3307:2-6-02 Combined plan survivor benefits.

(A) In the event of the death of a combined plan participant prior to payment to the participant of any part of either the defined benefit or defined contribution portions of the account, payment shall be made as permitted by paragraph (B) or (C) of this rule:

(B) Dependent, service, or retirement based survivor benefits may be granted as provided by divisions (C)(1) and (C)(2) of section 3307.66 of the Revised Code to the qualified survivors of the deceased member in lieu of payment pursuant to Chapter 3307:2-5 of the Administrative Code, calculated, paid and terminated as though all requirements of section 3307.66 of the Revised Code were applicable, except those set forth in division (G) of section 3307.66 of the Revised Code and that only earned service credit with the state teachers retirement system and military service as permitted by the plan document shall be used to determine eligibility for benefits.

(1) For applications received pursuant to section 3307.66 of the Revised Code later than one year from the date of death of the member, benefits shall begin on the first day of the month immediately following receipt of the application by the retirement system. All other applications shall begin the first of the month after the date of death of the member.

(2) The determination of both the final average salary calculation pursuant to section 3307.501 of the Revised Code and the payment of cost of living adjustments pursuant to section 3307.67 of the Revised Code shall be based on the date determined in paragraph (B)(1) of this rule, unless the member was receiving disability benefits at the time of death, then the disability effective benefit date shall be used.

(3) If a surviving spouse or sole designated beneficiary is eligible for benefits pursuant to division (C)(1) of section 3307.66 of the Revised Code, the option rate and early retirement reduction factor used to calculate such benefit shall be based on the age of either the surviving spouse or sole designated beneficiary and the age the deceased participant would have been on the date determined in paragraph (B)(1) of this rule.

(4) Both the defined contribution and defined benefit portions of the participant's account in the combined plan will be applied to fund survivor benefits paid pursuant to section 3307.66 of the Revised Code.

(C) A surviving spouse or sole designated beneficiary of a participant eligible at the time of death to receive monthly service retirement benefits as outlined in rule 3307:2-5-03 of the Administrative Code may receive a monthly annuity benefit from both the defined contribution portion and the defined benefit portion of the participant's combined plan account; or, may receive a monthly annuity benefit from either the defined contribution portion or the defined benefit portion of the account and receive the same lump-sum payment the participant would have received from the other account as defined in the defined contribution program plan document; or, may receive a lump-sum payment of both the defined contribution and the defined benefit portion of the account and receive the same lump-sum payments the participant would have received as defined in the defined contribution program plan document. To receive a monthly annuity, the following applies:

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

(2) The surviving spouse or sole designated beneficiary may receive a monthly annuity from the defined benefit portion of the participant's combined plan account if the participant at the time of death was eligible, or would have been eligible the first of the month following the date the deceased participant would have attained the minimum age necessary to qualify for benefits, for a monthly annuity benefit of not less than one hundred dollars monthly when computed as a one hundred per cent joint survivor annuity without reversion; otherwise, a withdrawal of the defined benefit portion of the account shall be paid.

(3) The surviving spouse or sole designated beneficiary of the participant shall receive a one hundred per cent joint survivor annuity without reversion.

(4) The effective date for either monthly annuity payment shall be the first of the month following the participant's date of death or the first of the month following the date the deceased participant would have attained the minimum age necessary to qualify for benefits under the defined benefit portion, based upon service credit accrued as of the date of death. Such a benefit shall be computed under the terms of the combined plan and payable in the form of the one hundred per cent joint survivor annuity without reversion the participant would have received had the member been retired on that same first of the month and selected such a joint survivor annuity.

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

(E) In the event a deceased combined plan participant is survived by a qualified spouse as defined by division (B)(1) of section 3307.66 of the Revised Code and there is no designated beneficiary other than the spouse, such spouse may select one of the benefit calculations specified by division (C)(1) or (C)(2) of that section, and such selection shall govern the calculation of any benefit, thereby payable to other qualified survivors, notwithstanding the respective ages or biological parent of any surviving children.

(F) In the event a deceased combined plan participant is not survived by a qualified spouse as defined by section 3307.66 of the Revised Code and there is no designated beneficiary, but the participant is survived by children qualified under the terms of section 3307.66 of the Revised Code, selection of one of the benefit calculations set forth in division (C)(1) or (C)(2) of that section may be made by the youngest qualified child. Such selection shall govern the calculation of any benefit thereby payable to other qualified survivors.

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

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

Effective: 09/09/2013
R.C. 119.032 review dates: 06/18/2014
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.66 , 3307.81
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 9/17/02, 7/16/04, 6/18/09, 7/1/13 (Emer)