Ohio Administrative Code 3307 — State Teachers Retirement System

Chapter 3307-1 General Provisions

Ohio Adm.Code 3307-1-01 Rules.

(A) Except as otherwise provided in Chapter 3307. of the Revised Code, the retirement board shall adopt rules pursuant to section 111.15 of the Revised Code.

(B) Any person or organization may obtain notice of any proposed amendment, rescission, or adoption of a rule by making a written request to be placed on the mailing list to receive the retirement board's meeting agenda. Notice need not be provided to more than one representative of an organization.

(C) The retirement system shall take all actions requested or required by the legislative service commission to facilitate publication of rules in the Administrative Code. Notice and information about any adopted rule or rule change shall also be provided to employers and, where applicable, shall also be reported in communications sent to members, contributors, retirants, and benefit recipients.

Last updated March 7, 2023 at 10:13 AM

History

• Effective: June 4, 2017
• Promulgated Under: 111.15

Ohio Adm.Code 3307-1-02 Notice of meetings.

(A) This rule is adopted in compliance with, and under the authority of division (F) of section 121.22 of the Revised Code,

(B) Any person may ascertain the time and place of all regularly scheduled meetings of the retirement board and the time, place, and purpose of all special meetings of the retirement board by:

(1) Writing to one of the following addresses:

"State Teachers Retirement System

275 East Broad Street

Columbus, Ohio 43215-3771"

Or "contactus@strsoh.org"

(2) Calling the following telephone number during the normal business hours: (614) 227-4090 or, 888-227-7877, or

(3) Visiting the retirement system's website: www.strsoh.org.

In addition, any person may request, in writing, advance notice of all regular meetings of the retirement board. The retirement system shall maintain a list of all persons who have requested such notice and shall no later than five calendar days prior to each meeting, send to such persons by first class mail or e-mail an agenda of the meeting.

(C) Any representative of the news media may obtain notice of all special meetings by requesting in writing that such notice be provided. Such notice will only be given, however, to one representative of any particular publication or radio or television station. A request for such notification shall be addressed to: "Executive Director, State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio 43215-3771."

The request shall provide the name of the individual media representative to be contacted, the mailing address and a maximum of two telephone numbers for contacting the requesting party. The retirement system shall maintain a list of all representatives of the news media who have requested notice of special meetings pursuant to paragraph (C) of this rule.

(D) In the event of a special meeting not of an emergency nature, the retirement system shall notify all media representatives on the list of such meeting by doing at least one of the following:

(1) Sending written notice, which must be mailed no later than four calendar days prior to the day of the special meeting;

(2) Sending notice by e-mail which must be sent no later than twenty-four hours prior to the time of the meeting;

(3) Notifying such representatives by telephone no later than twenty-four hours prior to the special meeting; such telephone notice shall be complete if a message has been left for the representative, or if, after reasonable effort, the retirement system has been unable to provide such telephone notice;

(4) Informing such representative personally no later than twenty-four hours prior to the special meeting.

(E) In the event of a special meeting of any emergency nature, the retirement system shall immediately notify all media representatives on the list of such meeting by providing either the notice described in paragraph (D)(1) or (D)(2) of this rule, or that are described in paragraph (D)(3) or (D)(4) of this rule, or notifying the statehouse press room. In such event, however, the notice need not be given twenty-four hours prior to the meeting, but shall be given as soon as possible.

(F) In giving the notices required by paragraph (C) of this rule the retirement system may rely on assistance provided by any member of the retirement system and such notice is complete if given by such member in the manner provided in paragraph (C) of this rule.

Last updated May 5, 2022 at 8:33 AM

History

• Effective: May 5, 2022
• Promulgated Under: 111.15

Ohio Adm.Code 3307-1-03 Release of names, addresses and account information.

Information contained in records kept by the retirement system shall be released to third parties or the public only in accordance with section 3307.20 of the Revised Code and this rule.

(A) Except as otherwise provided by division (E) of section 3307.20 of the Revised Code, the following records may be released to a third party only upon the written authorization of the person to whom the record pertains:

Any part of an individual's personal history record, including but not limited to, any record identifying beneficiary information, account balance, benefit or allowance paid or payable to any person, any record identifying the service history or service credit of a member or benefit recipient, medical reports and recommendations including those related to health care coverage for a disabled adult child as defined in rule 3307:1-11-01 of the Administrative Code, or any record that includes address, e-mail address, telephone number, social security number, appointments, requests, counseling information or correspondence with the retirement system.

(B) The executive director of the retirement system may designate the staff members who shall serve as custodians of the records of the system for purposes of division (F) of section 3307.20 of the Revised Code, and who are authorized to authenticate copies of records being sent to any court or before any officer of this state.

Last updated March 7, 2023 at 10:14 AM

History

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

Ohio Adm.Code 3307:1-11-01

(A) Establishment of health care program

(1) Pursuant to section 3307.39 of the Revised Code, a health care program is hereby established for certain benefit recipients and their dependents who meet eligibility requirements specified in this chapter and in any medical or ancillary plan offered.

(2) The health care program shall consist of such medical plans and ancillary plans as the retirement board may offer from time-to-time.

(3) Benefit recipients shall provide any information requested by the retirement system to validate the eligibility of any enrollee in a medical plan or ancillary plan offered by the retirement system.

(4) Any person who obtains coverage, subsidy, or payment of claims in a medical plan and/or ancillary plan as the result of false or misleading information shall be immediately terminated from the health care program. Any amounts paid for which a person is not entitled shall be repaid pursuant to section 3307.47 of the Revised Code. The retirement system may collect amounts due in any other manner the system considers appropriate, as provided by law.

(B) Definitions for purposes of this chapter

(1) "Ancillary plan" means a plan offered to provide auxiliary coverage, such as dental or vision coverage.

(2) "Benefit recipient" means a primary recipient, a survivor annuitant, or a survivor benefit recipient as defined in paragraphs (B)(13), (B)(18) and (B)(19) of this rule.

(3) "Child" means a biological child, legally adopted child, or stepchild of a living or deceased primary recipient or member, or a child for whom a primary recipient or member has been legally appointed as guardian prior to the child attaining age twenty-six.

(4) "Dependent" means a child under age twenty-six, a disabled adult child as defined in paragraph (B)(6) of this rule, or a spouse as defined in paragraphs (B)(3), (B)(15) and (B)(16) of this rule.

(5) "Disability benefit recipient" means a member in the defined benefit plan who is receiving a monthly disability benefit or a participant in the combined plan who is receiving a monthly disability benefit.

(6) "Disabled adult child" means a person age twenty-six or older who has never been married; is a biological or legally adopted child prior to age eighteen, or a stepchild of a living or deceased primary recipient or member, or a child for whom a primary recipient has been legally appointed as guardian prior to the child attaining age eighteen; continuously meets the requirements for physical or mental incompetency as set forth in paragraphs (F) and (G) of rule 3307:1-8-01 of the Administrative Code, and either:

(a) Was adjudged physically or mentally incompetent by a court prior to age twenty-two, or

(b) Was continuously physically or mentally incompetent and continuously unable to earn a living where both conditions occurred prior to age twenty-two.

(7) "Enrollee" means any individual described in this chapter who participates in a medical plan or ancillary plan offered by the retirement system.

(8) "Enrollment cycle" means a period of time during which an enrollee is not permitted to terminate his or her enrollment and must continue paying monthly premiums.

(9) "Entity" means any public or private organization that acts as an employer and is not limited to an employer as defined in section 3307.01 of the Revised Code.

(10) "Medical plan" means a plan offered to provide medical or prescription drug coverage or any combination thereof.

(11) "Ohio retirement system" includes highway patrol retirement system, police and fire pension fund, public employees retirement system, and school employees retirement system.

(12) "Premium" means a monthly amount that is required to be paid by a benefit recipient to continue enrollment for health care coverage for the benefit recipient and/or any dependent.

(13) "Primary recipient" means a disability benefit recipient or service retiree as defined in paragraphs (B)(5) and (B)(14) of this rule.

(14) "Service retiree" means a member in the defined benefit plan who is granted a monthly service retirement benefit or a participant in the combined plan who is granted a monthly service retirement benefit under the defined benefit portion of the combined plan.

(15) "Spouse" means a person currently married to a primary recipient or a person who was married to a member or primary recipient at the time of the member's or primary recipient's death.

(16) "Subsidy" means the portion, if any, of the medical plan monthly cost waived by the retirement board.

(17) "Survivor annuitant" means a beneficiary of a service retiree, who was eligible for health care coverage as a dependent at the time of the service retiree's death and who is receiving a monthly service retirement benefit under an optional plan of payment as defined in section 3307.60 of the Revised Code.

(18) "Survivor benefit recipient" means a person receiving a monthly survivor benefit under section 3307.66 of the Revised Code or the combined plan, provided such person was eligible as a dependent of the member or disability recipient at the time of the member's or disability recipient's death.

(19) "Total service credit" has the same meaning as used in section 3307.50 of the Revised Code, and as used in this chapter such credit shall not include any credit purchased under former section 3307.741 of the Revised Code, but shall include credit purchased under sections 145.297, 145.298, 3307.54 (as it existed until July 31, 2014), and 3309.33 of the Revised Code.

Last updated May 7, 2026 at 7:33 AM

History

• Effective: May 7, 2026
• Promulgated Under: 111.15

Ohio Adm.Code 3307-1-04 Financial report.

Annually the retirement system shall prepare and publish a comprehensive financial report that complies with all applicable statutory requirements and that is in accordance with generally accepted accounting principles.

Last updated March 7, 2023 at 10:14 AM

History

• Effective: June 4, 2017
• Promulgated Under: 111.15

Ohio Adm.Code 3307-1-05 Policy on investment department performance based incentive programs.

(A) Pursuant to section 3307.04 of the Revised Code, payment of employee bonuses are subject to the guidelines established by the retirement board as reflected in the performance based incentive award program for investment exempt associates. The award program shall be reviewed and approved on an annual basis by the board, and may be interpreted, amended, rescinded, and/or terminated at any time in the board's discretion. The award program shall establish target incentive awards based on the retirement system's total fund performance and the investment associates' individual goals. Any and all material modifications to the award program, including, but not limited to the determination of award program payouts and actual payouts, require the board's prior approval.

(B) Participation in the award program is limited to certain retirement system investment professionals. Participation in the award program in any one year does not confer the right to participate in the program in the current or any other year and does not confer the right to continued employment.

Last updated March 7, 2023 at 10:14 AM

History

• Effective: June 4, 2017
• Promulgated Under: 111.15

Ohio Adm.Code 3307-1-06 Ohio-qualified agents and investment managers.

(A) For purposes of division (A)(4) of section 3307.152 and section 3307.154 of the Revised Code, an investment manager may be designated as an "Ohio-qualified investment manager" if the investment manager and/or any parents, affiliates, or subsidiaries of the investment manager meets the requirements of divisions (A)(1) and (A)(2) of section 3307.154 of the Revised Code.

(B) For purposes of section 3307.154 of the Revised Code, "principal place of business" includes an office in which the agent or investment manager regularly provides securities or investment advisory services and solicits, meets with, or otherwise communicates with clients.

Last updated March 7, 2023 at 10:14 AM

History

• Effective: June 4, 2017
• Promulgated Under: 111.15

Chapter 3307-2 Organization of Board

Ohio Adm.Code 3307-2-01 Nomination and election of members of the retirement board.

(A) The retirement system shall forward notices for the nomination of candidates for "contributing member" and/or "retired teacher member" of the retirement board to all school superintendents, university presidents and other employers for publication, and furnish notice to retired teacher members through appropriate means. Such notice shall be issued no later than the first of December preceding the election.

(B) Nomination of candidates shall be made as set forth in section 3307.07 of the Revised Code and shall be on petition forms prepared and distributed by the retirement system. Petition forms shall clearly state the term of office. Petitions filed on forms other than those indicated herein will not be accepted.

(C) Nominating petitions containing original signatures written in ink must be received by the retirement system on or before four-thirty p.m. on the last Friday in February.

(D) At the board's directive the executive director may contract with an independent firm to administer the elections.

(E) Except where the only nominated candidate takes office pursuant to section 3307.071 of the Revised Code, the retirement system shall list the names of all properly qualified candidates on a ballot, arranging for the orderly rotation of names on the ballot. On or before the fifth of April, ballots and return envelopes shall be sent to all eligible members and retirants of the retirement system at the eligible member's or retirant's last known complete address.

(F) Voting shall be permitted by paper, telephone and/or internet ballots.

(G) All ballots must be received in the retirement system or independent firm office not later than four-thirty p.m., on the first Monday in May.

(H) Election results shall be announced once certified by the entity administering the election.

(I) Pursuant to section 3307.071 of the Revised Code, when only one candidate has been nominated for the position, the secretary of state shall certify the candidate for office as if elected.

(J) If after the first Monday in May no qualified candidate has been nominated for a position on the retirement board, the retirement board shall elect a new member in accordance with section 3307.06 of the Revised Code and rule 3307-2-02 of the Administrative Code at the last regularly scheduled board meeting before the new member's term begins.

Last updated January 31, 2025 at 7:42 AM

History

• Effective: January 31, 2025
• Promulgated Under: 119.03

Ohio Adm.Code 3307-2-02

If a vacancy occurs after an election of the retirement board but prior to the start of the elected board member's term or during the term of office of any elected member of the retirement board, the remaining members of the retirement board shall elect a successor member, as specified in section 3307.06 of the Revised Code, in the following manner:

(A) Upon being notified that a vacancy occurs, each remaining member of the retirement board shall have forty-five days in which to nominate one eligible candidate for consideration of election to the vacancy by notifying the secretary to the board of such nomination.

(B) The secretary to the retirement board shall notify each nominee of his/her nomination and request that within ten days of receipt of the notice he/she submit to the retirement board biographical information related to his/her nomination on a questionnaire which shall be identical to the one used for the last regular election of a member to the retirement board.

(C) At the first meeting of the retirement board following the deadline for receipt of said questionnaires, the retirement board, through successive public votes, shall elect the successor member. Through successive public votes those nominees receiving the lowest number of votes shall be dropped from the list of nominees. The nominee receiving a majority of votes cast shall be elected the successor member and shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor member's election.

Last updated May 5, 2022 at 9:17 AM

History

• Effective: May 5, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 3307-2-03 Board member education and travel policy.

Section 3307.15 of the Revised Code mandates that the retirement board and other fiduciaries of the fund will discharge their duties with care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; and by diversifying the investments of the retirement system so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so.

Education of board members is both appropriate and essential to successfully carrying out these fiduciary duties. Board members have an obligation to select such methods of learning as will best enable them to acquire the information and skills needed. In the process of making that selection, board members also have the responsibility to ensure that the expenses incurred are both reasonable and necessary, and that attendance at meetings does not compromise the integrity of the retirement system or unreasonably further a personal financial interest of individuals.

When board members pursue educational opportunities or travel in any capacity as a board member of the retirement system, members shall adhere to the board policies titled "Board Member Education" and "Board Member Travel and Expenses" as amended from time to time.

Last updated March 7, 2023 at 10:14 AM

History

• Effective: July 24, 2008
• Promulgated Under: 111.15

Ohio Adm.Code 3307-2-04 Payment of allowances and benefits.

The retirement system is authorized to pay monthly retirement allowances, disability benefits and other statutorily mandated benefits during the interim period which may occur between the date such allowances and benefits are payable and the date the retirement board can act as provided in Chapter 3307. of the Revised Code, as such authority so granted is considered necessary to the proper operation of the retirement system.

Last updated March 7, 2023 at 10:15 AM

History

• Effective: June 4, 2017
• Promulgated Under: 111.15

Chapter 3307-3 Employer Duties

Ohio Adm.Code 3307-3-01 Employer duties.

Each employer shall timely contribute, deduct, make payments and report in compliance with the provisions of Chapter 3307. of the Revised Code and the Administrative Code and shall provide the retirement system with the information it requires to carry out its duties.

Last updated March 7, 2023 at 10:37 AM

History

• Effective: May 3, 2018
• Promulgated Under: 111.15

Ohio Adm.Code 3307-3-02 Employer reporting.

(A) Each employer shall annually on or before the first Friday of August submit a report for the preceding school year certifying service credit, contributions on earned compensation and such other information as the retirement system may specify for each teacher employed during the twelve-month period ending on the preceding thirtieth of June.

(1) Such annual report shall be in the form and format specified by the retirement system; and

(2) Such annual report shall include each teacher employed in a position covered by the retirement system during that twelve-month period.

(B) Each employer shall no later than five business days after any pay date report contributions on compensation paid or earned based on payroll records for each teacher employed during the payroll period in a position covered by the retirement system. Such payroll report:

(1) Shall be in the form and format specified by the retirement system; and

(2) Shall include contributions on compensation paid or earned during the payroll period and such other information as may be specified by the retirement system.

(C) Each employer shall notify the retirement system no later than the tenth day after an employee's first date on the payroll in a position covered by the retirement system of the employee's first date of employment. Notice shall be given in the manner and format specified by the retirement system and shall include the employee's name, address, social security number, birth date and gender and such other information as the retirement system may specify.

(D) Each employer shall notify the retirement system no later than the tenth day after an individual who is retired under an Ohio public retirement system or alternative retirement plan under Chapter 3305. of the Revised Code of the date that the individual first renders service as a reemployed retirant in a position covered by the retirement system. Notice shall be given in the manner and format specified by the retirement system and shall include the employee's name, address, social security number, birth date and gender and such other information as the retirement system may specify.

Last updated March 7, 2023 at 10:37 AM

History

• Effective: May 3, 2018
• Promulgated Under: 111.15

Ohio Adm.Code 3307-3-03 Contributions.

(A) Member contributions made pursuant to section 3307.26 of the Revised Code shall be due with the payroll report specified by paragraph (B) of rule 3307-3-02 of the Administrative Code, but shall in no case be paid by an employer later than the fifth business day after a pay date.

(B) Any employer contributions not made by deduction from amounts allocated under Chapter 3317. of the Revised Code as specified by section 3307.31 of the Revised Code shall be due with the payroll report specified by rule 3307-3-02 of the Administrative Code, but shall in no case be paid by an employer later than the fifth business day after a pay date.

Last updated May 4, 2023 at 8:22 AM

History

• Effective: May 4, 2023
• Promulgated Under: 111.15

Ohio Adm.Code 3307-3-04 Back posting.

(A) An employer may in writing request that the certification made by its prior annual reports be amended, provided:

(1) Its request explains the reasons for its omission or error.

(2) It is in the form and format specified by the retirement system.

(B) Member and employer contributions paid and reported after the close of the fiscal year in which compensation was earned will be accepted only upon payment of interest compounded annually at the actuarially assumed rate, beginning with the first month after the end of the fiscal year in which the compensation was earned and through the month payment is made to the retirement system. Interest for a full month shall be paid for any portion of a month.

(C) Except as provided in paragraph (D) of this rule, the retirement system will return unauthorized or improperly made member and employer contributions to the employer.

(D) If an employer has requested a membership determination from the retirement system and the retirement system determines membership is not required, any member and employer contributions already made on compensation earned during the current fiscal year will be returned to the party that remitted the payment of contributions.

Last updated March 7, 2023 at 10:37 AM

History

• Effective: May 3, 2018
• Promulgated Under: 111.15

Ohio Adm.Code 3307-3-05 Employer penalties and interest.

(A) Annual reports submitted later than the date specified by paragraph (A) of rule 3307-3-02 of the Administrative Code shall be subject to a penalty of five hundred dollars per day, up to a maximum of two thousand dollars. Such penalty may, at the sole discretion of the retirement system, be waived if before the original due date the retirement system approved an employer's request to submit its report by a date mutually agreed upon at the time of the request, but in no case later than five days after the report was due. If a report is received after the date mutually agreed upon under this paragraph, the penalty will be assessed beginning with the original date the report was due.

(B) Payroll reports submitted later than the dates specified by paragraph (B) of rule 3307-3-02 of the Administrative Code may be subject to a penalty of up to five hundred dollars per day, up to a maximum of two thousand dollars.

(C) Member and employer contribution payments shall be due with each payroll report and late payments may, at the sole discretion of the retirement system, be subject to interest as specified by paragraph (E) of this rule.

(D) Employers shall calculate, report and certify contributions, credit and compensation in accordance with the applicable provisions of the statutes and rules. An employer may, at the sole discretion of the retirement system, be required to repay the retirement system for any amounts paid by the retirement system as the result of employer errors in reporting or certifying information to the retirement system.

(E) Interest may, at the sole discretion of the retirement system, be charged to an employer for past due payments of member and employer contributions, or other employer obligations, as follows:

(1) Interest will be compounded beginning with the month payment is due through the month of payment; and

(2) Interest will be compounded at the actuarially assumed rate; and

(3) Interest will be compounded for a full month for any portion of a month.

(F) New hire or reemployed retiree notifications submitted later than the dates specified by paragraphs (C) and (D) of rule 3307-3-02 of the Administrative Code may be subject to a penalty of up to five dollars per day per individual, up to a maximum of one hundred dollars.

(G) Penalties and interest shall be due as incurred and may be netted from future amounts allocated under Chapter 3317. of the Revised Code as specified by section 3307.31 of the Revised Code.

Last updated May 4, 2023 at 8:22 AM

History

• Effective: May 4, 2023
• Promulgated Under: 111.15

Chapter 3307-4 Membership and Contribution

Ohio Adm.Code 3307-4-01 Membership and contribution.

(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

Chapter 3307-5 Alternative Retirement Plans

Ohio Adm.Code 3307-5-01 Alternative retirement plans.

(A) Each institution of higher education with an academic employee eligible to elect an alternative retirement plan under division (B) of section 3305.05 of the Revised Code shall give notice of the hiring to the retirement system.

(1) Notice shall be given when the institution enters into a contractual relationship with the employee, but in no case later than ten days after the employee's first day on the institution's payroll.

(2) Notice shall be given when an employee changes to a classification that qualifies the employee to elect an alternative retirement plan, but in no case later than ten days after the effective date of the employee's new classification.

(3) Notice shall be given when an employee participating in an alternative retirement plan who is employed in a position covered by the public employees retirement system or school employees retirement system becomes employed in a position covered by this retirement system and continues participation in the alternative retirement system, but in no case later than ten days after the effective date of the first date of employment in a position covered by this system.

(4) Notice shall be given in the manner and form prescribed by the retirement system, and shall set forth the employee's name, address, social security number, date of birth, gender and any other information required by the retirement system.

(B) Employer contributions required by division (D) of section 3305.06 of the Revised Code shall be remitted monthly no later than the fifteenth day of the month following the month during which the compensation is paid.

(C) Employers shall submit a monthly report for contributions required under division (D) of section 3305.06 of the Revised Code in a manner and form prescribed by the retirement system for all employees in positions covered by this retirement system who have elected an alternative retirement plan under Chapter 3305. of the Revised Code.

(D) The institution shall file a certified copy of any election made by an employee with the retirement system no later than ten days after it is filed with the institution by the electing employee. Elections shall be made on forms provided by the retirement system and completed by the institution and employee to provide all information requested by the retirement system, including the employee's name, address, social security number, alternative retirement plan selected, payroll and contribution data and any other information specified by the retirement system.

(E) Payment under section 3305.052 of the Revised Code on behalf of an employee will be made to the provider of the alternative retirement plan in which the employee had chosen to participate within thirty days of receipt by the retirement system of a certified copy of the election form, including complete certification, payroll and contribution data and selected provider information. The employer shall be responsible for the recovery of any overpayment made under section 3305.052 of the Revised Code as a result of employer payroll and contribution certification error.

(F) Unauthorized or improper employer and employee contributions received by the retirement system after the effective date of an election and not included in the payment under section 3305.052 of the Revised Code shall be returned to the employer, less any amount due pursuant to division (D) of section 3305.06 of the Revised Code.

Last updated March 7, 2023 at 10:38 AM

History

• Effective: May 3, 2018
• Promulgated Under: 111.15

Chapter 3307-6 Compensation for Services to Teacher Professional Organizations

Ohio Adm.Code 3307-6-01 Compensation for services to teacher professional organizations.

(A) As used in this rule:

(1) "Base compensation" shall mean the base salary specified by a contract under section 3319.08 of the Revised Code for employment as a teacher.

(2) "Base contract daily rate" shall mean the base salary specified by a contract under section 3319.08 of the Revised Code divided by the number of days or partial days of service required by that contract.

(3) "Employer" shall be as defined by section 3307.01 of the Revised Code.

(4) "Teacher professional organization" shall mean an organization of teaching professionals that qualified as an employee organization under the terms of section 4117.01 of the Revised Code.

(B) Service to a teacher professional organization by a member performing such service in addition to teaching duty shall constitute teaching service for the purposes of Chapter 3307. of the Revised Code if employer and employee contributions are made for each year of such service as specified by this paragraph. Compensation upon which contributions are based for each year shall include the following amounts paid for services actually rendered, whether paid or reimbursed in whole or in part by the employer or the teacher professional organization:

(1) Base compensation.

(2) Amounts paid pursuant to a supplemental written contract for additional duties unrelated to service to the teacher professional organization.

(3) If provided by a collectively bargained agreement between the employer and the teacher professional organization, amounts paid as compensation for service to the teacher professional organization, up to a maximum amount calculated by:

(a) Multiplying the base contract daily rate by;

(b) A number of days determined by subtracting from two hundred fifty the number of days of service full-time teachers are required to work under an employer's standard teaching contracts for each year.

(C) Absence for full-time service to a teacher professional organization is hereby approved as a reason qualifying under section 3307.77 of the Revised Code for purchase of credit or completion of contributions, provided:

(1) The payments described in this paragraph shall constitute compensation for purposes of this rule, whether paid or reimbursed in whole or in part by the employer or the teacher professional organization.

(2) Compensation upon which contributions are based shall be the base compensation under the contract in place under section 3319.08 of the Revised Code between the member and the employer on the thirtieth day of June before service to the teacher professional organization began, plus compensation under any supplemental contract in effect on that date, adjusted as follows:

(a) After the first year of absence due to service to the organization, compensation under such contracts shall be increased in accordance with the employer's salary schedules, if the schedules continue to specify a salary for the position or duties; and

(b) Compensation shall also include amounts actually paid by an employer, a teacher professional organization or either of them as compensation for service to the organization, if provided by specific provision of the collectively bargained agreement between the employer and the teacher professional organization, up to a maximum amount calculated by:

(i) Multiplying the base contract daily rate as adjusted under paragraph (C)(2)(a) of this rule by;

(ii) A number of days determined by subtracting from two hundred fifty the number of days of service full-time teachers are required to work under an employer's standard teaching contract for each year.

(D) A member is ineligible to contribute, complete contributions or purchase credit under this rule for any service to a teacher professional organization that is used in the calculation of any retirement benefit currently being paid or payable in the future under any other retirement program, except social security.

(E) To the extent that contributions on compensation included by this rule are not otherwise included with contributions transmitted or paid by an employer, the member may request that contributions be permitted on a form provided by the retirement system and signed by the member, the teacher professional organization and the employer, which shall include such information as the retirement system finds necessary. If an application is approved, contributions shall be transmitted by the employer in accordance with instructions provided by the retirement system.

Last updated March 7, 2023 at 10:39 AM

History

• Effective: July 24, 2008
• Promulgated Under: 111.15

Chapter 3307-7 Guardianship

Ohio Adm.Code 3307-7-01 Guardianship.

(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 3307:1-8-01

(A) As used in section 3307.66 of the Revised Code and this rule:

(1) "Continuously incompetent" means a person was determined to be physically or mentally incompetent and has remained physically or mentally incompetent without any break since the determination was made.

(2) "Physical or mental incompetency" shall be determined in accordance with division (A) of section 3307.66 of the Revised Code and this rule.

(3) "Qualified child" or "qualified children" has the meaning as set forth in division (B)(2) of section 3307.66 of the Revised Code.

(4) "Qualified survivor" has the meaning as set forth in division (B)(4) of section 3307.66 of the Revised Code.

(5) "Medical review board" has the meaning as set forth in paragraph (I) of rule 3307:1-7-01 of the Administrative Code.

(B) If a member dies before service retirement and is survived by one or more qualified children who are under the age of twenty-two or who became physically or mentally incompetent prior to the attainment of age twenty-two and has remained continuously incompetent, benefits shall be payable to all survivors pursuant to division (C)(2) of section 3307.66 of the Revised Code. Any election applicable as to the calculation of benefits under that division shall be made by the beneficiary designated by the member. If no designation of beneficiaries was in effect at the time of death, any such election shall be made by the surviving spouse. If there is no surviving spouse, any such election shall be made by the youngest child.

(C) If a qualified child becomes physically or mentally incompetent while receiving survivor benefits pursuant to section 3307.66 of the Revised Code, such benefits shall continue as long as the child is continuously incompetent, without regard to the age the child attains.

(D) If there are no other survivors who qualify under the terms of section 3307.66 of the Revised Code, a qualified survivor who becomes eligible for benefits under that section, at the age of eighteen or older, may forfeit rights to benefits under that section and the opportunity to participate in the health care program, if eligible, and take instead a refund of the account balance as provided by section 3307.562 of the Revised Code.

(E) If physical or mental incompetency of a spouse or parent of a deceased member has not been determined by a court at the time of the application for benefits under section 3307.66 of the Revised Code, physical or mental incompetency shall be determined for the purposes of division (A) of section 3307.66 of the Revised Code and this rule as follows:

The determination of "physical or mental incompetency" shall be made by the chair of the medical review board by confirming that the spouse or parent has been continuously, since the member's date of death, incapable of earning a living because of a physically or mentally disabling condition. As used in this paragraph, "incapable of earning a living" means that the spouse or parent is incapable of earning annually at least the federal minimum wage as of January first of the current year multiplied by two thousand eighty hours, increased by fifty per cent, and rounded to the nearest thousand dollars. Each spouse or parent shall provide the retirement system with information and documentation requested by the retirement system to verify earnings. Such requested information and documentation may include copies of federal income tax returns and the most recent annual social security earnings statement. Once a spouse or parent is no longer "incapable of earning a living," the spouse or parent cannot meet the definition of qualified spouse or qualified parent for physical or mental incompetency in the future.

(F) If physical or mental incompetency of a child of a deceased member, including a child born after the date of death of a member has not been determined by a court at the time of the application for benefits under section 3307.66 of the Revised Code, a child shall be considered physically or mentally incompetent for purposes of division (A) of section 3307.66 of the Revised Code and this rule, provided that the child meets the requirements set forth in either paragraph (F)(1) or (F)(2) of this rule:

(1) Is unmarried, has been adjudged physically or mentally incompetent by the retirement system prior to January 8, 2007, has been continuously physically or mentally incompetent since the date such determination was made, and meets one of the conditions outlined in paragraph (F)(2)(a) or (F)(2)(b) of this rule. Upon the first date that the child no longer meets all of the eligibility requirements set forth in this paragraph, the child shall no longer qualify as a dependent child on the basis of physical or mental incompetency.

(2) Was never married and is unable to earn a living because of a mental or physical condition that was disabling prior to the date the child reached the maximum age of twenty-two and further provided the child is continuously disabled and unable to earn a living from the initial date that the child was determined to be physically or mentally incompetent. The chair of the medical review board shall confirm that the child has a mental or physical condition that incapacitated the child before the maximum age specified in this paragraph. In addition, the child shall meet one of the following conditions:

(a) A child must be incapable of earning a living. As used in paragraph (F)(2) of this rule, "incapable of earning a living" means that a child was incapable of earning at least sixteen thousand dollars a year for any year before January 1, 2008 and that the child was incapable of earning the federal minimum wage as of January first for each of the prior years and current year multiplied by two thousand eighty hours, increased by fifty per cent and rounded to the nearest thousand dollars for each year thereafter. The child shall provide the retirement system with information and documentation requested by the retirement system to verify earnings. Such requested information and documentation may include copies of federal income tax returns and of the most recent annual social security earnings statement.

(b) A child attends an adult workshop or school for the developmentally disabled operated by a county or state department of developmental disabilities. If attendance has not been continuous since the age determined in paragraph (F)(2) of this rule, additional earnings verification may be required in accordance with paragraph (F)(2)(a) of this rule.

(G) Following is the procedure for the determination of "physical or mental incompetency":

(1) The chair of the medical review board shall determine whether a spouse, parent, or child of a member is physically or mentally incompetent for purposes of section 3307.66 of the Revised Code. Determinations may include examination by an independent medical examiner appointed by the retirement board.

(2) The chair of the medical review board shall confirm on a schedule determined by the chair of the medical review board that a spouse, parent, or child of a member continues to be physically or mentally incompetent for purposes of section 3307.66 of the Revised Code. Failure to respond by the deadlines specified by the retirement system in requests for additional information or documents, requests to schedule medical examinations, or any other requests made by the retirement system in connection with the determination of physical or mental competency shall result in termination of eligibility for benefits provided for in section 3307.66 of the Revised Code.

(3) Determinations may be appealed to another independent physician, assigned by the medical review board chair. If the second independent physician concurs, the decision shall be deemed the final decision of the retirement board. If the second independent physician does not concur, a third independent physician will be appointed and that decision shall be deemed the final decision of the retirement board.

An applicant who has been found not incompetent for purposes of section 3307.66 of the Revised Code after an independent examination, shall not be eligible to reapply for incapacitation status.

(H) Following are procedures for administering the ongoing eligibility for survivor benefits paid pursuant to section 3307.66 of the Revised Code to qualified spouses, parents, and children determined to be physically or mentally incompetent:

(1) The retirement system may request information from time to time to confirm the individual continues to qualify as a physically or mentally incompetent qualified survivor.

(2) For a qualified spouse, parent, or child to act on his or her own behalf in the receipt of monthly benefits, a physician must provide a statement the individual is capable of handling his or her financial affairs.

(3) The retirement system may request a qualified spouse, parent, or child who was determined to be incompetent by a court pursuant to paragraphs (E) and (F) of this rule to have a court affirm that determination from time to time.

(I) Effective January 1, 2007, notwithstanding any provision in Chapter 3307. of the Revised Code to the contrary, the survivor of a member on a leave of absence to perform military service with reemployment rights described in section 414(u) of the Internal Revenue Code, where the member cannot return to employment on account of his or her death, shall be entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would be provided under Chapter 3307. of the Revised Code had the member resumed employment and then terminated employment on account of death.

(J) Under division (C)(2)(a)(iii) of section 3307.66 of the Revised Code, a member shall be considered to be contributing under this chapter or Chapter 145. or 3309. of the Revised Code at the time of death if the member had earned service credit and made contributions under this chapter or Chapter 145. or 3309. of the Revised Code in the twelve-month period prior to the member's death.

(K) The following applies only in the case of a surviving spouse who must wait until age sixty-two to qualify for monthly survivor benefits under section 3307.66 of the Revised Code:

(1) The benefits beginning date for purposes of determining the final average salary under division (C) of section 3307.501 of the Revised Code and for purposes of determining the first increase payable under division (B) of section 3307.67 of the Revised Code shall be either:

(a) The first of the month following the date of the member's death, provided the completed and notarized affidavit selecting survivor benefits is received by the retirement system not later than one year after the date of the member's death; or

(b) The first of the month following the retirement system's receipt of the completed and notarized affidavit selecting survivor benefits if the application is received by the retirement system later than one year after the date of the member's death.

(2) The months during the period the survivor spouse must wait to age sixty-two shall be included as months the spouse was receiving a benefit for purposes of division (B) of section 3307.67 of the Revised Code.

Last updated May 7, 2026 at 7:35 AM

History

• Effective: May 7, 2026
• Promulgated Under: 111.15

Chapter 3307-8 Payment of Benefits

Ohio Adm.Code 3307-8-01 Payments of benefits.

(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.

(C) Notwithstanding paragraph (B) of this rule;

(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 3307:1-3-02

(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 3307:1-3-13

(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.

(c) All service credit eligible for restoration under section 3307.71 of the Revised Code.

(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.

(C) A purchase of service credit shall be applied sequentially to the member's existing service credit as follows:

(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 3307:2-4-02

(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 3307:2-4-03

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

Chapter 3307-9 Division of Property Orders

Ohio Adm.Code 3307-9-01 Division of property orders.

(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.

(C) The retirement system shall charge a fee to defray the cost of administering an order as follows:

(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

Chapter 3307-10 Faculty Practice Plan

Ohio Adm.Code 3307-10-01 Faculty practice plan.

(A) As used in this rule:

(1) Employer shall mean a state university as defined in section 3345.011 of the Revised Code.

(2) Academic services shall mean services provided as a faculty member of the employer including instructional services, other class-room related services or research.

(3) Faculty practice plan shall mean an affiliated entity of an employer recognized by the employer as its college of medicine central practice group.

(4) Implementation date shall mean any date after the initial effective date of this rule on which a physician who was employed by both an employer and its faculty practice plan: (a) becomes employed solely by an employer and (b) is no longer employed by both an employer and its faculty practice plan.

(5) Clinical services shall mean services involving medical treatment, practice, observation or diagnosis.

(6) Physician shall mean a person employed by an employer who provides academic services or clinical services and whose earnings include payment for academic services or clinical services.

(7) Base compensation shall mean that amount of annualized compensation on which the physician contributed to STRS Ohio for the fiscal year immediately preceding the implementation date, or the most recent fiscal year prior to the fiscal year immediately preceding the implementation date in which the physician had contributing service with STRS Ohio, and such increases as are permitted under paragraph (B)(3) of this rule.

(8) Academic promotion shall mean promotion in any faculty track from assistant professor to associate professor or promotion in any faculty track from associate professor to full professor.

(9) Administrative promotion shall mean the addition of any administrative responsibilities for the provision of academic services for which the physician is paid, except an academic promotion.

(B) Clinical services performed by a physician in addition to academic service shall constitute teaching service for the purpose of Chapter 3307. of the Revised Code, and compensation upon which contributions are based for purposes of Chapter 3307. of the Revised Code shall include the following amounts paid for service actually rendered:

(1) For any physician who has no service credit with the retirement system prior to the physician's implementation date, the physician's entire income paid by the employer for academic and clinical services shall be included as compensation under section 3307.01 of the Revised Code.

(2) For any physician who does not have an implementation date, the physician's entire income paid by the employer for academic and clinical services shall be included as compensation under section 3307.01 of the Revised Code.

(3) For any physician who has service credit with the retirement system prior to the physician's implementation date, the following shall be included as compensation under section 3307.01 of the Revised Code on and after the physician's implementation date:

(a) The physician's base compensation; plus,

(b) The physician's merit increase, expressed as a percentage, paid to the physician in accordance with the uniform criteria established by the physician's employer for all similarly employed employees multiplied by the physician's then current base compensation; plus,

(c) The physician's academic or administrative promotion, expressed as a percentage, paid to the physician in accordance with usual and customary criteria established by the physician's employer multiplied by the physician's then current base compensation.

(d) All other compensation authorized by the employer which relates to the physician's academic services and is paid in accordance with the employer's usual and customary compensation practices.

Last updated May 4, 2023 at 9:29 AM

History

• Effective: May 4, 2023
• Promulgated Under: 111.15

Chapter 3307-11 Cybersecurity Incident

Ohio Adm.Code 3307-11-01 Cybersecurity incident notification responsibilities.

(A) For the purposes of this rule:

(1) "Cybersecurity incident" means a cybersecurity event that has been determined to have an impact on the employer prompting the need for response and recovery. This may include ransomware that may place a retirement system member's personal data at risk or an employer business email compromise that may place a retirement system member's personal data at risk.

(2) "Personal data" means full legal name, date of birth, home address, email address, social security number, driver's license number, state identification card number, retirement system account username, retirement system account password, record of contributions or financial account numbers.

(B) Within seventy-two hours of discovery of a cybersecurity incident, an employer shall provide notification of the cybersecurity incident to the retirement system by telephone or email. Notification shall be sent to employer reporting personnel at 888-535-4050 or report@strsoh.org. The employer shall also provide the following information within seventy-two hours of discovery of a cybersecurity incident:

(1) The date and time of the discovery of the cybersecurity incident.

(2) The name of the employer cybersecurity incident representative and contact information.

(C) The employer shall provide the following information to employer reporting regarding a cybersecurity incident within a reasonable period of time:

(1) Date and time of the cybersecurity incident.

(2) Nature of the cybersecurity incident, including any potential impact on retirement system member's personal data or email communications from employer.

(3) Description of personal data involved in the cybersecurity incident.

(4) Employer action taken to mitigate the cybersecurity incident and secure compromised systems.

Last updated May 14, 2025 at 7:33 AM

History

• Effective: May 10, 2025
• Promulgated Under: 111.15