As Passed by the House                        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-        12           

  SULLIVAN-EVANS-OPFER-VERICH-FORD-TAYLOR-BRADING-BARNES-SMITH-    14           

    VAN VYVEN-GRENDELL-ASLANIDES-OLMAN-PERRY-METZGER-GARDNER-                   

      SUTTON-HAINES-HARRIS-JORDAN-MOTTLEY-DISTEL-PETERSON-         15           

     DAMSCHRODER-CORBIN-MYERS-WILSON-CAREY-J. BEATTY-BUCHY-        16           

     NETZLEY-HOLLISTER-A. CORE-LOGAN-CALVERT-REDFERN-HOOPS-        17           

     GOODMAN-TRAKAS-GERBERRY-WOMER BENJAMIN-JACOBSON-HEALY-        18           

                 AUSTRIA-SALERNO-BRITTON-GOODING                   19           


_________________________________________________________________   20           

                          A   B I L L                                           

             To amend sections 742.37, 742.3711, 742.3715,         22           

                742.3717, and 742.3718 of the Revised Code to      25           

                increase benefits paid to certain surviving                     

                spouses of members of the Ohio Police and Fire     27           

                Pension Fund (OPFPF) and to eliminate the          28           

                eligibility limits for cost-of-living allowances   29           

                that apply to certain OPFPF members.               30           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        32           

      Section 1.  That sections 742.37, 742.3711, 742.3715,        34           

742.3717, and 742.3718 of the Revised Code be amended to read as   37           

follows:                                                                        

      Sec. 742.37.  The board of trustees of the Ohio police and   46           

fire pension fund shall adopt rules for the management of the      49           

fund and for the disbursement of benefits and pensions as set      50           

forth in this section and section 742.39 of the Revised Code.      51           

                                                          2      


                                                                 
Any payment of a benefit or pension under this section is subject  53           

to the provisions of section 742.461 of the Revised Code.          54           

Notwithstanding any other provision of this section, no pension    55           

or benefit paid or determined under division (B) or (C) of this    56           

section or section 742.39 of the Revised Code shall exceed the     58           

limit established by section 415 of the "Internal Revenue Code of  59           

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                             

      (A)  Persons who were receiving benefit or pension payments  61           

from a police relief and pension fund established under former     62           

section 741.32 of the Revised Code, or from a firemen's relief     63           

and pension fund established under former section 521.02 or        65           

741.02 of the Revised Code, at the time the assets of the fund     67           

were transferred to the Ohio police and fire pension fund, known   68           

at that time as the police and firemen's disability and pension    70           

fund, shall receive benefit and pension payments from the Ohio     71           

police and fire pension fund in the same amount and subject to     74           

the same conditions as such payments were being made from the      76           

former fund on the date of the transfer.                           77           

      (B)  A member of the fund who, pursuant to law, elected to   79           

receive benefits and pensions from a police relief and pension     80           

fund established under former section 741.32 of the Revised Code,  82           

or from a firemen's relief and pension fund established under      84           

former section 741.02 of the Revised Code, in accordance with the  85           

rules of the fund governing the granting of benefits or pensions   87           

therefrom in force on April 1, 1947, shall receive benefits and    88           

pensions from the Ohio police and fire pension fund in accordance  90           

with such rules; provided, that any member of the fund who is not  91           

receiving a benefit or pension from the fund on August 12, 1975,   92           

may, upon application for a benefit or pension to be received on   93           

or after August 12, 1975, elect to receive a benefit or pension    94           

in accordance with division (C) of this section.                   95           

      (C)  Members of the fund who have not elected to receive     97           

benefits and pensions from a police relief and pension fund or a   98           

firemen's relief and pension fund in accordance with the rules of  100          

                                                          3      


                                                                 
the fund in force on April 1, 1947, shall receive pensions and     102          

benefits in accordance with the following provisions:                           

      (1)  A member of the fund who has completed twenty-five      104          

years of active service in a police or fire department and has     105          

attained forty-eight years of age may, at the member's election,   107          

retire from the police or fire department, and upon notifying the  108          

board in writing of the election, shall receive an annual          109          

pension, payable in twelve monthly installments, in an amount      111          

equal to a percentage of the member's average annual salary.  The  112          

percentage shall be the sum of two and one-half per cent for each  114          

of the first twenty years the member was in the active service of  115          

the department, plus two per cent for each of the twenty-first to  117          

twenty-fifth years the member was in the active service of the     118          

department, plus one and one-half per cent for each year in        120          

excess of twenty-five years the member was in the active service   121          

of the department.  The annual pension shall not exceed            122          

seventy-two per cent of the member's average annual salary.        123          

      A member who completed twenty-five years of active service,  126          

has resigned or been discharged, and has left the sum deducted     128          

from the member's salary on deposit in the pension fund shall,     129          

upon attaining forty-eight years of age, be entitled to receive a  131          

normal service pension benefit computed and paid under division    132          

(C)(1) of this section.                                                         

      (2)  A member of the fund who has served fifteen or more     134          

years as an active member of a police or fire department and who   135          

voluntarily resigns or is discharged from the department for any   137          

reason other than dishonesty, cowardice, intemperate habits, or    138          

conviction of a felony, shall receive an annual pension, payable   139          

in twelve monthly installments, in an amount equal to one and      140          

one-half per cent of the member's average annual salary            141          

multiplied by the number of full years the member was in the       143          

active service of the department.  The pension payments shall not  144          

commence until the member has attained the age of forty-eight      146          

years and until twenty-five years have elapsed from the date on    147          

                                                          4      


                                                                 
which the member became a full-time regular police officer or      149          

firefighter in the department.                                     150          

      (3)  A member of the fund who has completed fifteen or more  152          

years of active service in a police or fire department and who     153          

has attained sixty-two years of age, may retire from the           154          

department and, upon notifying the board in writing of the         155          

election to retire, shall receive an annual pension, payable in    156          

twelve monthly installments, in an amount equal to a percentage    157          

of the member's average annual salary.  The percentage shall be    159          

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,      161          

plus two per cent for each of the twenty-first to twenty-fifth     163          

years the member was in the active service of the department,      165          

plus one and one-half per cent for each year in excess of          167          

twenty-five years the member was in the active service of the      169          

department.  The annual pension shall not exceed seventy-two per   171          

cent of the member's average annual salary.                        172          

      (4)  With the exception of those persons who may make        174          

application for benefits as provided in section 742.26 of the      176          

Revised Code, no person receiving a pension or other benefit       177          

under division (C) of this section on or after July 24, 1986,      178          

shall be entitled to apply for any new, changed, or different      179          

benefit.                                                                        

      If a member covered by division (C) of this section or       181          

section 742.38 of the Revised Code dies prior to the time the      183          

member has received a payment and leaves a surviving spouse or     185          

dependent child, the surviving spouse or dependent child shall     186          

receive a pension under division (D) or (E) of this section.       187          

      (D)(1)  Except as provided in division (D)(2) of this        190          

section, a surviving spouse of a deceased member of the fund                    

shall receive a monthly pension as follows:                        192          

      (a)  For the period beginning July 1, 1999, and ending June  196          

30, 2000, five hundred fifty dollars;                              197          

      (b)  For the period beginning July 1, 2000, and the first    200          

                                                          5      


                                                                 
day of July of each year thereafter and continuing for the         202          

following twelve months, an amount equal to the monthly amount     203          

paid during the prior twelve-month period plus an amount           204          

determined by multiplying five hundred fifty dollars by the        206          

average percentage change in the consumer price index, not         207          

exceeding three per cent, as determined each year by the board     208          

under section 742.3716 of the Revised Code.                        210          

      (2)  A surviving spouse of a deceased member of the fund     212          

shall receive a monthly pension of four hundred ten dollars if     214          

one of the following is the case:                                  215          

      (a)  At the time of death, the deceased member had been      218          

awarded a pension under this chapter based on age and service;     219          

      (b)  The THE surviving spouse is eligible for a benefit      222          

under section 742.3714 or division (B) or (D) of section 742.63    223          

of the Revised Code.  If the surviving spouse ceases to be         224          

eligible for a benefit under division (B) or (D) of section        225          

742.63 of the Revised Code, the pension shall be increased,        228          

effective the first day of the first month following the day on    229          

which the surviving spouse ceases to be eligible for the benefit,               

to the amount it would be under division (D)(1) of this section    230          

had the spouse never been eligible for a benefit under division    232          

(B) or (D) of section 742.63 of the Revised Code.                  235          

      (3)  A pension paid under this division shall continue       238          

during the natural life of the surviving spouse.  Benefits to a    240          

deceased member's surviving spouse that were terminated under a    242          

former version of this section that required termination due to    243          

remarriage and were not resumed prior to September 16, 1998,       245          

shall resume on the first day of the month immediately following   246          

receipt by the board of an application on a form provided by the   247          

board.                                                                          

      (E)  Each surviving child of a deceased member of the fund   250          

shall receive a monthly pension of one hundred fifty dollars       252          

until the child attains the age of eighteen years, or marries,     254          

whichever event occurs first.  A pension under this division,      256          

                                                          6      


                                                                 
however, shall continue to be payable to a child under age         257          

twenty-two who is a student in and attending an institution of     258          

learning or training pursuant to a program designed to complete    259          

in each school year the equivalent of at least two-thirds of the   260          

full-time curriculum requirements of the institution, as           261          

determined by the board.  If any surviving child, regardless of    264          

age at the time of the member's death, because of physical or      265          

mental disability, is totally dependent upon the deceased member   267          

for support at the time of death, the child shall receive a        268          

monthly pension under this division during the child's natural     271          

life or until the child has recovered from the disability.         272          

      (F)  If a deceased member of the fund leaves no surviving    274          

spouse or surviving children, but leaves two parents dependent     275          

upon the deceased member for support, each parent shall be paid a  277          

monthly pension of one hundred dollars.  If there is only one      278          

parent dependent upon the member for support, the parent shall be  280          

paid a monthly pension of two hundred dollars.  The pensions       282          

provided for in this division shall be paid during the natural                  

life of the surviving parents, or until dependency ceases, or      283          

until remarriage, whichever event occurs first.                    284          

      (G)  Subject to the provisions of section 742.461 of the     286          

Revised Code, a member of the fund who voluntarily resigns or is   288          

removed from active service in a police or fire department is      289          

entitled to receive an amount equal to the sums deducted from the  290          

member's salary and credited to the member's account in the fund,  291          

except that a member receiving a disability benefit or service     292          

pension is not entitled to receive any return of contributions to  293          

the fund.                                                                       

      (H)  On and after January 1, 1970, all pensions shall be     295          

increased in accordance with the following provisions:             296          

      (1)  A member of the fund who retired prior to January 1,    298          

1967, has attained age sixty-five on January 1, 1970, and was      299          

receiving a pension on December 31, 1969, pursuant to division     300          

(B) or (C)(1) of this section or former division (C)(2), (3),      302          

                                                          7      


                                                                 
(4), or (5) of this section, shall have the pension increased by   303          

ten per cent.                                                                   

      (2)  The monthly pension payable to eligible surviving       305          

spouses under division (D) of this section shall be increased by   306          

forty dollars for each surviving spouse receiving a pension on     307          

December 31, 1969.                                                 308          

      (3)  The monthly pension payable to each eligible child      310          

under division (E) of this section shall be increased by ten       311          

dollars for each child receiving a pension on December 31, 1969.   312          

      (4)  The monthly pension payable to each eligible dependent  314          

parent under division (F) of this section shall be increased by    315          

thirty dollars for each parent receiving a pension on December     316          

31, 1969.                                                          317          

      (5)  A member of the fund, including a survivor of a         319          

member, who is receiving a pension in accordance with the rules    320          

governing the granting of pensions and benefits in force on April  321          

1, 1947, that provide an increase in the original pension from     323          

time to time pursuant to changes in the salaries of active         324          

members, shall not be eligible for the benefits provided in this   325          

division.                                                          326          

      (I)  On and after January 1, 1977, a member of the fund who  328          

was receiving a pension or benefit on December 31, 1973, under     329          

division (A), (B), (C)(1), or former division (C)(2) or (7) of     331          

this section shall have the pension or benefit increased as        332          

follows:                                                                        

      (1)  If the member's annual pension or benefit is less than  334          

two thousand seven hundred dollars, it shall be increased to       336          

three thousand dollars.                                            337          

      (2)  If the member's annual pension or benefit is two        339          

thousand seven hundred dollars or more, it shall be increased by   341          

three hundred dollars.                                             342          

      The following shall not be eligible to receive increased     344          

pensions or benefits as provided in this division:                 345          

      (a)  A member of the fund who is receiving a pension or      347          

                                                          8      


                                                                 
benefit in accordance with the rules in force on April 1, 1947,    348          

governing the granting of pensions and benefits, which provide an  349          

increase in the original pension or benefit from time to time      350          

pursuant to changes in the salaries of active members;             351          

      (b)  A member of the fund who is receiving a pension or      353          

benefit under division (A) or (B) of this section, based on        354          

funded volunteer or funded part-time service, or off-duty          355          

disability, or partial on-duty disability, or early vested         356          

service;                                                           357          

      (c)  A member of the fund who is receiving a pension under   359          

division (C)(1) of this section, based on funded volunteer or      360          

funded part-time service.                                          361          

      (J)  On and after July 1, 1977, a member of the fund who     363          

was receiving an annual pension or benefit on December 31, 1973,   364          

pursuant to division (B) of this section, based upon partial       365          

disability, off-duty disability, or early vested service, or       366          

pursuant to former division (C)(3), (5), or (6) of this section,   367          

shall have such annual pension or benefit increased by three       368          

hundred dollars.                                                   369          

      The following are not eligible to receive the increase       371          

provided by this division:                                         372          

      (1)  A member of the fund who is receiving a pension or      374          

benefit in accordance with the rules in force on April 1, 1947,    375          

governing the granting of pensions and benefits, which provide an  376          

increase in the original pension or benefit from time to time      377          

pursuant to changes in the salaries of active members;             378          

      (2)  A member of the fund who is receiving a pension or      380          

benefit under division (B) or (C)(2) of this section or former     382          

division (C)(3), (5), or (6) of this section based on volunteer    383          

or part-time service.                                                           

      (K)(1)  Except as otherwise provided in this division,       385          

every person who on July 24, 1986, is receiving an age and         386          

service or disability pension, allowance, or benefit pursuant to   387          

this chapter in an amount less than thirteen thousand dollars a    388          

                                                          9      


                                                                 
year that is based upon an award made effective prior to February  389          

28, 1984, shall receive an increase of six hundred dollars a year  390          

or the amount necessary to increase the pension or benefit to      391          

four thousand two hundred dollars after all adjustments required   392          

by this section, whichever is greater.                             393          

      (2)  Division (K)(1) of this section does not apply to the   395          

following:                                                         396          

      (a)  A member of the fund who is receiving a pension or      398          

benefit in accordance with rules in force on April 1, 1947, that   399          

govern the granting of pensions and benefits and that provide an   400          

increase in the original pension or benefit from time to time      401          

pursuant to changes in the salaries of active members;             402          

      (b)  A member of the fund who is receiving a pension or      404          

benefit based on funded volunteer or funded part-time service.     405          

      (L)  On and after July 24, 1986:                             407          

      (1)  The pension of each person receiving a pension under    409          

division (D) of this section on July 24, 1986, shall be increased  410          

to three hundred ten dollars per month.                            411          

      (2)  The pension of each person receiving a pension under    413          

division (E) of this section on July 24, 1986, shall be increased  414          

to ninety-three dollars per month.                                 415          

      Sec. 742.3711.  (A)  On application for retirement as        424          

provided in section 742.37 of the Revised Code, a member of the    425          

fund may elect to receive a retirement allowance payable           426          

throughout the member's life, or may elect, on the application     428          

for retirement, to receive the actuarial equivalent of the         429          

member's retirement allowance in a lesser amount payable for life  431          

and continuing after death to a surviving designated beneficiary   432          

under one of the following optional plans, provided the amount     433          

payable to the beneficiary shall not exceed the amount payable to  434          

the retiring member of the fund, and is certified by the actuary   435          

engaged by the board of trustees of the Ohio police and fire       436          

pension fund to be the actuarial equivalent of the member's        437          

retirement allowance and is approved by the board.                 438          

                                                          10     


                                                                 
      (1)  Option 1.  The member's lesser retirement allowance     440          

shall be paid for life to the sole beneficiary designated at the   442          

time of the member's retirement.                                   443          

      (2)  Option 2.  One-half or some other portion of the        445          

member's lesser retirement allowance shall be paid for life to     447          

the sole beneficiary designated at the time of the member's        449          

retirement.                                                        450          

      (3)  Option 3.  Upon the member's death before the           452          

expiration of a certain period from the retirement date and        454          

elected by the member and approved by the retirement board, the    456          

member's lesser retirement allowance shall be continued for the    457          

remainder of that period to the beneficiary the member has         459          

nominated by written designation and filed with the retirement     461          

board.                                                                          

      Should the nominated beneficiary designated in writing       463          

become deceased prior to the expiration of the guarantee period,   464          

then for the purpose of completing payment for the remainder of    465          

the guarantee period, the present value of such payments shall be  466          

paid to the estate of the beneficiary last receiving.              467          

      (B)(1)  On or after February 28, 1980, the death of a        469          

spouse nominated as beneficiary or the death of any other          470          

nominated beneficiary following retirement shall cancel any        471          

optional plan of payment to provide continuing lifetime benefits   472          

to such nominated beneficiary and return the member of the fund    473          

to the member's single lifetime benefit equivalent, as determined  475          

by the board, to be effective the month following receipt by the   476          

board of notice of the death.                                      477          

      (2)  On divorce, annulment, or marriage dissolution, a       479          

member receiving a retirement allowance under a plan that          480          

provides for continuation of all or part of the allowance after    481          

death for the lifetime of the member's surviving spouse may, with  483          

the written consent of the spouse or pursuant to an order of the   484          

court with jurisdiction over the termination of the marriage,      485          

elect to cancel the plan and receive the member's single lifetime  487          

                                                          11     


                                                                 
benefit equivalent as determined by the board.  The election       488          

shall be made on a form provided by the board and shall be         489          

effective the month following its receipt by the board.            490          

      (C)  Following marriage or remarriage, a member of the fund  492          

may elect not later than one year after the date of marriage or    493          

remarriage a new optional plan of payment based on the actuarial   494          

equivalent of the member's single lifetime benefit as determined   496          

by the board.  The plan and the member's lesser retirement         497          

allowance shall become effective on the date the election is made  498          

on a form approved by the board.                                   499          

      (D)(1)  Unless one of the following occurs, an application   501          

for retirement by a married person shall be considered an          502          

election of a benefit under option 2 as provided for in division   503          

(A)(2) of this section under which one-half of the lesser          504          

retirement allowance payable during the life of the retirant will  505          

be paid after death to the retirant's spouse for life as sole      507          

beneficiary:                                                                    

      (a)  The retirant selects an optional plan under division    509          

(A) of this section providing for payment after death to the       511          

retirant's spouse for life as sole beneficiary of more than        512          

one-half of the lesser retirement allowance payable during the     513          

life of the retirant;                                              514          

      (b)  The retirant submits to the retirement board a written  516          

statement signed by the spouse attesting that the spouse consents  517          

to the retirant's election to receive a single lifetime            519          

retirement allowance or a payment under an optional benefit plan   520          

under which after the death of the retirant the surviving spouse   521          

will receive less than one-half of the lesser retirement           522          

allowance payable during the life of the retirant.                 523          

      (2)  An application for retirement shall include an          526          

explanation of all of the following:                               527          

      (a)  That, if the member is married, unless the spouse       530          

consents to another plan of payment, the member's retirement       531          

allowance will be paid under "option 2" and consist of the         532          

                                                          12     


                                                                 
actuarial equivalent of the member's retirement allowance in a     533          

lesser amount payable for life and one-half of the lesser          534          

allowance continuing after death to the surviving spouse for the                

life of the spouse;                                                535          

      (b)  A description of the alternative plans of payment       538          

available with the consent of the spouse;                                       

      (c)  That the spouse may consent to another plan of payment  541          

and the procedure for giving consent;                                           

      (d)  That consent is irrevocable once notice of consent is   543          

filed with the board.                                              544          

      Consent shall be valid only if it is signed, in writing,     547          

and witnessed by an employee of the board or a notary public.      548          

      (3)  If the retirant does not select an optional plan as     550          

described in division (D)(1)(a) of this section and the board      551          

does not receive the written statement provided for in division    552          

(D)(1)(b) of this section, it shall determine and pay the          554          

retirement allowance in accordance with division (A)(2) of this    555          

section, except that the board may provide by rule for waiver by   556          

the board of the statement and payment of the allowance other      557          

than in accordance with division (A)(2) of this section if the     558          

retirant is unable to obtain the statement due to absence or       559          

incapacity of the spouse or other cause specified by the board.    560          

      (E)  A member of the fund who has elected an optional plan   562          

under this section or section 742.3715 of the Revised Code may,    563          

with the consent of the designated beneficiary, cancel the         564          

optional plan and receive the retirement allowance payable         565          

throughout life the member would have received had the member not  567          

elected the optional plan, if the member makes a request to        568          

cancel the optional plan not later than one year after the later   570          

of September 9, 1988, or the date on which the member first        571          

receives a payment under this section or section 742.3715 of the   572          

Revised Code.  Cancellation of the optional plan shall be          573          

effective the month after acceptance of the request by the         574          

trustees of the fund.  No payment or adjustment shall be made in   575          

                                                          13     


                                                                 
the retirement allowance payable throughout the member's life to   576          

compensate for the lesser allowance the member received under the  577          

optional plan.                                                                  

      The request to cancel the optional plan shall be made on a   579          

form provided by the fund and shall be valid only if the           580          

completed form includes a signed statement of the designated       581          

beneficiary's understanding of and consent to the cancellation.    582          

The signature shall be verified by the trustees of the fund prior  583          

to their acceptance of the cancellation.                           584          

      (F)  Any option elected and payments made under this         586          

section shall be in addition to any benefit payable under          587          

divisions (D), (E), and (F) of section 742.37 of the Revised       588          

Code.                                                              589          

      (G)(1)  Except as otherwise provided in this division, a A   591          

person is eligible to receive an additional A benefit INCREASE     593          

under this division if the person is receiving a retirement        594          

allowance or benefit under an optional plan elected under this     596          

section or section 742.3715 of the Revised Code based on an award  597          

made prior to July 24, 1986, and it is the case that, had the      598          

member who elected the optional plan elected instead to receive a  599          

retirement allowance payable throughout the member's life, the     600          

amount of that retirement allowance would be less than the amount  602          

specified in division (G)(2) of this section.  A person is not     603          

eligible to receive an additional benefit INCREASE under this      604          

section DIVISION if the person is receiving a pension or benefit   607          

in accordance with rules in force on April 1, 1947, that govern    608          

the granting of pensions and benefits and that provide an          609          

increase in the original pension or benefit from time to time      610          

pursuant to changes in the salaries of active members.                          

      (2)  In 1988, the amount used to determine eligibility       612          

under division (G)(1) of this section shall be eighteen thousand   613          

dollars.  Each year thereafter, the amount shall be the prior      614          

year's amount plus five hundred dollars.                           615          

      (3)  On or before the fifteenth day of April of each year,   617          

                                                          14     


                                                                 
the board shall determine the average percentage change in the     618          

consumer price index prepared by the United States bureau of       619          

labor statistics (U.S. city average for urban wage earners and     620          

clerical workers:  "all items 1982-84=100") for the twelve-month   622          

period prior to the first day of January over the next preceding   623          

twelve-calendar-month period, as reported by the bureau.  On a     624          

determination by the board that this change is an increase or      626          

that the change plus the accumulation described in THIS division   628          

(G)(3) of this section is an increase, the board shall increase    630          

all benefits payable under this section or section 742.3715 of     631          

the Revised Code to eligible persons by the actuarial equivalent   632          

of an amount determined by multiplying twelve thousand dollars by  634          

the percentage of the increase in the consumer price index, or     635          

that percentage plus the accumulation, except that the percentage  636          

shall not exceed three per cent and no benefit shall exceed the    637          

limit established by section 415 of the "Internal Revenue Code of  638          

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                639          

      Any percentage of change in the consumer price index in any  641          

year that is in excess of three per cent shall be accumulated and  642          

used to determine increases under this section in succeeding       644          

years.   Any percentage of change in the consumer price index      645          

accumulated by an eligible person prior to September 27, 1996,     647          

shall be used in determining any future increases under this       648          

section.  The first additional benefit INCREASE is payable to all  649          

eligible persons on July 1, 1988.  The additional benefit          650          

INCREASE is payable for the ensuing twelve-month period or until   652          

the next increase is granted under this section, whichever is      653          

later.                                                                          

      The date of the first additional benefit INCREASE payable    655          

under this section shall be the anniversary date for future        657          

additional benefits INCREASES.                                     658          

      Sec. 742.3715.  (A)  A member of the Ohio police and fire    668          

pension fund who retired under section 742.37 of the Revised Code  669          

before February 28, 1980, may elect to receive the actuarial       670          

                                                          15     


                                                                 
equivalent of the member's retirement allowance in a lesser        671          

amount payable for the remainder of the member's life and          672          

continuing after death to the member's spouse under one of the     674          

optional plans described under division (A)(1) or (2) of section   675          

742.3711 of the Revised Code, provided the amount payable under    676          

the optional plan elected is certified by the actuary engaged by   677          

the board of trustees of the Ohio police and fire pension fund to  679          

be the actuarial equivalent of the member's retirement allowance   680          

and is approved by the board FUND.  The election shall be made as  682          

follows:                                                                        

      (1)  Not later than ninety days after September 26, 1984,    684          

the member shall file with the board FUND a notice that the        686          

member wishes to be eligible to make the election authorized by    687          

this section.  The board FUND shall advise the member with         688          

respect to the choices available under the optional plans and      690          

have a determination made of the monthly benefits payable under    691          

the optional plan elected by the member for inclusion in the       692          

statement to be filed under division (A)(2) of this section.       693          

      (2)  Not later than one year after September 26, 1984, the   695          

member shall file a statement, on a form provided by the board     696          

FUND, that the member elects to receive benefits under the         698          

optional benefit plan specified in the statement.                  699          

      A request or form that is mailed to the board shall be       701          

considered to have been filed on its postmark date.                702          

      (B)  A member of the fund who retired under section 742.37   704          

of the Revised Code prior to September 16, 1998, was married at    708          

the time of retirement AND IS CURRENTLY MARRIED TO THE SAME                     

SPOUSE, and did not elect one of the optional plans under section  710          

742.3711 of the Revised Code may elect to receive the actuarial    713          

equivalent of the member's retirement allowance in a lesser        714          

amount payable for the remainder of the member's life and                       

continuing after death to the member's spouse under one of the     715          

optional plans described in division (A)(1) or (2) of section      717          

742.3711 of the Revised Code, provided the amount payable under    720          

                                                          16     


                                                                 
the optional plan elected is certified by the actuary engaged by   721          

the board FUND to be the actuarial equivalent of the member's      723          

retirement allowance and is approved by the board FUND.            724          

      Not later than thirty days after December 21, 1998, the      726          

board FUND shall provide to all members described in this          729          

division written notice of the election available under this       730          

division.  The notice shall state that a member's failure to       731          

elect an optional plan under this division will result in the      732          

member's spouse, at the time of the member's death, being          733          

eligible only for a benefit under division (D) of section 742.37   734          

of the Revised Code.                                               736          

      The election shall be made as follows:                       738          

      (1)  Not later than one hundred twenty days after December   740          

21, 1998, the member shall file with the board FUND a notice that  743          

the member wishes to make the election authorized by this          744          

section.  The board FUND shall advise the member with respect to   746          

the choices available under the optional plans and have a          747          

determination made of the monthly benefits payable under the       748          

optional plan elected by the member for inclusion in the           749          

statement to be filed under division (B)(2) of this section.       750          

      (2)  Not later than one year after December 21, 1998, the    753          

member shall file a statement, on a form provided by the board     755          

FUND, that the member elects to receive benefits under the         756          

optional plan specified in the statement.  A request or form that  757          

is mailed to the board FUND'S PRINCIPAL PLACE OF BUSINESS shall    758          

be considered to have been filed on its postmark date.  Benefits   759          

under the optional plan shall begin on the first day of the first  760          

month following the date the statement is filed with the board     761          

FUND.                                                                           

      (C)(1)  The death of the member's spouse shall cancel any    763          

plan elected pursuant to this section and return the member to     764          

the member's single lifetime benefit equivalent, as determined by  766          

the board FUND, to be effective the month following receipt by     767          

the board FUND of notice of the death.                             769          

                                                          17     


                                                                 
      (2)  On divorce, annulment, or marriage dissolution, a       771          

member receiving a retirement allowance under a plan that          772          

provides for continuation of all or part of the allowance after    773          

death for the lifetime of the member's surviving spouse may, with  775          

the written consent of the spouse or pursuant to an order of the   776          

court with jurisdiction over the termination of the marriage,      777          

elect to cancel the plan and receive the member's single lifetime  779          

benefit equivalent as determined by the board FUND.  The election  780          

shall be made on a form provided by the board FUND and shall be    781          

effective the month following its receipt by the board FUND.       782          

      (D)  If the member remarries after cancellation under        784          

division (C)(1) or (2) of this section of an optional plan, the    786          

member may elect not later than one year after the date of         787          

remarriage a new optional plan based on the actuarial equivalent   789          

of the member's single lifetime benefit as determined by the       790          

board FUND.  The plan and the member's lesser retirement           792          

allowance shall become effective on the date the election is made  793          

on a form approved by the board FUND.                              794          

      (E)  Any option elected and payments made under this         796          

section shall be in addition to any benefit payable under          797          

division (D) of section 742.37 of the Revised Code.                798          

      Sec. 742.3717.  (A)(1)  Except as provided in division       808          

(A)(2) of this section, as used in this section, "eligible         809          

retirant PERSON" means a person who meets all BOTH of the          810          

following conditions:                                                           

      (a)  The person is receiving an annual pension or benefit    812          

under division (A), (B), or (C) of section 742.37 or division      814          

(C)(2), (3), (4), or (5) of former section 742.37 of the Revised   815          

Code based on an award made prior to July 24, 1986.                816          

      (b)  The person has not elected under section 742.3711 of    818          

the Revised Code to receive a retirement allowance under an        819          

optional benefit plan.                                             820          

      (c)  The amount of the annual pension or benefit is less     822          

than the amount specified in division (B) of this section.         823          

                                                          18     


                                                                 
      (2)  A person is not an eligible retirant PERSON if the      825          

person is receiving a pension or benefit in accordance with rules  827          

in force on April 1, 1947, that govern the granting of pensions    828          

and benefits and that provide an increase in the original pension  829          

or benefit from time to time pursuant to changes in the salaries   830          

of active members.                                                 831          

      (B)  In 1988, the amount used to determine eligibility       833          

under division (A)(1)(c) of this section shall be eighteen         834          

thousand dollars.  Each year thereafter, the amount shall be the   835          

prior year's amount plus five hundred dollars.                     836          

      (C)(1)  On or before the fifteenth day of April of each      838          

year, the board of trustees of the Ohio police and fire pension    840          

fund shall determine the average percentage change in the                       

consumer price index prepared by the United States bureau of       841          

labor statistics (U.S. city average for urban wage earners and     842          

clerical workers:  "all items 1982-84=100") for the twelve-month   844          

period prior to the first day of January over the next preceding   845          

twelve-calendar-month period, as reported by the bureau.  Upon a   846          

determination by the board that this change is an increase or      849          

that the change plus the accumulation described in division        850          

(C)(B)(2) of this section is an increase, the board shall          852          

increase all benefits payable to eligible persons by an amount     854          

determined by multiplying twelve thousand dollars by the                        

percentage of the increase in the consumer price index, or that    855          

percentage plus the accumulation, except that the percentage       856          

shall not exceed three per cent and no benefit shall exceed the    857          

limit established by section 415 of the "Internal Revenue Code of  858          

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                859          

      (2)  Any percentage of change in the consumer price index    861          

in any year that is in excess of three per cent shall be           862          

accumulated and used to determine increases under this section in  864          

succeeding years.   Any percentage of change in the consumer       865          

price index accumulated by an eligible person prior to September   867          

27, 1996, shall be used in determining any future increases under  868          

                                                          19     


                                                                 
this section.  The first additional benefit INCREASE is payable    869          

to all eligible retirants PERSONS on July 1, 1988.  The            870          

additional benefit INCREASE is payable for the ensuing             872          

twelve-month period or until the next increase is granted under    873          

this section, whichever is later.                                               

      The date of the first additional benefit INCREASE payable    875          

under this section shall be the anniversary date for future        877          

additional benefits INCREASES.                                     878          

      Sec. 742.3718.  (A)  Except as otherwise provided in this    887          

division, each person who on September 9, 1988, is receiving a     889          

pension or benefit of less than five thousand dollars annually     891          

under division (A) or (B) of section 742.37 of the Revised Code    892          

on the basis of disability or service of twenty-five years or      893          

more, under division (C)(1) of that section, or under division     894          

(C)(2) or (5) of former section 742.37 of the Revised Code shall   895          

have the pension or benefit increased to five thousand dollars a   897          

year, effective July 1, 1988.  This division does not apply to     898          

any person receiving a pension or benefit based on funded          899          

volunteer or funded part-time service.                                          

      (B)  On and after July 1, 1988:                              901          

      (1)  The pension of each person receiving a pension or       903          

benefit under division (D) of section 742.37 of the Revised Code   904          

shall be increased to four hundred ten dollars a month.            905          

      (2)  The pension of each person receiving a pension or       907          

benefit under division (E) of section 742.37 of the Revised Code   908          

shall be increased to one hundred eighteen dollars a month.        909          

      (C)  Notwithstanding any average annual salary limitation    912          

in section 742.37 of the Revised Code, each person who on July 1,  915          

1999, is receiving an annual pension or benefit described in       916          

division (A), (B), or (C)(1) or (3) of that section of less than   919          

six thousand six hundred dollars shall have the pension increased  920          

to that amount, effective July 1, 1999.  The increase granted      922          

under this division shall be included in a person's base for the   924          

purpose of determining future increases under section 742.3716 of  925          

                                                          20     


                                                                 
the Revised Code.                                                  926          

      (D)(1)  This division applies to the following persons who   928          

are receiving a pension under division (D) of section 742.37 of    930          

the Revised Code:                                                  932          

      (a)  On July 1, 1999, the person is the surviving spouse of  936          

a deceased member of the fund and is not receiving a benefit       937          

under division (B) or (D) of section 742.63 of the Revised Code.   938          

      (b)  No later than one year after July 1, 1999, the person   941          

is the surviving spouse of a deceased member of the fund who was   943          

retired under section 742.37 of the Revised Code with an           944          

effective date of retirement before September 16, 1998.            945          

      (2)  The EXCEPT AS PROVIDED IN DIVISION (D)(2) OF THIS       947          

SECTION, THE monthly pension of each person WHO IS THE SURVIVING   948          

SPOUSE OF A DECEASED MEMBER OF THE FUND AND ON THE EFFECTIVE DATE  949          

OF THIS AMENDMENT IS RECEIVING A PENSION OF LESS THAN THE AMOUNT   950          

described in division (D)(1) of this section 742.37 OF THE         952          

REVISED CODE shall be increased as follows:                        953          

      (a)  For the period beginning July 1, 1999 ON THE FIRST DAY  956          

OF THE FIRST MONTH FOLLOWING THE EFFECTIVE DATE OF THIS            957          

AMENDMENT, and ending June 30, 2000, to five hundred fifty         959          

dollars;                                                                        

      (b)  For the period beginning July 1, 2000, and the first    962          

day of July of each year thereafter and continuing for the         964          

following twelve months, to an amount equal to the GREATER OF      965          

FIVE HUNDRED FIFTY DOLLARS OR THE monthly amount paid during the   966          

prior twelve-month period plus an amount determined by             968          

multiplying five hundred fifty dollars by the average percentage   969          

change in the consumer price index, not exceeding three per cent,  970          

as determined each year by the board of trustees of the Ohio       971          

police and fire pension fund under section 742.3716 of the         975          

Revised Code.                                                      976          

      (3)  If (2)  AN INCREASE UNDER DIVISION (D)(1) OF THIS       979          

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  983          

                                                          21     


                                                                 
benefit under division (B) or (D) of section 742.63 of the         985          

Revised Code UNTIL THE PERSON ceases to be eligible for a benefit  988          

under division (B) or (D) of section 742.63 of the Revised Code,   991          

the.  THE person's monthly pension shall be increased, effective   993          

the first day of the first month following the date on which the   994          

person ceases to be eligible for the benefit, to the amount it     995          

would be under division (D)(2)(1) of this section had the person   997          

never been eligible for a benefit under division (B) or (D) of     998          

section 742.63 of the Revised Code.                                999          

      (E)  The monthly pension of each person receiving a pension  1,002        

under division (E) of section 742.37 of the Revised Code shall be  1,004        

increased to one hundred fifty dollars effective July 1, 1999.     1,005        

      (F)  Effective July 1, 1999, the monthly pension of each     1,008        

person receiving a pension under division (F) of section 742.37    1,009        

of the Revised Code shall be increased as follows:                 1,012        

      (1)  If there are two dependent parents, to one hundred      1,014        

dollars;                                                                        

      (2)  If there is one dependent parent, to two hundred        1,016        

dollars.                                                                        

      Section 2.  That existing sections 742.37, 742.3711,         1,018        

742.3715, 742.3717, and 742.3718 of the Revised Code are hereby    1,021        

repealed.                                                                       

      Section 3.  Not later than the first day of the second       1,023        

month after this act's effective date, the Police and Fire         1,024        

Pension Fund shall make a one-time payment in accordance with      1,025        

this section.                                                      1,026        

      (A)  To each person who became a surviving spouse after      1,028        

December 21, 1998, and is eligible for the pension increase        1,029        

provided under Am. Sub. H.B. 194 of the 122nd General Assembly     1,030        

that took effect July 1, 1999, the payment shall be one hundred    1,031        

forty dollars for each month the person was eligible to receive a  1,032        

pension during the period beginning December 22, 1998, and ending  1,033        

June 30, 1999.                                                     1,034        

      (B)  To each person who is eligible to receive the pension   1,036        

                                                          22     


                                                                 
increase provided under division (D) of section 742.3718 of the    1,037        

Revised Code, as amended by this act, and is not eligible for the  1,038        

pension increase provided under Am. Sub. H.B. 194 of the 122nd     1,039        

General Assembly that took effect July 1, 1999, the payment shall  1,040        

be an amount equal to the difference between the amount the        1,041        

surviving spouse of a deceased member of the fund received under   1,042        

division (D) of section 742.37 of the Revised Code and the amount  1,043        

the surviving spouse would have received under section 742.3718    1,044        

of the Revised Code, as amended by this act, had this act gone     1,045        

into effect on July 1, 1999.