Chapter 3307:2-6 Defined Contribution Plans - Disability Benefits

3307:2-6-01 Combined plan disability benefits.

(A) A participant in the combined plan may apply for disability benefits specified by the plan document if the participant meets either of the following criteria and applies on a form provided by the retirement system.

(1) The participant had service credit on account on June 30, 2013 with the state teachers retirement system and did not withdraw the account on or after July 1, 2013, has established at least five years of service credit excluding leaves of absences, submits a completed application packet within two years of the last date of contributing service as defined in paragraph (A) of rule 3307:1-1-01 of the Administrative Code, has not taken a distribution from either the defined contribution or defined benefit portion of the account and has become incapacitated from the performance of regular duties in covered employment; or

(2) The participant had no service credit on account on June 30, 2013, with the state teachers retirement system or had service credit on account with the state teachers retirement system on June 30, 2013, but withdrew the account on or after July 1, 2013, has established at least ten years of service credit excluding leaves of absences, submits a completed application packet within one year of the last date of contributing service as defined in paragraph (A) of rule 3307:1-1-01 of the Administrative Code, has not taken a distribution from either the defined contribution or defined benefit portion of the account and has become incapacitated from the performance of regular duties in covered employment.

(B) An application for a disability benefit under the combined plan and continuing eligibility for such a benefit shall be evaluated and reevaluated as specified by sections 3307.48 , 3307.62 , and 3307.631 of the Revised Code and Chapter 3307:1-7 of the Administrative Code. Submission of an application, eligibility and continuing eligibility shall be submitted, reviewed, determined, and reevaluated in accordance with the same procedures, standards, and conditions therein specified. A combined plan participant granted disability benefits shall be subject to all of the requirements and provisions therein specified including, without limitation, requirements to submit medical information, earnings and other reports, requirements to obtain any treatment or examinations, and requirements to refrain from teaching service.

(C) In the event the participant is determined to be incapacitated from the performance of his or her regular duties in covered employment, a disability benefit calculated in the same manner specified by section 3307.631 of the Revised Code shall be granted, notwithstanding the date membership was established in the retirement system or any previous election of disability programs.

(D) Both the defined benefit and defined contribution portions of the participant's combined plan account shall be applied to fund a disability benefit. The defined contribution portion of the participant's account shall be closed upon the grant of a disability benefit. The participant shall thereafter be ineligible to participate in the defined contribution portion of the combined plan. However, in the event such a participant returns to covered employment, future contributions will be credited and allocated as though sections 3307.56 , 3307.631 , 3307.58 and 3307.66 of the Revised Code were applicable, with eligibility for subsequent payments of benefits as therein specified.

(E) 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 credit or contributions to this retirement system for either determination of eligibility for disability benefits or calculation of any such benefits.

(F) Disability benefits under the combined plan shall terminate as specified by division (C) of section 3307.631 of the Revised Code upon the attainment of age sixty-five or the later date therein specified, with subsequent retirement benefits calculated as provided by section 3307.59 of the Revised Code.

(G) If a former recipient of disability benefits whose benefits were terminated returns to teaching service and subsequently completes two years of service credit, credit shall be granted under section 3307.48 of the Revised Code for the period as a disability benefit recipient.

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
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/16/04, 6/18/09, 01/07/2013
(Emer.), 3/24/13, 7/1/13 (Emer.), 9/9/13

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 in accordance with divisions (C)(1) and (C)(2) of section 3307.66 of the Revised Code to the qualified survivors of the deceased participant 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 contributing service as defined in paragraph (A) of rule 3307:1-1-01 of the Administrative Code 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 this rule later than one year from the date of death of the participant, 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 participant.

(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 participant 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. The early retirement reduction factor shall be the greater of either the percentage calculated as specified in this paragraph or the highest percentage calculated for each July first immediately preceding the survivor benefit's effective benefit date, assuming the participant was eligible to retire each July first date.

(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 this rule.

(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 participant 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 participant 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: 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
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/16/04, 6/18/09, 01/07/2013
(Emer.), 3/24/13, 7/1/13 (Emer.), 9/9/13

3307:2-6-03 Combined plan health benefits.

Participants, and their beneficiaries and survivors granted monthly benefits under the defined benefit portion of the combined plan may participate in the health care program established pursuant to section 3307.39 of the Revised Code under the same terms and conditions specified for defined benefit participants by that section and Chapter 3307:1-11 of the Administrative Code.

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
Prior Effective Dates: 7/1/01 (Emer.), 9/17/01, 7/1/13 (Emer.), 9/9/13