As Passed by the Senate 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-SENATORS BLESSING-McLIN-OELSLAGER- 13
MUMPER-DRAKE-HERINGTON 14
_________________________________________________________________ 16
A B I L L
To amend sections 145.294, 145.37, 3307.281, 18
3307.41, 3309.27, and 3309.35 and to enact 19
sections 145.311, 145.312, 3307.282, 3307.283, 21
3309.261, and 3309.262 of the Revised Code to 22
allow a member of the Public Employees Retirement 23
System, School Employees Retirement System, or 24
State Teachers Retirement System to restore by
payroll deduction service credit for certain 25
prior service covered by one of the other
systems. 26
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 28
Section 1. That sections 145.294, 145.37, 3307.281, 30
3307.41, 3309.27, and 3309.35 be amended and sections 145.311, 32
145.312, 3307.282, 3307.283, 3309.261, and 3309.262 of the 34
Revised Code be enacted to read as follows:
Sec. 145.294. (A) The public employees retirement board 43
may establish by rule a payroll deduction plan for payment of the 45
cost of restoring service credit under section 145.31 OR 145.311 47
of the Revised Code or purchasing any service credit members of 48
the public employees retirement system are eligible to purchase 49
under this chapter. In addition to any other matter considered 50
2
relevant by the board, the rules shall specify all of the 51
following: 52
(1) The types of service credit that may be paid for 54
through payroll deduction, including the section of the Revised 55
Code that authorizes the purchase of each type of service credit 56
for which payment may be made by payroll deduction; 57
(2) The procedure to be followed by a member to inform his 59
FOR INFORMING THE MEMBER'S employer and the system that he THE 62
MEMBER wishes to purchase service credit under this chapter 64
through payroll deduction;
(3) The procedure to be followed by the system and 66
employers to determine for each request the amount to be 67
deducted, the number of deductions to be made, and the interval 68
at which deductions will be made. The rules may provide for a 69
minimum amount for each deduction or a maximum number of 70
deductions for the purchase of any type of credit. 71
(4) The procedure to be followed by employers in 73
transmitting amounts deducted from the salaries of their 74
employees to the system; 75
(5) The procedure to be followed by the system in 77
crediting service credit to members who choose to purchase it 78
through payroll deduction. 79
(B) If the board establishes a payroll deduction plan 81
under this section, it shall certify to the member's employer for 82
each member for whom deductions are to be made, the amount of 83
each deduction and the payrolls from which deductions are to be 84
made. The employer shall make the deductions as certified and 85
transmit the amounts deducted in accordance with the rules 86
established by the board under this section. 87
(C) Rules adopted under this section shall not affect any 89
right to purchase service credit conferred by any other section 90
of the Revised Code, including the right of a member under any 91
such section to purchase only part of the service credit he THE 92
MEMBER is eligible to purchase. 94
3
(D) No payroll deduction made pursuant to this section may 96
exceed the amount of a member's net compensation after all other 97
deductions and withholdings required by law. 98
Sec. 145.311. (A) A MEMBER OF THE PUBLIC EMPLOYEES 100
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 101
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 102
FIREMEN'S DISABILITY AND PENSION FUND, SCHOOL EMPLOYEES 103
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 104
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF OR NO 105
LONGER CONTRIBUTING TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM OR 106
STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT UNDER 107
SECTION 3307.28 OR 3309.26 OF THE REVISED CODE BY MAKING PAYMENTS 108
PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION PLAN 109
ESTABLISHED UNDER SECTION 145.294 OF THE REVISED CODE. A MEMBER 110
SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE PUBLIC 111
EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE PUBLIC 112
EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE 113
PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 114
RETIREMENT SYSTEM CALCULATE UNDER SECTION 3307.283 OR 3309.262 OF 115
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 117
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 119
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 120
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 121
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 122
RETIREMENT SYSTEM, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL 123
NOTIFY THE MEMBER OF THE COST. 124
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 126
RESTORED UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED CODE, A 128
MEMBER SHALL PAY TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM THE 129
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 130
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 131
3307.283 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 132
4
WHICH DEDUCTIONS ARE MADE UNDER SECTION 145.294 OF THE REVISED 134
CODE.
(C) THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 137
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 138
SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26 OF THE REVISED 140
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 141
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 142
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 143
WHICH THE PAYMENT WAS MADE. 144
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 146
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 148
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 150
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 151
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE PUBLIC 152
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 153
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 155
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 157
Sec. 145.312. AFTER RECEIVING A REQUEST FROM THE STATE 160
TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 3307.282 161
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 164
SECTION 3309.261 OF THE REVISED CODE, THE PUBLIC EMPLOYEES 166
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 167
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 170
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 171
UNDER SECTION 145.31 OF THE REVISED CODE FOR EACH YEAR OR PORTION 172
OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE SERVICE 174
CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 176
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 177
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE. 178
Sec. 145.37. (A) As used in this section: 187
(1) "State retirement system" means the public employees 189
retirement system, school employees retirement system, or state 190
5
teachers retirement system. 191
(2) "Total service credit" means all service credit earned 193
in the state retirement systems, except credit for service 194
subject to section 145.38 of the Revised Code. Total service 195
credit shall not exceed one year of credit for any twelve-month 196
period. 197
(3) In addition to the meaning given in division (N) of 199
section 145.01 of the Revised Code, "disability benefit" means 200
"disability benefit" as defined in sections 3307.01 and 3309.01 201
of the Revised Code. 202
(B) To coordinate and integrate membership in the state 204
retirement systems, the following provisions apply: 205
(1) At the option of a member, total contributions and 207
service credit in all state retirement systems, INCLUDING AMOUNTS 208
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 209
AND 3309.261 OF THE REVISED CODE, shall be used in determining 211
the eligibility and total retirement or disability benefit 212
payable. When total contributions and service credit are so 213
combined, the following provisions apply:
(a) Age and service retirement or disability benefits are 215
effective on the first day of the month immediately following the 216
later of: 217
(i) The last day for which compensation was paid; 219
(ii) The attainment of minimum age or service credit 221
eligibility for benefits provided under this section. 222
(b) In determining eligibility for a disability benefit, 224
the medical examiner's report to the retirement board of any 225
state retirement system, showing that the member's disability 226
incapacitates him THE MEMBER for the performance of duty, may be 227
accepted by the state retirement boards as sufficient for 229
granting a disability benefit. 230
(c) The state retirement system in which the member had 232
the greatest service credit, without adjustment, shall determine 233
and pay the total retirement or disability benefit. Where his 234
6
THE MEMBER'S credit is equal in two or more state retirement 236
systems, the system having the largest total contributions of the 237
member shall determine and pay the total benefit. 238
(d) In determining the total credit to be used in 240
calculating a retirement or disability benefit, credit shall not 241
be reduced below that certified by the system or systems 242
transferring credit, except that such total combined service 243
credit shall not exceed one year of credit for any one "year" as 244
defined in the law of the system making the calculation. 245
(e) The state retirement system determining and paying a 247
retirement or disability benefit shall receive from the other 248
system or systems the member's refundable account at retirement 249
or the effective date of a disability benefit plus an equal 250
amount from the employer's accumulation fund. 251
(i) The annuity rates and mortality tables of the state 253
retirement system making the calculation and paying the benefit 254
shall be exclusively applicable. 255
(ii) Deposits made for the purpose of an additional 257
annuity, and including guaranteed interest, upon the request of 258
the member, shall be transferred to the state retirement system 259
paying the benefit. The return upon such deposits shall be that 260
offered by the state retirement system making the calculation and 261
paying the benefit. 262
(2) A former member receiving a retirement or disability 264
benefit under this section, who accepts employment amenable to 265
coverage in any state retirement system that participated in his 266
THE FORMER MEMBER'S combined benefit, shall be subject to the 268
applicable provisions of law governing such re-employment. If 269
the former member is subject to section 3307.381 of the Revised 270
Code and exceeds the limits on re-employment established by that 271
section, the state retirement system paying a combined benefit 272
shall terminate the entire pension portion of the benefit for the 273
period of re-employment that exceeds the limit in that section. 274
If a former member should be paid any amount in a retirement 275
7
benefit, to which he THE FORMER MEMBER is not entitled under the 276
applicable provisions of law governing such re-employment, such 278
amount shall be recovered by the state retirement system paying 279
such benefit by utilizing any recovery procedure available under 280
the code provisions of the state retirement system covering such 281
re-employment.
(C) A PERS retirant or other system retirant, as defined 283
in section 145.38 of the Revised Code, is not eligible to receive 284
any benefit under this section for service subject to section 285
145.38 of the Revised Code. 286
Sec. 3307.281. (A) The state teachers retirement board 295
may establish by rule payroll deduction plans for payment of the 297
following: 298
(1) The cost of restoring service credit under section 300
3307.28 OR 3307.282 of the Revised Code or purchasing any service 302
credit members of the state teachers retirement system are 303
eligible to purchase under this chapter; 304
(2) Charges for participation in programs established 306
under section 3307.741 of the Revised Code. 307
(B) In addition to any other matter considered relevant by 309
the board, the rules adopted under this section shall specify all 310
of the following: 311
(1) The types of service credit that may be paid for 313
through payroll deduction, including the section of the Revised 314
Code that authorizes the purchase of each type of service credit 315
for which payment may be made by payroll deduction; 316
(2) The procedure to be followed by a member to inform his 318
FOR INFORMING THE MEMBER'S employer and the system that he THE 321
MEMBER wishes to use payroll deduction to purchase service credit 323
or pay for participation in programs established under section 324
3307.741 of the Revised Code;
(3) The procedure to be followed by the system and 326
employers to determine for each request the amount to be 327
deducted, the number of deductions to be made, and the interval 328
8
at which deductions will be made. The rules may provide for a 329
minimum amount for each deduction. They may also provide for a 330
maximum number of deductions for the purchase of any type of 331
service credit. 332
(4) The procedure to be followed by employers in 334
transmitting amounts deducted from the compensation of their 335
employees to the system; 336
(5) The procedure to be followed by the system in 338
crediting service credit to members who choose to purchase it 339
through payroll deduction; 340
(6) The time period within which employers are required to 342
transmit amounts deducted from payrolls to the system. 343
(C)(1) If the board establishes a payroll deduction plan 345
under this section, it shall certify to the member's employer, 346
for each member for whom deductions are to be made, the amount of 347
each deduction and the payrolls from which deductions are to be 348
made. The employer shall make the deductions as certified and 349
transmit the amounts deducted in accordance with the rules 350
established by the board under this section. 351
(2) If an employer does not transmit amounts deducted from 353
the compensation of an employee to the system within the time 354
period specified in rules adopted under division (B)(6) of this 355
section, the employer shall pay interest on the deducted amount 356
compounded annually at a rate to be determined by the board from 357
the date the amount is deducted to the date it is transmitted to 358
the system. 359
(D) Rules adopted under this section shall not affect any 361
right to purchase service credit conferred by any other section 362
of the Revised Code, including the right of a member under any 363
such section to purchase only part of the service credit he THE 364
MEMBER is eligible to purchase. 366
(E) No payroll deduction made pursuant to this section may 368
exceed the amount of a member's net compensation after all other 369
deductions and withholdings required by law. 370
9
(F) No payments made to the system under this section 372
shall affect any contribution required by section 3307.51 or 373
3307.53 of the Revised Code. 374
Sec. 3307.282. (A) A MEMBER OF THE STATE TEACHERS 376
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 377
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 378
RETIREMENT SYSTEM, SCHOOL EMPLOYEES RETIREMENT SYSTEM, OR STATE 379
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF OR NO 380
LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OR 381
SCHOOL EMPLOYEES RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT 382
UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE BY MAKING 383
PAYMENTS PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION 384
PLAN ESTABLISHED UNDER SECTION 3307.281 OF THE REVISED CODE. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL NOTIFY THE 386
STATE TEACHERS RETIREMENT SYSTEM ON A FORM APPROVED BY THE STATE 387
TEACHERS RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE STATE 388
TEACHERS RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 389
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3309.262 OF 390
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 392
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 393
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 394
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 395
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 396
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 397
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER
RETIREMENT SYSTEM, THE STATE TEACHERS RETIREMENT SYSTEM SHALL 399
NOTIFY THE MEMBER OF THE COST. 400
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 402
RESTORED UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE, A 403
MEMBER SHALL PAY TO THE STATE TEACHERS RETIREMENT SYSTEM THE 405
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 406
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 407
145.312 OR 3309.262 OF THE REVISED CODE FOR THE PERIOD DURING 408
10
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3307.281 OF THE REVISED 410
CODE.
(C) THE STATE TEACHERS RETIREMENT BOARD SHALL ANNUALLY 413
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 414
SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 OF THE REVISED 415
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 416
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 417
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 418
WHICH THE PAYMENT WAS MADE. 419
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 421
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 423
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 425
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 426
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE STATE 427
TEACHERS RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 428
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 430
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 432
Sec. 3307.283. AFTER RECEIVING A REQUEST FROM THE PUBLIC 435
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 436
OR THE SCHOOL EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF 439
SECTION 3309.261 OF THE REVISED CODE, THE STATE TEACHERS 441
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 442
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 445
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 446
UNDER SECTION 3307.28 OF THE REVISED CODE FOR EACH YEAR OR 447
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO RESTORE 448
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 450
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 451
AUTHORIZED UNDER SECTION 3307.281 OF THE REVISED CODE. 452
Sec. 3307.41. To coordinate and integrate membership in 461
the state retirement systems, the following provisions apply: 462
(A) As used in this section: 464
11
(1) "Retirement systems" means the public employees 466
retirement system, the state teachers retirement system, and the 467
school employees retirement system. 468
(2) In addition to the meaning given in division (L) of 470
section 3307.01 of the Revised Code, "disability benefit" means 471
"disability benefit" as defined in sections 145.01 and 3309.01 of 472
the Revised Code. 473
(B) At the member's option, total contributions and 475
service credit in all retirement systems, INCLUDING AMOUNTS PAID 476
TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 477
3309.261 OF THE REVISED CODE, shall be used in determining the 479
eligibility for benefits. If total contributions and service 480
credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is 482
effective on the first day of the month next following the later 483
of: 484
(a) The last day for which compensation was paid; 486
(b) The attainment of minimum age or service credit for 488
benefits provided under this section. 489
(2) "Total service credit" includes the total credit in 491
all retirement systems except that such credit shall not exceed 492
one year for any period of twelve months. 493
(3) In determining eligibility for a disability benefit, 495
the medical examiner's report to the board of any retirement 496
system, showing that the member's disability incapacitates him 497
THE MEMBER for the performance of duty, may be accepted as 499
sufficient for granting a disability benefit. 500
(4) The retirement system in which the member had the 502
greatest service credit, without adjustment, shall determine and 503
pay the total benefit. If his THE MEMBER'S credit is equal in 504
two or more retirement systems, the system having the member's 506
largest total contributions shall determine and pay the total 507
benefit.
(5) In determining the total credit to be used in 509
12
calculating a benefit, credit shall not be reduced below that 510
certified by the system or systems transferring credit, except 511
that such total combined service credit shall not exceed one year 512
of credit for any one "year" as defined in the statute governing 513
the system making the calculation. 514
(6) The retirement system determining and paying the 516
benefit shall receive from the other system or systems the 517
member's refundable account at retirement or the effective date 518
of a disability benefit plus an equal amount from the employers' 519
trust fund. 520
(a) The annuity rates and mortality tables of the 522
retirement system making the calculation and paying the benefit 523
shall be applicable. 524
(b) Deposits made for the purchase of additional income, 526
with guaranteed interest, upon the member's request, shall be 527
transferred to the retirement system paying the regular benefit. 528
The return upon such deposits shall be that offered by the 529
retirement system making the calculation and paying the regular 530
benefit. 531
(C) A person receiving a benefit under this section, who 533
accepts employment amenable to coverage in any retirement system 534
that participated in his THE PERSON'S combined benefit, shall be 535
subject to the applicable provisions of law governing such 537
re-employment. If the person is subject to section 3307.381 of 538
the Revised Code and exceeds the limits on re-employment 539
established by that section, the retirement system paying a 540
combined benefit shall terminate the entire pension portion of 541
the benefit for the period of re-employment that exceeds the 542
limit in that section.
If a retirant should be paid any amount to which he THE 544
RETIRANT is not entitled under the applicable provisions of law 546
governing such re-employment, such amount shall be recouped by 547
the retirement system paying such benefit by utilizing any 548
recovery procedure available under the law of the retirement 549
13
system covering such re-employment. 550
Sec. 3309.261. (A) A MEMBER OF THE SCHOOL EMPLOYEES 552
RETIREMENT SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF 553
CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND 554
FIREMEN'S DISABILITY AND PENSION FUND, PUBLIC EMPLOYEES 555
RETIREMENT SYSTEM, STATE TEACHERS RETIREMENT SYSTEM, OR STATE 556
HIGHWAY PATROL RETIREMENT SYSTEM, AND IS A FORMER MEMBER OF OR NO 557
LONGER CONTRIBUTING TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM OR 558
STATE TEACHERS RETIREMENT SYSTEM MAY RESTORE SERVICE CREDIT UNDER 559
SECTION 145.31 OR 3307.28 OF THE REVISED CODE BY MAKING PAYMENTS 560
PURSUANT TO THIS SECTION THROUGH A PAYROLL DEDUCTION PLAN 561
ESTABLISHED UNDER SECTION 3309.27 OF THE REVISED CODE. A MEMBER 562
SEEKING TO RESTORE SERVICE CREDIT SHALL NOTIFY THE SCHOOL 563
EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED BY THE SCHOOL 564
EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE NOTICE, THE 565
SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER 566
RETIREMENT SYSTEM CALCULATE UNDER SECTION 145.312 OR 3307.283 OF 567
THE REVISED CODE THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT 569
FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE 570
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT THE 571
FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING THE 572
SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF THIS 573
SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE 574
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER 575
RETIREMENT SYSTEM, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL 576
NOTIFY THE MEMBER OF THE COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT 578
RESTORED UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE, A 579
MEMBER SHALL PAY TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM THE 581
AMOUNT CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT 582
A RATE SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 583
145.312 OR 3307.283 OF THE REVISED CODE FOR THE PERIOD DURING 584
WHICH DEDUCTIONS ARE MADE UNDER SECTION 3309.27 OF THE REVISED 586
CODE.
14
(C) THE SCHOOL EMPLOYEES RETIREMENT BOARD SHALL ANNUALLY 589
NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO RESTORE 590
SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28 OF THE REVISED 592
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS TRANSFERRED UNDER 593
DIVISION (D) OF THIS SECTION, THE FORMER RETIREMENT SYSTEM SHALL 594
RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR 595
WHICH THE PAYMENT WAS MADE. 596
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED 598
CONTRIBUTIONS OR AN AGE AND SERVICE RETIREMENT, DISABILITY, OR 600
SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309. OF THE 602
REVISED CODE BY A MEMBER WHO MADE PAYMENTS UNDER THIS SECTION TO 603
RESTORE SERVICE CREDIT IN A FORMER RETIREMENT SYSTEM, THE SCHOOL 604
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT 605
SYSTEM AN AMOUNT EQUAL TO THE TOTAL AMOUNT PAID BY THE MEMBER 606
UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION. 608
Sec. 3309.262. AFTER RECEIVING A REQUEST FROM THE PUBLIC 611
EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION (A) OF SECTION 145.311 612
OR THE STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION (A) OF 615
SECTION 3307.282 OF THE REVISED CODE, THE SCHOOL EMPLOYEES 617
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING: 618
(A) CALCULATE AND CERTIFY TO THE REQUESTING RETIREMENT 621
SYSTEM THE COST TO A FORMER MEMBER TO RESTORE SERVICE CREDIT 622
UNDER SECTION 3309.26 OF THE REVISED CODE FOR EACH YEAR OR 623
PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO PURCHASE 624
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF 626
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN 627
AUTHORIZED UNDER SECTION 3309.27 OF THE REVISED CODE. 628
Sec. 3309.27. (A) The school employees retirement board 637
may establish by rule payroll deduction plans for payment of the 639
following: 640
(1) The cost of restoring service credit under section 642
3309.26 OR 3309.261 of the Revised Code or purchasing any service 644
15
credit members of the school employees retirement system are 645
eligible to purchase under this chapter; 646
(2) Charges for participation in programs established 648
under section 3309.691 of the Revised Code. 649
(B) In addition to any other matter considered relevant by 651
the board, the rules adopted under this section shall specify all 652
of the following: 653
(1) The types of service credit that may be paid for 655
through payroll deduction, including the section of the Revised 656
Code that authorizes the purchase of each type of service credit 657
for which payment may be made by payroll deduction; 658
(2) The procedure to be followed by a member to inform his 660
FOR INFORMING THE MEMBER'S employer and the system that he THE 663
MEMBER wishes to use payroll deduction to purchase service credit 665
or pay for participation in programs established under section 666
3309.691 of the Revised Code;
(3) The procedure to be followed by the system and 668
employers to determine for each request the amount to be 669
deducted, the number of deductions to be made, and the interval 670
at which deductions will be made. The rules may provide for a 671
minimum amount for each deduction or a maximum number of 672
deductions for the purchase of any type of service credit. 673
(4) The procedure to be followed by employers in 675
transmitting amounts deducted from the compensation of their 676
employees to the system; 677
(5) The procedure to be followed by the system in 679
crediting service credit to members who choose to purchase it 680
through payroll deduction. 681
(C) If the board establishes a payroll deduction plan 683
under this section, it shall certify to the member's employer, 684
for each member for whom deductions are to be made, the amount of 685
each deduction and the payrolls from which deductions are to be 686
made. The employer shall make the deductions as certified and 687
transmit the amounts deducted in accordance with the rules 688
16
established by the board under this section. 689
(D) Rules adopted under this section shall not affect any 691
right to purchase service credit conferred by any other section 692
of the Revised Code, including the right of a member under any 693
such section to purchase only part of the service credit he THE 694
MEMBER is eligible to purchase. 696
(E) No payroll deduction made pursuant to this section may 698
exceed the amount of a member's net compensation after all other 699
deductions and withholdings required by law. 700
Sec. 3309.35. (A) As used in this section: 709
(1) "State retirement system" means the public employees 711
retirement system, state teachers retirement system, or school 712
employees retirement system. 713
(2) "Total service credit" means all service credit earned 715
in all state retirement systems, except credit for service 716
subject to section 3309.341 of the Revised Code. Total service 717
credit shall not exceed one year of credit for any twelve-month 718
period. 719
(3) In addition to the meaning given in division (O) of 721
section 3309.01 of the Revised Code, "disability benefit" means 722
"disability benefit" as defined in sections 145.01 and 3307.01 of 723
the Revised Code. 724
(B) To coordinate and integrate membership in the state 726
retirement systems, the following provisions apply: 727
(1) At AT the option of a member, total contributions and 729
service credit in all state retirement systems, INCLUDING AMOUNTS 730
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, 731
AND 3309.261 OF THE REVISED CODE, shall be used in determining 733
the eligibility and total retirement or disability benefit 734
payable. When total contributions and service credit are so 735
combined, the following provisions apply:
(a)(1) Service and commuted service retirement or a 737
disability benefit is effective no sooner than the first day of 738
the month next following the last day of employment for which 739
17
compensation was paid. If the application is filed after that 740
date, the board may retire the member on the first day of the 741
month next following the last day of employment for which 742
compensation was paid. 743
(b)(2) In determining eligibility for a disability 745
benefit, the medical examiner's report to the retirement board of 746
any state retirement system, showing that the member's disability 747
incapacitates him THE MEMBER for the performance of duty, may be 748
accepted by the state retirement boards as sufficient for 750
granting a disability benefit. 751
(c)(3) The state retirement system in which the member had 753
the greatest service credit, without adjustment, shall determine 754
and pay the total retirement or disability benefit. Where his 755
THE MEMBER'S credit is equal in two or more state retirement 757
systems, the system having the largest total contributions of the 758
member shall determine and pay the total benefit. 759
(d)(4) In determining the total credit to be used in 761
calculating a retirement allowance or disability benefit, credit 762
shall not be reduced below that certified by the system or 763
systems transferring credit, except that such total combined 764
service credit shall not exceed one year of credit for any one 765
"year" as defined in the law of the system making the 766
calculation. 767
(e)(5) The state retirement system determining and paying 769
a retirement or disability benefit shall receive from the other 770
system or systems the member's refundable account at retirement 771
or the effective date of a disability benefit plus an equal 772
amount from the employers' trust fund. 773
(i)(a) The annuity rates and mortality tables of the state 775
retirement system making the calculation and paying the benefit 776
shall be exclusively applicable. 777
(ii)(b) Deposits made for the purchase of an additional 779
annuity, and including guaranteed interest, upon the request of 780
the member, shall be transferred to the state retirement system 781
18
paying the retirement or disability benefit. The return upon 782
such deposits shall be that offered by the state retirement 783
system making the calculation and paying the retirement or 784
disability benefit. 785
(C) A former member receiving a retirement or disability 787
benefit under this section, who accepts employment amenable to 788
coverage in any state retirement system that participated in his 789
THE MEMBER'S combined benefit, shall be subject to the applicable 791
provisions of law governing such re-employment. If the former 792
member is subject to section 3307.381 of the Revised Code and 793
exceeds the limits on re-employment established by that section, 794
the state retirement system paying a combined benefit shall 795
terminate the entire pension portion of the benefit for the 796
period of re-employment that exceeds the limit in that section. 797
If a former member should be paid any amount in a retirement 798
allowance, to which he THE FORMER MEMBER is not entitled under 799
the applicable provisions of law governing such re-employment, 801
such amount shall be recovered by the state retirement system 802
paying such allowance by utilizing any recovery procedure 803
available under the code provisions of the state retirement 804
system covering such re-employment. 805
(D) An SERS retirant or other system retirant, as defined 807
in section 3309.341 of the Revised Code, is not eligible to 808
receive any benefit under this section for service subject to 809
section 3309.341 of the Revised Code. 810
Section 2. That existing sections 145.294, 145.37, 812
3307.281, 3307.41, 3309.27, and 3309.35 of the Revised Code are 813
hereby repealed.