As Passed by the Senate 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-SENATORS BLESSING-DRAKE- 12
JOHNSON-HERINGTON-MUMPER-PRENTISS-CARNES-ESPY-LATELL-WATTS- 13
SHOEMAKER-HORN-KEARNS-SCHAFRATH-GARDNER-DiDONATO-SPADA-HAGAN- 14
RAY-CUPP 15
_________________________________________________________________ 17
A B I L L
To amend sections 145.201, 145.33, 145.491, and 19
3309.312 and to repeal section 145.203 of the 20
Revised Code to eliminate a provision that 21
allowed Public Employees Retirement System (PERS)
members making contributions as elected officials 22
to elect to contribute an additional amount to 23
PERS on the basis of earnable salary as an
employee of a not-for-profit corporation formed 25
for the purpose of owning, managing, or operating
a professional sports organization; to clarify 26
that the limit prescribed in federal law for 27
purchases of certain types of service credit 28
applies to service credit purchased for service 29
as an elected official; to permit certain PERS
members with at least 25 years of law enforcement 30
service credit to retire with full benefits at 31
age 48; and to revise the law governing employee
and employer contribution rates for PERS law 32
enforcement.
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 34
Section 1. That sections 145.201, 145.33, 145.491, and 36
3309.312 of the Revised Code be amended to read as follows: 37
Sec. 145.201. (A) Any SUBJECT TO THE LIMIT DESCRIBED IN 46
DIVISION (C) OF THIS SECTION, ANY member who is or has been an 47
elected official of the state or any political subdivision 48
thereof or has been appointed by the governor with the advice and 49
consent of the senate to serve full-time as a member of a board, 50
commission, or other public body may at any time prior to 51
retirement purchase additional service credit in an amount not to 52
exceed thirty-five per cent of the service credit allowed the 53
member for the period of service as an elected or appointed 55
official subsequent to January 1, 1935, other than credit for 56
military service, part-time service, and service subject to the 57
tax on wages imposed by the "Federal Insurance Contributions
Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. 58
The additional service credit may be purchased by paying 61
into the employees' savings fund an amount computed by 62
multiplying by the employee contribution rate in effect at the 63
time of purchase the member's earnable salary for the period of 64
service upon which the purchased credit is based, by the number 65
of years or portions thereof of additional service credit to be 66
purchased, and by paying into the employers' accumulation fund an 67
amount equal to the full amount paid into the employees' savings 68
fund. If a member purchases less than the full amount of the 69
additional service credit to which the member is entitled, the 71
period of service upon which the purchase is computed shall be 72
the member's earliest period of such service. The member shall 74
receive full credit for such additional elective service in 75
computing an allowance or benefit under section 145.20, 145.33, 76
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code, 77
notwithstanding any other provision of this chapter. The payment 79
to the employees' savings fund and the employers' accumulation 80
fund for such additional elective service credit shall, in the 81
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event of death or withdrawal from service, be considered as 82
accumulated contributions of the member. 83
A member of a board, commission, or other public body shall 85
be considered to be serving full-time if full-time service is 86
required by law or if the director of administrative services 87
determines that the duties of the position require full-time 88
service. 89
(B) Notwithstanding division (A) of this section, a member 91
who purchased service credit under this section prior to January 92
1, 1980, on the basis of part-time service shall be permitted to 93
retain the credit and shall be given full credit for it in 94
computing an allowance or benefit under section 145.20, 145.33, 95
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code. 96
The public employees retirement board has no authority to cancel 97
or rescind such credit. 98
(C) A PURCHASE MADE UNDER THIS SECTION SHALL NOT EXCEED 102
THE LIMITS ESTABLISHED BY DIVISION (n) OF SECTION 415 OF THE 103
"INTERNAL REVENUE CODE OF 1986," 100 STAT. 2085, 26 U.S.C.A. 105
415(n), AS AMENDED.
Sec. 145.33. (A) Except as provided in division (B) of 114
this section, a member with at least five years of total service 115
credit who has attained age sixty, or who has thirty years of 117
total Ohio service credit, may apply for age and service
retirement, which shall consist of: 118
(1) An annuity having a reserve equal to the amount of the 120
member's accumulated contributions at that time; 121
(2) A pension equal to the annuity provided by division 123
(A)(1) of this section; 124
(3) An additional pension, if the member can qualify for 126
prior service, equal to forty dollars multiplied by the number of 127
years, and fraction thereof, of such prior and military service 128
credit; 129
(4) A basic annual pension equal to one hundred eighty 131
dollars if the member has ten or more years of total service 132
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credit as of October 1, 1956, except that the basic annual 133
pension shall not exceed the sum of the annual benefits provided 134
by divisions (A)(1), (2), and (3) of this section. The cost of 135
the basic annual pension shall be included in the deficiency 136
contribution provided by sections 145.48 and 145.50 of the 137
Revised Code. 138
(5) When a member retires on age and service retirement, 140
the member's total annual single lifetime allowance, including 142
the allowances provided in divisions (A)(1), (2), (3), and (4) of 143
this section, shall be not less than a base amount adjusted in 144
accordance with division (A)(5) of this section and determined by 146
multiplying the member's total service credit by the greater of 147
the following:
(a) Eighty-six dollars; 149
(b) Two and one-tenth per cent of the member's final 151
average salary for each of the first thirty years of service plus 153
two and one-half per cent of the member's final average salary 154
for each subsequent year of service. 155
The allowance shall be adjusted by the factors of attained 157
age or years of service to provide the greater amount as 158
determined by the following schedule: 159
Years of Percentage 161
Attained or Total Service of 162
Birthday Credit Base Amount 163
58 25 75 165
59 26 80 166
60 27 85 167
61 88 168
28 90 169
62 91 170
63 94 171
29 95 172
64 97 173
65 30 or more 100 174
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Members shall vest the right to a benefit in accordance 177
with the following schedule, based on the member's attained age 178
by September 1, 1976: 179
Percentage 181
Attained of 182
Birthday Base Amount 183
66 102 184
67 104 185
68 106 186
69 108 187
70 or more 110 188
(6) The total annual single lifetime allowance that a 191
member shall receive under division (A)(5) of this section shall 192
not exceed the lesser of one hundred per cent of the member's 194
final average salary or the limit established by section 415 of
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 195
415, as amended. 196
(B)(1) FOR THE PURPOSES OF DIVISIONS (B) TO (F) OF THIS 199
SECTION, "TOTAL SERVICE CREDIT AS A LAW ENFORCEMENT OFFICER"
INCLUDES CREDIT FOR MILITARY SERVICE TO THE EXTENT PERMITTED BY 200
DIVISION (F)(2) OF THIS SECTION. 201
(2) A member who MEETS THE CONDITIONS IN DIVISION 204
(B)(2)(a), (b), OR (c) OF THIS SECTION MAY APPLY FOR AN AGE AND 205
SERVICE RETIREMENT BENEFIT UNDER THIS DIVISION: 206
(a) EXCEPT AS PROVIDED IN DIVISION (B)(2)(b) OF THIS 209
SECTION, has at least twenty-five years of total service credit, 211
including credit for military service under division (C)(2) of 212
this section, while serving as a law enforcement officer and who 213
has attained age fifty-two may apply for an age and service 214
retirement benefit, which; 215
(b) HAS AT LEAST TWENTY-FIVE YEARS OF TOTAL SERVICE CREDIT 217
AS A LAW ENFORCEMENT OFFICER WHILE SERVING AS A SHERIFF, DEPUTY 218
SHERIFF, OR TOWNSHIP CONSTABLE OR POLICE OFFICER IN A TOWNSHIP 219
POLICE DEPARTMENT OR DISTRICT AND HAS ATTAINED AGE FORTY-EIGHT; 222
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(c) HAS AT LEAST FIFTEEN YEARS OF TOTAL SERVICE CREDIT AS 224
A LAW ENFORCEMENT OFFICER AND HAS ATTAINED AGE SIXTY-TWO. 225
(3) A BENEFIT PAID UNDER DIVISION (B) OF THIS SECTION 227
shall consist of an annual single lifetime allowance equal to the 228
sum of two and one-half per cent of the member's final average 229
salary multiplied by the first twenty years of the member's total 230
service plus two and one-tenth per cent of the member's final 232
average salary multiplied by the number of years of the member's 233
total service credit in excess of twenty years, except that no 234
allowance shall exceed the lesser of ninety per cent of the 235
member's final average salary or the limit established by section 236
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 237
U.S.C.A. 415, as amended.
(2) A member who has at least fifteen years of total 239
service credit, including credit for military service under 240
division (C)(2) of this section, while serving as a law 242
enforcement officer and has attained sixty-two years of age may
apply for an age and service retirement benefit, which shall 243
consist of an annual single lifetime allowance computed as 244
provided in division (B)(1) of this section. The benefit shall 245
not exceed the limit established by section 415 of the "Internal 246
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 247
amended. 248
(3)(C) A member with at least fifteen years of total 250
service credit, including credit for military service under 251
division (C)(2) of this section, while serving as a law 252
enforcement officer who voluntarily resigns or is discharged for 253
any reason except death, dishonesty, cowardice, intemperate 255
habits, or conviction of a felony may apply for an age and 256
service retirement benefit, which shall consist of an annual 257
single lifetime allowance equal to one and one-half per cent of 258
the member's final average salary multiplied by the number of 259
years of the member's total service credit. The benefit shall 260
not exceed the limit established by section 415 of the "Internal 261
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Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 262
amended. The allowance shall commence on the first day of the 263
calendar month following the month in which the application is 264
filed with the public employees retirement board on or after the 265
attainment by the applicant of age fifty-two. 266
(4)(D)(1) A member who has WITH at least twenty-five years 269
of total service credit, including credit for military service 270
under division (C)(2) of this section, while serving as a law 271
enforcement officer OTHER THAN AS A LAW ENFORCEMENT OFFICER 272
ELIGIBLE FOR A BENEFIT UNDER DIVISION (B)(2)(b) OF THIS SECTION 273
who voluntarily resigns or is discharged for any reason except 276
death, dishonesty, cowardice, intemperate habits, or conviction 277
of a felony, on or after the date of attaining forty-eight years 278
of age, but before the date of attaining fifty-two years of age, 280
may elect to receive a reduced benefit as determined by the
following schedule: 281
Attained Age Reduced Benefit 283
48 75% of the benefit payable under 285
division (B)(1)(3) of this 286
section
49 80% of the benefit payable under 287
division (B)(1)(3) of this 288
section
50 86% of the benefit payable under 289
division (B)(1)(3) of this 290
section
51 93% of the benefit payable under 291
division (B)(1)(3) of this 292
section
A member who has at least twenty-five years of law 295
enforcement service credit, upon attaining forty-eight, 296
forty-nine, fifty, or fifty-one years of age, may elect to retire 297
and receive a reduced benefit determined by the above schedule. 298
(2) If a member elects to receive a reduced benefit on or 300
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after the date of attaining AGE forty-eight years of age, but 302
before the date of attaining forty-nine years of age, the reduced 304
benefit is payable from the date the member attained forty-eight
years of age or from the date the member becomes eligible to 305
receive the reduced benefit, whichever is later. If a member 306
elects to receive a reduced benefit on or after the date of 307
attaining forty-nine years of age, but before the date of 309
attaining fifty years of age, the reduced benefit is payable from 310
the date the member attained forty-nine years of age or from the 311
date the member becomes eligible to receive the reduced benefit, 312
whichever is later. If a member elects to receive a reduced 313
benefit on or after the date of attaining fifty years of age, but 314
before the date of attaining fifty-one years of age, the reduced 315
benefit is payable from the date the member attained fifty years 316
of age or from the date the member becomes eligible to receive 317
the reduced benefit, whichever is later. If a member elects to
receive a reduced benefit on or after the date of attaining 319
fifty-one years of age, but before the date of attaining 320
fifty-two years of age, the reduced benefit is payable from the 321
LATER OF THE date the member attained fifty-one years of age or 323
from OF THE MEMBER'S MOST RECENT BIRTHDAY OR the date the member 325
becomes eligible to receive the reduced benefit, whichever is
later. 326
(3) Once a member elects to receive a reduced benefit 328
determined by the above schedule IN DIVISION (D)(1) OF THIS 329
SECTION and has received a payment, the member may not reelect to 331
change that election.
(4) If a member who has resigned or been discharged has 333
left on deposit the member's accumulated contributions in the 334
employees' savings fund and has not elected to receive a reduced 335
benefit determined by the above schedule IN DIVISION (D)(1) OF 336
THIS SECTION, upon attaining fifty-two years of age, the member 338
shall be entitled to receive a benefit computed and paid under 339
division (B)(1)(3) of this section. 340
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(C)(E) A BENEFIT PAID UNDER DIVISION (B), (C), OR (D) OF 343
THIS SECTION SHALL NOT EXCEED THE LESSER OF NINETY PER CENT OF 344
THE MEMBER'S FINAL AVERAGE SALARY OR THE LIMIT ESTABLISHED BY 345
SECTION 415 OF THE "INTERNAL REVENUE CODE OF 1986," 100 STAT. 346
2085, 26 U.S.C.A. 415, AS AMENDED.
(F)(1) A member with service credit as a law enforcement 348
officer and other service credit under this chapter may elect one 350
of the following: 351
(a) To have all the member's service credit under this 353
chapter, including credit for service as a law enforcement 355
officer, used in calculating a retirement allowance under 356
division (A) of this section if the member qualifies for an 357
allowance under that division; 358
(b) If the member qualifies for an allowance under 360
division (B), (C), OR (D) of this section, to have the member's 362
service credit as a law enforcement officer used in calculating a 363
benefit under that division and the member's credit for all 364
service other than law enforcement service under this chapter 365
used in calculating a benefit consisting of a single life annuity 366
having a reserve equal to the amount of the member's accumulated 367
contributions and an equal amount of the employer's 368
contributions.
(2) Notwithstanding sections 145.01 and 145.30 of the 370
Revised Code, no more than four years of military service credit 371
granted under section 145.30 of the Revised Code and five years 372
of military service credit purchased under section 145.301 or 373
145.302 of the Revised Code shall be used in calculating service 374
as a law enforcement officer or the total service credit of that 375
person.
(3) Only credit for the member's service as a law 377
enforcement officer or service credit obtained as a police 378
officer or state highway patrol trooper shall be used in 379
computing the benefits under division (B), (C), OR (D) of this 380
section for the following: 382
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(a) Any person who originally is commissioned and employed 384
as a deputy sheriff by the sheriff of any county, or who 385
originally is elected sheriff, on or after January 1, 1975; 386
(b) Any deputy sheriff who originally is employed as a 388
criminal bailiff or court constable on or after April 16, 1993; 389
(c) Any person who originally is appointed as a township 391
constable or police officer in a township police department or 392
district on or after January 1, 1981; 393
(d) Any person who originally is employed as a county 395
narcotics agent on or after September 26, 1984; 396
(e) Any person who originally is employed as an undercover 398
drug agent as defined in section 109.79 of the Revised Code, 399
department of public safety enforcement agent who prior to the 400
effective date of this amendment JUNE 30, 1999 was a liquor 401
control investigator, park officer, forest officer, wildlife 403
officer, state watercraft officer, park district police officer, 405
conservancy district officer, Ohio veterans' home police officer, 406
special police officer for a mental health institution, special 407
police officer for an institution for the mentally retarded and 409
developmentally disabled, or municipal police officer on or after 410
December 15, 1988;
(f) Any person who originally is employed as a state 412
university law enforcement officer on or after November 6, 1996; 415
(g) Any person who originally is employed as a Hamilton 417
county municipal court bailiff on or after November 6, 1996; 419
(h) Any person who is originally employed as a state 421
university law enforcement officer by the university of Akron on 422
or after September 16, 1998; 423
(i) Any person who originally is employed as a preserve 425
officer on or after March 18, 1999; 427
(j) Any person who originally is employed as a natural 429
resources law enforcement staff officer on or after March 18, 430
1999; 431
(k) Any person who is originally employed as a department 433
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of public safety enforcement agent on or after the effective date 434
of this amendment JUNE 30, 1999. 435
(D)(G) Retirement allowances determined under this section 437
shall be paid as provided in section 145.46 of the Revised Code. 438
(E)(H) For the purposes of this section, service prior to 440
the effective date of this amendment JUNE 30, 1999, as a food 443
stamp trafficking agent under former section 5502.14 of the 444
Revised Code shall be considered service as a law enforcement 445
officer. 446
Sec. 145.491. Notwithstanding any provision of sections 455
145.01 to 145.59 SECTION 145.47 of the Revised Code, the public 457
employees retirement system shall be authorized to calculate the 458
employee and employer contribution rates separately for those 459
PUBLIC employees contributing toward benefits under division (B), 460
(C), OR (D) of section 145.33 of the Revised Code, OTHER THAN 462
THOSE EMPLOYEES CONTRIBUTING TOWARD BENEFITS UNDER DIVISION 463
(B)(2)(b) OF THAT SECTION. EACH PUBLIC EMPLOYEE CONTRIBUTING 464
TOWARD BENEFITS UNDER DIVISION (B)(2)(b) OF SECTION 145.33 OF THE 465
REVISED CODE SHALL CONTRIBUTE TEN AND ONE-TENTH PER CENT OF THE 466
EMPLOYEE'S EARNABLE SALARY TO THE EMPLOYEES' SAVINGS FUND, 467
NOTWITHSTANDING SECTION 145.47 OF THE REVISED CODE. 468
NOTWITHSTANDING SECTION 145.48 OF THE REVISED CODE, THE 470
PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL BE AUTHORIZED TO 471
CALCULATE THE EMPLOYER CONTRIBUTION RATES SEPARATELY FOR THOSE 472
PUBLIC EMPLOYEES CONTRIBUTING TOWARD BENEFITS UNDER DIVISION (B), 473
(C), OR (D) OF SECTION 145.33 OF THE REVISED CODE, EXCEPT THAT 474
THE EMPLOYER CONTRIBUTION RATE SHALL NOT EXCEED EIGHTEEN AND 475
ONE-TENTH PER CENT OF THE EARNABLE SALARIES OF THOSE EMPLOYEES. 476
Sec. 3309.312. (A) Not later than ninety days after the 486
effective date of this section SEPTEMBER 16, 1998, a member who, 488
on the effective date of this section SEPTEMBER 16, 1998, is 490
employed full-time pursuant to section 3345.04 of the Revised 491
Code by the university of Akron as a state university law 492
enforcement officer may elect to transfer to the public employees 494
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retirement system in accordance with this section. An election 495
shall be made by giving notice to the school employees retirement 496
system on a form provided by the school employees retirement 497
board and shall be irrevocable. 498
(B) When a member makes the election described in this 502
section, the school employees retirement system shall notify the 503
public employees retirement system. The school employees 504
retirement system shall transfer all of the member's service 505
credit to the public employees retirement system and shall 506
certify to the public employees retirement system a copy of the 507
member's records of service and contributions. For each year or 508
portion of a year of credit, the school employees retirement 509
system shall transfer to the public employees retirement system 510
all of the following: 511
(1) An amount equal to the accumulated contributions 513
standing to the member's credit; 514
(2) An amount equal to the total employer contributions 516
paid on behalf of the member; 517
(3) Any amount paid by the member or employer to the 519
school employees retirement system for the purchase of service 520
credit. 521
At the request of the public employees retirement system, 523
the employer of a member who makes an election under this section 525
shall certify to the public employees retirement system the 526
member's salary.
(C) A member who elects to transfer to the public 528
employees retirement system under this section shall make 529
contributions and receive benefits under IN ACCORDANCE WITH 530
divisions (B) and (C) TO (G) of section 145.33 of the Revised 531
Code.
(D) A member who fails to make an election in accordance 534
with this section shall remain a member of the school employees 535
retirement system.
Section 2. That existing sections 145.201, 145.33, 537
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145.491, and 3309.312 and section 145.203 of the Revised Code are 539
hereby repealed.
Section 3. The repeal of section 145.203 of the Revised 541
Code by this act shall not affect any contributions made or 542
service credit earned under that section prior to the effective 543
date of this act.
Section 4. Sections 145.33, 145.491, and 3309.312 of the 545
Revised Code, as amended by this act, shall take effect January 546
1, 2001.