As Reported by House Health, Retirement, and Aging Committee 1
123rd General Assembly 4
Regular Session Sub. H. B. No. 416 5
1999-2000 6
REPRESENTATIVES FORD-BARRETT-BOYD-BRITTON-EVANS-HARTNETT- 8
NETZLEY-OPFER-PATTON-SYKES-VAN VYVEN-SCHURING-OGG-OLMAN- 9
TERWILLEGER-SMITH 10
_________________________________________________________________ 11
A B I L L
To amend section 145.201 and to repeal section 13
145.203 of the Revised Code to eliminate a 14
provision that allowed Public Employees
Retirement System (PERS) members making 15
contributions as elected officials to elect to
contribute an additional amount to PERS on the 16
basis of earnable salary as an employee of a
not-for-profit corporation formed for the purpose 18
of owning, managing, or operating a professional
sports organization and to clarify that the limit 20
prescribed in federal law for purchases of
certain types of service credit applies to 21
service credit purchased for service as an 22
elected official.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 145.201 of the Revised Code be 27
amended to read as follows:
Sec. 145.201. (A) Any SUBJECT TO THE LIMIT DESCRIBED IN 36
DIVISION (C) OF THIS SECTION, ANY member who is or has been an 37
elected official of the state or any political subdivision 38
thereof or has been appointed by the governor with the advice and 39
consent of the senate to serve full-time as a member of a board, 40
commission, or other public body may at any time prior to 41
retirement purchase additional service credit in an amount not to 42
2
exceed thirty-five per cent of the service credit allowed the 43
member for the period of service as an elected or appointed 45
official subsequent to January 1, 1935, other than credit for 46
military service, part-time service, and service subject to the 47
tax on wages imposed by the "Federal Insurance Contributions
Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 48
The additional service credit may be purchased by paying 51
into the employees' savings fund an amount computed by 52
multiplying by the employee contribution rate in effect at the 53
time of purchase the member's earnable salary for the period of 54
service upon which the purchased credit is based, by the number 55
of years or portions thereof of additional service credit to be 56
purchased, and by paying into the employers' accumulation fund an 57
amount equal to the full amount paid into the employees' savings 58
fund. If a member purchases less than the full amount of the 59
additional service credit to which the member is entitled, the 61
period of service upon which the purchase is computed shall be 62
the member's earliest period of such service. The member shall 64
receive full credit for such additional elective service in 65
computing an allowance or benefit under section 145.20, 145.33, 66
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code, 67
notwithstanding any other provision of this chapter. The payment 69
to the employees' savings fund and the employers' accumulation 70
fund for such additional elective service credit shall, in the 71
event of death or withdrawal from service, be considered as 72
accumulated contributions of the member. 73
A member of a board, commission, or other public body shall 75
be considered to be serving full-time if full-time service is 76
required by law or if the director of administrative services 77
determines that the duties of the position require full-time 78
service. 79
(B) Notwithstanding division (A) of this section, a member 81
who purchased service credit under this section prior to January 82
1, 1980, on the basis of part-time service shall be permitted to 83
3
retain the credit and shall be given full credit for it in 84
computing an allowance or benefit under section 145.20, 145.33, 85
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code. 86
The public employees retirement board has no authority to cancel 87
or rescind such credit. 88
(C) A PURCHASE MADE UNDER THIS SECTION SHALL NOT EXCEED 92
THE LIMITS ESTABLISHED BY DIVISION (n) OF SECTION 415 OF THE 93
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 95
415(n), AS AMENDED.
Section 2. That existing section 145.201 and section 97
145.203 of the Revised Code are hereby repealed. 98
Section 3. The repeal of section 145.203 of the Revised 100
Code by this act shall not affect any contributions made or 101
service credit earned under that section prior to the effective 102
date of this act.