Ohio Administrative Code › Title 3307:1 - Defined Benefit › Chapter 3307:1-11 - Health Care Services › Section 3307:1-11-02 - Health care services - health care fund

Current through all regulations passed and filed through July 1, 2024
(A)
								The retirement
			 board shall designate the amount of contributions, if any, that are to be
			 allocated to the health care fund described in division (H) of section
			 3307.14 of the Revised Code for
			 any year. Any contributions shall be funded by employer contributions to the
			 employer's trust fund and shall include any employer contributions previously
			 allocated by the retirement board for health care coverage described in section
			 3307.39 of the Revised Code,
			 together with any earnings credited thereon, with respect to individuals
			 participating in the plan described in either the STRS defined benefit plan or
			 the defined contribution plan in which an individual may receive definitely
			 determinable benefits. Contributions to the health care fund are subordinate to
			 the contributions to the employer's trust fund for retirement benefits under
			 the plans described in the STRS defined benefit plan and the defined
			 contribution plan in which an individual may receive definitely determinable
			 benefits. At no time shall contributions to the health care fund, 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 retirement system since the inception of the
			 health care fund, excluding contributions to fund past service credit. In any
			 event, all contributions to the health care fund shall be reasonable and
			 ascertainable.
(B)
								If any rights of an individual who is eligible to
			 receive coverage authorized under section
			 3307.39 of the Revised Code and
			 paid from the health care fund are forfeited as provided in the applicable
			 provisions of the medical plans and ancillary plans offered by the retirement
			 system, an amount equal to the amount of such forfeiture shall be applied as
			 soon as administratively possible to reduce employer contributions allocated to
			 the health care fund.
(C)
								The assets of the health care fund shall be used only
			 for the payment of health care coverage, qualified medical expenses, dental and
			 vision coverage, and to partially reimburse medicare part B monthly premiums
			 paid by eligible benefit recipients, if applicable.
(D)
								At no time prior
			 to the satisfaction of all liabilities under this rule and section
			 3307.39 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 (C) of this rule and for the
			 payment of administrative expenses relating to the health care fund. 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.
(E)
								Upon satisfaction of all liabilities under this rule,
			 any assets in the health care fund that are not used as provided in paragraph
			 (D) of this rule shall be returned to the employers, as required by section
			 401(h)(5) of the Internal Revenue Code.
(F)
								It is the intent
			 of the retirement board in adopting this rule to codify its compliance in all
			 respects with sections 401(a) and 401(h) of the Internal Revenue Code and
			 regulations interpreting those sections. In applying this rule, the retirement
			 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.
(G)
								This rule is intended to codify past and current
			 practices and procedures of the system with respect to the funding and payment
			 of health care coverage and does not confer any new rights to or create any
			 vested interest in receiving health care coverage for members, benefit
			 recipients, or their dependents.
Replaces: 3307:1-11-12
Effective: 6/10/2016
Five Year
				Review (FYR) Dates: 06/10/2021
Promulgated Under:
				111.15
Statutory
				Authority: 3307.04
Rule
				Amplifies: 3307.39
Prior
				Effective Dates: 1/22/09 (Emer), 4/29/09 (Emer), 7/16/09,
				6/12/2014