Chapter 3307:1-10 Cost of Living

3307:1-10-01 Cost-of-living.

In determining benefit increases as authorized in section 3307.67 of the Revised Code, the following shall apply:

(A) For the purpose of that section and this rule:

(1) "Base benefit" shall mean the amount payable on the effective date of a benefit or the effective date of any subsequent reselection of plan of payment and does not include any benefit adjustments granted by statute after retirement.

(2) "COLA base benefit" shall mean the base benefit plus any applicable ad hoc increases granted by statutory amendment or enactment after the effective date of a benefit.

(B) The amount of the increase for each person who receives an increase on the benefit anniversary date of the cost of living adjustment shall be three per cent of the COLA base benefit.

Effective January 1, 2008, the state teachers retirement board shall annually increase each allowance or benefit payable under sections 3307.50 to 3307.79 of the Revised Code by three per cent of the base benefit, provided, however, that effective January 1, 2008, the total annual allowance or benefit payable shall not exceed the limit established by section 415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 415, as amended, and such limit shall be adjusted automatically effective January first of each calendar year without amendment to the Revised Code for increases in the cost of living, in accordance with regulations issued by the secretary of the treasury pursuant to the provision of Section 415(d) of the Internal Revenue Code in such manner as the secretary shall prescribe.

(C) An individual is eligible to receive an initial increase, provided such person has been receiving an allowance or benefit for twelve months or more and has not received an initial increase under that section.

(D) A qualified spouse pursuant to section 3307.66 of the Revised Code shall be eligible for the initial increase twelve months following the first of the month following the date of death of the member for whom the spouse is a qualified survivor and the date of the first increase in this paragraph becomes the anniversary date for future increases. A qualified spouse, who must wait until age sixty-two to qualify for monthly benefits as payable in section 3307.66 of the Revised Code or who received monthly benefits pursuant to that section but is now waiting to attain age sixty-two to resume monthly benefits, shall be eligible to receive, when monthly benefits become payable, any initial increase and any subsequent increases that would have occurred during the period of time the spouse was waiting for monthly benefits to become payable.

A qualified spouse pursuant to section 3307.66 of the Revised Code, who is the surviving spouse of a deceased member who at the time of death was receiving disability benefits pursuant to section 3307.63 or 3307.631 of the Revised Code, shall have the same annual increase anniversary date as the disability benefit recipient. The qualified spouse shall be eligible to receive increases for the time period the deceased member received disability benefits and the base benefit on which the increases shall be calculated is the qualified spouse's benefit amount payable pursuant to section 3307.66 of the Revised Code.

(E) Payment of a cost-of-living adjustment, as apportioned between the alternate payee and the benefit recipient pursuant to division (B) of section 3307.67 of the Revised Code, shall occur with the next cost-of-living adjustment that becomes payable to the benefit recipient on or after October 27, 2006. The benefit recipient's subsequent cost-of-living adjustments shall also be apportioned between the benefit recipient and alternate payee while the order is in effect.