As Passed by the Senate 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-GARDNER-HAINES-METZGER-PERZ-YOUNG-SENATORS DRAKE- 12
MUMPER-JOHNSON-LATTA-NEIN-OELSLAGER-SPADA-WATTS 13
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A B I L L
To amend section 145.301 and to enact sections 17
145.564 and 3309.663 of the Revised Code to 18
change the method of computing the cost of 19
purchasing military service credit for eligible
members of the Public Employees Retirement System 20
(PERS) and to permit PERS and School Employees 22
Retirement System retirants to authorize dues
checkoffs on behalf of certain organizations 23
composed of retired public employees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 25
Section 1. That section 145.301 be amended and sections 27
145.564 and 3309.663 of the Revised Code be enacted to read as 28
follows: 29
Sec. 145.301. (A) A member may purchase service credit 39
that shall be considered as the equivalent of Ohio service for 40
each year of service incurred by reason of having been on active 41
duty as a member of the armed forces of the United States, as 42
defined in section 145.30 of the Revised Code. The credit may be 43
purchased at any time prior to receipt of a retirement allowance. 44
The number of years purchased shall not exceed five. The member 46
may choose to purchase only part of such credit in any one 47
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payment, subject to PUBLIC EMPLOYEES RETIREMENT board rules. 48
(B) For the purposes of this division, "prisoner of war" 50
means any regularly appointed, enrolled, enlisted, or inducted 51
member of the armed forces of the United States who was captured, 52
separated, and incarcerated by an enemy of the United States. 53
A member may purchase service credit that shall be 55
considered as the equivalent of Ohio service for each year of 56
service such member was a prisoner of war. The number of years 57
purchased under this division shall not exceed five. Service 58
credit may be purchased under this division for the same years of 59
service used to purchase service credit under division (A) of 60
this section. The member may choose to purchase only part of 61
such credit in any one payment, subject to board rules. 62
(C) The total number of years purchased under this section 64
shall not exceed the member's total accumulated number of years 65
of Ohio service. 66
(D) For each year of service purchased under division (A) 68
or (B) of this section, the member shall pay to the public 69
employees retirement system for credit to the member's 70
accumulated account an amount determined by the member rate of 72
contribution in effect at the time the military service began, 73
multiplied by the member's salary, earnable salary, or 74
compensation for full-time employment during the first year of 75
service covered by a state retirement system or the Cincinnati 76
retirement system following termination of military service. If, 77
however, a limit on maximum salary or maximum contribution was in 78
effect at the time the military service began, the limit shall be 80
applied to the salary, earnable salary, or compensation received 82
during the first year of service covered by a state retirement 83
system or the Cincinnati retirement system to calculate the 84
amount of payment. To this amount shall be added an amount equal 85
to compound interest at a rate established by the public 86
employees retirement board from the date active military service 87
terminated to date of payment SPECIFIED BY THE RETIREMENT BOARD 88
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THAT SHALL BE NOT LESS THAN FIFTY PER CENT OF THE ADDITIONAL 89
LIABILITY RESULTING FROM THE PURCHASE OF THAT YEAR OF SERVICE AS 90
DETERMINED BY AN ACTUARY EMPLOYED BY THE BOARD. 91
(E) A member is ineligible to purchase service credit 93
under this section for any year of military service that was: 94
(1) Used in the calculation of any retirement benefit 97
currently being paid to the member or payable in the future under 98
any other retirement program, except social security, or for 99
retired pay for nonregular service under Chapter 1223 of Section 100
1662 of Title XVI of the "National Defense Authorization Act for 102
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 103
12739;
(2) Used to obtain service credit pursuant to section 104
145.30 or 145.302 of the Revised Code. 105
At the time the credit is purchased, the member shall 108
certify on a form furnished by the retirement board that the 109
member does and will conform to this requirement. 110
(F) A MEMBER WHO, ON THE EFFECTIVE DATE OF THIS AMENDMENT, 114
IS PURCHASING SERVICE CREDIT UNDER THIS SECTION BY MAKING 115
INSTALLMENT PAYMENTS TO THE SYSTEM OR BY A PAYROLL DEDUCTION PLAN 116
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE MAY ELECT, 117
ON A FORM PROVIDED BY THE BOARD, TO HAVE A PORTION OF THE COST OF
THE SERVICE CREDIT RECALCULATED UNDER DIVISION (D) OF THIS 118
SECTION AS AMENDED BY HOUSE BILL 186 OF THE 123rd GENERAL 119
ASSEMBLY. THE RECALCULATION SHALL APPLY ONLY TO THE AMOUNT STILL 120
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED WITH THE 122
BOARD.
FOR EACH MEMBER WHO MAKES AN ELECTION, THE BOARD SHALL DO 124
ALL OF THE FOLLOWING: 125
(1) DETERMINE THE AMOUNT OF THE TOTAL COST OF THE SERVICE 127
CREDIT STILL OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS 128
FILED WITH THE BOARD AND THE NUMBER OF YEARS OR PORTION OF A YEAR 129
OF SERVICE CREDIT ATTRIBUTABLE TO THAT AMOUNT; 130
(2) RECALCULATE UNDER DIVISION (D) OF THIS SECTION THE 132
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COST OF THE SERVICE CREDIT DESCRIBED IN DIVISION (F)(1) OF THIS 133
SECTION;
(3) NOTIFY THE MEMBER OF THE RECALCULATED AMOUNT. 135
IF THE RECALCULATED AMOUNT IS LESS THAN THE AMOUNT STILL 137
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED, THE 138
RECALCULATED AMOUNT SHALL BE THE AMOUNT OWED BY THE MEMBER. 139
(G) Credit purchased under this section may be combined 142
pursuant to section 145.37 with credit for military service 143
purchased under sections 3307.021 and 3309.021, except that not 144
more than an aggregate total of five years of credit purchased 145
under division (A) of this section, division (A) of section 146
3307.021, and division (A) of section 3309.021, and not more than 147
an aggregate total of five years of credit purchased under 148
division (B) of this section, division (B) of section 3307.021, 149
and division (B) of section 3309.021 shall be used in determining 150
retirement eligibility or calculating benefits under section 151
145.37 of the Revised Code. 152
Sec. 145.564. ANY PERSON RECEIVING FROM THE PUBLIC 154
EMPLOYEES RETIREMENT SYSTEM AN ALLOWANCE, ANNUITY, PENSION, OR 155
BENEFIT MAY AUTHORIZE THE SYSTEM TO MAKE DEDUCTIONS THEREFROM FOR 156
THE PAYMENT OF DUES AND OTHER MEMBERSHIP FEES TO ANY RETIREMENT 157
ASSOCIATION OR OTHER ORGANIZATION COMPOSED PRIMARILY OF RETIRED
PUBLIC EMPLOYEES OR RETIRED PUBLIC EMPLOYEES AND THEIR SPOUSES IF 158
THE ASSOCIATION OR ORGANIZATION ADOPTS A RESOLUTION APPROVING 159
PAYMENT BY THAT METHOD AND NOT FEWER THAN FIVE HUNDRED PERSONS 161
RECEIVING ALLOWANCES, ANNUITIES, PENSIONS, OR BENEFITS FROM THE 162
SYSTEM INITIALLY AUTHORIZE THE DEDUCTION FOR PAYMENT TO THE SAME 163
ASSOCIATION OR ORGANIZATION. THE AUTHORIZATION SHALL BE IN 164
WRITING AND SIGNED BY THE PERSON GIVING IT. THE SYSTEM SHALL 165
MAKE THE DEDUCTIONS AUTHORIZED AND PAY TO THE ASSOCIATION OR 166
ORGANIZATION THE AMOUNTS DEDUCTED, UNTIL THE AUTHORIZATION IS 167
REVOKED IN WRITING BY THE PERSON. THE SYSTEM MAY CHARGE THE 168
ASSOCIATION OR ORGANIZATION AN AMOUNT NOT EXCEEDING THE ACTUAL 169
COSTS INCURRED BY THE SYSTEM IN MAKING THE DEDUCTIONS. THE 170
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SYSTEM SHALL ADOPT RULES ESTABLISHING THE METHOD OF COLLECTING 171
THE AMOUNT CHARGED, IF ANY. 172
Sec. 3309.663. ANY PERSON RECEIVING FROM THE SCHOOL 174
EMPLOYEES RETIREMENT SYSTEM AN ALLOWANCE, ANNUITY, PENSION, OR 175
BENEFIT MAY AUTHORIZE THE SYSTEM TO MAKE DEDUCTIONS THEREFROM FOR 176
THE PAYMENT OF DUES AND OTHER MEMBERSHIP FEES TO ANY RETIREMENT 177
ASSOCIATION OR OTHER ORGANIZATION COMPOSED PRIMARILY OF RETIRED
PUBLIC EMPLOYEES OR RETIRED PUBLIC EMPLOYEES AND THEIR SPOUSES IF 178
THE ASSOCIATION OR ORGANIZATION ADOPTS A RESOLUTION APPROVING 179
PAYMENT BY THAT METHOD AND NOT FEWER THAN FIVE HUNDRED PERSONS 181
RECEIVING ALLOWANCES, ANNUITIES, PENSIONS, OR BENEFITS FROM THE 182
SYSTEM INITIALLY AUTHORIZE THE DEDUCTION FOR PAYMENT TO THE SAME 183
ASSOCIATION OR ORGANIZATION. THE AUTHORIZATION SHALL BE IN 184
WRITING AND SIGNED BY THE PERSON GIVING IT. THE SYSTEM SHALL 185
MAKE THE DEDUCTIONS AUTHORIZED AND PAY TO THE ASSOCIATION OR 186
ORGANIZATION THE AMOUNTS DEDUCTED, UNTIL THE AUTHORIZATION IS 187
REVOKED IN WRITING BY THE PERSON. THE SYSTEM MAY CHARGE THE 188
ASSOCIATION OR ORGANIZATION AN AMOUNT NOT EXCEEDING THE ACTUAL 189
COSTS INCURRED BY THE SYSTEM IN MAKING THE DEDUCTIONS. THE 190
SYSTEM SHALL ADOPT RULES ESTABLISHING THE METHOD OF COLLECTING 191
THE AMOUNT CHARGED, IF ANY. 192
Section 2. That existing section 145.301 of the Revised 194
Code is hereby repealed. 195
Section 3. Section 145.564 of the Revised Code shall take 197
effect one year after the effective date of this act. 198