(A) For beneficiary designations completed in a manner satisfactory to the state teachers retirement system in its sole discretion , where two or more beneficiaries were designated pursuant to division (B) of section of 3307.562 of the Revised Code, the state teachers retirement system shall pay the specified percentage of a lump-sum payment to each named beneficiary if these conditions are met:
(1) Two or more beneficiaries were named in a valid designation
(2) Percentages were provided for all named beneficiaries.
(3) The sum of the percentages is one hundred per cent.
If any one of these conditions is not met, the lump-sum payment will be divided equally among the beneficiaries. Should a designated beneficiary predecease the member, those funds shall be prorated based on the remaining percentages designated and paid to the other designated beneficiaries.
(B) When a written designation on a form provided by the state teachers retirement system is received by the state teachers retirement system, the designation shall not be deemed filed with the state teachers retirement board in accordance with division (B) of section 3307.562 of the Revised Code unless the form is completed in a manner satisfactory to the retirement system in its sole discretion.
(C) If any accumulated contributions were not distributed through monthly survivor benefits as payable pursuant to section 3307.66 of the Revised Code, the remaining contributions shall be paid to such beneficiaries as the member has nominated pursuant to division (B) of section 3307.562 of the Revised Code. If all designated beneficiaries die before payment of such contributions, payment shall be made in the following order of precedence, with all attendant rights and privileges to the member's:
(1) Surviving spouse
(2) Children, share and share alike
(3) Parents, share and share alike
Payment of such contributions shall be a full discharge and release of the retirement system from any future claim.
Five Year Review (FYR) Dates: 03/23/2016 and 06/10/2021
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.562
Prior Effective Dates: 8/9/07, 6/6/11, 7/1/13 (Emer.), 9/9/13