Chapter 5505-3 Retirement

5505-3-01 Eligibility date of retirement benefits.

(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

5505-3-02 Disability retirement application and hearing process.

(A) For the purpose of sections 5505.18 and 5505.181 of the Revised Code and agency 5505 of the Administrative Code:

(1) "Member" shall have the meaning described in division (J) of section 5505.01 of the Revised Code except "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 state highway patrol retirement system (HPRS).

(3) "Totally and permanently incapacitated" means a disabling condition that physically or mentally totally incapacitates a member from the performance of regular duty for a period of at least twelve months from the date of HPRS's receipt of the completed application packet.

(4) "In the line of duty" means an illness or injury that occurred during or resulted from the performance of official duties under the direct supervision of the state highway patrol.

(5) "Not in the line of duty" means an illness or injury that did not occur during or result from the performance of official duties under the direct supervision of the state highway patrol. Unless the illness or injury meets the presumption criteria outlined in division (A) of section of section 5505.18 of the Revised Code or competent and credible evidence is submitted to HPRS, a disability condition is presumed to be not in the line of duty.

(6) "Disability committee," as referred to in this rule, shall mean the "health, wellness, and disability" standing committee established pursuant to paragraph (A)(1) of 5505-9-08 of the Administrative Code.

(7) "Medical advisor," as referred to in this rule, shall mean the expert physician appointed by HPRS' board who advises the disability committee and board during its deliberations relating to disability applications.

(8) "Examining physician" means a physician recommended by the medical advisor and approved by the HPRS board.

(B) A disability benefits application packet, hereafter referred to as application packet, provided by HPRS may be filed by a member, a person acting on behalf of a member, or the superintendent of the state highway patrol. In order for the application packet submission to be considered complete, the applicant will submit the following:

(1) A completed application for disability benefits, on a form approved by the board, listing the disabling condition(s),

(2) Attending physician medical evaluation form and statement, on a form approved by the board, supporting the disabling condition(s) listed in the application,

(3) Employer determination and completed form of applicant's inability to perform his/her job duties and responsibilities, and

(4) All medical reports and documentation that relate to the disabling conditions listed in the application.

(5) An incomplete application packet will not be accepted and will not be considered filed.

(6) Once an application packet has been accepted by HPRS and submitted to the medical advisor, additional medical reports or documentation will not be accepted unless requested by the board, disability committee or the medical advisor. Any documentation that is received by HPRS after submission of the application packet to the medical advisor shall be held and included as part of any reconsideration hearing as described within this rule. Should the right to reconsideration not be exercised, the additional medical evidence will be returned to the applicant.

(7) An application packet that does not include an attending physician medical evaluation statement that indicates the applicant is totally and permanently incapacitated will not be accepted.

(C) Upon receipt of a completed application packet, including all pertinent medical reports, HPRS shall schedule the applicant for an examination by at least one examining physician with expertise in the disabling condition(s) listed in the application, unless it is inadvisable to do so.

(1) Payment of any fees connected to the acquisition of records or the preparation of reports of the attending physicians shall be the responsibility of the member.

(2) Payment of any fees connected with the preparation of report of the examining physician(s) shall be the responsibility of HPRS.

(D) After examining the applicant and reviewing the application packet, any medical reports submitted by the applicant, and the results of any additional medical testing, the examining physician will file a written report with HPRS 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) When all necessary medical reports and records have been received by HPRS, including the completed application packet, examining physician's report described in paragraph (D) of this rule, and the medical advisor's report / recommendation, HPRS shall schedule a hearing to be held at the next disability committee meeting. If HPRS does not receive the required information described in this paragraph of this rule at least fourteen days before the next disability committee meeting, the application will be heard at the following scheduled meeting of the disability committee.

(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 testimony.

(3) If circumstances warrant it, the ten day notice requirement may be waived upon mutual consent of the applicant and HPRS.

(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 packet, the examining physician's report, the recommendation of the medical advisor, and other relevant information.

(1) Consideration of a member's application by the disability committee and board shall be limited to the disabling condition(s) listed in the application and listed in the attending physician's report as described in paragraph (B)(2) of this rule that are supported by medical documentation provided to HPRS.

(2) Acts occurring after the application packet is completed and accepted that create new disabling condition(s) or progress the disabling condition(s) described in paragraph (G)(1) of this rule will not be considered by the disability committee or the board. Nothing in this division shall preclude a member from filing a new application for disability benefits.

(H) The disability committee may recommend one or more of the following to the board:

(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) Postpone determination, pending an additional examination, or the submission of additional fact, or

(5) No decision, if the disability committee cannot agree on a recommendation or acquire a majority vote.

(I) No more 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) The right to request reconsideration of the disability committee's decision.

(J) Within ten days of receiving notification of the disability committee's recommendations, the applicant may file a written request for reconsideration. The written request shall be accompanied by a statement from the applicant, his or her counsel and/or attending physician that the request for reconsideration will be based on evidence contrary to the findings of the examining physician or the committee.

(1) The request for reconsideration will be considered at the next regularly scheduled meeting of the disability committee unless rescheduled for the reasons outlined in paragraph (J)(2) of this rule.

(2) Within twenty days of receiving the notification of the disability committee's recommendation, the member must file new medical evidence relative to the disabling condition(s) considered by the disability committee. The member may request one extension of twenty days to submit new medical information. One additional extension, of no greater than twenty days, will be granted if the member can show, and the medical advisor concurs, that additional time is needed to obtain relevant new medical evidence that is already in progress. If additional extensions are granted, the request for reconsideration will be rescheduled to the next available disability committee meeting. HPRS shall void the request for reconsideration if new medical evidence is not received by HPRS in the time described in this paragraph.

(3) Copies of the reports of the examining physician will be sent to the member and the member's agent upon written authorization of the member, unless the release of such reports is otherwise prohibited by law. The medical advisor's recommendation will not, however, be released until the committee has made a recommendation regarding the member's disability application.

(4) The disability committee will consider only new medical evidence and new relevant information submitted in support of the request for reconsideration.

(5) The applicant has the right to appear at the hearing, with or without counsel, to present new relevant evidence and testimony, and

(6) Evidence, information, or other documentation not already submitted in accordance with this rule will not be permitted.

(K) At the conclusion of the reconsideration hearing, the disability committee may recommend one or more of the following to the board:

(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) Postpone determination, pending an additional examination, or the submission of additional fact, or

(5) No decision, if the disability committee cannot agree on a recommendation or acquire a majority vote.

(L) No more 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) The date the board will hear the disability application.

(M) 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. Unless requested by the board, an applicant may not appear before the board. The decision of the board is final.

(N) The member will be notified of the board's action no more than ten days after the board meets and such notice will be sent by certified mail or another method that is acknowledged in writing by member. If benefits are granted, the member shall be advised of the member's right to:

(1) Accept the benefit granted; or

(2) Waive the benefit and continue working

(a) No later than thirty days after receipt of the notice of the board's final action, the member shall elect, on a form provided by the board, either to accept or waive the board's grant of disability benefits.

(b) If no such election is made within the thirty day period provided in paragraph (N)(2)(a) of this rule, the award shall be rescinded. If benefits are accepted but the member fails to terminate employment with the state highway patrol within the thirty day period provided in paragraph (N)(2)(a) of this rule, the award shall be rescinded.

(O) As a condition to granting an application for disability benefits, the member shall agree in writing, on a form provided by the board, to obtain any medical treatment recommended by the examining physician or medical advisor and submit the required medical reports as required by the board.

(1) Such additional medical treatment shall be of common medical acceptance and readily available, and may include, but is not limited to, medicine, alcohol and/or drug rehabilitation, or mechanical devices.

(2) Such additional medical treatment must be an allowable medical expense under HPRS' medical expense benefits program.

(3) The member shall also agree in writing to provide, upon HPRS' request, any existing medical report relevant to the member's disability.

(4) If the member fails to submit a required medical report or does not continue treatment, the member's disability benefit shall be suspended until such report is received by HPRS, the member resumes treatment or the physician providing treatment certifies, and the medical advisor concurs, that treatment is no longer helpful or advisable. If such failure continues for one year, the disability benefit shall be terminated.

(P) Any subsequent application for a disability benefit filed after a denial of a disability application or termination of previously granted disability benefits shall be submitted with medical evidence, to the satisfaction of the medical advisor, supporting progression of the disabling condition or evidence of a new disabling condition.

(Q) A member may withdraw an application packet prior to the disability committee's initial recommendation described in paragraph (G) of this rule.

Replaces: 5505-3-02

Effective: 03/28/2013
R.C. 119.032 review dates: 03/28/2018
Promulgated Under: 111.15
Statutory Authority: 5505.04
Rule Amplifies: 5505.18
Prior Effective Dates: 1/1/1986, 3/28/2002, 3/25/2004, 12/16/2011, 10/27/2012

5505-3-03 Review of eligibility to continue disability retirement benefits.

(A) For the purpose of this rule:

(1) "Medical advisor" and "examining physician" have the same meaning as rule 5505-3-02 of the Administrative Code.

(2) "Benefit recipient" means any person who is receiving disability retirement benefits pursuant to section 5505.18 of the Revised Code.

(B) Every benefit recipient under the age of sixty annually shall be subject to a medical examination by HPRS' examining physician, unless the board's medical advisor certifies that a benefit recipient's disability is ongoing and the board waives the requirement that the benefit recipient undergo an annual medical examination.

(C) Every person under the age of sixty who is receiving disability benefits pursuant to section 5505.18 of the Revised Code shall annually submit a statement of earnings, an attending physician's report, and any other medical or employment information as deemed necessary by the executive director or medical advisor to determine whether the benefit recipient is still disabled as defined by section 5505.18 of the Revised Code. The board may waive the requirement to submit an annual statement of earnings or attending physician's report if the board's medical advisor certifies that a disability benefit recipient's disability is ongoing.

(1) The information required pursuant to paragraph (C) of this rule shall be submitted at a time designated by the executive director, and shall be reported on forms provided by HPRS.

(2) The information required pursuant to paragraph (C) of this rule shall be reviewed by the medical advisor. If the medical advisor determines the benefit recipient may no longer be disabled, HPRS shall:

(a) Schedule a medical examination with an examining physician recommended by the medical advisor.

(b) Provide the benefit recipient with at least fourteen days prior written notice of the time and place of the scheduled examination.

(c) If the examining physician certifies the benefit recipient no longer meets the disability standards set forth in section 5505.18 of the Revised Code, HPRS staff and medical advisor shall present the benefit recipient's file to the board at the next available meeting.

(3) The board shall review the examining physician's report and if it concurs with the examining physician's certification that the benefit recipient no longer meets the disability standards set forth in section 5505.18 of the Revised Code, the disability benefits shall terminate thirty days after the board concurs with the examining physician's certification or upon employment in a position as described in paragraphs (G) and (H) of this rule.

(D) The member will be notified of the board's action no more than ten days after the board meets and such notice will be sent by certified mail or another method that is acknowledged in writing by the member. The benefit recipient will also be notified of the date his or her benefits will terminate, if applicable, and his or her right to appeal.

(E) Within ten days of receiving notification of the board's decision, the benefit recipient may file a written notice of appeal. The notice of appeal shall reference the decision being appealed and shall include the reason(s) why the decision is being appealed. If the benefit recipient does not file a notice of appeal as described in this division, the board's determination made under paragraph (C) of this rule is final.

(1) The notice of appeal will be considered at the next regularly scheduled meeting of the board. Except as provided in this rule, benefits shall not be terminated while an appeal is pending.

(2) Within forty days of receiving the notification of the board's decision, the member must file any evidence he or she would like considered by the board. New disabling conditions and the related medical evidence will not be considered. Extensions will only be granted if the benefit recipient can show, and the board chair concurs, that additional time is needed to obtain relevant new medical evidence that is already in progress. HPRS shall void the notice of appeal if new evidence is not received by HPRS in the time described in this paragraph.

(3) Copies of the reports of the examining physician and medical advisor will be sent to the member and the member's agent upon written authorization of the member, unless the release of such reports is otherwise prohibited by law. However, the medical advisor's recommendation will not be released until the board has made an initial decision regarding the member's disability benefits.

(4) The applicant has the right to appear at the hearing, with or without counsel, to present new testimony.

(5) Evidence, information, or other documentation not already submitted in accordance with this rule will not be permitted.

(6) The board's decision is final.

(F) Nothing in this rule or any waiver granted by the board shall waive any rights of HPRS to request the benefit recipient to undergo a medical examination if information is received at any time which indicates the benefit recipient may no longer be eligible for disability benefits.

(G) Unless competent and credible evidence is submitted to HPRS, a benefit recipient is presumed to be no longer eligible for disability benefits if employed as a law enforcement officer or "member of a fire department" as defined by section 742.01 of the Revised Code and the associated Administrative Rules. Any benefit recipient that is employed as such shall immediately be subject to the termination procedures detailed in paragraph (C) of this rule.

(H) For the purpose of this rule, law enforcement officer includes any "member of a police department" as defined by section 742.01 of the Revised Code and the associated administrative rules and any person that is appointed, commissioned, compensated, designated, employed, engaged, volunteering, or otherwise serving as one of the following:

(1) A sheriff, marshal, deputy marshal, member of the organized police department of a township or municipal corporation, member of a township police district or joint township police district police force, member of a metropolitan housing authority police force established under division (D) of section 3735.31 of the Revised Code, or township constable or a similar job position outside the state of Ohio;

(2) A railroad company police officer governed by sections 4973.17 to 4973.22 of the Revised Code or a similar job position outside the state of Ohio;

(3) A person engaged in the enforcement of Chapter 5743. of the Revised Code on behalf of the department of taxation and designated by the tax commissioner for peace officer training for purposes of the delegation of investigation powers under section 5743.45 of the Revised Code or a similar job position outside the state of Ohio;

(4) An undercover drug agent or a similar job position outside the state of Ohio;

(5) A department of public safety enforcement agent governed by section 5502.14 of the Revised Code or a similar job position outside the state of Ohio;

(6) A natural resources law enforcement staff officer in the department of natural resources governed by section 1501.013 , a park officer governed by section 1541.10 , a forest officer governed by section 1503.29 , a preserve officer governed by section 1517.10 , a wildlife officer governed by section 1531.13 , or a state watercraft officer governed by section 1547.521 of the Revised Code or a similar job position outside the state of Ohio;

(7) A park district law enforcement officer governed by section 511.232 or 1545.13 of the Revised Code or a similar job position outside the state of Ohio;

(8) A conservancy district police officer governed by section 6101.75 of the Revised Code or a similar job position outside the state of Ohio;

(9) A member of a hospital police or security department governed by sections 4973.17 to 4973.22 of the Revised Code or a similar job position outside the state of Ohio;

(10) A veterans home police officer established by section 5907.02 of the Revised Code or a similar job position outside the state of Ohio;

(11) A member of a qualified nonprofit corporation police department established by section 1702.80 of the Revised Code or a similar job position outside the state of Ohio;

(12) A state university law enforcement officer governed by section 3345.04 of the Revised Code or a person serving as a state university law enforcement officer on a permanent basis on June 19, 1978, who has been awarded a certificate by the executive director of the Ohio peace officer training commission attesting to the person's satisfactory completion of an approved state, county, municipal, or department of natural resources peace officer basic training program or a similar job position outside the state of Ohio;

(13) A special police officer in the department of mental health governed by section 5119.14 of the Revised Code or a similar job position outside the state of Ohio;

(14) A special police officer in the department of mental retardation and developmental disabilities governed by section 5123.13 of the Revised Code or a similar job position outside the state of Ohio;

(15) A member of a campus police department established under section 1713.50 of the Revised Code or a similar job position outside the state of Ohio;

(16) A regional transit authority police officer governed by division (Y) of section 306.35 of the Revised Code or a similar job position outside the state of Ohio;

(17) An investigator of the auditor of state governed by section 117.091 of the Revised Code who is engaged in the enforcement of Chapter 117 of the Revised Code or a similar job position outside the state of Ohio;

(18) A special police officer serving on state property pursuant to section 5503.09 of the Revised Code or a person who was serving as a special police officer pursuant to that section on a permanent basis on October 21, 1997, and who has been awarded a certificate by the executive director of the Ohio peace officer training commission attesting to the person's satisfactory completion of an approved state, county, municipal, or department of natural resources peace officer basic training program or a similar job position outside the state of Ohio;

(19) A port authority special police officer governed by section 4582.04 or 4582.28 of the Revised Code or a person serving as a port authority special police officer on a permanent basis on May 17, 2000, who has been awarded a certificate by the executive director of the Ohio peace officer training commission attesting to the person's satisfactory completion of an approved state, county, municipal, or department of natural resources peace officer basic training program or a similar job position outside the state of Ohio;

(20) A municipal corporation special police officer who has been awarded a certificate by the executive director of the Ohio peace officer training commission for satisfactory completion of an approved peace officer basic training program and who is serving at a municipal airport or other municipal air navigation facility that is governed by aviation security rules of the transportation security administration of the United States department of transportation and required by federal laws and regulations to be under a security program or a similar job position outside the state of Ohio;

(21) A PERS law enforcement officer, as defined in section 145.01 of the Revised Code or a similar job position outside the state of Ohio;

(22) A bailiff or deputy bailiff of a court of record in this state who has received a certificate attesting to the person's satisfactory completion of the peace officer training school as required by section 109.77 of the Revised Code or a similar job position outside the state of Ohio;

(23) A parole, corrections, or probation officer or a similar job position outside the state of Ohio;

(24) An employee of the department of youth services who is designated by the director of youth services pursuant to division (A)(1) of section 5139.53 of the Revised Code and who has received the training described in division (B)(1) of that section;

(25) A federal protective service officer or a federal marshal, including, but not limited to, a court security officer hired by the U.S. marshall service.

(I) Any benefit recipient who desires to be reexamined in conjunction with a request to return to active duty status shall first be required to submit a medical examination report from a physician of his or her choice, which certifies that the benefit recipient is no longer eligible for disability benefits. The benefit recipient shall then be subject to the process described in paragraph (C) of this rule.

(J) Failure to comply with the provisions identified in this rule may result in the suspension of disability and healthcare benefits.

(1) Unless for good cause shown, the disability benefit recipient shall be presumed to have refused to submit to the medical examination by an examining physician if HPRS has scheduled such examinations two times and such disability benefit recipient has canceled, rescheduled, or failed to submit to such scheduled medical examinations.

(2) The refusal of a benefit recipient to submit to a medical examination or submit employment information requested pursuant paragraphs (B) and (C) of this rule shall result in the suspension of disability benefits and health care or prescription benefits selected by the disability benefit recipient, if any, upon thirty days prior written notice to the benefit recipient and shall continue until compliance.

(a) The suspension of disability and health care or prescription drug benefits selected by the disability benefit recipient, if any, shall be effective on the first day of the month immediately following the expiration of the aforementioned thirty day notice period.

(b) In the event the benefit recipient submits to the required medical examination or information after the aforementioned thirty day notice period, HPRS will reinstate the benefit recipient's disability and health care or prescription drug benefits selected by the benefit recipient, if any, on the first day of the month immediately following the benefit recipient's compliance.

Replaces: 5505-3-03

Effective: 03/28/2013
R.C. 119.032 review dates: 03/28/2018
Promulgated Under: 111.15
Statutory Authority: 5505.04
Rule Amplifies: 5505.18
Prior Effective Dates: 2/15/81, 1/1/86, 11/2/89, 10/1/1996

5505-3-04 Reemployed retirants.

(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) A DROP participants' pension eligibility date is the day following the event terminating the member's participation in DROP as defined by sections 5505.55 , 5505.56 , and 5505.58 of the Revised Code.

(4) 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: 02/01/2013
R.C. 119.032 review dates: 11/16/2012 and 02/01/2018
Promulgated Under: 111.15
Statutory Authority: 5505.07
Rule Amplifies: 5505.161
Prior Effective Dates: 5/23/2007, 10/21/2005, 8/1/1992

5505-3-05 Selection of payment plan.

(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

5505-3-06 Board review of employment termination.

(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

5505-3-07 Deferred retirement option plan.

(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.

(1) A member's election to participate in DROP is effective the date an application is filed with HPRS.

(2) A member may select a DROP effective date that coincides with the last day of a future state highway patrol pay period. If a future date is selected, an application shall not be considered filed until that date. If a future date is not selected, the member's application is considered filed when received by HPRS.

(3) A member that elects to participate in DROP with an effective date that is not the last day of a state highway patrol's pay period shall forfeit all service credit earned after the last day of the employer's payroll period immediately prior to the DROP effective date.

(B) A DROP participant may apply for disability retirement pursuant to sections 5505.18 and 5505.58 of the Revised Code and rule 5505-3-02 of the Administrative Code.

(1) HPRS shall void an application for disability retirement upon an event that terminates the member's DROP participation as defined by section 5505.55 of the Revised Code.

(2) A DROP participant who qualifies for disability retirement and elects to receive benefits pursuant to division (A)(1) or (B) of section 5505.58 of the Revised Code shall be age and service retired and not subject to the requirements of sections 5505.18 of the Revised Code or rule 5505-3-03 of the Administrative Code.

(3) A DROP participant who qualifies for disability retirement and elects to receive benefits pursuant to division (A)(2) of section 5505.58 of the Revised Code shall be disability retired and subject to the requirements of section 5505.18 of the Revised Code and rule 5505-3-03 of the Administrative Code.

(4) A member that is receiving disability retirement benefits pursuant to division (A)(2) of section 5505.58 of the Revised Code that returns to active service will be considered an active member and must submit a new application for DROP. Amounts previously forfeited pursuant to section 5505.58 of the Revised Code shall not be accrued to the members benefit.

(5) A member whose participation in DROP terminates as a result of qualifying for disability pursuant to section 5505.58 of the Revised Code shall not forfeit the interest credited under division (C) of section 5505.54 of the Revised Code except as provided in division (A)(2) of section 5505.58 of the Revised Code.

(C) Interest shall continue to accrue pursuant to division (C) of section 5505.54 of the Revised Code after a member's participation in DROP ceases.

(D) 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 since the DROP effective date as described in paragraph (B) of this rule.

(E) 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 since the DROP effective date as described in paragraph (B) of this rule.

(F) A member participating in DROP 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.

(G) Provided that the other candidacy eligibility criteria are met, a member participating in DROP 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.

(H) A retirement board trustee who elects participation in DROP shall be permitted to serve out the remainder of the elected term of office. This paragraph does not apply to appointed members or the superintendent of the state highway patrol.

(I) Pursuant to section 5505.54 of the Revised Code, interest on DROP account balances shall be calculated at the Barclays U.S. Government/Credit Intermediate Index, less a thirty-five basis point account maintenance fee. The interest rate shall be established at June thirtieth and December thirty-first for the following six-month period.

Replaces: 5505-3-07

Effective: 07/18/2013
R.C. 119.032 review dates: 07/18/2018
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, 8/8/2011

5505-3-08 Federal tax compliance provisions.

(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 of 1986, 26 U.S.C.A. 401(a)(8) .

(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 of 1986, 26 U.S.C.A. 401(a)(9) 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 of 1986, 26 U.S.C.A. 401(a)(9) .

(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 of 1986, 26 U.S.C.A. 401(a)(9) , 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 of 1986, 26 U.S.C.A. 401(a)(9) , 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 of 1986, 26 U.S.C.A. 401(a)(9) , 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 of 1986, 26 U.S.C.A. 401(a)(9)(G) .

(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 of 1986, 26 U.S.C.A. 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)(A) and 408(A) of the Internal Revenue Code of 1986, 26 U.S.C. A. 401(a)(31)A) and 408(A). 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 of 1986, 26 U.S.C.A. 402(c)(11) .

(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 section 401(a)(17)(B) of Internal Revenue Code of 1986, 26 U.S.C.A. 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 of 1986, 26 U.S.C.A. 415 (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 of 1986, 26 U.S.C.A 125 , 132(f) , 402(e)(3) , 402(h) , 403(b) , or 457 . Effective January 1, 2009, compensation shall include differential wage payments as defined in section 3401(h)(2) of the Internal Revenue Code of 1986, 26 U.S.C.A. 3401(h)(2) .

(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 of 1986, 26 U.S.C.A 401(a)(31)(B) .

(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 of 1986, 26 U.S.C.A. 415 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 of 1986, 26 U.S.C.A. 415 (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.

(K) Effective January 1, 2007, notwithstanding any provision in Chapter 5505. 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 of 1986, 26 U.S.C.A. 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 accrual relating to the period of qualified military service) that would be provided under Chapter 5505. of the Revised Code had the member resumed employment and then terminated employment on account of death.

Effective: 03/28/2013
R.C. 119.032 review dates: 01/11/2013 and 03/28/2018
Promulgated Under: 111.15
Statutory Authority: 5505.04
Rule Amplifies: 5505.17 , 5505.175 , 5505.177 , 5505.19 , 5505.21
Prior Effective Dates: 8/8/2011, 12/31/12 (Emer)