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 regardless of whether the restoration or purchase is paid in a single payment or through a payroll deduction plan, 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 .

(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 before January 1, 2014, by an actuary employed by the state teachers retirement board.

Effective: 02/10/2014
R.C. 119.032 review dates: 11/26/2013 and 06/01/2016
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.), 3/24/13, 1/1/14 (Emer.)