Ohio Administrative Code › Title 3309 - School Employees Retirement System › Chapter 3309-1 - General Provisions › Section 3309-1-65 - Medicare part B reimbursement account

Current through all regulations passed and filed through July 1, 2024
(A)
								As used in this
			 rule, "eligible benefit recipient" has the same meaning as in paragraph
			 (J)(2)(b) of rule
			 3309-1-35 of the
			 Administrative Code.
(B)
								The school employees retirement board has previously
			 established a separate account within the funds described in section
			 3309.60 of the Revised Code for
			 the purpose of reimbursing eligible benefit recipients for a portion of the
			 cost of medicare part B coverage paid by the eligible benefit recipient, as
			 authorized under section
			 3309.69 of the Revised Code, and
			 in accordance with rule
			 3309-1-35 of the
			 Administrative Code. The medicare part B reimbursement account shall be a
			 separate account established pursuant to section 401(h) of the Internal Revenue
			 Code,
			 26 U.S.C.
			 401(h). The assets in the
			 medicare part B reimbursement account shall be accounted for separately from
			 the other assets of the school 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.
(C)
								Each year the board designates the amount of
			 contributions that are to be allocated to the medicare part B reimbursement
			 account for any year. The contributions are funded by employer contributions
			 under section 3309.49 of the Revised Code and
			 are subordinate to the contributions for payment of retirement allowance and
			 other benefits provided under Chapter 3309. of the Revised Code. At no time
			 shall contributions to the medicare part B reimbursement account, when added to
			 contributions for any life insurance benefits provided on behalf of eligible
			 benefit recipients, be in excess of twenty-five per cent of the total aggregate
			 actual contributions made to the school employees retirement system, excluding
			 contributions to fund past service credit. In any event, all contributions to
			 the medicare part B reimbursement account shall be reasonable and
			 ascertainable.
(D)
								The assets of the medicare part B reimbursement account
			 are only used to pay reimbursement of medicare part B premiums paid by eligible
			 benefit recipients and authorized under section
			 3309.69 of the Revised Code and
			 in accordance with rule
			 3309-1-35 of the
			 Administrative Code.
(E)
								If any rights of an individual who is eligible to
			 receive medicare part B reimbursement authorized under section
			 3309.69 of the Revised Code and
			 paid from the medicare part B reimbursement account are forfeited as provided
			 in rule
			 3309-1-35 of the
			 Revised Code, an amount equal to the amount of such forfeiture shall be applied
			 as soon as administratively possible to reduce employer contributions allocated
			 to the medicare part B reimbursement account.
(F)
								At no time prior
			 to the satisfaction of all liabilities under this rule shall any assets in the
			 medicare part B reimbursement account 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 relating to the medicare part B reimbursement account.
			 Assets in the medicare part B reimbursement account 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.
(G)
								If the school
			 employees retirement board discontinues medicare part B reimbursement
			 authorized under section
			 3309.69 of the Revised Code, or
			 upon satisfaction of all liabilities under this rule, any assets in the
			 medicare part B reimbursement account, if any, that are not used as provided in
			 this rule shall be returned to the employers, as required by
			 26 U.S.C.
			 401(h)(5).
(H)
								It is the intent
			 of the school employees retirement board in adopting this rule to reflect its
			 continuing compliance in all respects with sections 401(a) and 401(h) of the
			 Internal Revenue Code,
			 26 U.S.C.
			 401, and regulations interpreting those
			 sections. In applying this rule, the board will apply the interpretation that
			 achieves compliance with those sections and preserves the qualified status of
			 the system as a governmental plan under sections 401(a) and 414(d) of the
			 Internal Revenue Code,
			 26 U.S.C.
			 401 and
			 414.
(I)
								This rule is
			 intended to reflect past and current policies, practices and procedures of the
			 system with respect to the funding and payment of medicare part B
			 reimbursements and does not confer any new rights to or create any vested
			 interest in receiving medicare part B reimbursement for members, retirees,
			 survivors, beneficiaries, or their dependents.
Five Year Review (FYR) Dates:
				1/31/2020 and
				01/31/2025
Promulgated
				Under: 111.15
Statutory Authority: 3309.04
Rule
				Amplifies: 3309.03, 3309.60, 3309.69
Prior Effective Dates:
				10/30/2015, 01/15/2016