3307.26 Electing defined benefit or defined contribution plan.
3307.26 Electing defined benefit or defined contribution plan.
Each teacher shall contribute eight per cent of the teacher’s earned compensation, except that the state teachers retirement board may raise the contribution rate to a rate not greater than ten per cent of the teacher’s earned compensation. For teachers participating in the plan described in sections 3307.50 to 3307.79 of the Revised Code, contributions shall be deposited in the teachers’ savings fund. For teachers participating in a plan established under section 3307.81 of the Revised Code, contributions shall be deposited in the defined contribution fund. Contributions made pursuant to this section shall not exceed the limits established by section 415 of the “Internal Revenue Code of 1986,” 100 Stat. 2085, 26 U.S.C.A. 415, as amended. The contribution for all teachers shall be deducted by the employer on each payroll in an amount equal to the applicable per cent of the teachers’ paid compensation for such payroll period or other period as the board may approve. All contributions on paid compensation for teachers participating in plans established under section 3307.81 of the Revised Code shall be remitted at intervals required by the state teachers retirement system under section 3307.86 of the Revised Code. All contributions on earned compensation for teachers participating in the plan described in sections 3307.50 to 3307.79 of the Revised Code shall be remitted to the state teachers retirement system by the thirtieth day of June of each year. Each school district shall encumber sufficient moneys by the thirtieth day of June of each year to account for the difference, if any, that may exist between contributions that would be withheld based upon compensation earned by a teacher during the year ending the thirtieth day of June and the contributions withheld based upon compensation paid to the teacher for the year. Deductions from payroll for contributions under this section, on an annual basis, shall not exceed eight per cent or other percentage established by the board authorized by this section. At retirement under the plan described in sections 3307.50 to 3307.79 of the Revised Code, or upon a member’s death prior to retirement under that plan, if contributions have been made after September 1, 1959, in excess of the contributions normally required to provide the retirement or survivor benefit, the excess contributions may be refunded to the member, to the member’s beneficiary, or to the member’s estate in a lump sum, or may be used to provide additional income. The board may determine with regard to any member participating in the plan described in sections 3307.50 to 3307.79 of the Revised Code whether the limits established by division (C) of section 3307.58 of the Revised Code have resulted in exclusion from use in the calculation of benefits under section 3307.58, 3307.59, or 3307.60 of the Revised Code of any compensation on which contributions have been made under this section. The board may adopt rules in accordance with section 111.15 of the Revised Code providing for the disposition of contributions attributable to such compensation and may dispose of the contributions in accordance with those rules. Any disposition of contributions made by the board in accordance with the rules shall be final. The deductions under this section shall be made even though the minimum compensation provided by law for any teacher shall be reduced thereby. Every teacher shall be deemed to consent to the deductions made. Payment less the deductions shall be a complete discharge and acquittance of all claims and demands for the services rendered by the person during the period covered by the payment. Additional deposits may be made to a member’s account in the teachers’ savings fund or defined contribution fund, subject to rules of the board. At retirement, the amount deposited with interest may be used to provide additional annuity income. The additional deposits may be refunded to the member before retirement, and shall be refunded if the member withdraws the member’s refundable account. The deposits may be refunded to the beneficiary or estate if the member dies before retirement.
Effective Date: 04-01-2001