As Reported by House Health, Retirement and Aging 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 15 5
1999-2000 6
REPRESENTATIVES MOTTLEY-FORD-TIBERI-SCHULER-ALLEN-JAMES-GRENDELL- 9
D. MILLER-OPFER-WILLAMOWSKI-LUCAS-GARDNER-TERWILLEGER-BRITTON- 10
THOMAS-SULZER-BENDER-OLMAN-EVANS-JOLIVETTE-VESPER-OGG-HOLLISTER 11
_________________________________________________________________ 12
A B I L L
To amend sections 145.294, 145.37, 3307.281, 14
3307.41, 3309.27, and 3309.35, to enact sections 16
145.311, 145.312, 3307.282, 3307.283, 3309.261, 17
and 3309.262 of the Revised Code to allow a 18
member of the Public Employees Retirement System, 19
School Employees Retirement System, or State 20
Teachers Retirement System to restore by payroll
deduction service credit for certain prior 21
service covered by one of the other systems. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That sections 145.294, 145.37, 3307.281, 26
3307.41, 3309.27, and 3309.35 be amended and sections 145.311, 28
145.312, 3307.282, 3307.283, 3309.261, and 3309.262 of the 30
Revised Code be enacted to read as follows:
Sec. 145.294. (A) The public employees retirement board 39
may establish by rule a payroll deduction plan for payment of the 41
cost of restoring service credit under section 145.31 OR 145.311 43
of the Revised Code or purchasing any service credit members of 44
the public employees retirement system are eligible to purchase 45
under this chapter. In addition to any other matter considered 46
relevant by the board, the rules shall specify all of the 47
following: 48
(1) The types of service credit that may be paid for 50
through payroll deduction, including the section of the Revised 51
2
Code that authorizes the purchase of each type of service credit 52
for which payment may be made by payroll deduction; 53
(2) The procedure to be followed by a member to inform his 55
FOR INFORMING THE MEMBER'S employer and the system that he THE 58
MEMBER wishes to purchase service credit under this chapter 60
through payroll deduction;
(3) The procedure to be followed by the system and 62
employers to determine for each request the amount to be 63
deducted, the number of deductions to be made, and the interval 64
at which deductions will be made. The rules may provide for a 65
minimum amount for each deduction or a maximum number of 66
deductions for the purchase of any type of credit. 67
(4) The procedure to be followed by employers in 69
transmitting amounts deducted from the salaries of their 70
employees to the system; 71
(5) The procedure to be followed by the system in 73
crediting service credit to members who choose to purchase it 74
through payroll deduction. 75
(B) If the board establishes a payroll deduction plan 77
under this section, it shall certify to the member's employer for 78
each member for whom deductions are to be made, the amount of 79
each deduction and the payrolls from which deductions are to be 80
made. The employer shall make the deductions as certified and 81
transmit the amounts deducted in accordance with the rules 82
established by the board under this section. 83
(C) Rules adopted under this section shall not affect any 85
right to purchase service credit conferred by any other section 86
of the Revised Code, including the right of a member under any 87
such section to purchase only part of the service credit he THE 88
MEMBER is eligible to purchase. 90
(D) No payroll deduction made pursuant to this section may 92
exceed the amount of a member's net compensation after all other 93
deductions and withholdings required by law. 94
Sec. 145.311. (A) A MEMBER OF THE PUBLIC EMPLOYEES 96
3
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 97
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 98
FIREMEN'S DISABILITY AND PENSION FUND, SCHOOL EMPLOYEES 99
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 100
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 101
NO LONGER CONTRIBUTING TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM 102
OR STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 103
UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED CODE BY MAKING 104
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 105
PLAN ESTABLISHED UNDER SECTION 145.294 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE 107
PUBLIC EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE 108
PUBLIC EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, 109
THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE 110
FORMER RETIREMENT SYSTEM CALCULATE UNDER SECTION 3307.283 OR
3309.262 OF THE REVISED CODE THE COST TO THE MEMBER TO RESTORE 112
SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR 113
WHICH THE MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT 114
THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING 115
THE SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF 116
THIS SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 117
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 118
RETIREMENT SYSTEM, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL 119
NOTIFY THE MEMBER OF THE COST. 120
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 122
RESTORED UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED CODE, A 124
MEMBER SHALL PAY TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM THE 125
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 126
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 127
3307.283 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 128
WHICH DEDUCTIONS ARE MADE UNDER SECTION 145.294 OF THE REVISED 130
CODE.
(C) THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 133
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 134
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SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED 136
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 137
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 138
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 139
WHICH THE PAYMENT WAS MADE. 140
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 142
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 144
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 146
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 147
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE PUBLIC 148
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 149
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 151
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 153
Sec. 145.312. AFTER RECEIVING A REQUEST FROM THE STATE 156
TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 3307.282 157
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 160
SECTION 3309.261 OF THE REVISED CODE, THE PUBLIC EMPLOYEES 162
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 163
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 166
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 167
UNDER SECTION 145.31 OF THE REVISED CODE FOR EACH YEAR OR PORTION 168
OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE SERVICE 170
CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 172
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 173
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE. 174
Sec. 145.37. (A) As used in this section: 183
(1) "State retirement system" means the public employees 185
retirement system, school employees retirement system, or state 186
teachers retirement system. 187
(2) "Total service credit" means all service credit earned 189
in the state retirement systems, except credit for service 190
subject to section 145.38 of the Revised Code. Total service 191
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credit shall not exceed one year of credit for any twelve-month 192
period. 193
(3) In addition to the meaning given in division (N) of 195
section 145.01 of the Revised Code, "disability benefit" means 196
"disability benefit" as defined in sections 3307.01 and 3309.01 197
of the Revised Code. 198
(B) To coordinate and integrate membership in the state 200
retirement systems, the following provisions apply: 201
(1) At the option of a member, total contributions and 203
service credit in all state retirement systems, INCLUDING AMOUNTS 204
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 205
AND 3309.261 OF THE REVISED CODE, shall be used in determining 207
the eligibility and total retirement or disability benefit 208
payable. When total contributions and service credit are so 209
combined, the following provisions apply:
(a) Age and service retirement or disability benefits are 211
effective on the first day of the month immediately following the 212
later of: 213
(i) The last day for which compensation was paid; 215
(ii) The attainment of minimum age or service credit 217
eligibility for benefits provided under this section. 218
(b) In determining eligibility for a disability benefit, 220
the medical examiner's report to the retirement board of any 221
state retirement system, showing that the member's disability 222
incapacitates him THE MEMBER for the performance of duty, may be 223
accepted by the state retirement boards as sufficient for 225
granting a disability benefit. 226
(c) The state retirement system in which the member had 228
the greatest service credit, without adjustment, shall determine 229
and pay the total retirement or disability benefit. Where his 230
THE MEMBER'S credit is equal in two or more state retirement 232
systems, the system having the largest total contributions of the 233
member shall determine and pay the total benefit. 234
(d) In determining the total credit to be used in 236
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calculating a retirement or disability benefit, credit shall not 237
be reduced below that certified by the system or systems 238
transferring credit, except that such total combined service 239
credit shall not exceed one year of credit for any one "year" as 240
defined in the law of the system making the calculation. 241
(e) The state retirement system determining and paying a 243
retirement or disability benefit shall receive from the other 244
system or systems the member's refundable account at retirement 245
or the effective date of a disability benefit plus an equal 246
amount from the employer's accumulation fund. 247
(i) The annuity rates and mortality tables of the state 249
retirement system making the calculation and paying the benefit 250
shall be exclusively applicable. 251
(ii) Deposits made for the purpose of an additional 253
annuity, and including guaranteed interest, upon the request of 254
the member, shall be transferred to the state retirement system 255
paying the benefit. The return upon such deposits shall be that 256
offered by the state retirement system making the calculation and 257
paying the benefit. 258
(2) A former member receiving a retirement or disability 260
benefit under this section, who accepts employment amenable to 261
coverage in any state retirement system that participated in his 262
THE FORMER MEMBER'S combined benefit, shall be subject to the 264
applicable provisions of law governing such re-employment. If 265
the former member is subject to section 3307.381 of the Revised 266
Code and exceeds the limits on re-employment established by that 267
section, the state retirement system paying a combined benefit 268
shall terminate the entire pension portion of the benefit for the 269
period of re-employment that exceeds the limit in that section. 270
If a former member should be paid any amount in a retirement 271
benefit, to which he THE FORMER MEMBER is not entitled under the 272
applicable provisions of law governing such re-employment, such 274
amount shall be recovered by the state retirement system paying 275
such benefit by utilizing any recovery procedure available under 276
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the code provisions of the state retirement system covering such 277
re-employment.
(C) A PERS retirant or other system retirant, as defined 279
in section 145.38 of the Revised Code, is not eligible to receive 280
any benefit under this section for service subject to section 281
145.38 of the Revised Code. 282
Sec. 3307.281. (A) The state teachers retirement board 291
may establish by rule payroll deduction plans for payment of the 293
following: 294
(1) The cost of restoring service credit under section 296
3307.28 OR 3307.282 of the Revised Code or purchasing any service 298
credit members of the state teachers retirement system are 299
eligible to purchase under this chapter; 300
(2) Charges for participation in programs established 302
under section 3307.741 of the Revised Code. 303
(B) In addition to any other matter considered relevant by 305
the board, the rules adopted under this section shall specify all 306
of the following: 307
(1) The types of service credit that may be paid for 309
through payroll deduction, including the section of the Revised 310
Code that authorizes the purchase of each type of service credit 311
for which payment may be made by payroll deduction; 312
(2) The procedure to be followed by a member to inform his 314
FOR INFORMING THE MEMBER'S employer and the system that he THE 317
MEMBER wishes to use payroll deduction to purchase service credit 319
or pay for participation in programs established under section 320
3307.741 of the Revised Code;
(3) The procedure to be followed by the system and 322
employers to determine for each request the amount to be 323
deducted, the number of deductions to be made, and the interval 324
at which deductions will be made. The rules may provide for a 325
minimum amount for each deduction. They may also provide for a 326
maximum number of deductions for the purchase of any type of 327
service credit. 328
8
(4) The procedure to be followed by employers in 330
transmitting amounts deducted from the compensation of their 331
employees to the system; 332
(5) The procedure to be followed by the system in 334
crediting service credit to members who choose to purchase it 335
through payroll deduction; 336
(6) The time period within which employers are required to 338
transmit amounts deducted from payrolls to the system. 339
(C)(1) If the board establishes a payroll deduction plan 341
under this section, it shall certify to the member's employer, 342
for each member for whom deductions are to be made, the amount of 343
each deduction and the payrolls from which deductions are to be 344
made. The employer shall make the deductions as certified and 345
transmit the amounts deducted in accordance with the rules 346
established by the board under this section. 347
(2) If an employer does not transmit amounts deducted from 349
the compensation of an employee to the system within the time 350
period specified in rules adopted under division (B)(6) of this 351
section, the employer shall pay interest on the deducted amount 352
compounded annually at a rate to be determined by the board from 353
the date the amount is deducted to the date it is transmitted to 354
the system. 355
(D) Rules adopted under this section shall not affect any 357
right to purchase service credit conferred by any other section 358
of the Revised Code, including the right of a member under any 359
such section to purchase only part of the service credit he THE 360
MEMBER is eligible to purchase. 362
(E) No payroll deduction made pursuant to this section may 364
exceed the amount of a member's net compensation after all other 365
deductions and withholdings required by law. 366
(F) No payments made to the system under this section 368
shall affect any contribution required by section 3307.51 or 369
3307.53 of the Revised Code. 370
Sec. 3307.282. (A) A MEMBER OF THE STATE TEACHERS 372
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RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 373
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 374
RETIREMENT SYSTEM, SCHOOL EMPLOYEES RETIREMENT SYSTEM, OR STATE 375
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 376
NO LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 377
OR SCHOOL EMPLOYEES RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 378
UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE BY MAKING 379
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 380
PLAN ESTABLISHED UNDER SECTION 3307.281 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE 382
STATE TEACHERS RETIREMENT SYSTEM ON A FORM APPROVED BY THE STATE 383
TEACHERS RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE STATE 384
TEACHERS RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 385
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3309.262 OF 386
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 388
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 389
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 390
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 391
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 392
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 393
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER
RETIREMENT SYSTEM, THE STATE TEACHERS RETIREMENT SYSTEM SHALL 395
NOTIFY THE MEMBER OF THE COST. 396
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 398
RESTORED UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE, A 399
MEMBER SHALL PAY TO THE STATE TEACHERS RETIREMENT SYSTEM THE 401
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 402
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 403
145.312 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 404
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3307.281 OF THE REVISED 406
CODE.
(C) THE STATE TEACHERS RETIREMENT BOARD SHALL ANNUALLY 409
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 410
10
SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 OF THE REVISED 411
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 412
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 413
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 414
WHICH THE PAYMENT WAS MADE. 415
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 417
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 419
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 421
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 422
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE STATE 423
TEACHERS RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 424
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 426
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 428
Sec. 3307.283. AFTER RECEIVING A REQUEST FROM THE PUBLIC 431
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 432
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 435
SECTION 3309.261 OF THE REVISED CODE, THE STATE TEACHERS 437
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 438
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 441
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 442
UNDER SECTION 3307.28 OF THE REVISED CODE FOR EACH YEAR OR 443
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE 444
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 446
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 447
AUTHORIZED UNDER SECTION 3307.281 OF THE REVISED CODE. 448
Sec. 3307.41. To coordinate and integrate membership in 457
the state retirement systems, the following provisions apply: 458
(A) As used in this section: 460
(1) "Retirement systems" means the public employees 462
retirement system, the state teachers retirement system, and the 463
school employees retirement system. 464
(2) In addition to the meaning given in division (L) of 466
11
section 3307.01 of the Revised Code, "disability benefit" means 467
"disability benefit" as defined in sections 145.01 and 3309.01 of 468
the Revised Code. 469
(B) At the member's option, total contributions and 471
service credit in all retirement systems, INCLUDING AMOUNTS PAID 472
TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 473
3309.261 OF THE REVISED CODE, shall be used in determining the 475
eligibility for benefits. If total contributions and service 476
credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is 478
effective on the first day of the month next following the later 479
of: 480
(a) The last day for which compensation was paid; 482
(b) The attainment of minimum age or service credit for 484
benefits provided under this section. 485
(2) "Total service credit" includes the total credit in 487
all retirement systems except that such credit shall not exceed 488
one year for any period of twelve months. 489
(3) In determining eligibility for a disability benefit, 491
the medical examiner's report to the board of any retirement 492
system, showing that the member's disability incapacitates him 493
THE MEMBER for the performance of duty, may be accepted as 495
sufficient for granting a disability benefit. 496
(4) The retirement system in which the member had the 498
greatest service credit, without adjustment, shall determine and 499
pay the total benefit. If his THE MEMBER'S credit is equal in 500
two or more retirement systems, the system having the member's 502
largest total contributions shall determine and pay the total 503
benefit.
(5) In determining the total credit to be used in 505
calculating a benefit, credit shall not be reduced below that 506
certified by the system or systems transferring credit, except 507
that such total combined service credit shall not exceed one year 508
of credit for any one "year" as defined in the statute governing 509
12
the system making the calculation. 510
(6) The retirement system determining and paying the 512
benefit shall receive from the other system or systems the 513
member's refundable account at retirement or the effective date 514
of a disability benefit plus an equal amount from the employers' 515
trust fund. 516
(a) The annuity rates and mortality tables of the 518
retirement system making the calculation and paying the benefit 519
shall be applicable. 520
(b) Deposits made for the purchase of additional income, 522
with guaranteed interest, upon the member's request, shall be 523
transferred to the retirement system paying the regular benefit. 524
The return upon such deposits shall be that offered by the 525
retirement system making the calculation and paying the regular 526
benefit. 527
(C) A person receiving a benefit under this section, who 529
accepts employment amenable to coverage in any retirement system 530
that participated in his THE PERSON'S combined benefit, shall be 531
subject to the applicable provisions of law governing such 533
re-employment. If the person is subject to section 3307.381 of 534
the Revised Code and exceeds the limits on re-employment 535
established by that section, the retirement system paying a 536
combined benefit shall terminate the entire pension portion of 537
the benefit for the period of re-employment that exceeds the 538
limit in that section.
If a retirant should be paid any amount to which he THE 540
RETIRANT is not entitled under the applicable provisions of law 542
governing such re-employment, such amount shall be recouped by 543
the retirement system paying such benefit by utilizing any 544
recovery procedure available under the law of the retirement 545
system covering such re-employment. 546
Sec. 3309.261. (A) A MEMBER OF THE SCHOOL EMPLOYEES 548
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 549
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 550
13
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 551
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 552
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 553
NO LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 554
OR STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 555
UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE BY MAKING 556
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 557
PLAN ESTABLISHED UNDER SECTION 3309.27 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE SERVICE CREDIT SHALL NOTIFY THE SCHOOL 559
EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE SCHOOL 560
EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE 561
SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 562
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3307.283 OF 563
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 565
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 566
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 567
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 568
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 569
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 570
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 571
RETIREMENT SYSTEM, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL 572
NOTIFY THE MEMBER OF THE COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 574
RESTORED UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE, A 575
MEMBER SHALL PAY TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM THE 577
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 578
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 579
145.312 OR 3307.283 OF THE REVISED CODE FOR THE PERIOD DURING 580
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3309.27 OF THE REVISED 582
CODE.
(C) THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 585
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 586
SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28 OF THE REVISED 588
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 589
14
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 590
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 591
WHICH THE PAYMENT WAS MADE. 592
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 594
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 596
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 598
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 599
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE SCHOOL 600
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 601
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 602
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 604
Sec. 3309.262. AFTER RECEIVING A REQUEST FROM THE PUBLIC 607
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 608
OR THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF 611
SECTION 3307.282 OF THE REVISED CODE, THE SCHOOL EMPLOYEES 613
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 614
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 617
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 618
UNDER SECTION 3309.26 OF THE REVISED CODE FOR EACH YEAR OR 619
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE 620
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 622
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 623
AUTHORIZED UNDER SECTION 3309.27 OF THE REVISED CODE. 624
Sec. 3309.27. (A) The school employees retirement board 633
may establish by rule payroll deduction plans for payment of the 635
following: 636
(1) The cost of restoring service credit under section 638
3309.26 OR 3309.261 of the Revised Code or purchasing any service 640
credit members of the school employees retirement system are 641
eligible to purchase under this chapter; 642
(2) Charges for participation in programs established 644
under section 3309.691 of the Revised Code. 645
15
(B) In addition to any other matter considered relevant by 647
the board, the rules adopted under this section shall specify all 648
of the following: 649
(1) The types of service credit that may be paid for 651
through payroll deduction, including the section of the Revised 652
Code that authorizes the purchase of each type of service credit 653
for which payment may be made by payroll deduction; 654
(2) The procedure to be followed by a member to inform his 656
FOR INFORMING THE MEMBER'S employer and the system that he THE 659
MEMBER wishes to use payroll deduction to purchase service credit 661
or pay for participation in programs established under section 662
3309.691 of the Revised Code;
(3) The procedure to be followed by the system and 664
employers to determine for each request the amount to be 665
deducted, the number of deductions to be made, and the interval 666
at which deductions will be made. The rules may provide for a 667
minimum amount for each deduction or a maximum number of 668
deductions for the purchase of any type of service credit. 669
(4) The procedure to be followed by employers in 671
transmitting amounts deducted from the compensation of their 672
employees to the system; 673
(5) The procedure to be followed by the system in 675
crediting service credit to members who choose to purchase it 676
through payroll deduction. 677
(C) If the board establishes a payroll deduction plan 679
under this section, it shall certify to the member's employer, 680
for each member for whom deductions are to be made, the amount of 681
each deduction and the payrolls from which deductions are to be 682
made. The employer shall make the deductions as certified and 683
transmit the amounts deducted in accordance with the rules 684
established by the board under this section. 685
(D) Rules adopted under this section shall not affect any 687
right to purchase service credit conferred by any other section 688
of the Revised Code, including the right of a member under any 689
16
such section to purchase only part of the service credit he THE 690
MEMBER is eligible to purchase. 692
(E) No payroll deduction made pursuant to this section may 694
exceed the amount of a member's net compensation after all other 695
deductions and withholdings required by law. 696
Sec. 3309.35. (A) As used in this section: 705
(1) "State retirement system" means the public employees 707
retirement system, state teachers retirement system, or school 708
employees retirement system. 709
(2) "Total service credit" means all service credit earned 711
in all state retirement systems, except credit for service 712
subject to section 3309.341 of the Revised Code. Total service 713
credit shall not exceed one year of credit for any twelve-month 714
period. 715
(3) In addition to the meaning given in division (O) of 717
section 3309.01 of the Revised Code, "disability benefit" means 718
"disability benefit" as defined in sections 145.01 and 3307.01 of 719
the Revised Code. 720
(B) To coordinate and integrate membership in the state 722
retirement systems, the following provisions apply: 723
(1) At AT the option of a member, total contributions and 725
service credit in all state retirement systems, INCLUDING AMOUNTS 726
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 727
AND 3309.261 OF THE REVISED CODE, shall be used in determining 729
the eligibility and total retirement or disability benefit 730
payable. When total contributions and service credit are so 731
combined, the following provisions apply:
(a)(1) Service and commuted service retirement or a 733
disability benefit is effective no sooner than the first day of 734
the month next following the last day of employment for which 735
compensation was paid. If the application is filed after that 736
date, the board may retire the member on the first day of the 737
month next following the last day of employment for which 738
compensation was paid. 739
17
(b)(2) In determining eligibility for a disability 741
benefit, the medical examiner's report to the retirement board of 742
any state retirement system, showing that the member's disability 743
incapacitates him THE MEMBER for the performance of duty, may be 744
accepted by the state retirement boards as sufficient for 746
granting a disability benefit. 747
(c)(3) The state retirement system in which the member had 749
the greatest service credit, without adjustment, shall determine 750
and pay the total retirement or disability benefit. Where his 751
THE MEMBER'S credit is equal in two or more state retirement 753
systems, the system having the largest total contributions of the 754
member shall determine and pay the total benefit. 755
(d)(4) In determining the total credit to be used in 757
calculating a retirement allowance or disability benefit, credit 758
shall not be reduced below that certified by the system or 759
systems transferring credit, except that such total combined 760
service credit shall not exceed one year of credit for any one 761
"year" as defined in the law of the system making the 762
calculation. 763
(e)(5) The state retirement system determining and paying 765
a retirement or disability benefit shall receive from the other 766
system or systems the member's refundable account at retirement 767
or the effective date of a disability benefit plus an equal 768
amount from the employers' trust fund. 769
(i)(a) The annuity rates and mortality tables of the state 771
retirement system making the calculation and paying the benefit 772
shall be exclusively applicable. 773
(ii)(b) Deposits made for the purchase of an additional 775
annuity, and including guaranteed interest, upon the request of 776
the member, shall be transferred to the state retirement system 777
paying the retirement or disability benefit. The return upon 778
such deposits shall be that offered by the state retirement 779
system making the calculation and paying the retirement or 780
disability benefit. 781
18
(C) A former member receiving a retirement or disability 783
benefit under this section, who accepts employment amenable to 784
coverage in any state retirement system that participated in his 785
THE MEMBER'S combined benefit, shall be subject to the applicable 787
provisions of law governing such re-employment. If the former 788
member is subject to section 3307.381 of the Revised Code and 789
exceeds the limits on re-employment established by that section, 790
the state retirement system paying a combined benefit shall 791
terminate the entire pension portion of the benefit for the 792
period of re-employment that exceeds the limit in that section. 793
If a former member should be paid any amount in a retirement 794
allowance, to which he THE FORMER MEMBER is not entitled under 795
the applicable provisions of law governing such re-employment, 797
such amount shall be recovered by the state retirement system 798
paying such allowance by utilizing any recovery procedure 799
available under the code provisions of the state retirement 800
system covering such re-employment. 801
(D) An SERS retirant or other system retirant, as defined 803
in section 3309.341 of the Revised Code, is not eligible to 804
receive any benefit under this section for service subject to 805
section 3309.341 of the Revised Code. 806
Section 2. That existing sections 145.294, 145.37, 808
3307.281, 3307.41, 3309.27, and 3309.35 of the Revised Code are 809
hereby repealed.