Chapter 3307:1-3 Restoration and Purchased Credit

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

(A) As used in this rule through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, references to the cost for purchasing service credit shall be based on sections 3307.74 and 3307.751 of the Revised Code as the appropriate section existed immediately before Janury 7, 2013.

(B) Except to the extent otherwise specified by the Revised Code or the Administrative Code, in any calculation of cost for the restoration or purchase of service credit under sections 3307.50 to 3307.79 of the Revised Code in which interest is to be compounded, the rate used shall be eight per cent compounded annually, provided that the rate shall be four per cent for purchases of credit for military service that occurred prior to July 1, 1989 for a purchase under division (D)(1) of section 3307.751 of the Revised Code and regardless of when military service took place for a purchase under section 3307.752 of the Revised Code.

(C) The cost for purchase under division (B)(2) of section 3307.74 and division (D)(2) of section 3307.751 of the Revised Code of a year or partial year of service credit shall be an amount equal to fifty per cent of the liability resulting from such purchase, as determined by an actuary employed by the state teachers retirement board, for purchases of credit for:

(1) Service, during any year or partial year beginning on or after July 1, 1989; or

(2) Service by a member who first established state teachers retirement system membership on or after July 1, 1989, without regard to when any year or partial year of qualifying service commenced.

(D) The cost for purchase under division (D)(3) of section 3307.751 of the Revised Code of a year or partial year of service credit shall be an amount equal to one hundred per cent of the additional liability resulting from such purchase, as determined by an actuary employed by the state teachers retirement board.

Effective: 03/24/2013
R.C. 119.032 review dates: 05/14/2014
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.71, 3307.712, 3307.72, 3307.73, 3307.74, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763, 3307.77, 3307.771
Prior Effective Dates: 12/23/76, 11/28/77, 1/1/80, 7/1/80, 12/26/81, 11/4/82, 4/27/85, 10/1/86, 9/15/89 (Emer.), 11/30/89, 1/1/95, 10/29/98 (Emer.), 1/17/99, 7/1/00, 7/1/01 (Emer.), 9/17/01, 5/24/04, 3/30/07 (Emer.), 6/28/07, 5/14/09, 1/7/13 (Emer)

3307:1-3-02 Purchase of service credit.

(A) As used in this rule through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, references to the cost for purchasing service credit shall be based on sections 3307.73, 3307.74, 3307.751, 3307.76 and 3307.771 of the Revised Code as the appropriate section existed immediately before January 7, 2013.

(B) Members may purchase service credit under sections 3307.71, 3307.72, 3307.73, 3307.74, 3307.741, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763, 3307.77 and 3307.771 of the Revised Code in increments. The cost for purchasing partial service credit shall be calculated as a proportionate part of the total cost at time of purchase.

(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) 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 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 credit will be accepted for three months after the effective date of retirement and 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 or restoration of credit on forms provided by this system determining that the service qualifies for purchase or restoration;

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

(c) That payment in full is received by the retirement system no later than the last day of the third month after the effective date of service retirement, unless 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 for which payment in full has not been received.

(4) That 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 credit shall be cancelled;

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

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

(E) For purposes of sections 3307.74, 3307.741, 3307.751, 3307.761, 3307.763, and 3307.76 of the Revised Code, commencement of a year or partial year qualifying for the purchase of service credit shall be as of the first day of each such year, as defined by division (F) of section 3307.01 of the Revised Code.

(F) Except for purchases by payroll deduction, the participant may purchase all or part of eligible credit, 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.

(G) 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.

(H) Payments for purchased or restored service credit may be refunded and the credit granted cancelled, upon the request of the member:

(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.

(I) If disability benefits were paid pursuant to section 3307.63 or 3307.631 of the Revised Code, a member or qualified survivor as defined in division (B) of section 3307.66 of the Revised Code may not request a refund of any payments for the purchase of service credit.

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.71, 3307.72, 3307.73, 3307.74, 3307.751, 3307.752, 3307.76, 3307.761, 3307.763, 3307.77, 3307.771
Prior Effective Dates: 12/23/76, 4/26/80, 12/26/81, 5/8/95, 5/27/95, 5/8/98, 7/1/01 (Emer.), 9/17/01, 9/17/02, 8/1/05, 06/11/10, 6/14/12, 1/7/13 (Emer)

3307:1-3-03 Determination of purchasable service credit under section 3307.74 of the Revised Code.

The following rule shall be utilized to determine type of service, eligibility, and purchase of credit under sections 3307.70 and 3307.74 of the Revised Code:

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

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

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

(3) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service credit is received by the retirement system as completed no later than December 31, 2013, membersmust establish a minimum of one year of contributing service subsequent to service to be purchased under section 3307.74 of the Revised Code as that section existed immediately before January 7, 2013.

(4) When interest is charged in the calculation of the cost, accrued interest shall be calculated from the date of membership in the state teachers retirement system of Ohio following service to be purchased through the month of purchase. Interest shall be calculated at the rate established in rule 3307:1-3-01 of the Administrative Code.

(5) If the service credit to be purchased in a year is less than one complete year:

(a) The service credit earned with a school shall be determined by dividing the number of days of regular full-time service by one hundred eighty days, or nine months, or

(b) The credit for all other types of eligible service shall be determined by dividing the number of days of regular service by two hundred forty days, or twelve months.

(6) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service credit is received by the retirement system as completed no later than December 31, 2013, cost for purchases shall be as specified by division (B) of section 3307.74 of the Revised Code as that section existed immediately before January 7, 2013, provided that:

(a) If the member's first employment covered under this retirement system after the service to be purchased was not full-time, calculation of cost shall be based upon the greater of the base amount as defined in section 3317.13 of the Revised Code, or the earnings and service credit upon which contributions were made, adjusted to full-time equivalence.

(b) Calculation of costs that are based on liability shall be determined as specified under paragraph (C) of rule 3307:1-3-01 of the Administrative Code.

(7) If restored Ohio service under section 3307.71 of the Revised Code is to be utilized for the purpose of establishing a salary base for purchased credit, a minimum of one year or the total withdrawn amount of service, whichever is less, must be restored.

(8) Effective January 1, 2014, except as provided in paragraph (A)(6) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or a partial year of service credit under section 3307.74 of the Revised Code shall be an amount equal to one hundred per cent of the liability resulting from the purchase, as determined by an actuary employed by the state teachers retirement board.

(9) Credit will not be granted for service that would result in more than one year of total service credit as defined by section 3307.50 of the Revised Code for any year as defined by section 3307.01 of the Revised Code.

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

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

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

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

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

(a) The school, college or university must:

(i) Be recognized by an established accrediting association or governmental agency.

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

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

(b) The position:

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

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

(iii) Service as a graduate assistant outside Ohio qualifies for purchase only if teaching service was with a public university or college and if performed prior to July 1, 1978 or after that date if performed after membership in this retirement system was first established.

(C) Credit may not be purchased for any service that was already used in the calculation or payment of a retirement benefit or that is used in the calculation of a retirement currently being paid or payable in the future under any retirement program, except social security, provided:

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

(2) If participation was in a defined contribution plan:

(a) If contributions were made to such plan, during fewer than five separate fiscal years beginning July first and ending June thirtieth, otherwise qualifying service may be purchased upon certification by the plan administrator that there has been a total withdrawal.

(b) If contributions were made to such plan, during each of five or more separate fiscal years beginning July first and ending June thirtieth, otherwise qualifying service may be purchased upon certification by the plan administrator that there has been a total withdrawal and that the member was not entitled to or paid all employer contributions.

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

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.74
Prior Effective Dates: 12/23/76, 4/26/80, 12/26/81, 6/2/94, 5/27/95, 5/8/98, 7/1/01 (Emer.), 9/17/01, 9/17/02, 8/1/05, 06/11/10, 7/9/12, 1/7/13 (Emer)

3307:1-3-04 Military service credit.

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

(1) Effective July 1, 2011, a member shall be granted one-twelfth of a year of service credit for each month purchased. Completed military applications provided by the retirement system, including the requested military documentation listing the member's dates of military service, received by the retirement system on or before June 30, 2011, shall have the amount of service eligible for purchase determined using one-eighth of a year of service credit for each month purchased.

(2) Credit will not be granted for service that would result in more than one year of total service credit as defined by section 3307.50 of the Revised Code for any year as defined by section 3307.01 of the Revised Code.

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

(4) Separate costs shall be calculated for multiple non-consecutive periods of military service.

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

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

(1) Service eligible for purchase shall be determined by dividing the actual number of days of active military service in the Ohio national guard or reserves by three hundred sixty-five. The definition of reserves has the same meaning as found in division (A)(2) of section 3307.751 of the Revised Code. In all cases, the determination of the amount of service eligible for purchase resides solely with the state teachers retirement system and its decision shall be final.

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

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

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

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

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

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

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

(G) Through December 31, 2013 and extending through June 30, 2014, only if the member's application to purchase service credit is received by the retirement system as completed not later than December 31, 2013, purchases of military service credit under section 3307.751 of the Revised Code shall be based on section 3307.751 as that section existed immediately before January 7, 2013 and further:

(1) The contribution rate in effect at the time the first military service period began shall be utilized in calculating cost of service credit in division (D)(1) of section 3307.751 of the Revised Code.

(2) Accrued interest shall be calculated in division (D)(1) of section 3307.751 of the Revised Code from the termination date of military service prior to entering Ohio public service to the date of payment.

(3) Contributions in division (D)(1) of section 3307.751 of the Revised Code shall be made on the annual rate of compensation for full-time employment during the first year of Ohio public service subject to any statutory salary limitations then in effect. If the member's first Ohio contributing service after the military service to be purchased was not full-time, calculation of cost shall be based upon the greater of the base amount as defined in section 3317.13 of the Revised Code, or the earnings and service credit upon which contributions were made, adjusted to full-time equivalence.

(4) At least one full year of contributing service under this retirement system must have been established after the period of military service to be purchased.

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

(H) Effective January 1, 2014, except as provided in paragraph (G) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or partial year of service credit under section 3307.751 of the Revised Code shall be an amount equal to one hundred percent of the liability resulting from the purchase, as determined by an actuary employed by the state teachers retirement board. Service credit may not be purchased under section 3307.751 of the Revised Code for service in an amount that exceeds the sum of credit the member has earned under section 3307.53 of the Revised Code, restored under section 3307.71 of the Revised Code or purchased under section 3307.72 of the Revised Code.

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

(1) The cost shall be equal to the sum of the member and employer contributions that would have been made pursuant to sections 3307.26 and 3307.28 of the Revised Code if the member had not been out of active service as a teacher by reason of service in the uniformed services.

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

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

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763
Prior Effective Dates: 11/30/89, 12/23/76, 4/2/79, 12/26/81, 9/15/89 (Emer.), 11/30/89, 12/26/97, 7/1/01 (Emer.), 9/17/01, 9/17/02, 8/1/05, 3/30/07 (Emer.), 6/28/07, 6/11/10, 10/28/10, 1/7/13 (Emer)

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

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

(A) Eligibility requirements:

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

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

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

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

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

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

(B) Procedural requirements:

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

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

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

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

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

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

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

(1) Member costs:

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

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

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

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

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

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

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.77
Prior Effective Dates: 12/23/76, 12/26/81, 7/1/01 (Emer.), 9/17/01, 9/17/02, 8/1/05, 6/11/10, 1/7/13 (Emer)

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

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

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

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

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

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

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

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

(5) As authorized in division (C) of section 3307.77 of the Revised Code, the member may pay the proper employee contributions to the employer for transmittal to the state teachers retirement system, provided the payment is received by the state teachers retirement system by the thirtieth of June of the year in which the absence or leave terminated.

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

(7) "Date of payment," as used under divisions (D)(2) and (D)(3) of section 3307.77 of the Revised Code, shall be defined to mean the end of the month in which payment is made.

(B) Contributions may be submitted for purchases of credit for absences that result in limitation of compensation included in final average salary pursuant to section 3307.501 of the Revised Code, subject to approval by the executive director or the director's designee.

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

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.77
Prior Effective Dates: 12/23/1976, 9/26/77, 12/26/81, 4/27/85, 8/11/94, 5/25/99, 7/1/2001 (Emer.), 9/17/01, 8/1/05, 6/11/10, 1/7/13 (Emer)

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

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

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

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

(B) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service credit is received by the retirement system as completed not later than December 31, 2013, the cost for purchase of a year or partial year of service credit shall be based on section 3307.76 of the Revised Code as that section existed immediately before January 7, 2013 and shall be an amount equal to fifty per cent of the liability resulting from such purchase, as determined by an actuary employed by the state teachers retirement board.

(C) Effective January 1, 2014, except as provided for in paragraph (B) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or partial year of service credit under section 3307.76 of the Revised Code shall be an amount equal to one hundred per cent of the liability resulting from such purchase, as determined by an actuary employed by the state teachers retirement board.

(D) A member is ineligible to purchase credit under section 3307.76 of the Revised Code if credit for the service may be obtained from the public employees retirement system or the school employees retirement system or if the credit is for service that is used in the calculation of any retirement benefit currently being paid or payable in the future or is for service that was already used in the calculation or payment of a retirement benefit.

(E) Credit will not be granted for service that would result in more than one year of total service credit as defined by section 3307.50 of the Revised Code during any year as defined by section 3307.01 of the Revised Code.

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.76
Prior Effective Dates: 12/23/76, 12/26/81, 9/15/89 (Emer.), 11/30/89, 10/29/98 (Emer.), 1/17/99, 7/1/01 (Emer.), 9/17/01, 8/1/05, 6/11/10, 1/7/13 (Emer)

3307:1-3-08 Establishment of service credit for leaves of absence and resignations due to pregnancy.

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

(A) Eligibility requirements:

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

(2) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the member must have established at least one year of state teachers retirement system contributing service credit after the leave or resignation.

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

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

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

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

(B) Procedural requirements:

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

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

(3)

(a) If the employer is not able to certify the reason for the leave or resignation and the member's pregnancy resulted in birth, a photocopy of the child's birth certificate must be provided by the member.

(b) If the employer is not able to certify that the reasons for the leave or resignation and the member's pregnancy did not result in birth, a statement based on medical records must be provided by the member.

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

(5) If the member's first employment covered under this retirement system after the leave or resignation was not full-time, calculation of cost shall be based upon the greater of the base amount as defined in section 3317.13 of the Revised Code, or the earnings and service credit upon which contributions were made, adjusted to full-time equivalence.

(6) Certifications and applications for the purchase of service credit must be completed on forms approved or provided by the state teachers retirement board. Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the cost for purchase of a year or partial year of service credit , shall be based on section 3307.771 of the Revised Code as that section existed immediately before January 7, 2013. The member shall pay to the system for credit to the member's accumulated account an amount determined by multiplying the employee rate of contribution in effect at the time the absence commenced, by the member's annual compensation for full-time employment during the first year of service in Ohio following termination of the absence, and adding to that amount interest compounded annually, at the rate established pursuant to rule 3307:1-3-01 of the Administrative Code, from the date the absence terminated to the date of payment.

(7) Effective January 1, 2014, except as provided in paragraph (B)(6) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or partial year of service credit under section 3307.771 of the Revised Code shall be an amount equal to one hundred per cent of the liability resulting from such purchase, as determined by an actuary employed by the state teachers retirement board.

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.771
Prior Effective Dates: 12/23/76, 4/27/85, 4/18/86 (Emer.), 7/3/86, 4/15/87, 9/1/96, 5/25/99, 7/1/01 (Emer.), 9/17/01, 6/11/10, 1/7/13 (Emer)

3307:1-3-09 Purchase of credit for service as a school board member.

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

(B) Purchase of credit pursuant to section 3307.78 of the Revised Code shall be deemed to have occurred on the date payment of the amount specified by that section is received. Such amount shall be refunded in the event the member's retirement does not become effective within ninety days of the date of purchase and any credit posted shall be canceled.

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

R.C. 119.032 review dates: 03/25/2010 and 03/25/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.78
Prior Effective Dates: 9/23/91(Emer.), 12/23/91, 7/1/01(Emer.), 9/17/01

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

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

(B) A member may purchase all or part of the service credit qualifying for purchase under sections 3307.70 and 3307.73 of the Revised Code. Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the cost to purchase service credit shall be based on section 3307.73 of the Revised Code as the section existed immediately before January 7, 2013 and if a member chooses to make more than one payment for any purchase, the balance remaining as used in division (C) of section 3307.73 of the Revised Code shall mean the cost for the remaining service credit to be purchased. The cost for the remaining service credit to be purchased shall be based on the cost per year, of the original cost established at the time of the first payment, plus compound interest at the rate established by rule 3307:1-3-01 of the Administrative Code.

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

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

(2) If the credit to be purchased is for service that would have been covered under Chapter 145. or Chapter 3309. of the Revised Code, the system shall transmit the employer's certification to the applicable retirement system and shall request certification from that retirement system that the service was exempt and the amount of credit that would have been earned had the service not been exempt.

(3) Credit may not be purchased for any service:

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

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

(D) Once service qualifying for purchase has been certified and determined pursuant to paragraph (C) of this rule, the cost of purchase shall be calculated, subject to the following:

(1) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the cost to purchase service shall be based on section 3307.73 of the Revised Code as the section existed immediately before January 7, 2013. The cost of any purchase shall be calculated as of the date of a cost statement generated by the system and shall be based upon the twelve most recent months of earnings certified by the member's current or most recent employers under Chapter 145., Chapter 3307. or Chapter 3309. of the Revised Code. Where a full year of service credit has been earned in such year, total compensation shall be used in the calculation. If less than a full year of service credit was earned in such year, then compensation on a full-time equivalent basis shall be used in the calculation.

(2) Effective January 1, 2014, except as provided in paragraph (D)(1) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or partial year of service credit under section 3307.73 of the Revised Code shall be an amount equal to one hundred per cent of the liability resulting from the purchase.

(3) The cost factors applied to the calculation are hereby established by the state teachers retirement board as those determined by the actuary as equal to the additional liability resulting from the purchase of credit. The actuary shall review purchases and liability upon request of the executive director.

(4) The cost for purchases of credit in portions of less than a full year shall be prorated on the basis of the cost for a full year.

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.73
Prior Effective Dates: 6/22/92 (Emer.), 9/10/92, 7/1/01 (Emer.), 9/17/01, 08/01/05, 6/11/10, 1/7/13 (Emer)

3307:1-3-11 Payroll deductions for purchase and restoration of credit.

The following plan for restoration or purchase of service credit by payroll deduction is hereby established pursuant to sections 3307.70and 3307.701 of the Revised Code:

(A) As used herein:

(1) "Employer" shall be an employer as defined by division (A) of section 3307.01 of the Revised Code.

(2) "Member" shall be a member of the state teachers retirement system as defined by division (C) of section 3307.01 of the Revised Code.

(B) A member who has applied for restoration of service credit pursuant to section 3307.71 or division (C) of section 3307.761 of the Revised Code or purchase of service credit pursuant to section 3307.72, 3307.73, 3307.74, 3307.751, 3307.76, or section 3307.771 of the Revised Code may elect to make payment for such restoration or purchase by payroll deduction over a period of up to five years for each full or partial year of qualifying credit 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.

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

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

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

(2) Upon request, a form for the member's use in initiating restoration or purchase by payroll deduction, which shall include a statement of the monthly deductions necessary to spread payment over periods ranging from one to five years for each full or partial year of creditexcept as follows:

(a) From January 1, 2013, through December, 2013, the system will provide statements with payment periods ending on June 30, 2014, for purchases of credit pursuant to former section 3307.73, 3307.74, 3307.751, 3307.76 or 3307.771 of the Revised Code as the appropriate section existed immediately before January 7, 2013.

(b) From January 1, 2014, through June 30, 2014, the system will provide statements with payment periods ending on June 30, 2014 for purchases of credit pursuant to former section 3307.73, 3307.74, 3307.751, 3307.76 or 3307.771 of the Revised Code as the appropriate section existed immediately before January 7, 2013, provided the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013.

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

(3) 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 his or her employer.

(C) 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 state teachers 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 (E) of this rule.

(D) Deductions made by an employer shall be credited monthly with the state teachers 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 higher of the rates specified in rule 3307:1-3-01 of the Administrative Code.

(E) Monthly payments shall be a minimum of the amount specified to restore or purchase credit over the maximum period allowable under paragraph (B) of this rule, but in no case less than fifty dollars. Deducted payments in an amount less than the applicable minimum will be returned to the employer and that purchase or restoration deduction plan will be cancelled.

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

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

(H) 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 credit being purchased pursuant to this rule under a pre-tax payroll deduction plan shall be purchasable under provisions of rule 3307:1-3-02 of the Administrative Code unless payroll deductions under this rule are first terminated.

(I) Changes in the interest rate applicable under rule 3307:1-3-01 of the Administrative Code will result in the recalculation of a new payroll deduction schedule for the remaining balance of service credit as of the effective date of the change in interest rate. A member participating in payroll deduction will be sent a recalculation in the event of such a change and may then either reselect the amount to be deducted in order to maintain the original payment schedule or alter the period of time involved, up to a maximum of five years for each full or partial year of qualifying credit. However, the new monthly minimum amount deducted shall be the greater of the new recalculated minimum or the previous amount that was being deducted.

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

(K) The state teachers 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 both the expected and minimum deduction for each participant. The employer shall enter the amount actually deducted and return the listing and deducted amounts to the state teachers retirement system by the fifteenth of each month.

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

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

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

(M) 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 credit is fully purchased or employment is terminated.

(N) In lieu of payroll deduction, the state teachers retirement system will accept from the employer lump-sum payments for certified purchasable credit for a member. The employer must submit a document indicating if the payment is from after-tax or tax-deferred funds. 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; otherwise, the funds will be returned to the member and twenty per cent federal taxes will be withheld if the money was tax-deferred. Refunds under two hundred dollars will be sent to the member and no tax withholding will be deducted unless the member directs otherwise.

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

Effective: 03/24/2013
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.701
Prior Effective Dates: 7/1/90, 5/27/91, 7/31/97, 5/25/00, 7/1/01 (Emer.), 9/17/01, 8/1/05, 6/11/10, 1/7/13 (Emer)

3307:1-3-12 Service credit established under retirement incentive plan.

(A) Upon adoption of a retirement incentive plan in accordance with section 3307.54 of the Revised Code, the employer shall notify the state teachers retirement system on an official form approved by the state teachers retirement board.

(B) The cost to the employer for each year of credit purchased will be determined by factors recommended by the state teachers retirement system actuary which yield an amount equal to the additional liability of the amount purchased. Actuarial cost will be revised no more than once annually and shall apply only to new credit established after such revision is approved by the state teachers retirement board.

(C) Employers may make equal payments to the state teachers retirement system for the cost of the year or years of credit purchased over a number of years equal to the number of years purchased under the employer adopted plan. Purchase of partial years is not permitted. After the last day of the month of retirement, interest shall be calculated on the remaining payments at the rate established for other purchased credit as stipulated in division (A) of rule 3307:1-3-01 of the Administrative Code.

(D) A member employed as a teacher may initiate action to retire under the locally adopted retirement incentive plan in accordance with section 3307.54 of the Revised Code by completing the employee section of a form provided by the state teachers retirement board and filing such form with the employer. Subsequently, the form must be completed by the employer and filed with the state teachers retirement board within ninety days of the effective date of retirement, but in no event shall it be filed later than the last day of the month preceding the date of retirement.

(E) A member who elects to continue employment under section 3307.351 of the Revised Code is not eligible to participate in an early retirement incentive plan adopted by the employer with which employment continues.

R.C. 119.032 review dates: 03/25/2010 and 03/25/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.54
Prior Effective Dates: 8/19/83, 9/1/88, 9/23/91(Emer.), 12/23/91, 7/7/95,
5/25/00, 7/1/01(Emer.), 9/17/01