Ohio Administrative Code › Title 123:1 - Division of Human Resources › Chapter 123:1-72 - Disability Leave Benefits › Section 123:1-72-02 - Administration of the fund

Current through all regulations passed and filed through July 1, 2024
(A) Approved claims for disability leave
			 benefits for a particular appointing authority may be deducted by the director
			 from the payroll contributions made by the appointing authority. The director
			  establishes an administrative special account into which net
			 payroll contributions and all other income 
								will be
			 credited and from which administrative costs, fees, premiums, subscription
			 charges, amounts available for investment or claims for benefits may be paid.
			 An investment trust account 
								will be maintained by the treasurer of state in
			 the manner provided in paragraph (E) of this rule.
(B) The state employee disability leave
			 benefit fund 
								will be available without fiscal year limitation for
			 the payment of benefits, premiums, subscription charges, and administrative
			 costs as specified in sections
			 124.83
			 and
			 124.87
			 of the Revised Code. The fund exists under the custody and supervision of the
			 director, who will be responsible, under approved bonds, for all
			 monies coming into and paid out of the fund in accordance with sections
			 124.83
			 and
			 124.87
			 of the Revised Code, and  ensure
			 that the fund is actuarially sound.
(C) The director  transfers
			 monies among the various accounts and 
			 instructs the treasurer of state to make
			 investments in the manner provided for in paragraph (E) of this rule.
(D) Contributions 
								will be
			 credited to and constitute the state employee disability leave benefit fund.
			 Any amounts remaining in the state employee disability leave benefit fund after
			 all premiums, subscription charges, and other expenses have been paid
			 
								will be
			 retained in the fund as a special reserve for adverse claim
			 fluctuation.
(E) Any amounts held
			 by the state employee disability leave benefit fund that are available for
			 investment 
								will be invested by the treasurer of the state. The
			 amount in the investment trust account 
								will be
			 invested for a period not to exceed one year, for credit only to the state
			 employee disability leave benefit fund. Investments will be subject
			 to the terms, conditions, limitations, and restrictions imposed under Chapter
			 3907. of the Revised Code upon domestic life insurance companies in the
			 investment of their capital, surplus, and accumulations.
(F) All income derived from investments
			  accrues
			 to the fund. When monies are paid to the treasurer of state, the director
			  submits
			 an estimate of the date such monies are no longer available for investment.
			 When the director wishes to withdraw monies from the trust account, the
			 director  submits a request for the withdrawal in writing to the
			 treasurer of state, and such funds 
								will be available to the director within thirty
			 days after the treasurer's receipt of the director's request.
(G) Any necessary and reasonable costs
			 incurred by the treasurer of state or the department of administrative services
			 in administering these rules 
								will be charged against the administrative
			 special account established under paragraph (A) of this rule.
(H) The director, in consultation with the
			 superintendent of insurance, may, in accordance with the competitive bidding
			 procedures under sections
			 125.07 to
			 125.11 of the
			 Revised Code, periodically contract with an insurance company for the issuance
			 of a policy of short term disability and income protection, covering all state
			 employees who are eligible pursuant to section
			 124.385
			 of the Revised Code.
(I) The
			 director may enter into a contract with an administrator to administer the
			 portion of the fund set aside to provide benefits specified in section
			 124.385
			 of the Revised Code. Determination as to the qualifications of the
			 administrator 
								will be made by the director in consultation with the
			 superintendent of insurance, and in consideration of the following factors:
(1) Cost of providing required administrative
			 service;
(2) Claim service
			 capability, including location of claim office, nature of claim processing
			 system, claim payment turn-around time, and productivity of claim
			 processors;
(3) Evidence of the
			 effective exercise of claim control and cost containment capability;
(4) Experience with other large
			 groups;
(5) Financial
			 strength;
(6) Non-claim service
			 provided; and
(7) The availability
			 and cost of stop-loss coverage for the state.