Ohio Administrative Code › Title 145 - Public Employees Retirement System › Chapter 145-4 - Health Care Coverage › Section 145-4-02 - Health care fund

Current through all regulations passed and filed through July 1, 2024
(A) Within the funds described in section
			 145.23 of the
			 Revised Code, there shall be a separate account established pursuant to section
			 115 of the Internal Revenue Code of 1986,
			 26 U.S.C.A.
			 115, for the purpose of funding the
			 agreements authorized under sections
			 145.58
			 and
			 145.584
			 of the Revised Code. The account shall be known as the "health care fund." The
			 assets in the health care fund shall be accounted for separately from the other
			 assets of the public employees retirement system, but may be commingled with
			 the other assets of the system for investment purposes. Investment earnings and
			 expenses shall be allocated on a reasonable basis. All assets in the health
			 care fund shall be held in trust for the exclusive benefit of members, benefit
			 recipients, and eligible dependents.
(B) Contributions to the health care fund
			 shall be funded by employer contributions as described in sections
			 145.48,
			 145.51,
			 145.58
			 and
			 145.584
			 of the Revised Code. Contributions to the health care fund are subordinate to
			 the contributions to the funds for retirement benefits under the traditional
			 pension plan and combined plan. Such contributions shall be reasonable and
			 ascertainable.
(C) Forfeitures
			 shall be used to fund 
			 qualified medical expenses, dental and vision coverage, administrative expenses
			 of the health care fund, reimbursement of the medicare part A and B premiums,
			 if provided by the system, and as provided in former rule
			 145-4-44
			 of the Administrative Code and section
			 145.584
			 of the Revised Code.
(D) The assets
			 of the health care fund shall only be used for the payment of
			  qualified medical
			 expenses, dental and vision coverage, and reimbursement of the medicare part A
			 and B premiums, if provided by the system.
(E) At no time prior to the satisfaction of
			 all liabilities under this rule and sections
			 145.58
			 and
			 145.584
			 of the Revised Code shall any assets in the health care fund be used for, or
			 diverted to, any purpose other than as provided in paragraph (D) of this rule
			 and for the payment of administrative expenses. Assets in the health care fund
			 may not be used for retirement, disability, or survivor benefits, or for any
			 other purpose for which the other funds of the system are used.
(F)
(1)
			 Effective as of July 1, 2016, the public employees retirement board herein
			 terminates the accounts established pursuant to section 401(h) of the Internal
			 Revenue Code of 1986,
			 26
			 U.S.C.A. 401. Upon satisfaction of all
			 liabilities to be paid from the prior 401(h) account under this rule, as
			 requied by the Internal Revenue Code, the public employees retirement system
			 has the authority, acting on behalf of itself and as the employers' agent, to
			 terminate the 401(h) account. Upon termiantion, the assets in the 401(h)
			 account, if any, shall be returned to the retirement system, as the employers'
			 agent, in accordance with section 401(h)(5) of the Internal Revenue Code. The
			 system shall notionally credit each contributing employer with the contributing
			 employer's respective share of the terminated 401(h) account assets and
			 immediately assess each employer a contribution due to the 115 trust in an
			 equal amount.
(2) Upon
			 satisfaction of all liabilities under this rule, any assets in the 115 trust,
			 if any, that are not used as provided in paragraph (E) of this rule shall
			 revert to a vehicle designated by the public employees retirement board, and in
			 no case will the assets be distributed to any entity that is not a state, a
			 political subdivision of a state, or an entity the income of which is excluded
			 from gross income under section 115 of the Internal Revenue Code.