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 timethe militaryOHIO 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 timethe militaryOHIO 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 77public employees retirementboard from the dateactive military78 serviceterminatedCOVERED 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