As Passed by the House 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-TIBERI-MOTTLEY-KRUPINSKI-SULLIVAN-D. MILLER- 10
HARTNETT-JONES-FORD-CORBIN-O'BRIEN-LOGAN-ALLEN-VERICH-DISTEL- 11
ROMAN-GARNDER-HAINES-METZGER-PERZ-YOUNG 12
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A B I L L
To amend section 145.301 of the Revised Code to 15
change the method of computing the cost of 16
purchasing military service credit for eligible
members of the Public Employees Retirement 17
System.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That section 145.301 of the Revised Code be 20
amended to read as follows: 21
Sec. 145.301. (A) A member may purchase service credit 31
that shall be considered as the equivalent of Ohio service for 32
each year of service incurred by reason of having been on active 33
duty as a member of the armed forces of the United States, as 34
defined in section 145.30 of the Revised Code. The credit may be 35
purchased at any time prior to receipt of a retirement allowance. 36
The number of years purchased shall not exceed five. The member 38
may choose to purchase only part of such credit in any one 39
payment, subject to PUBLIC EMPLOYEES RETIREMENT board rules. 40
(B) For the purposes of this division, "prisoner of war" 42
means any regularly appointed, enrolled, enlisted, or inducted 43
member of the armed forces of the United States who was captured, 44
separated, and incarcerated by an enemy of the United States. 45
A member may purchase service credit that shall be 47
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considered as the equivalent of Ohio service for each year of 48
service such member was a prisoner of war. The number of years 49
purchased under this division shall not exceed five. Service 50
credit may be purchased under this division for the same years of 51
service used to purchase service credit under division (A) of 52
this section. The member may choose to purchase only part of 53
such credit in any one payment, subject to board rules. 54
(C) The total number of years purchased under this section 56
shall not exceed the member's total accumulated number of years 57
of Ohio service. 58
(D) For each year of service purchased under division (A) 60
or (B) of this section, the member shall pay to the public 61
employees retirement system for credit to the member's 62
accumulated account an amount determined by the member rate of 64
contribution in effect at the time the military service began, 65
multiplied by the member's salary, earnable salary, or 66
compensation for full-time employment during the first year of 67
service covered by a state retirement system or the Cincinnati 68
retirement system following termination of military service. If, 69
however, a limit on maximum salary or maximum contribution was in 70
effect at the time the military service began, the limit shall be 72
applied to the salary, earnable salary, or compensation received 74
during the first year of service covered by a state retirement 75
system or the Cincinnati retirement system to calculate the 76
amount of payment. To this amount shall be added an amount equal 77
to compound interest at a rate established by the public 78
employees retirement board from the date active military service 79
terminated to date of payment SPECIFIED BY THE RETIREMENT BOARD 80
THAT SHALL BE NOT LESS THAN FIFTY PER CENT OF THE ADDITIONAL 81
LIABILITY RESULTING FROM THE PURCHASE OF THAT YEAR OF SERVICE AS 82
DETERMINED BY AN ACTUARY EMPLOYED BY THE BOARD. 83
(E) A member is ineligible to purchase service credit 85
under this section for any year of military service that was: 86
(1) Used in the calculation of any retirement benefit 89
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currently being paid to the member or payable in the future under 90
any other retirement program, except social security, or for 91
retired pay for nonregular service under Chapter 1223 of Section 92
1662 of Title XVI of the "National Defense Authorization Act for 94
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 95
12739;
(2) Used to obtain service credit pursuant to section 96
145.30 or 145.302 of the Revised Code. 97
At the time the credit is purchased, the member shall 100
certify on a form furnished by the retirement board that the 101
member does and will conform to this requirement. 102
(F) A MEMBER WHO, ON THE EFFECTIVE DATE OF THIS AMENDMENT, 106
IS PURCHASING SERVICE CREDIT UNDER THIS SECTION BY MAKING 107
INSTALLMENT PAYMENTS TO THE SYSTEM OR BY A PAYROLL DEDUCTION PLAN 108
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE MAY ELECT, 109
ON A FORM PROVIDED BY THE BOARD, TO HAVE A PORTION OF THE COST OF
THE SERVICE CREDIT RECALCULATED UNDER DIVISION (D) OF THIS 110
SECTION AS AMENDED BY THIS ACT. THE RECALCULATION SHALL APPLY 111
ONLY TO THE AMOUNT STILL OWED BY THE MEMBER AS OF THE DATE THE
ELECTION IS FILED WITH THE BOARD. 112
FOR EACH MEMBER WHO MAKES AN ELECTION, THE BOARD SHALL DO 114
ALL OF THE FOLLOWING: 115
(1) DETERMINE THE AMOUNT OF THE TOTAL COST OF THE SERVICE 117
CREDIT STILL OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS 118
FILED WITH THE BOARD AND THE NUMBER OF YEARS OR PORTION OF A YEAR 119
OF SERVICE CREDIT ATTRIBUTABLE TO THAT AMOUNT; 120
(2) RECALCULATE UNDER DIVISION (D) OF THIS SECTION THE 122
COST OF THE SERVICE CREDIT DESCRIBED IN DIVISION (F)(1) OF THIS 123
SECTION;
(3) NOTIFY THE MEMBER OF THE RECALCULATED AMOUNT. 125
IF THE RECALCULATED AMOUNT IS LESS THAN THE AMOUNT STILL 127
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED, THE 128
RECALCULATED AMOUNT SHALL BE THE AMOUNT OWED BY THE MEMBER. 129
(G) Credit purchased under this section may be combined 132
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pursuant to section 145.37 with credit for military service 133
purchased under sections 3307.021 and 3309.021, except that not 134
more than an aggregate total of five years of credit purchased 135
under division (A) of this section, division (A) of section 136
3307.021, and division (A) of section 3309.021, and not more than 137
an aggregate total of five years of credit purchased under 138
division (B) of this section, division (B) of section 3307.021, 139
and division (B) of section 3309.021 shall be used in determining 140
retirement eligibility or calculating benefits under section 141
145.37 of the Revised Code. 142
Section 2. That existing section 145.301 of the Revised 144
Code is hereby repealed. 145