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