(A) "Interim payment" is defined as the stream of monthly cash partial payments made to a member of Ohio police & fire pension fund (OP& F) in order to speed the initiation of the pension or benefit to which he/she may be entitled while OP& F determines the final pension to be paid to such person.
(B) Any OP& F member who has met all the qualifications for service or disability retirement under section 742.37 or 742.39 of the Revised Code, respectively, who has filed all forms or documents necessary to process his/her application, and who is not receiving a pension or benefit from OP& F is eligible to receive an interim pension or benefit payment described in paragraph (C) of this rule.
(C) Any OP& F member who meets the requirements set forth in paragraph (B) of this rule shall be paid an interim payment under the following conditions:
(1) The receipt of an interim payment is as binding on the member as the receipt of the regular payment of a pension or benefit. The retirement is permanent, and cannot be cancelled, the effective date cannot be changed, or the type reclassified, except that a member may elect receiving interim payments without waiving the right to appeal a disability award, as provided for in rule 742-3-05 of the Administrative Code.
(2) Ultimately, all interim and adjusting payments will equal the full pension or benefit which a retirant is entitled to receive from OP& F.
(3) The calculation of the interim payment amount is based on the computation criteria or policy approved by OP& F's board from time to time.
(4) The member shall be deemed to consent to the recovery of any overpayment by deduction from his/her monthly pension or benefit. The recovery must be accomplished in a period not to exceed the period over which the overpayment occurred.
(5) The member shall be informed that once he/she negotiates the first interim payment, he/she can no longer purchase or reinstate any service credit. For purposes of this rule, negotiation will include the member or his/her authorized agent cashing, negotiating, or depositing of the warrant issued to the member.
(6) While a member is on interim payments, OP& F shall not make any payments for cost of living adjustments, but any cost of living allowances due shall be paid once the member converts to a final payment.
(D) As required by law, the board shall require that the interim payment amount for a married member be reduced based on the member ultimately selecting a plan of payment naming the member's spouse as beneficiary, unless the spouse consents to a different designation, along with the designations required under any other court orders that OP& F may have on file that require the member to elect a plan of payment 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, but subject to the limitations outlined in section 742.3711 of the Revised Code and rules 742-3-07 and 742-3-24 of the Administrative Code. A member who is receiving an interim payment can change his/her payment plan any time prior to negotiating the first adjusting or regular benefit payment that represents the final benefit amount payable to the member, but subject to the limitiations outlined in section 742.3711 of the Revised Code and rules 742-3-07 and 742-3-24 of the Administrative Code.
(E) No interim payment can be made to a member unless his/her former employer has certified the last day the former employee earned compensation by virtue of working or using accumulated leave to remain on active payroll status.
(F) The receipt of an interim payment has no effect whatsoever on any election made pursuant to division (B) of section 742.3716 of the Revised Code.
(G) In the event the member dies prior to negotiating his/her adjusting payment and the married member is receiving an interim payment under a payment plan that provides for less than fifty per cent of his/her reduced allowance to be paid to a surviving spouse, then the surviving spouse is entitled only to the allowance, if any, provided by the most recent payment plan selected by the member.
(H) For designation of beneficiaries made under division (A)(4) of section 742.3711 of the Revised Code, the member will not be permitted to change the designation of beneficiaries during the interim payment process, but will be permitted to change the amount payable to the beneficiary if proper paperwork is submitted to and approved by OP& F.
R.C. 119.032 review dates: 01/18/2012 and 04/05/2017
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.37, 742.39
Prior Effective Dates: 5/23/87, 6/16/91, 5/1/00, 12/8/00, 02/16/06, 10/26/06 (Emer.), 01/12/2007