(A) Approved claims for disability leave
benefits for a particular appointing authority may be deducted by the director
from the payroll contributions made by the appointing authority. The director
establishes an administrative special account into which net payroll
contributions and all other income will be credited and from which
administrative costs, fees, premiums, subscription charges, amounts available
for investment or claims for benefits may be paid. An investment trust account
will be maintained by the treasurer of state in the manner provided in
paragraph (E) of this rule.
(B) The state employee disability leave
benefit fund will be available without fiscal year limitation for the payment
of benefits, premiums, subscription charges, and administrative costs as
specified in sections 124.83 and 124.87 of the Revised Code. The fund exists
under the custody and supervision of the director, who will be responsible,
under approved bonds, for all monies coming into and paid out of the fund in
accordance with sections 124.83 and 124.87 of the Revised Code, and ensure that
the fund is actuarially sound.
(C) The director transfers monies among
the various accounts and instructs the treasurer of state to make investments
in the manner provided for in paragraph (E) of this rule.
(D) Contributions will be credited to and
constitute the state employee disability leave benefit fund. Any amounts
remaining in the state employee disability leave benefit fund after all
premiums, subscription charges, and other expenses have been paid will be
retained in the fund as a special reserve for adverse claim
fluctuation.
(E) Any amounts held by the state
employee disability leave benefit fund that are available for investment will
be invested by the treasurer of the state. The amount in the investment trust
account will be invested for a period not to exceed one year, for credit only
to the state employee disability leave benefit fund. Investments will be
subject to the terms, conditions, limitations, and restrictions imposed under
Chapter 3907. of the Revised Code upon domestic life insurance companies in the
investment of their capital, surplus, and accumulations.
(F) All income derived from investments
accrues to the fund. When monies are paid to the treasurer of state, the
director submits an estimate of the date such monies are no longer available
for investment. When the director wishes to withdraw monies from the trust
account, the director submits a request for the withdrawal in writing to the
treasurer of state, and such funds will be available to the director within
thirty days after the treasurer's receipt of the director's
request.
(G) Any necessary and reasonable costs
incurred by the treasurer of state or the department of administrative services
in administering rules will be charged against the administrative special
account established under paragraph (A) of this rule.
(H) The director, in consultation with
the superintendent of insurance, may, in accordance with the competitive
bidding procedures under sections 125.07 to 125.11 of the Revised Code,
periodically contract with an insurance company for the issuance of a policy of
short term disability and income protection, covering all state employees who
are eligible pursuant to section 124.385 of the Revised Code.
(I) The director may enter into a
contract with an administrator to administer the portion of the fund set aside
to provide benefits specified in section 124.385 of the Revised Code.
Determination as to the qualifications of the administrator will be made by the
director in consultation with the superintendent of insurance, and in
consideration of the following factors:
(1) Cost of providing
required administrative service;
(2) Claim service
capability, including location of claim office, nature of claim processing
system, claim payment turn-around time, and productivity of claim
processors;
(3) Evidence of the
effective exercise of claim control and cost containment
capability;
(4) Experience with other
large groups;
(5) Financial
strength;
(6) Non-claim service
provided; and
(7) The availability and
cost of stop-loss coverage for the state.
