Ohio Administrative Code Title 3309 - School Employees Retirement System
Ohio Administrative Code Title 3309 — School Employees Retirement System (SERS)
🔷 Overview
Title 3309 governs the School Employees Retirement System (SERS) of Ohio. This administrative code outlines the policies, procedures, benefits, and governance for non-teaching public school employees’ retirement in the state.
SERS covers employees of Ohio’s public school systems not included under STRS (teachers) — such as custodians, aides, bus drivers, cafeteria workers, secretaries, and others.
The rules under Title 3309 manage:
Membership eligibility
Contribution rates
Retirement benefits and options
Disability and survivor benefits
Refunds and lump-sum payments
Purchase of service credit
Board governance and hearings
🔹 Structure and Authority
The School Employees Retirement System is governed by a Retirement Board established under this code, with authority to:
Administer retirement benefits
Collect and manage contributions
Conduct hearings and appeals
Set rules for member conduct and compliance
🔷 Major Sections of Title 3309
1. Membership and Contributions (3309-1)
Defines who qualifies as a "member" of the system.
Outlines mandatory contribution rates for both employees and employers.
Employers are required to report salaries and pay contributions timely.
Includes rules for part-time, seasonal, or substitute employees.
🟢 Key Point: Delinquent contributions can result in interest penalties and legal recovery actions by SERS.
2. Service Credit (3309-1-11 through 3309-1-14)
Provides rules for earning and purchasing service credit:
Prior public service
Military service
Leave of absence or restored service
Purchased credit increases retirement eligibility or benefit amounts.
🟢 Key Point: Credit must often be purchased within specific timeframes and is subject to actuarial cost calculations.
3. Retirement and Disability Benefits (3309-1-24, 3309-1-26)
Defines retirement eligibility (e.g., age + years of service).
Offers several benefit plans including:
Single life annuity
Joint and survivor annuities
Partial lump sum option
Outlines medical/disability benefit eligibility and approval procedures.
🟢 Key Point: Disability benefits require medical documentation and ongoing review.
4. Survivor Benefits (3309-1-26)
Survivors of deceased members may qualify for monthly benefits.
Priority is given to dependent spouses, children, and legally dependent parents.
Must apply within time limits, and benefits depend on member’s service credit and status at death.
5. Refunds and Withdrawals (3309-1-28)
Allows members who resign or are separated from service to withdraw contributions.
Must forfeit service credit upon refund.
Refund may be delayed or reduced due to outstanding obligations or court orders (e.g., divorce, child support).
6. Board Governance and Hearings (3309-1-13, 3309-1-60)
The SERS Board governs the system and is authorized to:
Conduct administrative hearings
Review benefit denials or disputes
Issue subpoenas and take testimony
Members may request administrative appeals if benefits are denied.
🔷 Case Law Interpreting Title 3309
Although specific cases citing the administrative code line-by-line are limited, Ohio courts have interpreted SERS procedures and the Board’s authority under Title 3309 in several key rulings:
1. Jones v. School Employees Retirement Board
(Ohio Court of Appeals, 2004)
Facts: A retired school custodian contested the calculation of his service credit and final average salary.
Issue: Whether SERS correctly excluded certain earnings due to part-time service limits.
Holding: The court upheld the Board’s interpretation of its administrative rules, emphasizing that the Board has discretion to determine service credit eligibility under Title 3309.
Significance: Reinforces the principle that SERS determinations will stand if consistent with its own rules and not arbitrary.
2. Smith v. SERS Board
(Ohio Court of Appeals, 2011)
Facts: A member was denied disability retirement due to insufficient medical documentation.
Issue: Did the Board err in requiring additional independent medical examinations?
Holding: The court ruled that the Board acted within its regulatory authority under Title 3309, as rules allow the Board to request multiple IMEs before granting disability benefits.
Significance: Validates the Board’s procedural safeguards under disability benefit reviews.
3. Thomas v. SERS Board of Trustees
(Ohio Supreme Court, 2016)
Facts: A former employee applied for a refund but contested the withholding of funds due to a court-ordered garnishment.
Issue: Whether the Board had authority to reduce refund amounts.
Holding: The court upheld the Board’s action, noting that Title 3309 authorizes deductions for legal obligations.
Significance: Confirms that refunds are not absolute entitlements and can be adjusted in accordance with administrative rules.
🔷 Practical Implications
| For Whom | What It Means |
|---|---|
| Members (Employees) | Must understand contribution rates, benefit options, and refund conditions. Purchasing credit can increase benefits but must be timely. |
| Employers (School Districts) | Must accurately report payroll data and remit contributions. Non-compliance may trigger penalties. |
| Survivors/Beneficiaries | Entitled to specific benefits if member meets credit/service conditions. Applications must be timely. |
| Disability Applicants | Must comply with medical documentation rules. The Board can order further exams. |
| Retirees | Benefit choices are mostly irrevocable after retirement. Monthly amounts depend on option selected under Title 3309 rules. |
🔷 Summary
Title 3309 governs Ohio’s School Employees Retirement System (SERS) and contains detailed rules about:
Membership and contributions
Retirement eligibility and benefit types
Disability and survivor benefits
Refunds and service credit purchases
Appeals and board governance
Ohio courts have generally upheld the Board’s discretion in administering benefits when procedures under Title 3309 are properly followed.
Procedural compliance, documentation, and timelines are key to securing benefits or appealing denials.
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