As Reported by the Senate Ways and Means 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-TIBERI-MOTTLEY-KRUPINSKI-SULLIVAN-D. MILLER- 10
HARTNETT-JONES-FORD-CORBIN-O'BRIEN-LOGAN-ALLEN-VERICH-DISTEL- 11
ROMAN-GARDNER-HAINES-METZGER-PERZ-YOUNG-SENATOR DRAKE 12
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A B I L L
To amend section 145.301 and to enact sections 16
145.564 and 3309.663 of the Revised Code to 17
change the method of computing the cost of 18
purchasing military service credit for eligible
members of the Public Employees Retirement System 19
(PERS) and to permit PERS and School Employees 21
Retirement System retirants to authorize dues
checkoffs on behalf of certain organizations 22
composed of retired public employees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 145.301 be amended and sections 26
145.564 and 3309.663 of the Revised Code be enacted to read as 27
follows: 28
Sec. 145.301. (A) A member may purchase service credit 38
that shall be considered as the equivalent of Ohio service for 39
each year of service incurred by reason of having been on active 40
duty as a member of the armed forces of the United States, as 41
defined in section 145.30 of the Revised Code. The credit may be 42
purchased at any time prior to receipt of a retirement allowance. 43
The number of years purchased shall not exceed five. The member 45
may choose to purchase only part of such credit in any one 46
payment, subject to PUBLIC EMPLOYEES RETIREMENT board rules. 47
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(B) For the purposes of this division, "prisoner of war" 49
means any regularly appointed, enrolled, enlisted, or inducted 50
member of the armed forces of the United States who was captured, 51
separated, and incarcerated by an enemy of the United States. 52
A member may purchase service credit that shall be 54
considered as the equivalent of Ohio service for each year of 55
service such member was a prisoner of war. The number of years 56
purchased under this division shall not exceed five. Service 57
credit may be purchased under this division for the same years of 58
service used to purchase service credit under division (A) of 59
this section. The member may choose to purchase only part of 60
such credit in any one payment, subject to board rules. 61
(C) The total number of years purchased under this section 63
shall not exceed the member's total accumulated number of years 64
of Ohio service. 65
(D) For each year of service purchased under division (A) 67
or (B) of this section, the member shall pay to the public 68
employees retirement system for credit to the member's 69
accumulated account an amount determined by the member rate of 71
contribution in effect at the time the military service began, 72
multiplied by the member's salary, earnable salary, or 73
compensation for full-time employment during the first year of 74
service covered by a state retirement system or the Cincinnati 75
retirement system following termination of military service. If, 76
however, a limit on maximum salary or maximum contribution was in 77
effect at the time the military service began, the limit shall be 79
applied to the salary, earnable salary, or compensation received 81
during the first year of service covered by a state retirement 82
system or the Cincinnati retirement system to calculate the 83
amount of payment. To this amount shall be added an amount equal 84
to compound interest at a rate established by the public 85
employees retirement board from the date active military service 86
terminated to date of payment SPECIFIED BY THE RETIREMENT BOARD 87
THAT SHALL BE NOT LESS THAN FIFTY PER CENT OF THE ADDITIONAL 88
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LIABILITY RESULTING FROM THE PURCHASE OF THAT YEAR OF SERVICE AS 89
DETERMINED BY AN ACTUARY EMPLOYED BY THE BOARD. 90
(E) A member is ineligible to purchase service credit 92
under this section for any year of military service that was: 93
(1) Used in the calculation of any retirement benefit 96
currently being paid to the member or payable in the future under 97
any other retirement program, except social security, or for 98
retired pay for nonregular service under Chapter 1223 of Section 99
1662 of Title XVI of the "National Defense Authorization Act for 101
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 102
12739;
(2) Used to obtain service credit pursuant to section 103
145.30 or 145.302 of the Revised Code. 104
At the time the credit is purchased, the member shall 107
certify on a form furnished by the retirement board that the 108
member does and will conform to this requirement. 109
(F) A MEMBER WHO, ON THE EFFECTIVE DATE OF THIS AMENDMENT, 113
IS PURCHASING SERVICE CREDIT UNDER THIS SECTION BY MAKING 114
INSTALLMENT PAYMENTS TO THE SYSTEM OR BY A PAYROLL DEDUCTION PLAN 115
AUTHORIZED UNDER SECTION 145.294 OF THE REVISED CODE MAY ELECT, 116
ON A FORM PROVIDED BY THE BOARD, TO HAVE A PORTION OF THE COST OF
THE SERVICE CREDIT RECALCULATED UNDER DIVISION (D) OF THIS 117
SECTION AS AMENDED BY HOUSE BILL 186 OF THE 123rd GENERAL 118
ASSEMBLY. THE RECALCULATION SHALL APPLY ONLY TO THE AMOUNT STILL 119
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED WITH THE 121
BOARD.
FOR EACH MEMBER WHO MAKES AN ELECTION, THE BOARD SHALL DO 123
ALL OF THE FOLLOWING: 124
(1) DETERMINE THE AMOUNT OF THE TOTAL COST OF THE SERVICE 126
CREDIT STILL OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS 127
FILED WITH THE BOARD AND THE NUMBER OF YEARS OR PORTION OF A YEAR 128
OF SERVICE CREDIT ATTRIBUTABLE TO THAT AMOUNT; 129
(2) RECALCULATE UNDER DIVISION (D) OF THIS SECTION THE 131
COST OF THE SERVICE CREDIT DESCRIBED IN DIVISION (F)(1) OF THIS 132
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SECTION;
(3) NOTIFY THE MEMBER OF THE RECALCULATED AMOUNT. 134
IF THE RECALCULATED AMOUNT IS LESS THAN THE AMOUNT STILL 136
OWED BY THE MEMBER AS OF THE DATE THE ELECTION IS FILED, THE 137
RECALCULATED AMOUNT SHALL BE THE AMOUNT OWED BY THE MEMBER. 138
(G) Credit purchased under this section may be combined 141
pursuant to section 145.37 with credit for military service 142
purchased under sections 3307.021 and 3309.021, except that not 143
more than an aggregate total of five years of credit purchased 144
under division (A) of this section, division (A) of section 145
3307.021, and division (A) of section 3309.021, and not more than 146
an aggregate total of five years of credit purchased under 147
division (B) of this section, division (B) of section 3307.021, 148
and division (B) of section 3309.021 shall be used in determining 149
retirement eligibility or calculating benefits under section 150
145.37 of the Revised Code. 151
Sec. 145.564. ANY PERSON RECEIVING FROM THE PUBLIC 153
EMPLOYEES RETIREMENT SYSTEM AN ALLOWANCE, ANNUITY, PENSION, OR 154
BENEFIT MAY AUTHORIZE THE SYSTEM TO MAKE DEDUCTIONS THEREFROM FOR 155
THE PAYMENT OF DUES AND OTHER MEMBERSHIP FEES TO ANY RETIREMENT 156
ASSOCIATION OR OTHER ORGANIZATION COMPOSED PRIMARILY OF RETIRED
PUBLIC EMPLOYEES OR RETIRED PUBLIC EMPLOYEES AND THEIR SPOUSES IF 157
THE ASSOCIATION OR ORGANIZATION ADOPTS A RESOLUTION APPROVING 158
PAYMENT BY THAT METHOD AND NOT FEWER THAN FIVE HUNDRED PERSONS 160
RECEIVING ALLOWANCES, ANNUITIES, PENSIONS, OR BENEFITS FROM THE 161
SYSTEM INITIALLY AUTHORIZE THE DEDUCTION FOR PAYMENT TO THE SAME 162
ASSOCIATION OR ORGANIZATION. THE AUTHORIZATION SHALL BE IN 163
WRITING AND SIGNED BY THE PERSON GIVING IT. THE SYSTEM SHALL 164
MAKE THE DEDUCTIONS AUTHORIZED AND PAY TO THE ASSOCIATION OR 165
ORGANIZATION THE AMOUNTS DEDUCTED, UNTIL THE AUTHORIZATION IS 166
REVOKED IN WRITING BY THE PERSON. THE SYSTEM MAY CHARGE THE 167
ASSOCIATION OR ORGANIZATION AN AMOUNT NOT EXCEEDING THE ACTUAL 168
COSTS INCURRED BY THE SYSTEM IN MAKING THE DEDUCTIONS. THE 169
SYSTEM SHALL ADOPT RULES ESTABLISHING THE METHOD OF COLLECTING 170
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THE AMOUNT CHARGED, IF ANY. 171
Sec. 3309.663. ANY PERSON RECEIVING FROM THE SCHOOL 173
EMPLOYEES RETIREMENT SYSTEM AN ALLOWANCE, ANNUITY, PENSION, OR 174
BENEFIT MAY AUTHORIZE THE SYSTEM TO MAKE DEDUCTIONS THEREFROM FOR 175
THE PAYMENT OF DUES AND OTHER MEMBERSHIP FEES TO ANY RETIREMENT 176
ASSOCIATION OR OTHER ORGANIZATION COMPOSED PRIMARILY OF RETIRED
PUBLIC EMPLOYEES OR RETIRED PUBLIC EMPLOYEES AND THEIR SPOUSES IF 177
THE ASSOCIATION OR ORGANIZATION ADOPTS A RESOLUTION APPROVING 178
PAYMENT BY THAT METHOD AND NOT FEWER THAN FIVE HUNDRED PERSONS 180
RECEIVING ALLOWANCES, ANNUITIES, PENSIONS, OR BENEFITS FROM THE 181
SYSTEM INITIALLY AUTHORIZE THE DEDUCTION FOR PAYMENT TO THE SAME 182
ASSOCIATION OR ORGANIZATION. THE AUTHORIZATION SHALL BE IN 183
WRITING AND SIGNED BY THE PERSON GIVING IT. THE SYSTEM SHALL 184
MAKE THE DEDUCTIONS AUTHORIZED AND PAY TO THE ASSOCIATION OR 185
ORGANIZATION THE AMOUNTS DEDUCTED, UNTIL THE AUTHORIZATION IS 186
REVOKED IN WRITING BY THE PERSON. THE SYSTEM MAY CHARGE THE 187
ASSOCIATION OR ORGANIZATION AN AMOUNT NOT EXCEEDING THE ACTUAL 188
COSTS INCURRED BY THE SYSTEM IN MAKING THE DEDUCTIONS. THE 189
SYSTEM SHALL ADOPT RULES ESTABLISHING THE METHOD OF COLLECTING 190
THE AMOUNT CHARGED, IF ANY. 191
Section 2. That existing section 145.301 of the Revised 193
Code is hereby repealed. 194
Section 3. Section 145.564 of the Revised Code shall take 196
effect one year after the effective date of this act. 197