As Passed by the House 1
123rd General Assembly 4
Regular Session Am. Sub. H. B. No. 15 5
1999-2000 6
REPRESENTATIVES MOTTLEY-TIBERI-SCHULER-ALLEN-JAMES-GRENDELL- 10
D. MILLER-OPFER-WILLAMOWSKI-LUCAS-GARDNER-TERWILLEGER-BRITTON-
THOMAS-SULZER-BENDER-OLMAN-EVANS-JOLIVETTE-VESPER-OGG-HOLLISTER- 11
PERRY-CORBIN-DISTEL-PETERSON-SMITH-ROBERTS-PATTON-BARNES-AUSTRIA- 12
JONES-VERICH-SALERNO 13
_________________________________________________________________ 14
A B I L L
To amend sections 145.294, 145.37, 3307.281, 16
3307.41, 3309.27, and 3309.35 and to enact 17
sections 145.311, 145.312, 3307.282, 3307.283, 19
3309.261, and 3309.262 of the Revised Code to 20
allow a member of the Public Employees Retirement 21
System, School Employees Retirement System, or 22
State Teachers Retirement System to restore by
payroll deduction service credit for certain 23
prior service covered by one of the other
systems. 24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 145.294, 145.37, 3307.281, 28
3307.41, 3309.27, and 3309.35 be amended and sections 145.311, 30
145.312, 3307.282, 3307.283, 3309.261, and 3309.262 of the 32
Revised Code be enacted to read as follows:
Sec. 145.294. (A) The public employees retirement board 41
may establish by rule a payroll deduction plan for payment of the 43
cost of restoring service credit under section 145.31 OR 145.311 45
of the Revised Code or purchasing any service credit members of 46
the public employees retirement system are eligible to purchase 47
under this chapter. In addition to any other matter considered 48
relevant by the board, the rules shall specify all of the 49
2
following: 50
(1) The types of service credit that may be paid for 52
through payroll deduction, including the section of the Revised 53
Code that authorizes the purchase of each type of service credit 54
for which payment may be made by payroll deduction; 55
(2) The procedure to be followed by a member to inform his 57
FOR INFORMING THE MEMBER'S employer and the system that he THE 60
MEMBER wishes to purchase service credit under this chapter 62
through payroll deduction;
(3) The procedure to be followed by the system and 64
employers to determine for each request the amount to be 65
deducted, the number of deductions to be made, and the interval 66
at which deductions will be made. The rules may provide for a 67
minimum amount for each deduction or a maximum number of 68
deductions for the purchase of any type of credit. 69
(4) The procedure to be followed by employers in 71
transmitting amounts deducted from the salaries of their 72
employees to the system; 73
(5) The procedure to be followed by the system in 75
crediting service credit to members who choose to purchase it 76
through payroll deduction. 77
(B) If the board establishes a payroll deduction plan 79
under this section, it shall certify to the member's employer for 80
each member for whom deductions are to be made, the amount of 81
each deduction and the payrolls from which deductions are to be 82
made. The employer shall make the deductions as certified and 83
transmit the amounts deducted in accordance with the rules 84
established by the board under this section. 85
(C) Rules adopted under this section shall not affect any 87
right to purchase service credit conferred by any other section 88
of the Revised Code, including the right of a member under any 89
such section to purchase only part of the service credit he THE 90
MEMBER is eligible to purchase. 92
(D) No payroll deduction made pursuant to this section may 94
3
exceed the amount of a member's net compensation after all other 95
deductions and withholdings required by law. 96
Sec. 145.311. (A) A MEMBER OF THE PUBLIC EMPLOYEES 98
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 99
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 100
FIREMEN'S DISABILITY AND PENSION FUND, SCHOOL EMPLOYEES 101
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 102
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 103
NO LONGER CONTRIBUTING TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM 104
OR STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 105
UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED CODE BY MAKING 106
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 107
PLAN ESTABLISHED UNDER SECTION 145.294 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE 109
PUBLIC EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE 110
PUBLIC EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, 111
THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE 112
FORMER RETIREMENT SYSTEM CALCULATE UNDER SECTION 3307.283 OR
3309.262 OF THE REVISED CODE THE COST TO THE MEMBER TO RESTORE 114
SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR 115
WHICH THE MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT 116
THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING 117
THE SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF 118
THIS SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 119
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 120
RETIREMENT SYSTEM, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL 121
NOTIFY THE MEMBER OF THE COST. 122
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 124
RESTORED UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED CODE, A 126
MEMBER SHALL PAY TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM THE 127
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 128
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 129
3307.283 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 130
WHICH DEDUCTIONS ARE MADE UNDER SECTION 145.294 OF THE REVISED 132
4
CODE.
(C) THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 135
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 136
SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED 138
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 139
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 140
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 141
WHICH THE PAYMENT WAS MADE. 142
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 144
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 146
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 148
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 149
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE PUBLIC 150
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 151
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 153
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 155
Sec. 145.312. AFTER RECEIVING A REQUEST FROM THE STATE 158
TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 3307.282 159
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 162
SECTION 3309.261 OF THE REVISED CODE, THE PUBLIC EMPLOYEES 164
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 165
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 168
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 169
UNDER SECTION 145.31 OF THE REVISED CODE FOR EACH YEAR OR PORTION 170
OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE SERVICE 172
CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 174
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 175
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE. 176
Sec. 145.37. (A) As used in this section: 185
(1) "State retirement system" means the public employees 187
retirement system, school employees retirement system, or state 188
teachers retirement system. 189
5
(2) "Total service credit" means all service credit earned 191
in the state retirement systems, except credit for service 192
subject to section 145.38 of the Revised Code. Total service 193
credit shall not exceed one year of credit for any twelve-month 194
period. 195
(3) In addition to the meaning given in division (N) of 197
section 145.01 of the Revised Code, "disability benefit" means 198
"disability benefit" as defined in sections 3307.01 and 3309.01 199
of the Revised Code. 200
(B) To coordinate and integrate membership in the state 202
retirement systems, the following provisions apply: 203
(1) At the option of a member, total contributions and 205
service credit in all state retirement systems, INCLUDING AMOUNTS 206
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 207
AND 3309.261 OF THE REVISED CODE, shall be used in determining 209
the eligibility and total retirement or disability benefit 210
payable. When total contributions and service credit are so 211
combined, the following provisions apply:
(a) Age and service retirement or disability benefits are 213
effective on the first day of the month immediately following the 214
later of: 215
(i) The last day for which compensation was paid; 217
(ii) The attainment of minimum age or service credit 219
eligibility for benefits provided under this section. 220
(b) In determining eligibility for a disability benefit, 222
the medical examiner's report to the retirement board of any 223
state retirement system, showing that the member's disability 224
incapacitates him THE MEMBER for the performance of duty, may be 225
accepted by the state retirement boards as sufficient for 227
granting a disability benefit. 228
(c) The state retirement system in which the member had 230
the greatest service credit, without adjustment, shall determine 231
and pay the total retirement or disability benefit. Where his 232
THE MEMBER'S credit is equal in two or more state retirement 234
6
systems, the system having the largest total contributions of the 235
member shall determine and pay the total benefit. 236
(d) In determining the total credit to be used in 238
calculating a retirement or disability benefit, credit shall not 239
be reduced below that certified by the system or systems 240
transferring credit, except that such total combined service 241
credit shall not exceed one year of credit for any one "year" as 242
defined in the law of the system making the calculation. 243
(e) The state retirement system determining and paying a 245
retirement or disability benefit shall receive from the other 246
system or systems the member's refundable account at retirement 247
or the effective date of a disability benefit plus an equal 248
amount from the employer's accumulation fund. 249
(i) The annuity rates and mortality tables of the state 251
retirement system making the calculation and paying the benefit 252
shall be exclusively applicable. 253
(ii) Deposits made for the purpose of an additional 255
annuity, and including guaranteed interest, upon the request of 256
the member, shall be transferred to the state retirement system 257
paying the benefit. The return upon such deposits shall be that 258
offered by the state retirement system making the calculation and 259
paying the benefit. 260
(2) A former member receiving a retirement or disability 262
benefit under this section, who accepts employment amenable to 263
coverage in any state retirement system that participated in his 264
THE FORMER MEMBER'S combined benefit, shall be subject to the 266
applicable provisions of law governing such re-employment. If 267
the former member is subject to section 3307.381 of the Revised 268
Code and exceeds the limits on re-employment established by that 269
section, the state retirement system paying a combined benefit 270
shall terminate the entire pension portion of the benefit for the 271
period of re-employment that exceeds the limit in that section. 272
If a former member should be paid any amount in a retirement 273
benefit, to which he THE FORMER MEMBER is not entitled under the 274
7
applicable provisions of law governing such re-employment, such 276
amount shall be recovered by the state retirement system paying 277
such benefit by utilizing any recovery procedure available under 278
the code provisions of the state retirement system covering such 279
re-employment.
(C) A PERS retirant or other system retirant, as defined 281
in section 145.38 of the Revised Code, is not eligible to receive 282
any benefit under this section for service subject to section 283
145.38 of the Revised Code. 284
Sec. 3307.281. (A) The state teachers retirement board 293
may establish by rule payroll deduction plans for payment of the 295
following: 296
(1) The cost of restoring service credit under section 298
3307.28 OR 3307.282 of the Revised Code or purchasing any service 300
credit members of the state teachers retirement system are 301
eligible to purchase under this chapter; 302
(2) Charges for participation in programs established 304
under section 3307.741 of the Revised Code. 305
(B) In addition to any other matter considered relevant by 307
the board, the rules adopted under this section shall specify all 308
of the following: 309
(1) The types of service credit that may be paid for 311
through payroll deduction, including the section of the Revised 312
Code that authorizes the purchase of each type of service credit 313
for which payment may be made by payroll deduction; 314
(2) The procedure to be followed by a member to inform his 316
FOR INFORMING THE MEMBER'S employer and the system that he THE 319
MEMBER wishes to use payroll deduction to purchase service credit 321
or pay for participation in programs established under section 322
3307.741 of the Revised Code;
(3) The procedure to be followed by the system and 324
employers to determine for each request the amount to be 325
deducted, the number of deductions to be made, and the interval 326
at which deductions will be made. The rules may provide for a 327
8
minimum amount for each deduction. They may also provide for a 328
maximum number of deductions for the purchase of any type of 329
service credit. 330
(4) The procedure to be followed by employers in 332
transmitting amounts deducted from the compensation of their 333
employees to the system; 334
(5) The procedure to be followed by the system in 336
crediting service credit to members who choose to purchase it 337
through payroll deduction; 338
(6) The time period within which employers are required to 340
transmit amounts deducted from payrolls to the system. 341
(C)(1) If the board establishes a payroll deduction plan 343
under this section, it shall certify to the member's employer, 344
for each member for whom deductions are to be made, the amount of 345
each deduction and the payrolls from which deductions are to be 346
made. The employer shall make the deductions as certified and 347
transmit the amounts deducted in accordance with the rules 348
established by the board under this section. 349
(2) If an employer does not transmit amounts deducted from 351
the compensation of an employee to the system within the time 352
period specified in rules adopted under division (B)(6) of this 353
section, the employer shall pay interest on the deducted amount 354
compounded annually at a rate to be determined by the board from 355
the date the amount is deducted to the date it is transmitted to 356
the system. 357
(D) Rules adopted under this section shall not affect any 359
right to purchase service credit conferred by any other section 360
of the Revised Code, including the right of a member under any 361
such section to purchase only part of the service credit he THE 362
MEMBER is eligible to purchase. 364
(E) No payroll deduction made pursuant to this section may 366
exceed the amount of a member's net compensation after all other 367
deductions and withholdings required by law. 368
(F) No payments made to the system under this section 370
9
shall affect any contribution required by section 3307.51 or 371
3307.53 of the Revised Code. 372
Sec. 3307.282. (A) A MEMBER OF THE STATE TEACHERS 374
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 375
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 376
RETIREMENT SYSTEM, SCHOOL EMPLOYEES RETIREMENT SYSTEM, OR STATE 377
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 378
NO LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 379
OR SCHOOL EMPLOYEES RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 380
UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE BY MAKING 381
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 382
PLAN ESTABLISHED UNDER SECTION 3307.281 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE 384
STATE TEACHERS RETIREMENT SYSTEM ON A FORM APPROVED BY THE STATE 385
TEACHERS RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE STATE 386
TEACHERS RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 387
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3309.262 OF 388
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 390
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 391
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 392
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 393
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 394
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 395
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER
RETIREMENT SYSTEM, THE STATE TEACHERS RETIREMENT SYSTEM SHALL 397
NOTIFY THE MEMBER OF THE COST. 398
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 400
RESTORED UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE, A 401
MEMBER SHALL PAY TO THE STATE TEACHERS RETIREMENT SYSTEM THE 403
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 404
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 405
145.312 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 406
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3307.281 OF THE REVISED 408
10
CODE.
(C) THE STATE TEACHERS RETIREMENT BOARD SHALL ANNUALLY 411
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 412
SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 OF THE REVISED 413
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 414
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 415
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 416
WHICH THE PAYMENT WAS MADE. 417
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 419
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 421
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 423
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 424
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE STATE 425
TEACHERS RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 426
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 428
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 430
Sec. 3307.283. AFTER RECEIVING A REQUEST FROM THE PUBLIC 433
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 434
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 437
SECTION 3309.261 OF THE REVISED CODE, THE STATE TEACHERS 439
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 440
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 443
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 444
UNDER SECTION 3307.28 OF THE REVISED CODE FOR EACH YEAR OR 445
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE 446
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 448
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 449
AUTHORIZED UNDER SECTION 3307.281 OF THE REVISED CODE. 450
Sec. 3307.41. To coordinate and integrate membership in 459
the state retirement systems, the following provisions apply: 460
(A) As used in this section: 462
(1) "Retirement systems" means the public employees 464
11
retirement system, the state teachers retirement system, and the 465
school employees retirement system. 466
(2) In addition to the meaning given in division (L) of 468
section 3307.01 of the Revised Code, "disability benefit" means 469
"disability benefit" as defined in sections 145.01 and 3309.01 of 470
the Revised Code. 471
(B) At the member's option, total contributions and 473
service credit in all retirement systems, INCLUDING AMOUNTS PAID 474
TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 475
3309.261 OF THE REVISED CODE, shall be used in determining the 477
eligibility for benefits. If total contributions and service 478
credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is 480
effective on the first day of the month next following the later 481
of: 482
(a) The last day for which compensation was paid; 484
(b) The attainment of minimum age or service credit for 486
benefits provided under this section. 487
(2) "Total service credit" includes the total credit in 489
all retirement systems except that such credit shall not exceed 490
one year for any period of twelve months. 491
(3) In determining eligibility for a disability benefit, 493
the medical examiner's report to the board of any retirement 494
system, showing that the member's disability incapacitates him 495
THE MEMBER for the performance of duty, may be accepted as 497
sufficient for granting a disability benefit. 498
(4) The retirement system in which the member had the 500
greatest service credit, without adjustment, shall determine and 501
pay the total benefit. If his THE MEMBER'S credit is equal in 502
two or more retirement systems, the system having the member's 504
largest total contributions shall determine and pay the total 505
benefit.
(5) In determining the total credit to be used in 507
calculating a benefit, credit shall not be reduced below that 508
12
certified by the system or systems transferring credit, except 509
that such total combined service credit shall not exceed one year 510
of credit for any one "year" as defined in the statute governing 511
the system making the calculation. 512
(6) The retirement system determining and paying the 514
benefit shall receive from the other system or systems the 515
member's refundable account at retirement or the effective date 516
of a disability benefit plus an equal amount from the employers' 517
trust fund. 518
(a) The annuity rates and mortality tables of the 520
retirement system making the calculation and paying the benefit 521
shall be applicable. 522
(b) Deposits made for the purchase of additional income, 524
with guaranteed interest, upon the member's request, shall be 525
transferred to the retirement system paying the regular benefit. 526
The return upon such deposits shall be that offered by the 527
retirement system making the calculation and paying the regular 528
benefit. 529
(C) A person receiving a benefit under this section, who 531
accepts employment amenable to coverage in any retirement system 532
that participated in his THE PERSON'S combined benefit, shall be 533
subject to the applicable provisions of law governing such 535
re-employment. If the person is subject to section 3307.381 of 536
the Revised Code and exceeds the limits on re-employment 537
established by that section, the retirement system paying a 538
combined benefit shall terminate the entire pension portion of 539
the benefit for the period of re-employment that exceeds the 540
limit in that section.
If a retirant should be paid any amount to which he THE 542
RETIRANT is not entitled under the applicable provisions of law 544
governing such re-employment, such amount shall be recouped by 545
the retirement system paying such benefit by utilizing any 546
recovery procedure available under the law of the retirement 547
system covering such re-employment. 548
13
Sec. 3309.261. (A) A MEMBER OF THE SCHOOL EMPLOYEES 550
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 551
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 552
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 553
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 554
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF AND 555
NO LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM 556
OR STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 557
UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE BY MAKING 558
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 559
PLAN ESTABLISHED UNDER SECTION 3309.27 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE SERVICE CREDIT SHALL NOTIFY THE SCHOOL 561
EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE SCHOOL 562
EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE 563
SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 564
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3307.283 OF 565
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 567
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 568
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 569
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 570
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 571
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 572
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 573
RETIREMENT SYSTEM, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL 574
NOTIFY THE MEMBER OF THE COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 576
RESTORED UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE, A 577
MEMBER SHALL PAY TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM THE 579
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 580
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 581
145.312 OR 3307.283 OF THE REVISED CODE FOR THE PERIOD DURING 582
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3309.27 OF THE REVISED 584
CODE.
(C) THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 587
14
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 588
SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28 OF THE REVISED 590
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 591
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 592
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 593
WHICH THE PAYMENT WAS MADE. 594
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 596
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 598
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 600
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 601
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE SCHOOL 602
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 603
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 604
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 606
Sec. 3309.262. AFTER RECEIVING A REQUEST FROM THE PUBLIC 609
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 610
OR THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF 613
SECTION 3307.282 OF THE REVISED CODE, THE SCHOOL EMPLOYEES 615
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 616
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 619
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 620
UNDER SECTION 3309.26 OF THE REVISED CODE FOR EACH YEAR OR 621
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE 622
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 624
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 625
AUTHORIZED UNDER SECTION 3309.27 OF THE REVISED CODE. 626
Sec. 3309.27. (A) The school employees retirement board 635
may establish by rule payroll deduction plans for payment of the 637
following: 638
(1) The cost of restoring service credit under section 640
3309.26 OR 3309.261 of the Revised Code or purchasing any service 642
credit members of the school employees retirement system are 643
15
eligible to purchase under this chapter; 644
(2) Charges for participation in programs established 646
under section 3309.691 of the Revised Code. 647
(B) In addition to any other matter considered relevant by 649
the board, the rules adopted under this section shall specify all 650
of the following: 651
(1) The types of service credit that may be paid for 653
through payroll deduction, including the section of the Revised 654
Code that authorizes the purchase of each type of service credit 655
for which payment may be made by payroll deduction; 656
(2) The procedure to be followed by a member to inform his 658
FOR INFORMING THE MEMBER'S employer and the system that he THE 661
MEMBER wishes to use payroll deduction to purchase service credit 663
or pay for participation in programs established under section 664
3309.691 of the Revised Code;
(3) The procedure to be followed by the system and 666
employers to determine for each request the amount to be 667
deducted, the number of deductions to be made, and the interval 668
at which deductions will be made. The rules may provide for a 669
minimum amount for each deduction or a maximum number of 670
deductions for the purchase of any type of service credit. 671
(4) The procedure to be followed by employers in 673
transmitting amounts deducted from the compensation of their 674
employees to the system; 675
(5) The procedure to be followed by the system in 677
crediting service credit to members who choose to purchase it 678
through payroll deduction. 679
(C) If the board establishes a payroll deduction plan 681
under this section, it shall certify to the member's employer, 682
for each member for whom deductions are to be made, the amount of 683
each deduction and the payrolls from which deductions are to be 684
made. The employer shall make the deductions as certified and 685
transmit the amounts deducted in accordance with the rules 686
established by the board under this section. 687
16
(D) Rules adopted under this section shall not affect any 689
right to purchase service credit conferred by any other section 690
of the Revised Code, including the right of a member under any 691
such section to purchase only part of the service credit he THE 692
MEMBER is eligible to purchase. 694
(E) No payroll deduction made pursuant to this section may 696
exceed the amount of a member's net compensation after all other 697
deductions and withholdings required by law. 698
Sec. 3309.35. (A) As used in this section: 707
(1) "State retirement system" means the public employees 709
retirement system, state teachers retirement system, or school 710
employees retirement system. 711
(2) "Total service credit" means all service credit earned 713
in all state retirement systems, except credit for service 714
subject to section 3309.341 of the Revised Code. Total service 715
credit shall not exceed one year of credit for any twelve-month 716
period. 717
(3) In addition to the meaning given in division (O) of 719
section 3309.01 of the Revised Code, "disability benefit" means 720
"disability benefit" as defined in sections 145.01 and 3307.01 of 721
the Revised Code. 722
(B) To coordinate and integrate membership in the state 724
retirement systems, the following provisions apply: 725
(1) At AT the option of a member, total contributions and 727
service credit in all state retirement systems, INCLUDING AMOUNTS 728
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 729
AND 3309.261 OF THE REVISED CODE, shall be used in determining 731
the eligibility and total retirement or disability benefit 732
payable. When total contributions and service credit are so 733
combined, the following provisions apply:
(a)(1) Service and commuted service retirement or a 735
disability benefit is effective no sooner than the first day of 736
the month next following the last day of employment for which 737
compensation was paid. If the application is filed after that 738
17
date, the board may retire the member on the first day of the 739
month next following the last day of employment for which 740
compensation was paid. 741
(b)(2) In determining eligibility for a disability 743
benefit, the medical examiner's report to the retirement board of 744
any state retirement system, showing that the member's disability 745
incapacitates him THE MEMBER for the performance of duty, may be 746
accepted by the state retirement boards as sufficient for 748
granting a disability benefit. 749
(c)(3) The state retirement system in which the member had 751
the greatest service credit, without adjustment, shall determine 752
and pay the total retirement or disability benefit. Where his 753
THE MEMBER'S credit is equal in two or more state retirement 755
systems, the system having the largest total contributions of the 756
member shall determine and pay the total benefit. 757
(d)(4) In determining the total credit to be used in 759
calculating a retirement allowance or disability benefit, credit 760
shall not be reduced below that certified by the system or 761
systems transferring credit, except that such total combined 762
service credit shall not exceed one year of credit for any one 763
"year" as defined in the law of the system making the 764
calculation. 765
(e)(5) The state retirement system determining and paying 767
a retirement or disability benefit shall receive from the other 768
system or systems the member's refundable account at retirement 769
or the effective date of a disability benefit plus an equal 770
amount from the employers' trust fund. 771
(i)(a) The annuity rates and mortality tables of the state 773
retirement system making the calculation and paying the benefit 774
shall be exclusively applicable. 775
(ii)(b) Deposits made for the purchase of an additional 777
annuity, and including guaranteed interest, upon the request of 778
the member, shall be transferred to the state retirement system 779
paying the retirement or disability benefit. The return upon 780
18
such deposits shall be that offered by the state retirement 781
system making the calculation and paying the retirement or 782
disability benefit. 783
(C) A former member receiving a retirement or disability 785
benefit under this section, who accepts employment amenable to 786
coverage in any state retirement system that participated in his 787
THE MEMBER'S combined benefit, shall be subject to the applicable 789
provisions of law governing such re-employment. If the former 790
member is subject to section 3307.381 of the Revised Code and 791
exceeds the limits on re-employment established by that section, 792
the state retirement system paying a combined benefit shall 793
terminate the entire pension portion of the benefit for the 794
period of re-employment that exceeds the limit in that section. 795
If a former member should be paid any amount in a retirement 796
allowance, to which he THE FORMER MEMBER is not entitled under 797
the applicable provisions of law governing such re-employment, 799
such amount shall be recovered by the state retirement system 800
paying such allowance by utilizing any recovery procedure 801
available under the code provisions of the state retirement 802
system covering such re-employment. 803
(D) An SERS retirant or other system retirant, as defined 805
in section 3309.341 of the Revised Code, is not eligible to 806
receive any benefit under this section for service subject to 807
section 3309.341 of the Revised Code. 808
Section 2. That existing sections 145.294, 145.37, 810
3307.281, 3307.41, 3309.27, and 3309.35 of the Revised Code are 811
hereby repealed.