Chapter 3307:2-4 Defined Contribution Plans - Service Credit

3307:2-4-01 Participants generally ineligible to purchase credit.

Except as otherwise specifically provided by the plan document, Chapters 3307:2-1 to 3307:2- 7 of the Administrative Code, or the Revised Code, defined contribution program participants are not eligible to make contributions or purchase credit for periods of time when they were not actually employed in covered teaching service and contributing to this retirement system. To the extent there is a specific provision permitting such contribution or purchase:

(A) The retirement system will issue a statement specifying the cost if payment is received before a date specified.

(B) 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 the amount of the full cost is less than either two hundred dollars or the amount needed to establish one per cent of a year of service credit.

(C) Members applying for service retirement must establish all service credit and contributions before the effective date of service retirement if credit or contributions for such service is to be included in the benefit calculation, except that:

(1) Payment to replace lost contributions from teaching service interrupted by military service or qualifying leaves of absences under rule 3307:2-4-03 of the Administrative Code will be accepted for three months after the effective date of retirement, and credit will be deemed to have been established and contributions posted prior to the effective date, provided:

(a) That prior to the effective date of retirement this retirement system approved an application to replace contributions from teaching service interrupted by military service or qualifying leaves of absence on forms provided by this system determining that the service qualifies for replacement of lost contributions; and

(b) That prior to the effective date of retirement this retirement system issued cost statements for the replacement of lost contributions, with costs calculated for the month in which payment is actually made; 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.

(2) An estimated or partial benefit may be paid prior to the final benefit determination only if a member qualifies for retirement without regard to such service for which payment in full has not been received.

(3) 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 replace lost contributions shall be cancelled;

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

(c) The application for retirement shall be cancelled for any member not eligible to retire without the service that could have been obtained had timely payment been received.

Effective: 09/09/2013
R.C. 119.032 review dates: 06/18/2014
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.81
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/16/04, 6/18/09, 1/7/13 (Emer.), 3/24/13, 7/1/13 (Emer)

3307:2-4-02 Military service.

(A) Participants in the defined contribution plan and the combined plan may make contributions for periods when Ohio teaching service was interrupted by military service under the same terms and conditions as specified for participants in the defined benefit plan by section 3307.752 of the Revised Code. The interest rate used to calculate the cost of any such purchase shall be at the same rate established pursuant to rule 3307:1-3-01 of the Administrative Code for purchases of military service under section 3307.752 of the Revised Code.

(B) The retirement board shall specify the portion of contributions that would have been paid by the participant pursuant to section 3307.26 of the Revised Code, and interest thereon as directed by section 3307.752 of the Revised Code, to be credited to the participant's account in the defined contribution fund created by division (G) of section 3307.14 of the Revised Code. The remaining contributions that would have been paid by the participant for Ohio teaching service interrupted by military service and all employer contributions that would have been paid by the employer pursuant to section 3307.28 of the Revised Code for the participant's period of interrupted military service shall be applied to provide retirement, disability, and survivor benefits under the terms, conditions, and schedules specified by the plan document. A portion of the employer contributions may be allocated to the health care fund under the terms, conditions and schedules specified by the state teachers retirement board.

R.C. 119.032 review dates: 03/24/2014 and 03/24/2019
Promulgated Under: 111.15
Statutory Authority: 3307.80
Rule Amplifies: 3307.81
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/16/04, 1/7/13 (Emer.), 3/24/13, 7/1/13 (Emer.), 9/9/13

3307:2-4-03 Combined plan participant leaves of absence.

Section 3307.77 of the Revised Code permits a teacher in the combined plan to complete contributions for a period during which the teacher was prevented by illness, injury, a leave granted pursuant to section 3319.13 or 3319.131 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) A participant in the combined plan may purchase credit for a period of leave or absence that would qualify for purchases by a defined benefit plan participant under the requirements set forth in section 3307.77 of the Revised Code and rule 3307:1-3-06 of the Administrative Code, provided:

(1) The participant shall pay an amount equal to the sum of teacher contributions on the amount certified by the employer as compensation that would have been payable but for the leave of absence, compounded by interest at the rate established pursuant to rule 3307:1-3-01 of the Administrative Code on both the teacher and employer contributions from July first following the last day of the year in which the leave ends through the month of payment.

(2) Leave of absence purchases made pursuant to section 3307.77 of the Revised Code may be made by a lump-sum payment.

(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 purchases of credit for absences under section 3307.77 of the Revised Code, if the additional contributions will reduce or eliminate limitation of the compensation included in final average salary under section 3307.501 of the Revised Code.

(D) A participant in the combined plan may complete retirement contributions and secure retirement credit for non-paid professional leaves by complying with the following requirements:

(1) Eligibility requirements:

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

(b) 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 an accumulated total of two school years.

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

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

(e) Approval of the employer for the payment of the employer cost without reimbursement from the participant.

(2) Procedural requirements:

(a) Subsequent to the termination of the leave the participant must file with the retirement board:

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

(ii) Certifications of participant's employer as follows:

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

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

(c) Official action of the employer approving the payment of the employer cost without reimbursement from the participant.

(3) Cost calculation:

(a) The participant shall pay to the system for each year of credit purchased under this rule an amount calculated as specified by paragraph (A)(1) of this rule.

(b) 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 compensation the participant would have received for the leave less salary payments made during the leave period, if any.

(E) Upon payment by the participant, service will be posted to the defined benefit portion of the participant's account. The retirement board shall specify the portion of the amount paid by the participant equal to the teacher contributions under section 3307.26 of the Revised Code and interest thereon to be posted to the participant's account in the defined contribution fund. The remaining amount paid by the participant for a leave of absence and all employer contributions paid by the employer for the participant's leave of absence shall be applied to provide retirement, disability, and survivor benefits under the terms, conditions and schedules specified by the plan document. A portion of the employer contributions maybe be allocated to the health care fund under the terms, conditions and schedules specified by the state teachers retirement board.

(F) No refund will be made of amounts paid by a participant to purchase credit as herein provided, except as a part of a total withdrawal of funds.

Effective: 09/09/2013
R.C. 119.032 review dates: 06/18/2014
Promulgated Under: 111.15
Statutory Authority: 3307.77 , 3307.80
Rule Amplifies: 3307.81
Prior Effective Dates: 7/1/01 (Emer), 9/17/01, 9/17/02, 5/24/04, 1/7/13 (Emer), 3/24/13, 6/18/09, 7/1/13 (Emer)