Lawriter - OAC - 3307:2-5-06 Annuitization of defined contribution amounts.

3307:2-5-06 Annuitization of defined contribution amounts.

(A) A defined contribution program participant who has terminated covered employment and applies for distribution after attainment of age fifty may choose to annuitize an account in the defined contribution plan or the defined contribution portion of the combined plan by applying for a monthly payment for the lifetime of the participant, provided:

(1) The minimum monthly amount shall be one hundred dollars.

(2) Application for an annuity must be made on a form provided by and filed with the retirement system.

(3) The monthly amount granted shall be determined under annuity rates and factors adopted and periodically adjusted by the retirement board after review by an independent actuary appointed by the board and applied to the amount accumulated by a participant.

(4) A participant may elect to receive an annuity in the amount determined under paragraph (C) of this rule for life or may instead elect to receive an actuarially equivalent benefit in a lesser amount for the lifetime of the participant but continuing after the participant's death to a beneficiary under any plan of payment specified by rule 3307:2-5-09 of the Administrative Code.

(5) Funds to be annuitized shall be based upon the closing net asset value of the investment choices made by the participant as of the day an application for benefits is ready to be processed for payment. Payment will be made as soon as administratively practicable after receipt of a complete application.

(B) Assuming a non-spouse beneficiary has not been designated as specified in the plan document and rule 3307:2-5-07 of the Administrative Code, the surviving spouse of a defined contribution plan participant, who dies after attaining eligibility for a monthly annuity but before monthly benefits begin, may elect, in lieu of a refund of the member account, to annuitize the participant's member account by making application for a lifetime monthly annuity on a form provided by the retirement system. The monthly annuity shall not be less than one hundred dollars when computed as a one hundred percent joint survivor annuity without reversion; otherwise, a refund of the member account shall be paid.

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: 3307.81, 3307.87
Prior Effective Dates: 7/1/2001 (Emer.), 9/17/01, 9/17/02, 6/18/09