Chapter 742-4 Deferred Retirement Option Plans

742-4-01 General DROP definitions.

Capitalized terms used in rules 742-4-01 to 742-4-19 of the Administrative Code shall have the following meaning:

(A) "Average Annual Salary" is defined in division (G) of section 742.01 of the Revised Code.

(B) A "DROP Participant" shall mean an eligible member who files the election (as hereinafter defined) with OP&F and the election has been fully completed and properly completed by the member.

(C) "OP&F" shall mean the Ohio police and fire pension fund created under Chapter 742. of the Revised Code.

(D) "DROP Benefit" shall mean the benefit calculated for a DROP participant in accordance with the provisions of section 742.442 of the Revised Code and rule 742-4-06 of the Administrative Code, but subject to the provisions of division (C) of section 742.444 and section 742.445 of the Revised Code.

(E) "Effective Date" is defined in rule 742-4-03 of the Administrative Code.

(F) "Election" shall mean the election form that OP&F requires in order for a member to participate in DROP, as such form may be amended or modified from time to time by OP&F. For those elections that have been filed with OP&F, it shall also mean the fully and properly completed required election that is signed by the member.

(G) "Employer's First Payroll Reporting Period" shall mean the first day of the employer's first payroll reporting period reported to OP&F under section 742.32 of the Revised Code that immediately follows the DROP participant's effective date, as determined by OP&F according to its books and records.

(H) "Family Medical Leave Act" is defined in rule 742-4-12 of the Administrative Code.

(I) "Member" shall have the meaning set forth in division (E) of section 742.01 of the Revised Code, as more fully explained in divisions (A)(2) and (B)(2) of section 742.01 of the Revised Code .

(J) "Retirement Allowance" is defined in division (I) of section 742.01 of the Revised Code, as more fully described in rule 742-4-17 of the Administrative Code.

Effective: 01/16/2014
R.C. 119.032 review dates: 10/31/2013 and 01/16/2019
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.43
Prior Effective Dates: 12/31/02 (Emer.), 4/6/03, 10/6/2003

742-4-02 Implementation date of deferred retirement option plan.

As provided for in section 742.43 of the Revised Code, the date of the initial implementation of the deferred retirement option plan (DROP) shall be January 2, 2003.

R.C. 119.032 review dates: 04/22/2013 and 04/06/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.43
Prior Effective Dates: 04/06/2003

742-4-03 Effective date of DROP election.

(A) Unless the member has properly rescinded his/her DROP election or the terms of paragraph (B) of this rule apply, the "Effective Date" of an eligible member's election to participate in DROP shall be the later of:

(1) The first day of the employer's first payroll reporting period that immediately follows OP&F's receipt of the election, but if the payroll reporting period end date falls on the thirtieth day of the month, the first day of the employer's first payroll reporting period shall be the first day of the next month; or

(2) The date on which the member is eligible to participate in DROP, as determined by OP&F based on its books and records.

(B) For those members who file an election to participate in DROP with OP&F and do not properly rescind his/her election according to the terms of rule 742-4-04 of the Administrative Code, but do not meet the age or service requirements of division (C)(1) of section 742.37 of the Revised Code, the member shall still be considered "eligible to retire" for the purpose of electing to participate in DROP according to the terms of section 742.44 of the Revised Code only if the member's eligibility to participate in DROP is not more than ninety days after the date on which OP&F received the member's election, as determined by OP&F's books and records. In the event the member's first eligibility date to participate in DROP is more than ninety days after the date on which OP&F received the member's election, as determined by OP&F's books and records, the member shall not be considered "eligible to retire" according to the terms of section 742.44 of the Revised Code and the member's election shall be null and void and of no force and effect.

(C) In the event a member's election is invalid, as outlined in paragraph (B) of this rule, the member shall not be foreclosed from filing a subsequent election to participate in DROP. In all events, however, the member has only one opportunity to participate in DROP.

(D) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 01/16/2014
R.C. 119.032 review dates: 10/31/2013 and 01/16/2019
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.43 , 742.44
Prior Effective Dates: 12/31/02 (Emer.), 4/6/2003, 11/3/2003

742-4-04 Rescission of DROP election.

(A) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01oftheAdministrativeCode(definitions).

(B) A DROP participant may rescind his/her election to participate in DROP only upon the occurrence of either of the following events:

(1) OP& F receives a written authorization/notice from the DROP participant that directs OP& F to rescind such election and this written authorization/notice is received by OP& F within thirty days after OP& F received the DROP participant's election, as determined by OP& F based upon its books and records.

(2) In the event there is at least a ten percent difference between the last OP& F "estimate" of the DROP benefit amount prior to the person filing his/her Election and the actual DROP benefit determined by OP& F (i.e. the pension benefit determined in accordance with section 742.442 of the Revised Code), OP& F receives a written authorization/notice from the DROP participant that directs OP& F to rescind such election and this written authorization/notice is received by OP& F within thirty days of OP& F's certified mailing that notifies the member of the difference between the OP& F "estimate" and actual DROP benefit and the DROP participant's right to rescind his/her election to participate in DROP. Notwithstanding the foregoing, the right to rescind provided for in this subsection shall not apply to estimates done through the calculator on OP& F's website, whether done by OP& F staff or the member.

(3) Unless the notice of rescission is not valid in accordance with the terms of this rule (in which case it will not be effective), all notice of rescissions are irrevocable once received by OP& F so the DROP participant shall have no opportunity to change his/her decision to rescind his/her participation in DROP.

(4) In no event shall OP& F process any rescission under paragraph (B)(2) of this rule if it is subject to any terms and conditions.

(C) In the event OP& F receives a notice to rescind a DROP participant's election to participate in DROP and it does not meet the conditions of paragraph (B)(2) of this rule, OP& F shall not process the rescission for such DROP participant and the DROP participant shall have no right to rescind his/her election to participate in DROP.

(D) In the event a DROP participant properly rescinds his/her election to participate in DROP in accordance with the provisions of paragraph (B)(2) of this rule, the member shall not be foreclosed from making another election to participate in DROP.

R.C. 119.032 review dates: 04/22/2013 and 04/06/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.44
Prior Effective Dates: 04/06/2003

742-4-05 Purchase of service credit.

(A) Except for the purchase of service credit done through an irrevocable payroll deduction agreement, which shall be governed by the provisions of rule 742-4-16 of the Administrative Code, OP& F shall offer the member the right to purchase the service credit prior to his/her entry into DROP. In the event the member is given the right to purchase the service credit by OP& F and fails to purchase the service credit prior to his/her effective date, OP& F shall calculate the monthly benefit under section 742.442 of the Revised Code based on the member's service credit and "salary" as of the effective date.

(B) In the event the member is given the right to purchase the service credit by OP& F and fails to purchase the service credit prior to his/her DROP effective date, the member shall be deemed to waive his/her right to purchase service credit.

(C) For purposes of Section 742.21 of the Revised Code, the requirement that a member "is not receiving a pension or benefit payment" shall not include DROP participants, unless the DROP participant:

(1) Rescinds his/her Election in accordance with the terms of rule 742-4-02 of the Administrative Code:

(2) Ceases participation in DROP in accordance with section 742.445 of the Revised Code, or

(3) Fails to terminate active service in the police or fire department at the end of the eight-year period that begins on the effective date, as such period is calculated in accordance with the terms of rule 742-4-10 of the Administrative Code.

(D) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code(definitions).

R.C. 119.032 review dates: 04/22/2013 and 04/06/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.21 , 742.442
Prior Effective Dates: 04/06/2003, 04/01/2008

742-4-06 Calculation of DROP benefit.

(A) For purposes of calculating the DROP benefit, OP& F shall determine the monthly pension amount that would have been payable to the DROP Participant had the Member elected to receive normal service retirement benefits under division (C)(1) of section 742.37 of the Revised Code, according to the requirements set forth in divisions (G), (K) and (L) of section 742.01 of the Revised Code, rule 742-3-02 of the Administrative Code and this rule.

(B) For purposes of paragraphs (C)(1)(b), (c), and (d) of rule 742-3-02 of the Administrative Code, OP& F shall determine the holidays, longevity, stress pay and similar special payments to be used in the calculation of average annual salary, based on the following: (1) holidays, longevity, hazard, stress pay and similar special payments paid to the DROP participant during the calculation period; or (2) if a portion of the holidays, longevity, hazard, stress pay and similar special payments are disallowed due to such "salary" being outside of the beginning calculation period, but the holidays, longevity, stress pay, or similar special payments are earned at the end of the calculation period, but not paid, OP& F shall include such amounts with the calculation based on the amount paid to the DROP participant and reported by the DROP participant's employer to OP& F for the immediate preceding period for the same type of holidays, longevity, stress pay, or similar special payments, as the case may be.

(C) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code(definitions).

R.C. 119.032 review dates: 04/22/2013 and 04/06/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.442
Prior Effective Dates: 04/06/2003

742-4-07 Accrual of member's contributions.

(A) For purposes of accruing a DROP participant's contributions in accordance with the provisions of division (B)(1)(a), (B)(1)(b), (B)(2)(a), or (B)(2)(b) of section 742.443 of the Revised Code, the term "thereafter" shall mean the end of the payroll reporting period reported to OP& F in accordance with applicable statutory provisions prior to the anniversary date referenced in each subsection, as more fully illustrated in the following examples.

For example, if the member files his/her election with OP& F on January 3, 2003, but the end of the next payroll period reported to OP& F is January 23, 2003, the effective date of the DROP election is January 24, 2003, as provided for in this rule , even though this payroll will be included in the February payroll that is reported to OP& F in March 2003. In such case, beginning with the January 2005 payroll reported to OP& F, seventy-five per cent of the DROP participant's contributions would accrue to the DROP participant's benefit until the next change in contributions under section 742.443 of the Revised Code. Using this same example, if the last full payroll reporting period for 2005 falls on January 20, 2005, then beginning with the January 21, 2006 payroll period reported to OP& F, one hundred per cent of the DROP Participant's contributions would accrue to his/her benefit. For members whose election to participate in DROP is effective after July 1, 2013, the percentage rates for the accrual of contributions shall be the following, which are set forth in division (B)(2) of section 742.443 of the Revised Code: fifty per cent for years one through three; seventy-five per cent for years four through six; and one hundred per cent for years seven and eight.

(B) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 02/04/2013
R.C. 119.032 review dates: 11/20/2012 and 02/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.443
Prior Effective Dates: 12/31/02 (Emer), 4/6/2003

742-4-08 COLA effective dates for DROP participants.

(A) For purposes of determining the effective date of a cost-of-living allowance ("COLA") set forth in section 742.3716 of the Revised Code for DROP participant, the following shall apply:

(1) A member whose election to participate in DROP is effective on or before July 1, 2013 and who is fifty-five years of age and already receiving a COLA will continue to receive it at three per cent per annum.

(2) A member whose election to participate in DROP is effective on or before July 1, 2013 and who is not yet receiving a COLA as of July 1, 2013 will not receive a COLA until he or she is fifty-five years of age and has participated in the plan for one year. The payment of a COLA will commence on the member's DROP effective date after the member has attained the age of fifty-five and a prorated COLA will be paid for the period from the member's fifty-fifth birthday to the member's DROP effective date. The member's DROP effective date will remain the effective date for all future annual COLAs.

(3) For a member whose election to participate in DROP is effective on or before July 1, 2013 and who has been receiving an annual COLA but is not yet fifty-five years of age by July 1, 2013, the payment of additional COLAs shall be discontinued until the member has attained the age of fifty-five. The payment of COLAs will resume on the member's DROP effective date after the member has attained the age of fifty-five and a prorated COLA will be paid for the period from the member's fifty-fifth birthday to the member's DROP effective date. The member's DROP effective date will remain the effective date for all future annual COLAs.

(4) For a member whose election to participate in DROP is effective after July 1, 2013, no COLAs shall be added to the member's DROP accrual while the member is participating in DROP pursuant to section 742.3716 of the Revised Code.

(B) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 02/04/2013
R.C. 119.032 review dates: 11/20/2012 and 02/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.3716
Prior Effective Dates: 12/31/02 (Emer), 4/6/2003

742-4-09 Calculation of interest.

(A) Effective the first business day of the second quarter of 2012, interest shall be calculated quarterly at an adjusted rate based on the "10-Year U.S. Treasury Note Business Day Series," as published by the board of governors of the federal reserve. In no event, however, shall the rate of interest exceed five per cent.

(B) Beginning January 2, 2003, OP& F shall calculate interest on the DROP participant's DROP benefit on the last day of each month according to the following provisions:

(1) Interest on the proper amount of employee contributions will be based on the earlier of the date cash is received or the date that the monthly report of employee deductions is due; and

(2) Interest on the monthly pension benefit calculated in accordance with section 742.442 of the Revised Code will be based on the first day of each month, regardless of when posted by OP& F.

(C) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 05/17/2012
R.C. 119.032 review dates: 03/01/2012 and 05/17/2017
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.443
Prior Effective Dates: 04/06/2003, 03/19/2007

742-4-10 Maximum period for DROP participation.

(A) For purposes of determining the maximum eight-year period for DROP participation, this date will be based on three hundred sixty-five calendar days from the effective date, regardless of the periods during which contributions were paid on behalf of the member. For example, if the member's effective date is January 18, 2003, the last day of the eight-year period shall end on January 17, 2011.

(B) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code(definitions).

R.C. 119.032 review dates: 04/22/2013 and 04/06/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.444
Prior Effective Dates: 04/06/2003

742-4-11 Termination of a member's active service in an police or fire department.

(A) For purposes of section 742.444 of the Revised Code, "termination of a member's active service in a police or fire department" is presumed to occur if OP& F does not receive consecutive reports or payments of contributions from an employer on behalf of the DROP participant, regardless of which employer reports or pays such contributions to OP& F, as more fully illustrated in the following examples. For example, if the DROP participant works for city A through January 25, 2003 and then begins employment with city B, who is a employer within the meaning assigned to it in division (D) of section 742.01 of the Revised Code, on February 1, 2003, then no termination would exist. On the other hand, if the DROP participant terminated employment with city A on January 25, 2003 and did not resume employment in an OP& F covered position until March 1, 2003, a termination would result under section 742.444 of the Revised Code. This presumption may be rebutted by the member or employer by timely submitting documentation to OP& F that shows the continuation of the employment relationship within the time period requested by OP& F.

(B) Employer shall have the meaning assigned to it in division (D) of section 742.01 of the Revised Code.

(C) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code(definitions).

Effective: 08/28/2008
R.C. 119.032 review dates: 06/11/2008 and 08/28/2013
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.444
Prior Effective Dates: 4/6/2003

742-4-12 Impact of family medical leave.

(A) "Family Medical Leave Act" shall mean the statutory provisions outlined in the "Family and Medical Leave Act of 1993," 29 U.S.C. 2601 - 2653 .

(B) For members who are DROP participants, but elect to exercise his/her rights under the Family Medical Leave Act (FMLA), an election to exercise his/her rights under FMLA shall not extend the time during which the DROP participant can participate in DROP.

(C) If the DROP participant uses vacation or sick leave so that he/she can stay on his/her employer's payroll, contributions shall be accrued for his/her benefit according to section 742.443 of the Revised Code and rule 742-4-06 of the Administrative Code. In cases where no "salary" is paid to the DROP participant as a result of this election, no accrual of contributions shall be made for his/her benefit.

(D) This rule shall be subject to the provisions of division (C) of section 742.444 and section 742.445 of the Revised Code.

(E) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 08/22/2013
R.C. 119.032 review dates: 06/06/2013 and 08/22/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.443
Prior Effective Dates: 12/31/02 (Emer), 4/6/2003

742-4-13 Impact of military leave.

(A) This rule shall apply to members who are DROP participants, called into active service, and who are granted service credit for the time period during which they were called into active service while a DROP participant, pursuant to section 742.521 of the Revised Code.

(B) In the event the member is on active service at the time of his/her effective date into DROP, OP& F shall credit the member's contributions required under division (B)(1) or (B)(2) of section 742.443 of the Revised Code, in accordance with the provisions of paragraph (D) of this rule and shall recalculate the service credit at the time of the DROP participant's effective date and corresponding DROP benefits if and when the service credit is granted in accordance with section 742.521 of the Revised Code.

(C) In cases where the member is called into active service after his/her effective date into DROP, OP& F shall credit the member's contributions required under division (B)(1) or (B)(2) of section 742.443 of the Revised Code, in accordance with the provisions of paragraph (D) of this rule.

(D) In determining the member's contributions under paragraphs (B) and (C) of this rule, as the case may be, OP& F shall determine such contributions based on the contributions allocated for the member's benefit based on "salary" reported by the member's employer during that time period during which the DROP participant was in active service, which is based on the rate the employee would have received but for the period of service, including any pay raises.

(E) All determinations of "salary" shall be consistent with the provisions of division (L) of section 742.01 of the Revised Code and rules 742-3-02 and 742-4-17 of the Administrative Code ("Calculation of DROP Benefits").

(F) The amount provided for in paragraph (D) of this rule shall only be included for crediting the member's contributions according to division (B)(1) or (B)(2) of section 742.443 of the Revised Code if the member pays to OP& F the difference between the member contributions paid by his/her employer and the actual member contributions due within three times the member's period of uniformed service, but no more than five years, which shall start on the date of the DROP participant's reemployment. All amounts shall be paid at no interest to the member.

(G) This rule shall be subject to the provisions of division (C) of section 742.444 and section 742.445 of the Revised Code.

(H) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 02/04/2013
R.C. 119.032 review dates: 11/20/2012 and 02/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.444
Prior Effective Dates: 12/31/2002 (Emer.), 4/6/2003, 8/28/2008

742-4-14 Impact of irrevocable payroll deduction on DROP.

(A) For the purchase of service credit done through an irrevocable pre-tax payroll deduction agreement that provides for the purchase of service credit beyond the member's effective date and which was entered into before the DROP participant's effective date, the Member shall not be permitted to terminate such payroll deduction, but the terms of this rule shall apply.

(B) For those DROP participants who meet the criteria of paragraph (A) of this rule, OP& F shall calculate the monthly DROP benefit under section 742.442 of the Revised Code based on the service credit actually purchased under such payroll deduction plan as of the member's effective date, subject to the limited recalculation done pursuant to paragraph (C) of this rule.

(C) For those DROP participants who meet the criteria of paragraph (A) of this rule and who complete the irrevocable pre-tax payroll deduction agreement, OP& F shall recalculate the monthly DROP benefit under section 742.442 of the Revised Code based on the service credit actually purchased under such payroll deduction plan and OP& F shall credit that increased benefit for the DROP participant's benefit, beginning the month following the month in which such purchase of service credit was completed; provided, however, that this shall not result in the recalculation of DROP benefits already calculated under section 742.442 of the Revised Code.

(D) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code(definitions).

R.C. 119.032 review dates: 06/04/2013 and 06/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.21 , 742.442
Prior Effective Dates: 4/6/2003

742-4-15 Optional plan of payment.

(A) If, as part of the DROP election, a DROP participant elected an optional plan of payment under section 742.3711 of the Revised Code to have the member's monthly pension calculated as a retirement allowance that continues or is paid to a surviving beneficiary, the DROP participant shall be eligible to cancel such optional plan or continuation of all or part of the allowance in accordance with the provisions of division (B) of section 742.3711 of the Revised Code.

(B) Notwithstanding the provisions of paragraph (A) of this rule, a DROP participant shall not be eligible to exercise the rights under division (C) of section 742.3711 of the Revised Code until the DROP participant has filed an application for retirement with OP&F under division (C)(1) of section 742.37 of the Revised Code. In the case of a member who is required by a court order to designate a former spouse as a beneficiary, the provisions of rule 742-3-28 of the Administrative Code shall apply.

(C) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 12/12/2013
R.C. 119.032 review dates: 09/25/2013 and 12/12/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.444
Prior Effective Dates: 12/31/02 (Emer.), 04/06/2003, 08/28/2008

742-4-16 Selection of distributions.

(A) A DROP participant who is eligible for distributions under division (B)(3) of section 742.444 of the Revised Code may select periodic payments under division (B)(3)(b) of section 742.444 of the Revised Code according to the following methods:

(1) Partial distributions, which are one-time payments and not recurring, in a gross amount equal to or greater than one thousand dollars per request, with a maximum of four distributions being made by OP&F during a calendar year; and

(2) Monthly distributions in a gross amount equal to or greater than one hundred dollars per payment, which will be paid on a monthly basis until OP&F receives proper written direction from the DROP participant to change such selection; and

(3) Notwithstanding the foregoing provisions , the final distribution shall be a one-time payment in the gross amount due the DROP participant, according to OP&F's books and records.

(B) If an eligible DROP participant elects a partial distribution, this distribution may consist of multiple methods of payment and such request will constitute one partial distribution for purposes of the limits set forth in paragraph (A)(1) of this rule. For example, a member may request a partial DROP distribution and choose to rollover a portion of the partial distribution to an eligible account and have the balance of the partial distribution paid directly to him or her and this would constitute one partial distribution of DROP benefits.

(C) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code (definitions).

Effective: 12/12/2013
R.C. 119.032 review dates: 09/25/2013 and 12/12/2018
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.444
Prior Effective Dates: 12/31/02 (Emer.), 04/06/2003, 12/27/05 (Emer.), 03/20/2006, 08/28/2008

742-4-17 Retirement allowance.

For purposes of determining the "retirement allowance" under section 742.3714 of the Revised Code, this shall be the amount calculated by OP& F pursuant to section 742.442 of the Revised Code.

R.C. 119.032 review dates: 06/04/2013 and 06/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.3714
Prior Effective Dates: 4/6/2003

742-4-18 Default plan of DROP benefit.

Unless OP& F receives a written notice of distribution from a surviving spouse or duly named beneficiary, as the case may be, for any monies properly due such person under division (C) of section 742.446 of the Revised Code within thirty days of OP& F's notice to such person of the final DROP benefit to be distributed to that person under the foregoing statutory provision, OP& F will process all payments to the appropriate beneficiary based on a lump sum distribution. This default plan of payment, however, will not apply in the event that OP& F has no records to determine the surviving spouse or beneficiary of such payments or the address of such surviving spouse or duly named beneficiary.

R.C. 119.032 review dates: 06/04/2013 and 06/04/2018
Promulgated Under: 111.15
Statutory Authority: 742.10 , 742.43
Rule Amplifies: 742.446
Prior Effective Dates: 4/6/2003

742-4-19 DROP benefits at death.

(A) For purposes of paying DROP benefits under division (B)(1) of section 742.446 of the Revised Code, the Ohio police and fire pension fund (OP& F) may require receipt of the following documents from the DROP participant's surviving spouse, designated beneficiary or estate, as the case may be:

(1) Marriage certificate, if applicable;

(2) Birth certificate, if applicable;

(3) Letters of authority from the DROP Participant's executor/executrix or administrator/administratrix, if applicable and as the case may be;

(4) Application for benefits in the form provided by OP& F;

(5) A complete copy of the trust agreement if a trust has been designated as the beneficiary of DROP benefits pursuant to rule 742-3-22 of the Administrative Code;

(6) Any other documentation requested by OP& F for the distribution of funds.

(B) Capitalized terms used in this rule shall have the meaning assigned to them in rule 742-4-01 of the Administrative Code.

Effective: 09/27/2009
R.C. 119.032 review dates: 07/13/2009 and 09/27/2014
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.446
Prior Effective Dates: 5/9/2004