Ohio Admin. Code 742-3-09 - Subsequent public employment of individuals retired under one of the Ohio public retirement systems
(A) The requirement under section
742.26 of the Revised Code that
benefits be forfeited if employment occurs under another Ohio public retirement
system shall apply only to retirants from the Ohio police and fire pension fund
("OP& F") with effective benefit dates on or after August 30,
1991.
(B) For the purposes of
section 742.26 of the Revised Code, the
effective retirement benefit date for an individual granted "deferred"
retirement under Chapter 742. of the Revised Code shall be the date upon which
the retirement allowance commences.
(C) Individuals who are receiving benefits
under OP& F will forfeit benefits for any month in which employment under
another Ohio public retirement system occurs before the lapse of sixty days
from the effective retirement benefit date (the "forfeiture period").
Forfeiture will not occur if the individual was employed in any position under
another Ohio public retirement system on the effective retirement benefit date
and had been continuously employed for sixty days before the effective
retirement benefit date.
For purposes of determining whether a member has been continuously employed, OP& F shall consider a member to be "continuously employed" if one of the following criteria is met:
(1) OP& F receives documentation that
shows that the member received regular earnings during the forfeiture period
from an employer who is a contributing employer with another Ohio retirement
system; or
(2) If there is a break
in regular earnings during the forfeiture period, OP& F receives
documentation that evidences the continuation of the member's employment
relationship in the form of a contract that governs the forfeiture period and
includes the member's job description or the member's employer provides a
certification to OP& F that confirms the existence of a long term and
continuous relationship, which included the forfeiture period.
(D) Where an individual has
established membership in more than one Ohio public retirement system in
addition to OP& F, active accounts established under all public retirement
systems must be handled/disposed of as of the effective retirement benefit
date. Any election, once made, is irrevocable except as otherwise provided. An
individual must exercise one of the following options:
(1) If, as of the effective retirement
benefit date, the individual has established service sufficient to entitle the
individual to a benefit under one of the other Ohio public retirement
system(s), the individual may elect to take retirement from the other system(s)
to be effective the first day of the next month following the latter of the
individual's effective retirement benefit date from OP& F or satisfaction
of age and other eligibility requirements for retirement in the other
system(s); or
(2) The individual
may refund the account(s) with the other public retirement system(s) in
accordance with the law of each retirement system.
(3) Where the individual has continuously
been employed in any position(s) covered by the other public retirement
system(s) for sixty days prior to the individual's retirement benefit date and
will continue to be so employed after retirement, the individual shall be given
the option of converting the account(s) with such other public retirement
system(s) to a post retirement money purchase account(s) with allowable
interest compounded only from the individual's effective retirement benefit
date.
(E) On termination
of employment on or after April 11, 2005, a
reemployed retirant may choose to receive reemployed retirant benefits as
either a monthly annuity or a onetime lump sum payment of his or her
participant contributions, subject to the spousal consent requirement provided
in divisions (F)(2)(a) and (H)(1) of section
742.26 of the Revised Code. The
monthly annuity will be paid on the first day of the month following the latest
of: the day employment was terminated; the attainment of age sixty; or one year
from the date the member began receiving another OP& F defined contribution
benefit. The one-time lump sum payment can be made if the retirant has not
attained age sixty, but only if the retirant has terminated employment, three
months have elapsed since the termination of re-employment, and the retirant
has not returned to service during the three-month period.
(F) For those reemployed retirants who have
attained the age of sixty, the calculation criteria for the re-employed
retirant benefits under division (F)(2) or (H) of section
742.26 of the Revised Code is as
follows:
(1) The interest rate shall be
calculated according to paragraph (F)(2) of this rule.
(2) Interest shall be credited to accounts
only at the time of calculation of a payable benefit. Interest will be
calculated based on the balance of the participant's contributions and
previously earned interest as of December thirty-first of each year until a
lump sum is paid or an annuity commences. Pro rata interest is credited for the
final partial year in which the payment of the benefit commences. Effective the
first business day of the second quarter of 2012, the compounded interest rate
shall be adjusted quarterly at a 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.
(3) Matching contributions
are the amount equal to the participant contributions deducted from the salary
of the OP& F retirant, together with interest credited thereon consistent
with the provisions of paragraph (F)(2) of this rule. For purposes of this
paragraph, "salary" shall have the same meaning as set forth in division (L) of
section 742.01 of the Revised
Code.
(4) The lump sum value shall
be the sum of the participant contributions with interest and the matching
contributions.
(5) The annuity form
shall consist of the actuarial present value of which is equal to two times the
sum of all amounts deducted from the salary of the OP& F or other system
retirant, plus interest credited thereon at a rate determined by the board,
less contributions excluded under division (D) of section
742.26 of the Revised Code. For
purposes of this paragraph, "salary" shall have the same meaning as division
(L) of section 742.01 of the Revised
Code.
(6) The mortality table used
for the annuity is based on the morality assumption for healthy post-retirement
members as stated in OP& F's most recent actuarial valuation, which is
currently the 1994 group annuity mortality table (female only), set forward two
years for all retirants.
(7) The
interest rate used to calculate the annuity will be the assumed rate of return
defined in OP& F's most recent actuarial valuation, which is currently eight and a quarter per cent
annually.
(8) This division documents the
process since January 1, 2002.
(G) For those reemployed retirants who have
not attained the age of sixty, the calculation criteria for the reemployed
retirant benefits under division (H) of section
742.26 of the Revised Code is as
follows:
(1) The lump sum value shall be the
sum of the participant contributions, less the matching contributions, plus
interest.
(2) The interest rate
shall be calculated according to paragraph (F)(2) of this rule.
(H) If an OP& F retirant or
other system retirant dies after terminated employment subject to section
742.26 of the Revised Code but
before being eligible to receive a defined contribution plan benefit, then the
retirant's surviving spouse, or if there is no surviving spouse, the retirant's
estate, shall be paid a lump sum payment in accordance with division (F)(2) of
section 742.26 of the Revised Code
effective the first of the month following the reemployed retirant's date of
death.
(I) A reemployed retirant
who is not subject to the spousal consent requirement provided in division
(F)(2)(a) of section 742.26 of the Revised Code and
who selects the plan of payment provided in division (F)(2)(b)(ii) of section
742.26 of the Revised Code shall
designate a sole beneficiary at the time the plan is selected and shall also
select the portion of the retirant's lesser retirement allowance to be paid to
the sole beneficiary after the retirant's death. The portion of the retirant's
lesser retirement allowance shall be expressed as a percentage, which may be
any percentage from one to one hundred.
(J) A reemployed retirant who elects to
receive a monthly annuity as provided in division (F) (2) of section
742.26 of the Revised Code shall
not be permitted to designate multiple beneficiaries when selecting a plan of
payment.
Notes
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.26
Prior Effective Dates: 12/07/1992, 10/23/2000, 01/22/2004, 03/19/2007, 06/21/2012, 03/22/2018
Promulgated Under: 111.15
Statutory Authority: 742.10
Rule Amplifies: 742.37, 742.38, 742.40, 742.45
Prior Effective Dates: 12/07/1992, 10/23/2000, 01/22/2004, 03/19/2007, 06/21/2012
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