Chapter 5505-3 Retirement

(A) For age and service retirement benefits, the eligibility date shall be the date following the last working date as a member, with no duplication of salary and pension.

(B) For reduced retirement benefits, the eligibility date shall be the later of the date following the last working date as a member or the date the member is eligible and elects to receive a reduced retirement benefit, with no duplication of salary and pension.

(C) For disability benefits, the eligibility date shall be the later of the date following the last working date as a member or the date disability benefits are approved by the board, with no duplication of salary and pension.

(D) A member shall apply for benefits on a form prescribed by the board.

(1) A retirement application is considered filed when a completed retirement application has been received by the staff of the retirement system unless the applicant has requested in writing that the application be held until further direction. Upon receipt of the applicant’s written intent to activate the application, the application shall be considered to be filed.

(2) Member communications with retirement system staff about the potential filing of a retirement application shall be considered confidential.

(3) The retirement system shall notify the superintendent of the state highway patrol upon the filing of a retirement application.

(4) A member may withdraw a retirement application in writing at any time prior to the retirement board’s approval of the application.

Effective: 04/26/2011

R.C. 119.032 review dates: 11/30/2010 and 04/26/2016

Promulgated Under: 111.15

Statutory Authority: 5505.07, 5505.18

Rule Amplifies: 5505.16, 5505.17, 5505.18

Prior Effective Dates: 1/1/86, 10/21/05

(A) A disability application provided by the retirement system may be filed by a member, a person acting on behalf of a member, or the superintendent of the state highway patrol.

(1) As used in this rule, “member” does not include state highway patrol cadets attending training schools pursuant to section 5503.05 of the Revised Code.

(2) A terminated employee, whether the termination from the state highway patrol is voluntary or involuntary, ceases to be a member of the retirement system.

(B) With the application, the applicant will submit all medical reports that relate to the alleged disabling condition.

(C) Upon receipt of the application and any medical reports, the board will -

(1) Identify the member’s duties and responsibilities effective on the day preceding the disabling condition; and

(2) Appoint one or more health care professionals with expertise in the disabling condition to examine the applicant at the expense of the retirement system to determine fitness for duty.

(D) After examining the applicant and reviewing the application, any medical reports submitted by the applicant, and the results of any additional medical testing, the health care professional or professionals will file a written report with the board with the following information:

(1) Whether the member is totally incapacitated for duty in the employ of the patrol,

(2) Whether the incapacity is expected to be permanent, and

(3) The cause of the member’s incapacity.

(E) The board will forward a copy of the written report of the health care professional or professionals to the disability committee, which will schedule a hearing date.

(F) No less than ten days prior to the hearing, the applicant will be notified by certified mail or another method that is acknowledged in writing by the applicant of -

(1) The hearing date and time, and

(2) The right to appear at the hearing, with or without counsel, to present evidence and testimony.

(G) The disability committee hearing will be held in executive session. An audio recording of testimony on behalf of the applicant will be made to provide the disability committee and board with a record for further review, notwithstanding rule 5505-9-07 of the Administrative Code.The disability committee will consider the application, any medical reports submitted by the applicant, the results of any additional medical testing, the written report of the health care professional or professionals, and other relevant information.

The disability committee may recommend one or more of the following:

(1) Approval or denial of the application,

(2) A finding on whether or not the disability occurred in the line of duty,

(3) A finding that disability retirement be contingent on compliance with a treatment plan,

(4) Further investigation,

(5) Additional examination of the applicant.

(H) No less than ten days after the hearing, the applicant will be notified by certified mail or another method that is acknowledged in writing by the applicant of -

(1) The disability committee’s recommendations,

(2) If applicable, a reasonable explanation for denial, and

(3) The right to request reconsideration of the disability committee’s decision.

(I) Within ten days of receiving notification of the disability committee’s recommendations, the applicant may file a written request for reconsideration. The request will be considered at the next regularly scheduled meeting of the disability commitee and must be accompanied by new medical evidence.

(J) At the next regularly scheduled meeting of the board, the disability committee’s recommendations on a disability application may be adopted or rejected, in whole or in part, or remanded to the disability committee for further consideration.

(K) No less than ten days after the board meets, the applicant will be notified by certified mail or another method that is acknowledged in writing by the applicant of -

(1) The board’s decision, and

(2) If applicable, the effective date of the disability retirement.

Replaces: 5505-3-02

Effective: 12/16/2011

R.C. 119.032 review dates: 12/16/2016

Promulgated Under: 111.15

Statutory Authority: 5505.04

Rule Amplifies: 5505.18

Prior Effective Dates: 1/1/86, 3/28/02, 3/25/2004

[This rule designated an internal management rule. For a copy of this rule, contact the Ohio Legislative Service Commission.]

(A) A retirant whose reemployment, whether full-time or part-time, is covered by one of the other Ohio public retirement plans is subject to the following:

(1) If reemployment occurs prior to the pension eligibility date, or before the end of thirty days following the pension eligibility date, two months’ pension allowance shall be forfeited.

(2) If reemployment occurs after thirty days but before the end of sixty days following the pension eligibility date, one month’s pension allowance shall be forfeited.

(3) Notwithstanding the prior provisions, if reemployment occurs sixty days or more prior to the pension eligibility date, no pension allowance shall be forfeited.

(B) If a pension allowance has been paid to a reemployed retirant who is not entitled to it because of paragraph (A) of this rule that amount shall be withheld from future payments due to the retirant. In the event that future payments due to the retirant are less than the amount to be forfeited, the retirant must immediately reimburse the system for the difference

(C) Health care coverage eligibility is not affected by this rule.

Effective: 05/23/2007

R.C. 119.032 review dates: 03/05/2007 and 05/10/2012

Promulgated Under: 111.15

Statutory Authority: 5505.07

Rule Amplifies: 5505.161

Prior Effective Dates: 8/1/1992, 10/21/2005

(A) A member of the state highway patrol retirement system who retires under section 5505.16 of the Revised Code may elect to receive a single lifetime pension benefit, or the actuarial equivalent under one of the following options:

(1) A reduction in the retirant’s pension with a corresponding payment for the life of a beneficiary designated at the time of retirement.

(2) A reduction in the retirant’s pension with a guaranteed term to the retirant and beneficiaries of not less than five nor more than twenty years. Beneficiaries may be named. in order. during the retirant’s lifetime; however. only one beneficiary may receive a monthly pension at one time. The present value of any remaining payments shall be distributed to the estate of the last surviving beneficiary.

(B) A retirant may change a joint and survivor annuity selection to a single life annuity under the following conditions:

(1) If the retirant has been receiving a benefit for less than one year. and with written consent of the spouse.

(2) Upon the death of the spouse. or

(3) Upon divorce. annulment. or dissolution. and with written consent of the spouse. or pursuant to a court order.

(C) There shall be no retroactive adjustment for the period of time that a joint and survivor annuity was paid.

(D) A retirant may change a single life annuity selection to a joint and survivor annuity until one year after the retirant’s marriage.

(E) Plan changes shall be effective the first day of the month following receipt of a form prescribed by the board.

(F) Any benefit paid to a beneficiary under the joint and survivor annuity or life annuity certain and continuous is in addition to the automatic surviving spouse benefit in accordance with section 5505.17 of the Revised Code. Internal Revenue Code section 401(a)(9) prohibits the payment of a benefit to a designated beneficiary. or a combination of payments made to a surviving spouse and designated beneficiary. that exceeds the amount the retirant was receiving at the time of death.

Replaces: 5505-3-05

Effective: 08/08/2011

R.C. 119.032 review dates: 08/08/2016

Promulgated Under: 111.15

Statutory Authority: 5505.04

Rule Amplifies: 5505.162

Prior Effective Dates: 12/1/1994, 11/14/1994, 10/21/2005

(A) Upon the resignation or discharge of a member of the state highway patrol who has fifteen or more years of total service credit, the board may consider whether the reason for separation was dishonesty, cowardice, intemperate habits, or conviction of a felony.

(B) The board may schedule a hearing to consider all available evidence.

(1) The former member shall be given notice of the hearing by certified mail and may appear, with or without counsel, to present evidence and testimony.

(2) Within ten business days, the former member shall be notified of the board’s findings by certified mail.

(C) A former member who disagrees with the board’s findings may request reconsideration.

(1) A request for reconsideration must be accompanied by new evidence and received by the executive director in writing within sixty days of the mailing of the board’s determination.

(2) The former member shall be given notice of the reconsideration hearing by certified mail and may appear, with or without counsel, to present new evidence.

(3) Within ten business days, the former member shall be notified of the board’s reconsideration findings by certified mail.

Effective: 09/28/2010

R.C. 119.032 review dates: 09/28/2015

Promulgated Under: 111.15

Statutory Authority: 5505.07

Rule Amplifies: 5505.17

(A) As provided for in section 5505.50 of the Revised Code, the date of the initial implementation of the deferred retirement option plan (DROP) shall be June 15, 2006.

(B) A retirement board trustee who elects participation in the deferred retirement option plan shall be permitted to serve out the remainder of the elected term of office.

(C) A member whose participation in the deferred retirement option plan terminates as a result of a disability shall not forfeit the interest credited under division (C) of section 5505.54 of the Revised Code.

(D) Interest shall continue to accrue pursuant to division (C) of section 5505.54 of the Revised Code after a member’s participation in the deferred retirement option plan ceases.

(E) As described in division (B)(1) of section 5505.56 of the Revised Code, “on or after the first day of the fourth year” and “earlier than four years” shall mean after three years have elapsed.

(F) As described in division (B)(2) of section 5505.56 of the Revised Code, “on or after the first day of the third year” and “earlier than three years” shall mean after two years have elapsed.

(G) A member participating in the deferred option retirement plan shall be eligible to vote in an election of a retirant member of the retirement board, but shall not be eligible to vote in an election of an employee member of the retirement board.

(H) Provided that the other candidacy eligibility criteria are met, a member participating in the deferred option retirement plan shall be eligible to be elected as a retirant member of the retirement board, but shall not be eligible to be elected as an employee member of the retirement board.

(I) Pursuant to section 5505.54 of the Revised Code, interest on deferred retirement option plan account balances shall be calculated at fifty percent of the Bloomberg USGG5yR index of government securities and fifty percent of the Bloomberg C0035Y index of corporate securities, less a 35 basis point account maintenance fee. The interest rate shall be established at June 30 and December 31 for the following six-month period.

Effective: 08/08/2011

R.C. 119.032 review dates: 09/28/2015

Promulgated Under: 111.15

Statutory Authority: 5505.50

Rule Amplifies: 5505.041, 5505.50, 5505.51, 5505.52, 5505.54, 5505.56

Prior Effective Dates: 9/28/2010

(A) The board shall distribute the funds established in Chapter 5505. of the Revised Code to members, retirants and their beneficiaries in accordance with the provisions of such chapter. No part of the corpus or income of these funds may be used for or diverted to any purpose other than the exclusive benefit of the members, retirants, and their beneficiaries.

(B) If there is a termination of the plan described in Chapter 5505. of the Revised Code or a complete discontinuance of contributions to the plan, the rights of each affected member and retirant to the benefits accrued at the date of termination or discontinuance of contributions, to the extent then funded, are non-forfeitable.

(C) Employer contribution forfeitures of a member arising from severance of employment, death, or for any other reason shall not be applied to increase the benefits any member would otherwise receive under Chapter 5505. of the Revised Code in accordance with section 401(a)(8) of the Internal Revenue Code or its successor provision and applicable regulations thereunder.

(D) Notwithstanding any provisions in highway patrol retirement system rules or Chapter 5505. of the Revised Code to the contrary, distributions to members, retirants, and beneficiaries shall be made in accordance with section 401(a)(9) of the Internal Revenue Code or its successor provision and applicable regulations thereunder and with the following rules:

(1) The entire interest of a member or retirant shall be distributed to such member or retirant

(a) No later than the required beginning date, or

(b) Beginning not later than the required beginning date, in accordance with applicable regulations, over the life of such member or retirant and a designated beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code or its successor provision.

(2) The required beginning date means April first of the calendar year following the later of -

(a) The calendar year in which the member or retirant attains age seventy and one-half years of age, or

(b) The calendar year in which the member retires.

(3) If distribution of a member’s or retirant’s benefit has begun pursuant to the provisions of section 401(a)(9) of the Internal Revenue Code or its successor provision and the accompanying regulations, and the member or retirant dies, any survivor benefits will be distributed as reasonably practicable under the plan of payment selected under Chapter 5505. of the Revised Code and effective as of the date following the member’s or retirant’s death.

(4) If a member dies before the distribution of the member’s interest has begun pursuant to the provisions of section 401(a)(9) of the Internal Revenue Code or its successor provision and the accompanying regulations, any remaining interest of the member will be distributed within five years after the death of such member. Notwithstanding the foregoing, if any 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 or its successor provision, the benefit may be distributed (in accordance with applicable regulations) over the life of such beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), provided that such distribution 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, pursuant to this rule, to begin until the end of the calendar year in which the member would have attained the age of seventy and one-half and, if the spouse dies before the distribution to the spouse commences, then the spouse shall be treated as the member for purposes of this rule.

(5) Any death benefit amounts payable under Chapter 5505. of the Revised Code must comply with the incidental death benefit requirements of section 401(a)(9)(G) of the Internal Revenue Code or its successor provision and regulations thereunder.

(E) Whenever the amount of the benefit is to be determined on the basis of actuarial assumptions, no employer discretion will be permitted.

(F) A member who is entitled to a distribution which qualifies as an eligible rollover distribution pursuant to sections 401(a)(31) and 402(f)(2)(A) of the Internal Revenue Code, their regulations, or successor provisions 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)(A) and 408(A) of the Internal Revenue Code, their regulations, or successor provisions. 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.

(G) The annual compensation of each member taken into account in determining benefit accruals in any plan year beginning after December 31, 2001 shall not exceed two hundred thousand dollars. Annual compensation means “salary”, as such term is defined in section 5505.01 of the Revised Code during the plan year or such other consecutive twelve month period over which salary is otherwise determined under the plan (hereinafter referred to as the “Determination Period”). In determining benefit accruals in plan years beginning after December 31, 2001, the annual compensation limit for the determination period beginning before January 1, 2002 shall be two hundred thousand dollars. The two hundred thousand dollar limit on annual compensation in this paragraph shall be adjusted for cost-of-living increases in accordance with Internal Revenue Code section 401(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to annual “salary” for the determination period that begins with or within such calendar year.

(H) For purposes of the limit established by section 415 of the Internal Revenue Code (as used in section 5505.17, 5505.174, 5505.175, 5505.176, 5505.177, or 5505.18 of the Revised Code), effective January 1, 1998, compensation shall include amounts excludable from the employee’s gross income under sections 125, 132(f), 402(e)(3), 402(h), 403(b), or 457 of the Internal Revenue Code.

(I) The Plan does not permit involuntary cashout distributions and therefore complies with the provisions of section 401(a)(31)(B) of the Internal Revenue Code.

(J)

(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 are incorporated herein by reference, including any provisions of the pension funding equity act of 2004 that apply to governmental plans.

(2) “Limitation year” is the year used in determining whether the limits set forth in section 415 of the Internal Revenue Code (as used in section 5505.17, 5505.174, 5505.175, 5505.176, 5505.177, or 5505.18 of the Revised Code) have been exceeded with respect to a member or retirant in the plan described in Chapter 5505. of the Revised Code. The limitation year for the plan is the calendar year.

Effective: 08/08/2011

R.C. 119.032 review dates: 08/08/2016

Promulgated Under: 111.15

Statutory Authority: 5505.04

Rule Amplifies: 5505.17, 5505.175, 5505.177, 5505.19, 5505.21