As Reported by House Health, Retirement and Aging Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 186 5
1999-2000 6
REPRESENTATIVES JOLIVETTE-COUGHLIN-GRENDELL-PRINGLE- 8
TERWILLEGER-OGG-VESPER-WILLAMOWSKI-OLMAN-BARNES-DePIERO- 9
HOLLISTER 10
_________________________________________________________________ 11
A B I L L
To amend section 145.301 of the Revised Code to 13
change the method of computing the cost of 14
purchasing military service credit for eligible
members of the Public Employees Retirement 15
System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 16
Section 1. That section 145.301 of the Revised Code be 18
amended to read as follows: 19
Sec. 145.301. (A) A member may purchase service credit 29
that shall be considered as the equivalent of Ohio service for 30
each year of service incurred by reason of having been on active 31
duty as a member of the armed forces of the United States, as 32
defined in section 145.30 of the Revised Code. The credit may be 33
purchased at any time prior to receipt of a retirement allowance. 34
The number of years purchased shall not exceed five. The member 36
may choose to purchase only part of such credit in any one 37
payment, subject to PUBLIC EMPLOYEES RETIREMENT board rules. 38
(B) For the purposes of this division, "prisoner of war" 40
means any regularly appointed, enrolled, enlisted, or inducted 41
member of the armed forces of the United States who was captured, 42
separated, and incarcerated by an enemy of the United States. 43
A member may purchase service credit that shall be 45
considered as the equivalent of Ohio service for each year of 46
service such member was a prisoner of war. The number of years 47
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purchased under this division shall not exceed five. Service 48
credit may be purchased under this division for the same years of 49
service used to purchase service credit under division (A) of 50
this section. The member may choose to purchase only part of 51
such credit in any one payment, subject to board rules. 52
(C) The total number of years purchased under this section 54
shall not exceed the member's total accumulated number of years 55
of Ohio service. 56
(D) For each year of service purchased under division (A) 58
or (B) of this section, the member shall pay to the public 59
employees retirement system for credit to the member's 60
accumulated account an amount determined by the member rate of 62
contribution in effect at the time the military service began, 63
multiplied by the member's salary, earnable salary, or 64
compensation for full-time employment during the first year of 65
service covered by a state retirement system or the Cincinnati 66
retirement system following termination of military service. If, 67
however, a limit on maximum salary or maximum contribution was in 68
effect at the time the military service began, the limit shall be 70
applied to the salary, earnable salary, or compensation received 72
during the first year of service covered by a state retirement 73
system or the Cincinnati retirement system to calculate the 74
amount of payment. To this amount shall be added an amount equal 75
to compound interest at a rate established by the public 76
employees retirement board from the date active military service 77
terminated to date of payment SPECIFIED BY THE RETIREMENT BOARD 78
THAT SHALL BE NOT LESS THAN FIFTY PER CENT OF THE ADDITIONAL 79
LIABILITY RESULTING FROM THE PURCHASE OF THAT YEAR OF SERVICE AS 80
DETERMINED BY AN ACTUARY EMPLOYED BY THE BOARD. 81
(E) A member is ineligible to purchase service credit 83
under this section for any year of military service that was: 84
(1) Used in the calculation of any retirement benefit 87
currently being paid to the member or payable in the future under 88
any other retirement program, except social security, or for 89
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retired pay for nonregular service under Chapter 1223 of Section 90
1662 of Title XVI of the "National Defense Authorization Act for 92
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 93
12739;
(2) Used to obtain service credit pursuant to section 94
145.30 or 145.302 of the Revised Code. 95
At the time the credit is purchased, the member shall 98
certify on a form furnished by the retirement board that the 99
member does and will conform to this requirement. 100
(F) A MEMBER WHO, ON THE EFFECTIVE DATE OF THIS AMENDMENT, 104
IS PURCHASING SERVICE CREDIT UNDER THIS SECTION BY MAKING 105
INSTALLMENT PAYMENTS TO THE SYSTEM OR BY A PAYROLL DEDUCTION PLAN 106
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE MAY ELECT, 107
ON A FORM PROVIDED BY THE BOARD, TO HAVE A PORTION OF THE COST OF
THE SERVICE CREDIT RECALCULATED UNDER DIVISION (D) OF THIS 108
SECTION AS AMENDED BY THIS ACT. THE RECALCULATION SHALL APPLY 109
ONLY TO THE AMOUNT STILL OWED BY THE MEMBER AS OF THE DATE THE
ELECTION IS FILED WITH THE BOARD. 110
FOR EACH MEMBER WHO MAKES AN ELECTION, THE BOARD SHALL DO 112
ALL OF THE FOLLOWING: 113
(1) DETERMINE THE AMOUNT OF THE TOTAL COST OF THE SERVICE 115
CREDIT STILL OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS 116
FILED WITH THE BOARD AND THE NUMBER OF YEARS OR PORTION OF A YEAR 117
OF SERVICE CREDIT ATTRIBUTABLE TO THAT AMOUNT; 118
(2) RECALCULATE UNDER DIVISION (D) OF THIS SECTION THE 120
COST OF THE SERVICE CREDIT DESCRIBED IN DIVISION (F)(1) OF THIS 121
SECTION;
(3) NOTIFY THE MEMBER OF THE RECALCULATED AMOUNT. 123
IF THE RECALCULATED AMOUNT IS LESS THAN THE AMOUNT STILL 125
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED, THE 126
RECALCULATED AMOUNT SHALL BE THE AMOUNT OWED BY THE MEMBER. 127
(G) Credit purchased under this section may be combined 130
pursuant to section 145.37 with credit for military service 131
purchased under sections 3307.021 and 3309.021, except that not 132
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more than an aggregate total of five years of credit purchased 133
under division (A) of this section, division (A) of section 134
3307.021, and division (A) of section 3309.021, and not more than 135
an aggregate total of five years of credit purchased under 136
division (B) of this section, division (B) of section 3307.021, 137
and division (B) of section 3309.021 shall be used in determining 138
retirement eligibility or calculating benefits under section 139
145.37 of the Revised Code. 140
Section 2. That existing section 145.301 of the Revised 142
Code is hereby repealed. 143