As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 144 5
1999-2000 6
SENATOR JOHNSON 8
_________________________________________________________________ 10
A B I L L
To amend sections 145.01, 145.23, 145.31, 145.37, 12
145.38, 145.40, 145.43, 3307.41, and 3309.35 and 13
to enact sections 145.401, 145.471, 145.472, and 14
145.473 of the Revised Code to require the Public 15
Employees Retirement System to credit interest on 16
a member's contributions and, under certain
conditions, to pay an amount of employer 17
contributions on the death of a member or 18
withdrawal of a member's contributions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That sections 145.01, 145.23, 145.31, 145.37, 22
145.38, 145.40, 145.43, 3307.41, and 3309.35 be amended and 23
sections 145.401, 145.471, 145.472, and 145.473 of the Revised 24
Code be enacted to read as follows:
Sec. 145.01. As used in this chapter: 33
(A) "Public employee" means: 35
(1) Any person holding an office, not elective, under the 37
state or any county, township, municipal corporation, park 38
district, conservancy district, sanitary district, health 39
district, metropolitan housing authority, state retirement board, 40
Ohio historical society, public library, county law library,
union cemetery, joint hospital, institutional commissary, state 41
university, or board, bureau, commission, council, committee, 42
authority, or administrative body as the same are, or have been, 43
created by action of the general assembly or by the legislative 44
authority of any of the units of local government named in 45
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division (A)(1) of this section, or employed and paid in whole or 46
in part by the state or any of the authorities named in division 47
(A)(1) of this section in any capacity not covered by section 49
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.
(2) A person who is a member of the public employees 51
retirement system and who continues to perform the same or 53
similar duties under the direction of a contractor who has 54
contracted to take over what before the date of the contract was 55
a publicly operated function. The governmental unit with which
the contract has been made shall be deemed the employer for the 56
purposes of administering this chapter. 57
(3) Any person who is an employee of a public employer, 59
notwithstanding that the person's compensation for that 60
employment is derived from funds of a person or entity other than 61
the employer. Credit for such service shall be included as total 62
service credit, provided that the employee makes the payments 63
required by this chapter, and the employer makes the payments
required by sections 145.48 and 145.51 of the Revised Code. 64
In all cases of doubt, the public employees retirement 66
board shall determine whether any person is a public employee, 67
and its decision is final.
(B) "Member" means any public employee, other than a 69
public employee excluded or exempted from membership in the 70
retirement system by section 145.03, 145.031, 145.032, 145.033, 71
145.034, 145.035, or 145.38 of the Revised Code. "Member" 72
includes a PERS retirant who becomes a member under division
(C)(2) of section 145.38 of the Revised Code. "Member" also 73
includes a disability benefit recipient. 74
(C) "Head of the department" means the elective or 76
appointive head of the several executive, judicial, and 77
administrative departments, institutions, boards, and commissions 78
of the state and local government as the same are created and 79
defined by the laws of this state or, in case of a charter
government, by that charter. 80
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(D) "Employer" or "public employer" means the state or any 82
county, township, municipal corporation, park district, 83
conservancy district, sanitary district, health district, 84
metropolitan housing authority, state retirement board, Ohio
historical society, public library, county law library, union 85
cemetery, joint hospital, institutional commissary, state medical 86
college, state university, or board, bureau, commission, council, 87
committee, authority, or administrative body as the same are, or 88
have been, created by action of the general assembly or by the 89
legislative authority of any of the units of local government
named in this division not covered by section 3307.01 or 3309.01 90
of the Revised Code. In addition, "employer" means the employer 91
of any public employee.
(E) "Prior service" means all service as a public employee 93
rendered before January 1, 1935, and all service as an employee 94
of any employer who comes within the state teachers retirement 95
system or of the school employees retirement system or of any 96
other retirement system established under the laws of this state 97
rendered prior to January 1, 1935, provided that if the employee
claiming the service was employed in any capacity covered by that 98
other system after that other system was established, credit for 99
the service may be allowed by the public employees retirement 100
system only when the employee has made payment, to be computed on 101
the salary earned from the date of appointment to the date 102
membership was established in the public employees retirement
system, at the rate in effect at the time of payment, and the 103
employer has made payment of the corresponding full liability as 104
provided by section 145.44 of the Revised Code. "Prior service" 105
also means all service credited for active duty with the armed 106
forces of the United States as provided in section 145.30 of the 107
Revised Code.
If an employee who has been granted prior service credit by 109
the public employees retirement system for service rendered prior 110
to January 1, 1935, as an employee of a board of education 111
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establishes, before retirement, one year or more of contributing 112
service in the state teachers retirement system or school 113
employees retirement system, then the prior service ceases to be
the liability of this system. 114
If the board determines that a position of any member in 116
any calendar year prior to January 1, 1935, was a part-time 117
position, the board shall determine what fractional part of a 118
year's credit shall be allowed by the following formula: 119
(1) When the member has been either elected or appointed 121
to an office the term of which was two or more years and for 122
which an annual salary is established, the fractional part of the 123
year's credit shall be computed as follows: 124
First, when the member's annual salary is one thousand 126
dollars or less, the service credit for each such calendar year 127
shall be forty per cent of a year.
Second, for each full one hundred dollars of annual salary 129
above one thousand dollars, the member's service credit for each 130
such calendar year shall be increased by two and one-half per 131
cent.
(2) When the member is paid on a per diem basis, the 133
service credit for any single year of the service shall be 134
determined by using the number of days of service for which the 135
compensation was received in any such year as a numerator and 136
using two hundred fifty days as a denominator.
(3) When the member is paid on an hourly basis, the 138
service credit for any single year of the service shall be 139
determined by using the number of hours of service for which the 140
compensation was received in any such year as a numerator and 141
using two thousand hours as a denominator.
(F) "Contributor" means any person who has an account in 143
the employees' savings fund created by section 145.23 of the 144
Revised Code.
(G) "Beneficiary" or "beneficiaries" means the estate or a 146
person or persons who, as the result of the death of a member, 147
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contributor, or retirant, qualify for or are receiving some right 148
or benefit under this chapter.
(H)(1) "Total service credit," except as provided in 150
section 145.37 of the Revised Code, means all service credited to 151
a member of the retirement system since last becoming a member, 152
including restored service credit as provided by section 145.31 153
of the Revised Code; credit purchased under sections 145.293 and 154
145.299 of the Revised Code; all the member's prior service
credit; all the member's military service credit computed as 155
provided in this chapter; all service credit established pursuant 156
to section 145.297 of the Revised Code; and any other service 157
credited under this chapter. In addition, "total service credit" 158
includes any period, not in excess of three years, during which a 159
member was out of service and receiving benefits under Chapters
4121. and 4123. of the Revised Code. For the exclusive purpose 160
of satisfying the service credit requirement and of determining 161
eligibility for benefits under sections 145.32, 145.33, 145.331, 162
145.35, 145.36, and 145.361 of the Revised Code, "five or more 163
years of total service credit" means sixty or more calendar 164
months of contributing service in this system.
(2) "One and one-half years of contributing service 166
credit," as used in division (B) of section 145.45 of the Revised 167
Code, also means eighteen or more calendar months of employment 168
by a municipal corporation that formerly operated its own 169
retirement plan for its employees or a part of its employees, 170
provided that all employees of that municipal retirement plan who 171
have eighteen or more months of such employment, upon 172
establishing membership in the public employees retirement 173
system, shall make a payment of the contributions they would have 174
paid had they been members of this system for the eighteen months 175
of employment preceding the date membership was established. 176
When that payment has been made by all such employee members, a 178
corresponding payment shall be paid into the employers' 179
accumulation fund by that municipal corporation as the employer 180
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of the employees. 181
(3) Where a member also is a member of the state teachers 183
retirement system or the school employees retirement system, or 184
both, except in cases of retirement on a combined basis pursuant 185
to section 145.37 of the Revised Code, service credit for any 186
period shall be credited on the basis of the ratio that
contributions to the public employees retirement system bear to 188
total contributions in all state retirement systems. 189
(4) Not more than one year of credit may be given for any 191
period of twelve months. 192
(5) "Ohio service credit" means credit for service that 194
was rendered to the state or any of its political subdivisions or 195
any employer.
(I) "Regular or current interest" means interest at any 197
rates for the respective funds and accounts as the public 198
employees retirement board may determine from time to time, 199
except as follows:
(1) Subsequent to December 31, 1958, the retirement board 201
shall discontinue the annual crediting of current interest to the 203
individual accounts of contributors. The noncrediting of current 204
interest shall not affect the rate of interest at retirement 205
guaranteed under division (I) of this section. 206
(2) The rate of interest credited on a contributor's 208
contributions at retirement shall be four per cent per annum, 209
compounded annually, to and including December 31, 1955; three 210
per cent per annum, compounded annually, from January 1, 1956, to 211
and including December 31, 1963; three and one-quarter per cent 212
per annum, compounded annually, from January 1, 1964, to and 213
including December 31, 1969; and thereafter four per cent per
annum, compounded annually. 214
In determining the reserve value for the purpose of 216
computing the amount of the contributor's annuity, the rate of 217
interest used in the annuity values shall be four per cent per 218
annum, compounded annually, for contributors retiring before 219
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October 1, 1956, and after December 31, 1969; three per cent per 220
annum, compounded annually, for contributors retiring between 222
October 1, 1956, and December 31, 1963; and three and one-quarter 223
per cent per annum, compounded annually, for contributors 224
retiring from January 1, 1964, to December 31, 1969. Interest on 225
contributions from contributors within any one calendar year 226
shall begin on the first day of the calendar year next following 227
and shall be computed at the end of each calendar year, except in 228
the case of a contributor who retires before the end of the year. 229
(J) "Accumulated contributions" means the sum of all 231
amounts credited to a contributor's individual account in the 232
employees' savings fund together with any current interest 233
thereon, but does not include the interest adjustment at 234
retirement CREDITED TO THE CONTRIBUTOR'S ACCOUNT UNDER SECTION 235
145.471 OR 145.472 OF THE REVISED CODE. 236
(K)(1) "Final average salary" means the quotient obtained 238
by dividing by three the sum of the three full calendar years of 239
contributing service in which the member's earnable salary was 240
highest, except that if the member has a partial year of 241
contributing service in the year the member's employment 242
terminates and the member's earnable salary for the partial year 243
is higher than for any comparable period in the three years, the 244
member's earnable salary for the partial year shall be 245
substituted for the member's earnable salary for the comparable 246
period during the three years in which the member's earnable 247
salary was lowest.
(2) If a member has less than three years of contributing 249
service, the member's final average salary shall be the member's 250
total earnable salary divided by the total number of years, 251
including any fraction of a year, of the member's contributing 252
service.
(3) For the purpose of calculating benefits payable to a 254
member qualifying for service credit under division (Z) of this 255
section, "final average salary" means the total earnable salary 256
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on which contributions were made divided by the total number of 257
years during which contributions were made, including any 258
fraction of a year. If contributions were made for less than 259
twelve months, "final average salary" means the member's total 260
earnable salary. 261
(L) "Annuity" means payments for life derived from 263
contributions made by a contributor and paid from the annuity and 264
pension reserve fund as provided in this chapter. All annuities 265
shall be paid in twelve equal monthly installments. 266
(M) "Annuity reserve" means the present value, computed 268
upon the basis of the mortality and other tables adopted by the 269
board, of all payments to be made on account of any annuity, or 270
benefit in lieu of any annuity, granted to a retirant as provided 271
in this chapter.
(N)(1) "Disability retirement" means retirement as 273
provided in section 145.36 of the Revised Code. 274
(2) "Disability allowance" means an allowance paid on 276
account of disability under section 145.361 of the Revised Code. 277
(3) "Disability benefit" means a benefit paid as 279
disability retirement under section 145.36 of the Revised Code, 280
as a disability allowance under section 145.361 of the Revised 281
Code, or as a disability benefit under section 145.37 of the 282
Revised Code.
(4) "Disability benefit recipient" means a member who is 284
receiving a disability benefit. 285
(O) "Age and service retirement" means retirement as 287
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 288
145.46 of the Revised Code.
(P) "Pensions" means annual payments for life derived from 290
contributions made by the employer that at the time of retirement 291
are credited into the annuity and pension reserve fund from the 292
employers' accumulation fund and paid from the annuity and 293
pension reserve fund as provided in this chapter. All pensions 294
shall be paid in twelve equal monthly installments.
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(Q) "Retirement allowance" means the pension plus that 296
portion of the benefit derived from contributions made by the 297
member.
(R)(1) Except as otherwise provided in division (R) of 300
this section, "earnable salary" means all salary, wages, and 301
other earnings paid to a contributor by reason of employment in a 302
position covered by the retirement system. The salary, wages,
and other earnings shall be determined prior to determination of 303
the amount required to be contributed to the employees' savings 304
fund under section 145.47 of the Revised Code and without regard 305
to whether any of the salary, wages, or other earnings are 306
treated as deferred income for federal income tax purposes. 307
"Earnable salary" includes the following:
(a) Payments made by the employer in lieu of salary, 309
wages, or other earnings for sick leave, personal leave, or 310
vacation used by the contributor;
(b) Payments made by the employer for the conversion of 312
sick leave, personal leave, and vacation leave accrued, but not 313
used if the payment is made during the year in which the leave is 315
accrued, except that payments made pursuant to section 124.383 or 316
124.386 of the Revised Code are not earnable salary;
(c) Allowances paid by the employer for full maintenance, 318
consisting of housing, laundry, and meals, as certified to the 319
retirement board by the employer or the head of the department 320
that employs the contributor;
(d) Fees and commissions paid under section 507.09 of the 322
Revised Code;
(e) Payments that are made under a disability leave 324
program sponsored by the employer and for which the employer is 325
required by section 145.296 of the Revised Code to make periodic 326
employer and employee contributions;
(f) Amounts included pursuant to divisions (K)(3) and (Y) 328
of this section.
(2) "Earnable salary" does not include any of the 330
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following:
(a) Fees and commissions, other than those paid under 332
section 507.09 of the Revised Code, paid as sole compensation for 333
personal services and fees and commissions for special services 334
over and above services for which the contributor receives a 335
salary;
(b) Amounts paid by the employer to provide life 337
insurance, sickness, accident, endowment, health, medical, 338
hospital, dental, or surgical coverage, or other insurance for 339
the contributor or the contributor's family, or amounts paid by 340
the employer to the contributor in lieu of providing the
insurance;
(c) Incidental benefits, including lodging, food, laundry, 342
parking, or services furnished by the employer, or use of the 343
employer's property or equipment, or amounts paid by the employer 344
to the contributor in lieu of providing the incidental benefits; 345
(d) Reimbursement for job-related expenses authorized by 347
the employer, including moving and travel expenses and expenses 348
related to professional development; 349
(e) Payments for accrued, but unused sick leave, personal 351
leave, or vacation that are made at any time other than in the 353
year in which the sick leave, personal leave, or vacation was 354
accrued;
(f) Payments made to or on behalf of a contributor that 356
are in excess of the annual compensation that may be taken into 357
account by the retirement system under division (a)(17) of 358
section 401 of the "Internal Revenue Code of 1986," 100 Stat. 359
2085, 26 U.S.C.A. 401(a)(17), as amended;
(g) Payments made under division (B) or (D) of section 361
5923.05 of the Revised Code or Section 4 of Substitute Senate 362
Bill No. 3 of the 119th general assembly; 363
(h) Anything of value received by the contributor that is 365
based on or attributable to retirement or an agreement to retire, 366
except that payments made on or before January 1, 1989, that are 367
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based on or attributable to an agreement to retire shall be 368
included in earnable salary if both of the following apply: 369
(i) The payments are made in accordance with contract 371
provisions that were in effect prior to January 1, 1986; 372
(ii) The employer pays the retirement system an amount 374
specified by the retirement board equal to the additional 375
liability resulting from the payments. 376
(3) The retirement board shall determine by rule whether 378
any compensation not enumerated in division (R) of this section 379
is earnable salary, and its decision shall be final. 381
(S) "Pension reserve" means the present value, computed 383
upon the basis of the mortality and other tables adopted by the 384
board, of all payments to be made on account of any retirement 385
allowance or benefit in lieu of any retirement allowance, granted 386
to a member or beneficiary under this chapter.
(T)(1) "Contributing service" means all service credited 388
to a member of the system since January 1, 1935, for which 389
contributions are made as required by sections 145.47, 145.48, 390
and 145.483 of the Revised Code. In any year subsequent to 1934, 391
credit for any service shall be allowed by the following formula: 392
(a) For each month for which the member's earnable salary 394
is two hundred fifty dollars or more, allow one month's credit. 395
(b) For each month for which the member's earnable salary 397
is less than two hundred fifty dollars, allow a fraction of a 398
month's credit. The numerator of this fraction shall be the 399
earnable salary during the month, and the denominator shall be 400
two hundred fifty dollars, except that if the member's annual 401
earnable salary is less than six hundred dollars, the member's
credit shall not be reduced below twenty per cent of a year for a 402
calendar year of employment during which the member worked each 403
month. Division (T)(1)(b) of this section shall not reduce any 405
credit earned before January 1, 1985.
(2) Notwithstanding division (T)(1) of this section, an 407
elected official who prior to January 1, 1980, was granted a full 408
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year of credit for each year of service as an elected official 409
shall be considered to have earned a full year of credit for each 410
year of service regardless of whether the service was full-time 411
or part-time. The public employees retirement board has no
authority to reduce the credit. 412
(U) "State retirement board" means the public employees 414
retirement board, the school employees retirement board, or the 415
state teachers retirement board.
(V) "Retirant" means any former member who retires and is 417
receiving a monthly allowance as provided in sections 145.32, 418
145.33, 145.331, 145.34, and 145.46 of the Revised Code. 419
(W) "Employer contribution" means the amount paid by an 421
employer as determined by the employer rate including the normal 422
and deficiency contribution rates. 423
(X) "Public service terminates" means the last day for 425
which a public employee is compensated for services performed for 426
an employer or the date of the employee's death, whichever occurs 427
first.
(Y) When a member has been elected or appointed to an 429
office, the term of which is two or more years, for which an 430
annual salary is established, and in the event that the salary of 431
the office is increased and the member is denied the additional 432
salary by reason of any constitutional provision prohibiting an
increase in salary during a term of office, the member may elect 433
to have the amount of the member's contributions calculated upon 434
the basis of the increased salary for the office. At the 435
member's request, the board shall compute the total additional 436
amount the member would have contributed, or the amount by which 437
each of the member's contributions would have increased, had the 438
member received the increased salary for the office the member
holds. If the member elects to have the amount by which the 439
member's contribution would have increased withheld from the 440
member's salary, the member shall notify the employer, and the 441
employer shall make the withholding and transmit it to the
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retirement system. A member who has not elected to have that 442
amount withheld may elect at any time to make a payment to the 443
retirement system equal to the additional amount the member's 444
contribution would have increased, plus interest on that 445
contribution, compounded annually at a rate established by the 446
board and computed from the date on which the last contribution
would have been withheld from the member's salary to the date of 447
payment. A member may make a payment for part of the period for 448
which the increased contribution was not withheld, in which case 449
the interest shall be computed from the date the last 450
contribution would have been withheld for the period for which
the payment is made. Upon the payment of the increased 451
contributions as provided in this division, the increased annual 452
salary as provided by law for the office for the period for which 453
the member paid increased contributions thereon shall be used in 454
determining the member's earnable salary for the purpose of 455
computing the member's final average salary.
(Z) "Five years of service credit," for the exclusive 457
purpose of satisfying the service credit requirements and of 458
determining eligibility for benefits under section 145.33 of the 459
Revised Code, means employment covered under this chapter or 460
under a former retirement plan operated, recognized, or endorsed
by the employer prior to coverage under this chapter or under a 461
combination of the coverage. 463
(AA) "Deputy sheriff" means any person who is commissioned 465
and employed as a full-time peace officer by the sheriff of any 466
county, and has been so employed since on or before December 31, 467
1965, and whose primary duties are to preserve the peace, to 468
protect life and property, and to enforce the laws of this state; 469
any person who is or has been commissioned and employed as a
peace officer by the sheriff of any county since January 1, 1966, 470
and who has received a certificate attesting to the person's 471
satisfactory completion of the peace officer training school as 472
required by section 109.77 of the Revised Code and whose primary 473
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duties are to preserve the peace, protect life and property, and 474
enforce the laws of this state; or any person deputized by the
sheriff of any county and employed pursuant to section 2301.12 of 475
the Revised Code as a criminal bailiff or court constable who has 476
received a certificate attesting to the person's satisfactory 477
completion of the peace officer training school as required by 478
section 109.77 of the Revised Code and whose primary duties are 479
to preserve the peace, protect life and property, and enforce the 480
laws of this state.
(BB) "Township constable or police officer in a township 482
police department or district" means any person who is 483
commissioned and employed as a full-time peace officer pursuant 484
to Chapter 505. or 509. of the Revised Code, who has received a 485
certificate attesting to the person's satisfactory completion of
the peace officer training school as required by section 109.77 486
of the Revised Code, and whose primary duties are to preserve the 487
peace, protect life and property, and enforce the laws of this 488
state.
(CC) "Drug agent" means any person who is either of the 490
following:
(1) Employed full-time as a narcotics agent by a county 492
narcotics agency created pursuant to section 307.15 of the 493
Revised Code and has received a certificate attesting to the 494
satisfactory completion of the peace officer training school as 495
required by section 109.77 of the Revised Code;
(2) Employed full-time as an undercover drug agent as 497
defined in section 109.79 of the Revised Code and is in 498
compliance with section 109.77 of the Revised Code. 499
(DD) "Department of public safety enforcement agent" means 502
a full-time employee of the department of public safety who is 503
designated under section 5502.14 of the Revised Code as an 505
enforcement agent and who is in compliance with section 109.77 of 507
the Revised Code.
(EE) "Natural resources law enforcement staff officer" 509
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means a full-time employee of the department of natural resources 510
who is designated a natural resources law enforcement staff 511
officer under section 1501.013 of the Revised Code and is in 514
compliance with section 109.77 of the Revised Code.
(FF) "Park officer" means a full-time employee of the 516
department of natural resources who is designated a park officer 518
under section 1541.10 of the Revised Code and is in compliance 519
with section 109.77 of the Revised Code.
(GG) "Forest officer" means a full-time employee of the 521
department of natural resources who is designated a forest 523
officer under section 1503.29 of the Revised Code and is in 524
compliance with section 109.77 of the Revised Code.
(HH) "Preserve officer" means a full-time employee of the 527
department of natural resources who is designated a preserve 528
officer under section 1517.10 of the Revised Code and is in 530
compliance with section 109.77 of the Revised Code. 532
(II) "Wildlife officer" means a full-time employee of the 534
department of natural resources who is designated a wildlife 536
officer under section 1531.13 of the Revised Code and is in 537
compliance with section 109.77 of the Revised Code. 538
(JJ) "State watercraft officer" means a full-time employee 541
of the department of natural resources who is designated a state 542
watercraft officer under section 1547.521 of the Revised Code and 543
is in compliance with section 109.77 of the Revised Code. 544
(KK) "Park district police officer" means a full-time 546
employee of a park district who is designated pursuant to section 548
511.232 or 1545.13 of the Revised Code and is in compliance with 549
section 109.77 of the Revised Code.
(LL) "Conservancy district officer" means a full-time 551
employee of a conservancy district who is designated pursuant to 553
section 6101.75 of the Revised Code and is in compliance with 554
section 109.77 of the Revised Code.
(MM) "Municipal police officer" means a member of the 556
organized police department of a municipal corporation who is 558
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employed full-time, is in compliance with section 109.77 of the 559
Revised Code, and is not a member of the police and firemen's 560
disability and pension fund.
(NN) "Ohio veterans' home police officer" means any person 563
who is employed at the Ohio veterans' home as a police officer 564
pursuant to section 5907.02 of the Revised Code and is in 565
compliance with section 109.77 of the Revised Code.
(OO) "Special police officer for a mental health 567
institution" means any person who is designated as such pursuant 569
to section 5119.14 of the Revised Code and is in compliance with 570
section 109.77 of the Revised Code.
(PP) "Special police officer for an institution for the 572
mentally retarded and developmentally disabled" means any person 574
who is designated as such pursuant to section 5123.13 of the 575
Revised Code and is in compliance with section 109.77 of the 576
Revised Code.
(QQ) "State university law enforcement officer" means any 578
person who is employed full-time as a state university law 580
enforcement officer pursuant to section 3345.04 of the Revised 581
Code and who is in compliance with section 109.77 of the Revised 582
Code.
(RR) "Hamilton county municipal court bailiff" means a 584
person appointed by the clerk of courts of the Hamilton county 586
municipal court under division (A)(3) of section 1901.32 of the 587
Revised Code who is employed full-time as a bailiff or deputy 588
bailiff, who has received a certificate attesting to the person's 589
satisfactory completion of the peace officer training school as
required by division (C) of section 109.77 of the Revised Code, 590
and whose primary duties are to preserve the peace, to protect 591
life and property, and to enforce the laws of this state. 592
(SS) Notwithstanding section 2901.01 of the Revised Code, 594
"law enforcement officer" means a sheriff, deputy sheriff, 596
township constable or police officer in a township police 597
department or district, drug agent, department of public safety 598
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enforcement agent, natural resources law enforcement staff 599
officer, park officer, forest officer, preserve officer, wildlife 601
officer, state watercraft officer, park district police officer, 602
conservancy district officer, Ohio veterans' home police officer, 603
special police officer for a mental health institution, special 604
police officer for an institution for the mentally retarded and 605
developmentally disabled, state university law enforcement
officer, Hamilton county municipal court bailiff, or municipal 606
police officer.
(TT) "Fiduciary" means a person who does any of the 608
following: 609
(1) Exercises any discretionary authority or control with 611
respect to the management of the system or with respect to the 612
management or disposition of its assets; 613
(2) Renders investment advice for a fee, direct or 615
indirect, with respect to money or property of the system; 616
(3) Has any discretionary authority or responsibility in 618
the administration of the system. 619
(UU) "Actuary" means an individual who satisfies all of 621
the following requirements: 623
(1) Is a member of the American academy of actuaries; 625
(2) Is an associate or fellow of the society of actuaries; 627
(3) Has a minimum of five years' experience in providing 629
actuarial services to public retirement plans. 630
Sec. 145.23. The funds hereby created are the employees' 639
savings fund, the employers' accumulation fund, the annuity and 640
pension reserve fund, the income fund, the survivors' benefit 641
fund, and the expense fund. 642
(A) The employees' savings fund is the fund in which shall 644
be accumulated contributions from the earnable salaries of 645
contributors for the purchase of annuities or retirement 646
allowances. 647
The accumulated contributions of a contributor returned to 649
him THE CONTRIBUTOR upon his withdrawal, or paid to his THE 651
18
CONTRIBUTOR'S estate or designated beneficiary in the event of 652
his death, shall be paid from the employees' savings fund. Any 653
accumulated contributions forfeited by failure of a member, or 654
his A MEMBER'S estate, to claim the same, shall be transferred 656
from the employees' savings fund to the income fund. The 657
accumulated contributions of a contributor shall be transferred 658
from the employees' savings fund to the annuity and pension 659
reserve fund in the event of his THE CONTRIBUTOR'S retirement. 660
(B) The employers' accumulation fund is the fund in which 662
shall be accumulated the reserves for the payment of all pensions 663
and disability benefits payable as provided in this chapter. The 664
amounts paid by the state of Ohio and by any employer defined in 665
division (A) of section 145.01 of the Revised Code because of the 666
normal contributions and deficiency contributions shall be 667
credited to the employers' accumulation fund. 668
Any payments made into the employers' accumulation fund by 670
a member as provided in section 145.31 of the Revised Code shall 671
be refunded to such member under the conditions specified in 672
section 145.40 of the Revised Code. 673
Upon the retirement of a contributor, the full amount of 675
his THE CONTRIBUTOR'S pension reserve shall be transferred from 676
the employers' accumulation fund to the annuity and pension 678
reserve fund.
(C) The annuity and pension reserve fund is the fund from 680
which shall be paid all pensions, disability benefits, annuities, 681
and benefits in lieu thereof, because of which reserves have been 682
transferred from the employees' savings fund and the employers' 683
accumulation fund. 684
Any contributor may deposit in the employees' savings fund, 686
subject to rules established from time to time by the public 687
employees retirement board, such amounts as he THE CONTRIBUTOR 688
desires, and, at the time of age and service retirement, shall 690
receive in return therefor, at his THE CONTRIBUTOR'S option, 691
either an annuity having a reserve equal to the amount deposited 693
19
or a cash refund of such amounts together with such interest as 694
may have been allowed by the public employees retirement board at 695
the end of each calendar year. Such deposits for additional 696
annuity together with such interest as may have been allowed by 697
the public employees retirement board at the end of each calendar 698
year shall be refunded in the event of death prior to retirement 699
or withdrawal of accumulated contributions as provided in 700
sections 145.40 and 145.43 of the Revised Code or upon 701
application of the contributor prior to age and service 702
retirement.
FOR DEPOSITS RECEIVED IN A CALENDAR YEAR, INTEREST SHALL BE 705
EARNED BEGINNING ON THE FIRST DAY OF THE CALENDAR YEAR NEXT
FOLLOWING AND ENDING ON THE LAST DAY OF THAT YEAR, EXCEPT THAT IN 707
THE CASE OF A PAYMENT UNDER THIS DIVISION MADE PRIOR TO THE LAST 709
DAY OF A YEAR, INTEREST SHALL BE EARNED ENDING ON THE LAST DAY OF 710
THE MONTH PRIOR TO THE DATE OF PAYMENT. THE BOARD SHALL CREDIT 711
INTEREST AT THE END OF THE CALENDAR YEAR IN WHICH IT IS EARNED. 712
(D) The income fund is the fund from which interest is 714
transferred and credited on the amounts in the funds described in 715
divisions (B), (C), and (F) of this section, and is a contingent 716
fund from which the special requirements of the funds may be paid 717
by transfer from this fund. All income derived from the 718
investment of funds by the public employees retirement board as 719
trustee under section 145.11 of the Revised Code, together with 720
all gifts and bequests, or the income therefrom, shall be paid 721
into this fund. 722
Any deficit occurring in any other fund that will not be 724
covered by payments to that fund, as otherwise provided in 725
Chapter 145. of the Revised Code, shall be paid by transfers of 726
amounts from the income fund to such fund or funds. If the 727
amount in the income fund is insufficient at any time to meet the 728
amounts payable therefrom, the amount of the deficiency, with 729
regular interest, shall be paid by an additional employer rate of 730
contributions as determined by the actuary, not to exceed 731
20
fourteen per cent, and the amount of the additional employer 732
contribution shall be credited to the income fund. 733
The public employees retirement board may accept gifts and 735
bequests. Any funds that may come into possession of the public 736
employees retirement board in this manner, or which may be 737
transferred from the employees' savings fund by reason of lack of 738
a claimant, or any surplus in any fund created by this section, 739
or any other funds whose disposition is not otherwise provided 740
for, shall be credited to the income fund. 741
(E) The expense fund is the fund from which shall be paid 743
the expenses of the administration of this chapter, exclusive of 744
amounts payable as retirement allowances and as other benefits. 745
(F) The survivors' benefit fund is the fund from which 747
shall be paid dependent survivor benefits provided by section 748
145.45 of the Revised Code. 749
Sec. 145.31. Except as provided in this section, a member 758
or former member of the public employees retirement system with 760
at least eighteen months of contributing service credit in this 761
system, the state teachers retirement system, the school 762
employees retirement system, the police and firemen's disability 763
and pension fund, or the state highway patrol retirement system, 764
after the withdrawal of ACCUMULATED contributions and 765
cancellation of service credit in this system, may restore such 767
service credit by redepositing in the employees' savings fund the 768
amount withdrawn, with interest on such amount compounded 769
annually at a rate to be determined by the public employees 770
retirement board from the first day of the month of withdrawal to 771
and including the month of redeposit. The AMOUNT REDEPOSITED 772
SHALL BE CREDITED AS FOLLOWS:
(A) THE AMOUNT THAT EQUALS THE AMOUNT, IF ANY, INCLUDED 774
UNDER SECTION 145.401 OF THE REVISED CODE IN THE WITHDRAWAL OF 776
ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF THE REVISED 777
CODE SHALL BE CREDITED TO THE EMPLOYER'S ACCUMULATION FUND. 778
(B) THE REMAINING AMOUNT SHALL BE CREDITED TO THE MEMBER'S 780
21
ACCOUNT IN THE EMPLOYEE'S SAVINGS FUND. 781
THE member may choose to purchase only part of such credit 783
in any one payment, subject to board rules. The EXCEPT FOR ANY 784
AMOUNT INCLUDED UNDER SECTION 145.401 OF THE REVISED CODE IN THE 785
WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF 786
THE REVISED CODE, THE total payment to restore canceled service 787
credit, plus any interest credited thereto, shall be considered 788
as accumulated contributions of the member. If a former member 789
is eligible to buy the service credit as a member of the police 790
and firemen's disability and pension fund or state highway patrol
retirement system, the former member is ineligible to restore 791
that service credit under this section. 792
Any employee who has been refunded the employee's 794
accumulated contributions to the public employees retirement 795
system solely by reason of membership in a former firemen's 796
relief and pension fund or a former police relief and pension 797
fund may restore membership in the public employees retirement 798
system by redepositing with the system the amount refunded, with 799
interest on such amount compounded annually at a rate to be 800
determined by the board from the month of refund to and including 801
the month of redeposit. The member may choose to purchase only 802
part of such credit in any one payment, subject to board rules. 803
Sec. 145.37. (A) As used in this section: 812
(1) "State retirement system" means the public employees 814
retirement system, school employees retirement system, or state 815
teachers retirement system. 816
(2) "Total service credit" means all service credit earned 818
in the state retirement systems, except credit for service 819
subject to section 145.38 of the Revised Code. Total service 820
credit shall not exceed one year of credit for any twelve-month 821
period. 822
(3) In addition to the meaning given in division (N) of 824
section 145.01 of the Revised Code, "disability benefit" means 825
"disability benefit" as defined in sections 3307.01 and 3309.01 826
22
of the Revised Code. 827
(B) To coordinate and integrate membership in the state 829
retirement systems, the following provisions apply: 830
(1) At the option of a member, total contributions and 832
service credit in all state retirement systems shall be used in 833
determining the eligibility and total retirement or disability 834
benefit payable. When total contributions and service credit are 835
so combined, the following provisions apply: 836
(a) Age and service retirement or disability benefits are 838
effective on the first day of the month immediately following the 839
later of: 840
(i) The last day for which compensation was paid; 842
(ii) The attainment of minimum age or service credit 844
eligibility for benefits provided under this section. 845
(b) In determining eligibility for a disability benefit, 847
the medical examiner's report to the retirement board of any 848
state retirement system, showing that the member's disability 849
incapacitates him THE MEMBER for the performance of duty, may be 850
accepted by the state retirement boards as sufficient for 852
granting a disability benefit. 853
(c) The state retirement system in which the member had 855
the greatest service credit, without adjustment, shall determine 856
and pay the total retirement or disability benefit. Where his 857
THE MEMBER'S credit is equal in two or more state retirement 859
systems, the system having the largest total contributions of the 860
member shall determine and pay the total benefit. 861
(d) In determining the total credit to be used in 863
calculating a retirement or disability benefit, credit shall not 864
be reduced below that certified by the system or systems 865
transferring credit, except that such total combined service 866
credit shall not exceed one year of credit for any one "year" as 867
defined in the law of the system making the calculation. 868
(e) The state retirement system determining and paying a 870
retirement or disability benefit shall receive from the other 871
23
system or systems the member's refundable account at retirement 872
or the effective date of a disability benefit plus an equal 873
amount from the employer's accumulation fund EQUAL TO THE 874
MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST CREDITED UNDER SECTION 875
145.471, 145.472, OR 3307.80 OF THE REVISED CODE. 876
(i) The annuity rates and mortality tables of the state 878
retirement system making the calculation and paying the benefit 879
shall be exclusively applicable. 880
(ii) Deposits made for the purpose of an additional 882
annuity, and including guaranteed interest, upon the request of 883
the member, shall be transferred to the state retirement system 884
paying the benefit. The return upon such deposits shall be that 885
offered by the state retirement system making the calculation and 886
paying the benefit. 887
(2) A former member receiving a retirement or disability 889
benefit under this section, who accepts employment amenable to 890
coverage in any state retirement system that participated in his 891
THE FORMER MEMBER'S combined benefit, shall be subject to the 893
applicable provisions of law governing such re-employment. If 894
the former member is subject to section 3307.381 of the Revised 895
Code and exceeds the limits on re-employment established by that 896
section, the state retirement system paying a combined benefit 897
shall terminate the entire pension portion of the benefit for the 898
period of re-employment that exceeds the limit in that section. 899
If a former member should be paid any amount in a retirement 900
benefit, to which he THE FORMER MEMBER is not entitled under the 901
applicable provisions of law governing such re-employment, such 903
amount shall be recovered by the state retirement system paying 904
such benefit by utilizing any recovery procedure available under 905
the code provisions of the state retirement system covering such 906
re-employment.
(C) A PERS retirant or other system retirant, as defined 908
in section 145.38 of the Revised Code, is not eligible to receive 909
any benefit under this section for service subject to section 910
24
145.38 of the Revised Code. 911
Sec. 145.38. (A) As used in this section: 920
(1) "PERS retirant" means a former member of the public 922
employees retirement system who is receiving either of the 923
following:
(a) Age and service retirement benefits under section 925
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 926
(b) Age and service retirement benefits paid by the public 928
employees retirement system under section 145.37 of the Revised 929
Code. 930
(2) "Other system retirant" means both of the following: 932
(a) A member or former member of the police and firemen's 934
disability and pension fund, state teachers retirement system, 935
school employees retirement system, state highway patrol 936
retirement system, or Cincinnati retirement system who is 937
receiving age and service or commuted age and service retirement 938
benefits or a disability benefit from a system of which the 939
person is a member or former member; 940
(b) A member or former member of the public employees 942
retirement system who is receiving age and service retirement 943
benefits or a disability benefit under section 145.37 of the 944
Revised Code paid by the school employees retirement system or 945
the state teachers retirement system. 946
(B)(1) Subject to this section, a PERS retirant or other 948
system retirant may be employed by a public employer. If so 949
employed, the PERS retirant or other system retirant shall 950
contribute to the public employees retirement system in 951
accordance with section 145.47 of the Revised Code, and the 952
employer shall make contributions in accordance with section 953
145.48 of the Revised Code. 954
(2) A public employer that employs a PERS retirant or 956
other system retirant, or enters into a contract for services as 957
an independent contractor with a PERS retirant who was employed 958
by the public employer at the time of the retirant's retirement 960
25
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 961
contract commences. Any overpayment of benefits to a PERS 962
retirant by the retirement system resulting from delay or failure 963
of the employer to give the notice shall be repaid to the 964
retirement system by the employer. 965
(3) On receipt of notice from a public employer that a 967
person who is an other system retirant has been employed, the 968
retirement system shall notify the retirement system of which the 969
other system retirant was a member of such employment. 970
(4)(a) A PERS retirant who has received a retirement 972
allowance for less than six months when employment subject to 973
this section commences shall forfeit the retirement allowance for 974
the period that begins on the date the employment commences and 975
ends on the date that is six months after the date on which the 976
retirement allowance commenced. Service and contributions for 977
that period shall not be included in calculation of any benefits 978
payable to the PERS retirant and those contributions shall be 979
refunded on the retirant's death or termination of the 980
employment. For purposes of this division, "employment" shall 981
include service for which the retirant or the retirant's 982
employer, or both, have waived any earnable salary for such 983
service.
(b) An other system retirant who has received a retirement 985
allowance or disability benefit for less than two months when 987
employment subject to this section commences shall forfeit the 988
retirement allowance or disability benefit for the period that 989
begins on the date the employment commences and ends on the date 990
that is two months after the date on which the retirement 991
allowance or disability benefit commenced. Service and 992
contributions for that period shall not be included in the
calculation of any benefits payable to the other system retirant 993
and those contributions shall be refunded on the retirant's death 995
or termination of the employment.
26
(5) On receipt of notice from the police and firemen's 997
disability and pension fund, school employees retirement system, 998
or state teachers retirement system of the re-employment of a 999
PERS retirant, the public employees retirement system shall not 1,000
pay, or if paid, shall recover, the amount to be forfeited by the 1,001
PERS retirant in accordance with section 742.26, 3307.381, or 1,002
3309.341 of the Revised Code. 1,003
(6) A PERS retirant who enters into a contract to provide 1,005
services as an independent contractor to the employer by which 1,006
the retirant was employed at the time of retirement or, less than 1,008
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 1,009
contract with another public employer, shall forfeit the pension 1,010
portion of the retirement benefit for the period beginning the 1,011
first day of the month following the month in which the services 1,012
begin and ending on the first day of the month following the 1,013
month in which the services end. The annuity portion of the 1,014
retirement allowance shall be suspended on the day services under 1,015
the contract begin and shall accumulate to the credit of the 1,016
retirant to be paid in a single payment after services provided 1,017
under the contract terminate. A PERS retirant subject to 1,018
division (B)(6) of this section shall not contribute to the 1,019
retirement system and shall not become a member of the system. 1,020
(C)(1) Except as provided in division (C)(4) of this 1,022
section, a PERS retirant employed pursuant to this section shall 1,024
elect one of the following:
(a) To receive both compensation for the employment and a 1,027
retirement allowance;
(b) To receive compensation for the employment and forfeit 1,030
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 1,033
this section or elects to forfeit the pension portion of the 1,034
retirement allowance under division (C)(1)(b) of this section 1,035
shall become a new member of the public employees retirement 1,036
27
system with all the rights, privileges, and obligations of 1,037
membership, except that the new membership does not include 1,038
survivor benefits provided pursuant to section 145.45 of the 1,039
Revised Code OR ANY AMOUNT CALCULATED UNDER SECTION 145.401 OF 1,040
THE REVISED CODE. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 1,041
month following commencement of the employment and shall 1,042
thereafter be forfeited until the first day of the first month 1,043
following termination of the employment. The annuity portion of 1,044
the retirement allowance shall be suspended on the first day of 1,045
the first month following commencement of the employment and 1,046
shall thereafter accumulate to the credit of the PERS retirant to 1,047
be paid in a single payment after termination of the employment. 1,048
The retirement allowance shall resume on the first day of the 1,049
first month following termination of the employment. On 1,050
termination of the employment, the PERS retirant shall elect to 1,051
receive either a refund of the retirant's contributions to the 1,053
retirement system during the period of employment subject to this 1,054
section or a supplemental retirement allowance based on the 1,055
retirant's contributions and service credit for that period of 1,056
employment.
(3) Except as provided in division (B)(4) of this section, 1,058
there shall be no suspension or forfeiture of any portion of the 1,059
retirement allowance payable to other system retirants or to PERS 1,060
retirants who make an election under division (C)(1)(a) of this 1,061
section. 1,062
(4) A PERS retirant shall elect division (C)(1)(b) of this 1,065
section if both of the following apply:
(a) The retirant held elective office in this state, or in 1,067
any municipal corporation, county, or other subdivision of this 1,068
state at the time of retirement under Chapter 145. of the Revised 1,069
Code;
(b) The retirant was elected or appointed to the same 1,071
office for the remainder of the term or the term immediately 1,072
28
following the term during which the retirement occurred. 1,073
(D)(1) On termination of employment under this section, 1,075
the PERS retirant who makes an election under division (C)(1)(a) 1,076
of this section or other system retirant may file an application 1,077
with the public employees retirement system for a benefit under 1,078
this division, which shall consist of a single life annuity 1,079
having a reserve equal to the amount of the retirant's 1,080
accumulated contributions for the period of employment and an 1,081
equal amount of the employer's contributions. The PERS retirant 1,082
or other system retirant shall elect either to receive the 1,083
benefit as a monthly annuity for life or a lump sum payment 1,084
discounted to the present value using the current actuarial 1,085
assumption rate of interest, except that if the monthly annuity 1,086
would be less than twenty-five dollars per month, the retirant 1,087
shall receive a lump sum payment. 1,088
(2) A benefit payable under this division shall commence 1,090
on the latest of the following: 1,091
(a) The last day for which compensation for employment 1,093
subject to this section was paid; 1,094
(b) Attainment by the PERS retirant or other system 1,096
retirant of age sixty-five; 1,097
(c) If the PERS retirant or other system retirant was 1,099
previously employed under this section and is receiving or 1,100
previously received a benefit under this division, completion of 1,101
a period of twelve months since the effective date of the last 1,102
benefit under this division. 1,103
(3)(a) If a PERS retirant or other system retirant dies 1,105
while employed in employment subject to this section, a lump sum 1,106
payment calculated in accordance with division (D)(1) of this 1,107
section shall be paid to the retirant's beneficiary under 1,108
division (G) of this section. 1,109
(b) If at the time of death a PERS retirant or other 1,111
system retirant receiving a monthly annuity has received less 1,112
than the retirant would have received as a lump sum payment, the 1,114
29
difference between the amount received and the amount that would 1,115
have been received as a lump sum payment shall be paid to the 1,116
retirant's beneficiary under division (G) of this section. 1,117
(4)(a) A PERS retirant or other system retirant subject to 1,119
this division is not a member of the public employees retirement 1,120
system, does not have any of the rights, privileges, or 1,121
obligations of membership, except as specified in this section, 1,122
and, except as specified in division (D)(4)(b) of this section, 1,123
is not eligible to receive health, medical, hospital, or surgical 1,124
benefits under section 145.58 of the Revised Code for employment 1,125
subject to this section. No amount received under this division 1,126
shall be included in determining an additional benefit under 1,127
section 145.323 of the Revised Code or any other post-retirement 1,128
benefit increase. 1,129
(b) A PERS retirant who makes an election under division 1,131
(C)(1)(a) of this section shall receive primary health, medical, 1,132
hospital, or surgical insurance coverage from the retirant's 1,133
employer, if the employer provides coverage to other employees 1,134
performing comparable work. Neither the employer nor the PERS 1,135
retirant may waive the employer's coverage, except that the PERS 1,136
retirant may waive the employer's coverage if the retirant has 1,137
coverage comparable to that provided by the employer from a 1,138
source other than the employer or the public employees retirement 1,139
system. If a claim is made, the employer's coverage shall be the 1,140
primary coverage and shall pay first. The benefits provided 1,141
under section 145.58 of the Revised Code shall pay only those 1,142
medical expenses not paid through the employer's coverage or 1,143
coverage the PERS retirant receives through a source other than 1,144
the retirement system. 1,145
(E) If the disability benefit of an other system retirant 1,147
employed under this section is terminated, the retirant shall 1,148
become a member of the public employees retirement system, 1,149
effective on the first day of the month next following the 1,150
termination with all the rights, privileges, and obligations of 1,151
30
membership. If such person, after the termination of the 1,152
disability benefit, earns two years of service credit under this 1,153
system or under the police and firemen's disability and pension 1,154
fund, state teachers retirement system, school employees 1,155
retirement system, or state highway patrol retirement system, the 1,156
person's prior contributions as an other system retirant under 1,157
this section shall be included in the person's total service 1,158
credit as a public employees retirement system member, and the 1,159
person shall forfeit all rights and benefits of this section. 1,160
Not more than one year of credit may be given for any period of 1,161
twelve months.
(F) A PERS retirant who performs services for a public 1,163
employer as an independent contractor pursuant to a contract with 1,164
the employer shall not make contributions to the public employees 1,165
retirement system or become a member of the system. Except as 1,166
provided in division (B)(6) of this section, there shall be no 1,167
suspension or forfeiture of the retirant's retirement allowance. 1,168
(G) A PERS retirant or other system retirant employed 1,170
under this section may designate one or more persons as 1,171
beneficiary to receive any benefits payable under this section 1,172
due to death. The designation shall be in writing duly executed 1,174
on a form provided by the public employees retirement board, 1,175
signed by the PERS retirant or other system retirant, and filed 1,176
with the board prior to death. The last designation of a 1,177
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,178
dissolution, legal separation, withdrawal of account, birth of a 1,180
child, or adoption of a child revokes all previous designations. 1,181
If there is no designated beneficiary, the beneficiary is the 1,182
beneficiary determined under division (D) of section 145.43 of 1,183
the Revised Code. If any benefit payable under this section due 1,184
to the death of a PERS retirant or other system retirant is not 1,185
claimed by a beneficiary within five years after the death, the 1,186
amount payable shall be transferred to the income fund and 1,187
31
thereafter paid to the beneficiary or the estate of the PERS 1,188
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,190
by or eligibility for benefits of any person who on August 20, 1,191
1976, was receiving a disability benefit or service retirement 1,192
pension or allowance from a state or municipal retirement system 1,193
in Ohio and was a member of any other state or municipal 1,194
retirement system of this state. 1,195
(I) The public employees retirement board may adopt rules 1,197
to carry out this section. 1,198
Sec. 145.40. (A) Subject to the provisions of section 1,207
145.57 of the Revised Code, if a member elects to become exempt 1,208
from contribution to the public employees retirement system 1,209
pursuant to section 145.03 of the Revised Code or ceases to be a 1,210
public employee for any cause other than death, retirement, 1,211
receipt of a disability benefit, or election of an alternative 1,212
retirement plan under section 3305.05 of the Revised Code, upon 1,213
application the public employees retirement board shall pay the 1,215
member the accumulated contributions standing to the credit of 1,216
the member's individual account in the employees' savings fund, 1,218
plus any principal payment and interest on it the member may have 1,219
made to purchase additional service credit under this chapter or 1,221
Section 4 of Substitute Senate Bill 138 of the 117th general 1,222
assembly, AND PLUS ANY APPLICABLE AMOUNT CALCULATED UNDER SECTION 1,223
145.401 OF THE REVISED CODE, provided that all the following 1,224
apply:
(1) Three months have elapsed since the member's public 1,227
service, other than service exempted from contribution pursuant 1,228
to section 145.03 of the Revised Code, was terminated; 1,229
(2) The member has not returned to public service, other 1,231
than service exempted from contribution pursuant to section 1,232
145.03 of the Revised Code, during that three-month period; 1,233
(3) The member is not a member of the school employees 1,235
retirement system or the state teachers retirement system. 1,236
32
The payment of such accumulated contributions shall cancel 1,238
the total service credit of such member in the public employees 1,239
retirement system. 1,240
(B) This division applies to any member who ceases to be a 1,242
public employee by electing an alternative retirement plan 1,243
pursuant to section 3305.05 of the Revised Code and is not 1,244
otherwise employed as a public employee in a position to which 1,246
the election does not apply. For purposes of this division,
"continuously employed" has the same meaning as in section 1,247
3305.01 of the Revised Code. 1,248
(1) Subject to section 145.57 of the Revised Code, on the 1,250
application of a member to whom this division applies who is 1,252
continuously employed, the public employees retirement board 1,253
shall pay the accumulated contributions standing to the credit of 1,254
the member's individual account in the employees' savings fund,
plus any additional amounts described in division (A) of this 1,255
section, to the entity providing the member's alternative 1,256
retirement plan for application to that plan in accordance with 1,257
any contract the member has entered into for purposes of that 1,258
plan.
(2) Subject to section 145.57 of the Revised Code, on 1,260
application of a member to whom this division applies who has 1,262
ceased to be continuously employed, the public employees 1,263
retirement board shall pay the accumulated contributions standing 1,264
to the credit of the member's individual account in the
employees' savings fund, plus any additional amounts described in 1,265
division (A) of this section, to the entity providing the 1,266
member's alternative retirement plan for application to that plan 1,267
in accordance with any contract the member has entered into for 1,268
purposes of that plan, provided that all of the following apply: 1,269
(a) At least three months have elapsed since the date on 1,271
which the member ceased to be continuously employed; 1,272
(b) The member has not been employed as a public employee 1,274
during that three-month period; 1,275
33
(c) Division (A)(3) of this section applies to the member. 1,278
(3) Payment of a member's accumulated contributions under 1,280
this division cancels the member's total service credit in the 1,281
public employees retirement system. 1,282
Sec. 145.401. (A) AS USED IN THIS SECTION: 1,284
(1) "ELIGIBLE CONTRIBUTIONS" MEANS AMOUNTS CONTRIBUTED 1,286
UNDER SECTION 145.47 OF THE REVISED CODE, AMOUNTS RECEIVED FROM A 1,287
MEMBER OR TRANSFERRED UNDER SECTION 145.20, 145.295, 145.302, OR 1,288
145.44 OF THE REVISED CODE, AND ANY INTEREST CREDITED UNDER 1,290
SECTION 145.471 OR 145.472 OF THE REVISED CODE. "ELIGIBLE 1,292
CONTRIBUTIONS" DOES NOT INCLUDE CONTRIBUTIONS THAT WERE USED IN 1,293
THE PAYMENT OF A DISABILITY BENEFIT OR, AS PROVIDED IN RULES 1,294
ADOPTED BY THE BOARD, WERE REFUNDED TO A MEMBER BECAUSE THE 1,295
SYSTEM WAS NOT AUTHORIZED TO ACCEPT THE CONTRIBUTIONS.
(2) "SERVICE CREDIT" MEANS SERVICE CREDIT EARNED FOR 1,297
PERIODS FOR WHICH CONTRIBUTIONS WERE MADE UNDER SECTION 145.47 OF 1,298
THE REVISED CODE AND, IF APPLICABLE, PERIODS FOR WHICH SERVICE 1,299
CREDIT WAS PURCHASED OR TRANSFERRED UNDER SECTION 145.20, 1,300
145.295, 145.302, OR 145.44 OF THE REVISED CODE. 1,301
(B) IF A MEMBER HAS, OR AT THE TIME OF DEATH HAD, AT LEAST 1,303
FIVE YEARS OF SERVICE CREDIT, THE PUBLIC EMPLOYEES RETIREMENT 1,304
BOARD SHALL INCLUDE THE AMOUNT SPECIFIED IN DIVISION (B)(1) OR 1,305
(2) OF THIS SECTION IN THE AMOUNT PAYABLE UNDER SECTION 145.40 OF 1,306
THE REVISED CODE TO THE MEMBER, OR UNDER DIVISION (B) OF SECTION 1,308
145.43 OF THE REVISED CODE TO A BENEFICIARY OR BENEFICIARIES OF 1,309
THE MEMBER, UNLESS AT THE TIME OF DEATH THE MEMBER WAS A 1,310
DISABILITY BENEFIT RECIPIENT. THE AMOUNT SPECIFIED IN DIVISION 1,311
(B)(1) OR (2) OF THIS SECTION SHALL BE PAID FROM THE EMPLOYERS' 1,312
ACCUMULATION FUND. 1,313
(1) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,315
LEAST FIVE BUT LESS THAN TEN YEARS OF SERVICE CREDIT, THE AMOUNT 1,316
INCLUDED SHALL BE EQUAL TO THIRTY-THREE PER CENT OF THE MEMBER'S 1,318
ELIGIBLE CONTRIBUTIONS.
(2) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,320
34
LEAST TEN YEARS OF SERVICE CREDIT, THE AMOUNT INCLUDED SHALL BE 1,321
EQUAL TO SIXTY-SEVEN PER CENT OF THE MEMBER'S ELIGIBLE 1,322
CONTRIBUTIONS. 1,323
Sec. 145.43. (A) As used in this section and in section 1,332
145.45 of the Revised Code: 1,333
(1) "Child" means a biological or legally adopted child of 1,336
a deceased member. If a court hearing for an interlocutory 1,337
decree for adoption was held prior to the member's death, "child" 1,338
includes the child who was the subject of the hearing
notwithstanding the fact that the final decree of adoption, 1,339
adjudging the surviving spouse as the adoptive parent, is made 1,340
subsequent to the member's death.
(2) "Parent" is a parent or legally adoptive parent of a 1,343
deceased member. 1,344
(3) "Dependent" means a beneficiary who receives one-half 1,346
of the beneficiary's support from a member during the twelve 1,347
months prior to the member's death. 1,348
(4) "Surviving spouse" means an individual who establishes 1,351
a valid marriage to a member at the time of the member's death by 1,352
marriage certificate or pursuant to division (E) of this section. 1,353
(5) "Survivor" means a surviving spouse, child, or parent. 1,356
(B) Except as provided in division (C)(1) of section 1,359
145.45 of the Revised Code, should a member die before age and 1,361
service retirement, the member's accumulated contributions, any 1,362
deposits for purchase of additional annuity, and any payment the 1,364
member has made to restore previously forfeited service credit as 1,366
provided in section 145.31 of the Revised Code, AND ANY 1,367
APPLICABLE AMOUNT CALCULATED UNDER SECTION 145.401 OF THE REVISED 1,368
CODE, shall be paid to the person or persons the member has 1,369
designated in writing duly executed on a form provided by the 1,371
public employees retirement board, signed by the member, and 1,372
filed with the board prior to the member's death. A member may 1,373
designate two or more persons as beneficiaries jointly to be paid 1,375
the accumulated account in a lump sum. The last designation of 1,376
35
any beneficiary revokes all previous designations. The member's 1,377
marriage, divorce, marriage dissolution, legal separation, or 1,378
withdrawal of account, or the birth of the member's child, or 1,379
adoption of a child, shall constitute an automatic revocation of 1,381
the member's previous designation. If a deceased member was also 1,382
a member of the school employees retirement system or the state 1,383
teachers retirement system, the beneficiary last established 1,384
among the systems shall be the sole beneficiary in all the 1,385
systems.
If the accumulated contributions of a deceased member are 1,387
not claimed by a beneficiary or by the estate of the deceased 1,388
member within five years, the contributions shall be transferred 1,390
to the income fund and thereafter paid to the beneficiary or to 1,392
the member's estate upon application to the board. The board 1,393
shall formulate and adopt the necessary rules governing all 1,394
designations of beneficiaries. 1,395
(C) Except as provided in division (C)(1) of section 1,397
145.45 of the Revised Code, if a member dies before age and 1,399
service retirement and is not survived by a designated 1,400
beneficiary, any beneficiaries shall qualify in the following 1,402
order of precedence, with all attendant rights and privileges: 1,403
(1) Surviving spouse; 1,405
(2) Children share and share alike; 1,407
(3) A dependent parent of a member, if that parent takes 1,410
survivor benefits under division (B) of section 145.45 of the 1,412
Revised Code;
(4) Parents, share and share alike; 1,414
(5) Estate. 1,416
If the beneficiary is deceased or is not located within 1,418
ninety days, the beneficiary ceases to qualify for any benefit 1,419
and the beneficiary next in order of precedence shall qualify as 1,420
a beneficiary. 1,421
Any payment made to a beneficiary as determined by the 1,423
public employees retirement board shall be a full discharge and 1,424
36
release to the board from any future claims. 1,425
(D) Any amount due a retirant or disability benefit 1,427
recipient receiving a monthly benefit and unpaid to the retirant 1,429
or recipient at death shall be paid to the beneficiary designated 1,431
in writing on a form approved by the board, signed by the 1,432
retirant or recipient and filed with the board. If no such
designation has been filed, or if the designated beneficiary is 1,434
not located within ninety days, any amounts payable under this 1,436
chapter due to the death of the retirant or recipient shall be 1,438
paid in the following order of precedence to the retirant's or
recipient's: 1,439
(1) Surviving spouse; 1,441
(2) Children, share and share alike; 1,443
(3) Parents, share and share alike; 1,445
(4) Estate. 1,447
The payment shall be a full discharge and release to the 1,449
board from any future claim for the payment. 1,450
Any amount due a beneficiary receiving a monthly benefit 1,452
and unpaid to the beneficiary at the beneficiary's death shall be 1,454
paid to the beneficiary's estate. 1,455
(E) If the validity of marriage cannot be established to 1,457
the satisfaction of the retirement board for the purpose of 1,458
disbursing any amount due under this section or section 145.45 of 1,459
the Revised Code, the board may accept a decision rendered by a 1,460
court having jurisdiction in the state in which the member was 1,461
domiciled at the time of death that the relationship constituted 1,462
a valid marriage at the time of death, or the "spouse" would have 1,463
the same status as a widow or widower for purposes of sharing the 1,464
distribution of the member's intestate personal property. 1,465
(F) If the death of a member is caused by one of the 1,467
following beneficiaries, no amount due under this chapter to the 1,468
beneficiary shall be paid to the beneficiary in the absence of a 1,469
court order to the contrary filed with the board: 1,470
(1) A beneficiary who is convicted of, pleads guilty to, 1,472
37
or is found not guilty by reason of insanity of a violation of or 1,474
complicity in the violation of either of the following: 1,475
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 1,478
Code;
(b) An existing or former law of any other state, the 1,481
United States, or a foreign nation that is substantially 1,483
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 1,485
Code;.
(2) A beneficiary who is indicted for a violation of or 1,487
complicity in the violation of the sections or laws described in 1,488
division (F)(1)(a) or (b) of this section and is adjudicated 1,490
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 1,492
delinquent child by reason of committing an act that, if 1,493
committed by an adult, would be a violation of or complicity in 1,494
the violation of the sections or laws described in division 1,496
(F)(1)(a) or (b) of this section. 1,497
Sec. 145.471. (A)(1) ON AND AFTER THE EFFECTIVE DATE OF 1,499
THIS SECTION, THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL CREDIT 1,500
INTEREST TO THE INDIVIDUAL ACCOUNTS OF CONTRIBUTORS, EXCEPT THAT 1,502
INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL ACCOUNT OF A 1,503
PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 145.38 OF 1,504
THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE PERIOD 1,505
DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 OF THE 1,507
REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,509
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,510
(2) EXCEPT AS PROVIDED IN SECTION 145.472 OF THE REVISED 1,512
CODE, THE BOARD SHALL NOT CREDIT INTEREST TO INDIVIDUAL ACCOUNTS 1,513
FOR THE PERIOD BEGINNING DECEMBER 31, 1958, AND ENDING ON THE 1,514
EFFECTIVE DATE OF THIS SECTION.
(B) FOR CONTRIBUTIONS RECEIVED IN A CALENDAR YEAR, 1,516
INTEREST SHALL BE EARNED BEGINNING ON THE FIRST DAY OF THE 1,517
CALENDAR YEAR NEXT FOLLOWING AND ENDING ON THE LAST DAY OF THAT 1,518
38
YEAR, EXCEPT THAT INTEREST SHALL BE EARNED, IN THE CASE OF AN 1,519
APPLICATION FOR RETIREMENT OR PAYMENT UNDER SECTION 145.40 OR 1,521
145.43 OF THE REVISED CODE, ENDING ON THE LAST DAY OF THE MONTH 1,522
PRIOR TO RETIREMENT OR PAYMENT UNDER THOSE SECTIONS. THE BOARD 1,523
SHALL CREDIT INTEREST AT THE END OF THE CALENDAR YEAR IN WHICH IT
IS EARNED. 1,524
Sec. 145.472. THIS SECTION APPLIES TO INDIVIDUALS WHO ARE 1,526
CONTRIBUTORS ON THE EFFECTIVE DATE OF THIS SECTION. 1,527
(A) NOT LATER THAN THIRTY DAYS AFTER THE EFFECTIVE DATE OF 1,529
THIS SECTION, THE BOARD SHALL CREDIT INTEREST TO THE INDIVIDUAL 1,530
ACCOUNT OF EACH CONTRIBUTOR IN ACCORDANCE WITH THIS SECTION, 1,531
EXCEPT THAT INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL 1,532
ACCOUNT OF A PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 1,533
145.38 OF THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE 1,534
PERIOD DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 1,536
OF THE REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER 1,537
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,538
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,539
FOR CONTRIBUTORS WITH SERVICE CREDIT EARNED PRIOR TO 1,541
DECEMBER 31, 1981, THE BOARD MAY REFLECT THE COMPOUNDING OF 1,542
INTEREST BY USING FACTORS PROVIDED BY THE BOARD'S ACTUARY. 1,543
(B) THE INTEREST CREDITED UNDER THIS SECTION SHALL BE 1,545
CALCULATED ON ALL AMOUNTS ON DEPOSIT IN AN INDIVIDUAL'S ACCOUNT 1,547
IN THE EMPLOYEE SAVINGS FUND AS FOLLOWS: 1,548
(1) IF THIS SECTION TAKES EFFECT ON OR BEFORE DECEMBER 31, 1,551
2000, INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON 1,552
DECEMBER 31, 1998.
(2) IF THIS SECTION TAKES EFFECT AFTER DECEMBER 31, 2000, 1,554
INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON DECEMBER 1,555
31, 1999. 1,556
Sec. 145.473. (A) EXCEPT AS PROVIDED IN DIVISION (C) OF 1,558
THIS SECTION, THE RATE OF INTEREST CREDITED TO INDIVIDUAL 1,559
ACCOUNTS OF CONTRIBUTORS UNDER SECTIONS 145.471 AND 145.472 OF 1,560
THE REVISED CODE SHALL BE AS FOLLOWS: 1,561
39
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, TO AND 1,563
INCLUDING DECEMBER 31, 1955; 1,564
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,567
JANUARY 1, 1956, TO AND INCLUDING DECEMBER 31, 1963; 1,568
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,570
ANNUALLY, FROM JANUARY 1, 1964, TO AND INCLUDING DECEMBER 31, 1,572
1969;
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,575
JANUARY 1, 1970, TO AND INCLUDING THE DAY BEFORE THE EFFECTIVE
DATE OF THIS SECTION; 1,576
(5) AN AMOUNT DETERMINED BY THE PUBLIC EMPLOYEES 1,578
RETIREMENT BOARD THAT IS NOT GREATER THAN FOUR PER CENT PER 1,579
ANNUM, COMPOUNDED ANNUALLY, ON AND AFTER THE EFFECTIVE DATE OF 1,580
THIS SECTION.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 1,582
FOR THE PURPOSE OF DETERMINING THE RESERVE VALUE OF A 1,583
CONTRIBUTOR'S ANNUITY, THE RATE OF INTEREST SHALL BE AS FOLLOWS: 1,584
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,586
CONTRIBUTORS RETIRING BEFORE OCTOBER 1, 1956; 1,587
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,589
CONTRIBUTORS RETIRING ON OR AFTER OCTOBER 1, 1956, BUT BEFORE 1,591
JANUARY 1, 1964;
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,593
ANNUALLY, FOR CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1964, 1,594
BUT BEFORE JANUARY 1, 1970; 1,595
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,597
CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1970, BUT BEFORE THE 1,599
EFFECTIVE DATE OF THIS SECTION;
(5) AN AMOUNT DETERMINED BY THE BOARD THAT IS NOT GREATER 1,601
THAN FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,602
CONTRIBUTORS RETIRING ON OR AFTER THE EFFECTIVE DATE OF THIS 1,603
SECTION.
(C) FOR A PERS RETIRANT WHO MAKES AN ELECTION UNDER 1,605
DIVISION (C)(1)(a) OF SECTION 145.38 OF THE REVISED CODE OR AN 1,607
40
OTHER SYSTEM RETIRANT, AS THOSE TERMS ARE DEFINED IN SECTION 1,608
145.38 OF THE REVISED CODE, THE RATE OF INTEREST SHALL BE THE 1,609
CURRENT ACTUARIAL ASSUMPTION RATE OF INTEREST, AS DETERMINED BY 1,610
THE BOARD'S ACTUARY, FOR THE PURPOSES DESCRIBED IN DIVISIONS (A) 1,611
AND (B) OF THIS SECTION.
Sec. 3307.41. To coordinate and integrate membership in 1,620
the state retirement systems, the following provisions apply: 1,621
(A) As used in this section: 1,623
(1) "Retirement systems" means the public employees 1,625
retirement system, the state teachers retirement system, and the 1,626
school employees retirement system. 1,627
(2) In addition to the meaning given in division (L) of 1,629
section 3307.01 of the Revised Code, "disability benefit" means 1,630
"disability benefit" as defined in sections 145.01 and 3309.01 of 1,631
the Revised Code. 1,632
(B) At the member's option, total contributions and 1,634
service credit in all retirement systems shall be used in 1,635
determining the eligibility for benefits. If total contributions 1,636
and service credit are combined, the following provisions apply: 1,637
(1) Service retirement or a disability benefit is 1,639
effective on the first day of the month next following the later 1,640
of: 1,641
(a) The last day for which compensation was paid; 1,643
(b) The attainment of minimum age or service credit for 1,645
benefits provided under this section. 1,646
(2) "Total service credit" includes the total credit in 1,648
all retirement systems except that such credit shall not exceed 1,649
one year for any period of twelve months. 1,650
(3) In determining eligibility for a disability benefit, 1,652
the medical examiner's report to the board of any retirement 1,653
system, showing that the member's disability incapacitates him 1,654
THE MEMBER for the performance of duty, may be accepted as 1,656
sufficient for granting a disability benefit. 1,657
(4) The retirement system in which the member had the 1,659
41
greatest service credit, without adjustment, shall determine and 1,660
pay the total benefit. If his THE MEMBER'S credit is equal in 1,661
two or more retirement systems, the system having the member's 1,663
largest total contributions shall determine and pay the total 1,664
benefit.
(5) In determining the total credit to be used in 1,666
calculating a benefit, credit shall not be reduced below that 1,667
certified by the system or systems transferring credit, except 1,668
that such total combined service credit shall not exceed one year 1,669
of credit for any one "year" as defined in the statute governing 1,670
the system making the calculation. 1,671
(6) The retirement system determining and paying the 1,673
benefit shall receive from the other system or systems the 1,674
member's refundable account at retirement or the effective date 1,675
of a disability benefit plus an equal amount from the employers' 1,676
trust fund EQUAL TO THE MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST 1,677
CREDITED UNDER SECTION 145.471, 145.472, OR 3307.80 OF THE 1,678
REVISED CODE.
(a) The annuity rates and mortality tables of the 1,680
retirement system making the calculation and paying the benefit 1,681
shall be applicable. 1,682
(b) Deposits made for the purchase of additional income, 1,684
with guaranteed interest, upon the member's request, shall be 1,685
transferred to the retirement system paying the regular benefit. 1,686
The return upon such deposits shall be that offered by the 1,687
retirement system making the calculation and paying the regular 1,688
benefit. 1,689
(C) A person receiving a benefit under this section, who 1,691
accepts employment amenable to coverage in any retirement system 1,692
that participated in his THE PERSON'S combined benefit, shall be 1,693
subject to the applicable provisions of law governing such 1,695
re-employment. If the person is subject to section 3307.381 of 1,696
the Revised Code and exceeds the limits on re-employment 1,697
established by that section, the retirement system paying a 1,698
42
combined benefit shall terminate the entire pension portion of 1,699
the benefit for the period of re-employment that exceeds the 1,700
limit in that section.
If a retirant should be paid any amount to which he THE 1,702
RETIRANT is not entitled under the applicable provisions of law 1,704
governing such re-employment, such amount shall be recouped by 1,705
the retirement system paying such benefit by utilizing any 1,706
recovery procedure available under the law of the retirement 1,707
system covering such re-employment. 1,708
Sec. 3309.35. (A) As used in this section: 1,717
(1) "State retirement system" means the public employees 1,719
retirement system, state teachers retirement system, or school 1,720
employees retirement system. 1,721
(2) "Total service credit" means all service credit earned 1,723
in all state retirement systems, except credit for service 1,724
subject to section 3309.341 of the Revised Code. Total service 1,725
credit shall not exceed one year of credit for any twelve-month 1,726
period. 1,727
(3) In addition to the meaning given in division (O) of 1,729
section 3309.01 of the Revised Code, "disability benefit" means 1,730
"disability benefit" as defined in sections 145.01 and 3307.01 of 1,731
the Revised Code. 1,732
(B) To coordinate and integrate membership in the state 1,734
retirement systems, the following provisions apply: 1,735
(1) At the option of a member, total contributions and 1,737
service credit in all state retirement systems shall be used in 1,738
determining the eligibility and total retirement or disability 1,739
benefit payable. When total contributions and service credit are 1,740
so combined, the following provisions apply: 1,741
(a) Service and commuted service retirement or a 1,743
disability benefit is effective no sooner than the first day of 1,744
the month next following the last day of employment for which 1,745
compensation was paid. If the application is filed after that 1,746
date, the board may retire the member on the first day of the 1,747
43
month next following the last day of employment for which 1,748
compensation was paid. 1,749
(b) In determining eligibility for a disability benefit, 1,751
the medical examiner's report to the retirement board of any 1,752
state retirement system, showing that the member's disability 1,753
incapacitates him THE MEMBER for the performance of duty, may be 1,754
accepted by the state retirement boards as sufficient for 1,756
granting a disability benefit. 1,757
(c) The state retirement system in which the member had 1,759
the greatest service credit, without adjustment, shall determine 1,760
and pay the total retirement or disability benefit. Where his 1,761
THE MEMBER'S credit is equal in two or more state retirement 1,763
systems, the system having the largest total contributions of the 1,764
member shall determine and pay the total benefit. 1,765
(d) In determining the total credit to be used in 1,767
calculating a retirement allowance or disability benefit, credit 1,768
shall not be reduced below that certified by the system or 1,769
systems transferring credit, except that such total combined 1,770
service credit shall not exceed one year of credit for any one 1,771
"year" as defined in the law of the system making the 1,772
calculation. 1,773
(e) The state retirement system determining and paying a 1,775
retirement or disability benefit shall receive from the other 1,776
system or systems the member's refundable account at retirement 1,777
or the effective date of a disability benefit plus an equal 1,778
amount from the employers' trust fund EQUAL TO THE MEMBER'S 1,779
REFUNDABLE ACCOUNT LESS INTEREST CREDITED UNDER SECTION 145.471, 1,780
145.472, OR 3307.80 OF THE REVISED CODE. 1,781
(i) The annuity rates and mortality tables of the state 1,783
retirement system making the calculation and paying the benefit 1,784
shall be exclusively applicable. 1,785
(ii) Deposits made for the purchase of an additional 1,787
annuity, and including guaranteed interest, upon the request of 1,788
the member, shall be transferred to the state retirement system 1,789
44
paying the retirement or disability benefit. The return upon 1,790
such deposits shall be that offered by the state retirement 1,791
system making the calculation and paying the retirement or 1,792
disability benefit. 1,793
(C) A former member receiving a retirement or disability 1,795
benefit under this section, who accepts employment amenable to 1,796
coverage in any state retirement system that participated in his 1,797
THE MEMBER'S combined benefit, shall be subject to the applicable 1,799
provisions of law governing such re-employment. If the former 1,800
member is subject to section 3307.381 of the Revised Code and 1,801
exceeds the limits on re-employment established by that section, 1,802
the state retirement system paying a combined benefit shall 1,803
terminate the entire pension portion of the benefit for the 1,804
period of re-employment that exceeds the limit in that section. 1,805
If a former member should be paid any amount in a retirement 1,806
allowance, to which he THE FORMER MEMBER is not entitled under 1,807
the applicable provisions of law governing such re-employment, 1,809
such amount shall be recovered by the state retirement system 1,810
paying such allowance by utilizing any recovery procedure 1,811
available under the code provisions of the state retirement 1,812
system covering such re-employment. 1,813
(D) An SERS retirant or other system retirant, as defined 1,815
in section 3309.341 of the Revised Code, is not eligible to 1,816
receive any benefit under this section for service subject to 1,817
section 3309.341 of the Revised Code. 1,818
Section 2. That existing sections 145.01, 145.23, 145.31, 1,820
145.37, 145.38, 145.40, 145.43, 3307.41, and 3309.35 of the 1,821
Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect 1,823
on the one hundred eightieth day after the effective date of this 1,824
act.