As Passed by the House 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-HEALY-JONES-GARDNER-WILLIAMS-FLANNERY-CORBIN- 10
FERDERBER-SCHULER-SULZER-DISTEL-ALLEN-VERICH-WILSON-BUEHRER- 11
REDFERN-HOLLISTER-HOOPS-BARNES 12
_________________________________________________________________ 13
A B I L L
To amend section 145.201 and to repeal section 15
145.203 of the Revised Code to eliminate a 16
provision that allowed Public Employees
Retirement System (PERS) members making 17
contributions as elected officials to elect to
contribute an additional amount to PERS on the 18
basis of earnable salary as an employee of a
not-for-profit corporation formed for the purpose 20
of owning, managing, or operating a professional
sports organization and to clarify that the limit 22
prescribed in federal law for purchases of
certain types of service credit applies to 23
service credit purchased for service as an 24
elected official.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That section 145.201 of the Revised Code be 29
amended to read as follows:
Sec. 145.201. (A) Any SUBJECT TO THE LIMIT DESCRIBED IN 38
DIVISION (C) OF THIS SECTION, ANY member who is or has been an 39
elected official of the state or any political subdivision 40
thereof or has been appointed by the governor with the advice and 41
consent of the senate to serve full-time as a member of a board, 42
2
commission, or other public body may at any time prior to 43
retirement purchase additional service credit in an amount not to 44
exceed thirty-five per cent of the service credit allowed the 45
member for the period of service as an elected or appointed 47
official subsequent to January 1, 1935, other than credit for 48
military service, part-time service, and service subject to the 49
tax on wages imposed by the "Federal Insurance Contributions
Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 50
The additional service credit may be purchased by paying 53
into the employees' savings fund an amount computed by 54
multiplying by the employee contribution rate in effect at the 55
time of purchase the member's earnable salary for the period of 56
service upon which the purchased credit is based, by the number 57
of years or portions thereof of additional service credit to be 58
purchased, and by paying into the employers' accumulation fund an 59
amount equal to the full amount paid into the employees' savings 60
fund. If a member purchases less than the full amount of the 61
additional service credit to which the member is entitled, the 63
period of service upon which the purchase is computed shall be 64
the member's earliest period of such service. The member shall 66
receive full credit for such additional elective service in 67
computing an allowance or benefit under section 145.20, 145.33, 68
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code, 69
notwithstanding any other provision of this chapter. The payment 71
to the employees' savings fund and the employers' accumulation 72
fund for such additional elective service credit shall, in the 73
event of death or withdrawal from service, be considered as 74
accumulated contributions of the member. 75
A member of a board, commission, or other public body shall 77
be considered to be serving full-time if full-time service is 78
required by law or if the director of administrative services 79
determines that the duties of the position require full-time 80
service. 81
(B) Notwithstanding division (A) of this section, a member 83
3
who purchased service credit under this section prior to January 84
1, 1980, on the basis of part-time service shall be permitted to 85
retain the credit and shall be given full credit for it in 86
computing an allowance or benefit under section 145.20, 145.33, 87
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code. 88
The public employees retirement board has no authority to cancel 89
or rescind such credit. 90
(C) A PURCHASE MADE UNDER THIS SECTION SHALL NOT EXCEED 94
THE LIMITS ESTABLISHED BY DIVISION (n) OF SECTION 415 OF THE 95
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 97
415(n), AS AMENDED.
Section 2. That existing section 145.201 and section 99
145.203 of the Revised Code are hereby repealed. 100
Section 3. The repeal of section 145.203 of the Revised 102
Code by this act shall not affect any contributions made or 103
service credit earned under that section prior to the effective 104
date of this act.