Membership shall begin on the first date of compensated service for which employee contributions have been received by SERS.
Last updated October 25, 2023 at 2:14 PM
Chapter 3309-1 | General Provisions
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Rule 3309-1-02 | Definition of compensation.
(A) This rule amplifies and is in addition to the provisions of division (V) of section 3309.01 of the Revised Code. (B) Except as otherwise provided by division (V) of section 3309.01 of the Revised Code, the following payments made by an employer are not "compensation." (1) Payments made by the employer for accrued but unused compensatory time for overtime worked; (2) One-time and/or lump-sum payments made by the employer to an employee where such payments are not based upon the employee's standard rate of pay or identified in paragraph (C) of this rule; (3) Retroactive payments or pay increases made or granted by the employer in whole or in part in consideration of retirement or an agreement to retire; and (4) Any terminal payments or other additional remuneration paid by the employer in consideration of retirement or an agreement to retire. (C) The following payments made by an employer shall be "compensation'': (1) Payments on behalf of the contributor to an eligible retirement plan as defined in section 402(c)(8) of the Internal Revenue Code of 1986, 26 U.S.C. 402(c)(8). (2) Back wages awarded pursuant to a final order or final settlement award that reinstates the contributor to the contributor's former position, or comparable position, without interruption or loss of time. (3) Effective January 1, 2009, differential wage payments as defined in section 3401(h)(2) of the Internal Revenue Code, 26 U.S.C. 3401(h)(2). (4) Payments based on an employee's length of service. (5) A one-time or lump sum payment by the employer that is paid in lieu of a salary or wage increase, to all persons in a class of employees, in the same dollar amount or same percentage of salary or wages, and in accordance with a written contractual agreement. (6) A one-time or lump sum payment made by the employer for additional services rendered. (D) (1) Prior to remitting contributions on salary, wages or other earnings where there is a question on whether such payments or earnings are "compensation," the employer shall request in writing a determination by the retirement board. (2) The retirement board shall give the employer written notice of its determination. (3) If the employer fails to request a prior determination and the retirement board determines that the salary, wages or other earnings are not "compensation," then any contributions received on such salary, wages and other earnings shall be deemed unauthorized and shall be refunded. (4) If the employer fails to request a prior determination and the retirement board determines that the salary, wages, or other earnings are "compensation," then the retirement board may certify for collection pursuant to sections 3309.47 and 3309.51 of the Revised Code the amount of contributions not remitted. Last updated September 30, 2024 at 3:12 PM Supplemental Information |
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Rule 3309-1-03 | Staff authority and appeals.
(A) The school employees retirement board authorizes its administrative staff to make determinations on member and benefit matters in accordance with Chapter 3309. of the Revised Code, this chapter, and policies of the retirement board. This authority includes, but is not limited to, membership, compensation, benefits, and employer reporting matters. Final determinations by the staff may be appealed to the retirement board pursuant to this rule. (B) Except as provided in rules 3309-1-40 and 3309-1-41 of the Administrative Code, any affected person may appeal a final determination of the staff of the school employees retirement system as provided in this rule. (C) (1) A notice of appeal shall be submitted to the executive director in writing, and must be received by the retirement system no more than thirty days after the date of the final staff determination. It shall state the determination to be reviewed, the basis for the review, and whether a personal appearance before the retirement board is requested. (2) The retirement system shall notify the person of the time and place of the personal appearance, if one was requested, and the deadline for submitting any documentation the person wants the retirement board to consider on appeal. (D) (1) The retirement board shall review each appeal and determine whether to uphold the staff determination based upon information in the files of the retirement system. (2) The affected persons and their representatives shall be notified of the retirement board's determination which shall be final. (E) Any notice required or permitted to be given by the retirement system under this rule shall be sent by regular U.S. mail by the administrative staff of the retirement system addressed to the last address on file in the records of the retirement system. Last updated October 25, 2023 at 2:15 PM Supplemental Information |
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Rule 3309-1-04 | Election of retirement board members.
(A) The school employees retirement board shall conduct elections in accordance with Chapter 3309. of the Revised Code and this rule. (B) Notifications (1) At a regular meeting of the retirement board but no later than July in the fiscal year in which an election of members to the board is required, the retirement board shall establish an election time schedule. (2) This schedule shall include, a statement of the requirements for nomination by petition, the date after which nominating petitions shall be available, the final date for receipt of completed nominating petitions, the final date for receipt of completed election ballots being the first Monday in March, and the date and place for the election count to be conducted under the supervision of judges as designated in paragraph (D) of this rule. (C) Nominations (1) Candidates for board members shall be nominated by petition on forms provided by the school employees retirement system. Petitions shall be made available in paper and electronic format. Electronic signatures shall be permitted. (2) (a) Not later than the last business day of September in the fiscal year in which an election is held for an employee member, notice of election posters shall be sent to employers and petitions and required forms shall be available to members. (b) Any member, except a member receiving a disability benefit pursuant to section 3309.40 or 3309.401 of the Revised Code, who is not otherwise ineligible under Chapter 3309. of the Revised Code, may be nominated for election as an employee member of the board by petitions that contain at least five hundred valid nominating signatures with not less than twenty signatures of members from each of at least ten different counties in Ohio. In order for a nominating signature to be valid, the member must be actively contributing to SERS and their SERS ID or last four digits of their social security number and the name of their school employer and the county in which the employer is located must be provided. The member's place of employment shall determine the county for such member. (3) (a) Not later than the last business day of September in the fiscal year in which an election is held for a retirant member, a notice of election shall be sent to retirants at their home addresses of record and petitions and required forms shall be available to retirants. (b) Any retirant, who is not otherwise ineligible under Chapter 3309. of the Revised Code, may be nominated for election as a retirant member by petitions which contain at least one hundred fifty valid nominating signatures, with not less than ten signatures of retirants from each of at least five different counties in Ohio. In order for a nominating signature to be valid, the retirant's SERS ID or last four digits of their social security number, their home address and county must be provided. The retirant's place of residence shall determine the county of such retirant. (4) (a) Petitions and completed required forms for a candidate must be received by the system by the petition filing date established by the retirement board pursuant to paragraph (B) of this rule to be valid. (b) Petition signatures and candidate eligibility shall be verified based on records of the retirement system and the requirements of Chapter 3309. of the Revised Code. Signatures that cannot be conclusively verified shall not be counted. (c) The names of qualified candidates shall be certified by a director of the retirement system and shall be subject to review and audit by the secretary of state. A qualified candidate is one who meets the requirements of Chapter 3309. of the Revised Code. In the event that there is a discrepancy between the certification by the officer of the retirement system and the results of the review and audit by the secretary of state, the determination of the secretary of state shall control and be final. (d) Based on the final certification, the names of qualified candidates shall be placed on the ballot for election. Each ballot shall also include a space for a write-in candidate. (D) Voting (1) The retirement board may conduct an election by paper ballots or through electronic methods. (2) (a) Voting materials for each voting member or retirant of the retirement system shall include a list of candidates, information on each candidate, voting instructions, and any other materials the retirement board deems necessary. (b) Voting materials shall be sent to eligible members or retirants no later than the last business day in January in an election year at the address on file with the retirement system. (3) (a) For any election requiring a vote by members, the retirement board shall distribute ballots for such election to all members whose accounts have had contributions posted within the eighteen month period immediately preceding the month in which ballots are distributed; and (b) To members whose accounts have not had contributions posted within the eighteen month period immediately preceding the month in which ballots are scheduled to be distributed, upon the members written request for a ballot. (4) The election count shall be monitored by a panel of judges consisting of representatives of the secretary of state and the attorney general. The representative of the secretary of state shall be the chief judge. If a representative from such offices is not available, a representative of the retirement system's independent auditor and/or the auditor of state may be substituted. If a representative of the secretary of state is not available, the chief judge, in order of precedence, shall be the representative of the attorney general, the representative of the auditor of state, or the representative of the retirement system's independent auditor. (5) If the ballot count results in a tie vote, the election shall be determined by a coin toss conducted by the judges with "heads" being assigned to the candidate whose last name is first alphabetically and "tails" assigned to the other candidate. (6) If a candidate is elected by a margin of less than one percent of the votes cast, a recount will automatically be conducted. (7) The chief judge shall provide a certification of the election results signed by all judges. The election results shall be submitted to the retirement board for its approval at the first regular retirement board meeting that is not less than thirty-one calendar days after certification of the results of the election. (8) Within thirty calendar days after the certification of the election count, an unsuccessful candidate may request a recount in writing to the retirement board together with a check payable to the retirement system for the costs of the recount in the amount of one hundred dollars; provided however, if the recount results in the requesting candidate winning the election, the cost shall be refunded. (E) Vacancies (1) When an election is held to fill the vacant term of an elected member of the board, the election shall be held pursuant to paragraph (E) of this rule. (2) The retirement board by majority vote of the board shall declare the seat vacant and establish a board-meeting schedule to nominate, interview and select a successor member to fill the position. (3) The retirement board shall provide notice of the vacancy and the procedure and forms required to be considered as a qualified candidate to fill the vacancy. (a) Candidates shall qualify under the same eligibility requirements as the predecessor in office. (b) The names of qualified candidates shall be certified by a director of the retirement system and shall be subject to review and audit by the secretary of state. In the event that there is a discrepancy between the certification by the officer of the retirement system and the results of the review and audit by the secretary of state, the determination of the secretary of state shall control and be final. (4) At a public board meeting, each board member may nominate one candidate to fill the vacancy. (5) The board members shall interview the nominated candidates. (6) A successor member shall be elected from the list of candidates by a majority vote of the retirement board in a public meeting as follows: (a) Two successive votes shall occur in order for one candidate to receive a majority. If no candidate receives a majority, successive votes shall continue with the candidate receiving the least number of votes eliminated after each vote until one candidate receives a majority vote of the board or until only two candidates remain. (b) In the event no candidate receives a majority vote and two candidates remain, one final vote shall occur. If neither candidate receives a majority vote, the winner shall be decided by a coin toss conducted by the election judge with "heads" assigned to the candidate whose last name is first in alphabetical order and "tails" to the other candidate. (7) The election shall be monitored by a representative of the secretary of state, or if unavailable, by a representative of the attorney general, who shall serve as election judge and certify the results of the election. (8) All documents regarding filling the vacancy, including resumes and forms required by the retirement system, shall be made available to any person upon request and payment of the cost of compiling, copying and mailing the documents. (F) An employee member of the board who retires while a member of the board shall be eligible to become a retirant member of the board when three years have elapsed from the member's effective date of retirement and the date of the scheduled election for the retirant member seat. An employee member of the board retires while a member of the board when the member served on the board in the month immediately preceding the member's effective date of retirement. Last updated October 2, 2023 at 8:51 AM Supplemental Information |
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Rule 3309-1-05 | Policy on investment department incentive plan payouts.
(A) Pursuant to section 3309.14 of the Revised Code, payment of employee bonuses are subject to the guidelines established by the school employees retirement board as reflected in the investment department incentive plan. The plan shall be reviewed and approved on an annual basis by the board, and may be interpreted, amended, rescinded, and/or terminated at any time in the board's discretion, provided, however, that no such action by the board will be given effect if it is inconsistent with the requirements of section 409A of the Internal Revenue Code of 1986, as amended. The plan shall establish target incentive awards weighted against performance components, focusing on the school employees retirement system's actual relative investment performance compared with external benchmarks. Any and all material modifications to the plan, including, but not limited to, those related to the assignment of target incentive awards, identification of performance measures and standards, and determination of plan payouts and actual payouts, requires the board's prior approval. (B) Participation in the plan is limited to certain school employees retirement system full-time investment professionals. Participation in the plan in any one year does not confer the right to participate in the plan in the current or any other year and does not confer the right to continued employment. Last updated February 21, 2024 at 11:24 AM Supplemental Information |
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Rule 3309-1-06 | Ohio-qualified agents and investment managers.
(A) For purposes of division (A)(4) of section 3309.157 and section 3309.159 of the Revised Code, an investment manager may be designated as an "Ohio-qualified investment manager" if the investment manager and/or any parents, affiliates, or subsidiaries of the investment manager meets the requirements of divisions (A)(1) and (A)(2) of section 3309.159 of the Revised Code. (B) For purposes of sections 3309.157 and 3309.159 of the Revised Code, "principal place of business" includes an office in which the agent or investment manager regularly provides securities or investment advisory services and solicits, meets with, or otherwise communicates with clients. Last updated February 21, 2024 at 11:31 AM Supplemental Information |
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Rule 3309-1-07 | Application for payment upon termination of employment.
(A) For purposes of this rule, "retirant" means a "SERS retirant" or "other system retirant" as defined in section 3309.341 of the Revised Code, or a member who retired under section 3309.343 of the Revised Code. (B) An application for payment of the accumulated contributions in a member's individual account pursuant to section 3309.42 of the Revised Code shall be signed by the member. If the account balance exceeds five thousand dollars, the member's signature must be notarized or witnessed by a SERS counselor. (C) An application for a lump sum annuity payment or a return of contributions pursuant to section 3309.344 of the Revised Code shall be signed by the retirant. If the account balance exceeds five thousand dollars, the retirant's signature must be notarized or witnessed by a SERS counselor. (D) If the member or retirant was employed in a SERS-covered position during the six month period preceding the application, the application shall not be approved until the employer certifies to the retirement system the member or retirant's last date of service. (E) For purposes of division (A)(2) of section 3309.42 of the Revised Code, "eligible for age and service retirement" means a member is eligible for retirement under section 3309.34, 3309.36, or 3309.381 of the Revised Code on or before the first of the month following the date the application for a refund is received by the retirement system. (F) The retirement board waives the requirement of spousal consent in division (A)(2) of section 3309.42 of the Revised Code upon receipt of one of the following: (1) The written statement of the spouse's physician certifying that the spouse is medically incapable of consent; (2) A certified copy of a probate court order appointing a guardian for the spouse due to a finding of incompetence; or (3) The affidavits of the member and at least two other persons, one of whom must be unrelated to the member, attesting that the whereabouts of the spouse is unknown. (G) A member or retirant may withdraw an application by delivering to the retirement system a signed written request over the applicant's signature to withdraw the application and as follows: (1) If the payment was made by check, by returning to the retirement system the warrant uncashed no later than thirty days from the date the check was issued. (2) If the payment was transmitted by direct deposit to the member or retirant's financial institution, by remitting to the retirement system a personal check or money order repaying the amount transmitted no later than thirty days after the institution's receipt of the payment. (3) If any portion of the payment was distributed as a direct rollover pursuant to rule 3309-1-53 of the Administrative Code, the retirement plan that received the distribution must return to the retirement system the amount transferred no later than sixty days after the transfer. (4) If any portion of the payment was paid to satisfy a court order or was otherwise deducted as required by law, the application may not be withdrawn as provided in this rule. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-08 | Payment of benefits and allowances.
(A) Effective July 1, 1953 all annuities, retirement allowances, and benefits provided by law and payable in monthly installments shall be due and payable in full on the first day of the month. (B) All annuities, retirement allowances, and benefits shall be paid on the first day of the month due. (C) The retirement system may suspend any annuity, retirement allowance or benefit under the following circumstances: (1) If the system has good cause to believe either of the following: (a) That a retirant or benefit recipient may be incapacitated, and no other person has authority to act or receive payment on the retirant or benefit recipient's behalf; or (b) That a retirant or benefit recipient is deceased or missing. (2) If correspondence sent to the most recent mailing address provided by a retirant or benefit recipient is returned to the system as undeliverable and the system does not receive an updated mailing address within thirty days of receipt of the undeliverable correspondence. Last updated February 21, 2024 at 11:31 AM Supplemental Information |
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Rule 3309-1-09 | Federal taxation.
(A) For purposes of this rule, "benefit" refers to a payment from the accumulated contributions of the member or the employer, or both, under Chapter 3309. of the Revised Code and includes an account refund, pension, annuity, disability benefit, or survivor benefit. (B) Notwithstanding any provision in rules of school employees retirement system ("SERS") or Chapter 3309. of the Revised Code to the contrary, distributions to members and beneficiaries shall be made in accordance with a good faith interpretation of the requirements of section 401(a)(9) of the Internal Revenue Code of 1986, 26 U.S.C. 401(a)(9), as applicable to a governmental plan within the meaning of section 414(d) of the Internal Revenue Code, 26 U.S.C. 414(d), and the following: (1) The entire interest of a member shall be distributed to the member: (a) Not later than the required beginning date; or (b) Beginning not later than the required beginning date over the life of the member and a designated beneficiary (or over a period not extending beyond the life expectancy of such member or the life expectancy of such member and designated beneficiary) within the meaning of section 401(a)(9) of the Internal Revenue Code. (2) (a) The required beginning date means April first of the calendar year following the later of: (i) The calendar year in which the member attains the applicable age; or (ii) The calendar year in which the member retires. (b) For purposes of compliance with section 401(a)(9) of the Internal Revenue Code, "applicable age" means: (i) Age seventy and one-half (if the member was born before July 1, 1949); (ii) Age seventy-two (if the member was born after June 30, 1949, but before January 1, 1951); or (iii) Age seventy-three, or the otherwise applicable age under section 401(a)(9)(C)(v) of the Internal Revenue Code, (if the member was born on or after January 1, 1951). (3) If distribution of a member's benefit has begun in accordance with section 401(a)(9) of the Internal Revenue Code, and the member dies, any survivor benefits will be distributed at least as rapidly as under the plan of payment selected and effective as of the date of the member's death. (4) If a member dies before the distribution of the member's interest has begun in accordance with section 401(a)(9) of the Internal Revenue Code, the entire interest of the member will be distributed within five years after the death of such member. However, if a benefit is payable to or for the benefit of a designated beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code, the benefit may be distributed, over the life of such beneficiary, or over a period not extending beyond the life expectancy of the beneficiary, provided that such distributions begin not later than one year after the date of the member's death. If the beneficiary is the surviving spouse of the member, distributions shall not be required to begin, pursuant to that section, until the end of the calendar year in which the member would have attained age seventy-two, in the case of a member who would have attained the applicable age . When the beneficiary is the surviving spouse and the surviving spouse dies before distributions commence, then the surviving spouse shall be treated as the member for purposes of this rule. Effective for calendar years beginning after December 31, 2023, a surviving spouse who is the member's sole designated beneficiary may elect to be treated as if the surviving spouse were the member as provided under section 401(a)(9)(B)(iv) of the Internal Revenue Code. (5) Any death benefit amount payable under Chapter 3309. of the Revised Code must comply with the incidental death benefit requirements of section 401(a)(9)(G) of the Internal Revenue Code. (C) When the retirement system is required to make a distribution in accordance with section 401(a)(9) of the Internal Revenue Code, and a member or retirant does not respond after notification of such event, the following shall apply notwithstanding any provision in SERS rules or Chapter 3309. of the Revised Code to the contrary. (1) If the member is not eligible for a retirement allowance pursuant to section 3309.34 or 3309.35 of the Revised Code, the retirement system shall refund the member's account as authorized in section 3309.42 of the Revised Code. (2) If the member is eligible for a retirement allowance pursuant to section 3309.34 or 3309.35 of the Revised Code, the retirement system shall calculate and pay a benefit as authorized in section 3309.36 or 3309.343 of the Revised Code, as a plan B, effective on the required beginning date as provided in paragraph (B)(2) of this rule. (a) The member cannot purchase or receive any service credit after the effective date of the retirement allowance. (b) A member who commences receipt of a retirement allowance under this rule, and who is married, may, not later than one year after the payment commenced, elect a plan of payment under division (B)(1), (B)(3)(b), or (B)(3)(c) of section 3309.46 of the Revised Code provided the spouse is named as the beneficiary. The election shall be made on a form provided by the retirement system and shall be effective on the later of the effective date of the retirement allowance or the marriage. Any overpayment may be recovered as provided in section 3309.70 of the Revised Code. (c) If the member also was eligible for health care coverage pursuant to SERS rules and Chapter 3309. of the Revised Code, the member may, not later than sixty days after the commencement of payment of the retirement allowance, enroll for such health care coverage on a form provided by the retirement system. The effective date shall be no earlier than the first of the month after the retirement system receives the member's enrollment form. (3) If the retirant is eligible for a benefit pursuant to section 3309.344 of the Revised Code, the retirement system shall calculate and pay a single lump sum benefit as authorized in section 3309.344 of the Revised Code. If such retirant also is eligible for an annuity, the retirant may return the lump sum payment within sixty days of the receipt of the payment and request an annuity on a form provided by the retirement system. (4) If the benefit payment of a deceased member's spouse is subject to section 401(a)(9) of the Internal Revenue Code, then the retirement system shall treat the spouse as if the spouse was the member for the purposes of this rule, to the extent provided under section 401(a)(9) of the Internal Revenue Code. (D) (1) Effective for the limitation year beginning on January 1, 2012, the final regulations promulgated April 5, 2007 with respect to section 415 of the Internal Revenue Code, 26 U.S.C. 415 are incorporated herein by reference. The 5.5 per cent interest rate assumption established by the Pension Funding Equity Act of 2004, which is applicable to any actuarial adjustments required because the member or retirant elects a form of payment to which section 415(b)(2)(E) of the Internal Revenue Code and section 417(e)(3) of the Internal Revenue Code, 26 U.S.C. 417(e)(3) apply based on the form of benefit and not the status of the plan, shall be effective as of that same date. (2) "Limitation year" is the year used in determining whether the limits set forth in section 415 of the Internal Revenue Code have been exceeded with respect to a member or retirant in the plan describe in sections 3309.18 to 3309.70 of the Revised Code. The limitation year for the plan is the calendar year. (E) Effective January 1, 2007, to the extent required by section 401(a)(37) of the Internal Revenue Code, 26 U.S.C. 401(a)(37) and notwithstanding any provision in Chapter 3309. of the Revised Code to the contrary, the survivor of a member on a leave of absence to perform military service with reemployment rights described in section 414(u) of the Internal Revenue Code, 26 U.S.C. 414(u), where the member cannot return to employment on account of his or her death, shall be entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would be provided under Chapter 3309. of the Revised Code had the member resumed employment and then terminated employment on account of death. (F) If there is a termination of the plan described in Chapter 3309. of the Revised Code or a complete discontinuance of contributions to the plan, the rights of each affected member, retirant, and beneficiary to the pension, annuity, or benefits accrued at the date of termination or discontinuance of contributions, to the extent then funded, are non-forfeitable. (G) For purposes of the limit established by section 415 of the Internal Revenue Code, 26 U.S.C. 415, effective January 1, 2009, compensation shall include differential wage payments as defined in section 3401(h)(2) of the Internal Revenue Code, 26 U.S.C. 3401(h)(2). Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-10 | Mandatory direct deposit.
(A) For purposes of this rule, "direct deposit" means an electronic fund transfer directly to an individual's account at a financial institution. (B) All retirement allowances and benefits payable under Chapter 3309 of the Revised Code shall be paid by direct deposit. (C) Individuals shall provide to the retirement system valid direct deposit account and routing numbers, the name and contact information of the financial institution, and such other information as may be required by the retirement system. The retirement system may withhold payment until the individual provides the information described in this paragraph. (D) If an individual resides outside the United States or experiences other circumstances such that compliance with this rule is impracticable, the individual may submit a written request for exemption from direct deposit and the retirement system staff shall approve or deny the request. Last updated March 22, 2024 at 10:55 AM Supplemental Information |
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Rule 3309-1-11 | Membership determinations.
(A) A request for a determination as to whether an individual or a group of individuals are required to be members of the school employees retirement system may be initiated by an employer, an affected individual, or the retirement system. (1) An employer or individual who has a question as to membership requirements shall request in writing a determination by the retirement system. Such determination shall be made as provided in rule 3309-1-03 of the Administrative Code. (2) When a membership determination has been initiated, the employer and any affected individual or individuals shall furnish such documents and information requested by the retirement system. (B) If contributions have not been remitted and the retirement system determines the individual is covered by this system, the employer shall be liable for employee and employer compulsory contributions pursuant to rule 3309-1-13 of the Administrative Code. If no membership record and/or contributions are received by the system within thirty days of the determination, a charge, based on an estimated salary for such individual's position, against the employer shall be made for collection through the state school foundation program if available or by direct billing. (C) If contributions have been remitted and the retirement system determines the individual is not covered by this system, any contributions received shall be unauthorized and shall be refunded. (D) (1) The definition of "employee" in division (B)(2) of section 3309.01 of the Revised Code does not include a person who holds a position for which the person is required to have a certificate or license issued pursuant to sections 3319.22 to 3319.31 of the Revised Code. (2) The retirement board has determined that the phrase "service common to the normal daily operation of an educational unit" as used in division (B)(2) of section 3309.01 of the Revised Code means: (a) Any service required to be provided on a regular continuous basis by an educational unit or the provision of which is governed by law, statute, or rule; or (b) Any service necessary on a regular continuous basis to the efficient operation of an educational unit; or (c) Any service which, through custom and usage, has become a service commonly provided or procured by an educational unit on a regular continuous basis. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-12 | Contributing service credit; determination of.
(A) Any contribution or contributions received for a particular month, beginning with September 1, 1937 and ending June 30, 1955, for credit to a member's savings account shall receive .125% of a year's service credit for that particular month, provided, that no more than one year of service credit shall be granted for all service rendered in any one fiscal year. (B) Any contribution or contributions received for a particular month, subsequent to June 30, 1955, but prior to July 1, 1977, for credit to a member's savings account, shall receive one-ninth of a year's service credit for that particular month, provided that not more than one year of service credit shall be granted for all service rendered in any one fiscal year. (C) Service credit granted under the provisions of paragraphs (A) and (B) of this rule, shall be subject to such adjustment by the retirement board as provided by law. (D) Contributing service credit for school employment rendered on or after July 1, 1977 shall be credited to members as follows: (1) A full year of service credit will be credited for one hundred twenty or more days of paid school employment during a year. (2) For less than the above described one hundred twenty days during a year, a fraction of a year credit shall be credited, and shall be determined by dividing the actual number of days paid in a year by one hundred eighty days. (E) Contributing service as a school board member or governing board member will be credited as provided in paragraph (D) of this rule. A day of "paid school employment" for a board member shall mean any day for which the board member was compensated for attending a regular or special meeting of the board or an approved training program. Payment or reimbursement of fees or expenses by the school district or educational service center does not constitute compensation. (F) The number of days and the number of hours of paid school employment shall be certified by the employer in a manner specified by the retirement board. (G) A "year" shall mean the period July first through the following June thirtieth. (H) Any portion of a day paid shall be considered a full day. (I) Credit for school service rendered before July 1, 1977 shall continue to be determined pursuant to paragraphs (A) to (C) of this rule. Last updated October 25, 2023 at 2:15 PM Supplemental Information |
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Rule 3309-1-13 | Obtaining optional or compulsory service credit.
(A) Optional service credit (1) Except as provided by section 3309.012 of the Revised Code, a member of the school employees retirement system, public employees retirement system, or state teachers retirement system shall be eligible to purchase service credit for school employment on or before June 30, 1991 for which contributing service was optional. Contributing service shall be deemed to be optional when contributions were not required by the school employees retirement system and no contributions or member record was received. In order to receive optional service credit, payments shall be made as provided in this paragraph. (2) (a) For any period of optional service, the member shall pay to the school employees retirement system an amount equal to the employee's and employer's contributions for such period, plus interest at the rate to be set by the school employees retirement board from the end of each year compounded annually. Such amounts paid by the member shall be credited to the employees' savings fund. (b) Optional service may be purchased in one month increments. (c) When only a portion of a period of optional service is purchased, service shall be purchased in reverse chronological order from the most recent month to the oldest month. (3) In lieu of the member paying the amounts described in this paragraph, the employer for which the optional service was performed may pay an amount equal to either the employee's and employer's, or only the employer's, contributions for such period, plus interest at the rate set by the retirement board from the end of each year compounded annually. If paid by the employer, such amounts shall be credited as follows: (a) The amount and interest attributable to the employee's back contributions shall be credited to the employees' savings fund; and, (b) The amount attributable to the employer's contributions shall be deposited in the employers' trust fund and the interest collected on such amount shall be credited to the guarantee fund. If the employer pays only the amount equal to the employer's contributions and interest on that amount, the member shall pay the amount equal to the employee's contributions and interest on that amount. (B) Compulsory service credit (1) Except as provided in paragraph (B)(3) of this rule, to receive service credit for periods of compulsory service prior to June 30, 1991, for which the employer did not deduct and transmit contributions, the member shall pay the employee's share of the back contributions and the employer shall pay the employer's share of the back contributions. Payments for both the employee's and the employer's shares of back contributions shall include a charge for interest at the rate set by the retirement board from the end of each year, compounded annually. (a) The employee's back contributions and interest shall be credited to the employees' savings fund, and in the event of death or withdrawal from service prior to retirement, shall be paid in the same manner as accumulated contributions pursuant to sections 3309.42 and 3309.44 of the Revised Code. (b) The employer's share of back contributions shall be deposited in the employers' trust fund and the interest collected thereon shall be credited to the guarantee fund. (2) Except as provided in paragraph (B)(3) of this rule, to receive service credit for periods of compulsory service after June 29, 1991, for which the employer did not deduct and transmit contributions, the employer shall pay both the employer's share and the employee's share of the back contributions. Payments for both the employee's and the employer's shares of back contributions shall include a charge for interest at the rate set by the retirement board from the end of each year, compounded annually. (a) The employee's back contributions and interest shall be credited to the employees' savings fund, and in the event of death or withdrawal from service prior to retirement, shall be paid in the same manner as accumulated contributions pursuant to sections 3309.42 and 3309.44 of the Revised Code. (b) The employer's share of back contributions shall be deposited in the employers' trust fund and the interest collected thereon shall be credited to the guarantee fund. (3) When a member has left service with an employer after attaining sixty-five and applies for retirement, the member shall receive service credit in accordance with section 3309.48 of the Revised Code for periods of compulsory service prior to June 30, 1991, for which the employer did not deduct and transmit contributions. (C) The compensation and service of the member shall be certified by a fiscal officer of the school district who has knowledge of and access to the records of the district. A member cannot certify his own compensation or service. (D) The member's share of back contributions may be paid directly to the retirement system. (E) The employer's share of back contributions may be paid either by an official warrant or collection from the employer's share of the state school foundation fund. (F) Service credit for any period described in this rule shall be credited to the member's account on the date payment in full has been received by the retirement system for both the employee and employer shares of back contributions. Last updated May 1, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-14 | Purchasing leave of absence service credit.
(A) A state retirement system member as defined in section 3309.474 of the Revised Code who while employed in a position covered by the school employees retirement system was out of service due to an unpaid leave of absence granted by the employer pursuant to section 3319.13 of the Revised Code for educational or professional purposes, illness, or disability may purchase service credit for the leave so long as the member provides certifications from the employer establishing the following: (1) That the employer granted the leave of absence pursuant to section 3319.13 of the Revised Code; (2) The beginning and ending dates of the leave; (3) The number of days the member would have worked during the leave period; and (4) The compensation the member would have received for the period of the approved leave. (B) Payment shall be made by payroll deduction or by payment to the member's employer who shall transmit the payment to the retirement system. (C) Service credit may not be purchased under this rule until the leave, including any extensions or renewals, has ended. (D) Service credit purchased under this rule may be purchased in increments of one month. (E) Amounts paid by a member to purchase service credit shall be credited to the employees' savings fund. (F) Service credit purchased under this rule shall be considered the equivalent of Ohio service credit. Last updated May 2, 2022 at 9:13 AM Supplemental Information |
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Rule 3309-1-15 | Applicable law in determining survivor benefits.
The law in effect at the time a deceased member's beneficiary is first eligible for a survivor benefit shall determine the benefits payable to such beneficiary or to any other person who subsequently becomes eligible to receive a survivor benefit by reason of the member's death prior to retirement. Last updated October 25, 2023 at 2:15 PM Supplemental Information |
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Rule 3309-1-16 | Qualified child attending educational institution.
(A) For purposes of this rule and division (B)(2)(b) of section 3309.45 of the Revised Code: (1) "Qualified child" means a qualified child as defined in division (B)(2)(b) of section 3309.45 of the Revised Code. (2) "School year" means the twelve-month period beginning the first day of July through the last day of June of the following calendar year. (3) "School" means an educational entity providing instruction through grade twelve and includes a vocational or technical school. (4) "College" or "university" means an educational entity providing instruction post grade twelve. (5) "Attending" means registered or enrolled at the institution of learning or training and attending classes. (6) "Institution of learning or training" means one of the following: (a) A school: (i) In Ohio and recognized by the Ohio department of education as meeting Ohio's compulsory education requirements; (ii) In another state and recognized by that state as complying with the state's compulsory education requirements or accredited by a state-recognized, regionally-recognized, or nationally-recognized accrediting agency; or (iii) Operated by the federal government. (b) Home education provided in compliance with Ohio law, or with the law of the state in which the home education is provided. (c) A college or university: (i) In Ohio and recognized by the Ohio board of regents, the state board of career colleges and schools, or other applicable state agency or board; or (ii) In another state and recognized by the Ohio board of regents, the state board of career colleges and schools, or other applicable Ohio state agency or board, or by comparable state agencies where the college or university is located, or accredited by a state-recognized or nationally-recognized accrediting agency. (d) An unrecognized or unaccredited private school, college, or university provided at least three recognized or accredited schools, colleges, or universities accept its credits on transfer on the same basis as if transferred from a recognized or accredited school, college, or university. (e) A school, college, or university outside the United States if it meets comparable qualifications described in paragraphs (A)(6)(a) to (A)(6)(d) of this rule. (7) "Two-thirds of the full-time curriculum" means at least two-thirds of the full-time curriculum requirements as established and certified by the school, college or university. The curriculum may include the time a qualified child is employed in a position approved by the school, college, or university and required as part of the child's program of study. (B) Benefit payments made to a qualifying child under division (B)(2)(b) of section 3309.45 of the Revised Code shall be made as follows: (1) Benefit payments to a qualified child over age eighteen but under age twenty-two shall begin only after the child files an application for such benefits. (2) Benefit payments shall be paid during an institution of learning or training vacation or other academic break provided the child: (a) Was a qualified child before the vacation or break began; (b) Intends to, and subsequently does, return to an institution of learning or training and certifies such return to the retirement system; (c) Receives a benefit payment for no more than four consecutive months without returning to the institution of learning or training from the vacation or academic break; (d) Does not receive benefits for more than one vacation or break for a period which exceeds one month in duration during a single school year. (3) If benefits are terminated because the child no longer attends an institution of learning or training, such benefits may be reinstated if the child subsequently becomes eligible and files a new application for prospective payment of such benefits. (C) (1) At the end of each academic year, a qualified child shall certify the child's registration with an institution of learning or training and completion of all courses for such academic year. (2) The retirement system may require or request such certification at any other time and/or additional supporting documentation. (D) (1) The retirement system may delay or terminate benefits to a qualified child if: (a) The child is no longer attending an institution of learning or training; or (b) The retirement system does not receive a timely and properly verified certification as required by this rule. (2) Any benefit payment made for a period in which the child was not attending an institution of learning or training, or for which there was no proper verified certification as required by this rule shall be deemed an overpayment of the benefit. Any overpayment of a benefit shall be repaid to the retirement system by the child or the child's parent or guardian or obtained by the retirement system pursuant to section 3309.70 of the Revised Code. Last updated October 25, 2023 at 2:15 PM Supplemental Information |
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Rule 3309-1-17 | Allowances and benefits payable.
The administrative staff is hereby authorized to pay retirement allowances, disability benefits, and other benefits during the interim period which may occur between the date such allowances and benefits are payable and the date the retirement board can receive and act upon the application, as such authority so granted is considered as necessary to the proper operation of the retirement system. For purposes of this rule, disability benefits are payable after the submission of a determination and recommendation of disability to the retirement board and after the retirement system has received the employer's certification of final deposits on behalf of the member. Last updated October 25, 2023 at 2:15 PM Supplemental Information |
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Rule 3309-1-18 | Payment of contributions.
(A) For purposes of this rule: (1) "Employer" has the same meaning as in section 3309.01 of the Revised Code. (2) "Contribution report" means payroll data for each pay date that has been cleared of any errors or warnings. (3) "Surcharge" means the employer minimum compensation contribution amount determined pursuant to section 3309.491 of the Revised Code. (B) Payments due under section 3309.47 of the Revised Code shall be received by the school employees retirement system by the fifth business day following the pay date. (C) Contribution reports shall be posted online with the retirement system by the fifth business day following the pay date. (D) Payments due under section 3309.51 of the Revised Code and paid by an employer directly to the employers' trust fund shall be received by the retirement system by the fifth business day following the pay date. (E) Payments due to the employers' trust fund pursuant to section 3309.51 of the Revised Code and received from the amounts allocated under Chapter 3317. of the Revised Code shall be remitted each month and attributed to that month. (F) Annually, the retirement system shall issue a final school year statement that reconciles the estimated employer payments received with the employer payments owed. Within thirty days of the statement's issuance, the employer shall directly pay to the employers' trust fund any balance owed, or the retirement system shall directly refund to the employer any overpayments made. The retirement system shall not issue a refund to an employer whose reports or payments are delinquent. (G) Surcharge payments due to the employers' trust fund shall be collected in one of the following ways: (1) An employer who chooses direct pay or an employer who does not receive amounts allocated under Chapter 3317. of the Revised Code shall pay its surcharge directly to the employers' trust fund within thirty days after receipt of the certified amount due from the retirement system. (2) For those employers who do not choose the direct pay option under paragraph (G)(1) of this rule, as well as science, technology, engineering and mathematics schools and community schools, the retirement system shall include surcharge payments in the estimated payments certified to the superintendent of public instruction pursuant to section 3309.51 of the Revised Code. (H) For any payments made pursuant to paragraphs (B), (D), (F) and (G)(1) of this rule, payment remittance information shall be submitted in the manner specified by the retirement system no later than the date the payment is received by the retirement system. (I) The retirement system may extend a due date for an employer upon a finding that good cause has been shown. (J) For purposes of section 3309.571 of the Revised Code, "days" refers to "business days." (K) An employer shall repay the retirement system for any amounts paid by the retirement system as the result of employer errors in reporting or certifying information to the retirement system. Last updated February 21, 2024 at 11:31 AM Supplemental Information |
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Rule 3309-1-19 | Member enrollment.
The statement required under section 3309.28 of the Revised Code shall be submitted through the retirement system's electronic employer reporting system. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-20 | Validity of marriage.
(A) For purposes of this rule, "age and service retirant" and "disability benefit recipient" have the same meaning as defined in rule 3309-1-35 of the Administrative Code, and "retirant" has the same meaning as defined in division (G) of section 3309.01 of the Revised Code. (B) For the purpose of qualifying for, or receiving, any benefit as a spouse under Chapter 3309. of the Revised Code, the member's or retirant's marriage must be recognized by the state of Ohio. The school employees retirement board shall accept the following as proof of marriage: (1) A marriage certificate; or (2) In the absence of a marriage certificate, a decision rendered by a court, having jurisdiction in the state in which the member or retirant was domiciled at the time of death, that the relationship constituted a valid marriage at time of death, or the "spouse" would have the same status as a widow or widower for purposes of sharing in the distribution of the member's or retirant's intestate personal property if not otherwise prohibited by section 3105.12 of the Revised Code. (C) For any retirant or disability benefit recipient legally married in another state before June 26, 2015 whose marriage became recognized in the state of Ohio beginning on that date, the following rules apply: (1) If a retirant makes an election under division (E)(3) of section 3309.46 of the Revised Code, the election must be made before June 26, 2016; (2) An eligible age and service retirant or disability benefit recipient may enroll themself and may enroll a spouse in the system's health care plan at any time between August 1, 2015 and November 30, 2015. (3) The surviving spouse of a deceased age and service retirant who is receiving a benefit pursuant to section 3309.46 of the Revised Code may enroll in the system's health care plan at any time between August 1, 2015 and November 30, 2015. Last updated October 25, 2023 at 2:16 PM Supplemental Information |
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Rule 3309-1-21 | Estimated retirement allowances.
(A) For purposes of this rule: (1) "Final retirement allowance" means a monthly retirement allowance paid pursuant to section 3309.35, 3309.36 or 3309.46 of the Revised Code that the retirement system calculates after the employer certifies the final contributions and service credit made on behalf of the member. (2) "Estimated retirement allowance" means a monthly retirement allowance paid pursuant to section 3309.35, 3309.36 or 3309.46 of the Revised Code prior to the certification of a member's final contributions and service credit and the calculation of the final retirement allowance. (B) A member retiring on or after March 1, 2014 under section 3309.35, 3309.36 or 3309.46 of the Revised Code who meets the following requirements shall receive an estimated retirement allowance: (1) The retirement system has received the member's application for age and service retirement and all required forms and documents necessary to process the retirement application at least thirty days prior to the effective date of retirement. (2) The member has sufficient service credit in this system to retire under section 3309.34 of the Revised Code, not including the following: (a) Any additional service that may be credited following receipt of the certification of final deposits from the employer; and (b) Service credit purchases not completed at least thirty days prior to the benefit effective date. (C) Notwithstanding paragraph (B) of this rule, an estimated retirement allowance will not be issued if: (1) The member elects to receive health care coverage and the amount of the benefit recipient's health care premium will exceed the amount of the estimated retirement allowance; or (2) The member's retirement allowance is subject to any court order. (D) An estimated retirement allowance shall be calculated using the accumulated contributions and service credit available in the account of the member at the time the retirement application is received. The retirement system shall calculate the final retirement allowance following the receipt of the employer's certification of final deposits and all contributions on behalf of the member. (1) If no additional contributions are received by the retirement system, the estimated retirement allowance shall be the final retirement allowance. (2) If the final retirement allowance is greater than the estimated retirement allowance, the retirement system shall issue a retroactive payment for the difference between the total amount paid as estimated retirement allowances and the amount that would have been paid had the member received payments in the amount of the final retirement allowance. (3) If the final retirement allowance is less than the estimated retirement allowance, the retirant shall repay any overpayment to the retirement system pursuant to section 3309.70 of the Revised Code. (E) In order to change a retirement plan of payment selection, including an election to take or change the amount of a partial lump sum option payment, a member must withdraw their retirement application in accordance with rule 3309-1-33 of the Administrative Code and file a new application. (F) If the member elects to receive a partial lump sum option payment pursuant to division (B)(4) of section 3309.46 of the Revised Code, the retirement system shall make such payment following the calculation of the final retirement allowance under paragraph (D) of this rule. Last updated October 25, 2023 at 2:16 PM Supplemental Information |
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Rule 3309-1-22 | Disability retirement - effective date.
For purposes of section 3309.40 of the Revised Code, a member who files an application for disability retirement prior to the member's sixtieth birthday and whose last date of contributing service is prior to the member's sixtieth birthday "has not attained age sixty." Last updated February 21, 2024 at 11:31 AM Supplemental Information |
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Rule 3309-1-23 | Contributing status; compulsory and optional.
(A) The following standards shall apply for the determination of contributing status in the school employees retirement system. (B) Contributing status shall be required for any employee of an employer as defined in divisions (A) and (B) of section 3309.01 of the Revised Code beginning with the first date of service, unless contributing status is otherwise made optional under this rule or the provisions of Chapter 3309. of the Revised Code. (C) (1) Employees who are eligible pursuant to division (B) or (C) of section 3309.23 of the Revised Code to elect to be exempt from contributing status, shall make such election by filing a written application for exemption with their employer within the first month of being employed. (2) Once an exemption is filed, it is irrevocable during the current period of employment for the same employer provided the employee remains qualified for an exemption pursuant to division (B) or (C) of section 3309.23 of the Revised Code. Should the employee no longer qualify for an exemption, the previously filed exemption shall be invalid and contributing status shall be mandatory. (3) An exemption shall be valid only during the current period of employment for the employer by whom the employee is employed at the time that the exemption is filed. When such employment terminates, the exemption also terminates. Upon return to employment, either for the former or for another employer, contributing status is mandatory unless the employee qualifies and timely applies for an exemption. (D) (1) Within thirty days of initially taking office, school board members or governing board members who are compensated by the school district for their services as board members may elect to be members by filing a written election with the treasurer of the board of education. If the board member elects to be a member, the treasurer of the board of education shall notify the system of the election on a form provided by the school employees retirement board. Board members who are not compensated for their services, or who receive only reimbursement or payment for their expenses, are not eligible to be members. (2) A board member who is a SERS retirant or other system retirant as defined in section 3309.341 of the Revised Code and who has elected to be a member shall contribute under the provisions of section 3309.341 of the Revised Code. (3) The election to become a member, once made, is irrevocable during the board member's current term as a board member, and during any successive terms where the board member has not, prior to the commencement of the term, refunded his accumulated contributions or taken a retirement benefit from the school employees retirement system. Last updated October 25, 2023 at 2:16 PM Supplemental Information |
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Rule 3309-1-24 | Ohio service credit and calculation of final average salary.
Service credit that is purchased or obtained under section 3309.022, 3309.474, 3309.73, 3309.731, or 3309.75 of the Revised Code, shall be used in determining eligibility for a retirement allowance or a benefit as provided in Chapter 3309. of the Revised Code, including the calculation of the member's final average salary and total service credit in the school employees retirement system. Last updated October 25, 2023 at 2:16 PM Supplemental Information |
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Rule 3309-1-25 | Notice of meetings.
(A) Any person may determine the time and place of all regularly scheduled meetings and the time, place, and purpose of all special meetings by: (1) Writing to the following address - "School Employees Retirement System 300 East Broad Street, Suite 100 Columbus, Ohio 43215" (2) Calling the following telephone number during normal business hours - 614/222-5853 (3) Accessing the SERS website - www.ohsers.org (B) Any representative of the news media may obtain notice of all special meetings by requesting in writing that such notice be provided. Such notice will only be given, however, to one representative of any particular publication or radio or television station. A request for such notification shall be addressed to: "Executive Director School Employees Retirement System 300 East Broad Street, Suite 100 Columbus, Ohio 43215" (1) The request shall provide the name, United States postal service address and/or electronic mail address, and a maximum of two telephone numbers of the individual media representative to be contacted. The school employees retirement system shall maintain a list of all representatives of the news media who have requested notice of special meetings pursuant to this rule. (2) In the event of a special meeting not of an emergency nature, the school employees retirement system shall notify all media representatives on the list of such meeting by doing at least one of the following: (a) Sending written notice, by electronic mail or United States postal service, which must be sent no later than four calendar days prior to the day of the special meeting; (b) Notifying such representatives by telephone no later than twenty-four hours prior to the special meeting; such telephone notice shall be complete if a message has been left for the representative, or, if after reasonable effort, the school employees retirement system has been unable to provide such telephone notice; (c) Informing such representative personally no later than twenty-four hours prior to the special meeting. (C) In the event of a special meeting of an emergency nature, the school employees retirement system shall notify all media representatives on the list of such meeting by providing either the notice described in paragraph (B)(2)(b) of this rule, or that described in paragraph (B)(2)(c) of this rule or notifying the clerk of the state house press room. In such event, however, the notice need not be given twenty-four hours prior to the meeting, but shall be given as soon as possible. (D) In giving notices required by this rule, the school employees retirement board may rely on assistance provided by any member of the staff of the school employees retirement system, and such notice is complete if given by such member in the manner provided in this rule. (E) The school employees retirement system shall maintain a list of all persons who have requested, in writing, notice of all meetings of the school employees retirement board. Last updated February 21, 2024 at 11:39 AM Supplemental Information |
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Rule 3309-1-26 | Determination of beneficiary.
(A) This rule amplifies divisions (B), (C) and (D) of section 3309.44, section 3309.45, and section 3309.50 of the Revised Code. (B) An individual who does not survive a member or retiree by one hundred twenty hours will be deemed to have predeceased the member or retiree. (C) For purposes of division (B) of section 3309.44 of the Revised Code, when a surviving designated beneficiary dies more than one hundred twenty hours after the member, but before receiving payment, the payment shall be paid to the estate of the designated beneficiary. (D) For purposes of divisions (C) and (D) of section 3309.44 and section 3309.50 of the Revised Code, a person is considered "not located" and ceases to qualify as beneficiary if: (1) No valid mailing address can reasonably be determined for the person; or (2) The person fails to file an application for payment within one hundred eighty days from the date the school employees retirement system first notifies the person of beneficiary status. (E) Except as provided under division (C)(1) of section 3309.45 of the Revised Code, when a member designates two or more persons as joint beneficiaries, the designated beneficiaries may only be paid the accumulated account in a lump sum. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-27 | Intersystem transfers with non-uniform systems.
(A) This rule amplifies section 3309.35 of the Revised Code and applies to members who retire with an effective date of retirement on or after February 1, 2013. (B) For the purpose of this rule: (1) "State retirement system" and "retention percentage" have the same meanings as in section 3309.35 of the Revised Code. (2) "Fiscal year" means, for the public employees retirement system, a calendar year and, for the school employees retirement system and state teachers retirement system, the twelve-month period beginning on July first and ending on June thirtieth. (C) For purposes of determining the amount transferred under division (B)(5)(a) of section 3309.35 of the Revised Code, all of the following apply: (1) The amount contributed by the member includes any amounts paid to restore service credit under section 3309.26 of the Revised Code. (2) The amount of employer contributions shall be determined using the lesser of the employer's contribution rate in effect at the beginning of the fiscal year for each of the state retirement systems involved in the transfer, less the retention percentage. (3) Any amounts paid by the member to purchase service credit shall include, if applicable, any amounts paid by the employer to purchase service credit. (4) Except as provided in this paragraph, interest shall be calculated beginning on the first day of the fiscal year following the year in which the contributions were made and ending on the last day of the month in which the transfer occurs. If the amount to be transferred includes any amounts paid to purchase service credit, other than amounts paid to restore service credit under section 3309.26 of the Revised Code, interest on the amounts paid to purchase service credit shall be calculated beginning on the first day of the fiscal year following the year in which the payment to purchase the credit was made and ending on the last day of the month in which the transfer occurs. For each year of service credit to be transferred, the interest rate shall be determined by using the lesser of the actuarial assumption rate in effect at the beginning of the fiscal year for each of the state retirement systems involved in the transfer. (D) If a member of the public employees retirement system has contributions to more than one employer division of the system, the employer contribution rate for the system shall be determined using the last division to which the member contributed. If the period of service and contributions to be transferred includes service that occurred prior to the date the member's most recent division was established, the school employees retirement system shall use the employer contribution rate for its system for that year. Last updated February 21, 2024 at 11:39 AM Supplemental Information |
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Rule 3309-1-28 | Purchase of service credit; military.
(A) Compound interest at a rate to be set by the board shall be applied from the date of the member's first service covered by the school employees retirement system, public employees retirement system or state teachers retirement system following the termination of military duty to date of payment. (B) The number of years to be purchased shall not exceed five years or the total number of years of Ohio contributing service credit accumulated at time of purchase, whichever is the lesser. (C) The member may purchase any portion of the military service, provided that a member with less than five years of military service who buys all of his service will be credited with the total days of the final month of service. (D) The rate of contribution will be that which is in effect at the time the member entered into active military service. (E) The maximum salary limitation stipulated in Chapter 3309. of the Revised Code when the member completed his first year of Ohio service, will be observed in the calculation of the cost to purchase. Last updated February 21, 2024 at 11:39 AM Supplemental Information |
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Rule 3309-1-29 | Purchase of service credit; out-of-state and other.
(A) All service in public or private schools, colleges and universities or public service with another state or the United States government which is to be purchased shall be subject to the following requirements, governing eligibility and cost: (1) To be eligible to purchase service under this rule, after termination of the service to be purchased, a member must have one year of Ohio service in a year as defined in division (R) of section 3309.01 of the Revised Code. (2) The service credit must be properly certified by the official employer or custodian of records on a form acceptable to the retirement board. The certification should be taken from a legitimate source of documentation such as payroll or retirement records. When records have been destroyed, affidavits may be used, but only in conjunction with other documented evidence as proof of service. (3) Accrued interest shall be calculated from the date of membership in the school employees retirement system of Ohio following service to be purchased to the date of payment. (4) The member will be entitled to purchase any portion of the service credit under this rule not to exceed five years, or the total accumulated number of years of Ohio contributing service credit, whichever is less. (5) Service credit to be purchased shall be granted in accordance with the law and policy of the school employees retirement board current at the time each portion of service to be purchased was performed. (6) School service purchased under this rule shall receive .125 per cent of a year service credit per month of service rendered prior to July 1, 1955, and .111 per cent of a year service credit per month of service rendered after June 30, 1955 and before July 1, 1977. School service performed after June 30, 1977 shall be determined by dividing the number of days paid by one hundred eighty, if the employee worked less than one hundred twenty days in the partial year to be purchased. All service other than school service purchased under this rule shall receive .083 per cent of a year service credit per month of service rendered. (7) The Ohio service used for the purpose of establishing the purchase price of service under this rule shall be the first year of continuous full-time Ohio service following termination of the service to be purchased. (8) No more than one year of service credit may be granted for any twelve-month period. (B) The following types of service may be purchased under this rule: (1) Employment in a public or private school, college or university, located in or out of Ohio and service in any school operated by or for the United States government, provided any such school, college or university is recognized by an accrediting association approved by: (a) The U.S. office of education; (b) The appropriate state department of education; or (c) The appropriate state department of higher education, and acceptable to the retirement board. (2) Employment with a public governmental entity of a state or of the United States government which would have been covered by the school employees retirement system, state teachers retirement system, Ohio police and fire pension fund, state highway patrol retirement system, or the public employees retirement system, if served in a comparable position in Ohio; and (3) Except as provided in division (C) of section 3309.31 of the Revised Code, service for which contributions were made to a municipal retirement system in Ohio. (C) For purposes of section 3309.31 of the Revised Code and this rule, "Ohio contributing service" and "Ohio service" means contributing service in this retirement system. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-30 | Eligibility for retirement.
(A) For purposes of division (A) of section 3309.34 of the Revised Code and this rule: (1) "Total service credit" means all service credit earned in the public employees retirement system, state teachers retirement system, or school employees retirement system, except credit for service subject to section 3309.341 of the Revised Code. Total service credit shall not exceed one year of credit for any twelve-month period. (2) "Buy-up" means to pay an additional voluntary contribution in an amount equal to the additional actuarial liability to the school employees retirement system of retiring under the retirement eligibility criteria contained in division (A)(1)(a) of section 3309.34 of the Revised Code. (B) (1) SERS administrative staff shall provide a cost estimate of a member's buy-up amount to any member or their designee upon request. A member who wishes to buy-up after receiving a cost estimate shall submit a written request for an actuarial cost calculation. (2) The actuarial cost calculation of the additional liability shall be performed by the school employees retirement system actuary based on factors recommended by the actuary and approved by the retirement board. The factors used in calculating the additional liability will be revised no more than once annually and shall apply only to payments made after such revision is approved by the school employees retirement board. (a) SERS will send notice of the actuarial cost calculation to the member upon receipt from the actuary. (b) The buy-up payment shall be made in a lump sum payment and shall be received by SERS within ninety days following the date of the notice or by August 1, 2017, whichever is earlier. If SERS does not receive the payment within ninety days of the notice, a new cost calculation is required. (c) Members can request no more than four actuarial cost calculations in any calendar year. (3) The amount of any buy-up payment cannot exceed the limitations set forth in Internal Revenue Code section 415. If the cost of the additional liability exceeds the limitations set forth in the Internal Revenue Code, the member is not eligible to retire under division (A)(1)(a) of section 3309.34 of the Revised Code. (4) Buy-up payments shall be treated as part of a member's accumulated contributions as defined in division (J) of section 3309.01 of the Revised Code. Contributions paid by a member pursuant to this rule shall be credited to the employees' savings fund. (C) Except as provided in division (A)(1)(c) of section 3309.34 of the Revised Code, to retire under division (A)(1)(a)(i) of section 3309.34 of the Revised Code, a member must meet the following requirements: (1) Have at least five years of total service credit and have attained at least sixty years of age before August 1, 2017; (2) File with the retirement board a proper and complete application for retirement before August 1, 2017; and (3) Have a retirement effective date that is no later than August 1, 2017. (D) For purposes of division (A)(1)(b) of section 3309.34 of the Revised Code: (1) Periods of compulsory service that occurred before August 1, 2017 for which the employer did not deduct and transmit contributions and for which SERS receives required contributions and interest after August 1, 2017 pursuant to section 3309.47 of the Revised Code, shall be credited to the member's account effective the dates of the service. (2) A period of reinstatement with back wages that preceded August 1, 2017 and for which SERS receives required contributions after August 1, 2017, shall be credited to the member's account effective as of the dates of the reinstatement period identified under the final order or final settlement awarding back wages. (E) For purposes of division (B)(1) of section 3309.34 of the Revised Code, "last day of employment" refers to the last day of covered employment after a completed application is filed with the retirement system. Last updated May 2, 2022 at 9:13 AM Supplemental Information |
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Rule 3309-1-31 | Adjusting retirement eligibility requirements.
(A) This rule applies only to members who retire under division (A)(2)(a) of section 3309.34 of the Revised Code. (B) For each quinquennial actuarial review conducted under division (B) of section 3309.21 of the Revised Code, the school employees retirement board shall direct its actuary to evaluate the retirement eligibility requirements in division (A)(2)(a) of section 3309.34 of the Revised Code. (1) If the actuary determines that an adjustment to the retirement eligibility criteria is necessary to ensure that the retirement system meets the thirty-year amortization period requirement of section 3309.211 of the Revised Code, the retirement board shall direct its administrative staff to develop recommendations for changes to the retirement eligibility criteria consistent with the actuarial determination. (2) The recommendations developed under paragraph (B)(1) of this rule shall be submitted to the retirement board at a regularly scheduled board meeting. The retirement board shall take no formal action on the recommendations at the meeting the recommendations are first presented. (3) No sooner than thirty days after the recommendations are presented to the retirement board, the retirement board shall schedule at least one special meeting, held in accordance with section 121.22 of the Revised Code, for the purpose of receiving public comments on the recommendations. (4) The retirement board shall modify the retirement eligibility criteria only after considering the recommendations and any public comments. (C) Any modifications to the retirement eligibility requirements made pursuant to this rule will go into effect no earlier than two years after the effective date of the administrative rule adopted under division (D) of section 3309.34 of the Revised Code. Last updated October 25, 2023 at 2:16 PM Supplemental Information |
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Rule 3309-1-32 | Cost-of-living; base allowance change.
(A) For purposes of this rule: (1) "Base allowance" means the benefit amount due a benefit recipient on the later of July 1, 1979 or the effective date of such benefit, as adjusted pursuant to this rule. A base allowance excludes subsequent allowances for cost-of-living pursuant to section 3309.374 of the Revised Code, reimbursements for medicare part "B" pursuant to section 3309.69 of the Revised Code, or additional annuity payments pursuant to section 3309.47 of the Revised Code. (2) "Benefit" means a periodic payment under an allowance, pension, or benefit granted under Chapter 3309. of the Revised Code, other than an annuity paid under section 3309.341 of the Revised Code. (3) "Benefit amount" means the amount due a benefit recipient on the effective date of such benefit. (4) "Benefit recipient" means an age and service retirant, disability benefit recipient, or a beneficiary as defined in section 3309.01 of the Revised Code, who is receiving monthly benefits due to the death of a member, age and service retirant or disability benefit recipient. (5) "CPI-W" means the consumer price index for urban wage earners and clerical workers, not seasonally adjusted, U.S. city average, "All items 1982-84=100." (B) A base allowance upon which a cost-of-living is calculated shall be adjusted when any of the following occur: (1) The enactment of any statutory ad hoc allowance increase but only if such statutory authority provides that such increase become part of the base allowance. (2) Recalculation of a retirant's benefit due to a change in a plan of payment as permitted in section 3309.46 of the Revised Code. (3) Recalculation of a benefit recipient's benefit amount after an audit. (4) If a benefit recipient waives any portion of a benefit amount pursuant to section 3309.662 of the Revised Code, the base allowance shall be the portion being paid. If a waiver is revoked, the base allowance shall be the amount allowed under this rule. (C) For purposes of this rule and section 3309.374 of the Revised Code, the percentage increase in the CPI-W shall be determined by calculating the percentage change between the CPI-W for June of the immediately preceding calendar year and the CPI-W for June of the next preceding calendar year. (D) (1) The recipient of any allowance, pension, or benefit that was effective before April 1, 2018 shall be eligible to receive an increase under section 3309.374 of the Revised Code upon receiving an allowance, pension, or benefit for twelve months. (2) (a) The recipient of any allowance, pension, or benefit that becomes effective on or after April 1, 2018 shall be eligible to receive an increase under section 3309.374 of the Revised Code upon attainment of the fourth anniversary of the allowance, pension, or benefit. (b) For purposes of paragraph (D)(2)(a) of this rule, a recipient shall be credited with anniversaries for any previous allowance, pension, or benefit attributable to the same member account in the retirement system that occurred on or after January 1, 2018. Last updated February 21, 2024 at 11:39 AM Supplemental Information |
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Rule 3309-1-33 | Retirement and benefit effective dates.
(A) For purposes of this rule, "retirement allowance" refers to a monthly retirement allowance, including an "estimated retirement allowance" as defined in paragraph (A) of rule 3309-1-21 of the Administrative Code, as well as a lump sum payment made under a plan described in division (B)(4) of section 3309.46 of the Revised Code. (B) (1) (a) The effective date of a service retirement under sections 3309.34, 3309.35, 3309.36, and 3309.46 of the Revised Code shall be as follows: The first of the month following the last date of compensated service, the first of the month following the date that age and service credit eligibility is met, the first of the month after all purchases of service credit are completed, or at the date requested by the applicant in writing at retirement, whichever is later. (b) The effective date of a service retirement under section 3309.343 of the Revised Code shall be as follows: The first of the month following the last date of compensated service for the position from which the member is retiring, the first of the month following the date that age and service credit eligibility is met, the first of the month after all purchases of service credit are completed, or at the date requested by the applicant in writing at retirement, whichever is later. (c) Notwithstanding any other provision of this rule to the contrary, the effective date of a service retirement under this rule of a member who is an other system retirant as defined in division (A)(2) of section 3309.341 of the Revised Code shall not be sooner than the effective date of retirement in the other system. (2) The effective date of reemployment, conversion retirement, disability, and survivor benefits shall be the date as provided by section 3309.344, 3309.381, 3309.39, 3309.40, 3309.401, or 3309.45 of the Revised Code. (C) A member, a beneficiary eligible for benefits pursuant to section 3309.45 of the Revised Code, or a SERS retirant or other system retirant as defined in section 3309.341 of the Revised Code, may withdraw an application for a retirement allowance, survivor benefit or annuity by delivering to the retirement system a signed written request over the applicant's signature and as follows: (1) If the payment was made by check, by returning to the retirement system the warrant uncashed no later than thirty days after issuance of the check. (2) If the payment was transmitted by direct deposit to the member, beneficiary, or retirant's financial institution(s), by remitting to the retirement system a personal check or money order repaying all payments transmitted no later than thirty days after the institution's receipt of the payment. (3) If any portion of a payment was delivered as a direct rollover pursuant to rule 3309-1-53 of the Administrative Code, the retirement plan that received the distribution must return to the retirement system the amount transferred not later than sixty days after the transfer. (4) If any portion of a payment was paid to satisfy a court order or was otherwise deducted as required by law, the application may not be withdrawn as provided in this rule. (D) The retirement laws in effect on the benefit effective dates shall determine the amount and eligibility for a retirement allowance, survivor benefit, or annuity. (E) The annuity and option tables as adopted by the board and in effect shall be used to determine reserve liability and retirement allowance, survivor benefit payments and annuity. Last updated February 21, 2024 at 11:40 AM Supplemental Information |
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Rule 3309-1-34 | Combined disability benefits.
(A) This rule amplifies section 3309.35 of the Revised Code. (B) As used in this rule: "Last date of service" means last day of compensated service, either for a day worked or used paid leave, under the school employees retirement system, public employees retirement system, or state teachers retirement system, whichever is latest. (C) If this system is the paying system and a member of school employees retirement system files an application for a disability benefit pursuant to section 3309.39 of the Revised Code and also chooses to apply for a combined disability benefit with the public employees retirement system or the state teachers retirement system, the following shall apply: (1) This system shall request and pay for the examining physician(s) report(s). (2) Disability shall be determined on the basis of the member's ability to perform the duties for the position held on the member's last date of service. If the member's last date of service is concurrent under two or more systems, disability for performance of duty shall be determined on the basis of the duties for the position with the greater annual compensation or earnable salary at the time of the application. (3) If a disability benefit is granted, this system shall notify the other retirement system(s) of the decision and the member's intent to combine. (D) If this system is the paying system of a combined disability, this system's rules and statutes shall govern the disability benefits, and this system will be responsible for subsequent medical examinations. Last updated February 21, 2024 at 11:43 AM Supplemental Information |
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Rule 3309-1-35 | Health care.
(A) Definitions As used in this rule: (1) "Benefit recipient" means an age and service retirant, disability benefit recipient, or a beneficiary as defined in section 3309.01 of the Revised Code, who is receiving monthly benefits due to the death of a member, age and service retirant or disability benefit recipient. (2) "Member" has the same meaning as in section 3309.01 of the Revised Code. (3) "Age and service retirant" means a former member who is receiving a retirement allowance pursuant to section 3309.34, 3309.35, 3309.36 or 3309.381 of the Revised Code. A former member with an effective retirement date after June 13, 1986 must have accrued ten years of service credit, exclusive of credit obtained after January 29, 1981 pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code. (4) "Disability benefit recipient" means a member who is receiving a benefit or allowance pursuant to section 3309.35, 3309.39, 3309.40 or 3309.401 of the Revised Code. (5) "Dependent" means an individual who is either of the following: (a) A spouse of an age and service retirant, disability benefit recipient, or member, (b) A biological, adopted or step-child of an age and service retirant, disability benefit recipient, member, deceased age and service retirant, deceased disability benefit recipient, or deceased member or other child in a parent-child relationship in which the age and service retirant, disability benefit recipient, member, deceased age and service retirant, deceased disability benefit recipient, or deceased member has or had custody of the child, so long as the child: (i) Is under age twenty-six, or (ii) Regardless of age is permanently and totally disabled, provided that the disability existed prior to the age and service retirant's, disability benefit recipient's, or member's death and prior to the child reaching age twenty-six. For purposes of this paragraph "permanently and totally disabled" means the individual is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death, or which has lasted or can be expected to last for a continuous period of not less than twelve months. (6) "Health care coverage" means any of the following group plans offered by the system: (a) A medical and prescription drug plan; (b) Limited wraparound coverage, which provides limited benefits that wrap around an individual health insurance plan; or (c) An excepted benefit health reimbursement arrangement, which provides reimbursement of medical expenses incurred under an individual health insurance plan. (7) "Premium" means a monthly amount that may be required to be paid by a benefit recipient to continue enrollment for health care coverage for the recipient or the recipient's eligible dependents. (8) "Employer" and "public employer" have the same meaning as in section 3309.01 of the Revised Code. (9) "Marketplace counselor" means an individual licensed to determine eligibility for, and enroll individuals in, a marketplace plan. (10) "Marketplace plan" means an individual health plan available through either a state or federal health insurance marketplace. (B) Eligibility (1) A person is eligible for health care coverage under the school employees retirement system's health care plan so long as the person qualifies as one of the following: (a) An age and service retirant or the retirant's dependent, (b) A disability benefit recipient or the recipient's dependent, (c) The dependent of a deceased member, deceased age and service retirant, or deceased disability benefit recipient, if the dependent is receiving a benefit pursuant to section 3309.45 or 3309.46 of the Revised Code, (d) The dependent child of a deceased member, deceased disability benefit recipient, or deceased age and service retirant if the spouse is receiving a benefit pursuant to section 3309.45 or 3309.46 of the Revised Code and the spouse elects to be covered. (2) Eligibility for SERS health care coverage shall terminate when the person ceases to qualify as one of the persons listed in paragraph (B)(1) of this rule, except that a dependent described in paragraph (A)(5)(b)(i) of this rule shall cease to qualify on the first day of the calendar year following the dependent's twenty-sixth birthday. (3) Except for a dependent described in paragraph (A)(5)(b) of this rule, eligibility for SERS health care coverage shall terminate when the person is not enrolled in medicare part B and on or after January 1, 2016 commences employment that provides access to a medical plan with prescription coverage through the employer, or if employees of that employer in comparable positions have access to a medical plan available through the employer, provided the medical plan with prescription drug coverage available through the employer is equivalent to the medical plan with prescription coverage at the cost available to fulltime employees as defined by the employer. For purposes of this paragraph, employer means a public or private employer. (4) On or after January 1, 2021, eligibility for SERS health care coverage shall terminate when a person listed in paragraph (B)(1) of this rule becomes eligible for medicaid and is ineligible for medicare. For purposes of this rule, a benefit recipient and their dependent(s) shall be presumed to be eligible for medicaid if their gross monthly SERS benefit is less than the percentage of the federal poverty level used by the Ohio department of medicaid to determine medicaid eligibility under agency 5160 and division 5160:1 of the Administrative Code. Upon request, a benefit recipient presumed to be eligible for medicaid must provide SERS with satisfactory proof of ineligibility for medicaid in their state of residence within ninety days from the date of SERS' request. (5) Eligibility for SERS health care coverage shall terminate when a person eligible for medicare part B fails to: (a) Enroll in medicare part B during the person's initial enrollment period or special enrollment period under 42 U.S.C. 1395p that includes a date on or after January 1, 2019. If the failure to enroll occurred on or after January 1, 2019 and prior to January 1, 2022, the person must enroll in medicare part B during the general enrollment period ending March 31, 2022; or (b) Enroll in medicare part B during the general enrollment period available under 42 U.S.C. 1395p immediately following a loss of medicare part B coverage that began on or after January 1, 2019. If the loss of medicare part B coverage began on or after January 1, 2019 and prior to January 1, 2022, the person must enroll in medicare part B during the general enrollment period ending March 31, 2022. (6) Eligibility for SERS health care coverage shall terminate when a benefit recipient who is not eligible for medicare, and whose initial SERS health care eligibility date or reinstatement to SERS health care coverage under paragraph (I) of this rule is on or after June 1, 2023, fails to complete counseling with a SERS approved marketplace counselor to review marketplace plan options. (a) A benefit recipient whose initial SERS health care eligibility date is on or after June 1, 2023 shall complete counseling before the later of the following: (i) December thirty-first of the calendar year of initial health care eligibility; or (ii) Within three months of initial health care eligibility. (b) A benefit recipient requesting reinstatement to SERS health care coverage under paragraph (I) of this rule on or after June 1, 2023 shall complete counseling before the later of the following: (i) December thirty-first of the calendar year of the qualifying event entitling the benefit recipient to reinstatement; or (ii) Within three months of the request for reinstatement. (c) The benefit recipient shall provide the marketplace counselor with all information required to determine the cost of available marketplace plans. The marketplace counselor shall notify SERS when such counseling has been completed. (d) A benefit recipient who fails to complete counseling in accordance with this rule shall be deemed to have waived SERS health care coverage until the individual becomes eligible for reinstatement as permitted under paragraph (I) of this rule. (e) Counseling shall not be required if the marketplace counselor is unable to determine available marketplace plans based on the benefit recipient's address or other demographic information. The marketplace counselor will notify SERS when a marketplace plan cannot be determined based on the circumstances. (C) Enrollment (1) Except as otherwise provided in this rule, an eligible benefit recipient may enroll in school employees retirement system's health care coverage only at the time the benefit recipient applies for an age and service retirement, disability benefit, or monthly benefits pursuant to section 3309.45 of the Revised Code. (2) An eligible spouse of an age and service retirant or disability benefit recipient may only be enrolled in the system's health care coverage at the following times: (a) At the time the retirant or disability benefit recipient enrolls in school employees retirement system's health care coverage. (b) Within thirty-one days of the eligible spouse's: (i) Marriage to the retirant or disability benefit recipient; or (ii) Involuntary termination of health care coverage under another plan, including a medicare advantage plan, or medicare part D plan. (c) Within ninety days of becoming eligible for medicare. (3) An eligible dependent child of an age and service retirant, disability benefit recipient, or deceased member may be enrolled in the system's health care coverage at the following times: (a) At the time the retirant, disability benefit recipient, or surviving spouse enrolls in school employees retirement system's health care coverage. (b) Within thirty-one days of the eligible dependent child's: (i) Birth, adoption, or custody order; or (ii) Involuntary termination of health care coverage under another plan, including a medicare advantage plan, or medicare part D plan. (c) Within ninety days of becoming eligible for medicare. (D) Cancellation of health care coverage (1) Health care coverage of a person shall be cancelled when: (a) The person's eligibility terminates as provided in paragraph (B)(2) of this rule; (b) The person's eligibility terminates as provided in paragraph (B)(3) of this rule; (c) The person's eligibility terminates as provided in paragraph (B)(4) of this rule; (d) The person's eligibility terminates as provided in paragraph (B)(5) of this rule; (e) The person's health care coverage is cancelled for default as provided in paragraph (F) of this rule; (f) The person's health care coverage is waived as provided in paragraph (G) of this rule; (g) The person's health care coverage is cancelled due to the person's enrollment in a medicare advantage plan or medicare part D plan as provided in paragraph (H) of this rule; (h) The health care coverage of a dependent is cancelled when the health care coverage of a benefit recipient is cancelled; or (i) The person's benefit payments are suspended for failure to submit documentation required to establish continued benefit eligibility under division (B)(2)(b)(i) of section 3309.45 of the Revised Code, division (F) of section 3309.39 of the Revised Code, division (D) of section 3309.41 of the Revised Code, or division (D) of section 3309.392 of the Revised Code. (E) Effective date of coverage (1) Except as provided in paragraph (E)(2) of this rule, the effective date of health care coverage for persons eligible for health care coverage as set forth in paragraph (B) of this rule shall be as follows: (a) For a disability benefit recipient or dependent of a disability benefit recipient, health care coverage shall be effective on the first of the month following the determination and recommendation of disability to the retirement board or on the benefit effective date, whichever is later. (b) For an age and service retirant or dependent of an age and service retirant, health care coverage shall be effective on the first of the month following the date that the retirement application is filed with the retirement system or on the benefit effective date, whichever is later. (c) For an eligible dependent of a deceased member, deceased disability benefit recipient, or deceased age and service retirant, health care coverage shall be effective on the effective date of the benefit if the appropriate application is received within three months of the date of the member's or retirant's death, or the first of the month following the date that the appropriate application is received if not received within three months of the date of the member's or retirant's death. (2) The effective date of coverage for a person described in paragraph (B)(6) of this rule shall be the later of the following: (a) The date provided under paragraph (E)(1) of this rule; or (b) The first of the month following completion of counseling. A benefit recipient may elect to defer SERS health care coverage until their first available marketplace plan effective date. (F) Premiums (1) Payment of premiums for health care coverage shall be by deduction from the benefit recipient's monthly benefit. If the full amount of the monthly premium cannot be deducted from the benefit recipient's monthly benefit, the benefit recipient shall be billed for the portion of the monthly premium due after any deduction from the monthly benefit. (2) Premium payments billed to a benefit recipient shall be deemed in default after the unpaid premiums for coverage under this rule and supplemental health care coverage under rule 3309-1-64 of the Administrative Code reach a total cumulative amount of at least three months of billed premiums. The retirement system shall send written notice to the benefit recipient that payments are in default and that coverage will be cancelled on the first day of the month after the date of the notice unless payment for the total amount in default is received prior to the date specified in the notice. If coverage is cancelled due to a recipient's failure to pay premium amounts in default, the recipient shall remain liable for such amounts due for the period prior to cancellation of coverage. (3) After cancellation for default, health care coverage can be reinstated as provided in paragraph (I) of this rule, or upon submission of an application for reinstatement supported by medical evidence acceptable to SERS that demonstrates that the default was caused by the benefit recipient's physical or mental incapacity. "Medical evidence" means documentation provided by a licensed physician of the existence of the mental or physical incapacity causing the default. Health care coverage reinstated after termination for default shall be effective on the first of the month following the date that the application for reinstatement is approved and payment for the total amount in default is received. (4) A person enrolled in SERS' health care plan cannot receive a premium subsidy unless that person is: (a) A dependent child. (b) An age and service retirant who: (i) Has an effective retirement date before August 1, 1989; or (ii) Has an effective retirement date on or after August 1, 1989 and before August 1, 2008 who had earned fifteen years of service credit; or (iii) Has an effective retirement date on or after August 1, 2008 who had earned twenty years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code, and who; (a) Was eligible to participate in the health care plan of his or her employer at the time of retirement or separation from SERS service; or (b) Was eligible to participate in the health care plan of his or her employer at least three of the last five years of service preceding retirement or separation from SERS service. (c) A disability benefit recipient, except as provided in paragraph (F)(4)(d) of this rule who: (i) Has an effective benefit date before August 1, 2008; or (ii) Has an effective benefit date on or after August 1, 2008 who: (a) Was eligible to participate in the health care plan of his or her employer at the time of separation from SERS service; or (b) Was eligible to participate in the health care plan of his or her employer at least three of the last five years of service preceding separation from SERS service. (d) A disability benefit recipient who is not enrolled in medicare part B on or after January 1. 2024, who: (i) Has an effective benefit date before August 1, 1989; or (ii) Has an effective benefit date on or after August 1, 1989 and before August 1, 2008 who had earned fifteen years of service credit; or (iii) Has an effective benefit date on or after August 1, 2008 who had earned twenty years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code, and who; (a) Was eligible to participate in the health care plan of his or her employer at the time of separation from SERS service; or (b) Was eligible to participate in the health care plan of his or her employer at least three of the last five years of service preceding separation from SERS service. (e) A spouse: (i) A spouse or surviving spouse of an age and service retirant or disability benefit recipient with an effective retirement date or benefit date before August 1, 2008 who had earned twenty-five years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code; (ii) A spouse or surviving spouse of an age and service retirant or disability benefit recipient with an effective retirement date or benefit date on or after August 1, 2008 who had earned twenty-five years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code, and who: (a) Was eligible to participate in the health care plan of his or her employer at the time of retirement or separation from SERS service; or (b) Was eligible to participate in the health care plan of his or her employer at least three of the last five years of service preceding retirement or separation from SERS service. (iii) A surviving spouse of a deceased member who had earned twenty-five years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code, with an effective benefit date before August 1, 2008; or (iv) A surviving spouse of a deceased member who had earned twenty-five years of service credit, exclusive of credit obtained after January 29, 1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised Code, with an effective benefit date on or after August 1, 2008, and the member; (a) Was eligible to participate in the health care plan of his or her employer at the time of death or separation from SERS service; or (b) Was eligible to participate in the health care plan of his or her employer at least three of the last five years of service preceding the member's death or separation from SERS service. (f) For purposes of determining eligibility for a subsidy under paragraph (F)(4) of this rule, when the last contributing service of an age and service retirant, disability benefit recipient, or member was as an employee as defined by division (B)(2) of section 3309.01 of the Revised Code, the health care plan participation requirement shall be if the individual would have been eligible for the public employer's health care plan if the individual were an employee as defined by division (B)(1) of section 3309.01 of the Revised Code. (g) Any other individual covered under a SERS health care plan shall be eligible for a premium subsidy under the standard set forth for spouses. (h) In all cases of doubt, the retirement board shall determine whether a person enrolled in a SERS health care plan is eligible for a premium subsidy, and its decision shall be final. (G) Waiver (1) A benefit recipient may waive health care coverage by completing and submitting a SERS waiver form to SERS. (2) The health care coverage of a benefit recipient's dependent may be waived as follows: (a) For non-medicare eligible dependents, the benefit recipient may waive their coverage by completing and submitting a signed written request to SERS on their behalf. (b) For medicare eligible dependents, the dependent may waive their coverage by completing and submitting a signed written request to SERS. (H) Medicare advantage or medicare part D SERS shall cancel the health care coverage of a benefit recipient or dependent who enrolls in a medicare advantage or medicare part D plan that is not offered by the system. (I) Reinstatement to SERS health care coverage (1) An eligible benefit recipient, or dependent of a benefit recipient with health care coverage, whose coverage has been previously waived or cancelled may be reinstated to SERS health care coverage by filing a health care enrollment application as follows: (a) The application is received no later than ninety days after becoming eligible for medicare. Health care coverage shall be effective the later of the first day of the month after becoming medicare eligible or receipt of the enrollment application by the system; (b) The application is received no later than thirty-one days after involuntary termination of coverage under medicaid. Health care coverage shall be effective the later of the first day of the month after termination of coverage or receipt of proof of termination and the enrollment application by the system; or (c) The application is received no later than thirty-one days after involuntary termination of coverage under another plan, medicare advantage plan, or medicare part D plan with proof of such termination. Health care coverage shall be effective the later of the first day of the month after termination of the other plan or receipt of proof of termination and the enrollment application by the system. (2) An eligible person whose coverage was cancelled pursuant to paragraph (D)(1)(h) of this rule shall be reinstated to SERS health care plan when benefit payments are reinstated. (3) An eligible person whose coverage was cancelled pursuant to paragraph (D)(1)(b) of this rule may be reinstated to SERS health care plan when they no longer have access to the medical plan of an employer by filing a health care enrollment application within thirty-one days of the employment ending. (4) An eligible benefit recipient or dependent of a benefit recipient with health care coverage, whose coverage has been previously cancelled and who is enrolled in medicare parts A and B or medicare part B only on December 31, 2007 may be reinstated to SERS health care coverage by filing a healthcare enrollment application during the period of time beginning October 1, 2007 and ending November 30, 2007. Health care coverage shall be effective January 1, 2008. (5) An eligible benefit recipient or dependent of a benefit recipient with health care coverage, whose coverage has been previously cancelled pursuant to paragraph (H) of this rule and who is enrolled in medicare parts A and B or medicare part B only on June 30, 2009 may be reinstated to SERS health care coverage by filing a health care enrollment application during the period of time beginning May 21, 2009 and ending July 15, 2009. (6) An eligible benefit recipient who had an effective retirement or benefit date on or after August 1, 2008, who qualifies for a premium subsidy under paragraph (F)(4) of this rule, and whose coverage has previously been waived as provided in paragraph (G) of this rule, may be reinstated to school employees retirement system health care coverage by submitting a complete health care enrollment application on or before December 14, 2012. Health care coverage shall be effective January 1, 2013. (7) An eligible benefit recipient for whom SERS is transferring funds to another Ohio retirement system in accordance with paragraph (G) of rule 3309-1-55 of the Administrative Code may be reinstated to SERS health care coverage by submitting a health care enrollment application during open enrollment periods for health care coverage starting January 1, 2015 or January 1, 2016. (J) Medicare part B (1) A person who is enrolled in SERS' health care shall enroll in medicare part B at the person's first eligibility date for medicare part B. A person who fails to enroll in or maintain medicare part B coverage shall be ineligible for SERS health care coverage in accordance with paragraph (B)(5) of this rule. (2) (a) The board shall determine the monthly amount paid to reimburse an eligible benefit recipient for medicare part B coverage. The amount paid shall be no less than forty-five dollars and fifty cents, except that the board shall make no payment that exceeds the amount paid by the recipient for the coverage. (b) As used in paragraph (J) of this rule, an "eligible benefit recipient" means: (i) An eligible person who was a benefit recipient and was eligible for medicare part B coverage before January 7, 2013, or (ii) An eligible person who is a benefit recipient, is eligible for medicare part B coverage, and is enrolled in SERS' health care. (3) The effective date of the medicare part B reimbursement to be paid by the board shall be as follows: (a) For eligible benefit recipients who were a benefit recipient and were eligible for medicare B coverage before January 7, 2013 the later of: (i) January 1, 1977; or (ii) The first of the month following the date that the school employees retirement system received satisfactory proof of coverage. (b) For eligible benefit recipients not covered under paragraph (J)(3)(a) of this rule, the later of: (i) The first month following the date that the school employees retirement system received satisfactory proof of coverage, or (ii) The effective date of SERS health care. (4) The board shall not: (a) Pay more than one monthly medicare part B reimbursement when a benefit recipient is receiving more than one monthly benefit from this system; nor (b) Pay a medicare part B reimbursement to a benefit recipient who is eligible for reimbursement from any other source. Last updated September 30, 2024 at 3:13 PM Supplemental Information |
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Rule 3309-1-36 | Restoration of cancelled SERS service credit.
(A) For purposes of section 3309.26 of the Revised Code and this rule: (1) "Contributing service credit" means contributing service credit in this system, the public employees retirement system, the state teachers retirement system, the Ohio police and fire pension fund, or the state highway patrol retirement system. (2) "Eligible member" means a member of this system who has cancelled service in this system and who has earned at least one and one-half years of contributing service credit subsequent to the withdrawal of contributions and cancellation of service credit in this system. (3) "Eligible former member" means a former member of this system who has cancelled service in this system, who has earned at least one and one-half years of contributing service credit subsequent to the withdrawal of contributions and cancellation of service credit in this system, and who is not eligible to buy the cancelled service as a member of the Ohio police and fire pension fund, the state highway patrol retirement system, or the city of Cincinnati retirement system. (B) Eligible members and eligible former members may restore all or a portion of cancelled service credit in this system by paying to the system the amount withdrawn plus interest compounded annually. (C) Compound interest shall accrue from the first of the month of withdrawal through the month of repayment. (D) Cancelled service credit may be restored in increments of one month. (E) Service credit restored under this rule shall receive .125 per cent of a year service credit per month of service rendered prior to July 1, 1955, and .111 per cent of a year service credit per month of service rendered after June 30, 1955 and before July 1, 1977. Service performed after June 30, 1977 shall be determined by dividing the number of days paid by one hundred eighty, if the employee worked less than one hundred twenty days in the partial year to be restored. All other service restored under this rule shall receive .083 per cent of a year service credit per month of service rendered. Last updated October 25, 2023 at 2:17 PM Supplemental Information |
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Rule 3309-1-37 | Surviving spouse or dependent may purchase credit.
(A) For purposes of section 3309.451 of the Revised Code and this rule, "dependent" means a "qualified child" or "qualified parent" as those terms are defined in division (B)(2) of section 3309.45 of the Revised Code. (B) (1) A spouse or dependent of a deceased member who wants to purchase service credit pursuant to section 3309.451 of the Revised Code must deliver a written request to purchase service to the school employees retirement system before they receive payment of a benefit under section 3309.44 or 3309.45 of the Revised Code. (2) Eligibility shall be determined upon receipt of a written request. (3) Service credit shall be purchased in accordance with the laws and policies of the retirement system in effect at the time of purchase. (4) Benefit payments shall commence on the first of the month following the date the purchase of service credit is completed. (C) Service credit purchased under section 3309.451 of the Revised Code shall be included in the member's total service credit as of the member's date of death. (D) The commencement of benefit payments to a spouse or dependent not subject to paragraph (B) of this rule shall not be delayed due to a request to purchase service. Supplemental Information |
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Rule 3309-1-38 | Interest rate.
Except as otherwise provided in Chapter 3309. of the Revised Code or SERS rules, the rate of compound interest for the purchase or restoration of service credit under Chapter 3309. of the Revised Code or SERS rules shall be the rate guaranteed by the retirement board at time of purchase, as recommended by the actuary, and such rate of compound interest shall be applied to the entire period purchased or restored. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-39 | Purchase of police and fire and highway patrol service.
(A) A member may purchase all or a portion of service credit for Ohio police and fire service and Ohio highway patrol service as provided in section 3309.73 or 3309.731 of the Revised Code. (B) A member is not eligible to purchase or obtain credit if being paid, or eligible to be paid, a benefit based on the service in another pension plan. (C) Service purchased under section 3309.73 or 3309.731 of the Revised Code shall be properly certified by an official of the Ohio police and fire pension fund, or the state highway patrol retirement system, or the official employer or custodian of records, on a form furnished by the retirement board. (D) Service credit may be purchased in increments of one month. (E) Interest shall be calculated as provided in section 3309.73 or 3309.731 of the Revised Code. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-40 | Application and procedures for receiving
disability benefits.
(A) For purposes of sections 3309.39, 3309.40, 3309.401 and 3309.41 of the Revised Code and SERS rules: (1) "Disability" or "disabled" means that the member meets the following applicable standard of disability: (a) At the time of application: A disabling condition, either permanent or presumed to be permanent for twelve continuous months following the filing of an application, which has occurred or increased since the applicant last became a member and which renders the member mentally or physically incapacitated for the performance of the member's last assigned primary duty as an employee. (b) At the time of annual examination: (i) For a disability benefit recipient with a benefit effective date before January 7, 2013 and for a disability benefit recipient with a benefit effective date on or after January 7, 2013 who is on leave of absence, a disabling condition that renders the member mentally or physically incapable of resuming the service from which the member was found disabled. (ii) For a disability benefit recipient with a benefit effective date on or after January 7, 2013 who is not on leave of absence, a disabling condition that renders the member mentally or physically incapable of performing the duties of any occupation. (2) "Ongoing disability" means: (a) For a disability benefit recipient with a benefit effective date before January 7, 2013, a disability for which medical treatment presently offers no reasonable expectation of improvement to the extent that a member may be found mentally and physically capable of resuming employment that is the same or similar to that from which the member was found disabled. (b) For a disability benefit recipient with a benefit effective date on or after January 7, 2013, a disability for which medical treatment presently offers no reasonable expectation of improvement to the extent that a member may be found mentally and physically capable of employment in any occupation. (3) "Medical treatment" means treatment of common medical acceptance that is readily available, would be covered under the system's health care plan and may include but is not limited to, medicine, physical therapy, psychological or psychiatric services or mechanical devices, but would exclude surgery or other invasive procedures. (4) "Board physician" means the chairperson of the medical advisory committee. (5) "Examining physician(s)" means the disinterested physician(s) assigned by the system or the chairperson of the medical advisory committee to conduct medical examinations of a disability applicant or recipient to determine eligibility to obtain or continue to receive disability benefits. (6) "Any occupation" means a position that meets all of the following criteria: (a) Replaces not less than seventy-five per cent of the member's final average salary, adjusted each year by the actual average increase in the consumer price index prepared by the United States bureau of labor statistics (U.S. city average for urban wage earners and clerical workers: "All items 1982-84=100"); (b) Is reasonably to be found in the member's regional job market; (c) Is one that the member is qualified for by experience or education. (7) "Vocational rehabilitation" means tests, evaluations, and/or training whose purpose is to enable a disability benefit recipient to find employment in any occupation. (8) "Annual disability benefit" means the annuity and pension, or allowance, calculated under section 3309.40 or 3309.401 of the Revised Code at the time the member is determined to qualify for a disability benefit. (9) "Employee" includes service as a school board member or governing board member as defined in section 3309.012 of the Revised Code. (10) "Disability benefit recipient" means a member whose application for disability has been approved by the school employees retirement board. (B) (1) The school employees retirement board shall appoint a minimum of three members to the medical advisory committee who shall be physicians who demonstrate a wide range of competent medical experience, and a chairperson for the medical advisory committee who shall act as medical advisor to the board. The chairperson shall have authority and responsibility to assign competent and disinterested physicians to conduct medical examinations of disability applicants and recipients for the purpose of determining the member's eligibility to obtain and continue to receive disability benefits, to recommend and review medical treatment and/or vocational rehabilitation, to certify a disability as ongoing and to submit to the board a recommendation to accompany the report of the medical examiner and/or the medical advisory committee. (2) The board may appoint as consultants, professionals in the field of vocational rehabilitation to provide services to the board on matters of vocational rehabilitation, including to conduct evaluations and to advise and make recommendations to the medical advisory committee, the board physician, and the board. (C) The board shall be responsible for screening disability benefit applications; serving as a hearing committee for disability applicants; and determining eligibility to obtain or continue to receive disability benefits. (D) (1) In order to qualify for a disability benefit, a member shall submit an application and undergo a medical examination by the examining physician(s) as required. (a) The application shall include report(s) from the member's health care provider(s) that identify the medical bases of the application and include supportive medical evidence, a job duty form, and a job description provided by the last employer. (b) Medical examinations will only be assigned for conditions identified by a health care provider. (c) A medical examination will not be required if the board physician determines that the medical records submitted with the application clearly establish that the member is disabled. (2) For purposes of division (C) of section 3309.39 of the Revised Code: (a) A disability occurs before termination of contributing service if the underlying medical condition existed while the member was contributing to SERS; (b) A disability occurs after last becoming a member if the underlying condition did not exist or did not render the member incapacitated from working for at least twelve continuous months when the member last became a member of SERS. (E) The examining physician(s) shall make a report of the examination on a form provided by the board that sets forth the examining physician's medical opinion as to the nature of any disabilities disclosed; and (1) Any recommended medical treatment, and the period of time in which recovery may reasonably be expected with such treatment, or (2) That the disability is ongoing. (F) (1) Upon receipt of a completed application, report of the examining physician(s) as required, and any other available evidence pertaining to the application for disability, the board's medical advisory committee and/or the chairperson of the medical advisory committee shall review all such information and prepare a recommendation to the board. The recommendation shall include a description of any disability, the nature and duration of any recommended medical treatment and/or vocational rehabilitation, where applicable, or a certification from the board's physician that the disability is ongoing, and any recommended reexamination requirements. (2) If the applicant dies before the chairperson finalizes a recommendation, the application shall be automatically vacated. If the applicant dies after the chairperson has finalized a recommendation of disability, disability benefits from the effective date of disability through the month of the applicant's death shall be paid to the applicant's beneficiary. (G) The board shall determine whether the applicant is eligible for disability benefits. Notice of denial or termination of disability benefits shall be sent to the applicant by regular U.S. mail or certified mail pursuant to rule 3309-1-41 of the Administrative Code. Notice of eligibility for disability benefits shall be sent by regular U.S. mail or certified mail. (H) If the board's physician recommends medical treatment and if the board's physician or consultant recommends vocational rehabilitation, the grant of disability benefits, or continuation of disability, shall be conditioned on the applicant completing and returning a signed agreement to obtain recommended medical treatment on a form included with the notice of the conditional grant of disability benefits. Failure to return this agreement, properly completed, within sixty days of the date mailed by the system constitutes failure to meet conditions for granting the disability benefits and will result in an automatic denial of disability benefits without further action by the board, with all rights of appeal pursuant to rule 3309-1-41 of the Administrative Code. Notice of the denial will be sent to the applicant pursuant to rule 3309-1-41 of the Administrative Code. (1) A copy of the notice of a conditional grant or continuation of disability benefits shall be sent to the health care provider designated on the member's application for disability benefits as authorized to receive the applicant's disability information unless the applicant subsequently provides a signed release designating another health care provider. The applicant's health care provider shall also receive: (a) A description of the disabling condition, (b) The nature and duration of any recommended medical treatment. (2) The applicant's notice of the conditional grant or continuation of disability benefits shall inform the applicant that information regarding the nature of the disability and recommended treatment has been forwarded to the applicant's health care provider and that the applicant must contact that health care provider to review this information. The applicant shall be informed that the agreement to obtain recommended medical treatment and/or vocational rehabilitation must be properly completed and returned to the system within sixty days of the date that the system mailed the notice. Proper completion requires the signature of the health care provider indicating that the provider has communicated the disability information and recommended medical treatment to the applicant and the signature of the applicant indicating agreement to obtain the recommended medical treatment and/or vocational rehabilitation. (3) Upon the timely return of a properly completed agreement to obtain recommended medical treatment and/or rehabilitation, the system shall forward to the applicant an acknowledgment of receipt of the agreement containing the effective date of the disability benefits and annual reexamination and reporting requirements necessary to continue receiving disability benefits. (I) (1) Annual examinations required by division (B) of section 3309.41 of the Revised Code, shall be waived as follows: (a) When the board has waived the requirement indefinitely based on a certification of ongoing disability. (b) For the present year based on the board physician's determination that the current medical information clearly establishes that the disability recipient continues to be disabled. (c) If the termination standard is whether the recipient can perform any occupation, when: (i) An annual earnings statement establishes that the recipient earned 75% or more of their adjusted FAS, and, (ii) The board physician determines that current medical records do not indicate a subsequent material decline in the recipient's physical and mental condition. (2) The obligation of filing annual earnings statements and current medical information required by division (D) of section 3309.41 of the Revised Code, and the filing any other information required in this rule shall be waived as follows: (a) By the board based on a certification of ongoing disability; (b) If not previously waived, the obligation to file annual earnings statements of a disability recipient whose disability has been certified as ongoing shall automatically be waived when the benefit recipient has satisfied one of the following requirements: (i) Has received a disability benefit for twenty years, or (ii) Has attained age sixty-five. (3) The board may review any disability granted including those certified as ongoing and request other information pursuant to division (D) of section 3309.41 of the Revised Code. (4) The board or the board's physician may require a disability recipient to submit to a medical examination by an examining physician and a vocational rehabilitation evaluation by a vocational rehabilitation professional or health care professional assigned by the system. (J) In the absence of a waiver from the board, in order to continue receiving disability benefits, the recipient shall comply with the following conditions as set forth in section 3309.41 of the Revised Code: (1) Submit to an annual medical examination, (2) If required, submit to a medical examination, (3) If required, submit to a vocational rehabilitation evaluation, (4) If applicable, obtain any recommended medical treatment and submit medical reports regarding the treatment, (5) If applicable, obtain any recommended vocational rehabilitation and submit required reports regarding the rehabilitation, (6) Annually file an earnings statement, current medical information, and any other information required by the board. (K) (1) If a recipient refuses to submit to a required examination or evaluation or to file required information, the disability benefits shall be suspended until the examination or evaluation is obtained or the information is filed. (2) If, when applicable, the recipient fails to obtain recommended medical treatment and submit medical reports regarding the treatment, the disability benefits shall be suspended until the treatment is obtained and the report of the treatment submitted, or the board physician certifies that the treatment is no longer helpful or advisable. Medical treatment is no longer helpful or advisable if, after a period of time in which it would be medically reasonable to see results, the treatment has failed to produce improvement in the disability, or continuation of the treatment presents a medically significant risk of aggravation or complication of an existing disability or creation of an additional disability. (3) If, when applicable, the recipient fails to obtain required vocational rehabilitation and submit reports regarding the rehabilitation, the disability benefits shall be suspended until the rehabilitation is obtained and the report submitted, or the board physician or consultant certifies that vocational rehabilitation is no longer helpful or advisable. Vocational rehabilitation is no longer helpful or advisable if: (a) The recipient's disability renders the recipient unable to perform the duties of any position and is not expected to improve sufficiently, or (b) After a period of time in which the recipient has complied with recommended vocational rehabilitation, the recipient cannot be reasonably expected to obtain employment in any occupation. (L) If the recipient's failure to comply with any of the applicable conditions set forth in paragraph (J) of this rule continues for one year from the date of the suspension of benefits for noncompliance, the recipient's right to the disability benefits shall be terminated as of the date of the original suspension. (M) On reexamination the board's medical advisory committee and/or the board physician shall review the medical and vocational reports and certify to the board whether the recipient continues to be disabled. (1) If the medical advisory committee and/or the board physician certifies that the recipient continues to be disabled, the medical advisory committee and/or the board physician shall make recommendations regarding reexamination and, where applicable: (a) Recommend a continuation of the medical treatment and/or vocational rehabilitation previously recommended, (b) Recommend a modification in medical treatment and/or vocational rehabilitation, or (c) Certify that the disability is ongoing. (2) When the termination standard is whether the recipient can perform any occupation, a recipient may be certified for termination as follows: (a) (i) A SERS appointed vocational consultant has submitted a report that is based on findings made at the time of the review and that identifies a minimum of three positions that meet the any occupation definition and has submitted job descriptions that include a discussion of the physical and mental demands of the position; and (ii) An examining physician or the medical advisory committee concludes that the recipient is capable of meeting the physical and mental demands of a minimum of three of the positions; or (b) (i) A recipient has submitted an earnings statement that establishes annual earnings of seventy-five per cent or more of the recipient's final average salary, adjusted each year by the actual average increase in the consumer price index prepared by the United States bureau of labor statistics (U.S. city average for urban wage earners and clerical workers: "All items 1982-84=100"); and (ii) The board physician determines that recipient's current medical records establish no subsequent material decline in the recipient's physical and mental condition. (3) If the medical advisory committee and/or the board physician certifies that the recipient meets the applicable standard for termination of disability under division (C) of section 3309.41 of the Revised Code and the board concurs, the board shall: (a) Terminate the disability benefits effective as of a date not later than three months after the board's concurrence, or upon notice of employment of the recipient as an employee. (b) (i) If the leave of absence has not expired when the board votes to terminate the disability benefit, the board shall certify to the recipient and the recipient's last employer as applicable that the recipient is no longer incapable of resuming service that is the same or similar to that from which the recipient was found disabled and shall identify the scheduled termination date of the disability benefit. (ii) The employer must notify the system if the member returns to work before the scheduled termination date. If the employer fails to notify the system, the amount of benefits paid to the member after the member's return to work shall be paid from amounts allocated under Chapter 3317. of the Revised Code. (N) (1) Disability benefit recipients with a benefit effective date before January 7, 2013 shall be considered on leave of absence from employment during the first five years following the effective date of their disability benefit. (2) Disability benefit recipients with a benefit effective date on or after January 7, 2013 shall be considered on leave of absence from employment during the first three years following the effective date of their disability benefit; thereafter, their leave of absence shall terminate as follows: (a) If medical treatment and/or vocational rehabilitation is not recommended, at the end of the first three years; (b) If medical treatment and/or vocational rehabilitation is recommended, but the recipient is not participating in the recommended treatment or rehabilitation, the earlier of the last month the benefit recipient participated in recommended treatment or rehabilitation or the end of five years following the benefit effective date; (c) If medical treatment and/or vocational rehabilitation was recommended and the recipient is participating in the recommended treatment or rehabilitation, at the end of five years following the benefit effective date. (O) A disability benefit recipient is employed for purposes of division (E) of section 3309.41 of the Revised Code if they hold office as a school board member or governing board member as defined in section 3309.012 of the Revised Code, regardless of whether the disability recipient elects membership under that section. (1) Upon receipt of notice that a disability recipient holds office as a school board member or governing board member, the system shall notify the recipient that the recipient must terminate their service in order to continue to receive a disability benefit. (2) The disability recipient shall send written notice to the system within thirty days from the date on the notice sent under paragraph (O)(1) of this rule, indicating whether they will resign their office. (3) If the disability recipient affirms a continuation of service or if the recipient fails to provide notice to the system, the disability benefit shall be terminated on the date the recipient first held office as a school board member or governing board member and any overpayments shall be collected as authorized in Chapter 3309. of the Revised Code. (4) If the disability recipient affirms a termination of service, the termination shall be effective on the receipt of the notice described in paragraph (O)(1) of this rule. Any employee contributions remitted for the service shall be unauthorized and returned to the employer. (P) (1) Amounts paid by a member to purchase service credit shall be credited to the employees' savings fund. (2) Service credit for a period of disability shall be considered the equivalent of Ohio service credit. (3) Service credit granted or purchased under section 3309.41 of the Revised Code for a period of disability shall not result in the member receiving more than one year of service credit for any year as defined in division (R) of section 3309.01 of the Revised Code. Last updated May 2, 2022 at 9:14 AM Supplemental Information |
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Rule 3309-1-41 | Appeals for denial and termination of disability benefits.
(A) The following procedures will govern in cases of a member's appeal of a denial of disability benefits including an automatic denial under paragraph (H) of rule 3309-1-40 of the Administrative Code or a disability benefit recipient's appeal of a termination of disability benefits, excluding when the recommendation to terminate was certified pursuant to paragraph (M)(2)(b) of rule 3309-1-40 of the Administrative Code. (1) After formal board action is taken or an automatic denial under paragraph (H) of rule 3309-1-40 of the Administrative Code, a notice of denial or termination of disability benefits shall be issued to the applicant or former disability benefit recipient by regular or certified U.S. mail. This notice shall inform the member of: (a) The medical evidence reviewed; (b) The board's denial or termination of disability benefits; and (c) The procedures for appeal of a denial or termination of disability benefits as set forth in this paragraph. (2) (a) The member may appeal a decision to deny or terminate disability benefits, excluding a termination pursuant to paragraph (M)(2)(b) of rule 3309-1-40 of the Administrative Code, within fifteen days of the date on the notice of denial or termination by filing a notice of intent to appeal such decision and by providing additional evidence. Such additional evidence must be received by the board within ninety days from the date on the notice of denial or termination and must be submitted in writing by the member or by counsel and/or personal physician on behalf of the member. (b) If a member does not submit a notice of intent to appeal or additional evidence as required by this rule, all appeal rights shall cease and the prior decision of the board shall become final. The member shall be notified of all future rights and/or limitations to apply for disability benefits. (c) The member may request, as part of the appeal, a personal appearance before the board with counsel and/or a personal physician. The request for a personal appearance must be in writing and submitted to the board within fifteen days of the date on the notice of denial or termination. A personal appearance will not be granted unless additional evidence as required by this paragraph is received by the board within ninety days from the date on the notice of denial or termination. If a personal appearance is granted, the member will be notified in writing of the date and time. (d) (i) For appeals whose standard is whether the member is physically and mentally capable of performing the member's last assigned primary duty as an employee, "additional evidence" means evidence that is current and pertinent to the illness or injury for which the disability was claimed and that has not been submitted before. (ii) For appeals whose standard is whether the member is physically and mentally capable of performing the duties of a position that meets the criteria of divisions (C)(1) to (C)(3) of section 3309.41 of the Revised Code, "additional evidence" means evidence that is current and and pertinent to the illness or injury that the member claims supports the member's inability to perform the duties of a position that meets the criteria of divisions (C)(1) to (C)(3) of section 3309.41 of the Revised Code. (e) Upon a finding that a member was hospitalized or in a nursing home or other care facility at the time notice of denial or termination was sent, the board may allow a late appeal, but in no event more than thirty days after the member's discharge from the hospital or care facility. (3) All costs incidental to the appeal and/or personal appearance shall be at the expense of the member. (4) If a personal appearance is granted, the member shall appear before the board on the date and at the time specified by the board, or as otherwise requested by the member and agreed to by the board. If the member fails to appear on the specified date and time, all rights to a personal appearance shall terminate and the appeal shall be decided on the basis of the written evidence previously submitted. (5) A personal appearance, if granted, shall be conducted as follows: (a) The member shall appear in person and may be represented by counsel, the member's agent, and/or a personal physician, if desired. The member shall provide the name, title, and position of each person appearing on the member's behalf at least seven days prior to the hearing. (b) The board shall be responsible for conducting the hearing. (c) A recording of the hearing will be made to provide the board and the medical advisory committee with a record for further review. (d) Only one such appearance per application or termination will be allowed. (6) During the appeal process, the board's physician or the medical advisory committee may request that the member undergo an additional medical examination by an examining physician. (7) Following receipt of additional evidence and a personal appearance, if applicable, all evidence and information submitted shall be reviewed by the board's medical advisory committee and/or the board's physician who shall make a recommendation to the board. (a) If the board concurs with a recommendation to grant the appeal, disability benefits will be paid from the benefit effective date, or if a recommendation for termination of disability benefits was appealed and the appeal is granted by the board, the payments will be resumed from the date of termination, and the applicant or benefit recipient will be so notified. (b) If the board concurs with a recommendation for denial of the appeal, the applicant or benefit recipient will be notified by letter of the board's decision, such decision shall be final and all appeal rights shall cease. (B) The school employees retirement system administrative staff shall have the authority to act for the board in matters related to the appeal proceedings, but shall not have authority to decide appeals. (C) Any future applications for disability benefits filed after a denial of appeal must be submitted with medical evidence supporting progression of the former illness or injury or evidence of a new illness or injury. If such evidence is evaluated by the medical advisory committee and found to be inadequate to establish the progression of the former illness or injury or the existence of a new illness or injury, the application shall be voided. Last updated September 30, 2024 at 3:13 PM Supplemental Information |
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Rule 3309-1-42 | Options; pop-up and election of new option.
(A) (1) Upon the death of a spouse or a designated beneficiary, the lesser retirement allowance calculated as plan A, C, or D under division (B)(1)(a), (B)(3)(b), (B)(3)(c) or (B)(4) of section 3309.46 of the Revised Code or as option 1 or 2 under division (A) or (B) of section 3309.46 of the Revised Code as in effect prior to amendment effective July 24, 1990 shall be increased to the single lifetime retirement allowance. (2) Upon the death of a designated beneficiary under plan F under division (B)(3)(e) of section 3309.46 of the Revised Code, the retirant shall receive the actuarial equivalent of the retirant's single lifetime retirement allowance based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. (B) (1) Upon divorce, annulment, or marriage dissolution, the lesser retirement allowance calculated as plan A, C, or D under division (B)(1)(a), (B)(3)(b), (B)(3)(c) or (B)(4) of section 3309.46 of the Revised Code or as option 1 or 2 under division (A) or (B) of section 3309.46 of the Revised Code as in effect prior to amendment effective July 24, 1990 shall, at the election of the retirant, be increased to the single lifetime retirement allowance; except that no benefit first payable on or after August 1, 1990 shall be increased without the written consent of the ex-spouse or order of the court with jurisdiction over the termination of the marriage. (2) Upon the divorce, annulment, or marriage dissolution from a designated beneficiary under plan F, the retirant may elect to receive the actuarial equivalent of the retirant's single lifetime retirement allowance based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary; except the retirant's benefit shall not be increased without the written consent of the ex-spouse or order of the court with jurisdiction over the termination of the marriage. (C) (1) Upon marriage or re-marriage, a retirant receiving a single lifetime allowance may elect to have his allowance recalculated as plan A, C, or D, designating the current spouse as beneficiary. (2) Upon remarriage, a retirant receiving a benefit pursuant to a plan of payment providing for payment to a former spouse pursuant to a court order described in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code may elect a new plan of payment adding the new spouse under division (B)(3)(e) of section 3309.46 of the Revised Code if the new plan of payment does not reduce the payment to the former spouse or to any other beneficiary designated at the time of retirement. (3) In the case of a retirant who marries or remarries on or after June 6, 2005, an election under paragraph (C) of this rule shall be received by school employees retirement system not later than one year after the marriage or remarriage. (4) A plan elected under paragraph (C) of this rule shall be calculated according to the actuarial factors in effect when such plan is elected and based on the age of the retirant and spouse at the time of selection. (D) The effective date for a change in plan and benefit shall be as follows: (1) Death of spouse - the first of the month following death of spouse or September 1, 1976, whichever is later. The retirant shall furnish proof of date of death, satisfactory to the board. (2) Death of designated beneficiary other than spouse - the first of the month following the death, or November 1, 1978, whichever is later. The retirant shall furnish proof of date of death, satisfactory to the board. (3) Divorce, annulment or marriage dissolution - the first of the month following receipt of the application for a change of plan. The application shall be accompanied by proof of divorce, annulment or marriage dissolution, and any written consent of the ex-spouse or court order as required under paragraph (B) of this rule, satisfactory to the board. (4) Marriage or re-marriage - provided all documents are received prior to the retirant's death, the effective date for the change in the plan shall be the date the system receives the application, the marriage certificate, and any required consent or consent order; the effective date for the change in benefit shall be the first of the following month. (E) The "single lifetime retirement allowance" determined under this rule shall be the original single lifetime allowance established at retirement plus any subsequent ad hoc pension increases and automatic cost-of-living increases which shall be applied to the original amounts granted. The original single lifetime allowance established at retirement shall be the portion of the allowance payable in monthly payments, if the retirant elected a plan that included a lump sum payment under division (B)(4) of section 3309.46 of the Revised Code. Last updated February 21, 2024 at 11:43 AM Supplemental Information |
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Rule 3309-1-43 | Service credit established under retirement incentive plan.
(A) Upon adoption of a "Retirement Incentive Plan" in accordance with section 3309.33 of the Revised Code, the employer shall notify the school employees retirement system on an official form approved by the school employees retirement board and attached as an appendix to this rule. (B) The cost to the employer for each year of credit purchased will be determined by factors recommended by the school employees retirement system actuary which yield an amount equal to the additional liability of the amount purchased. Actuarial cost will be revised no more than once annually and shall apply only to new credit established after such revision is approved by the school employees retirement board. (C) (1) Employers may make equal payments to the retirement system for the cost of the year or years of credit purchased over the number of years equal to the number of years purchased under the employer adopted plan. After the thirtieth of June of the year in which the service is purchased, interest, compounded annually, shall be calculated on the remaining payments at the rate established for other purchased credit. (2) Purchase of partial years is not permitted. (3) Notwithstanding paragraph (C)(1) of this rule, governing authorities of community schools shall pay the cost of the service credit purchased in one payment made within thirty days of receipt from the retirement system of the calculated cost. (D) (1) An employee may initiate action to retire under the locally adopted retirement incentive plan in accordance with section 3309.33 of the Revised Code by completing the employee section of the form adopted by the school employees retirement board, attached as an appendix to this rule, and filing such form with the employer. (2) Upon receipt of the form, the employer must complete the employer section of the form and file it with the retirement system. In no event shall the employer file the form later than the earlier of the last day of the month preceding the employee's date of retirement or the expiration date of the plan. The employer's completion of the employer portion of the form constitutes the employer's acceptance of liability for the cost of the additional service credit. The effective date of the purchase of service under a retirement incentive plan shall be the date the retirement system receives the completed form. (3) Upon receipt of the completed form, the retirement system shall notify the employee by letter that service credit has been purchased for the employee under the retirement incentive plan. The date of this letter shall constitute the date the employee received notice that service credit has been purchased for the employee. (4) The retirement system must receive the employee's valid retirement application within ninety days of the employee's receipt of notice. (5) The employee's effective date of retirement must be within ninety days of the employee's receipt of notice. (6) If an employee does not retire within ninety days of receiving notice, withdraws their application for retirement, or dies before their effective date of retirement and/or before he retirement system received a valid application, the purchase of service credit on behalf of the employee under section 3309.33 of the Revised Code shall be cancelled and any amounts received from the employer refunded. Supplemental Information |
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Rule 3309-1-44 | Purchase of service credit; pregnancy and adoption resignation.
A member who resigned due to pregnancy or adoption of a child may purchase service credit for such period(s) of resignation during which no contributions were made to the system and no service credit granted under any other section of the Revised Code in accordance with section 3309.473 of the Revised Code and this rule. (A) (1) The member must have resigned from a contributing position under Chapter 3309. of the Revised Code due to pregnancy or adoption of a child; (2) The member must have returned to a contributing position under Chapter 3309. of the Revised Code not later than the first day of classes of the third school year following the date of the resignation; and (3) The member must have earned a minimum of one year of school employees retirement system contributing service credit after the resignation. (B) (1) A member who meets the requirements of paragraph (A) of this rule shall apply to the system to purchase service credit for a period of resignation on a form provided by the system; (2) The member shall provide, with the application to purchase service credit, documentation satisfactory to the system that the resignation was due to pregnancy or adoption of a child. Such documentation may include, but is not limited to: (a) In case of resignation due to pregnancy, copies of the member's child's birth certificate, copies of hospital or medical records, or an attending physician's statement; or (b) In the case of resignation due to adoption, copies of the adoption decree. (3) The employer who accepted the resignation shall certify on a form provided by the system, the date of the member's resignation and the reason, if any, given for the resignation; (4) For each year of service credit purchased, the member shall pay to the system for credit to the member's accumulated account an amount equal to the member's retirement contributions for full-time employment for the first year of contributing service subsequent to the member's return from the period of resignation, plus interest thereon compounded annually at a rate set by the board of the school employees retirement system from the date of the member's return to contributing service to the date of payment. (5) For each year of service credit purchased, the employer who accepted the resignation shall pay to the system an amount equal to the employer contribution for full-time employment for the member's first year of contributing service subsequent to the member's return from the period of resignation, plus interest thereon compounded annually at a rate set by the board of the school employees retirement system from the date of the member's return to contributing service to the date of payment. Payment shall be made: (a) In one lump-sum payment from the employer directly to the school employees retirement system; or (b) By authorization of the employer from the amounts allocated to the employer under Chapter 3317. of the Revised Code. (C) A member who meets the foregoing requirements is eligible to purchase service credit for the lesser of the actual period of time from the resignation to the return to employment in a contributing position or two years. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-45 | Release of names, addresses and information.
Names, addresses and other information contained in records maintained by the school employees retirement system shall be released to members of the public in accordance with this rule. (A) Except as otherwise provided in section 3309.22 of the Revised Code, no part of an individual's personal history record shall be released to a third party except upon the written authorization of the person to whom the record pertains. In addition to the information set forth in division (A)(1) of section 3309.22 of the Revised Code, personal history record includes, but is not limited to, any record identifying: (1) The amount of benefit or allowance paid or payable to any person, (2) The service history or service credit of a member or retiree, or (3) The dependents or beneficiaries of a member or retiree. (B) Medical reports and recommendations shall be released only under the following circumstances: (1) Upon written request from the person to whom the report or recommendation pertains, to that person; (2) Upon written authorization from the person to whom the report or recommendation pertains or the person's agent, to the physician, attorney or authorized agent of that person; (3) To the board assigned physician. (C) Except as otherwise provided by law, all other system information not described in paragraph (A) or (B) of this rule shall be made available for inspection and copies provided upon request and payment of any applicable costs for copying and mailing. The person requesting a copy may choose to obtain the copy on paper, in the same medium in which the record is kept, or in any other medium in which the system determines that it can reasonably duplicate the record as an integral part of normal operations. A list of names and addresses of members, former members, retirants, contributors, former contributors, or beneficiaries shall be made available upon written request and payment of the cost of compiling, copying and mailing the list. (D) As used in division (D)(3) of section 3309.22 of the Revised Code and this rule: (1) "Contributor" means a SERS retirant or other system retirant who has an account with SERS based on contributions to SERS pursuant to section 3309.341 of the Revised Code. (2) "Former contributor" means a current recipient of a monthly annuity under section 3309.344 of the Revised Code. (3) "Former member" means a member who has not contributed to SERS in twelve months and is considered inactive. Last updated May 4, 2022 at 11:41 AM Supplemental Information |
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Rule 3309-1-46 | Retirement - option selection.
(A) If an applicant is married at the time of filing an application for retirement, the applicant shall receive a retirement allowance designated as "Plan A" under division (B)(1) of section 3309.46 of the Revised Code, unless: (1) The spouse consents on a form provided by the school employees retirement system to the applicant's election to receive an annuity or payment pursuant to an optional plan under division (B)(3) or (B)(4) of section 3309.46 of the Revised Code; or (2) The school employees retirement board waives the requirement of a spousal consent upon receipt of one of the following: (a) The written statement of the spouse's physician certifying that the spouse is medically incapable of consenting to the plan of payment elected by the applicant; or (b) A certified copy of a probate court order appointing a guardian for the spouse due to a finding of incompetence. (c) The affidavits of the applicant and at least two other persons, one of whom must be unrelated to the applicant, attesting that the whereabouts of the spouse is unknown. (3) The applicant is required to elect a plan of payment providing a specified amount to a former spouse after the applicant's death pursuant to a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property, and (a) The applicant elects a plan of payment designated as "Plan F" under division (B)(3)(e) of section 3309.46 of the Revised Code that is in accordance with the court order and also designates the applicant's current spouse as a beneficiary under the plan; or (b) The total amount required by court order, or orders, is equal to or greater than one hundred per cent of the applicant's lesser allowance. (B) An applicant's current spouse must also consent to the election of a plan of payment described in division (B)(3)(e) of section 3309.46 of the Revised Code if the applicant is required to elect a plan of payment providing a specified amount to a former spouse after the applicant's death pursuant to a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property and also designates a beneficiary under the plan other than the former spouse and current spouse. Last updated February 21, 2024 at 11:43 AM Supplemental Information |
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Rule 3309-1-47 | Purchase of school board member service.
(A) This rule amplifies section 3309.311 of the Revised Code. (B) (1) A member of the school employees retirement system may purchase credit for service as a school board member by filing a written request which shall include a certification of service signed by the employer. (2) A member may purchase credit only for qualified service that occurred prior to June 30, 1991. (3) A member may purchase credit for service, including concurrent service, on two or more school boards provided that the total of the credit purchased shall not exceed one year of credit for any year as defined in division (R) of section 3309.01 of the Revised Code. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-48 | Effect of applicant's death on retirement application.
If a member has filed a proper and complete application for a retirement allowance and dies subsequent to the established effective date of the retirement, whatever benefits may be due the member's beneficiaries will be determined by the plan of payment selected by the member on the application forms for retirement. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-49 | Purchase of exempt service credit.
(A) A member may purchase in portions all or part of the exempt service credit that the member is eligible to purchase. Payment for any portion purchased shall be made in full at the time of purchase. A member may make subsequent purchases of any remaining exempt service credit at any time prior to retirement. (B) (1) If the credit to be purchased is for service that would have been covered under Chapter 3309. of the Revised Code, the system shall request certification of the service from the employer for which the service was performed. On the basis of the employer certification, the system shall determine the amount of service credit that would have been earned had the service not been exempt. (2) If the credit to be purchased is for service that would have been covered under Chapter 145. or 3307. of the Revised Code, the system shall request certification from the applicable retirement system that the service was exempt and the amount of service credit, based upon the certification of the employer for which the service was performed, that would have been earned had the service not been exempt. (3) The service credit determined under paragraphs (B)(1) and (B)(2) of this rule shall be reduced to the extent that: (a) It is concurrent with any other credit that will be used in calculating a benefit; (b) Its purchase will result in the member being credited with more than twelve months of service credit in any one year. (C) The member shall be eligible to purchase the credit determined pursuant to paragraph (B) of this rule. The system shall calculate the cost to purchase each year of credit by multiplying the member's compensation for the twelve months of contributing service under Chapter 145., 3307. or 3309. of the Revised Code immediately preceding the month in which the application to purchase is received by a percentage rate established by the board by resolution upon recommendation of its actuary. The cost for portions of credit of less than a full year shall be prorated on the basis of the cost for a full year. (D) For purposes of section 3309.301 of the Revised Code, one and one-half years of contributing service in the school employees retirement system or the state teachers retirement system shall be equivalent to eighteen months of contributing service. Last updated October 26, 2023 at 8:42 AM Supplemental Information |
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Rule 3309-1-50 | Re-employment restrictions.
This rule implements section 3309.341 of the Revised Code and applies to Ohio public service after retirement in circumstances other than those subject to section 3309.343 of the Revised Code and rule 3309-1-58 of the Administrative Code. (A) For the purpose of this rule and section 3309.341 of the Revised Code: (1) "Effective retirement benefit date" means the date upon which a retirement allowance begins. (2) "Ohio retirement system" means the school employees retirement system, state teachers retirement system, public employees retirement system, Ohio police and fire pension fund, state highway patrol retirement system, and Cincinnati retirement system. (3) "Uniformed retirement system" means the Ohio police and fire pension fund and the state highway patrol retirement system. (B) (1) Forfeiture of a retirement allowance under section 3309.341 of the Revised Code for employment in a position covered by another Ohio retirement system shall apply only to a SERS retirant whose effective retirement benefit date is on or after September 1, 1991. (2) A SERS retirant who has received a retirement allowance for less than two months and who is employed in a position covered by an Ohio retirement system shall forfeit such allowance for any month in which he is so employed during the two-month period after the effective benefit date. The forfeited allowance shall be the retirement allowance payable under a plan described in division (B)(1) or (B)(3) of section 3309.46 of the Revised Code before any lump sum amount elected pursuant to division (B)(4) of section 3309.46 of the Revised Code. (3) Notwithstanding paragraphs (B)(1) and (B)(2) of this rule, the forfeiture provision shall not apply to a SERS retirant who is employed in a position covered by a uniformed retirement system if the retirant was continuously employed in the position for at least two months prior to the effective retirement benefit date in this system. (C) (1) (a) Where a member of this system who also has established membership in another Ohio retirement system or systems is terminating all employment covered by all systems, and is electing to take a retirement benefit from one or more of the other systems, as of the effective retirement benefit date, the member shall elect to: (i) Apply for a benefit if eligible pursuant to section 3309.34 or 3309.35 of the Revised Code; or (ii) Apply for a refund of contributions pursuant to section 3309.42 of the Revised Code. (b) If as of the effective retirement benefit date from an Ohio retirement system the member has sufficient service credit to qualify for a benefit in this system, the effective retirement benefit date shall be the first of the month following the later of the benefit date in the Ohio retirement system or attainment of eligibility for a benefit in this system. (2) (a) A member of this system who also is a member of an Ohio retirement system and who has applied for a retirement benefit in that system may continue employment in the position covered by this system, provided that contributions made to this system after the member's effective retirement benefit date in the Ohio retirement system shall accrue only a benefit as described in section 3309.344 of the Revised Code. (b) If the member has been continuously employed in such position for at least two months prior to the effective retirement benefit date in the Ohio retirement system, the member may make an irrevocable election on a form provided by this system to have contributions to this system made prior to the effective retirement benefit date in the other system applied toward the same benefit described in section 3309.344 of the Revised Code. In the event this election is made, accrual of allowable interest shall not begin until after the effective retirement benefit date in the other system. Last updated April 3, 2024 at 1:24 PM Supplemental Information |
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Rule 3309-1-52 | Travel and expense reimbursement.
(A) (1) Members of the school employees retirement board and staff members of the school employees retirement system shall be reimbursed by the retirement system for actual, proper and reasonable expenses incurred for attendance at appropriate meetings, sessions, seminars and conferences. (2) "Actual, proper and reasonable expenses" means that the particular service or accommodation was in fact used by, or provided to, the board or staff member, was appropriate under the circumstances and within the bounds of prudent judgment. (3) "Appropriate meetings, sessions, seminars and conferences" include, but are not limited to, the following: (a) Meetings of the retirement board or its committees; (b) Meetings sponsored by the retirement board or the retirement system; (c) Member or retiree related meetings; (d) Other educational meetings, sessions, seminars and conferences that serve to make the board or staff member more knowledgeable and are related to the general purposes of the retirement system and in the interest of the system's participants. (e) Other meetings which involve the retirement system's business operations. (B) Reimbursable expenses include, but are not limited to, the following: (1) Transportation. (a) Air fare will be reimbursed at coach or economy class rates when such was available and efforts will be made to use other cost-saving plans offered by carriers. In accordance with Ohio ethics commission advisory opinion No. 91-010, airline frequent flyer miles shall not be used for personal travel or benefit. (b) In-state travel by personal automobile will be reimbursed at the reimbursable rate established by the system. Out-of-state personal automobile or other surface vehicle travel will be reimbursed at the lesser of "portal-to-portal" or "air travel cost". (i) "Portal-to-portal" reimbursable expenses include the actual cost of lodging, meals, parking at place of lodging and mileage at the reimbursable rate established by the retirement system or the actual cost of coach or economy class fare or the cost of a rental vehicle. (ii) "Air travel cost" reimbursable expenses include the actual cost of coach or economy air fare, airport parking, transportation from the airport to destination lodging, and mileage between the board or staff member's home and the local airport at the reimbursable rate established by the retirement system. (c) The cost of a rental vehicle where it is a reasonable alternative means of transportation under the circumstances. (d) The cost of parking for a personal or rental vehicle. (e) The cost of taxi cabs or other public transportation where reasonable under the circumstances. (2) Lodging at the single occupancy rate. (3) Meals and beverages, excluding alcohol, in reasonable amounts not to exceed limits as set by the retirement board. (4) Tips as customary and reasonable. (5) Telephone calls or other electronic transmissions for retirement system business; or personal telephone calls to home and/or family not to exceed limits set by the retirement board. (6) Registration fees for appropriate meetings, sessions, seminars and conferences. (C) Reimbursable expenses do not include the following: (1) Expenditures of a personal nature except as provided in this rule. (2) Expenditures for travel other than for retirement system business. (3) Except in the case of an emergency, expenditures by a board member for out-of-state travel not approved by the retirement board. (D) Requests for approval of out-of-state travel by a board member shall be submitted by the board member to the executive director of the retirement system who shall present the request to the board at its next regular meeting. (E) Requests for reimbursement for authorized travel shall be submitted on the appropriate form attached as an appendix to this rule and in accordance with the retirement system's reimbursement procedures. Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-53 | Rollover distributions and trustee-to-trustee transfers.
(A) For purpose of SERS rules, "eligible rollover distribution," or "rollover distribution," means all or any portion of an amount that qualifies as an eligible rollover distribution under section 402(c)(4) of the Internal Revenue Code of 1986, as amended, 26 U.S.C. 402(c)(4), and is paid to a member or the surviving spouse of the member from either: (1) Another employer plan qualified under section 401(a) of the Internal Revenue Code, 26 U.S.C. 401(a); (2) An individual retirement account, or annuity other than an endowment contract, under section 408 of the Internal Revenue Code, 26 U.S.C. 408, to the extent that the amount would be a taxable event; (3) A tax-sheltered annuity under section 403(b) of the Internal Revenue Code, 26 U.S.C. 403(b); (4) A governmental deferred compensation plan under section 457 of the Internal Revenue Code, 26 U.S.C. 457; or (5) An annuity plan under section 403(a) of the Internal Revenue Code, 26 U.S.C. 403(a). (B) (1) The school employees retirement system may accept direct trustee-to-trustee transfers from a 26 U.S.C. 457 deferred compensation plan, a 26 U.S.C. 403(b) tax-sheltered annuity plan, or a plan qualified under 26 U.S.C. 401(k) and eligible rollover distributions only for the purchase of service credit pursuant to section 3309.021, 3309.022, 3309.26, 3309.301, 3309.31, 3309.311, 3309.41, 3309.451, 3309.473, 3309.474, 3309.73, 3309.731 or 3309.75 of the Revised Code, for the payment of back contributions under rule 3309-1-13 of the Administrative Code, or for the payment of additional liability pursuant to division (A)(1)(c) of section 3309.34 of the Revised Code. (2) A member or surviving spouse of a member must be otherwise eligible to purchase the service credit or pay the back contributions pursuant to Chapter 3309. of the Revised Code and SERS rules. (3) The amount of the rollover distribution accepted by the retirement system shall not exceed the amount necessary to fund the benefit attributable to the service credit. (C) A member, alternate payee, or otherwise qualified beneficiary of a deceased member who is entitled to a distribution from the retirement system that qualifies as an eligible rollover distribution pursuant to sections 401(a)(31) and 402(f)(2)(A) of the Internal Revenue Code, 26 U.S.C. 401(a)(31) and 402(f)(2)(A), may request that the distribution be paid in a direct rollover to another eligible retirement plan to the extent permitted by sections 401(a)(31) or 408A of the Internal Revenue Code, 26 U.S.C. 401(a)(31) or 26 U.S.C. 408A. A qualified nonspouse beneficiary of a deceased member may only rollover directly to an inherited individual retirement account or annuity to the extent permitted by section 402(c)(11) of the Internal Revenue Code, 26 U.S.C. 402(c)(11). Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-54 | Purchase of service credit by payroll deduction.
(A) A member of the school employees retirement system may purchase service credit by payroll deduction pursuant to agency-level 3309 of the Administrative Code and section 3309.021, 3309.022, 3309.26, 3309.261, 3309.301, 3309.31, 3309.41, 3309.473, 3309.474, 3309.73, 3309.731, or 3309.75 of the Revised Code. (1) Payroll deduction purchase plans received before January 1, 2019, and whose starting date is before January 1, 2019, shall be paid with amounts designated by the member's employer as picked-up contributions under a plan in compliance with section 414(h)(2) of the Internal Revenue Code of 1986, 26 U.S.C. 414(h)(2). Prior to the purchase of service credit with amounts designated as picked-up contributions, the member's employer shall have adopted and filed with the retirement system a resolution authorizing the purchase of service credit for its employees by payroll deduction with amounts designated as picked-up and paid to the retirement system by the employer. (2) Payroll deduction purchase plans with a starting date on or after January 1, 2019 may not be paid with amounts designated by the member's employer as picked-up contributions under a plan in compliance with section 414(h)(2) of the Internal Revenue Code. (B) (1) Upon a member's request to purchase service credit, the retirement system shall prepare and forward to the member payroll deduction purchase plan documents, which shall include a cost estimate and a payroll deduction authorization form. The payroll deduction authorization form shall set forth: (a) The type and amount of service to be purchased; (b) The employer's payroll cycle; (c) The number of payments in which the service is to be purchased; (d) The amount of each payment; and (e) The starting date of the payments. (2) (a) The member shall complete and sign the employee portion of the payroll deduction authorization form and forward it to the member's employer; (b) The payroll officer of the member's employer shall complete the employer's portion of the payroll deduction authorization form; and (c) The retirement system must receive the completed authorization form and first payment before the expiration of the cost estimate. (C) (1) A separate payroll deduction authorization form shall be completed for each separate type of service credit to be purchased; (2) Only one service credit purchase plan at a time may be in place for each separate type of service credit; (3) The maximum number of months over which service may be purchased under a payroll deduction purchase plan shall be one hundred twenty; (4) The allocation of each payment toward interest and purchase of service credit shall be uniform for the period of the payroll deduction purchase plan; (5) If a payroll deduction purchase plan is terminated early, the member shall be granted service credit based on the total amount allocated toward the purchase of service that was remitted to the retirement system under the payroll deduction purchase plan. (D) (1) The employer shall begin payroll deduction on the starting date set forth on the payroll deduction authorization form. (2) The employer shall remit the amounts withheld directly to the retirement system on the employer's payroll cycle basis; (3) Notwithstanding paragraph (E)(2) or (F)(2) of this rule, if a completed payroll deduction authorization form is returned to the retirement system, but at any point thereafter the employer fails to remit the amounts to be withheld to the retirement system for three consecutive months, the retirement system shall terminate the payroll deduction purchase plan. (E) When a member is purchasing service credit under a payroll deduction purchase plan as provided for in paragraph (A)(1) of this rule: (1) The member cannot: (a) Decrease or increase the amount of the payroll deduction; (b) Terminate the payroll deduction unless the member has terminated employment or purchased all of the service credit set forth on the payroll deduction authorization form; or (c) Make a direct payment to the retirement system to purchase the service credit. (2) The member's employer shall not decrease, increase, or terminate the payroll deduction unless the member has terminated employment or purchased all of the service credit set forth on the payroll deduction authorization form. (F) When a member is purchasing service credit under a payroll deduction purchase plan as provided for in paragraph (A)(2) of this rule: (1) The member can: (a) Terminate a payroll deduction plan at any time by providing written notice to the member's employer and by notifying the retirement system; (b) Make a direct payment to the retirement system to purchase the remaining service credit. To purchase the remainder of service credit, the member must first terminate the payroll deduction purchase plan and then submit a request to the retirement system for a statement of the balance due. (2) The member's employer shall not decrease, increase, or terminate the payroll deduction purchase plan unless the member has terminated the payroll deduction purchase plan, terminated employment, or purchased all of the service credit set forth in the payroll deduction authorization form. (G) A member who has had one or more prior payroll deduction purchase plans for a type of service credit may establish a new payroll deduction purchase plan for the same type of service credit. The new plan's commencement date must be six or more months after the first deduction under the most recent payroll deduction purchase plan for the same type of credit. (H) Upon receipt of payments transferred pursuant to section 145.311 or 3307.711 of the Revised Code, the school employees retirement system shall restore the former member's service credit for which payment is transferred. Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-55 | Responsibility for health care coverage.
(A) This rule amplifies division (F) of section 3309.69 of the Revised Code. (B) For the purpose of this rule: (1) "Age and service retirant" means a former member who is receiving a retirement allowance pursuant to section 3309.34, 3309.35, 3309.36 or 3309.381 of the Revised Code. (2) "Available coverage" means any of the following provided by another Ohio retirement system: a group plan, or a payment, stipend, or reimbursement provided for the purpose of obtaining medical or prescription drug coverage. Coverage shall be considered available if the individual is eligible for the coverage, regardless of whether the individual waived or declined to accept or enroll in the coverage. Coverage shall not be considered available if only provided as a dependent of another person. (3) "Disability benefit recipient" means a member who is receiving a benefit or allowance pursuant to section 3309.35, 3309.39, 3309.40 or 3309.401 of the Revised Code. (4) "Survivor benefit recipient" means a beneficiary receiving a benefit pursuant to section 3309.45 or 3309.46 of the Revised Code. (C) Except as otherwise provided in this rule, this retirement system shall be the system responsible for health care coverage for its eligible benefit recipients. (D) An individual otherwise eligible for health care coverage from this system may not enroll in this system's coverage if the individual also has available coverage in the following circumstances: (1) The individual is only eligible for health care coverage from this system as a dependent of an eligible benefit recipient; or (2) The individual is an age and service retirant or disability benefit recipient in both this system and another Ohio retirement system and the benefit recipient has less service credit in this system than in the other system. Where the service credit is the same in each system, the individual may not enroll in this system's health care coverage if the employee contributions in the account upon which the benefit in this system is based are less than the employee contributions in the account upon which the benefit in the other system is based; or (3) The individual is a survivor benefit recipient in this system and receiving an age and service retirement or disability benefit from another Ohio retirement system; or (4) The individual is a survivor benefit recipient in both this system and another Ohio retirement system and the benefit effective date in this system is later than the benefit effective date in the other system. (E) Each individual enrolled in health care coverage provided by this system shall notify the system of other available coverage at the time of enrollment in this system's coverage, and whenever the individual becomes eligible for any available coverage. Supplemental Information |
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Rule 3309-1-56 | Alternative retirement programs.
(A) For the purpose of this rule: (1) "Administrative employee" means an administrative employee as defined in division (A) of section 3305.05 of the Revised Code for whom the school employees retirement system would be the applicable state retirement system. (2) "Eligible employee" means an employee as defined in division (C) of section 3305.01 of the Revised Code for whom this retirement system would be the applicable state retirement system. (3) "Election period" means: (a) For administrative employees who made elections under division (B) of section 3305.051 of the Revised Code, the one hundred twenty days after the employee's first day on the institution's payroll. (b) For administrative employees who made elections under division (C) of section 3305.051 of the Revised Code, the one hundred twenty days after the effective date of the alternative retirement program adopted by the institution. (c) For eligible employees who make elections under division (B)(1) of section 3305.05 of the Revised Code, the one hundred twenty days after August 1, 2005. (d) For eligible employees who make elections under division (B)(2) or (B)(3) of section 3305.05 of the Revised Code, the one hundred twenty days after the employee's first day on the institution's payroll. (4) "Employee" means either an administrative employee or an eligible employee. (5) "Institution" means a public institution of higher education as defined in division (A) of section 3305.01 of the Revised Code. (B) Within thirty days of its adoption of an alternative retirement plan under Chapter 3305. of the Revised Code, an institution shall file notice with the retirement system of its adoption of the plan. The notice shall: (1) Be given in the manner and form prescribed by the retirement system. (2) Include a copy of the plan adopted. (3) Include a report in the manner and form prescribed by the retirement system of all current employees. (C) (1) Each institution of higher education that employs an employee eligible to elect an alternative retirement program shall: (a) Notify the retirement system at the time it employs the employee, but in no event later than ten days after the employee's first day on the institution's payroll. (b) Notify the retirement system at the time an employee of the institution changes to a classification which qualifies the employee to elect an alternative retirement plan but in no event later than ten days after the effective date of the employee's reclassification. (2) The notice required under paragraph (C)(1) of this rule shall be given in the manner and form prescribed by the retirement system, and shall include the employee's name, address, social security number, date of birth, sex, annual compensation, first date on the institution's payroll, and any other information required by the school employees retirement system. (D) (1) Elections by an employee of an alternative retirement plan shall be made on forms provided by the retirement system and completed by the employee and the institution. (2) Not later than ten days after an election is filed with the institution, the institution shall file a certified copy with the retirement system. (E) (1) Elections made by employees under divisions (B)(2) and (B)(3) of section 3305.05 or division (B) of section 3305.051 of the Revised Code will be implemented no later than thirty days after a certified copy of the employee's election is filed with the retirement system. (2) The election, when implemented, shall be effective as of the first day upon which the employee appears on the institution's payroll or was reclassified to a position as an administrative or eligible employee. (3) Once an election is filed with the system, it is not affected by the death of the employee and it shall be implemented and effective as set forth in this rule. (F) (1) Elections made by employees under division (B)(1) of section 3305.05 of the Revised Code will be implemented no later than thirty days after a certified copy of the employee's election is filed with the retirement system. (2) The election, when implemented shall be effective as of the day the employee's election is irrevocable: (3) Once an election is filed with the system, it is not affected by the death of the employee and it shall be implemented and effective as set forth in this rule. (G) (1) Elections made by administrative employees under division (C) of section 3305.051 of the Revised Code will be implemented no later than thirty days after the certified copy of the employee's election is filed with the retirement system. (2) The elections when implemented shall be effective as of the following dates: (a) On March 31, 1998 where the public institution's alternative retirement program is established on or after December 8, 1998 but no later than March 31, 1999; or (b) On the first day of the month in which the public institution's alternative retirement program is established where the program is established after March 31, 1999. (3) Once an election is filed with the system, it is not affected by the death of the employee and it shall be implemented and effective as set forth in this rule. (H) (1) Employee and employer contributions for an employee shall be collected and remitted to the retirement system until an election is implemented pursuant to paragraph (E)(1), (F)(1) or (G)(1) of this rule. (2) Those employee and employer contributions received after the effective date of an election as determined by this rule for an employee who elects an alternative retirement plan shall be refunded as unauthorized contributions to the provider identified as provided in paragraph (D) of this rule. The amount of employer contributions refunded shall be less the amount due pursuant to division (D) of the section 3305.06 of the Revised Code. (I) (1) An application under division (B) of section 3309.42 of the Revised Code for payment of a member's accumulated contributions to the provider of an alternative retirement plan shall be made in a manner and form prescribed by the retirement system. (2) The institution shall certify: (a) The name and address of the institution's plan administrator; and (b) The plan is eligible to receive a trustee-to-trustee transfer from the retirement system which is a plan qualified under Internal Revenue Code section 401(a). (3) The death of the employee prior to payment of the accumulated contributions to an alternative retirement plan cancels the application for payment. (J) Not later than the fifteenth day of each month following a month in which an institution employed an employee who elected an alternative retirement, plan the institution shall: (1) Remit to the retirement system the contributions required under division (D) of section 3305.06 of the Revised Code. (2) Submit a report on all employees who have elected an alternative retirement plan in a form and manner prescribed by the retirement system. Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-57 | Rule on rules.
(A) The school employees retirement board shall adopt rules pursuant to section 111.15 of the Revised Code. (B) Any person may receive notice of the proposed adoption, amendment, or rescission of any rule by requesting their name be included on the mailing list to receive the retirement board's meeting agenda. (C) Notice of material changes to rules or new rules adopted shall be reported, as applicable, in publications sent to employers, members, contributors, and/or retirants and benefit recipients. Last updated May 2, 2022 at 9:14 AM Supplemental Information |
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Rule 3309-1-58 | Retirement of member pursuant to section 3309.343 of the Revised Code.
(A) For purposes of section 3309.343 of the Revised Code and this rule: (1) "Active position" means a position a member worked in the month before retirement and for which contributions were being received by a state retirement system at the time of retirement pursuant to section 3309.343 of the Revised Code. (2) "SERS annual compensation" means a member's compensation for an active position reported by an employer to the school employees retirement system for the most recent twelve-month period. If the compensation has been reported for less than a twelve-month period, the system shall convert the compensation to an annual basis. (3) "Other retirement system annual compensation" means a member's annual earnable salary or compensation for an active position as certified to this system by the public employees retirement system or the state teachers retirement system. (4) "Highest annual compensation" means the highest of the SERS annual compensation or the other retirement system annual compensation for an active position. (5) "Position" means employment for which a member is covered and contributes to a state retirement system. (6) "State retirement system" means the school employees retirement system, the public employees retirement system or the state teachers retirement system. (7) "Other retirement system" means the public employees retirement system or the state teachers retirement system. (B) (1) When a member holds more than one active position in this system, no active positions in an other retirement system, and is electing to take a retirement benefit pursuant to section 3309.343 of the Revised Code, the member shall: (a) Apply for a benefit pursuant to section 3309.35, 3309.36, or 3309.46 of the Revised Code, for the active position which has the highest SERS annual compensation; and (b) Select which other active position or positions upon which the member shall continue to contribute to this system. (2) In computing the benefit described in paragraph (B)(1) of this rule all service credit in this system shall be used. (C) (1) When a member holds one or more active positions in this system and one or more active positions in an other retirement system, and the active position which has the highest annual compensation is in this system, the member shall: (a) Apply for a benefit pursuant to section 3309.35, 3309.36, or 3309.46 of the Revised Code, for the active position which has the highest annual compensation; and (b) Select which other active position or positions upon which the member shall continue to contribute to this system or to an other retirement system. (2) In computing the benefit described in paragraph (C)(1) of this rule, all service credit in any state retirement system shall be used. (D) Employment in any position covered by this system that begins subsequent to the effective retirement benefit date under section 3309.343 of the Revised Code shall be subject to section 3309.341 of the Revised Code, and rule 3309-1-50 of the Administrative Code. Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-59 | Cincinnati retirement system.
(A) This rule amplifies sections 3309.74, 3309.75, and 3309.76 of the Revised Code. (B) As used in this rule: (1) "Eligible service credit" means service credit earned under this system or the Cincinnati retirement system or military service credit purchased or obtained in this system or the Cincinnati retirement system. (2) "Eligible SERS member" means a member of this system who is eligible to obtain service credit in this system for service in the Cincinnati retirement system pursuant to section 3309.75 of the Revised Code. (3) "Eligible CRS member" means a member or former member of this system who is eligible to obtain service credit in the Cincinnati retirement system pursuant to section 3309.76 of the Revised Code. (C) To obtain service credit in this system for eligible service credit with the Cincinnati retirement system, an eligible SERS member shall file a written request on a form provided by this system. Upon receipt of the properly completed form, this system shall notify the Cincinnati retirement system. (D) This system shall grant .083 per cent of a year of service credit in this system per month of eligible service credit with the Cincinnati retirement system upon payment of the following amounts: (1) Payment by the Cincinnati retirement system of the amounts required under division (B)(4) or division (C)(4)(b) of section 3309.75 of the Revised Code. (2) Payment by the eligible SERS member of the amounts required under division (C)(4)(a) of section 3309.75 of the Revised Code with interest as provided by rule 3309-1-38 of the Administrative Code. (E) If the Cincinnati retirement system fails to pay any amounts required under division (B)(4) or division (C)(4)(b) of section 3309.75 of the Revised Code, this system shall not grant any service credit for which payment was not received and shall: (1) Provide notice to the eligible SERS member; and (2) Refund any amounts paid by the eligible SERS member under division (C)(4)(a) of section 3309.75 and paragraph (D)(2) of this rule for which service credit is not granted. (F) An eligible SERS member may obtain service credit pursuant to section 3309.75 of the Revised Code in increments of one month. Service credit obtained in this system shall be deemed to be based first on the eligible SERS member's most recently acquired eligible service credit in the Cincinnati retirement system. (G) No service credit shall be granted in this system that would result in the eligible SERS member accruing more than one year of service credit for any twelve-month period. (H) (1) This system shall pay to the Cincinnati retirement system the amounts required under section 3309.76 of the Revised Code upon receiving written notice from the Cincinnati retirement system that the eligible CRS member has filed a request to obtain service credit in the Cincinnati retirement system and paid any amounts required. (2) If less than the eligible CRS member's total eligible service credit in this system is obtained in the Cincinnati retirement system pursuant to division (A)(4)(a) of section 3309.76 of the Revised Code, any benefits or payments to which the eligible CRS member or beneficiaries may be entitled shall be based on the remaining service credit with this system. Last updated October 26, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-60 | Division of property orders.
(A) "Order" means an order described in section 3105.81 of the Revised Code. (B) "Alternate payee", "benefit", "lump sum payment" and "participant" have the meanings set forth in divisions (A) to (D) of section 3105.80 of the Revised Code. (C) School employees retirement system may retain an order that provides the last four digits of the participant's and alternate payee's social security numbers. (D) Prior to receiving a benefit or lump sum payment, an alternate payee shall provide the information required on a form approved by this system. An alternate payee shall notify this system in writing of any change in the information provided. (E) Any benefit or lump sum payment that is owed and unpaid to an alternate payee at the time of the alternate payee's death shall be paid to the estate of the alternate payee. (F) Pursuant to section 3105.90 of the Revised Code, an order shall be on the form prescribed by the appendix to this rule. (G) Starting with a participant's next annual benefit increase under section 3309.374 of the Revised Code on or after October 27, 2006, the annual increase shall be apportioned between the participant and the alternate payee while the order is in effect. (H) In determining the amount to be paid to the alternate payee under division (D)(2) of section 3105.82 of the Revised Code, the fraction to be used in the calculation shall not exceed one whole. Last updated September 6, 2022 at 3:59 PM Supplemental Information |
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Rule 3309-1-61 | Reemployment covered by Section 3309.345.
(A) Where a position is one that is customarily filled by vote of members of a board or commission and an employer proposes to: (1) Continue the employment of a person as a reemployed retirant in the same position that the person held prior to retirement; or (2) Rehire a person as a reemployed retirant in the same position that the person last held prior to retirement The employer shall comply with the public notice and hearing requirements of section 3309.345 of the Revised Code and so certify to the retirement system on a form provided by the system. (B) Where such reemployment is in the same position and continuous from year to year, no certification to the system shall be required for subsequent years. (C) The person reemployed shall be subject to any other provisions applicable to reemployment. Last updated October 26, 2023 at 8:44 AM Supplemental Information |
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Rule 3309-1-62 | Retirement plan required by court order.
The specified amount that a member is required to elect pursuant to a court order in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code shall be expressed only as a specified percentage of the member's retirement allowance. Last updated October 26, 2023 at 8:44 AM Supplemental Information |
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Rule 3309-1-63 | Plan F - multiple beneficiaries.
(A) Amounts due to a retirant receiving a retirement allowance under the plan described in division (B)(3)(e) of section 3309.46 of the Revised Code and unpaid at death shall be paid to the retirant's surviving beneficiaries under the plan on a prorated basis based on the monthly benefit payable to the beneficiary compared to the total monthly benefits payable to all beneficiaries. (B) Beneficiaries designated in a plan described in division (B)(3)(e) of section 3309.46 of the Revised Code shall be prioritized for purposes of calculation. (1) A beneficiary who is a former spouse whom the member has been ordered to provide a specified amount to in an order described in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code shall have priority over all other beneficiaries. When a member is subject to more than one order described in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code, the former spouses shall be entitled to beneficiary priority in order of earliest retention by the retirement system. (2) A current spouse shall have priority over any beneficiaries who are not the subject of an order described in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code. (3) The member shall designate the priority of any beneficiary who is not a former spouse and the subject of an order described in division (B)(1)(b)(ii) of section 3309.46 of the Revised Code or a current spouse. (C) In no event shall a member have more than four beneficiaries under the plan described in division (B)(3)(e) of section 3309.46 of the Revised Code. Last updated October 26, 2023 at 8:44 AM Supplemental Information |
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Rule 3309-1-64 | Supplemental health care coverage.
(A) Definitions (1) "Benefit recipient," "Member," "Age and service retirant," "Disability benefit recipient," and "Dependent" shall have the meanings set forth in paragraph (A) of rule 3309-1-35 of the Administrative Code. (2) "Premium" means a monthly amount that may be required to be paid by a benefit recipient to continue enrollment for the recipient or the recipient's eligible dependents. (B) Eligibility A person is eligible for dental or vision coverage under this rule so long as the person meets the eligibility requirements in section 3309.69 of the Revised Code and paragraph (B)(1) of rule 3309-1-35 of the Administrative Code for the retirement system's health care coverage. (C) Enrollment (1) An eligible benefit recipient may only enroll in a dental or vision plan as follows: (a) At the time the benefit recipient applies for an age and service retirement, disability benefit, or monthly benefit pursuant to section 3309.45 of the Revised Code; (b) At the time the benefit recipient reinstates previously waived or cancelled health care coverage as provided in paragraph (I) of rule 3309-1-35 of the Administrative Code; (c) Within thirty-one days after involuntary termination of another dental or vision plan; or, (d) During the retirement system's open enrollment period. (2) An eligible dependent of an age and service retirant or disability benefit recipient may only enroll in a dental or vision plan as follows: (a) At the time the age and service retirant or disability benefit recipient enrolls in the plan; (b) During the retirement system's open enrollment period so long as the age and service retirant or disability benefit recipient is also enrolled in the plan; or (c) Within thirty-one days after involuntary termination of another medical, dental, or vision plan, so long as the age and service retirant or disability benefit recipient is also enrolled in the plan. (D) A person's dental or vision coverage shall be cancelled when: (1) The person ceases to qualify as one of the persons listed in paragraph (B)(1) of rule 3309-1-35 of the Administrative Code; (2) The coverage of a dependent is cancelled when the coverage of a benefit recipient is cancelled; (3) The person's coverage is cancelled for default as provided in paragraph (F) of this rule; (4) The person's benefit payments are suspended for failure to submit documentation required to establish continued benefit eligibility under division (B)(2)(b)(i) of section 3309.45, division (F) of section 3309.39, division (D) of section 3309.41, or division (D) of section 3309.392 of the Revised Code; or (5) The benefit recipient elects to cancel the coverage during the open enrollment period. (E) Effective date of coverage (1) When a benefit recipient elects to enroll in dental or vision coverage during an open enrollment period, the effective date of coverage shall be the first day of the calendar year following the open enrollment period. (2) When a benefit recipient elects to enroll in dental or vision coverage upon receipt of a benefit, the effective date of coverage shall be as follows: (a) For a disability benefit recipient or dependent of a disability benefit recipient, the coverage shall be effective on the first day of the month following approval of the benefit or the benefit effective date, whichever is later. (b) For an age and service retirant or dependent of an age and service retirant, the coverage shall be effective on the first day of the month following the date that the retirement application is filed with the retirement system or the benefit effective date, whichever is later. (c) For an eligible dependent of a deceased member, deceased disability benefit recipient, or deceased age and service retirant, the coverage shall be effective on the effective date of the benefit if the appropriate application is received within three months of the date of the member's or retirant's death, or the first day of the month following the date that the appropriate application is received if not received within three months of the date of the member's or retirant's death. (F) Premiums (1) Payment of premiums shall be by deduction from the benefit recipient's monthly benefit. If the full amount of the monthly premium cannot be deducted from the benefit recipient's monthly benefit, the benefit recipient shall be billed for the portion of the monthly premium due after any deduction from the monthly benefit. (2) Premium payments billed to a benefit recipient shall be deemed in default after the unpaid premiums for coverage under this rule and health care coverage under rule 3309-1-35 of the Administrative Code reach a total cumulative amount of at least three months of billed premiums. The retirement system shall send written notice to the benefit recipient that payments are in default and that coverage will be cancelled on the first day of the month after the date of the notice unless payment for the total amount in default is received prior to the date specified in the notice. If coverage is cancelled due to a recipient's failure to pay premium amounts in default, the recipient shall remain liable for such amounts due for the period prior to cancellation of coverage. The benefit recipient shall be ineligible for reinstatement of coverage until payment for the total amount in default is received. Last updated May 1, 2023 at 8:43 AM Supplemental Information |
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Rule 3309-1-65 | Medicare part B reimbursement account.
(A) As used in this rule, "eligible benefit recipient" has the same meaning as in paragraph (J)(2)(b) of rule 3309-1-35 of the Administrative Code. (B) The school employees retirement board has previously established a separate account within the funds described in section 3309.60 of the Revised Code for the purpose of reimbursing eligible benefit recipients for a portion of the cost of medicare part B coverage paid by the eligible benefit recipient, as authorized under section 3309.69 of the Revised Code, and in accordance with rule 3309-1-35 of the Administrative Code. The medicare part B reimbursement account shall be a separate account established pursuant to section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h). The assets in the medicare part B reimbursement account shall be accounted for separately from the other assets of the school employees retirement system, but may be commingled with the other assets of the system for investment purposes. Investment earnings and expenses shall be allocated on a reasonable basis. (C) Each year the board designates the amount of contributions that are to be allocated to the medicare part B reimbursement account for any year. The contributions are funded by employer contributions under section 3309.49 of the Revised Code and are subordinate to the contributions for payment of retirement allowance and other benefits provided under Chapter 3309. of the Revised Code. At no time shall contributions to the medicare part B reimbursement account, when added to contributions for any life insurance benefits provided on behalf of eligible benefit recipients, be in excess of twenty-five per cent of the total aggregate actual contributions made to the school employees retirement system, excluding contributions to fund past service credit. In any event, all contributions to the medicare part B reimbursement account shall be reasonable and ascertainable. (D) The assets of the medicare part B reimbursement account are only used to pay reimbursement of medicare part B premiums paid by eligible benefit recipients and authorized under section 3309.69 of the Revised Code and in accordance with rule 3309-1-35 of the Administrative Code. (E) If any rights of an individual who is eligible to receive medicare part B reimbursement authorized under section 3309.69 of the Revised Code and paid from the medicare part B reimbursement account are forfeited as provided in rule 3309-1-35 of the Revised Code, an amount equal to the amount of such forfeiture shall be applied as soon as administratively possible to reduce employer contributions allocated to the medicare part B reimbursement account. (F) At no time prior to the satisfaction of all liabilities under this rule shall any assets in the medicare part B reimbursement account be used for, or diverted to, any purpose other than as provided in paragraph (D) of this rule and for the payment of administrative expenses relating to the medicare part B reimbursement account. Assets in the medicare part B reimbursement account may not be used for retirement, disability, or survivor benefits, or for any other purpose for which the other funds of the system are used. (G) If the school employees retirement board discontinues medicare part B reimbursement authorized under section 3309.69 of the Revised Code, or upon satisfaction of all liabilities under this rule, any assets in the medicare part B reimbursement account, if any, that are not used as provided in this rule shall be returned to the employers, as required by 26 U.S.C. 401(h)(5). (H) It is the intent of the school employees retirement board in adopting this rule to reflect its continuing compliance in all respects with sections 401(a) and 401(h) of the Internal Revenue Code, 26 U.S.C. 401, and regulations interpreting those sections. In applying this rule, the board will apply the interpretation that achieves compliance with those sections and preserves the qualified status of the system as a governmental plan under sections 401(a) and 414(d) of the Internal Revenue Code, 26 U.S.C. 401 and 414. (I) This rule is intended to reflect past and current policies, practices and procedures of the system with respect to the funding and payment of medicare part B reimbursements and does not confer any new rights to or create any vested interest in receiving medicare part B reimbursement for members, retirees, survivors, beneficiaries, or their dependents. Last updated October 26, 2023 at 8:44 AM Supplemental Information |
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Rule 3309-1-66 | Application for early medicare coverage.
(A) This rule amplifies section 3309.392 of the Revised Code and applies to a disability benefit recipient whose disability benefit was granted on or after January 7, 2013 and who is enrolled in the school employees retirement system's health care coverage on or after April 6, 2017. (B) A disability benefit recipient shall be exempt from the requirements in section 3309.392 of the Revised Code for good cause shown if any of the following apply: (1) The disability benefit recipient has attained age sixty-three at the time of enrollment in the retirement system's health care coverage; (2) The disability benefit recipient submits a written request to be exempt from the requirements due to circumstances that make compliance with section 3309.392 of the Revised Code impracticable, and the retirement system approves the request; (3) The disability benefit recipient submitted an application for social security disability insurance benefits, provided the recipient files a copy of the application and the social security administration's acknowledgement with the retirement system; (4) Prior to April 6, 2017, the disability benefit recipient submitted a signed statement to the retirement system certifying that the recipient does not meet the requirements to apply for social security disability insurance benefits; or (5) The disability benefit recipient files with the retirement system written documentation from the social security administration verifying the recipient does not meet the requirements to apply for social security disability insurance benefits or medicare part A hospital insurance benefits. Last updated October 26, 2023 at 8:45 AM Supplemental Information |
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Rule 3309-1-67 | Electronic transactions.
The school employees retirement system may provide an electronic medium to perform an action and such medium shall constitute a form or application provided or required by the system. An action taken through the electronic medium shall have the same effect as a filing made on paper. The system is not required to create an electronic medium to perform an action, nor accept an electronic document that is not designated by the system as the form or application necessary to perform an action. Last updated October 26, 2023 at 8:45 AM Supplemental Information |
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Rule 3309-1-68 | Guardianship.
(A) As used in this rule: (1) "Benefit" means a payment from the accumulated contributions of the member or employer, or both, under Chapter 3309. of the Revised Code and includes an account refund, pension, annuity, disability benefit, survivor benefit, or death benefit. (2) "Benefit recipient" means any person who is eligible to receive a payment or benefit under Chapter 3309. of the Revised Code and who has had a guardian appointed based either on being under the age of eighteen years or on being found incompetent. (3) "Incompetent" has the same meaning as in division (D)(1) of section 2111.01 of the Revised Code. (B) Payments to a benefit recipient shall be made as follows: (1) To the guardian of the estate; (2) To the agent, when there is a valid durable power of attorney and no guardian of the estate; (3) To a specific person or financial institution account as directed by the probate court; (4) Lump sum payments of one thousand dollars or less and payments required to be paid to the benefit recipient by paragraph (C)(1) of rule 3309-1-09 of the Administrative Code may be paid as follows: (a) When there is a guardian of the estate, to the guardian of the estate; (b) When there is a durable power of attorney and no guardian of the estate, to the agent; (c) When there is no guardian of the estate or durable power of attorney, to the guardian of the person. (5) If the benefit recipient is a minor, payment may be issued to the benefit recipient's legal parent so long as the minor is in the care and custody of the parent, or to the benefit recipient's legal custodian or legal guardian. (C) Except as provided in this paragraph, court authority is required for an application to be signed on behalf of a benefit recipient for an account refund under section 3309.42 of the Revised Code. When the benefit recipient has less than ten years of total service credit, the guardian of the estate, or agent under a durable power of attorney when there is no guardian of the estate, may apply for an account refund. (D) A guardian of the estate of a benefit recipient has restricted authority to complete and sign the following forms and applications on behalf of the benefit recipient: (1) Designation of beneficiary form: The guardian may designate a beneficiary. If the beneficiary is anyone other than "estate" or "statutory," the beneficiary designation must be approved by court order. (2) Application for age and service or conversion retirement: The guardian may elect plan A or plan B in accordance with divisions (B)(1) and (B)(3) of section 3309.46 of the Revised Code. If plan B is elected the guardian may only designate the beneficiary to be "statutory" or "estate." Any other election must be approved by court order. (3) Application for benefits payable to a SERS retirant or other system retirant under section 3309.344 of the Revised Code: The guardian may sign the benefit application. If a monthly annuity is an option, the guardian cannot elect a lump sum payment unless approved by court order. (4) Spousal consent form: The guardian may not sign unless approved by court order. (5) Application for survivor benefits: If a monthly benefit is an option, the guardian cannot elect a lump sum payment of accumulated contributions unless approved by court order. (6) A written notice of waiver pursuant to section 3309.662 of the Revised Code. Last updated October 10, 2024 at 8:35 AM Supplemental Information |
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Rule 3309-1-69 | Cybersecurity incident notification responsibilities.
(A) For the purposes of this rule: (1) A "cybersecurity incident" means a cybersecurity event that has been determined to have an impact on the employer prompting the need for response and recovery. This may include ransomware that may place a school employees retirement system member's personal data at risk or an employer business email compromise that may place a school employees retirement system member's personal data at risk. (2) "Personal data" means full legal name, date of birth, home address, email address, social security number, driver's license number, state identification card number, school employees retirement system account username, school employees retirement system account password, record of contributions or financial account numbers. (B) Within seventy-two hours of discovery of a cybersecurity incident, an employer shall provide notification of the cybersecurity incident to school employees retirement system by telephone or email. Notification shall be sent to employer services personnel at 1-877-213-0861 or employerservices@ohsers.org. The employer shall also provide the following information within seventy-two hours of discovery of a cybersecurity incident: (1) The date and time of the discovery of the cybersecurity incident. (2) The name of the employer cybersecurity incident representative and contact information. (C) The employer shall provide the following information to employer services regarding a cybersecurity incident within a reasonable period of time: (1) Date and time of the cybersecurity incident. (2) Nature of the cybersecurity incident, including any potential impact on school employees retirement system member's personal data or email communications from employer. (3) Description of personal data involved in the cybersecurity incident. (4) Employer action taken to mitigate the cybersecurity incident and secure compromised systems. Last updated August 5, 2024 at 7:30 AM Supplemental Information |
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Rule 3309-1-70 | Contribution Based Benefit Cap.
(A) As used in this rule: (1) "Retirement allowance" has the same meaning as defined in division (A) of section 3309.363 of the Revised Code. (2) "CBBC" has the same meaning as defined in division (A) of section 3309.363 of the Revised Code. (B) The calculations required by section 3309.363 of the Revised Code shall be made when calculating retirement allowances with effective dates of August 1, 2024, or later. (C) A retirement allowance with an effective date of August 1, 2024 or later shall not be finalized and granted until after the member's CBBC has been calculated. (D) When a member's employer has purchased service credit under section 3309.33 of the Revised Code, an amount equal to ten per cent of the member's highest year of compensation multiplied by the years of service credit purchased shall be credited to the member's accumulated contributions. Last updated August 5, 2024 at 7:30 AM Supplemental Information |