Current through all regulations passed and filed through September 16, 2024
(A) As provided for in section
5505.50 of the Revised Code, the
date of the initial implementation of the deferred retirement option plan
(DROP) shall be June 15, 2006.
(B)
A member's election to participate in DROP is effective the later of:
(1) The first day of the employer's payroll
immediately following the board's receipt of the notice of election;
(2) The first day of the employer's payroll
designated by the member in the notice of election as long as the designated
payroll is within thirty days of the board's receipt of the notice of election;
or
(3) The first day of the
employer's payroll immediately following the member's eligibility to
participate in DROP.
(C)
A DROP participant may rescind his or her election to
participate in DROP, only if HPRS receives a written notice from the DROP
participant that directs HPRS to rescind such election and this written notice
is received by HPRS within thirty days after HPRS received the DROP
participant's election, as determined by HPRS.
(D) A DROP participant
may apply for disability retirement pursuant to sections
5505.18 and
5505.58 of the Revised Code and
rule 5505-3-02 of the Administrative
Code.
(1) HPRS shall void an application for
disability retirement upon an event that terminates the member's DROP
participation as defined by section
5505.55 of the Revised
Code.
(2) A DROP participant who
qualifies for disability retirement and elects to receive benefits pursuant to
division (A)(1) or (B) of section
5505.58 of the Revised Code
shall be age and service retired and not subject to the requirements of section
5505.18 of the Revised Code or
rule 5505-3-03 of the Administrative
Code.
(3) A DROP participant who
qualifies for disability retirement and elects to receive benefits pursuant to
division (A)(2) of section
5505.58 of the Revised Code
shall be disability retired and subject to the requirements of section
5505.18 of the Revised Code and
rule 5505-3-03 of the Administrative
Code.
(4) A member that is
receiving disability retirement benefits pursuant to division (A) (2) of
section 5505.58 of the Revised Code that
returns to active service will be considered an active member and must submit a
new application for DROP. Amounts previously forfeited pursuant to section
5505.58 of the Revised Code
shall not be accrued to the members benefit.
(5) A member whose participation in DROP
terminates as a result of qualifying for disability pursuant to section
5505.58 of the Revised Code
shall not forfeit the interest credited under division (C) of section
5505.54 of the Revised Code
except as provided in division (A)(2) of section
5505.58 of the Revised
Code.
(E) Interest shall
continue to accrue pursuant to division (C) of section
5505.54 of the Revised Code
after a member's participation in DROP ceases.
(F)
(1) As described in division (B)(1) of
section 5505.56 of the Revised Code, "on
or after the first day of the fourth year" and "earlier than four years" shall
mean after three years have elapsed since the DROP effective date as described
in paragraph (B) of this rule.
(2)
As described in division (B)(2) of section
5505.56 of the Revised Code, "on
or after the first day of the third year" and "earlier than three years" shall
mean after two years have elapsed since the DROP effective date as described in
paragraph (B) of this rule.
(G)
(1) Provided that the other candidacy
eligibility criteria are met, a member participating in DROP shall be eligible
to be elected as an employee member of the retirement board, but shall not be
eligible to be elected as a retirant member of the retirement board.
(2) A retirement board trustee who ceases
participation in DROP shall no longer be eligible to be an employee member of
the board of trustees. The trustee's position on the board of trustees shall be
vacant upon the effective date of the DROP termination.
(H)
Surviving spouses and beneficiaries
(1)
Pursuant to section 5505.59 of the Revised Code, a
member may not name a spouse as a beneficiary.
(2) A surviving spouse or beneficiary shall
select a method of distribution of any amount due to such person pursuant to
section 5505.59 of the Revised Code
within sixty days of notification from HPRS. If a method of distribution is not
made within sixty days, the amounts due will be distributed as a lump sum
payment.
(I) DROP termination
(1) Active service in the state highway
patrol is terminated upon separation pursuant to section
124.32 of the Revised
Code.
(2) Subject to paragraph
(H)(1) of this rule, a member shall be considered in the active service of the
state highway patrol while receiving benefits pursuant to section
124.385 of the Revised
Code.
(J) Pursuant to section
5505.54 of the Revised Code,
interest on DROP account balances shall be calculated at the Barclays U.S.
government/credit intermediate. The interest rate shall be established at June
thirtieth and December thirty-first for the following six-month period.
Effective October 1, 2021, the rate of interest shall not exceed five per cent
or be lower than two per cent.
(K) Effective October
1, 2021, the state highway patrol retirement system shall calculate interest on
the DROP participant's DROP balance on the last day of each month.
