As Reported by House Health, Retirement, & Aging Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 275 5
1999-2000 6
REPRESENTATIVES VESPER-SULZER-WINKLER-BOYD-MAIER-JERSE- 8
HARTNETT-METELSKY-WILLAMOWSKI-BARRETT-O'BRIEN-CLANCY- 10
D. MILLER-PATTON-PADGETT-BEATTY-SCHULER-DePIERO-YOUNG-
KRUPINSKI-HOUSEHOLDER-CALLENDER-BENDER-PRINGLE-TERWILLEGER- 11
OGG-SCHURING-FLANNERY-JOLIVETTE-ROMAN-ALLEN-FERDERBER-SULLIVAN- 12
EVANS-OPFER-VERICH-FORD-TAYLOR-PATTON-BRADING-BARNES-SMITH- 14
VAN VYVEN-GRENDELL-ASLANIDES-OLMAN
_________________________________________________________________ 15
A B I L L
To amend sections 742.37, 742.3711, 742.3715, 17
742.3717, and 742.3718 of the Revised Code to 20
increase benefits paid to certain surviving
spouses of members of the Ohio Police and Fire 22
Pension Fund (OPFPF) and to eliminate the 23
eligibility limits for cost-of-living allowances 24
that apply to certain OPFPF members. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That sections 742.37, 742.3711, 742.3715, 29
742.3717, and 742.3718 of the Revised Code be amended to read as 32
follows:
Sec. 742.37. The board of trustees of the Ohio police and 41
fire pension fund shall adopt rules for the management of the 44
fund and for the disbursement of benefits and pensions as set 45
forth in this section and section 742.39 of the Revised Code. 46
Any payment of a benefit or pension under this section is subject 48
to the provisions of section 742.461 of the Revised Code. 49
Notwithstanding any other provision of this section, no pension 50
or benefit paid or determined under division (B) or (C) of this 51
section or section 742.39 of the Revised Code shall exceed the 53
2
limit established by section 415 of the "Internal Revenue Code of 54
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.
(A) Persons who were receiving benefit or pension payments 56
from a police relief and pension fund established under former 57
section 741.32 of the Revised Code, or from a firemen's relief 58
and pension fund established under former section 521.02 or 60
741.02 of the Revised Code, at the time the assets of the fund 62
were transferred to the Ohio police and fire pension fund, known 63
at that time as the police and firemen's disability and pension 65
fund, shall receive benefit and pension payments from the Ohio 66
police and fire pension fund in the same amount and subject to 69
the same conditions as such payments were being made from the 71
former fund on the date of the transfer. 72
(B) A member of the fund who, pursuant to law, elected to 74
receive benefits and pensions from a police relief and pension 75
fund established under former section 741.32 of the Revised Code, 77
or from a firemen's relief and pension fund established under 79
former section 741.02 of the Revised Code, in accordance with the 80
rules of the fund governing the granting of benefits or pensions 82
therefrom in force on April 1, 1947, shall receive benefits and 83
pensions from the Ohio police and fire pension fund in accordance 85
with such rules; provided, that any member of the fund who is not 86
receiving a benefit or pension from the fund on August 12, 1975, 87
may, upon application for a benefit or pension to be received on 88
or after August 12, 1975, elect to receive a benefit or pension 89
in accordance with division (C) of this section. 90
(C) Members of the fund who have not elected to receive 92
benefits and pensions from a police relief and pension fund or a 93
firemen's relief and pension fund in accordance with the rules of 95
the fund in force on April 1, 1947, shall receive pensions and 97
benefits in accordance with the following provisions:
(1) A member of the fund who has completed twenty-five 99
years of active service in a police or fire department and has 100
attained forty-eight years of age may, at the member's election, 102
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retire from the police or fire department, and upon notifying the 103
board in writing of the election, shall receive an annual 104
pension, payable in twelve monthly installments, in an amount 106
equal to a percentage of the member's average annual salary. The 107
percentage shall be the sum of two and one-half per cent for each 109
of the first twenty years the member was in the active service of 110
the department, plus two per cent for each of the twenty-first to 112
twenty-fifth years the member was in the active service of the 113
department, plus one and one-half per cent for each year in 115
excess of twenty-five years the member was in the active service 116
of the department. The annual pension shall not exceed 117
seventy-two per cent of the member's average annual salary. 118
A member who completed twenty-five years of active service, 121
has resigned or been discharged, and has left the sum deducted 123
from the member's salary on deposit in the pension fund shall, 124
upon attaining forty-eight years of age, be entitled to receive a 126
normal service pension benefit computed and paid under division 127
(C)(1) of this section.
(2) A member of the fund who has served fifteen or more 129
years as an active member of a police or fire department and who 130
voluntarily resigns or is discharged from the department for any 132
reason other than dishonesty, cowardice, intemperate habits, or 133
conviction of a felony, shall receive an annual pension, payable 134
in twelve monthly installments, in an amount equal to one and 135
one-half per cent of the member's average annual salary 136
multiplied by the number of full years the member was in the 138
active service of the department. The pension payments shall not 139
commence until the member has attained the age of forty-eight 141
years and until twenty-five years have elapsed from the date on 142
which the member became a full-time regular police officer or 144
firefighter in the department. 145
(3) A member of the fund who has completed fifteen or more 147
years of active service in a police or fire department and who 148
has attained sixty-two years of age, may retire from the 149
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department and, upon notifying the board in writing of the 150
election to retire, shall receive an annual pension, payable in 151
twelve monthly installments, in an amount equal to a percentage 152
of the member's average annual salary. The percentage shall be 154
the sum of two and one-half per cent for each of the first twenty
years the member was in the active service of the department, 156
plus two per cent for each of the twenty-first to twenty-fifth 158
years the member was in the active service of the department, 160
plus one and one-half per cent for each year in excess of 162
twenty-five years the member was in the active service of the 164
department. The annual pension shall not exceed seventy-two per 166
cent of the member's average annual salary. 167
(4) With the exception of those persons who may make 169
application for benefits as provided in section 742.26 of the 171
Revised Code, no person receiving a pension or other benefit 172
under division (C) of this section on or after July 24, 1986, 173
shall be entitled to apply for any new, changed, or different 174
benefit.
If a member covered by division (C) of this section or 176
section 742.38 of the Revised Code dies prior to the time the 178
member has received a payment and leaves a surviving spouse or 180
dependent child, the surviving spouse or dependent child shall 181
receive a pension under division (D) or (E) of this section. 182
(D)(1) Except as provided in division (D)(2) of this 185
section, a surviving spouse of a deceased member of the fund
shall receive a monthly pension as follows: 187
(a) For the period beginning July 1, 1999, and ending June 191
30, 2000, five hundred fifty dollars; 192
(b) For the period beginning July 1, 2000, and the first 195
day of July of each year thereafter and continuing for the 197
following twelve months, an amount equal to the monthly amount 198
paid during the prior twelve-month period plus an amount 199
determined by multiplying five hundred fifty dollars by the 201
average percentage change in the consumer price index, not 202
5
exceeding three per cent, as determined each year by the board 203
under section 742.3716 of the Revised Code. 205
(2) A surviving spouse of a deceased member of the fund 207
shall receive a monthly pension of four hundred ten dollars if 209
one of the following is the case: 210
(a) At the time of death, the deceased member had been 213
awarded a pension under this chapter based on age and service; 214
(b) The THE surviving spouse is eligible for a benefit 217
under section 742.3714 or division (B) or (D) of section 742.63 218
of the Revised Code. If the surviving spouse ceases to be 219
eligible for a benefit under division (B) or (D) of section 220
742.63 of the Revised Code, the pension shall be increased, 223
effective the first day of the first month following the day on 224
which the surviving spouse ceases to be eligible for the benefit,
to the amount it would be under division (D)(1) of this section 225
had the spouse never been eligible for a benefit under division 227
(B) or (D) of section 742.63 of the Revised Code. 230
(3) A pension paid under this division shall continue 233
during the natural life of the surviving spouse. Benefits to a 235
deceased member's surviving spouse that were terminated under a 237
former version of this section that required termination due to 238
remarriage and were not resumed prior to September 16, 1998, 240
shall resume on the first day of the month immediately following 241
receipt by the board of an application on a form provided by the 242
board.
(E) Each surviving child of a deceased member of the fund 245
shall receive a monthly pension of one hundred fifty dollars 247
until the child attains the age of eighteen years, or marries, 249
whichever event occurs first. A pension under this division, 251
however, shall continue to be payable to a child under age 252
twenty-two who is a student in and attending an institution of 253
learning or training pursuant to a program designed to complete 254
in each school year the equivalent of at least two-thirds of the 255
full-time curriculum requirements of the institution, as 256
6
determined by the board. If any surviving child, regardless of 259
age at the time of the member's death, because of physical or 260
mental disability, is totally dependent upon the deceased member 262
for support at the time of death, the child shall receive a 263
monthly pension under this division during the child's natural 266
life or until the child has recovered from the disability. 267
(F) If a deceased member of the fund leaves no surviving 269
spouse or surviving children, but leaves two parents dependent 270
upon the deceased member for support, each parent shall be paid a 272
monthly pension of one hundred dollars. If there is only one 273
parent dependent upon the member for support, the parent shall be 275
paid a monthly pension of two hundred dollars. The pensions 277
provided for in this division shall be paid during the natural
life of the surviving parents, or until dependency ceases, or 278
until remarriage, whichever event occurs first. 279
(G) Subject to the provisions of section 742.461 of the 281
Revised Code, a member of the fund who voluntarily resigns or is 283
removed from active service in a police or fire department is 284
entitled to receive an amount equal to the sums deducted from the 285
member's salary and credited to the member's account in the fund, 286
except that a member receiving a disability benefit or service 287
pension is not entitled to receive any return of contributions to 288
the fund.
(H) On and after January 1, 1970, all pensions shall be 290
increased in accordance with the following provisions: 291
(1) A member of the fund who retired prior to January 1, 293
1967, has attained age sixty-five on January 1, 1970, and was 294
receiving a pension on December 31, 1969, pursuant to division 295
(B) or (C)(1) of this section or former division (C)(2), (3), 297
(4), or (5) of this section, shall have the pension increased by 298
ten per cent.
(2) The monthly pension payable to eligible surviving 300
spouses under division (D) of this section shall be increased by 301
forty dollars for each surviving spouse receiving a pension on 302
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December 31, 1969. 303
(3) The monthly pension payable to each eligible child 305
under division (E) of this section shall be increased by ten 306
dollars for each child receiving a pension on December 31, 1969. 307
(4) The monthly pension payable to each eligible dependent 309
parent under division (F) of this section shall be increased by 310
thirty dollars for each parent receiving a pension on December 311
31, 1969. 312
(5) A member of the fund, including a survivor of a 314
member, who is receiving a pension in accordance with the rules 315
governing the granting of pensions and benefits in force on April 316
1, 1947, that provide an increase in the original pension from 318
time to time pursuant to changes in the salaries of active 319
members, shall not be eligible for the benefits provided in this 320
division. 321
(I) On and after January 1, 1977, a member of the fund who 323
was receiving a pension or benefit on December 31, 1973, under 324
division (A), (B), (C)(1), or former division (C)(2) or (7) of 326
this section shall have the pension or benefit increased as 327
follows:
(1) If the member's annual pension or benefit is less than 329
two thousand seven hundred dollars, it shall be increased to 331
three thousand dollars. 332
(2) If the member's annual pension or benefit is two 334
thousand seven hundred dollars or more, it shall be increased by 336
three hundred dollars. 337
The following shall not be eligible to receive increased 339
pensions or benefits as provided in this division: 340
(a) A member of the fund who is receiving a pension or 342
benefit in accordance with the rules in force on April 1, 1947, 343
governing the granting of pensions and benefits, which provide an 344
increase in the original pension or benefit from time to time 345
pursuant to changes in the salaries of active members; 346
(b) A member of the fund who is receiving a pension or 348
8
benefit under division (A) or (B) of this section, based on 349
funded volunteer or funded part-time service, or off-duty 350
disability, or partial on-duty disability, or early vested 351
service; 352
(c) A member of the fund who is receiving a pension under 354
division (C)(1) of this section, based on funded volunteer or 355
funded part-time service. 356
(J) On and after July 1, 1977, a member of the fund who 358
was receiving an annual pension or benefit on December 31, 1973, 359
pursuant to division (B) of this section, based upon partial 360
disability, off-duty disability, or early vested service, or 361
pursuant to former division (C)(3), (5), or (6) of this section, 362
shall have such annual pension or benefit increased by three 363
hundred dollars. 364
The following are not eligible to receive the increase 366
provided by this division: 367
(1) A member of the fund who is receiving a pension or 369
benefit in accordance with the rules in force on April 1, 1947, 370
governing the granting of pensions and benefits, which provide an 371
increase in the original pension or benefit from time to time 372
pursuant to changes in the salaries of active members; 373
(2) A member of the fund who is receiving a pension or 375
benefit under division (B) or (C)(2) of this section or former 377
division (C)(3), (5), or (6) of this section based on volunteer 378
or part-time service.
(K)(1) Except as otherwise provided in this division, 380
every person who on July 24, 1986, is receiving an age and 381
service or disability pension, allowance, or benefit pursuant to 382
this chapter in an amount less than thirteen thousand dollars a 383
year that is based upon an award made effective prior to February 384
28, 1984, shall receive an increase of six hundred dollars a year 385
or the amount necessary to increase the pension or benefit to 386
four thousand two hundred dollars after all adjustments required 387
by this section, whichever is greater. 388
9
(2) Division (K)(1) of this section does not apply to the 390
following: 391
(a) A member of the fund who is receiving a pension or 393
benefit in accordance with rules in force on April 1, 1947, that 394
govern the granting of pensions and benefits and that provide an 395
increase in the original pension or benefit from time to time 396
pursuant to changes in the salaries of active members; 397
(b) A member of the fund who is receiving a pension or 399
benefit based on funded volunteer or funded part-time service. 400
(L) On and after July 24, 1986: 402
(1) The pension of each person receiving a pension under 404
division (D) of this section on July 24, 1986, shall be increased 405
to three hundred ten dollars per month. 406
(2) The pension of each person receiving a pension under 408
division (E) of this section on July 24, 1986, shall be increased 409
to ninety-three dollars per month. 410
Sec. 742.3711. (A) On application for retirement as 419
provided in section 742.37 of the Revised Code, a member of the 420
fund may elect to receive a retirement allowance payable 421
throughout the member's life, or may elect, on the application 423
for retirement, to receive the actuarial equivalent of the 424
member's retirement allowance in a lesser amount payable for life 426
and continuing after death to a surviving designated beneficiary 427
under one of the following optional plans, provided the amount 428
payable to the beneficiary shall not exceed the amount payable to 429
the retiring member of the fund, and is certified by the actuary 430
engaged by the board of trustees of the Ohio police and fire 431
pension fund to be the actuarial equivalent of the member's 432
retirement allowance and is approved by the board. 433
(1) Option 1. The member's lesser retirement allowance 435
shall be paid for life to the sole beneficiary designated at the 437
time of the member's retirement. 438
(2) Option 2. One-half or some other portion of the 440
member's lesser retirement allowance shall be paid for life to 442
10
the sole beneficiary designated at the time of the member's 444
retirement. 445
(3) Option 3. Upon the member's death before the 447
expiration of a certain period from the retirement date and 449
elected by the member and approved by the retirement board, the 451
member's lesser retirement allowance shall be continued for the 452
remainder of that period to the beneficiary the member has 454
nominated by written designation and filed with the retirement 456
board.
Should the nominated beneficiary designated in writing 458
become deceased prior to the expiration of the guarantee period, 459
then for the purpose of completing payment for the remainder of 460
the guarantee period, the present value of such payments shall be 461
paid to the estate of the beneficiary last receiving. 462
(B)(1) On or after February 28, 1980, the death of a 464
spouse nominated as beneficiary or the death of any other 465
nominated beneficiary following retirement shall cancel any 466
optional plan of payment to provide continuing lifetime benefits 467
to such nominated beneficiary and return the member of the fund 468
to the member's single lifetime benefit equivalent, as determined 470
by the board, to be effective the month following receipt by the 471
board of notice of the death. 472
(2) On divorce, annulment, or marriage dissolution, a 474
member receiving a retirement allowance under a plan that 475
provides for continuation of all or part of the allowance after 476
death for the lifetime of the member's surviving spouse may, with 478
the written consent of the spouse or pursuant to an order of the 479
court with jurisdiction over the termination of the marriage, 480
elect to cancel the plan and receive the member's single lifetime 482
benefit equivalent as determined by the board. The election 483
shall be made on a form provided by the board and shall be 484
effective the month following its receipt by the board. 485
(C) Following marriage or remarriage, a member of the fund 487
may elect not later than one year after the date of marriage or 488
11
remarriage a new optional plan of payment based on the actuarial 489
equivalent of the member's single lifetime benefit as determined 491
by the board. The plan and the member's lesser retirement 492
allowance shall become effective on the date the election is made 493
on a form approved by the board. 494
(D)(1) Unless one of the following occurs, an application 496
for retirement by a married person shall be considered an 497
election of a benefit under option 2 as provided for in division 498
(A)(2) of this section under which one-half of the lesser 499
retirement allowance payable during the life of the retirant will 500
be paid after death to the retirant's spouse for life as sole 502
beneficiary:
(a) The retirant selects an optional plan under division 504
(A) of this section providing for payment after death to the 506
retirant's spouse for life as sole beneficiary of more than 507
one-half of the lesser retirement allowance payable during the 508
life of the retirant; 509
(b) The retirant submits to the retirement board a written 511
statement signed by the spouse attesting that the spouse consents 512
to the retirant's election to receive a single lifetime 514
retirement allowance or a payment under an optional benefit plan 515
under which after the death of the retirant the surviving spouse 516
will receive less than one-half of the lesser retirement 517
allowance payable during the life of the retirant. 518
(2) An application for retirement shall include an 521
explanation of all of the following: 522
(a) That, if the member is married, unless the spouse 525
consents to another plan of payment, the member's retirement 526
allowance will be paid under "option 2" and consist of the 527
actuarial equivalent of the member's retirement allowance in a 528
lesser amount payable for life and one-half of the lesser 529
allowance continuing after death to the surviving spouse for the
life of the spouse; 530
(b) A description of the alternative plans of payment 533
12
available with the consent of the spouse;
(c) That the spouse may consent to another plan of payment 536
and the procedure for giving consent;
(d) That consent is irrevocable once notice of consent is 538
filed with the board. 539
Consent shall be valid only if it is signed, in writing, 542
and witnessed by an employee of the board or a notary public. 543
(3) If the retirant does not select an optional plan as 545
described in division (D)(1)(a) of this section and the board 546
does not receive the written statement provided for in division 547
(D)(1)(b) of this section, it shall determine and pay the 549
retirement allowance in accordance with division (A)(2) of this 550
section, except that the board may provide by rule for waiver by 551
the board of the statement and payment of the allowance other 552
than in accordance with division (A)(2) of this section if the 553
retirant is unable to obtain the statement due to absence or 554
incapacity of the spouse or other cause specified by the board. 555
(E) A member of the fund who has elected an optional plan 557
under this section or section 742.3715 of the Revised Code may, 558
with the consent of the designated beneficiary, cancel the 559
optional plan and receive the retirement allowance payable 560
throughout life the member would have received had the member not 562
elected the optional plan, if the member makes a request to 563
cancel the optional plan not later than one year after the later 565
of September 9, 1988, or the date on which the member first 566
receives a payment under this section or section 742.3715 of the 567
Revised Code. Cancellation of the optional plan shall be 568
effective the month after acceptance of the request by the 569
trustees of the fund. No payment or adjustment shall be made in 570
the retirement allowance payable throughout the member's life to 571
compensate for the lesser allowance the member received under the 572
optional plan.
The request to cancel the optional plan shall be made on a 574
form provided by the fund and shall be valid only if the 575
13
completed form includes a signed statement of the designated 576
beneficiary's understanding of and consent to the cancellation. 577
The signature shall be verified by the trustees of the fund prior 578
to their acceptance of the cancellation. 579
(F) Any option elected and payments made under this 581
section shall be in addition to any benefit payable under 582
divisions (D), (E), and (F) of section 742.37 of the Revised 583
Code. 584
(G)(1) Except as otherwise provided in this division, a A 586
person is eligible to receive an additional A benefit INCREASE 588
under this division if the person is receiving a retirement 589
allowance or benefit under an optional plan elected under this 591
section or section 742.3715 of the Revised Code based on an award 592
made prior to July 24, 1986, and it is the case that, had the 593
member who elected the optional plan elected instead to receive a 594
retirement allowance payable throughout the member's life, the 595
amount of that retirement allowance would be less than the amount 597
specified in division (G)(2) of this section. A person is not 598
eligible to receive an additional benefit INCREASE under this 599
section DIVISION if the person is receiving a pension or benefit 602
in accordance with rules in force on April 1, 1947, that govern 603
the granting of pensions and benefits and that provide an 604
increase in the original pension or benefit from time to time 605
pursuant to changes in the salaries of active members.
(2) In 1988, the amount used to determine eligibility 607
under division (G)(1) of this section shall be eighteen thousand 608
dollars. Each year thereafter, the amount shall be the prior 609
year's amount plus five hundred dollars. 610
(3) On or before the fifteenth day of April of each year, 612
the board shall determine the average percentage change in the 613
consumer price index prepared by the United States bureau of 614
labor statistics (U.S. city average for urban wage earners and 615
clerical workers: "all items 1982-84=100") for the twelve-month 617
period prior to the first day of January over the next preceding 618
14
twelve-calendar-month period, as reported by the bureau. On a 619
determination by the board that this change is an increase or 621
that the change plus the accumulation described in THIS division 623
(G)(3) of this section is an increase, the board shall increase 625
all benefits payable under this section or section 742.3715 of 626
the Revised Code to eligible persons by the actuarial equivalent 627
of an amount determined by multiplying twelve thousand dollars by 629
the percentage of the increase in the consumer price index, or 630
that percentage plus the accumulation, except that the percentage 631
shall not exceed three per cent and no benefit shall exceed the 632
limit established by section 415 of the "Internal Revenue Code of 633
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 634
Any percentage of change in the consumer price index in any 636
year that is in excess of three per cent shall be accumulated and 637
used to determine increases under this section in succeeding 639
years. Any percentage of change in the consumer price index 640
accumulated by an eligible person prior to September 27, 1996, 642
shall be used in determining any future increases under this 643
section. The first additional benefit INCREASE is payable to all 644
eligible persons on July 1, 1988. The additional benefit 645
INCREASE is payable for the ensuing twelve-month period or until 647
the next increase is granted under this section, whichever is 648
later.
The date of the first additional benefit INCREASE payable 650
under this section shall be the anniversary date for future 652
additional benefits INCREASES. 653
Sec. 742.3715. (A) A member of the Ohio police and fire 663
pension fund who retired under section 742.37 of the Revised Code 664
before February 28, 1980, may elect to receive the actuarial 665
equivalent of the member's retirement allowance in a lesser 666
amount payable for the remainder of the member's life and 667
continuing after death to the member's spouse under one of the 669
optional plans described under division (A)(1) or (2) of section 670
742.3711 of the Revised Code, provided the amount payable under 671
15
the optional plan elected is certified by the actuary engaged by 672
the board of trustees of the Ohio police and fire pension fund to 674
be the actuarial equivalent of the member's retirement allowance 675
and is approved by the board FUND. The election shall be made as 677
follows:
(1) Not later than ninety days after September 26, 1984, 679
the member shall file with the board FUND a notice that the 681
member wishes to be eligible to make the election authorized by 682
this section. The board FUND shall advise the member with 683
respect to the choices available under the optional plans and 685
have a determination made of the monthly benefits payable under 686
the optional plan elected by the member for inclusion in the 687
statement to be filed under division (A)(2) of this section. 688
(2) Not later than one year after September 26, 1984, the 690
member shall file a statement, on a form provided by the board 691
FUND, that the member elects to receive benefits under the 693
optional benefit plan specified in the statement. 694
A request or form that is mailed to the board shall be 696
considered to have been filed on its postmark date. 697
(B) A member of the fund who retired under section 742.37 699
of the Revised Code prior to September 16, 1998, was married at 703
the time of retirement AND IS CURRENTLY MARRIED TO THE SAME
SPOUSE, and did not elect one of the optional plans under section 705
742.3711 of the Revised Code may elect to receive the actuarial 708
equivalent of the member's retirement allowance in a lesser 709
amount payable for the remainder of the member's life and
continuing after death to the member's spouse under one of the 710
optional plans described in division (A)(1) or (2) of section 712
742.3711 of the Revised Code, provided the amount payable under 715
the optional plan elected is certified by the actuary engaged by 716
the board FUND to be the actuarial equivalent of the member's 718
retirement allowance and is approved by the board FUND. 719
Not later than thirty days after December 21, 1998, the 721
board FUND shall provide to all members described in this 724
16
division written notice of the election available under this 725
division. The notice shall state that a member's failure to 726
elect an optional plan under this division will result in the 727
member's spouse, at the time of the member's death, being 728
eligible only for a benefit under division (D) of section 742.37 729
of the Revised Code. 731
The election shall be made as follows: 733
(1) Not later than one hundred twenty days after December 735
21, 1998, the member shall file with the board FUND a notice that 738
the member wishes to make the election authorized by this 739
section. The board FUND shall advise the member with respect to 741
the choices available under the optional plans and have a 742
determination made of the monthly benefits payable under the 743
optional plan elected by the member for inclusion in the 744
statement to be filed under division (B)(2) of this section. 745
(2) Not later than one year after December 21, 1998, the 748
member shall file a statement, on a form provided by the board 750
FUND, that the member elects to receive benefits under the 751
optional plan specified in the statement. A request or form that 752
is mailed to the board FUND'S PRINCIPAL PLACE OF BUSINESS shall 753
be considered to have been filed on its postmark date. Benefits 754
under the optional plan shall begin on the first day of the first 755
month following the date the statement is filed with the board 756
FUND.
(C)(1) The death of the member's spouse shall cancel any 758
plan elected pursuant to this section and return the member to 759
the member's single lifetime benefit equivalent, as determined by 761
the board FUND, to be effective the month following receipt by 762
the board FUND of notice of the death. 764
(2) On divorce, annulment, or marriage dissolution, a 766
member receiving a retirement allowance under a plan that 767
provides for continuation of all or part of the allowance after 768
death for the lifetime of the member's surviving spouse may, with 770
the written consent of the spouse or pursuant to an order of the 771
17
court with jurisdiction over the termination of the marriage, 772
elect to cancel the plan and receive the member's single lifetime 774
benefit equivalent as determined by the board FUND. The election 775
shall be made on a form provided by the board FUND and shall be 776
effective the month following its receipt by the board FUND. 777
(D) If the member remarries after cancellation under 779
division (C)(1) or (2) of this section of an optional plan, the 781
member may elect not later than one year after the date of 782
remarriage a new optional plan based on the actuarial equivalent 784
of the member's single lifetime benefit as determined by the 785
board FUND. The plan and the member's lesser retirement 787
allowance shall become effective on the date the election is made 788
on a form approved by the board FUND. 789
(E) Any option elected and payments made under this 791
section shall be in addition to any benefit payable under 792
division (D) of section 742.37 of the Revised Code. 793
Sec. 742.3717. (A)(1) Except as provided in division 803
(A)(2) of this section, as used in this section, "eligible 804
retirant PERSON" means a person who meets all BOTH of the 805
following conditions:
(a) The person is receiving an annual pension or benefit 807
under division (A), (B), or (C) of section 742.37 or division 809
(C)(2), (3), (4), or (5) of former section 742.37 of the Revised 810
Code based on an award made prior to July 24, 1986. 811
(b) The person has not elected under section 742.3711 of 813
the Revised Code to receive a retirement allowance under an 814
optional benefit plan. 815
(c) The amount of the annual pension or benefit is less 817
than the amount specified in division (B) of this section. 818
(2) A person is not an eligible retirant PERSON if the 820
person is receiving a pension or benefit in accordance with rules 822
in force on April 1, 1947, that govern the granting of pensions 823
and benefits and that provide an increase in the original pension 824
or benefit from time to time pursuant to changes in the salaries 825
18
of active members. 826
(B) In 1988, the amount used to determine eligibility 828
under division (A)(1)(c) of this section shall be eighteen 829
thousand dollars. Each year thereafter, the amount shall be the 830
prior year's amount plus five hundred dollars. 831
(C)(1) On or before the fifteenth day of April of each 833
year, the board of trustees of the Ohio police and fire pension 835
fund shall determine the average percentage change in the
consumer price index prepared by the United States bureau of 836
labor statistics (U.S. city average for urban wage earners and 837
clerical workers: "all items 1982-84=100") for the twelve-month 839
period prior to the first day of January over the next preceding 840
twelve-calendar-month period, as reported by the bureau. Upon a 841
determination by the board that this change is an increase or 844
that the change plus the accumulation described in division 845
(C)(B)(2) of this section is an increase, the board shall 847
increase all benefits payable to eligible persons by an amount 849
determined by multiplying twelve thousand dollars by the
percentage of the increase in the consumer price index, or that 850
percentage plus the accumulation, except that the percentage 851
shall not exceed three per cent and no benefit shall exceed the 852
limit established by section 415 of the "Internal Revenue Code of 853
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended. 854
(2) Any percentage of change in the consumer price index 856
in any year that is in excess of three per cent shall be 857
accumulated and used to determine increases under this section in 859
succeeding years. Any percentage of change in the consumer 860
price index accumulated by an eligible person prior to September 862
27, 1996, shall be used in determining any future increases under 863
this section. The first additional benefit INCREASE is payable 864
to all eligible retirants PERSONS on July 1, 1988. The 865
additional benefit INCREASE is payable for the ensuing 867
twelve-month period or until the next increase is granted under 868
this section, whichever is later.
19
The date of the first additional benefit INCREASE payable 870
under this section shall be the anniversary date for future 872
additional benefits INCREASES. 873
Sec. 742.3718. (A) Except as otherwise provided in this 882
division, each person who on September 9, 1988, is receiving a 884
pension or benefit of less than five thousand dollars annually 886
under division (A) or (B) of section 742.37 of the Revised Code 887
on the basis of disability or service of twenty-five years or 888
more, under division (C)(1) of that section, or under division 889
(C)(2) or (5) of former section 742.37 of the Revised Code shall 890
have the pension or benefit increased to five thousand dollars a 892
year, effective July 1, 1988. This division does not apply to 893
any person receiving a pension or benefit based on funded 894
volunteer or funded part-time service.
(B) On and after July 1, 1988: 896
(1) The pension of each person receiving a pension or 898
benefit under division (D) of section 742.37 of the Revised Code 899
shall be increased to four hundred ten dollars a month. 900
(2) The pension of each person receiving a pension or 902
benefit under division (E) of section 742.37 of the Revised Code 903
shall be increased to one hundred eighteen dollars a month. 904
(C) Notwithstanding any average annual salary limitation 907
in section 742.37 of the Revised Code, each person who on July 1, 910
1999, is receiving an annual pension or benefit described in 911
division (A), (B), or (C)(1) or (3) of that section of less than 914
six thousand six hundred dollars shall have the pension increased 915
to that amount, effective July 1, 1999. The increase granted 917
under this division shall be included in a person's base for the 919
purpose of determining future increases under section 742.3716 of 920
the Revised Code. 921
(D)(1) This division applies to the following persons who 923
are receiving a pension under division (D) of section 742.37 of 925
the Revised Code: 927
(a) On July 1, 1999, the person is the surviving spouse of 931
20
a deceased member of the fund and is not receiving a benefit 932
under division (B) or (D) of section 742.63 of the Revised Code. 933
(b) No later than one year after July 1, 1999, the person 936
is the surviving spouse of a deceased member of the fund who was 938
retired under section 742.37 of the Revised Code with an 939
effective date of retirement before September 16, 1998. 940
(2) The EXCEPT AS PROVIDED IN DIVISION (D)(2) OF THIS 942
SECTION, THE monthly pension of each person WHO IS THE SURVIVING 943
SPOUSE OF A DECEASED MEMBER OF THE FUND AND ON THE EFFECTIVE DATE 944
OF THIS AMENDMENT IS RECEIVING A PENSION OF LESS THAN THE AMOUNT 945
described in division (D)(1) of this section 742.37 OF THE 947
REVISED CODE shall be increased as follows: 948
(a) For the period beginning July 1, 1999 ON THE FIRST DAY 951
OF THE FIRST MONTH FOLLOWING THE EFFECTIVE DATE OF THIS 952
AMENDMENT, and ending June 30, 2000, to five hundred fifty 954
dollars;
(b) For the period beginning July 1, 2000, and the first 957
day of July of each year thereafter and continuing for the 959
following twelve months, to an amount equal to the GREATER OF 960
FIVE HUNDRED FIFTY DOLLARS OR THE monthly amount paid during the 961
prior twelve-month period plus an amount determined by 963
multiplying five hundred fifty dollars by the average percentage 964
change in the consumer price index, not exceeding three per cent, 965
as determined each year by the board of trustees of the Ohio 966
police and fire pension fund under section 742.3716 of the 970
Revised Code. 971
(3) If (2) AN INCREASE UNDER DIVISION (D)(1) OF THIS 974
SECTION SHALL NOT BE PAID TO a person who is receiving a pension
under division (D)(2) of section 742.37 of the Revised Code and a 978
benefit under division (B) or (D) of section 742.63 of the 980
Revised Code UNTIL THE PERSON ceases to be eligible for a benefit 983
under division (B) or (D) of section 742.63 of the Revised Code, 986
the. THE person's monthly pension shall be increased, effective 988
the first day of the first month following the date on which the 989
21
person ceases to be eligible for the benefit, to the amount it 990
would be under division (D)(2)(1) of this section had the person 992
never been eligible for a benefit under division (B) or (D) of 993
section 742.63 of the Revised Code. 994
(E) The monthly pension of each person receiving a pension 997
under division (E) of section 742.37 of the Revised Code shall be 999
increased to one hundred fifty dollars effective July 1, 1999. 1,000
(F) Effective July 1, 1999, the monthly pension of each 1,003
person receiving a pension under division (F) of section 742.37 1,004
of the Revised Code shall be increased as follows: 1,007
(1) If there are two dependent parents, to one hundred 1,009
dollars;
(2) If there is one dependent parent, to two hundred 1,011
dollars.
Section 2. That existing sections 742.37, 742.3711, 1,013
742.3715, 742.3717, and 742.3718 of the Revised Code are hereby 1,016
repealed.
Section 3. Not later than the first day of the second 1,018
month after this act's effective date, the Police and Fire 1,019
Pension Fund shall make a one-time payment in accordance with 1,020
this section. 1,021
(A) To each person who became a surviving spouse after 1,023
December 21, 1998, and is eligible for the pension increase 1,024
provided under Am. Sub. H.B. 194 of the 122nd General Assembly 1,025
that took effect July 1, 1999, the payment shall be one hundred 1,026
forty dollars for each month the person was eligible to receive a 1,027
pension during the period beginning December 22, 1998, and ending 1,028
June 30, 1999. 1,029
(B) To each person who is eligible to receive the pension 1,031
increase provided under division (D) of section 742.3718 of the 1,032
Revised Code, as amended by this act, and is not eligible for the 1,033
pension increase provided under Am. Sub. H.B. 194 of the 122nd 1,034
General Assembly that took effect July 1, 1999, the payment shall 1,035
be an amount equal to the difference between the amount the 1,036
22
surviving spouse of a deceased member of the fund received under 1,037
division (D) of section 742.37 of the Revised Code and the amount 1,038
the surviving spouse would have received under section 742.3718 1,039
of the Revised Code, as amended by this act, had this act gone 1,040
into effect on July 1, 1999.