As Passed by the Senate                       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-SENATORS BLESSING-MUMPER-      19           

   DiDONATO-McLIN-JOHNSON-SPADA-NEIN-GARDNER-LATTA-OELSLAGER-      20           

       PRENTISS-ARMBRUSTER-CUPP-WATTS-WHITE-HAGAN-MALLORY          21           


_________________________________________________________________   23           

                          A   B I L L                                           

             To amend sections 742.37, 742.3711, 742.3715,         25           

                742.3717, and 742.3718 of the Revised Code to      28           

                increase benefits paid to certain surviving                     

                spouses of members of the Ohio Police and Fire     30           

                Pension Fund (OPFPF) and to eliminate the          31           

                eligibility limits for cost-of-living allowances   32           

                that apply to certain OPFPF members.               33           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        35           

      Section 1.  That sections 742.37, 742.3711, 742.3715,        37           

742.3717, and 742.3718 of the Revised Code be amended to read as   40           

follows:                                                                        

      Sec. 742.37.  The board of trustees of the Ohio police and   49           

fire pension fund shall adopt rules for the management of the      52           

                                                          2      


                                                                 
fund and for the disbursement of benefits and pensions as set      53           

forth in this section and section 742.39 of the Revised Code.      54           

Any payment of a benefit or pension under this section is subject  56           

to the provisions of section 742.461 of the Revised Code.          57           

Notwithstanding any other provision of this section, no pension    58           

or benefit paid or determined under division (B) or (C) of this    59           

section or section 742.39 of the Revised Code shall exceed the     61           

limit established by section 415 of the "Internal Revenue Code of  62           

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

      (A)  Persons who were receiving benefit or pension payments  64           

from a police relief and pension fund established under former     65           

section 741.32 of the Revised Code, or from a firemen's relief     66           

and pension fund established under former section 521.02 or        68           

741.02 of the Revised Code, at the time the assets of the fund     70           

were transferred to the Ohio police and fire pension fund, known   71           

at that time as the police and firemen's disability and pension    73           

fund, shall receive benefit and pension payments from the Ohio     74           

police and fire pension fund in the same amount and subject to     77           

the same conditions as such payments were being made from the      79           

former fund on the date of the transfer.                           80           

      (B)  A member of the fund who, pursuant to law, elected to   82           

receive benefits and pensions from a police relief and pension     83           

fund established under former section 741.32 of the Revised Code,  85           

or from a firemen's relief and pension fund established under      87           

former section 741.02 of the Revised Code, in accordance with the  88           

rules of the fund governing the granting of benefits or pensions   90           

therefrom in force on April 1, 1947, shall receive benefits and    91           

pensions from the Ohio police and fire pension fund in accordance  93           

with such rules; provided, that any member of the fund who is not  94           

receiving a benefit or pension from the fund on August 12, 1975,   95           

may, upon application for a benefit or pension to be received on   96           

or after August 12, 1975, elect to receive a benefit or pension    97           

in accordance with division (C) of this section.                   98           

      (C)  Members of the fund who have not elected to receive     100          

                                                          3      


                                                                 
benefits and pensions from a police relief and pension fund or a   101          

firemen's relief and pension fund in accordance with the rules of  103          

the fund in force on April 1, 1947, shall receive pensions and     105          

benefits in accordance with the following provisions:                           

      (1)  A member of the fund who has completed twenty-five      107          

years of active service in a police or fire department and has     108          

attained forty-eight years of age may, at the member's election,   110          

retire from the police or fire department, and upon notifying the  111          

board in writing of the election, shall receive an annual          112          

pension, payable in twelve monthly installments, in an amount      114          

equal to a percentage of the member's average annual salary.  The  115          

percentage shall be the sum of two and one-half per cent for each  117          

of the first twenty years the member was in the active service of  118          

the department, plus two per cent for each of the twenty-first to  120          

twenty-fifth years the member was in the active service of the     121          

department, plus one and one-half per cent for each year in        123          

excess of twenty-five years the member was in the active service   124          

of the department.  The annual pension shall not exceed            125          

seventy-two per cent of the member's average annual salary.        126          

      A member who completed twenty-five years of active service,  129          

has resigned or been discharged, and has left the sum deducted     131          

from the member's salary on deposit in the pension fund shall,     132          

upon attaining forty-eight years of age, be entitled to receive a  134          

normal service pension benefit computed and paid under division    135          

(C)(1) of this section.                                                         

      (2)  A member of the fund who has served fifteen or more     137          

years as an active member of a police or fire department and who   138          

voluntarily resigns or is discharged from the department for any   140          

reason other than dishonesty, cowardice, intemperate habits, or    141          

conviction of a felony, shall receive an annual pension, payable   142          

in twelve monthly installments, in an amount equal to one and      143          

one-half per cent of the member's average annual salary            144          

multiplied by the number of full years the member was in the       146          

active service of the department.  The pension payments shall not  147          

                                                          4      


                                                                 
commence until the member has attained the age of forty-eight      149          

years and until twenty-five years have elapsed from the date on    150          

which the member became a full-time regular police officer or      152          

firefighter in the department.                                     153          

      (3)  A member of the fund who has completed fifteen or more  155          

years of active service in a police or fire department and who     156          

has attained sixty-two years of age, may retire from the           157          

department and, upon notifying the board in writing of the         158          

election to retire, shall receive an annual pension, payable in    159          

twelve monthly installments, in an amount equal to a percentage    160          

of the member's average annual salary.  The percentage shall be    162          

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,      164          

plus two per cent for each of the twenty-first to twenty-fifth     166          

years the member was in the active service of the department,      168          

plus one and one-half per cent for each year in excess of          170          

twenty-five years the member was in the active service of the      172          

department.  The annual pension shall not exceed seventy-two per   174          

cent of the member's average annual salary.                        175          

      (4)  With the exception of those persons who may make        177          

application for benefits as provided in section 742.26 of the      179          

Revised Code, no person receiving a pension or other benefit       180          

under division (C) of this section on or after July 24, 1986,      181          

shall be entitled to apply for any new, changed, or different      182          

benefit.                                                                        

      If a member covered by division (C) of this section or       184          

section 742.38 of the Revised Code dies prior to the time the      186          

member has received a payment and leaves a surviving spouse or     188          

dependent child, the surviving spouse or dependent child shall     189          

receive a pension under division (D) or (E) of this section.       190          

      (D)(1)  Except as provided in division (D)(2) of this        193          

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

shall receive a monthly pension as follows:                        195          

      (a)  For the period beginning July 1, 1999, and ending June  199          

                                                          5      


                                                                 
30, 2000, five hundred fifty dollars;                              200          

      (b)  For the period beginning July 1, 2000, and the first    203          

day of July of each year thereafter and continuing for the         205          

following twelve months, an amount equal to the monthly amount     206          

paid during the prior twelve-month period plus an amount           207          

determined by multiplying five hundred fifty dollars by the        209          

average percentage change in the consumer price index, not         210          

exceeding three per cent, as determined each year by the board     211          

under section 742.3716 of the Revised Code.                        213          

      (2)  A surviving spouse of a deceased member of the fund     215          

shall receive a monthly pension of four hundred ten dollars if     217          

one of the following is the case:                                  218          

      (a)  At the time of death, the deceased member had been      221          

awarded a pension under this chapter based on age and service;     222          

      (b)  The THE surviving spouse is eligible for a benefit      225          

under section 742.3714 or division (B) or (D) of section 742.63    226          

of the Revised Code.  If the surviving spouse ceases to be         227          

eligible for a benefit under division (B) or (D) of section        228          

742.63 of the Revised Code, the pension shall be increased,        231          

effective the first day of the first month following the day on    232          

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

to the amount it would be under division (D)(1) of this section    233          

had the spouse never been eligible for a benefit under division    235          

(B) or (D) of section 742.63 of the Revised Code.                  238          

      (3)  A pension paid under this division shall continue       241          

during the natural life of the surviving spouse.  Benefits to a    243          

deceased member's surviving spouse that were terminated under a    245          

former version of this section that required termination due to    246          

remarriage and were not resumed prior to September 16, 1998,       248          

shall resume on the first day of the month immediately following   249          

receipt by the board of an application on a form provided by the   250          

board.                                                                          

      (E)  Each surviving child of a deceased member of the fund   253          

shall receive a monthly pension of one hundred fifty dollars       255          

                                                          6      


                                                                 
until the child attains the age of eighteen years, or marries,     257          

whichever event occurs first.  A pension under this division,      259          

however, shall continue to be payable to a child under age         260          

twenty-two who is a student in and attending an institution of     261          

learning or training pursuant to a program designed to complete    262          

in each school year the equivalent of at least two-thirds of the   263          

full-time curriculum requirements of the institution, as           264          

determined by the board.  If any surviving child, regardless of    267          

age at the time of the member's death, because of physical or      268          

mental disability, is totally dependent upon the deceased member   270          

for support at the time of death, the child shall receive a        271          

monthly pension under this division during the child's natural     274          

life or until the child has recovered from the disability.         275          

      (F)  If a deceased member of the fund leaves no surviving    277          

spouse or surviving children, but leaves two parents dependent     278          

upon the deceased member for support, each parent shall be paid a  280          

monthly pension of one hundred dollars.  If there is only one      281          

parent dependent upon the member for support, the parent shall be  283          

paid a monthly pension of two hundred dollars.  The pensions       285          

provided for in this division shall be paid during the natural                  

life of the surviving parents, or until dependency ceases, or      286          

until remarriage, whichever event occurs first.                    287          

      (G)  Subject to the provisions of section 742.461 of the     289          

Revised Code, a member of the fund who voluntarily resigns or is   291          

removed from active service in a police or fire department is      292          

entitled to receive an amount equal to the sums deducted from the  293          

member's salary and credited to the member's account in the fund,  294          

except that a member receiving a disability benefit or service     295          

pension is not entitled to receive any return of contributions to  296          

the fund.                                                                       

      (H)  On and after January 1, 1970, all pensions shall be     298          

increased in accordance with the following provisions:             299          

      (1)  A member of the fund who retired prior to January 1,    301          

1967, has attained age sixty-five on January 1, 1970, and was      302          

                                                          7      


                                                                 
receiving a pension on December 31, 1969, pursuant to division     303          

(B) or (C)(1) of this section or former division (C)(2), (3),      305          

(4), or (5) of this section, shall have the pension increased by   306          

ten per cent.                                                                   

      (2)  The monthly pension payable to eligible surviving       308          

spouses under division (D) of this section shall be increased by   309          

forty dollars for each surviving spouse receiving a pension on     310          

December 31, 1969.                                                 311          

      (3)  The monthly pension payable to each eligible child      313          

under division (E) of this section shall be increased by ten       314          

dollars for each child receiving a pension on December 31, 1969.   315          

      (4)  The monthly pension payable to each eligible dependent  317          

parent under division (F) of this section shall be increased by    318          

thirty dollars for each parent receiving a pension on December     319          

31, 1969.                                                          320          

      (5)  A member of the fund, including a survivor of a         322          

member, who is receiving a pension in accordance with the rules    323          

governing the granting of pensions and benefits in force on April  324          

1, 1947, that provide an increase in the original pension from     326          

time to time pursuant to changes in the salaries of active         327          

members, shall not be eligible for the benefits provided in this   328          

division.                                                          329          

      (I)  On and after January 1, 1977, a member of the fund who  331          

was receiving a pension or benefit on December 31, 1973, under     332          

division (A), (B), (C)(1), or former division (C)(2) or (7) of     334          

this section shall have the pension or benefit increased as        335          

follows:                                                                        

      (1)  If the member's annual pension or benefit is less than  337          

two thousand seven hundred dollars, it shall be increased to       339          

three thousand dollars.                                            340          

      (2)  If the member's annual pension or benefit is two        342          

thousand seven hundred dollars or more, it shall be increased by   344          

three hundred dollars.                                             345          

      The following shall not be eligible to receive increased     347          

                                                          8      


                                                                 
pensions or benefits as provided in this division:                 348          

      (a)  A member of the fund who is receiving a pension or      350          

benefit in accordance with the rules in force on April 1, 1947,    351          

governing the granting of pensions and benefits, which provide an  352          

increase in the original pension or benefit from time to time      353          

pursuant to changes in the salaries of active members;             354          

      (b)  A member of the fund who is receiving a pension or      356          

benefit under division (A) or (B) of this section, based on        357          

funded volunteer or funded part-time service, or off-duty          358          

disability, or partial on-duty disability, or early vested         359          

service;                                                           360          

      (c)  A member of the fund who is receiving a pension under   362          

division (C)(1) of this section, based on funded volunteer or      363          

funded part-time service.                                          364          

      (J)  On and after July 1, 1977, a member of the fund who     366          

was receiving an annual pension or benefit on December 31, 1973,   367          

pursuant to division (B) of this section, based upon partial       368          

disability, off-duty disability, or early vested service, or       369          

pursuant to former division (C)(3), (5), or (6) of this section,   370          

shall have such annual pension or benefit increased by three       371          

hundred dollars.                                                   372          

      The following are not eligible to receive the increase       374          

provided by this division:                                         375          

      (1)  A member of the fund who is receiving a pension or      377          

benefit in accordance with the rules in force on April 1, 1947,    378          

governing the granting of pensions and benefits, which provide an  379          

increase in the original pension or benefit from time to time      380          

pursuant to changes in the salaries of active members;             381          

      (2)  A member of the fund who is receiving a pension or      383          

benefit under division (B) or (C)(2) of this section or former     385          

division (C)(3), (5), or (6) of this section based on volunteer    386          

or part-time service.                                                           

      (K)(1)  Except as otherwise provided in this division,       388          

every person who on July 24, 1986, is receiving an age and         389          

                                                          9      


                                                                 
service or disability pension, allowance, or benefit pursuant to   390          

this chapter in an amount less than thirteen thousand dollars a    391          

year that is based upon an award made effective prior to February  392          

28, 1984, shall receive an increase of six hundred dollars a year  393          

or the amount necessary to increase the pension or benefit to      394          

four thousand two hundred dollars after all adjustments required   395          

by this section, whichever is greater.                             396          

      (2)  Division (K)(1) of this section does not apply to the   398          

following:                                                         399          

      (a)  A member of the fund who is receiving a pension or      401          

benefit in accordance with rules in force on April 1, 1947, that   402          

govern the granting of pensions and benefits and that provide an   403          

increase in the original pension or benefit from time to time      404          

pursuant to changes in the salaries of active members;             405          

      (b)  A member of the fund who is receiving a pension or      407          

benefit based on funded volunteer or funded part-time service.     408          

      (L)  On and after July 24, 1986:                             410          

      (1)  The pension of each person receiving a pension under    412          

division (D) of this section on July 24, 1986, shall be increased  413          

to three hundred ten dollars per month.                            414          

      (2)  The pension of each person receiving a pension under    416          

division (E) of this section on July 24, 1986, shall be increased  417          

to ninety-three dollars per month.                                 418          

      Sec. 742.3711.  (A)  On application for retirement as        427          

provided in section 742.37 of the Revised Code, a member of the    428          

fund may elect to receive a retirement allowance payable           429          

throughout the member's life, or may elect, on the application     431          

for retirement, to receive the actuarial equivalent of the         432          

member's retirement allowance in a lesser amount payable for life  434          

and continuing after death to a surviving designated beneficiary   435          

under one of the following optional plans, provided the amount     436          

payable to the beneficiary shall not exceed the amount payable to  437          

the retiring member of the fund, and is certified by the actuary   438          

engaged by the board of trustees of the Ohio police and fire       439          

                                                          10     


                                                                 
pension fund to be the actuarial equivalent of the member's        440          

retirement allowance and is approved by the board.                 441          

      (1)  Option 1.  The member's lesser retirement allowance     443          

shall be paid for life to the sole beneficiary designated at the   445          

time of the member's retirement.                                   446          

      (2)  Option 2.  One-half or some other portion of the        448          

member's lesser retirement allowance shall be paid for life to     450          

the sole beneficiary designated at the time of the member's        452          

retirement.                                                        453          

      (3)  Option 3.  Upon the member's death before the           455          

expiration of a certain period from the retirement date and        457          

elected by the member and approved by the retirement board, the    459          

member's lesser retirement allowance shall be continued for the    460          

remainder of that period to the beneficiary the member has         462          

nominated by written designation and filed with the retirement     464          

board.                                                                          

      Should the nominated beneficiary designated in writing       466          

become deceased prior to the expiration of the guarantee period,   467          

then for the purpose of completing payment for the remainder of    468          

the guarantee period, the present value of such payments shall be  469          

paid to the estate of the beneficiary last receiving.              470          

      (B)(1)  On or after February 28, 1980, the death of a        472          

spouse nominated as beneficiary or the death of any other          473          

nominated beneficiary following retirement shall cancel any        474          

optional plan of payment to provide continuing lifetime benefits   475          

to such nominated beneficiary and return the member of the fund    476          

to the member's single lifetime benefit equivalent, as determined  478          

by the board, to be effective the month following receipt by the   479          

board of notice of the death.                                      480          

      (2)  On divorce, annulment, or marriage dissolution, a       482          

member receiving a retirement allowance under a plan that          483          

provides for continuation of all or part of the allowance after    484          

death for the lifetime of the member's surviving spouse may, with  486          

the written consent of the spouse or pursuant to an order of the   487          

                                                          11     


                                                                 
court with jurisdiction over the termination of the marriage,      488          

elect to cancel the plan and receive the member's single lifetime  490          

benefit equivalent as determined by the board.  The election       491          

shall be made on a form provided by the board and shall be         492          

effective the month following its receipt by the board.            493          

      (C)  Following marriage or remarriage, a member of the fund  495          

may elect not later than one year after the date of marriage or    496          

remarriage a new optional plan of payment based on the actuarial   497          

equivalent of the member's single lifetime benefit as determined   499          

by the board.  The plan and the member's lesser retirement         500          

allowance shall become effective on the date the election is made  501          

on a form approved by the board.                                   502          

      (D)(1)  Unless one of the following occurs, an application   504          

for retirement by a married person shall be considered an          505          

election of a benefit under option 2 as provided for in division   506          

(A)(2) of this section under which one-half of the lesser          507          

retirement allowance payable during the life of the retirant will  508          

be paid after death to the retirant's spouse for life as sole      510          

beneficiary:                                                                    

      (a)  The retirant selects an optional plan under division    512          

(A) of this section providing for payment after death to the       514          

retirant's spouse for life as sole beneficiary of more than        515          

one-half of the lesser retirement allowance payable during the     516          

life of the retirant;                                              517          

      (b)  The retirant submits to the retirement board a written  519          

statement signed by the spouse attesting that the spouse consents  520          

to the retirant's election to receive a single lifetime            522          

retirement allowance or a payment under an optional benefit plan   523          

under which after the death of the retirant the surviving spouse   524          

will receive less than one-half of the lesser retirement           525          

allowance payable during the life of the retirant.                 526          

      (2)  An application for retirement shall include an          529          

explanation of all of the following:                               530          

      (a)  That, if the member is married, unless the spouse       533          

                                                          12     


                                                                 
consents to another plan of payment, the member's retirement       534          

allowance will be paid under "option 2" and consist of the         535          

actuarial equivalent of the member's retirement allowance in a     536          

lesser amount payable for life and one-half of the lesser          537          

allowance continuing after death to the surviving spouse for the                

life of the spouse;                                                538          

      (b)  A description of the alternative plans of payment       541          

available with the consent of the spouse;                                       

      (c)  That the spouse may consent to another plan of payment  544          

and the procedure for giving consent;                                           

      (d)  That consent is irrevocable once notice of consent is   546          

filed with the board.                                              547          

      Consent shall be valid only if it is signed, in writing,     550          

and witnessed by an employee of the board or a notary public.      551          

      (3)  If the retirant does not select an optional plan as     553          

described in division (D)(1)(a) of this section and the board      554          

does not receive the written statement provided for in division    555          

(D)(1)(b) of this section, it shall determine and pay the          557          

retirement allowance in accordance with division (A)(2) of this    558          

section, except that the board may provide by rule for waiver by   559          

the board of the statement and payment of the allowance other      560          

than in accordance with division (A)(2) of this section if the     561          

retirant is unable to obtain the statement due to absence or       562          

incapacity of the spouse or other cause specified by the board.    563          

      (E)  A member of the fund who has elected an optional plan   565          

under this section or section 742.3715 of the Revised Code may,    566          

with the consent of the designated beneficiary, cancel the         567          

optional plan and receive the retirement allowance payable         568          

throughout life the member would have received had the member not  570          

elected the optional plan, if the member makes a request to        571          

cancel the optional plan not later than one year after the later   573          

of September 9, 1988, or the date on which the member first        574          

receives a payment under this section or section 742.3715 of the   575          

Revised Code.  Cancellation of the optional plan shall be          576          

                                                          13     


                                                                 
effective the month after acceptance of the request by the         577          

trustees of the fund.  No payment or adjustment shall be made in   578          

the retirement allowance payable throughout the member's life to   579          

compensate for the lesser allowance the member received under the  580          

optional plan.                                                                  

      The request to cancel the optional plan shall be made on a   582          

form provided by the fund and shall be valid only if the           583          

completed form includes a signed statement of the designated       584          

beneficiary's understanding of and consent to the cancellation.    585          

The signature shall be verified by the trustees of the fund prior  586          

to their acceptance of the cancellation.                           587          

      (F)  Any option elected and payments made under this         589          

section shall be in addition to any benefit payable under          590          

divisions (D), (E), and (F) of section 742.37 of the Revised       591          

Code.                                                              592          

      (G)(1)  Except as otherwise provided in this division, a A   594          

person is eligible to receive an additional A benefit INCREASE     596          

under this division if the person is receiving a retirement        597          

allowance or benefit under an optional plan elected under this     599          

section or section 742.3715 of the Revised Code based on an award  600          

made prior to July 24, 1986, and it is the case that, had the      601          

member who elected the optional plan elected instead to receive a  602          

retirement allowance payable throughout the member's life, the     603          

amount of that retirement allowance would be less than the amount  605          

specified in division (G)(2) of this section.  A person is not     606          

eligible to receive an additional benefit INCREASE under this      607          

section DIVISION if the person is receiving a pension or benefit   610          

in accordance with rules in force on April 1, 1947, that govern    611          

the granting of pensions and benefits and that provide an          612          

increase in the original pension or benefit from time to time      613          

pursuant to changes in the salaries of active members.                          

      (2)  In 1988, the amount used to determine eligibility       615          

under division (G)(1) of this section shall be eighteen thousand   616          

dollars.  Each year thereafter, the amount shall be the prior      617          

                                                          14     


                                                                 
year's amount plus five hundred dollars.                           618          

      (3)  On or before the fifteenth day of April of each year,   620          

the board shall determine the average percentage change in the     621          

consumer price index prepared by the United States bureau of       622          

labor statistics (U.S. city average for urban wage earners and     623          

clerical workers:  "all items 1982-84=100") for the twelve-month   625          

period prior to the first day of January over the next preceding   626          

twelve-calendar-month period, as reported by the bureau.  On a     627          

determination by the board that this change is an increase or      629          

that the change plus the accumulation described in THIS division   631          

(G)(3) of this section is an increase, the board shall increase    633          

all benefits payable under this section or section 742.3715 of     634          

the Revised Code to eligible persons by the actuarial equivalent   635          

of an amount determined by multiplying twelve thousand dollars by  637          

the percentage of the increase in the consumer price index, or     638          

that percentage plus the accumulation, except that the percentage  639          

shall not exceed three per cent and no benefit shall exceed the    640          

limit established by section 415 of the "Internal Revenue Code of  641          

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                642          

      Any percentage of change in the consumer price index in any  644          

year that is in excess of three per cent shall be accumulated and  645          

used to determine increases under this section in succeeding       647          

years.   Any percentage of change in the consumer price index      648          

accumulated by an eligible person prior to September 27, 1996,     650          

shall be used in determining any future increases under this       651          

section.  The first additional benefit INCREASE is payable to all  652          

eligible persons on July 1, 1988.  The additional benefit          653          

INCREASE is payable for the ensuing twelve-month period or until   655          

the next increase is granted under this section, whichever is      656          

later.                                                                          

      The date of the first additional benefit INCREASE payable    658          

under this section shall be the anniversary date for future        660          

additional benefits INCREASES.                                     661          

      Sec. 742.3715.  (A)  A member of the Ohio police and fire    671          

                                                          15     


                                                                 
pension fund who retired under section 742.37 of the Revised Code  672          

before February 28, 1980, may elect to receive the actuarial       673          

equivalent of the member's retirement allowance in a lesser        674          

amount payable for the remainder of the member's life and          675          

continuing after death to the member's spouse under one of the     677          

optional plans described under division (A)(1) or (2) of section   678          

742.3711 of the Revised Code, provided the amount payable under    679          

the optional plan elected is certified by the actuary engaged by   680          

the board of trustees of the Ohio police and fire pension fund to  682          

be the actuarial equivalent of the member's retirement allowance   683          

and is approved by the board FUND.  The election shall be made as  685          

follows:                                                                        

      (1)  Not later than ninety days after September 26, 1984,    687          

the member shall file with the board FUND a notice that the        689          

member wishes to be eligible to make the election authorized by    690          

this section.  The board FUND shall advise the member with         691          

respect to the choices available under the optional plans and      693          

have a determination made of the monthly benefits payable under    694          

the optional plan elected by the member for inclusion in the       695          

statement to be filed under division (A)(2) of this section.       696          

      (2)  Not later than one year after September 26, 1984, the   698          

member shall file a statement, on a form provided by the board     699          

FUND, that the member elects to receive benefits under the         701          

optional benefit plan specified in the statement.                  702          

      A request or form that is mailed to the board shall be       704          

considered to have been filed on its postmark date.                705          

      (B)  A member of the fund who retired under section 742.37   707          

of the Revised Code prior to September 16, 1998, was married at    711          

the time of retirement AND IS CURRENTLY MARRIED TO THE SAME                     

SPOUSE, and did not elect one of the optional plans under section  713          

742.3711 of the Revised Code may elect to receive the actuarial    716          

equivalent of the member's retirement allowance in a lesser        717          

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

continuing after death to the member's spouse under one of the     718          

                                                          16     


                                                                 
optional plans described in division (A)(1) or (2) of section      720          

742.3711 of the Revised Code, provided the amount payable under    723          

the optional plan elected is certified by the actuary engaged by   724          

the board FUND to be the actuarial equivalent of the member's      726          

retirement allowance and is approved by the board FUND.            727          

      Not later than thirty days after December 21, 1998, the      729          

board FUND shall provide to all members described in this          732          

division written notice of the election available under this       733          

division.  The notice shall state that a member's failure to       734          

elect an optional plan under this division will result in the      735          

member's spouse, at the time of the member's death, being          736          

eligible only for a benefit under division (D) of section 742.37   737          

of the Revised Code.                                               739          

      The election shall be made as follows:                       741          

      (1)  Not later than one hundred twenty days after December   743          

21, 1998, the member shall file with the board FUND a notice that  746          

the member wishes to make the election authorized by this          747          

section.  The board FUND shall advise the member with respect to   749          

the choices available under the optional plans and have a          750          

determination made of the monthly benefits payable under the       751          

optional plan elected by the member for inclusion in the           752          

statement to be filed under division (B)(2) of this section.       753          

      (2)  Not later than one year after December 21, 1998, the    756          

member shall file a statement, on a form provided by the board     758          

FUND, that the member elects to receive benefits under the         759          

optional plan specified in the statement.  A request or form that  760          

is mailed to the board FUND'S PRINCIPAL PLACE OF BUSINESS shall    761          

be considered to have been filed on its postmark date.  Benefits   762          

under the optional plan shall begin on the first day of the first  763          

month following the date the statement is filed with the board     764          

FUND.                                                                           

      (C)(1)  The death of the member's spouse shall cancel any    766          

plan elected pursuant to this section and return the member to     767          

the member's single lifetime benefit equivalent, as determined by  769          

                                                          17     


                                                                 
the board FUND, to be effective the month following receipt by     770          

the board FUND of notice of the death.                             772          

      (2)  On divorce, annulment, or marriage dissolution, a       774          

member receiving a retirement allowance under a plan that          775          

provides for continuation of all or part of the allowance after    776          

death for the lifetime of the member's surviving spouse may, with  778          

the written consent of the spouse or pursuant to an order of the   779          

court with jurisdiction over the termination of the marriage,      780          

elect to cancel the plan and receive the member's single lifetime  782          

benefit equivalent as determined by the board FUND.  The election  783          

shall be made on a form provided by the board FUND and shall be    784          

effective the month following its receipt by the board FUND.       785          

      (D)  If the member remarries after cancellation under        787          

division (C)(1) or (2) of this section of an optional plan, the    789          

member may elect not later than one year after the date of         790          

remarriage a new optional plan based on the actuarial equivalent   792          

of the member's single lifetime benefit as determined by the       793          

board FUND.  The plan and the member's lesser retirement           795          

allowance shall become effective on the date the election is made  796          

on a form approved by the board FUND.                              797          

      (E)  Any option elected and payments made under this         799          

section shall be in addition to any benefit payable under          800          

division (D) of section 742.37 of the Revised Code.                801          

      Sec. 742.3717.  (A)(1)  Except as provided in division       811          

(A)(2) of this section, as used in this section, "eligible         812          

retirant PERSON" means a person who meets all BOTH of the          813          

following conditions:                                                           

      (a)  The person is receiving an annual pension or benefit    815          

under division (A), (B), or (C) of section 742.37 or division      817          

(C)(2), (3), (4), or (5) of former section 742.37 of the Revised   818          

Code based on an award made prior to July 24, 1986.                819          

      (b)  The person has not elected under section 742.3711 of    821          

the Revised Code to receive a retirement allowance under an        822          

optional benefit plan.                                             823          

                                                          18     


                                                                 
      (c)  The amount of the annual pension or benefit is less     825          

than the amount specified in division (B) of this section.         826          

      (2)  A person is not an eligible retirant PERSON if the      828          

person is receiving a pension or benefit in accordance with rules  830          

in force on April 1, 1947, that govern the granting of pensions    831          

and benefits and that provide an increase in the original pension  832          

or benefit from time to time pursuant to changes in the salaries   833          

of active members.                                                 834          

      (B)  In 1988, the amount used to determine eligibility       836          

under division (A)(1)(c) of this section shall be eighteen         837          

thousand dollars.  Each year thereafter, the amount shall be the   838          

prior year's amount plus five hundred dollars.                     839          

      (C)(1)  On or before the fifteenth day of April of each      841          

year, the board of trustees of the Ohio police and fire pension    843          

fund shall determine the average percentage change in the                       

consumer price index prepared by the United States bureau of       844          

labor statistics (U.S. city average for urban wage earners and     845          

clerical workers:  "all items 1982-84=100") for the twelve-month   847          

period prior to the first day of January over the next preceding   848          

twelve-calendar-month period, as reported by the bureau.  Upon a   849          

determination by the board that this change is an increase or      852          

that the change plus the accumulation described in division        853          

(C)(B)(2) of this section is an increase, the board shall          855          

increase all benefits payable to eligible persons by an amount     857          

determined by multiplying twelve thousand dollars by the                        

percentage of the increase in the consumer price index, or that    858          

percentage plus the accumulation, except that the percentage       859          

shall not exceed three per cent and no benefit shall exceed the    860          

limit established by section 415 of the "Internal Revenue Code of  861          

1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.                862          

      (2)  Any percentage of change in the consumer price index    864          

in any year that is in excess of three per cent shall be           865          

accumulated and used to determine increases under this section in  867          

succeeding years.   Any percentage of change in the consumer       868          

                                                          19     


                                                                 
price index accumulated by an eligible person prior to September   870          

27, 1996, shall be used in determining any future increases under  871          

this section.  The first additional benefit INCREASE is payable    872          

to all eligible retirants PERSONS on July 1, 1988.  The            873          

additional benefit INCREASE is payable for the ensuing             875          

twelve-month period or until the next increase is granted under    876          

this section, whichever is later.                                               

      The date of the first additional benefit INCREASE payable    878          

under this section shall be the anniversary date for future        880          

additional benefits INCREASES.                                     881          

      Sec. 742.3718.  (A)  Except as otherwise provided in this    890          

division, each person who on September 9, 1988, is receiving a     892          

pension or benefit of less than five thousand dollars annually     894          

under division (A) or (B) of section 742.37 of the Revised Code    895          

on the basis of disability or service of twenty-five years or      896          

more, under division (C)(1) of that section, or under division     897          

(C)(2) or (5) of former section 742.37 of the Revised Code shall   898          

have the pension or benefit increased to five thousand dollars a   900          

year, effective July 1, 1988.  This division does not apply to     901          

any person receiving a pension or benefit based on funded          902          

volunteer or funded part-time service.                                          

      (B)  On and after July 1, 1988:                              904          

      (1)  The pension of each person receiving a pension or       906          

benefit under division (D) of section 742.37 of the Revised Code   907          

shall be increased to four hundred ten dollars a month.            908          

      (2)  The pension of each person receiving a pension or       910          

benefit under division (E) of section 742.37 of the Revised Code   911          

shall be increased to one hundred eighteen dollars a month.        912          

      (C)  Notwithstanding any average annual salary limitation    915          

in section 742.37 of the Revised Code, each person who on July 1,  918          

1999, is receiving an annual pension or benefit described in       919          

division (A), (B), or (C)(1) or (3) of that section of less than   922          

six thousand six hundred dollars shall have the pension increased  923          

to that amount, effective July 1, 1999.  The increase granted      925          

                                                          20     


                                                                 
under this division shall be included in a person's base for the   927          

purpose of determining future increases under section 742.3716 of  928          

the Revised Code.                                                  929          

      (D)(1)  This division applies to the following persons who   931          

are receiving a pension under division (D) of section 742.37 of    933          

the Revised Code:                                                  935          

      (a)  On July 1, 1999, the person is the surviving spouse of  939          

a deceased member of the fund and is not receiving a benefit       940          

under division (B) or (D) of section 742.63 of the Revised Code.   941          

      (b)  No later than one year after July 1, 1999, the person   944          

is the surviving spouse of a deceased member of the fund who was   946          

retired under section 742.37 of the Revised Code with an           947          

effective date of retirement before September 16, 1998.            948          

      (2)  The EXCEPT AS PROVIDED IN DIVISION (D)(2) OF THIS       950          

SECTION, THE monthly pension of each person WHO IS THE SURVIVING   951          

SPOUSE OF A DECEASED MEMBER OF THE FUND AND ON THE EFFECTIVE DATE  952          

OF THIS AMENDMENT IS RECEIVING A PENSION OF LESS THAN THE AMOUNT   953          

described in division (D)(1) of this section 742.37 OF THE         955          

REVISED CODE shall be increased as follows:                        956          

      (a)  For the period beginning July 1, 1999 ON THE FIRST DAY  959          

OF THE FIRST MONTH FOLLOWING THE EFFECTIVE DATE OF THIS            960          

AMENDMENT, and ending June 30, 2000, to five hundred fifty         962          

dollars;                                                                        

      (b)  For the period beginning July 1, 2000, and the first    965          

day of July of each year thereafter and continuing for the         967          

following twelve months, to an amount equal to the GREATER OF      968          

FIVE HUNDRED FIFTY DOLLARS OR THE monthly amount paid during the   969          

prior twelve-month period plus an amount determined by             971          

multiplying five hundred fifty dollars by the average percentage   972          

change in the consumer price index, not exceeding three per cent,  973          

as determined each year by the board of trustees of the Ohio       974          

police and fire pension fund under section 742.3716 of the         978          

Revised Code.                                                      979          

      (3)  If (2)  AN INCREASE UNDER DIVISION (D)(1) OF THIS       982          

                                                          21     


                                                                 
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  986          

benefit under division (B) or (D) of section 742.63 of the         988          

Revised Code UNTIL THE PERSON ceases to be eligible for a benefit  991          

under division (B) or (D) of section 742.63 of the Revised Code,   994          

the.  THE person's monthly pension shall be increased, effective   996          

the first day of the first month following the date on which the   997          

person ceases to be eligible for the benefit, to the amount it     998          

would be under division (D)(2)(1) of this section had the person   1,000        

never been eligible for a benefit under division (B) or (D) of     1,001        

section 742.63 of the Revised Code.                                1,002        

      (E)  The monthly pension of each person receiving a pension  1,005        

under division (E) of section 742.37 of the Revised Code shall be  1,007        

increased to one hundred fifty dollars effective July 1, 1999.     1,008        

      (F)  Effective July 1, 1999, the monthly pension of each     1,011        

person receiving a pension under division (F) of section 742.37    1,012        

of the Revised Code shall be increased as follows:                 1,015        

      (1)  If there are two dependent parents, to one hundred      1,017        

dollars;                                                                        

      (2)  If there is one dependent parent, to two hundred        1,019        

dollars.                                                                        

      Section 2.  That existing sections 742.37, 742.3711,         1,021        

742.3715, 742.3717, and 742.3718 of the Revised Code are hereby    1,024        

repealed.                                                                       

      Section 3.  Not later than the first day of the second       1,026        

month after this act's effective date, the Police and Fire         1,027        

Pension Fund shall make a one-time payment in accordance with      1,028        

this section.                                                      1,029        

      (A)  To each person who became a surviving spouse after      1,031        

December 21, 1998, and is eligible for the pension increase        1,032        

provided under Am. Sub. H.B. 194 of the 122nd General Assembly     1,033        

that took effect July 1, 1999, the payment shall be one hundred    1,034        

forty dollars for each month the person was eligible to receive a  1,035        

pension during the period beginning December 22, 1998, and ending  1,036        

                                                          22     


                                                                 
June 30, 1999.                                                     1,037        

      (B)  To each person who is eligible to receive the pension   1,039        

increase provided under division (D) of section 742.3718 of the    1,040        

Revised Code, as amended by this act, and is not eligible for the  1,041        

pension increase provided under Am. Sub. H.B. 194 of the 122nd     1,042        

General Assembly that took effect July 1, 1999, the payment shall  1,043        

be an amount equal to the difference between the amount the        1,044        

surviving spouse of a deceased member of the fund received under   1,045        

division (D) of section 742.37 of the Revised Code and the amount  1,046        

the surviving spouse would have received under section 742.3718    1,047        

of the Revised Code, as amended by this act, had this act gone     1,048        

into effect on July 1, 1999.