Regards the State Teachers Retirement Board

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 719

2025-2026

Representative Hoops

Cosponsors: Representatives Manning,
Brennan, Miller, J., White, A.

To
amend sections 3307.044, 3307.05, 3307.06, 3307.07, 3307.10, and
3307.11 of the Revised Code and to amend Section 733.90 of H.B. 96 of
the 136th General Assembly
regarding
the State Teachers Retirement Board.

BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section
1.
That
sections 3307.044, 3307.05, 3307.06, 3307.07, 3307.10, and 3307.11 of
the Revised Code be amended to read as follows:

Sec.
3307.044.
The
state teachers retirement board shall appoint a committee to oversee
the selection of an internal auditor. The committee shall select one
or more persons for employment as an internal auditor. The board
shall employ the person or persons selected by the committee.

The
committee shall consist of the following board members:
the

one

retired
teacher member, one contributing member, one ex officio member, and
any additional board members appointed to the committee by the board.
The committee shall annually prepare and submit to the Ohio
retirement study council a report of its actions during the preceding
year.

Sec.
3307.05.
(A)

The
state teachers retirement board shall consist of the following
members:

(1)
(A)

The director of education and workforce or a designee of the director
who has the following qualifications:

(a)
(1)

The designee is a resident of this state.

(b)
(2)

Within the three years immediately preceding the appointment, the
designee has not been employed by the public employees retirement
system, police and fire pension fund, state teachers retirement
system, school employees retirement system, or state highway patrol
retirement system or by any person, partnership, or corporation that
has provided to one of those retirement systems services of a
financial or investment nature, including the management, analysis,
supervision, or investment of assets.

(c)
(3)

The designee has direct experience in the management, analysis,
supervision, or investment of assets.

(2)
The chancellor of higher education or a designee of the chancellor
who has the following qualifications:

(a)
The designee is a resident of this state.

(b)
Within the three years immediately preceding the appointment, the
designee has not been employed by the public employees retirement
system, police and fire pension fund, state teachers retirement
system, school employees retirement system, or state highway patrol
retirement system or by any person, partnership, or corporation that
has provided to one of those retirement systems services of a
financial or investment nature, including the management, analysis,
supervision, or investment of assets.

(c)
The designee has direct experience in the management, analysis,
supervision, or investment of assets.

(3)
Two members
(B)
One member
,
known as the treasurer of state's investment
designees
designee
,
who shall be appointed by the treasurer of state for
terms

a
term
of
four years
unless
removed or replaced by the treasurer of state pursuant to division
(B) of this section,
and

who

have
the following qualifications:

(a)
(1)

The
members
are residents
member
is a resident
of
this state.

(b)
(2)

Within the three years immediately preceding the appointment, the

members
have
member
has
not
been employed by the public employees retirement system, police and
fire pension fund, state teachers retirement system, school employees
retirement system, or state highway patrol retirement system or by
any person, partnership, or corporation that has provided to one of
those retirement systems services of a financial or investment
nature, including management, analysis, supervision, or investment of
assets.

(c)
(3)

The
members
have
member
has
direct
experience in the management, analysis, supervision, or investment of
assets.

(d)
(4)

The
members
are
member
is
not
currently employed by the state or a political subdivision of the
state.

(e)
The members do not have contributions on deposit with the state
teachers retirement system.

(4)
Four
(C)
Two
members,
known as the investment expert members, who shall be appointed for
four-year terms

unless removed or replaced by the appointing authority pursuant to
division (B) of this section
.
One investment expert member shall be appointed by the governor,
and

one
investment expert member shall be jointly appointed by the speaker of
the house of representatives and the president of the senate
,
one investment expert member shall be appointed by the speaker of the
house of representatives, and one investment expert member shall be
appointed by the president of the senate
.
Each investment expert member shall have the following
qualifications:

(a)
(1)

Each member shall be a resident of this state.

(b)
(2)

Within the three years immediately preceding the appointment, each
member shall not have been employed by the public employees
retirement system, police and fire pension fund, state teachers
retirement system, school employees retirement system, or state
highway patrol retirement system or by any person, partnership, or
corporation that has provided to one of those retirement systems
services of a financial or investment nature, including the
management, analysis, supervision, or investment of assets.

(c)
(3)

Each member shall have direct experience in the management, analysis,
supervision, or investment of assets.

(d)
No member shall have contributions on deposit with the state teachers
retirement system.

Any
investment expert member appointed to fill a vacancy occurring prior
to the expiration of the term for which the member's predecessor was
appointed shall hold office until the end of such term. The member
shall continue in office subsequent to the expiration date of the
member's term until the member's successor takes office, or until a
period of sixty days has elapsed, whichever occurs first.

(5)
Two
(D)
Five
members,
known as contributing members, who shall be members of the state
teachers retirement system;

(6)
One
(E)
Two
former

member

members

of
the system, known as
the

retired
teacher
member
members
,
who shall be
a
superannuate
superannuates
.

(B)
Notwithstanding section 3307.061 of the Revised Code, each appointed
member of the board serves at the pleasure of the appointing
authority.

Sec.
3307.06.
(A)

On

Annually
on
the
first Monday of May
of
each even-numbered year
,
one contributing member, as defined in division
(A)(5)
(D)

of section 3307.05 of the Revised Code, shall be elected by ballot to
the state teachers retirement board
,
except that, beginning with the annual election for contributing
members in May, 1978, and in the annual election of each fourth year
thereafter, two contributing members shall be elected to the board
.
Elected contributing members shall begin their respective terms of
office on the first day of September following their election and
shall serve for a term of four years.

(B)
The retired teacher
member

members

of
the board, as defined in division
(A)(6)
(E)

of section 3307.05 of the Revised Code, shall be elected for a term
of four years. The retired teacher
member

members

shall
be elected to the board at the
annual

election
for contributing members of the board, as provided in division (A) of
this section, in the year in which the term of the current retired
teacher
member

members

would
expire. The retired teacher
member

members

shall
begin
the
member's term
their
respective terms
of
office on the first day of September following
the
member's
their

election.

No
contributing member of the board who retires while a member of the
board shall be eligible to become a retired teacher member of the
board for three years after the date of the member's retirement.

(C)
Except as provided in division (E) of this section, if a vacancy
occurs during the term of office of any elected member of the board,
the remaining members of the board shall elect a successor member. On
certification of the election results in accordance with rules
adopted under section 3307.075 of the Revised Code the successor
member shall hold office until the first day of the new term that
follows the next board election that occurs not less than ninety days
after the successor member's election, or until the end of the term
for which the successor member was elected, whichever is sooner. The
successor member shall qualify for board membership under the same
division of section 3307.05 of the Revised Code as the member's
predecessor in office. Elections under this division shall be
conducted in accordance with rules adopted under section 3307.075 of
the Revised Code.

(D)
If as a result of changed circumstances an elected member of the
board would no longer qualify for board membership under that
division of section 3307.05 of the Revised Code on the basis of which
the member was elected, or if such a member fails to attend the
meetings of the board for four months or longer without being
excused, the member's position on the board shall be considered
vacant, and a successor member shall be elected under this division
for the remainder of the unexpired term.

(E)
A successor member need not be elected under division (C) of this
section to fill a vacancy if on the day the vacancy occurs less than
ninety days remain in the vacated term.

Sec.
3307.07.
All
elections of members of the state teachers retirement board shall be
held under the direction of the board in accordance with rules
adopted under section 3307.075 of the Revised Code. Any member of the
state teachers retirement system, who has been nominated by a
petition that is signed by five hundred or more members of the system
and certified in accordance with rules adopted under section 3307.075
of the Revised Code, shall be eligible for election as a contributing
member of the board. The petition shall contain the signatures of
twenty or more members of the system from each of at least ten
counties wherein members of the system are employed.

Any
retired teacher who is a superannuate and a resident of Ohio is
eligible for election as a retired teacher member of the board, if
such retired teacher has been nominated by a petition that is signed
by five hundred or more retired teachers, who are also superannuates,
and certified in accordance with rules adopted under section 3307.075
of the Revised Code. The petition shall contain the signatures of
twenty or more retired teachers from each of at least ten counties
wherein superannuates under the system reside.

The
board shall place the name of any eligible candidate upon the
appropriate ballot as a regular candidate. At any election, qualified
voters, as defined in this section, may vote for the regular
candidates or for other eligible candidates, in which case the names
of such persons shall be written upon the appropriate ballots, except
that members of the system and former members of the system who are
superannuates shall vote respectively for contributing members and

the

retired
teacher
member

members

of
the board. The candidate who receives the highest number of votes for
any term of office shall be elected to the board on certification of
the election results in accordance with rules adopted under section
3307.075 of the Revised Code.
If,
at any election, contributing members or retired teacher members are
to be elected for concurrent terms, eligible candidates shall be
placed on the ballot, and the candidates who receive the highest
numbers of votes shall be elected to the board on certification of
the election results in accordance with rules adopted under section
3307.075 of the Revised Code.

Elected
members of the board shall be elected on the basis of the total
number of ballots cast by qualified voters, who shall consist of
members of the system and former members of the system who are
superannuates.

Sec.
3307.10.
(A)(1)
The members of the state teachers retirement board holding office
under divisions
(A)(3)
(B)

to
(6)
(E)

of section 3307.05 of the Revised Code, for their service on the
board, are entitled to
both
of the following:

(a)
Two
two

hundred
dollars for each regular board meeting attended, provided that no
member shall be entitled to more than
two
thousand
four
hundred dollars per
month
year
,
regardless of the number of regular board meetings held in a
month;

(b)
Health care benefits comparable to those generally available to
employees of the state teachers retirement system
year
.

(2)
Except as provided in division (A)(3) of this section, the members of
the board other than the
appointed

members
described under division (A)(1) of this section shall serve without
compensation.

(3)
All of the members of the board shall be reimbursed from the expense
fund for all actual necessary expenses incurred while serving on the
board.

(4)
The payment to which a board member is entitled for attending a
regular board meeting under division
(A)(1)(a)
(A)(1)

of this section does not entitle the member to payment for attending
a special meeting or a committee meeting of the board.

(5)
Health care benefits provided to a board member under division
(A)(1)(b) of this section shall be provided on the same terms and at
the same cost as to employees of the system.

(B)
The board may secure insurance coverage designed to indemnify board
members and employees for their actions or conduct in the performance
of official duties, and may pay required premiums for such coverage
from the expense fund.

(C)
If the officers of the board determine that a meeting of the entire
membership, or any part thereof, is necessary, such determination
shall be final, and contributing members shall be given time off from
their employment to attend any such meeting. The employer of a
contributing member shall not reduce the member's earned compensation
as a teacher or any contribution required under section 3307.26 of
the Revised Code, because of the contributing member's absence from
employment to attend any such meeting.

The
portion of the employer contribution required under section 3307.28
of the Revised Code that represents earned compensation of a
contributing member paid for the period of an absence from employment
to attend a board meeting, shall be annually transferred from the
expense fund and forwarded to the employer of the contributing
member.

(D)
The board shall adopt rules in accordance with section 111.15 of the
Revised Code establishing a policy for reimbursement of travel
expenses incurred by board members in the performance of their
official duties. As part of any audit performed under Chapter 117. of
the Revised Code, an inquiry shall be made into whether board members
have complied with these rules.

(E)
No board member shall accept payment or reimbursement for travel
expenses, other than for meals and other food and beverages provided
to the member, from any source other than the expense fund. Except in
the case of an emergency, no out-of-state travel expenses shall be
reimbursed unless approved in advance by a majority of the board at a
regular board meeting.

(F)
Notwithstanding anything to the contrary in sections 145.38, 742.26,
3307.35, or 3309.341 of the Revised Code, a board member's service on
the board shall not forfeit the member's allowance or benefit under
any of those sections.

Sec.
3307.11.
The
state teachers retirement board shall elect from its membership, a
chairperson and a vice-chairperson.
A
member of the board who has contributions on deposit with the state
teachers retirement system is not eligible to serve as chairperson or
vice-chairperson.
The
board shall employ an executive director who shall serve as
secretary, and shall employ other persons necessary to operate the
system and to fulfill the board's duties and responsibilities under
Chapter 3307. of the Revised Code.

Effective
ninety days after September 15, 2004, the board may not employ a
state retirement system investment officer, as defined in section
1707.01 of the Revised Code, who does not hold a valid state
retirement system investment officer license issued by the division
of securities in the department of commerce.

The
compensation of all employees and all other expenses of the board
necessary for the proper operation of the system shall be paid in
such amounts as the board approves.

Every
expense voucher of an employee, officer, or board member of the state
teachers retirement system shall itemize all purchases and
expenditures.

The
board shall receive all applications for retirement under the plans
described in section 3307.031 of the Revised Code, shall provide for
the payment of all retirement allowances and other benefits payable
under this chapter, and shall make other expenditures authorized by
this chapter.

Section
2.
That
existing sections 3307.044, 3307.05, 3307.06, 3307.07, 3307.10, and
3307.11 of the Revised Code are hereby repealed.

Section
3.
That
Section 733.90 of H.B. 96 of the 136th General Assembly be amended to
read as follows:

Sec.
733.90.
(A)
The amendment by
this
act
H.B.
96 of the 136th General Assembly
of
section 3307.05 of the Revised Code does not affect the terms of the
members of the State Teachers Retirement Board serving on
the
effective date of this section
September
30, 2025
.

Division
(B) of section 3307.05 of the Revised Code does not apply to
appointed members of the Board serving on the effective date of this
section.

(B)
Pursuant to section 3307.05 of the Revised Code, as amended by
this
act
H.B.
96 of the 136th General Assembly
,
as soon as practicable after
the
effective date of this section
September
30, 2025
,

all

both

of
the following apply:

(1)

The
Chancellor of Higher Education shall take office on the Board or
designate an individual to serve on the Board as the Chancellor's
designee.

(2)

The
Treasurer of State shall appoint to the Board the Treasurer of
State's investment designee.

(3)
(2)

The Speaker of the House of Representatives and the President of the
Senate each shall appoint one investment expert member to the Board.

(C)(1)
The office of the contributing member of the Board described under
former division (D) of section 3307.05 of the Revised Code whose term
expires on August 31, 2026, is abolished on that date.

(2)
The office of the contributing member of the Board described under
former division (D) of section 3307.05 of the Revised Code whose term
expires on August 31, 2027, is abolished on that date.

(3)
The office of the contributing member of the Board described under
former division (D) of section 3307.05 of the Revised Code whose term
expires on August 31, 2028, is abolished on that date.

(D)
The office of the retired teacher member of the Board described under
former division (E) of section 3307.05 of the Revised Code whose term
expires on August 31, 2026, is abolished on that date.

Section
4.
That
existing Section 733.90 of H.B. 96 of the 136th General Assembly is
hereby repealed.

Section
5.
(A)(1)
Except as provided in division (A)(2) of this section, the amendment
by this act of section 3307.05 of the Revised Code does not affect
the terms of the members of the State Teachers Retirement Board
serving on the effective date of this section.

(2)
On the effective date of this section, the office of the Chancellor
of Higher Education or a designee of the Chancellor described under
former division (A)(2) of section 3307.05 of the Revised Code is
abolished.

(B)
The offices on the Board described under divisions (C)(1) to (3) and
division (D) of former section 733.90 of H.B. 96 of the 136th General
Assembly are not abolished as specified in the former version of that
section.

(C)(1)
Except as provided in division (C)(2) of this section, the office of
the Treasurer of State's investment designee and the offices of the
two investment expert members who, pursuant to section 733.90 of H.B.
96 of the 136th General Assembly, are to be appointed to the Board as
soon as practicable after September 30, 2025, each are abolished,
respectively, on the date that is four years after the date on which
the term of office commences.

(2)
If, as of the effective date of this section, any office described
under division (C)(1) of this section has not yet been filled by
appointment, the office is abolished on the effective date of this
section.

(D)
It is the intent of the General Assembly that the repeal by this act
of former division (B) of section 3307.05 of the Revised Code is to
discontinue its application to any member appointed to the Board on
or after the effective date of this section.