Ohio Revised Code
Chapter 3307 | State Teachers Retirement System
Section 3307.501 | Final Average Salary.

Effective: March 22, 2019
Latest Legislation: House Bill 572 - 132nd General Assembly
(A) As used in this section, "percentage increase" means the percentage that an increase in compensation is of the compensation paid prior to the increase.
(B) For the purpose of determining final average salary under this section, "compensation" has the same meaning as in section 3307.01 of the Revised Code, except that it does not include any amount resulting from a percentage increase paid to a member during the member's two highest years of compensation, and any partial year of compensation as determined under divisions (C)(1) and (2) of this section to which the percentage increase also applies, if the percentage increase exceeds the greater of the following:
(1) The highest percentage increase in compensation paid to the member during any of the three years immediately preceding the earlier of the member's two highest years of compensation;
(2) A percentage increase paid to the member as part of an increase generally applicable to members employed by the employer. An increase shall be considered generally applicable if it is paid to members employed by a school district board of education in positions requiring a license issued under section 3319.22 of the Revised Code in accordance with uniform criteria applicable to all such members or if paid to members employed by an employer other than a school district board of education in accordance with uniform criteria applicable to all such members.
(C) The state teachers retirement board shall determine the final average salary of a member as follows:
(1) For benefits beginning before August 1, 2015, by dividing the sum of the member's annual compensation for the three highest years of compensation for which the member made contributions plus any amount determined under division (E) of this section by three, except that if the member has a partial year of contributing service in the year the member's employment terminates and the compensation for the partial year is at a rate higher than the rate of compensation for any one of the member's highest three years of compensation, the board shall substitute the compensation for the partial year for the compensation for the same portion of the lowest of the member's three highest years of compensation;
(2) For benefits beginning on or after August 1, 2015, except as provided in division (C)(3) of this section, by dividing the sum of the member's annual compensation for the five highest years of compensation for which the member made contributions plus any amount determined under division (E) of this section by five, except that if the member has a partial year of contributing service in the year the member's employment terminates and the compensation for the partial year is at a rate higher than the rate of compensation for any one of the member's highest five years of compensation, the board shall substitute the compensation for the partial year for the compensation for the same portion of the lowest of the member's five highest years of compensation ;
(3) For benefits beginning on or after August 1, 2015, that were preceded by a disability benefit effective before that date and with no break in benefits, by dividing the sum of the member's annual compensation for the three highest years of compensation for which the member made contributions plus any amount determined under division (E) of this section by three, except that if the member has a partial year of contributing service in the year the member's employment terminates and the compensation for the partial year is at a rate higher than the rate of compensation for any one of the member's highest three years of compensation, the board shall substitute the compensation for the partial year for the compensation for the same portion of the lowest of the member's three highest years of compensation.
If a member has less than the requisite years of contributing membership, the member's final average salary shall be the member's total compensation for the period of contributing membership plus any amount determined under division (E) of this section divided by the total years, including any portion of a year, of contributing service.
For the purpose of calculating benefits payable to a member qualifying for service credit under division (I) of section 3307.01 of the Revised Code, the board shall calculate the member's final average salary by dividing the member's total compensation as a teacher covered under this chapter plus any amount determined under division (E) of this section by the total number of years, including any portion of a year, of contributing membership during that period. If contributions were made for less than twelve months, the member's final average salary is the total amount of compensation paid to the member during all periods of contributions under this chapter.
(D) Contributions made by a member on amounts that, pursuant to division (B) of this section, are not compensation or are not included, pursuant to division (E) of this section, for the purpose of determining final average salary shall be treated as additional deposits to the member's account under section 3307.26 of the Revised Code and used to provide additional annuity income.
(E) The state teachers retirement board shall adopt rules establishing criteria and procedures for administering this division.
The board shall notify each applicant for retirement of any amount excluded from the applicant's compensation in accordance with division (B) of this section and of the procedures established by the board for requesting a hearing on this exclusion.
Any applicant for retirement who has had any amount excluded from the applicant's compensation in accordance with division (B) of this section may request a hearing on this exclusion. Upon receiving such a request, the board shall determine in accordance with its criteria and procedures whether, for good cause as determined by the board, all or any portion of any amount excluded from the applicant's compensation in accordance with division (B) of this section, up to a maximum of seventy-five hundred dollars, is to be included in the determination of final average salary under division (C) of this section. Any determination of the board under this division shall be final.

Structure Ohio Revised Code

Ohio Revised Code

Title 33 | Education-Libraries

Chapter 3307 | State Teachers Retirement System

Section 3307.01 | State Teachers Retirement System - Definitions.

Section 3307.03 | State Teachers Retirement System - Board.

Section 3307.031 | Composition of State Teachers Retirement System.

Section 3307.04 | General Administration and Management Vested in Board.

Section 3307.041 | Travel Expense Policies - Bonus Policy - Budget.

Section 3307.042 | Ethics Policy - Commission Approval - Ethics Training.

Section 3307.043 | Chief Investment Officer - Supervision Duties - Monitoring of Securities Transactions.

Section 3307.044 | Selection of Internal Auditor.

Section 3307.05 | Board Membership.

Section 3307.051 | Orientation Program Required for New Members - Continuing Education.

Section 3307.052 | Members With Excessive Travel Expenses Ineligible for Another Term.

Section 3307.06 | Board Elections.

Section 3307.061 | Disqualification of Convicted Member - Misconduct in Office - Removal Procedure.

Section 3307.07 | Procedure for Electing Board Members.

Section 3307.071 | No Election if Only One Candidate Nominated.

Section 3307.072 | Candidate Campaign Finance Statements - Donor Statement of Independent Expenditures.

Section 3307.073 | Filing of Statements - Prohibited Campaign Activities.

Section 3307.074 | Complaint Alleging Violation of Rc 3307.073 - Procedure - Fine.

Section 3307.075 | Adoption of Election Rules - Certification of Nominating Petitions and Election Results.

Section 3307.08 | Oath of Office.

Section 3307.09 | Quorum.

Section 3307.091 | Digital Board Meeting Attendance.

Section 3307.10 | Expenses - Liability Insurance.

Section 3307.11 | Officers - Executive Director.

Section 3307.12 | Treasurer of State Is Custodian of Funds.

Section 3307.121 | Annual Statement of Amount of Funds Furnished by Treasurer.

Section 3307.13 | Legal Adviser.

Section 3307.131 | Actions; Venue.

Section 3307.14 | Creation of Funds - Trustees.

Section 3307.141 | Each Fund Is Separate Legal Entity.

Section 3307.142 | Interest Compounded Annually Credited to Accounts of Members and Funds.

Section 3307.143 | Discontinuation of Health Care Coverage; Transfer of Surplus.

Section 3307.15 | Investment and Fiduciary Duties of Board.

Section 3307.151 | Prohibited Business Transactions.

Section 3307.152 | Designation of Ohio-Qualified Agents - Selection Policy - Increased Utilization - Annual Report.

Section 3307.153 | Annual Disclosures to Ohio Ethics Commission.

Section 3307.154 | Designation of Ohio-Qualified Investment Managers - Utilization - Annual Report.

Section 3307.18 | Trustee or Employee of Board Shall Have No Interest in Profits nor Borrow Funds.

Section 3307.181 | Restrictions on Fiduciaries.

Section 3307.19 | Maintenance of Individual Account.

Section 3307.20 | Disclosure of Records.

Section 3307.21 | Notifying Teacher of Duties and Obligations Under Chapter.

Section 3307.211 | Certifying Names of Covered Employees.

Section 3307.212 | Notifying Board of Personnel Changes.

Section 3307.213 | Maintaining Records and Furnishing Assistance.

Section 3307.214 | Information to New Employees.

Section 3307.231 | Verifying Termination of Active Service.

Section 3307.24 | Denying Membership to Certain Classes of Teachers.

Section 3307.25 | Electing Defined Benefit or Defined Contribution Plan; Election to Cease Participation.

Section 3307.251 | Employee With Less Than 5 Years of Service Electing to Participate in Strs Defined Contribution Plan.

Section 3307.252 | Effect of Electing Strs Defined Contribution Plan.

Section 3307.26 | Contributions.

Section 3307.261 | Contributions During Disability Leave.

Section 3307.27 | Employer Pick Up of Teacher Contributions.

Section 3307.28 | Employer Contribution.

Section 3307.29 | Deductions Certified.

Section 3307.291 | Transmitting Payments Monthly.

Section 3307.292 | Failure of Employer to Transmit Amounts Due.

Section 3307.30 | Levying Additional Taxes.

Section 3307.31 | Deducting Employer Contributions From State Aid Moneys.

Section 3307.32 | Payment of Amounts Due Retirement System From Treasury.

Section 3307.33 | Termination of Membership.

Section 3307.35 | Employment of Retirant.

Section 3307.351 | Continuing Contributions to State System After Retirement.

Section 3307.352 | Retirant May Apply for Monthly Annuity or Lump Sum Payment.

Section 3307.353 | Reemployed Superannuate or Rehire in Position Filled by Vote of Members of Board or Commission.

Section 3307.354 | Superannuates or Other System Retirants.

Section 3307.37 | Restitution Order Based on Theft in Office or Certain Sex Offenses.

Section 3307.371 | Order for Division of Marital Property.

Section 3307.372 | Forfeiture of Retirement Benefits Under Rc 2929.192.

Section 3307.373 | Benefits Subject to Termination.

Section 3307.39 | Group Health Insurance Coverage for Retired Persons and Survivors.

Section 3307.391 | Establishing Programs for Long Term Health Care Insurance.

Section 3307.392 | Lump Sum Payment for Death Benefit.

Section 3307.393 | Additional Deposits to Fund Medical Expenses.

Section 3307.41 | Tax Exemptions.

Section 3307.42 | Acquiring Vested Right in Pension When Granted; Suspension of Benefits.

Section 3307.44 | Waiver of Rights.

Section 3307.46 | Increasing Pension, Benefit, or Allowance When Limits of 26 Usc 415 Are Raised.

Section 3307.461 | Establishing and Maintaining Qualified Governmental Excess Benefit Arrangement.

Section 3307.47 | Recovering Erroneous Payments.

Section 3307.48 | Disability Benefit Recipients.

Section 3307.50 | Defined Benefit Plan Definitions.

Section 3307.501 | Final Average Salary.

Section 3307.51 | Actuarial Valuation of Pension Assets, Liabilities, and Funding Requirements.

Section 3307.511 | Data Required for Preparation of Mortality and Service Tables.

Section 3307.512 | Amortizing Unfunded Actuarial Accrued Pension Liability.

Section 3307.513 | Annual Report Disability Retirement Experience of Each Employer.

Section 3307.514 | Study to Determine Percentage of Electing Employee's Compensation to Be Contributed by Public Institution of Higher Education.

Section 3307.52 | Service Credited at Retirement.

Section 3307.53 | Computing Service Credit.

Section 3307.56 | Payment to Member Who Ceases to Be a Teacher.

Section 3307.561 | Payments to Members Who Are Members of Another State Retirement System.

Section 3307.562 | Designation or Qualification of Beneficiaries.

Section 3307.563 | Interest Added to Withdrawn Contributions.

Section 3307.57 | Coordinating and Integrating Membership in State Retirement Systems.

Section 3307.58 | Eligibility for Service Retirement.

Section 3307.59 | Disability Allowance Recipient Applying for Service Retirement.

Section 3307.60 | Retirant May Elect Plan of Payment.

Section 3307.62 | Eligibility for Disability Benefits.

Section 3307.63 | Benefits Upon Disability Retirement.

Section 3307.631 | Annual Amount of Disability Allowance.

Section 3307.66 | Beneficiary May Substitute Other Benefits.

Section 3307.661 | Payment of Death Benefit.

Section 3307.67 | Cost of Living Increase.

Section 3307.671 | Establishing Temporary Supplemental Benefit Fund.

Section 3307.69 | Recalculating Benefits.

Section 3307.691 | Annual Lifetime Benefit.

Section 3307.692 | Annual Single Lifetime Benefit Based on 30 or More Years Service.

Section 3307.693 | Supplementing Allowance.

Section 3307.694 | Additional Allowance on or After 7-1-68.

Section 3307.695 | Additional Monthly Payment as of 12-31-71.

Section 3307.696 | Additional Monthly Payment Where Member Died Prior to 7-1-68.

Section 3307.697 | Additional Monthly Payment as of 12-19-73.

Section 3307.698 | Increase in Monthly Allowance, Pension or Benefit Effective 7-1-81.

Section 3307.699 | Increase in Benefits Established Prior to 2-1-83.

Section 3307.6910 | Increase in Benefits for Awards Prior to 7-1-79.

Section 3307.6911 | Recalculating Benefits to Counter Effect of Inflation.

Section 3307.6912 | Recalculating Retirement Allowances for Retirants Prior to 1945 and 1947.

Section 3307.6913 | Recalculating Annual Single Lifetime Benefit.

Section 3307.6914 | Recalculating Benefits Based on Cumulative Percentage Change in Cpi.

Section 3307.70 | Purchasing Service Credits.

Section 3307.701 | Payroll Deduction Plans.

Section 3307.71 | Restoring Service Credit.

Section 3307.711 | Payroll Deduction Plans - Restoring Pers or Sers Credit.

Section 3307.712 | Proceedings on Request for Restoration of Service Credit.

Section 3307.72 | Credit for Years of Service Where Employer Failed to Make Contributions.

Section 3307.73 | Purchase of Service Credit for Period of Self-Exemption.

Section 3307.74 | Credit for Prior Service - Comparable Public Position.

Section 3307.75 | Credit for Military Service.

Section 3307.751 | Purchasing Military Service Credit.

Section 3307.752 | Purchasing Uniformed Services Credit.

Section 3307.76 | Credit for Time Served in Other State Retirement Systems.

Section 3307.761 | Credit for Service in Uniform Retirement System.

Section 3307.762 | Transferring Service Credit and Contributions Between Strs and Cincinnati Retirement System.

Section 3307.763 | Eligibility for Credit for Service in Cincinnati Retirement System.

Section 3307.764 | Transferring Contributions to Cincinnati Retirement System.

Section 3307.765 | Transferred Service Credit From Uniform Retirement System.

Section 3307.77 | Purchasing Service Credit for Period of Approved Absence or Leave.

Section 3307.771 | Purchasing Service Credit for Time Spent on Pregnancy or Adoption.

Section 3307.78 | Purchasing Credit for Service as School Board Member.

Section 3307.79 | Years of Service Credit of Deceased Member Dying Prior to 7-1-73 - Right of Survivor to Purchase Service Credit.

Section 3307.80 | Rules for Defined Contribution Plans.

Section 3307.81 | Establishment and Administration of Defined Contribution Plan.

Section 3307.811 | Qualification of Plan for Federal Tax Purposes.

Section 3307.812 | Tax Exemptions and Deferrals.

Section 3307.83 | Member Rights Governed by Plan Selected.

Section 3307.84 | Transfer of Portion of Employer Contribution to Employers' Trust Fund to Mitigate Negative Financial Impact on System.

Section 3307.86 | Furnishing Contributions and Information at More Frequent Intervals.

Section 3307.87 | Spousal Consent or Waiver.

Section 3307.89 | Offering Participation in Defined Contribution Plan to Members in Defined Benefit Plan.

Section 3307.99 | Penalty.