Pursuant to section 3307.392 of the Revised Code, the retirement board hereby establishes a death benefit plan for additional lump-sum payments to the beneficiary or beneficiaries of members granted service or disability benefits.
(A) An election to participate in the plan hereby established shall be made on the application for benefits by a member granted service or disability benefits effective on or after October 1, 1989. Such elections to participate shall specify the amount of the additional lump-sum from options offered by the retirement board and shall authorize deduction of the cost to participate from each monthly benefit.
(B) A lump-sum payment in the amount selected by a participant shall be made to the beneficiary or beneficiaries eligible to receive payment of the lump-sum death benefit provided by section 3307.661 of the Revised Code if the death of a deceased participant occurred on or after the following date:
(1) The effective date of service retirement; or
(2) The first day of the seventh month following the effective date of the disability benefit;
(3) In the case of a recipient of service or disability benefit who elects participation or increased participation pursuant to paragraph (D) of this rule, the first day of the seventh month of deduction for such participation or increased participation.
(C) In the event of the death of a participating benefit recipient prior to the date specified in paragraph (B) of this rule, additional lump-sum payments shall not be payable, but payment of the monthly costs deducted from monthly benefits shall be made to the beneficiary or beneficiaries eligible to receive payment of the lump-sum death benefit provided by section 3307.661 of the Revised Code.
(D) The recipient of a disability or service benefit who does not elect participation pursuant to paragraph (A) of this rule when first eligible to do so may elect participation during the three month period immediately before the end of the month the recipient attains age sixty-five, or during open enrollment periods if established by the retirement board. The recipient of a disability or service benefit who elected participation pursuant to paragraph (A) of this rule and specified an additional lump-sum payment less than the maximum amount may also, during the three month period immediately before the end of the month the recipient attains age sixty-five, or during open enrollment periods if established by the retirement board, elect an increased amount. The election for participation or increased participation under this paragraph shall be made on a form provided by the retirement board and received by the retirement board on or before the last business day of the month of attaining age sixty-five or by the date specified in any open enrollment period if established by the retirement board. The form shall specify the amount of the additional lump-sum elected and shall authorize deduction effective with the first benefit payment following the attainment of age sixty-five or the date specified in any open enrollment period if established by the retirement board.
(E) Any recipient of disability or service benefits who has elected additional lump-sum death payments pursuant to this rule may terminate participation in the plan hereby established. Notice that the recipient has chosen to terminate participation shall be provided in writing, shall be irrevocable, and if received on or before the fifteenth of the month, shall be effective on the first day of the following month. If received after the fifteenth of the month, the effective date of termination shall be the first day of the second full month following receipt by the retirement board of notice of termination. Recipients of disability benefits shall be ineligible for participation in the plan hereby established upon the termination of disability benefits. No refund or payment of costs deducted shall be payable in the event of termination of disability benefits or in the event the additional lump-sum death payment is terminated at the request of a service or disability recipient.
(F) The retirement board shall deduct monthly costs for participation in the plan hereby established at rates adopted by the retirement board as determined by the actuary to be sufficient to cover the additional liability resulting from participation by recipients of service and disability benefits, based upon attained age and benefit type at the time each additional lump-sum death payment amount begins as set forth in this rule. In the event a service or disability recipient should file an application for benefits retroactively, the monthly cost shall be at the rate for the age of the recipient at the time the deductions begin and shall be effective with the first benefit payment following receipt of the service or disability application. The retirement board shall adopt schedules of rates not more frequently than annually.
(G) When a participant attains the age of one hundred years, additional lump-sum death payments under this rule shall be deemed paid in full and no further monthly payment shall be due.
(H) There is hereby established an account within the annuity and pension reserve fund known as the optional lump-sum death benefit account, which shall receive deductions of costs and from which the additional lump-sum death payments herein authorized shall be paid. Interest shall be credited to the account hereby created at the rates established by the retirement board.