As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                              H. B. No. 186      5            

      1999-2000                                                    6            


       REPRESENTATIVES JOLIVETTE-COUGHLIN-GRENDELL-PRINGLE         8            


_________________________________________________________________   9            

                          A   B I L L                                           

             To amend section 145.301 of the Revised Code to       11           

                change the method of computing the cost of         12           

                purchasing military service credit for eligible                 

                members of the Public Employees Retirement         13           

                System.                                                         




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        14           

      Section 1.  That section 145.301 of the Revised Code be      16           

amended to read as follows:                                        17           

      Sec. 145.301.  (A) AS USED IN THIS SECTION, "OHIO SERVICE"   26           

MEANS SERVICE RENDERED TO THE STATE OR ANY OF ITS POLITICAL        27           

SUBDIVISIONS OR TO A PUBLIC EMPLOYER.                              28           

      (A)  A member may purchase service credit that shall be      31           

considered as the equivalent of Ohio service for each year of      32           

service incurred by reason of having been on active duty as a      33           

member of the armed forces of the United States, as defined in     34           

section 145.30 of the Revised Code.  The credit may be purchased   35           

at any time prior to receipt of a retirement allowance.  The                    

number of years purchased shall not exceed five.  The member may   37           

choose to purchase only part of such credit in any one payment,    38           

subject to PUBLIC EMPLOYEES RETIREMENT board rules.                39           

      (B)  For the purposes of this division, "prisoner of war"    41           

means any regularly appointed, enrolled, enlisted, or inducted     42           

member of the armed forces of the United States who was captured,  43           

separated, and incarcerated by an enemy of the United States.      44           

      A member may purchase service credit that shall be           46           

considered as the equivalent of Ohio service for each year of      47           

                                                          2      


                                                                 
service such member was a prisoner of war.  The number of years    48           

purchased under this division shall not exceed five.  Service      49           

credit may be purchased under this division for the same years of  50           

service used to purchase service credit under division (A) of      51           

this section.  The member may choose to purchase only part of      52           

such credit in any one payment, subject to board rules.            53           

      (C)  The total number of years purchased under this section  55           

shall not exceed the member's total accumulated number of years    56           

of Ohio service.                                                   57           

      (D)  For each year of service purchased under division (A)   59           

or (B) of this section, the member shall pay to the public         60           

employees retirement system for credit to the member's             61           

accumulated account an amount determined by the member rate of     63           

contribution in effect at the time the military OHIO service       64           

began, multiplied by the member's salary, earnable salary, or      65           

compensation for full-time employment during the first year of     66           

service covered by a state retirement system or the Cincinnati     67           

retirement system following termination of military service.  If,  68           

however, a limit on maximum salary or maximum contribution was in  69           

effect at the time the military OHIO service began, the limit      71           

shall be applied to the salary, earnable salary, or compensation   72           

received during the first year of service covered by a state       74           

retirement system or the Cincinnati retirement system to           75           

calculate the amount of payment.  To this amount shall be added    76           

an amount equal to compound interest at a rate established by the  77           

public employees retirement board from the date active military    78           

service terminated COVERED BY A STATE RETIREMENT SYSTEM OR THE     79           

CINCINNATI RETIREMENT SYSTEM BEGAN to THE date of payment.         80           

      (E)  A member is ineligible to purchase service credit       82           

under this section for any year of military service that was:      83           

      (1)  Used in the calculation of any retirement benefit       86           

currently being paid to the member or payable in the future under  87           

any other retirement program, except social security, or for       88           

retired pay for nonregular service under Chapter 1223 of Section   89           

                                                          3      


                                                                 
1662 of Title XVI of the "National Defense Authorization Act for   91           

Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to     92           

12739;                                                                          

      (2)  Used to obtain service credit pursuant to section       93           

145.30 or 145.302 of the Revised Code.                             94           

      At the time the credit is purchased, the member shall        97           

certify on a form furnished by the retirement board that the       98           

member does and will conform to this requirement.                  99           

      (F)  Credit purchased under this section may be combined     101          

pursuant to section 145.37 with credit for military service        102          

purchased under sections 3307.021 and 3309.021, except that not    103          

more than an aggregate total of five years of credit purchased     104          

under division (A) of this section, division (A) of section        105          

3307.021, and division (A) of section 3309.021, and not more than  106          

an aggregate total of five years of credit purchased under         107          

division (B) of this section, division (B) of section 3307.021,    108          

and division (B) of section 3309.021 shall be used in determining  109          

retirement eligibility or calculating benefits under section       110          

145.37 of the Revised Code.                                        111          

      Section 2.  That existing section 145.301 of the Revised     113          

Code is hereby repealed.                                           114