the terms of the plan in which he or she was participating prior to the first day of June immediately preceding the fourth anniversary of the June thirtieth of the entry year; and

(iv) The individual thereafter returns to teaching service.

(B) An election of the defined contribution or combined plans made pursuant to section 3307.25 of the Revised Code shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, or new employment as a teacher, except as otherwise specifically provided by the Revised Code, the Administrative Code or the plan document.

(C) An election or an active election of the defined benefit plan made pursuant to section 3307.25 of the Revised Code shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, withdrawal from membership or new employment as a teacher except as otherwise specifically provided by the Revised Code, the Administrative Code or the plan document.

(D) The retirement system shall establish an account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code for an individual who elects participation in a plan established under section 3307.81 of the Revised Code within fourteen days of receipt of a form with a valid plan election.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Chapter 3307:2-4 Defined Contribution Plans - Service Credit

Ohio Adm.Code 3307:2-4-02 Military service.

(A) A participant in the defined contribution plan or the combined plan may make contributions for periods when Ohio teaching service was interrupted by military service under the same terms and conditions as specified for participants in the defined benefit plan by section 3307.752 of the Revised Code. The interest rate used to calculate the cost of any such purchase shall be at the same rate established pursuant to rule 3307:1-3-01 of the Administrative Code for purchases of military service under section 3307.752 of the Revised Code.

(B) The retirement board shall specify the portion of contributions that would have been paid by the participant pursuant to section 3307.26 of the Revised Code, and interest thereon as directed by section 3307.752 of the Revised Code, to be credited as specified by the plan document to the participant's account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code. The remaining contributions that would have been paid by the participant, if applicable, and all employer contributions that would have been paid by the employer pursuant to section 3307.28 of the Revised Code for the participant's period of interrupted military service shall be applied as specified by the plan document. A portion of the employer contributions may be allocated to the health care fund under the terms, conditions and schedules specified by the retirement board.

(C) No refund will be made of amounts paid by a participant to purchase credit as herein provided, except as a part of a total withdrawal of funds.

(D) A participant in the combined plan may make contributions for periods of service as outlined in paragraph (A) of this rule up to three months after the earlier of either:

(1) The annuity starting date for the participant's defined benefit portion of the combined plan; or

(2) The annuity starting date for the participant's defined contribution portion of the combined plan.

Last updated June 13, 2024 at 8:15 AM

History

• Effective: June 13, 2024
• Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-01

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 3307:2-4-03 Combined plan participant leaves of absence.

Section 3307.77 of the Revised Code permits a teacher in the combined plan to complete contributions for a period during which the teacher was prevented by illness, injury, a leave granted pursuant to section 3319.13 or 3319.131 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 shall apply:

(A) A participant in the combined plan may purchase credit for a period of leave or absence that would qualify for purchases by a defined benefit plan participant under the requirements set forth in section 3307.77 of the Revised Code and rule 3307:1-3-06 of the Administrative Code, provided leave of absence purchases made pursuant to section 3307.77 of the Revised Code shall be made by a lump-sum payment.

(B) Except as provided in paragraph (F) of this rule, a participant in the combined plan may complete retirement contributions and secure retirement credit for non-paid professional leaves in accordance with rule 3307:1-3-05 of the Administrative Code up to three months after the earlier of either:

(1) The annuity starting date for the participant's defined benefit portion of the combined plan; or

(2) The annuity starting date for the participant's defined contribution portion of the combined plan.

(C) Except as provided in paragraph (F) of this rule, a participant in the combined plan may make contributions for periods of leave of absence as outlined in paragraph (A) of this rule up to three months after the earlier of either:

(1) The annuity starting date for the participant's defined benefit portion of the combined plan; or

(2) The annuity starting date for the participant's defined contribution portion of the combined plan.

(D) Upon payment by the participant, service will be posted to the defined benefit portion of the participant's account. The retirement board shall specify the portion of the amount paid by the participant equal to the teacher contributions under section 3307.26 of the Revised Code and interest thereon to be posted to the participant's account in the defined contribution fund. The remaining amount paid by the participant for a leave of absence and all employer contributions paid by the employer for the participant's leave of absence shall be applied to provide retirement, disability, and survivor benefits under the terms, conditions and schedules specified by the plan document. A portion of the employer contributions may be allocated to the health care fund under the terms, conditions and schedules specified by the retirement board.

(E) No refund will be made of amounts paid by a participant to purchase credit as herein provided, except as a part of a total withdrawal of funds.

(F) If a participant service retires under the defined benefit portion of their account with an effective benefit date later than their service retirement under the defined contribution portion of the account, they may purchase a leave of absence as outlined in rule 3307:1-3-06 of the Administrative Code if the additional contributions will reduce or eliminate the limitation of compensation allowed in final average salary under section 3307.501 of the Revised Code. The purchase must be made within two months of notification by the retirement system to the participant that the purchase of the leave of absence will reduce or eliminate limitation of compensation allowed in final average salary.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: July 1, 2021
• Promulgated Under: 111.15

Ohio Adm.Code 3307:1-3-06

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 3307:1-3-05

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.

(c) Certifications of member's employer as follows:

(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.

(C) Cost calculation:

(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

Chapter 3307:2-5 Defined Contribution Plans - Distributions

Ohio Adm.Code 3307:2-5-01 Distributions.

Application for a distribution from the defined contribution program shall be in accordance with the terms and conditions specified by the plan document. In no case shall a distribution be made prior to the termination of covered employment. Calculation and payment of a distribution shall be as specified by Chapter 3307:2-5 of the Administrative Code, the plan document, and the rates, factors and conditions established by the retirement board. Application shall be on a form provided by the retirement system and shall be deemed made as of the date a complete application is received by the retirement system.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-5-02 Distributions from the defined contribution plan.

Upon termination of teaching service, a participant in the defined contribution plan may apply for a distribution, as follows:

(A) Application may be made for withdrawal of the amount determined under the plan document and this rule.

(1) The amount payable upon withdrawal shall be paid in a lump sum, except to the extent as otherwise provided by section 3307.87 of the Revised Code and the plan document.

(2) Membership and participation in the retirement system shall terminate upon withdrawal. Any credit for periods of service paid out upon withdrawal shall be cancelled.

(3) Participation in the defined contribution plan shall resume in the event the participant thereafter returns to teaching service, except to the extent that upon the return to teaching service the participant meets the requirements specified by rule 3307:2-3-01 of the Administrative Code to qualify as a new member.

(4) Payment from an account in the defined contribution plan shall be based upon the closing net asset value as of the day an application for distribution is processed by using the investment choices made by the participant to determine the amount accumulated by reason of contributions.

(B) Application may be made for a monthly benefit by a participant who has attained at least fifty years of age, as follows:

(1) Benefits shall be effective on the first of the month following the later of termination of covered teaching service or the first application for a distribution received by the retirement system.

(2) Subject to the requirements of section 3307.87 of the Revised Code and Chapter 3307:2-5 of the Administrative Code, the participant may elect a plan of payment pursuant to rule 3307:2-5-09 of the Administrative Code. The minimum monthly benefit amount shall be one hundred dollars.

(3) Membership in the retirement system shall terminate as of the effective benefit date. On and after that date, the participant shall be a superannuate as defined by section 3307.01 of the Revised Code.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: May 7, 2020
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-3-01

(A) For purposes of section 3307.25 of the Revised Code, Chapter 3307:2-3 of the Administrative Code and the plan document:

(1) "Teacher" shall be a contributing member of the retirement system employed in a position that meets the requirements set forth in division (B) of section 3307.01 of the Revised Code.

(2) "New member" shall mean:

(a) An individual who is employed for the first time as a teacher and who has never previously been a member of the retirement system; or

(b) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code before July 1, 2001; and

(ii) On June 30, 2001 the individual was not a member of the retirement system; and

(iii) The individual thereafter returned to teaching service; or

(c) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system, if:

(i) On June 30, 2001, the individual was a member of the retirement system with five or more years of service credit; and

(ii) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code after July 1, 2001; and

(iii) The individual thereafter returns to teaching service; or

(d) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The prior membership in the system was established on or after July 1, 2001; and

(ii) Upon such prior membership, the individual made an election pursuant to section 3307.25 of the Revised Code to participate in the defined contribution plan or the combined plan; and

(iii) The individual thereafter terminated covered employment and withdrew all contributions or had the account exhausted through fees under the terms of the plan in which he or she was participating prior to the first day of June immediately preceding the fourth anniversary of the June thirtieth of the entry year; and

(iv) The individual thereafter returns to teaching service.

(B) An election of the defined contribution or combined plans made pursuant to section 3307.25 of the Revised Code shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, or new employment as a teacher, except as otherwise specifically provided by the Revised Code, the Administrative Code or the plan document.

(C) An election or an active election of the defined benefit plan made pursuant to section 3307.25 of the Revised Code shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, withdrawal from membership or new employment as a teacher except as otherwise specifically provided by the Revised Code, the Administrative Code or the plan document.

(D) The retirement system shall establish an account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code for an individual who elects participation in a plan established under section 3307.81 of the Revised Code within fourteen days of receipt of a form with a valid plan election.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-5-09

(A) A defined contribution program participant granted a monthly benefit from the member account upon attainment of a minimum age of fifty and termination of covered employment may elect a monthly benefit in accordance with the terms and conditions of the plan document under any of the plans of payment available for defined benefit members under the terms of rule 3307:1-5-02 of the Administrative Code and section 3307.60 of the Revised Code, except for a lump-sum payment made under division (B) of section 3307.60 of the Revised Code. A plan of payment selected may be changed or reselected only as therein provided. If the participant elects to annuitize such payment, no change may be made in the plan of payment selected for such annuity after the fifteenth day of the month of the first regular benefit payment. Regular benefits begin once a final benefit, as defined by paragraph (G) of rule 3307:1-1-01 of the Administrative Code, is paid.

(B) A combined plan participant granted a monthly benefit under the defined benefit portion of the account may elect a monthly benefit in accordance with the terms and conditions of the plan document under any of the plans of payment available for defined benefit members under the terms of section 3307.60 of the Revised Code and rule 3307:1-5-02 of the Administrative Code. A plan of payment selected may be changed or reselected only as therein provided. No change may be made in the plan of payment selected after the fifteenth day of the month of the first regular benefit payment. Regular benefits begin once a final benefit, as defined by paragraph (G) of rule 3307:1-1-01 of the Administrative Code, is paid.

Last updated June 13, 2024 at 8:15 AM

History

• Effective: June 13, 2024
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-5-03 Distributions from the combined plan.

Upon termination of teaching service, a participant in the combined plan may apply for a distribution, as follows:

(A) Application may be made for withdrawal of the amounts determined under the plan document and this rule.

(1) An application to withdraw the defined benefit portion of an account will not be accepted unless application is also made to withdraw the defined contribution portion.

(2) Prior to attainment of age fifty:

(a) A participant who has terminated covered employment may leave contributions on deposit in the plan or may apply for withdrawal, but is not eligible for retirement or retirement distributions.

(b) An application to withdraw the defined contribution portion of an account will not be accepted unless application is also made to withdraw the defined benefit portion;

(c) The amounts payable upon withdrawal shall be paid in a lump sum except as otherwise provided by section 3307.87 of the Revised Code and the plan document.

(3) After attainment of age fifty:

(a) A participant in the combined plan who has established at least five years of qualifying service credit may apply to withdraw the defined contribution portion but leave the defined benefit portion on deposit to provide benefits at a future date.

(b) If a participant has established less than five years of qualifying service credit, an application to withdraw the defined contribution portion of an account will not be accepted unless an application is also made to withdraw the defined benefit portion.

(4) Regardless of age or when the withdrawal payment was made, in the event a participant who has received a payment under paragraph (A) of this rule subsequently returns to teaching service:

(a) The member shall participate in the combined plan if the withdrawal payment was made under paragraph (A)(1), (A)(2) or (A)(3)(b) of this rule, unless the participant meets the requirements specified by rule 3307:2-3-01 of the Administrative Code to qualify as a new member.

(b) The participant shall be a superannuate as defined by section 3307.01 of the Revised Code if the withdrawal payment was made under paragraph (A)(3)(a) of this rule.

(5) Payment from the defined contribution portion of an account in the combined plan shall be based upon the closing net asset value as of the day an application for distribution is processed by using the investment choices made by the participant to determine the amount accumulated by reason of contributions.

(B) A participant who has terminated covered employment and attained at least fifty years of age may apply for a monthly benefit of the defined contribution portion of the account, whether or not the participant is eligible and applying for a benefit under the defined benefit portion of the account. If the participant has established less than five years of qualifying service credit, an application to receive a monthly benefit of the defined contribution portion of an account will not be accepted unless application is also made to withdraw the defined benefit portion.

(1) Benefits shall commence the later of the first of the month following the termination of covered employment, the first of the month following receipt of an application for payment under paragraph (B) of this rule, or the retirement date, which shall be a first of a month, specified on the application received for payment under paragraph (B) of this rule. Active membership in the retirement system shall terminate as of that date and the participant shall on and after that date be a superannuate as defined by section 3307.01 of the Revised Code.

(2) Benefits are subject to the requirements of section 3307.87 of the Revised Code and Chapter 3307:2-5 of the Administrative Code. The participant shall elect on the application form to annuitize such balance.

(3) The minimum monthly benefit amount shall be one hundred dollars.

(C) Application for retirement under the defined benefit portion of an account may be made by a participant who has terminated covered employment and who meets the defined benefit age and service eligibility requirements specified by the plan document, whether or not the participant is applying for a distribution of the defined contribution portion of the account, provided:

(1) Benefits shall commence as of the effective date specified by the application, which shall in no case be earlier than the first of the month following the last day of covered employment.

(2) Membership shall terminate as of the effective date of retirement and the participant shall thereafter be a superannuate as defined by section 3307.01 of the Revised Code.

(3) The minimum monthly benefit amount shall be one hundred dollars.

(D) A participant who has attained age fifty, has at least five years of qualifying service credit and who has elected either to take a withdrawal of the defined contribution portion of the account pursuant to paragraph (A)(3)(a) of this rule or to receive a monthly retirement benefit from the defined contribution portion of the account pursuant to paragraph (B) of this rule may apply to withdraw the defined benefit portion of the account any time prior to receiving a monthly retirement benefit under the defined benefit portion of the account.

(E) Retirement shall be effective on the earlier of the dates benefits or payments commence under paragraph (A)(3)(a), (B)(1) or (C)(1) of this rule.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: May 7, 2020
• Promulgated Under: 111.15

Ohio Adm.Code 3307:1-5-02

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.

(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 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.

(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 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.

(C) Spousal consent to a member's plan of payment shall not be required if:

(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 3307:1-1-01

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

Chapter 3307:2-6 Defined Contribution Plans - Disability Benefits

Ohio Adm.Code 3307:2-6-01 Combined plan disability benefits.

(A) A participant in the combined plan may apply for disability benefits specified by the plan document.

(B) An application for a disability benefit under the combined plan and continuing eligibility for such a benefit shall be evaluated, reevaluated, and administered as specified by sections 3307.48, 3307.62, and 3307.631 of the Revised Code and Chapter 3307:1-7 of the Administrative Code.

(C) Neither service credit established under nor contributions to the public employees retirement system created by Chapter 145. of the Revised Code or the school employees retirement system created by Chapter 3309. of the Revised Code may be combined with credit or contributions to this retirement system for either determination of eligibility for disability benefits or calculation of any such benefits.

Last updated April 15, 2024 at 1:18 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-6-02 Combined plan survivor benefits.

(A) In the event of the death of a combined plan participant prior to payment to the participant of both the defined benefit and defined contribution portions of the account, payment shall be made as permitted by this rule.

(B) Dependent, service, or retirement based survivor benefits may be granted in accordance with sections 3307.501, 3307.66, and 3307.67 of the Revised Code and Chapter 3307:1-8 of the Administrative Code to the qualified survivors of the deceased participant in lieu of payment pursuant to Chapter 3307:2-5 of the Administrative Code, calculated, paid and terminated as though all requirements of section 3307.66 of the Revised Code were applicable, except those set forth in division (G) of section 3307.66 of the Revised Code.

(C) A surviving spouse or sole survivor of a participant at the time of the participant's death may receive a lump-sum payment of both the defined contribution and the defined benefit portions of the account and receive the same lump-sum payments the participant would have received as defined in the plan document. To receive a monthly annuity, the following applies:

(1) The surviving spouse or sole survivor may receive a monthly annuity from the defined contribution portion of the participant's combined plan account if the monthly annuity benefit is not less than one hundred dollars monthly when computed as a one hundred per cent joint survivor annuity without reversion; otherwise, a lump-sum payment of the defined contribution portion of the account shall be paid. The effective date for the monthly annuity payment from the defined contribution portion shall be the first of the month following the participant's date of death.

(2) The surviving spouse or sole survivor may receive a monthly annuity from the defined benefit portion of the participant's combined plan account if the participant at the time of death was eligible, or would have been eligible the first of the month following the date the deceased participant would have attained the minimum age necessary to qualify for benefits, for a monthly annuity benefit of not less than one hundred dollars monthly when computed as a one hundred per cent joint survivor annuity without reversion; otherwise, a withdrawal of the defined benefit portion of the account shall be paid. The effective date for the monthly annuity payment from the defined benefit portion shall be the first of the month following the later of the participant's date of death or the date the deceased participant would have attained the minimum age necessary to qualify for benefits under the defined benefit portion, based upon service credit accrued as of the date of death. Such a benefit shall be computed under the terms of the combined plan and payable in the form of the one hundred per cent joint survivor annuity without reversion the participant would have received had the participant been retired on that same first of the month and selected such a joint survivor annuity.

(3) For purposes of this rule, "without reversion" refers to an annuity where neither the plan of payment nor the primary beneficiary may be changed after retirement.

(D) Neither service credit established under nor contributions to the public employees retirement system created by Chapter 145. of the Revised Code or the school employees retirement system created by Chapter 3309. of the Revised Code may be combined with this retirement system, either for the determination of eligibility for survivor benefits or the calculation of benefits.

(E) In the event of the death of a combined plan participant prior to payment of the defined benefit portion of the account but after payment was made of the defined contribution portion as specified by paragraph (A)(3) or paragraph (B) of rule 3307:2-5-03 of the Administrative Code, a benefit may be granted to a surviving spouse or sole survivor. Such a benefit shall be effective as of the first of the month following the date the deceased participant would have attained the minimum age necessary to qualify for benefits under the defined benefit portion, based upon service credit accrued as of the date of death. Such a benefit shall be computed under the terms of the combined plan and payable in the form of the one hundred per cent joint survivor annuity without reversion the participant would have received had the participant been retired on that same first of the month and selected such a joint survivor annuity or, in lieu of a benefit computed as a one hundred per cent joint survivor annuity, the benefit is payable as a lump sum equal to the withdrawal value as defined in the plan document.

(F) In the event of the death of a combined plan participant prior to payment of the defined contribution portion of the account but after payment was made of the defined benefit portion as specified by paragraph (C) of rule 3307:2-5-03 of the Administrative Code, the surviving spouse or sole survivor may withdraw or immediately annuitize the defined contribution portion of the account.

Last updated April 15, 2024 at 1:18 PM

History

• Effective: June 7, 2019
• Promulgated Under: 111.15

Ohio Adm.Code 3307:2-5-03

Upon termination of teaching service, a participant in the combined plan may apply for a distribution, as follows:

(A) Application may be made for withdrawal of the amounts determined under the plan document and this rule.

(1) An application to withdraw the defined benefit portion of an account will not be accepted unless application is also made to withdraw the defined contribution portion.

(2) Prior to attainment of age fifty:

(a) A participant who has terminated covered employment may leave contributions on deposit in the plan or may apply for withdrawal, but is not eligible for retirement or retirement distributions.

(b) An application to withdraw the defined contribution portion of an account will not be accepted unless application is also made to withdraw the defined benefit portion;

(c) The amounts payable upon withdrawal shall be paid in a lump sum except as otherwise provided by section 3307.87 of the Revised Code and the plan document.

(3) After attainment of age fifty:

(a) A participant in the combined plan who has established at least five years of qualifying service credit may apply to withdraw the defined contribution portion but leave the defined benefit portion on deposit to provide benefits at a future date.

(b) If a participant has established less than five years of qualifying service credit, an application to withdraw the defined contribution portion of an account will not be accepted unless an application is also made to withdraw the defined benefit portion.

(4) Regardless of age or when the withdrawal payment was made, in the event a participant who has received a payment under paragraph (A) of this rule subsequently returns to teaching service:

(a) The member shall participate in the combined plan if the withdrawal payment was made under paragraph (A)(1), (A)(2) or (A)(3)(b) of this rule, unless the participant meets the requirements specified by rule 3307:2-3-01 of the Administrative Code to qualify as a new member.

(b) The participant shall be a superannuate as defined by section 3307.01 of the Revised Code if the withdrawal payment was made under paragraph (A)(3)(a) of this rule.

(5) Payment from the defined contribution portion of an account in the combined plan shall be based upon the closing net asset value as of the day an application for distribution is processed by using the investment choices made by the participant to determine the amount accumulated by reason of contributions.

(B) A participant who has terminated covered employment and attained at least fifty years of age may apply for a monthly benefit of the defined contribution portion of the account, whether or not the participant is eligible and applying for a benefit under the defined benefit portion of the account. If the participant has established less than five years of qualifying service credit, an application to receive a monthly benefit of the defined contribution portion of an account will not be accepted unless application is also made to withdraw the defined benefit portion.

(1) Benefits shall commence the later of the first of the month following the termination of covered employment, the first of the month following receipt of an application for payment under paragraph (B) of this rule, or the retirement date, which shall be a first of a month, specified on the application received for payment under paragraph (B) of this rule. Active membership in the retirement system shall terminate as of that date and the participant shall on and after that date be a superannuate as defined by section 3307.01 of the Revised Code.

(2) Benefits are subject to the requirements of section 3307.87 of the Revised Code and Chapter 3307:2-5 of the Administrative Code. The participant shall elect on the application form to annuitize such balance.

(3) The minimum monthly benefit amount shall be one hundred dollars.

(C) Application for retirement under the defined benefit portion of an account may be made by a participant who has terminated covered employment and who meets the defined benefit age and service eligibility requirements specified by the plan document, whether or not the participant is applying for a distribution of the defined contribution portion of the account, provided:

(1) Benefits shall commence as of the effective date specified by the application, which shall in no case be earlier than the first of the month following the last day of covered employment.

(2) Membership shall terminate as of the effective date of retirement and the participant shall thereafter be a superannuate as defined by section 3307.01 of the Revised Code.

(3) The minimum monthly benefit amount shall be one hundred dollars.

(D) A participant who has attained age fifty, has at least five years of qualifying service credit and who has elected either to take a withdrawal of the defined contribution portion of the account pursuant to paragraph (A)(3)(a) of this rule or to receive a monthly retirement benefit from the defined contribution portion of the account pursuant to paragraph (B) of this rule may apply to withdraw the defined benefit portion of the account any time prior to receiving a monthly retirement benefit under the defined benefit portion of the account.

(E) Retirement shall be effective on the earlier of the dates benefits or payments commence under paragraph (A)(3)(a), (B)(1) or (C)(1) of this rule.

Last updated April 15, 2024 at 1:17 PM

History

• Effective: May 7, 2020
• Promulgated Under: 111.15