Chapter 3307:2-3 Defined Contribution Plans - Election

3307:2-3-01 Election by new members.

(A) For purposes of section 3307.25 of the Revised Code and Chapter 3307:2-3 of the Administrative Code:

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

(2) "Employment begins" shall mean the first date teaching services are rendered by a teacher for which a teacher is paid by an employer.

(3) "New member" shall mean:

(a) An individual who is employed for the first time as a teacher and who has never previously been a member of the retirement system; or

(b) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code before July 1, 2001; and

(ii) On June 30, 2001 the individual was not a member of the retirement system; and

(iii) The individual thereafter returned to teaching service; or

(c) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system, if:

(i) On June 30, 2001, the individual was a member of the retirement system with five or more years of service credit; and

(ii) The individual terminated covered employment and withdrew contributions pursuant to section 3307.56 of the Revised Code after July 1, 2001; and

(iii) The individual thereafter returns to teaching service; or

(d) An individual who is not a member of the retirement system upon employment as a teacher, notwithstanding prior membership in the retirement system if:

(i) The prior membership in the system was established on or after July 1, 2001; and

(ii) Upon such prior membership, the individual made an election pursuant to section 3307.25 of the Revised Code to participate in the defined contribution plan or the combined plan; and

(iii) The individual thereafter terminated covered employment and withdrew all contributions or had the account exhausted through fees under the terms of the plan in which he or she was participating prior to the first day of June immediately preceding the fourth anniversary of the June thirtieth of the entry year; and

(iv) The individual thereafter returns to teaching service.

(B) Pursuant to section 3307.25 of the Revised Code, a new member shall within one hundred eighty days after employment begins elect on a form provided and received by the retirement system to participate in the defined benefit plan or one of the plans established pursuant to section 3307.81 of the Revised Code.

(C) Except as otherwise specified by the Revised Code, the Administrative Code or the plan document, an election of the defined contribution or combined plans made pursuant to section 3307.25 of the Revised Code and paragraph (B) of this rule shall be effective on the date employment began, shall be irrevocable at the end of the one hundred eighty day election period and shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, or new employment as a teacher.

(D) An individual eligible to make an election under section 3307.25 of the Revised Code and this rule who fails to file an election form with the retirement system within the one hundred eighty day period shall be deemed to have elected participation in the defined benefit plan. Such an election or an active election of the defined benefit plan made pursuant to section 3307.25 of the Revised Code shall be effective on the date employment began, shall be irrevocable at the end of the one hundred eighty day election period and shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, withdrawal from membership or new employment as a teacher except as otherwise specifically provided by the Revised Code, the Administrative Code or the plan document.

(E) The retirement system shall establish an account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code for an individual who elects participation in a plan established under section 3307.81 of the Revised Code within fourteen days of receipt of a form with a valid plan election.

Effective: 06/12/2014
R.C. 119.032 review dates: 03/24/2014 and 06/01/2019
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.25
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/16/04, 6/18/09, 01/07/2013
(Emer.), 3/24/13

3307:2-3-02 Election by certain current members.

(A) For the purposes of this rule and section 3307.251 of the Revised Code:

(1) "Accumulated contributions" shall have the same meaning as that set forth in section 3307.50 of the Revised Code.

(2) "Total service credit" shall have the same meaning as that set forth in section 3307.50 of the Revised Code.

(B) An individual who is a member on June 30, 2001, may elect participation in a plan established under section 3307.81 of the Revised Code in lieu of continued participation in the defined benefit plan established by sections 3307.50 to 3307.79 of the Revised Code retirement system, if:

(1) On June 30, 2001 the member has accrued less than five years of total service credit; and

(2) Before December 28, 2001 the member files with the retirement system a written election, on a form provided by the retirement system.

(C) An election of a plan established under section 3307.81 of the Revised Code pursuant to section 3307.251 of the Revised Code and paragraph (B) of this rule shall be effective July 1, 2001 and shall become irrevocable on December 28, 2001.

(D) If a member eligible to make an election under the terms of section 3307.251 of the Revised Code and this rule does not do so by December 28, 2001, the member shall be deemed to have elected continued participation in the defined benefit plan established by sections 3307.50 to 3307.79 of the Revised Code.

(E) Except as otherwise specified by the Revised Code, the Administrative Code or the plan document, elections under section 3307.251 of the Revised Code and this rule, whether deemed or actual, shall be irrevocable and shall govern future participation in the retirement system, notwithstanding any subsequent terminations of employment as a teacher, changes of employer, withdrawal from membership or new employment as a teacher.

(F) The retirement system shall establish an account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code for a member who elects participation in a plan established under section 3307.81 of the Revised Code within fourteen days of receipt of a complete election form.

(G) The amount standing in the teachers' savings fund created by division (A) of section 3307.251 of the Revised Code and this rule to participate in a plan established under section 3307.81 of the Revised Code shall be transferred to an account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code, plus interest compounded annually at the following rates:

(1) If the member had total service credit as of June 30, 2001 of two and ninety-nine hundredth or less, four per cent.

(2) If the member had total service credit as of June 30, 2001 of three years or more, six per cent for periods prior to January 1, 1999 and five per cent thereafter

Amounts so transferred shall be subject to the same investment allocation as the member directs for new contributions.

R.C. 119.032 review dates: 03/24/2014 and 03/24/2019
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.251
Prior Effective Dates: 7/1/2001 (Emer.), 9/17/01, 6/18/09

3307:2-3-03 Permanent elections.

(A) For the purposes of section 3307.25 of the Revised Code and this rule, the entry year shall be based upon the first payroll report of an employer certifying teaching service, compensation and contributions for a member.

(B) No later than the first day of June immediately preceding the fourth anniversary of the June thirtieth of the entry year, a participant in the defined contribution program may elect to cease participation in the original plan elected and participate in the defined benefit plan or another plan in the defined contribution program. The participant will remain in the original plan elected unless prior to that first day of June the retirement system receives a permanent election to change participation to the defined benefit plan or another plan in the defined contribution program on a form supplied by the retirement system.

(C) Except as otherwise specified by the Revised Code, the Administrative Code or the plan document, participation in a plan as specified by paragraph (B) of this rule shall be irrevocable, shall be effective on that first day of July following the election and shall govern future participation in the retirement system, notwithstanding subsequent terminations of employment as a teacher, changes of employer, withdrawal from membership or new employment as a teacher.

(D) The retirement system will notify a participant eligible to make the foregoing permanent election. The retirement system will provide an explanation of this rule and section 3307.25 of the Revised Code, information summarizing the defined benefit plan, information summarizing the plans that comprise the defined contributions program and instructions for making such an election.

(E) If a defined contribution program participant elects participation in the defined benefit plan , funds shall be transferred in accordance with division (F) of section 3307.25 of the Revised Code from the defined contribution fund to the teachers' savings fund and employer's trust fund created by section 3307.14 of the Revised Code. The account in the defined contribution fund shall be closed. If a participant in the defined contribution program who becomes a participant in the defined benefit plan had purchased credit for military service while still participating in the defined contribution program, credit shall be posted to the account in the defined benefit plan and deemed to have been purchased pursuant to section 3307.752 of the Revised Code.

(F) If a participant in the defined contribution plan elects participation in the combined plan, an amount calculated by using the performance of the investment choices made by the member to determine the sum accumulated by reason of member contributions shall be applied to the defined contribution portion of the combined plan. The investment choices made by the member shall be applied to employer contributions to determine the accumulation resulting from employer contributions that shall be used to provide retirement, disability, and survivor benefits and health care program coverage, if eligible, in accordance with the terms of the combined plan. Service credit shall thereupon be established in the combined plan as if the member had begun participation therein when membership was first established.

(G) If a participant in the combined plan elects participation in the defined contribution plan, the account withdrawal value for the defined benefit portion of the combined plan specified by the plan document as of the first day of July following the fourth anniversary of the June thirtieth of the year of entry shall be applied to an account in the defined contribution plan. A sum calculated by using performance of the investment choices made by a member to determine the accumulation by reason of member contributions to the combined plan shall also be applied to the account in the defined contribution plan. The account in the defined benefit portion of the combined plan fund shall be closed.

Effective: 06/12/2014
R.C. 119.032 review dates: 03/24/2014 and 06/01/2019
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.25
Prior Effective Dates: 7/1/2001 (Emer.), 9/17/01, 6/18/09, 1/7/13 (Emer.), 3/24/13