As Passed by the Senate 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 144 5
1999-2000 6
SENATORS JOHNSON-DRAKE-HERINGTON-HOTTINGER-RAY-CARNES-DiDONATO- 8
SPADA-WACHTMANN-GARDNER-MUMPER 9
_________________________________________________________________ 11
A B I L L
To amend sections 145.01, 145.23, 145.31, 145.37, 13
145.38, 145.40, 145.43, 3307.41, and 3309.35 and 14
to enact sections 145.401, 145.471, 145.472, and 15
145.473 of the Revised Code to require the Public 16
Employees Retirement System to credit interest on 17
a member's contributions and, under certain
conditions, to pay an amount of employer 18
contributions on the death of a member or 19
withdrawal of a member's contributions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 145.01, 145.23, 145.31, 145.37, 23
145.38, 145.40, 145.43, 3307.41, and 3309.35 be amended and 24
sections 145.401, 145.471, 145.472, and 145.473 of the Revised 25
Code be enacted to read as follows:
Sec. 145.01. As used in this chapter: 34
(A) "Public employee" means: 36
(1) Any person holding an office, not elective, under the 38
state or any county, township, municipal corporation, park 39
district, conservancy district, sanitary district, health 40
district, metropolitan housing authority, state retirement board, 41
Ohio historical society, public library, county law library,
union cemetery, joint hospital, institutional commissary, state 42
university, or board, bureau, commission, council, committee, 43
authority, or administrative body as the same are, or have been, 44
created by action of the general assembly or by the legislative 45
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authority of any of the units of local government named in 46
division (A)(1) of this section, or employed and paid in whole or 47
in part by the state or any of the authorities named in division 48
(A)(1) of this section in any capacity not covered by section 50
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.
(2) A person who is a member of the public employees 52
retirement system and who continues to perform the same or 54
similar duties under the direction of a contractor who has 55
contracted to take over what before the date of the contract was 56
a publicly operated function. The governmental unit with which
the contract has been made shall be deemed the employer for the 57
purposes of administering this chapter. 58
(3) Any person who is an employee of a public employer, 60
notwithstanding that the person's compensation for that 61
employment is derived from funds of a person or entity other than 62
the employer. Credit for such service shall be included as total 63
service credit, provided that the employee makes the payments 64
required by this chapter, and the employer makes the payments
required by sections 145.48 and 145.51 of the Revised Code. 65
In all cases of doubt, the public employees retirement 67
board shall determine whether any person is a public employee, 68
and its decision is final.
(B) "Member" means any public employee, other than a 70
public employee excluded or exempted from membership in the 71
retirement system by section 145.03, 145.031, 145.032, 145.033, 72
145.034, 145.035, or 145.38 of the Revised Code. "Member" 73
includes a PERS retirant who becomes a member under division
(C)(2) of section 145.38 of the Revised Code. "Member" also 74
includes a disability benefit recipient. 75
(C) "Head of the department" means the elective or 77
appointive head of the several executive, judicial, and 78
administrative departments, institutions, boards, and commissions 79
of the state and local government as the same are created and 80
defined by the laws of this state or, in case of a charter
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government, by that charter. 81
(D) "Employer" or "public employer" means the state or any 83
county, township, municipal corporation, park district, 84
conservancy district, sanitary district, health district, 85
metropolitan housing authority, state retirement board, Ohio
historical society, public library, county law library, union 86
cemetery, joint hospital, institutional commissary, state medical 87
college, state university, or board, bureau, commission, council, 88
committee, authority, or administrative body as the same are, or 89
have been, created by action of the general assembly or by the 90
legislative authority of any of the units of local government
named in this division not covered by section 3307.01 or 3309.01 91
of the Revised Code. In addition, "employer" means the employer 92
of any public employee.
(E) "Prior service" means all service as a public employee 94
rendered before January 1, 1935, and all service as an employee 95
of any employer who comes within the state teachers retirement 96
system or of the school employees retirement system or of any 97
other retirement system established under the laws of this state 98
rendered prior to January 1, 1935, provided that if the employee
claiming the service was employed in any capacity covered by that 99
other system after that other system was established, credit for 100
the service may be allowed by the public employees retirement 101
system only when the employee has made payment, to be computed on 102
the salary earned from the date of appointment to the date 103
membership was established in the public employees retirement
system, at the rate in effect at the time of payment, and the 104
employer has made payment of the corresponding full liability as 105
provided by section 145.44 of the Revised Code. "Prior service" 106
also means all service credited for active duty with the armed 107
forces of the United States as provided in section 145.30 of the 108
Revised Code.
If an employee who has been granted prior service credit by 110
the public employees retirement system for service rendered prior 111
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to January 1, 1935, as an employee of a board of education 112
establishes, before retirement, one year or more of contributing 113
service in the state teachers retirement system or school 114
employees retirement system, then the prior service ceases to be
the liability of this system. 115
If the board determines that a position of any member in 117
any calendar year prior to January 1, 1935, was a part-time 118
position, the board shall determine what fractional part of a 119
year's credit shall be allowed by the following formula: 120
(1) When the member has been either elected or appointed 122
to an office the term of which was two or more years and for 123
which an annual salary is established, the fractional part of the 124
year's credit shall be computed as follows: 125
First, when the member's annual salary is one thousand 127
dollars or less, the service credit for each such calendar year 128
shall be forty per cent of a year.
Second, for each full one hundred dollars of annual salary 130
above one thousand dollars, the member's service credit for each 131
such calendar year shall be increased by two and one-half per 132
cent.
(2) When the member is paid on a per diem basis, the 134
service credit for any single year of the service shall be 135
determined by using the number of days of service for which the 136
compensation was received in any such year as a numerator and 137
using two hundred fifty days as a denominator.
(3) When the member is paid on an hourly basis, the 139
service credit for any single year of the service shall be 140
determined by using the number of hours of service for which the 141
compensation was received in any such year as a numerator and 142
using two thousand hours as a denominator.
(F) "Contributor" means any person who has an account in 144
the employees' savings fund created by section 145.23 of the 145
Revised Code.
(G) "Beneficiary" or "beneficiaries" means the estate or a 147
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person or persons who, as the result of the death of a member, 148
contributor, or retirant, qualify for or are receiving some right 149
or benefit under this chapter.
(H)(1) "Total service credit," except as provided in 151
section 145.37 of the Revised Code, means all service credited to 152
a member of the retirement system since last becoming a member, 153
including restored service credit as provided by section 145.31 154
of the Revised Code; credit purchased under sections 145.293 and 155
145.299 of the Revised Code; all the member's prior service
credit; all the member's military service credit computed as 156
provided in this chapter; all service credit established pursuant 157
to section 145.297 of the Revised Code; and any other service 158
credited under this chapter. In addition, "total service credit" 159
includes any period, not in excess of three years, during which a 160
member was out of service and receiving benefits under Chapters
4121. and 4123. of the Revised Code. For the exclusive purpose 161
of satisfying the service credit requirement and of determining 162
eligibility for benefits under sections 145.32, 145.33, 145.331, 163
145.35, 145.36, and 145.361 of the Revised Code, "five or more 164
years of total service credit" means sixty or more calendar 165
months of contributing service in this system.
(2) "One and one-half years of contributing service 167
credit," as used in division (B) of section 145.45 of the Revised 168
Code, also means eighteen or more calendar months of employment 169
by a municipal corporation that formerly operated its own 170
retirement plan for its employees or a part of its employees, 171
provided that all employees of that municipal retirement plan who 172
have eighteen or more months of such employment, upon 173
establishing membership in the public employees retirement 174
system, shall make a payment of the contributions they would have 175
paid had they been members of this system for the eighteen months 176
of employment preceding the date membership was established. 177
When that payment has been made by all such employee members, a 179
corresponding payment shall be paid into the employers' 180
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accumulation fund by that municipal corporation as the employer 181
of the employees. 182
(3) Where a member also is a member of the state teachers 184
retirement system or the school employees retirement system, or 185
both, except in cases of retirement on a combined basis pursuant 186
to section 145.37 of the Revised Code, service credit for any 187
period shall be credited on the basis of the ratio that
contributions to the public employees retirement system bear to 189
total contributions in all state retirement systems. 190
(4) Not more than one year of credit may be given for any 192
period of twelve months. 193
(5) "Ohio service credit" means credit for service that 195
was rendered to the state or any of its political subdivisions or 196
any employer.
(I) "Regular or current interest" means interest at any 198
rates for the respective funds and accounts as the public 199
employees retirement board may determine from time to time, 200
except as follows:
(1) Subsequent to December 31, 1958, the retirement board 202
shall discontinue the annual crediting of current interest to the 204
individual accounts of contributors. The noncrediting of current 205
interest shall not affect the rate of interest at retirement 206
guaranteed under division (I) of this section. 207
(2) The rate of interest credited on a contributor's 209
contributions at retirement shall be four per cent per annum, 210
compounded annually, to and including December 31, 1955; three 211
per cent per annum, compounded annually, from January 1, 1956, to 212
and including December 31, 1963; three and one-quarter per cent 213
per annum, compounded annually, from January 1, 1964, to and 214
including December 31, 1969; and thereafter four per cent per
annum, compounded annually. 215
In determining the reserve value for the purpose of 217
computing the amount of the contributor's annuity, the rate of 218
interest used in the annuity values shall be four per cent per 219
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annum, compounded annually, for contributors retiring before 220
October 1, 1956, and after December 31, 1969; three per cent per 221
annum, compounded annually, for contributors retiring between 223
October 1, 1956, and December 31, 1963; and three and one-quarter 224
per cent per annum, compounded annually, for contributors 225
retiring from January 1, 1964, to December 31, 1969. Interest on 226
contributions from contributors within any one calendar year 227
shall begin on the first day of the calendar year next following 228
and shall be computed at the end of each calendar year, except in 229
the case of a contributor who retires before the end of the year. 230
(J) "Accumulated contributions" means the sum of all 232
amounts credited to a contributor's individual account in the 233
employees' savings fund together with any current interest 234
thereon, but does not include the interest adjustment at 235
retirement CREDITED TO THE CONTRIBUTOR'S ACCOUNT UNDER SECTION 236
145.471 OR 145.472 OF THE REVISED CODE. 237
(K)(1) "Final average salary" means the quotient obtained 239
by dividing by three the sum of the three full calendar years of 240
contributing service in which the member's earnable salary was 241
highest, except that if the member has a partial year of 242
contributing service in the year the member's employment 243
terminates and the member's earnable salary for the partial year 244
is higher than for any comparable period in the three years, the 245
member's earnable salary for the partial year shall be 246
substituted for the member's earnable salary for the comparable 247
period during the three years in which the member's earnable 248
salary was lowest.
(2) If a member has less than three years of contributing 250
service, the member's final average salary shall be the member's 251
total earnable salary divided by the total number of years, 252
including any fraction of a year, of the member's contributing 253
service.
(3) For the purpose of calculating benefits payable to a 255
member qualifying for service credit under division (Z) of this 256
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section, "final average salary" means the total earnable salary 257
on which contributions were made divided by the total number of 258
years during which contributions were made, including any 259
fraction of a year. If contributions were made for less than 260
twelve months, "final average salary" means the member's total 261
earnable salary. 262
(L) "Annuity" means payments for life derived from 264
contributions made by a contributor and paid from the annuity and 265
pension reserve fund as provided in this chapter. All annuities 266
shall be paid in twelve equal monthly installments. 267
(M) "Annuity reserve" means the present value, computed 269
upon the basis of the mortality and other tables adopted by the 270
board, of all payments to be made on account of any annuity, or 271
benefit in lieu of any annuity, granted to a retirant as provided 272
in this chapter.
(N)(1) "Disability retirement" means retirement as 274
provided in section 145.36 of the Revised Code. 275
(2) "Disability allowance" means an allowance paid on 277
account of disability under section 145.361 of the Revised Code. 278
(3) "Disability benefit" means a benefit paid as 280
disability retirement under section 145.36 of the Revised Code, 281
as a disability allowance under section 145.361 of the Revised 282
Code, or as a disability benefit under section 145.37 of the 283
Revised Code.
(4) "Disability benefit recipient" means a member who is 285
receiving a disability benefit. 286
(O) "Age and service retirement" means retirement as 288
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 289
145.46 of the Revised Code.
(P) "Pensions" means annual payments for life derived from 291
contributions made by the employer that at the time of retirement 292
are credited into the annuity and pension reserve fund from the 293
employers' accumulation fund and paid from the annuity and 294
pension reserve fund as provided in this chapter. All pensions 295
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shall be paid in twelve equal monthly installments.
(Q) "Retirement allowance" means the pension plus that 297
portion of the benefit derived from contributions made by the 298
member.
(R)(1) Except as otherwise provided in division (R) of 301
this section, "earnable salary" means all salary, wages, and 302
other earnings paid to a contributor by reason of employment in a 303
position covered by the retirement system. The salary, wages,
and other earnings shall be determined prior to determination of 304
the amount required to be contributed to the employees' savings 305
fund under section 145.47 of the Revised Code and without regard 306
to whether any of the salary, wages, or other earnings are 307
treated as deferred income for federal income tax purposes. 308
"Earnable salary" includes the following:
(a) Payments made by the employer in lieu of salary, 310
wages, or other earnings for sick leave, personal leave, or 311
vacation used by the contributor;
(b) Payments made by the employer for the conversion of 313
sick leave, personal leave, and vacation leave accrued, but not 314
used if the payment is made during the year in which the leave is 316
accrued, except that payments made pursuant to section 124.383 or 317
124.386 of the Revised Code are not earnable salary;
(c) Allowances paid by the employer for full maintenance, 319
consisting of housing, laundry, and meals, as certified to the 320
retirement board by the employer or the head of the department 321
that employs the contributor;
(d) Fees and commissions paid under section 507.09 of the 323
Revised Code;
(e) Payments that are made under a disability leave 325
program sponsored by the employer and for which the employer is 326
required by section 145.296 of the Revised Code to make periodic 327
employer and employee contributions;
(f) Amounts included pursuant to divisions (K)(3) and (Y) 329
of this section.
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(2) "Earnable salary" does not include any of the 331
following:
(a) Fees and commissions, other than those paid under 333
section 507.09 of the Revised Code, paid as sole compensation for 334
personal services and fees and commissions for special services 335
over and above services for which the contributor receives a 336
salary;
(b) Amounts paid by the employer to provide life 338
insurance, sickness, accident, endowment, health, medical, 339
hospital, dental, or surgical coverage, or other insurance for 340
the contributor or the contributor's family, or amounts paid by 341
the employer to the contributor in lieu of providing the
insurance;
(c) Incidental benefits, including lodging, food, laundry, 343
parking, or services furnished by the employer, or use of the 344
employer's property or equipment, or amounts paid by the employer 345
to the contributor in lieu of providing the incidental benefits; 346
(d) Reimbursement for job-related expenses authorized by 348
the employer, including moving and travel expenses and expenses 349
related to professional development; 350
(e) Payments for accrued but unused sick leave, personal 352
leave, or vacation that are made at any time other than in the 354
year in which the sick leave, personal leave, or vacation was 355
accrued;
(f) Payments made to or on behalf of a contributor that 357
are in excess of the annual compensation that may be taken into 358
account by the retirement system under division (a)(17) of 359
section 401 of the "Internal Revenue Code of 1986," 100 Stat. 360
2085, 26 U.S.C.A. 401(a)(17), as amended;
(g) Payments made under division (B) or (D) of section 362
5923.05 of the Revised Code or Section 4 of Substitute Senate 363
Bill No. 3 of the 119th general assembly; 364
(h) Anything of value received by the contributor that is 366
based on or attributable to retirement or an agreement to retire, 367
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except that payments made on or before January 1, 1989, that are 368
based on or attributable to an agreement to retire shall be 369
included in earnable salary if both of the following apply: 370
(i) The payments are made in accordance with contract 372
provisions that were in effect prior to January 1, 1986; 373
(ii) The employer pays the retirement system an amount 375
specified by the retirement board equal to the additional 376
liability resulting from the payments. 377
(3) The retirement board shall determine by rule whether 379
any compensation not enumerated in division (R) of this section 380
is earnable salary, and its decision shall be final. 382
(S) "Pension reserve" means the present value, computed 384
upon the basis of the mortality and other tables adopted by the 385
board, of all payments to be made on account of any retirement 386
allowance or benefit in lieu of any retirement allowance, granted 387
to a member or beneficiary under this chapter.
(T)(1) "Contributing service" means all service credited 389
to a member of the system since January 1, 1935, for which 390
contributions are made as required by sections 145.47, 145.48, 391
and 145.483 of the Revised Code. In any year subsequent to 1934, 392
credit for any service shall be allowed by the following formula: 393
(a) For each month for which the member's earnable salary 395
is two hundred fifty dollars or more, allow one month's credit. 396
(b) For each month for which the member's earnable salary 398
is less than two hundred fifty dollars, allow a fraction of a 399
month's credit. The numerator of this fraction shall be the 400
earnable salary during the month, and the denominator shall be 401
two hundred fifty dollars, except that if the member's annual 402
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 403
calendar year of employment during which the member worked each 404
month. Division (T)(1)(b) of this section shall not reduce any 406
credit earned before January 1, 1985.
(2) Notwithstanding division (T)(1) of this section, an 408
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elected official who prior to January 1, 1980, was granted a full 409
year of credit for each year of service as an elected official 410
shall be considered to have earned a full year of credit for each 411
year of service regardless of whether the service was full-time 412
or part-time. The public employees retirement board has no
authority to reduce the credit. 413
(U) "State retirement board" means the public employees 415
retirement board, the school employees retirement board, or the 416
state teachers retirement board.
(V) "Retirant" means any former member who retires and is 418
receiving a monthly allowance as provided in sections 145.32, 419
145.33, 145.331, 145.34, and 145.46 of the Revised Code. 420
(W) "Employer contribution" means the amount paid by an 422
employer as determined by the employer rate including the normal 423
and deficiency contribution rates. 424
(X) "Public service terminates" means the last day for 426
which a public employee is compensated for services performed for 427
an employer or the date of the employee's death, whichever occurs 428
first.
(Y) When a member has been elected or appointed to an 430
office, the term of which is two or more years, for which an 431
annual salary is established, and in the event that the salary of 432
the office is increased and the member is denied the additional 433
salary by reason of any constitutional provision prohibiting an
increase in salary during a term of office, the member may elect 434
to have the amount of the member's contributions calculated upon 435
the basis of the increased salary for the office. At the 436
member's request, the board shall compute the total additional 437
amount the member would have contributed, or the amount by which 438
each of the member's contributions would have increased, had the 439
member received the increased salary for the office the member
holds. If the member elects to have the amount by which the 440
member's contribution would have increased withheld from the 441
member's salary, the member shall notify the employer, and the 442
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employer shall make the withholding and transmit it to the
retirement system. A member who has not elected to have that 443
amount withheld may elect at any time to make a payment to the 444
retirement system equal to the additional amount the member's 445
contribution would have increased, plus interest on that 446
contribution, compounded annually at a rate established by the 447
board and computed from the date on which the last contribution
would have been withheld from the member's salary to the date of 448
payment. A member may make a payment for part of the period for 449
which the increased contribution was not withheld, in which case 450
the interest shall be computed from the date the last 451
contribution would have been withheld for the period for which
the payment is made. Upon the payment of the increased 452
contributions as provided in this division, the increased annual 453
salary as provided by law for the office for the period for which 454
the member paid increased contributions thereon shall be used in 455
determining the member's earnable salary for the purpose of 456
computing the member's final average salary.
(Z) "Five years of service credit," for the exclusive 458
purpose of satisfying the service credit requirements and of 459
determining eligibility for benefits under section 145.33 of the 460
Revised Code, means employment covered under this chapter or 461
under a former retirement plan operated, recognized, or endorsed
by the employer prior to coverage under this chapter or under a 462
combination of the coverage. 464
(AA) "Deputy sheriff" means any person who is commissioned 466
and employed as a full-time peace officer by the sheriff of any 467
county, and has been so employed since on or before December 31, 468
1965, and whose primary duties are to preserve the peace, to 469
protect life and property, and to enforce the laws of this state; 470
any person who is or has been commissioned and employed as a
peace officer by the sheriff of any county since January 1, 1966, 471
and who has received a certificate attesting to the person's 472
satisfactory completion of the peace officer training school as 473
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required by section 109.77 of the Revised Code and whose primary 474
duties are to preserve the peace, protect life and property, and 475
enforce the laws of this state; or any person deputized by the
sheriff of any county and employed pursuant to section 2301.12 of 476
the Revised Code as a criminal bailiff or court constable who has 477
received a certificate attesting to the person's satisfactory 478
completion of the peace officer training school as required by 479
section 109.77 of the Revised Code and whose primary duties are 480
to preserve the peace, protect life and property, and enforce the 481
laws of this state.
(BB) "Township constable or police officer in a township 483
police department or district" means any person who is 484
commissioned and employed as a full-time peace officer pursuant 485
to Chapter 505. or 509. of the Revised Code, who has received a 486
certificate attesting to the person's satisfactory completion of
the peace officer training school as required by section 109.77 487
of the Revised Code, and whose primary duties are to preserve the 488
peace, protect life and property, and enforce the laws of this 489
state.
(CC) "Drug agent" means any person who is either of the 491
following:
(1) Employed full-time as a narcotics agent by a county 493
narcotics agency created pursuant to section 307.15 of the 494
Revised Code and has received a certificate attesting to the 495
satisfactory completion of the peace officer training school as 496
required by section 109.77 of the Revised Code;
(2) Employed full-time as an undercover drug agent as 498
defined in section 109.79 of the Revised Code and is in 499
compliance with section 109.77 of the Revised Code. 500
(DD) "Department of public safety enforcement agent" means 502
a full-time employee of the department of public safety who is 504
designated under section 5502.14 of the Revised Code as an 506
enforcement agent and who is in compliance with section 109.77 of 508
the Revised Code.
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(EE) "Natural resources law enforcement staff officer" 510
means a full-time employee of the department of natural resources 511
who is designated a natural resources law enforcement staff 512
officer under section 1501.013 of the Revised Code and is in 515
compliance with section 109.77 of the Revised Code.
(FF) "Park officer" means a full-time employee of the 517
department of natural resources who is designated a park officer 519
under section 1541.10 of the Revised Code and is in compliance 520
with section 109.77 of the Revised Code.
(GG) "Forest officer" means a full-time employee of the 522
department of natural resources who is designated a forest 524
officer under section 1503.29 of the Revised Code and is in 525
compliance with section 109.77 of the Revised Code.
(HH) "Preserve officer" means a full-time employee of the 528
department of natural resources who is designated a preserve 529
officer under section 1517.10 of the Revised Code and is in 531
compliance with section 109.77 of the Revised Code. 533
(II) "Wildlife officer" means a full-time employee of the 535
department of natural resources who is designated a wildlife 537
officer under section 1531.13 of the Revised Code and is in 538
compliance with section 109.77 of the Revised Code. 539
(JJ) "State watercraft officer" means a full-time employee 542
of the department of natural resources who is designated a state 543
watercraft officer under section 1547.521 of the Revised Code and 544
is in compliance with section 109.77 of the Revised Code. 545
(KK) "Park district police officer" means a full-time 547
employee of a park district who is designated pursuant to section 549
511.232 or 1545.13 of the Revised Code and is in compliance with 550
section 109.77 of the Revised Code.
(LL) "Conservancy district officer" means a full-time 552
employee of a conservancy district who is designated pursuant to 554
section 6101.75 of the Revised Code and is in compliance with 555
section 109.77 of the Revised Code.
(MM) "Municipal police officer" means a member of the 557
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organized police department of a municipal corporation who is 559
employed full-time, is in compliance with section 109.77 of the 560
Revised Code, and is not a member of the Ohio police and fire 561
pension fund. 562
(NN) "Ohio veterans' home police officer" means any person 565
who is employed at the Ohio veterans' home as a police officer 566
pursuant to section 5907.02 of the Revised Code and is in 567
compliance with section 109.77 of the Revised Code.
(OO) "Special police officer for a mental health 569
institution" means any person who is designated as such pursuant 571
to section 5119.14 of the Revised Code and is in compliance with 572
section 109.77 of the Revised Code.
(PP) "Special police officer for an institution for the 574
mentally retarded and developmentally disabled" means any person 576
who is designated as such pursuant to section 5123.13 of the 577
Revised Code and is in compliance with section 109.77 of the 578
Revised Code.
(QQ) "State university law enforcement officer" means any 580
person who is employed full-time as a state university law 582
enforcement officer pursuant to section 3345.04 of the Revised 583
Code and who is in compliance with section 109.77 of the Revised 584
Code.
(RR) "Hamilton county municipal court bailiff" means a 586
person appointed by the clerk of courts of the Hamilton county 588
municipal court under division (A)(3) of section 1901.32 of the 589
Revised Code who is employed full-time as a bailiff or deputy 590
bailiff, who has received a certificate attesting to the person's 591
satisfactory completion of the peace officer training school as
required by division (C) of section 109.77 of the Revised Code, 592
and whose primary duties are to preserve the peace, to protect 593
life and property, and to enforce the laws of this state. 594
(SS) Notwithstanding section 2901.01 of the Revised Code, 596
"law enforcement officer" means a sheriff, deputy sheriff, 598
township constable or police officer in a township police 599
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department or district, drug agent, department of public safety 600
enforcement agent, natural resources law enforcement staff
officer, park officer, forest officer, preserve officer, wildlife 602
officer, state watercraft officer, park district police officer, 603
conservancy district officer, Ohio veterans' home police officer, 604
special police officer for a mental health institution, special 605
police officer for an institution for the mentally retarded and 606
developmentally disabled, state university law enforcement
officer, Hamilton county municipal court bailiff, or municipal 607
police officer.
(TT) "Fiduciary" means a person who does any of the 609
following: 610
(1) Exercises any discretionary authority or control with 612
respect to the management of the system or with respect to the 613
management or disposition of its assets; 614
(2) Renders investment advice for a fee, direct or 616
indirect, with respect to money or property of the system; 617
(3) Has any discretionary authority or responsibility in 619
the administration of the system. 620
(UU) "Actuary" means an individual who satisfies all of 622
the following requirements: 624
(1) Is a member of the American academy of actuaries; 626
(2) Is an associate or fellow of the society of actuaries; 628
(3) Has a minimum of five years' experience in providing 630
actuarial services to public retirement plans. 631
Sec. 145.23. The funds hereby created are the employees' 640
savings fund, the employers' accumulation fund, the annuity and 641
pension reserve fund, the income fund, the survivors' benefit 642
fund, and the expense fund. 643
(A) The employees' savings fund is the fund in which shall 645
be accumulated contributions from the earnable salaries of 646
contributors for the purchase of annuities or retirement 647
allowances. 648
The accumulated contributions of a contributor returned to 650
18
him THE CONTRIBUTOR upon his withdrawal, or paid to his THE 652
CONTRIBUTOR'S estate or designated beneficiary in the event of 653
his death, shall be paid from the employees' savings fund. Any 654
accumulated contributions forfeited by failure of a member, or 655
his A MEMBER'S estate, to claim the same, shall be transferred 657
from the employees' savings fund to the income fund. The 658
accumulated contributions of a contributor shall be transferred 659
from the employees' savings fund to the annuity and pension 660
reserve fund in the event of his THE CONTRIBUTOR'S retirement. 661
(B) The employers' accumulation fund is the fund in which 663
shall be accumulated the reserves for the payment of all pensions 664
and disability benefits payable as provided in this chapter. The 665
amounts paid by the state of Ohio and by any employer defined in 666
division (A) of section 145.01 of the Revised Code because of the 667
normal contributions and deficiency contributions shall be 668
credited to the employers' accumulation fund. 669
Any payments made into the employers' accumulation fund by 671
a member as provided in section 145.31 of the Revised Code shall 672
be refunded to such member under the conditions specified in 673
section 145.40 of the Revised Code. 674
Upon the retirement of a contributor, the full amount of 676
his THE CONTRIBUTOR'S pension reserve shall be transferred from 677
the employers' accumulation fund to the annuity and pension 679
reserve fund.
(C) The annuity and pension reserve fund is the fund from 681
which shall be paid all pensions, disability benefits, annuities, 682
and benefits in lieu thereof, because of which reserves have been 683
transferred from the employees' savings fund and the employers' 684
accumulation fund. 685
Any contributor may deposit in the employees' savings fund, 687
subject to rules established from time to time by the public 688
employees retirement board, such amounts as he THE CONTRIBUTOR 689
desires, and, at the time of age and service retirement, shall 691
receive in return therefor, at his THE CONTRIBUTOR'S option, 692
19
either an annuity having a reserve equal to the amount deposited 694
or a cash refund of such amounts together with such interest as 695
may have been allowed by the public employees retirement board at 696
the end of each calendar year. Such deposits for additional 697
annuity together with such interest as may have been allowed by 698
the public employees retirement board at the end of each calendar 699
year shall be refunded in the event of death prior to retirement 700
or withdrawal of accumulated contributions as provided in 701
sections 145.40 and 145.43 of the Revised Code or upon 702
application of the contributor prior to age and service 703
retirement.
FOR DEPOSITS RECEIVED IN A CALENDAR YEAR, INTEREST SHALL BE 706
EARNED BEGINNING ON THE FIRST DAY OF THE CALENDAR YEAR NEXT
FOLLOWING AND ENDING ON THE LAST DAY OF THAT YEAR, EXCEPT THAT IN 708
THE CASE OF A PAYMENT UNDER THIS DIVISION MADE PRIOR TO THE LAST 710
DAY OF A YEAR, INTEREST SHALL BE EARNED ENDING ON THE LAST DAY OF 711
THE MONTH PRIOR TO THE DATE OF PAYMENT. THE BOARD SHALL CREDIT 712
INTEREST AT THE END OF THE CALENDAR YEAR IN WHICH IT IS EARNED. 713
(D) The income fund is the fund from which interest is 715
transferred and credited on the amounts in the funds described in 716
divisions (B), (C), and (F) of this section, and is a contingent 717
fund from which the special requirements of the funds may be paid 718
by transfer from this fund. All income derived from the 719
investment of funds by the public employees retirement board as 720
trustee under section 145.11 of the Revised Code, together with 721
all gifts and bequests, or the income therefrom, shall be paid 722
into this fund. 723
Any deficit occurring in any other fund that will not be 725
covered by payments to that fund, as otherwise provided in 726
Chapter 145. of the Revised Code, shall be paid by transfers of 727
amounts from the income fund to such fund or funds. If the 728
amount in the income fund is insufficient at any time to meet the 729
amounts payable therefrom, the amount of the deficiency, with 730
regular interest, shall be paid by an additional employer rate of 731
20
contributions as determined by the actuary, not to exceed 732
fourteen per cent, and the amount of the additional employer 733
contribution shall be credited to the income fund. 734
The public employees retirement board may accept gifts and 736
bequests. Any funds that may come into possession of the public 737
employees retirement board in this manner, or which may be 738
transferred from the employees' savings fund by reason of lack of 739
a claimant, or any surplus in any fund created by this section, 740
or any other funds whose disposition is not otherwise provided 741
for, shall be credited to the income fund. 742
(E) The expense fund is the fund from which shall be paid 744
the expenses of the administration of this chapter, exclusive of 745
amounts payable as retirement allowances and as other benefits. 746
(F) The survivors' benefit fund is the fund from which 748
shall be paid dependent survivor benefits provided by section 749
145.45 of the Revised Code. 750
Sec. 145.31. Except as provided in this section, a member 759
or former member of the public employees retirement system with 761
at least eighteen months of contributing service credit in this 762
system, the state teachers retirement system, the school 763
employees retirement system, the Ohio police and fire pension 765
fund, or the state highway patrol retirement system, after the 766
withdrawal of ACCUMULATED contributions and cancellation of 767
service credit in this system, may restore such service credit by 769
redepositing in the employees' savings fund the amount withdrawn, 770
with interest on such amount compounded annually at a rate to be 771
determined by the public employees retirement board from the 772
first day of the month of withdrawal to and including the month 773
of redeposit. The AMOUNT REDEPOSITED SHALL BE CREDITED AS 774
FOLLOWS:
(A) THE AMOUNT THAT EQUALS THE AMOUNT, IF ANY, INCLUDED 776
UNDER SECTION 145.401 OF THE REVISED CODE IN THE WITHDRAWAL OF 778
ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF THE REVISED 779
CODE SHALL BE CREDITED TO THE EMPLOYERS' ACCUMULATION FUND. 780
21
(B) THE REMAINING AMOUNT SHALL BE CREDITED TO THE MEMBER'S 782
ACCOUNT IN THE EMPLOYEES' SAVINGS FUND. 783
THE member may choose to purchase only part of such credit 786
in any one payment, subject to board rules. The EXCEPT FOR ANY 788
AMOUNT INCLUDED UNDER SECTION 145.401 OF THE REVISED CODE IN THE 789
WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF 790
THE REVISED CODE, THE total payment to restore canceled service 792
credit, plus any interest credited thereto, shall be considered 793
as accumulated contributions of the member. If a former member 794
is eligible to buy the service credit as a member of the Ohio 795
police and fire pension fund or state highway patrol retirement 797
system, the former member is ineligible to restore that service
credit under this section. 798
Any employee who has been refunded the employee's 800
accumulated contributions to the public employees retirement 801
system solely by reason of membership in a former firemen's 802
relief and pension fund or a former police relief and pension 803
fund may restore membership in the public employees retirement 804
system by redepositing with the system the amount refunded, with 805
interest on such amount compounded annually at a rate to be 806
determined by the board from the month of refund to and including 807
the month of redeposit. The member may choose to purchase only 808
part of such credit in any one payment, subject to board rules. 809
Sec. 145.37. (A) As used in this section: 819
(1) "State retirement system" means the public employees 821
retirement system, school employees retirement system, or state 822
teachers retirement system. 823
(2) "Total service credit" means all service credit earned 825
in the state retirement systems, except credit for service 826
subject to section 145.38 of the Revised Code. Total service 827
credit shall not exceed one year of credit for any twelve-month 828
period. 829
(3) In addition to the meaning given in division (N) of 831
section 145.01 of the Revised Code, "disability benefit" means 832
22
"disability benefit" as defined in sections 3307.01 and 3309.01 833
of the Revised Code. 834
(B) To coordinate and integrate membership in the state 836
retirement systems, the following provisions apply: 837
(1) At the option of a member, total contributions and 839
service credit in all state retirement systems, including amounts 840
paid to restore service credit under sections 145.311, 3307.282, 841
and 3309.261 of the Revised Code, shall be used in determining 843
the eligibility and total retirement or disability benefit 844
payable. When total contributions and service credit are so 845
combined, the following provisions apply:
(a) Age and service retirement or disability benefits are 847
effective on the first day of the month immediately following the 848
later of: 849
(i) The last day for which compensation was paid; 851
(ii) The attainment of minimum age or service credit 853
eligibility for benefits provided under this section. 854
(b) In determining eligibility for a disability benefit, 856
the medical examiner's report to the retirement board of any 857
state retirement system, showing that the member's disability 858
incapacitates the member for the performance of duty, may be 859
accepted by the state retirement boards as sufficient for 861
granting a disability benefit. 862
(c) The state retirement system in which the member had 864
the greatest service credit, without adjustment, shall determine 865
and pay the total retirement or disability benefit. Where the 866
member's credit is equal in two or more state retirement systems, 868
the system having the largest total contributions of the member 869
shall determine and pay the total benefit. 870
(d) In determining the total credit to be used in 872
calculating a retirement or disability benefit, credit shall not 873
be reduced below that certified by the system or systems 874
transferring credit, except that such total combined service 875
credit shall not exceed one year of credit for any one "year" as 876
23
defined in the law of the system making the calculation. 877
(e) The state retirement system determining and paying a 879
retirement or disability benefit shall receive from the other 880
system or systems the member's refundable account at retirement 881
or the effective date of a disability benefit plus an equal 882
amount from the employer's EMPLOYERS' accumulation fund EQUAL TO 884
THE MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST CREDITED UNDER 885
SECTION 145.471, 145.472, OR 3307.80 OF THE REVISED CODE. 886
(i) The annuity rates and mortality tables of the state 888
retirement system making the calculation and paying the benefit 889
shall be exclusively applicable. 890
(ii) Deposits made for the purpose of an additional 892
annuity, and including guaranteed interest, upon the request of 893
the member, shall be transferred to the state retirement system 894
paying the benefit. The return upon such deposits shall be that 895
offered by the state retirement system making the calculation and 896
paying the benefit. 897
(2) A former member receiving a retirement or disability 899
benefit under this section, who accepts employment amenable to 900
coverage in any state retirement system that participated in the 901
former member's combined benefit, shall be subject to the 903
applicable provisions of law governing such re-employment. If 904
the former member is subject to section 3307.381 of the Revised 905
Code and exceeds the limits on re-employment established by that 906
section, the state retirement system paying a combined benefit 907
shall terminate the entire pension portion of the benefit for the 908
period of re-employment that exceeds the limit in that section. 909
If a former member should be paid any amount in a retirement 910
benefit, to which the former member is not entitled under the 911
applicable provisions of law governing such re-employment, such 913
amount shall be recovered by the state retirement system paying 914
such benefit by utilizing any recovery procedure available under 915
the code provisions of the state retirement system covering such 916
re-employment.
24
(C) A PERS retirant or other system retirant, as defined 918
in section 145.38 of the Revised Code, is not eligible to receive 919
any benefit under this section for service subject to section 920
145.38 of the Revised Code. 921
Sec. 145.38. (A) As used in this section: 931
(1) "PERS retirant" means a former member of the public 933
employees retirement system who is receiving either of the 934
following:
(a) Age and service retirement benefits under section 936
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 937
(b) Age and service retirement benefits paid by the public 939
employees retirement system under section 145.37 of the Revised 940
Code. 941
(2) "Other system retirant" means both of the following: 943
(a) A member or former member of the Ohio police and 945
firemen's fire pension fund, state teachers retirement system, 946
school employees retirement system, state highway patrol 947
retirement system, or Cincinnati retirement system who is 948
receiving age and service or commuted age and service retirement 949
benefits or a disability benefit from a system of which the 950
person is a member or former member; 951
(b) A member or former member of the public employees 953
retirement system who is receiving age and service retirement 954
benefits or a disability benefit under section 145.37 of the 955
Revised Code paid by the school employees retirement system or 956
the state teachers retirement system. 957
(B)(1) Subject to this section, a PERS retirant or other 959
system retirant may be employed by a public employer. If so 960
employed, the PERS retirant or other system retirant shall 961
contribute to the public employees retirement system in 962
accordance with section 145.47 of the Revised Code, and the 963
employer shall make contributions in accordance with section 964
145.48 of the Revised Code. 965
(2) A public employer that employs a PERS retirant or 967
25
other system retirant, or enters into a contract for services as 968
an independent contractor with a PERS retirant who was employed 969
by the public employer at the time of the retirant's retirement 971
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 972
contract commences. Any overpayment of benefits to a PERS 973
retirant by the retirement system resulting from delay or failure 974
of the employer to give the notice shall be repaid to the 975
retirement system by the employer. 976
(3) On receipt of notice from a public employer that a 978
person who is an other system retirant has been employed, the 979
retirement system shall notify the retirement system of which the 980
other system retirant was a member of such employment. 981
(4)(a) A PERS retirant who has received a retirement 983
allowance for less than six months when employment subject to 984
this section commences shall forfeit the retirement allowance for 985
the period that begins on the date the employment commences and 986
ends on the date that is six months after the date on which the 987
retirement allowance commenced. Service and contributions for 988
that period shall not be included in calculation of any benefits 989
payable to the PERS retirant and those contributions shall be 990
refunded on the retirant's death or termination of the 991
employment. For purposes of this division, "employment" shall 992
include service for which the retirant or the retirant's 993
employer, or both, have waived any earnable salary for such 994
service.
(b) An other system retirant who has received a retirement 996
allowance or disability benefit for less than two months when 998
employment subject to this section commences shall forfeit the 999
retirement allowance or disability benefit for the period that 1,000
begins on the date the employment commences and ends on the date 1,001
that is two months after the date on which the retirement 1,002
allowance or disability benefit commenced. Service and 1,003
contributions for that period shall not be included in the
26
calculation of any benefits payable to the other system retirant 1,004
and those contributions shall be refunded on the retirant's death 1,006
or termination of the employment.
(5) On receipt of notice from the Ohio police and fire 1,009
pension fund, school employees retirement system, or state 1,011
teachers retirement system of the re-employment of a PERS 1,012
retirant, the public employees retirement system shall not pay,
or if paid, shall recover, the amount to be forfeited by the PERS 1,013
retirant in accordance with section 742.26, 3307.381, or 3309.341 1,014
of the Revised Code. 1,015
(6) A PERS retirant who enters into a contract to provide 1,017
services as an independent contractor to the employer by which 1,018
the retirant was employed at the time of retirement or, less than 1,020
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 1,021
contract with another public employer, shall forfeit the pension 1,022
portion of the retirement benefit for the period beginning the 1,023
first day of the month following the month in which the services 1,024
begin and ending on the first day of the month following the 1,025
month in which the services end. The annuity portion of the 1,026
retirement allowance shall be suspended on the day services under 1,027
the contract begin and shall accumulate to the credit of the 1,028
retirant to be paid in a single payment after services provided 1,029
under the contract terminate. A PERS retirant subject to 1,030
division (B)(6) of this section shall not contribute to the 1,031
retirement system and shall not become a member of the system. 1,032
(C)(1) Except as provided in division (C)(4) of this 1,034
section, a PERS retirant employed pursuant to this section shall 1,036
elect one of the following:
(a) To receive both compensation for the employment and a 1,039
retirement allowance;
(b) To receive compensation for the employment and forfeit 1,042
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 1,045
27
this section or elects to forfeit the pension portion of the 1,046
retirement allowance under division (C)(1)(b) of this section 1,047
shall become a new member of the public employees retirement 1,048
system with all the rights, privileges, and obligations of 1,049
membership, except that the new membership does not include 1,050
survivor benefits provided pursuant to section 145.45 of the 1,051
Revised Code OR ANY AMOUNT CALCULATED UNDER SECTION 145.401 OF 1,052
THE REVISED CODE. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 1,053
month following commencement of the employment and shall 1,054
thereafter be forfeited until the first day of the first month 1,055
following termination of the employment. The annuity portion of 1,056
the retirement allowance shall be suspended on the first day of 1,057
the first month following commencement of the employment and 1,058
shall thereafter accumulate to the credit of the PERS retirant to 1,059
be paid in a single payment after termination of the employment. 1,060
The retirement allowance shall resume on the first day of the 1,061
first month following termination of the employment. On 1,062
termination of the employment, the PERS retirant shall elect to 1,063
receive either a refund of the retirant's contributions to the 1,065
retirement system during the period of employment subject to this 1,066
section or a supplemental retirement allowance based on the 1,067
retirant's contributions and service credit for that period of 1,068
employment.
(3) Except as provided in division (B)(4) of this section, 1,070
there shall be no suspension or forfeiture of any portion of the 1,071
retirement allowance payable to other system retirants or to PERS 1,072
retirants who make an election under division (C)(1)(a) of this 1,073
section. 1,074
(4) A PERS retirant shall elect division (C)(1)(b) of this 1,077
section if both of the following apply:
(a) The retirant held elective office in this state, or in 1,079
any municipal corporation, county, or other subdivision of this 1,080
state at the time of retirement under Chapter 145. of the Revised 1,081
28
Code;
(b) The retirant was elected or appointed to the same 1,083
office for the remainder of the term or the term immediately 1,084
following the term during which the retirement occurred. 1,085
(D)(1) On termination of employment under this section, 1,087
the PERS retirant who makes an election under division (C)(1)(a) 1,088
of this section or other system retirant may file an application 1,089
with the public employees retirement system for a benefit under 1,090
this division, which shall consist of a single life annuity 1,091
having a reserve equal to the amount of the retirant's 1,092
accumulated contributions for the period of employment and an 1,093
equal amount of the employer's contributions. The PERS retirant 1,094
or other system retirant shall elect either to receive the 1,095
benefit as a monthly annuity for life or a lump-sum payment 1,096
discounted to the present value using the current actuarial 1,097
assumption rate of interest, except that if the monthly annuity 1,098
would be less than twenty-five dollars per month, the retirant 1,099
shall receive a lump-sum payment. 1,100
(2) A benefit payable under this division shall commence 1,102
on the latest of the following: 1,103
(a) The last day for which compensation for employment 1,105
subject to this section was paid; 1,106
(b) Attainment by the PERS retirant or other system 1,108
retirant of age sixty-five; 1,109
(c) If the PERS retirant or other system retirant was 1,111
previously employed under this section and is receiving or 1,112
previously received a benefit under this division, completion of 1,113
a period of twelve months since the effective date of the last 1,114
benefit under this division. 1,115
(3)(a) If a PERS retirant or other system retirant dies 1,117
while employed in employment subject to this section, a lump-sum 1,118
payment calculated in accordance with division (D)(1) of this 1,119
section shall be paid to the retirant's beneficiary under 1,120
division (G) of this section. 1,121
29
(b) If at the time of death a PERS retirant or other 1,123
system retirant receiving a monthly annuity has received less 1,124
than the retirant would have received as a lump-sum payment, the 1,126
difference between the amount received and the amount that would 1,127
have been received as a lump-sum payment shall be paid to the 1,128
retirant's beneficiary under division (G) of this section. 1,129
(4)(a) A PERS retirant or other system retirant subject to 1,131
this division is not a member of the public employees retirement 1,132
system, does not have any of the rights, privileges, or 1,133
obligations of membership, except as specified in this section, 1,134
and, except as specified in division (D)(4)(b) of this section, 1,135
is not eligible to receive health, medical, hospital, or surgical 1,136
benefits under section 145.58 of the Revised Code for employment 1,137
subject to this section. No amount received under this division 1,138
shall be included in determining an additional benefit under 1,139
section 145.323 of the Revised Code or any other post-retirement 1,140
benefit increase. 1,141
(b) A PERS retirant who makes an election under division 1,143
(C)(1)(a) of this section shall receive primary health, medical, 1,144
hospital, or surgical insurance coverage from the retirant's 1,145
employer, if the employer provides coverage to other employees 1,146
performing comparable work. Neither the employer nor the PERS 1,147
retirant may waive the employer's coverage, except that the PERS 1,148
retirant may waive the employer's coverage if the retirant has 1,149
coverage comparable to that provided by the employer from a 1,150
source other than the employer or the public employees retirement 1,151
system. If a claim is made, the employer's coverage shall be the 1,152
primary coverage and shall pay first. The benefits provided 1,153
under section 145.58 of the Revised Code shall pay only those 1,154
medical expenses not paid through the employer's coverage or 1,155
coverage the PERS retirant receives through a source other than 1,156
the retirement system. 1,157
(E) If the disability benefit of an other system retirant 1,159
employed under this section is terminated, the retirant shall 1,160
30
become a member of the public employees retirement system, 1,161
effective on the first day of the month next following the 1,162
termination with all the rights, privileges, and obligations of 1,163
membership. If such person, after the termination of the 1,164
disability benefit, earns two years of service credit under this 1,165
system or under the Ohio police and fire pension fund, state 1,167
teachers retirement system, school employees retirement system, 1,168
or state highway patrol retirement system, the person's prior 1,169
contributions as an other system retirant under this section 1,170
shall be included in the person's total service credit as a 1,171
public employees retirement system member, and the person shall 1,172
forfeit all rights and benefits of this section. Not more than 1,173
one year of credit may be given for any period of twelve months. 1,174
(F) A PERS retirant who performs services for a public 1,176
employer as an independent contractor pursuant to a contract with 1,177
the employer shall not make contributions to the public employees 1,178
retirement system or become a member of the system. Except as 1,179
provided in division (B)(6) of this section, there shall be no 1,180
suspension or forfeiture of the retirant's retirement allowance. 1,181
(G) A PERS retirant or other system retirant employed 1,183
under this section may designate one or more persons as 1,184
beneficiary to receive any benefits payable under this section 1,185
due to death. The designation shall be in writing duly executed 1,187
on a form provided by the public employees retirement board, 1,188
signed by the PERS retirant or other system retirant, and filed 1,189
with the board prior to death. The last designation of a 1,190
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,191
dissolution, legal separation, withdrawal of account, birth of a 1,193
child, or adoption of a child revokes all previous designations. 1,194
If there is no designated beneficiary, the beneficiary is the 1,195
beneficiary determined under division (D) of section 145.43 of 1,196
the Revised Code. If any benefit payable under this section due 1,197
to the death of a PERS retirant or other system retirant is not 1,198
31
claimed by a beneficiary within five years after the death, the 1,199
amount payable shall be transferred to the income fund and 1,200
thereafter paid to the beneficiary or the estate of the PERS 1,201
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,203
by or eligibility for benefits of any person who on August 20, 1,204
1976, was receiving a disability benefit or service retirement 1,205
pension or allowance from a state or municipal retirement system 1,206
in Ohio and was a member of any other state or municipal 1,207
retirement system of this state. 1,208
(I) The public employees retirement board may adopt rules 1,210
to carry out this section. 1,211
Sec. 145.40. (A) Subject to the provisions of section 1,221
145.57 of the Revised Code, if a member elects to become exempt 1,222
from contribution to the public employees retirement system 1,223
pursuant to section 145.03 of the Revised Code or ceases to be a 1,224
public employee for any cause other than death, retirement, 1,225
receipt of a disability benefit, or election of an alternative 1,226
retirement plan under section 3305.05 of the Revised Code, upon 1,227
application the public employees retirement board shall pay the 1,229
member the accumulated contributions standing to the credit of 1,230
the member's individual account in the employees' savings fund, 1,232
plus any principal payment and interest on it the member may have 1,233
made to purchase additional service credit under this chapter or 1,235
Section 4 of Substitute Senate Bill 138 of the 117th general 1,236
assembly, AND PLUS ANY APPLICABLE AMOUNT CALCULATED UNDER SECTION 1,237
145.401 OF THE REVISED CODE, provided that all the following 1,238
apply:
(1) Three months have elapsed since the member's public 1,241
service, other than service exempted from contribution pursuant 1,242
to section 145.03 of the Revised Code, was terminated; 1,243
(2) The member has not returned to public service, other 1,245
than service exempted from contribution pursuant to section 1,246
145.03 of the Revised Code, during that three-month period; 1,247
32
(3) The member is not a member of the school employees 1,249
retirement system or the state teachers retirement system. 1,250
The payment of such accumulated contributions shall cancel 1,252
the total service credit of such member in the public employees 1,253
retirement system. 1,254
(B) This division applies to any member who ceases to be a 1,256
public employee by electing an alternative retirement plan 1,257
pursuant to section 3305.05 of the Revised Code and is not 1,258
otherwise employed as a public employee in a position to which 1,260
the election does not apply. For purposes of this division,
"continuously employed" has the same meaning as in section 1,261
3305.01 of the Revised Code. 1,262
(1) Subject to section 145.57 of the Revised Code, on the 1,264
application of a member to whom this division applies who is 1,266
continuously employed, the public employees retirement board 1,267
shall pay the accumulated contributions standing to the credit of 1,268
the member's individual account in the employees' savings fund,
plus any additional amounts described in division (A) of this 1,269
section, to the entity providing the member's alternative 1,270
retirement plan for application to that plan in accordance with 1,271
any contract the member has entered into for purposes of that 1,272
plan.
(2) Subject to section 145.57 of the Revised Code, on 1,274
application of a member to whom this division applies who has 1,276
ceased to be continuously employed, the public employees 1,277
retirement board shall pay the accumulated contributions standing 1,278
to the credit of the member's individual account in the
employees' savings fund, plus any additional amounts described in 1,279
division (A) of this section, to the entity providing the 1,280
member's alternative retirement plan for application to that plan 1,281
in accordance with any contract the member has entered into for 1,282
purposes of that plan, provided that all of the following apply: 1,283
(a) At least three months have elapsed since the date on 1,285
which the member ceased to be continuously employed; 1,286
33
(b) The member has not been employed as a public employee 1,288
during that three-month period; 1,289
(c) Division (A)(3) of this section applies to the member. 1,292
(3) Payment of a member's accumulated contributions under 1,294
this division cancels the member's total service credit in the 1,295
public employees retirement system. 1,296
Sec. 145.401. (A) AS USED IN THIS SECTION: 1,298
(1) "ELIGIBLE CONTRIBUTIONS" MEANS AMOUNTS CONTRIBUTED 1,300
UNDER SECTION 145.47 OF THE REVISED CODE, AMOUNTS RECEIVED FROM A 1,301
MEMBER OR TRANSFERRED UNDER SECTION 145.20, 145.295, 145.302, OR 1,302
145.44 OF THE REVISED CODE, AND ANY INTEREST CREDITED UNDER 1,304
SECTION 145.471 OR 145.472 OF THE REVISED CODE. "ELIGIBLE 1,306
CONTRIBUTIONS" DOES NOT INCLUDE CONTRIBUTIONS THAT WERE USED IN 1,307
THE PAYMENT OF A DISABILITY BENEFIT OR, AS PROVIDED IN RULES 1,308
ADOPTED BY THE BOARD, WERE REFUNDED TO A MEMBER BECAUSE THE 1,309
SYSTEM WAS NOT AUTHORIZED TO ACCEPT THE CONTRIBUTIONS.
(2) "SERVICE CREDIT" MEANS SERVICE CREDIT EARNED FOR 1,311
PERIODS FOR WHICH CONTRIBUTIONS WERE MADE UNDER SECTION 145.47 OF 1,312
THE REVISED CODE AND, IF APPLICABLE, PERIODS FOR WHICH SERVICE 1,313
CREDIT WAS PURCHASED OR TRANSFERRED UNDER SECTION 145.20, 1,314
145.295, 145.302, OR 145.44 OF THE REVISED CODE. 1,315
(B) IF A MEMBER HAS, OR AT THE TIME OF DEATH HAD, AT LEAST 1,317
FIVE YEARS OF SERVICE CREDIT, THE PUBLIC EMPLOYEES RETIREMENT 1,318
BOARD SHALL INCLUDE THE AMOUNT SPECIFIED IN DIVISION (B)(1) OR 1,319
(2) OF THIS SECTION IN THE AMOUNT PAYABLE UNDER SECTION 145.40 OF 1,320
THE REVISED CODE TO THE MEMBER, OR UNDER DIVISION (B) OF SECTION 1,322
145.43 OF THE REVISED CODE TO A BENEFICIARY OR BENEFICIARIES OF 1,323
THE MEMBER, UNLESS AT THE TIME OF DEATH THE MEMBER WAS A 1,324
DISABILITY BENEFIT RECIPIENT. THE AMOUNT SPECIFIED IN DIVISION 1,325
(B)(1) OR (2) OF THIS SECTION SHALL BE PAID FROM THE EMPLOYERS' 1,326
ACCUMULATION FUND. 1,327
(1) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,329
LEAST FIVE BUT LESS THAN TEN YEARS OF SERVICE CREDIT, THE AMOUNT 1,330
INCLUDED SHALL BE EQUAL TO THIRTY-THREE PER CENT OF THE MEMBER'S 1,332
34
ELIGIBLE CONTRIBUTIONS.
(2) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,334
LEAST TEN YEARS OF SERVICE CREDIT, THE AMOUNT INCLUDED SHALL BE 1,335
EQUAL TO SIXTY-SEVEN PER CENT OF THE MEMBER'S ELIGIBLE 1,336
CONTRIBUTIONS. 1,337
Sec. 145.43. (A) As used in this section and in section 1,346
145.45 of the Revised Code: 1,347
(1) "Child" means a biological or legally adopted child of 1,350
a deceased member. If a court hearing for an interlocutory 1,351
decree for adoption was held prior to the member's death, "child" 1,352
includes the child who was the subject of the hearing
notwithstanding the fact that the final decree of adoption, 1,353
adjudging the surviving spouse as the adoptive parent, is made 1,354
subsequent to the member's death.
(2) "Parent" is a parent or legally adoptive parent of a 1,357
deceased member. 1,358
(3) "Dependent" means a beneficiary who receives one-half 1,360
of the beneficiary's support from a member during the twelve 1,361
months prior to the member's death. 1,362
(4) "Surviving spouse" means an individual who establishes 1,365
a valid marriage to a member at the time of the member's death by 1,366
marriage certificate or pursuant to division (E) of this section. 1,367
(5) "Survivor" means a surviving spouse, child, or parent. 1,370
(B) Except as provided in division (C)(1) of section 1,373
145.45 of the Revised Code, should a member die before age and 1,375
service retirement, the member's accumulated contributions, any 1,376
deposits for purchase of additional annuity, and any payment the 1,378
member has made to restore previously forfeited service credit as 1,380
provided in section 145.31 of the Revised Code, AND ANY 1,381
APPLICABLE AMOUNT CALCULATED UNDER SECTION 145.401 OF THE REVISED 1,382
CODE, shall be paid to the person or persons the member has 1,383
designated in writing duly executed on a form provided by the 1,385
public employees retirement board, signed by the member, and 1,386
filed with the board prior to the member's death. A member may 1,387
35
designate two or more persons as beneficiaries jointly to be paid 1,389
the accumulated account in a lump sum. The last designation of 1,390
any beneficiary revokes all previous designations. The member's 1,391
marriage, divorce, marriage dissolution, legal separation, or 1,392
withdrawal of account, or the birth of the member's child, or 1,393
adoption of a child, shall constitute an automatic revocation of 1,395
the member's previous designation. If a deceased member was also 1,396
a member of the school employees retirement system or the state 1,397
teachers retirement system, the beneficiary last established 1,398
among the systems shall be the sole beneficiary in all the 1,399
systems.
If the accumulated contributions of a deceased member are 1,401
not claimed by a beneficiary or by the estate of the deceased 1,402
member within five years, the contributions shall be transferred 1,404
to the income fund and thereafter paid to the beneficiary or to 1,406
the member's estate upon application to the board. The board 1,407
shall formulate and adopt the necessary rules governing all 1,408
designations of beneficiaries. 1,409
(C) Except as provided in division (C)(1) of section 1,411
145.45 of the Revised Code, if a member dies before age and 1,413
service retirement and is not survived by a designated 1,414
beneficiary, any beneficiaries shall qualify in the following 1,416
order of precedence, with all attendant rights and privileges: 1,417
(1) Surviving spouse; 1,419
(2) Children share and share alike; 1,421
(3) A dependent parent of a member, if that parent takes 1,424
survivor benefits under division (B) of section 145.45 of the 1,426
Revised Code;
(4) Parents, share and share alike; 1,428
(5) Estate. 1,430
If the beneficiary is deceased or is not located within 1,432
ninety days, the beneficiary ceases to qualify for any benefit 1,433
and the beneficiary next in order of precedence shall qualify as 1,434
a beneficiary. 1,435
36
Any payment made to a beneficiary as determined by the 1,437
public employees retirement board shall be a full discharge and 1,438
release to the board from any future claims. 1,439
(D) Any amount due a retirant or disability benefit 1,441
recipient receiving a monthly benefit and unpaid to the retirant 1,443
or recipient at death shall be paid to the beneficiary designated 1,445
in writing on a form approved by the board, signed by the 1,446
retirant or recipient and filed with the board. If no such
designation has been filed, or if the designated beneficiary is 1,448
not located within ninety days, any amounts payable under this 1,450
chapter due to the death of the retirant or recipient shall be 1,452
paid in the following order of precedence to the retirant's or
recipient's: 1,453
(1) Surviving spouse; 1,455
(2) Children, share and share alike; 1,457
(3) Parents, share and share alike; 1,459
(4) Estate. 1,461
The payment shall be a full discharge and release to the 1,463
board from any future claim for the payment. 1,464
Any amount due a beneficiary receiving a monthly benefit 1,466
and unpaid to the beneficiary at the beneficiary's death shall be 1,468
paid to the beneficiary's estate. 1,469
(E) If the validity of marriage cannot be established to 1,471
the satisfaction of the retirement board for the purpose of 1,472
disbursing any amount due under this section or section 145.45 of 1,473
the Revised Code, the board may accept a decision rendered by a 1,474
court having jurisdiction in the state in which the member was 1,475
domiciled at the time of death that the relationship constituted 1,476
a valid marriage at the time of death, or the "spouse" would have 1,477
the same status as a widow or widower for purposes of sharing the 1,478
distribution of the member's intestate personal property. 1,479
(F) If the death of a member is caused by one of the 1,481
following beneficiaries, no amount due under this chapter to the 1,482
beneficiary shall be paid to the beneficiary in the absence of a 1,483
37
court order to the contrary filed with the board: 1,484
(1) A beneficiary who is convicted of, pleads guilty to, 1,486
or is found not guilty by reason of insanity of a violation of or 1,488
complicity in the violation of either of the following: 1,489
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 1,492
Code;
(b) An existing or former law of any other state, the 1,495
United States, or a foreign nation that is substantially 1,497
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 1,499
Code;.
(2) A beneficiary who is indicted for a violation of or 1,501
complicity in the violation of the sections or laws described in 1,502
division (F)(1)(a) or (b) of this section and is adjudicated 1,504
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 1,506
delinquent child by reason of committing an act that, if 1,507
committed by an adult, would be a violation of or complicity in 1,508
the violation of the sections or laws described in division 1,510
(F)(1)(a) or (b) of this section. 1,511
Sec. 145.471. (A)(1) ON AND AFTER THE EFFECTIVE DATE OF 1,513
THIS SECTION, THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL CREDIT 1,514
INTEREST TO THE INDIVIDUAL ACCOUNTS OF CONTRIBUTORS, EXCEPT THAT 1,516
INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL ACCOUNT OF A 1,517
PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 145.38 OF 1,518
THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE PERIOD 1,519
DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 OF THE 1,521
REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,523
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,524
(2) EXCEPT AS PROVIDED IN SECTION 145.472 OF THE REVISED 1,526
CODE, THE BOARD SHALL NOT CREDIT INTEREST TO INDIVIDUAL ACCOUNTS 1,527
FOR THE PERIOD BEGINNING DECEMBER 31, 1958, AND ENDING ON THE 1,528
EFFECTIVE DATE OF THIS SECTION.
(B) FOR CONTRIBUTIONS RECEIVED IN A CALENDAR YEAR, 1,530
38
INTEREST SHALL BE EARNED BEGINNING ON THE FIRST DAY OF THE 1,531
CALENDAR YEAR NEXT FOLLOWING AND ENDING ON THE LAST DAY OF THAT 1,532
YEAR, EXCEPT THAT INTEREST SHALL BE EARNED, IN THE CASE OF AN 1,533
APPLICATION FOR RETIREMENT OR PAYMENT UNDER SECTION 145.40 OR 1,535
145.43 OF THE REVISED CODE, ENDING ON THE LAST DAY OF THE MONTH 1,536
PRIOR TO RETIREMENT OR PAYMENT UNDER THOSE SECTIONS. THE BOARD 1,537
SHALL CREDIT INTEREST AT THE END OF THE CALENDAR YEAR IN WHICH IT
IS EARNED. 1,538
Sec. 145.472. THIS SECTION APPLIES TO INDIVIDUALS WHO ARE 1,540
CONTRIBUTORS ON THE EFFECTIVE DATE OF THIS SECTION. 1,541
(A) NOT LATER THAN THIRTY DAYS AFTER THE EFFECTIVE DATE OF 1,543
THIS SECTION, THE BOARD SHALL CREDIT INTEREST TO THE INDIVIDUAL 1,544
ACCOUNT OF EACH CONTRIBUTOR IN ACCORDANCE WITH THIS SECTION, 1,545
EXCEPT THAT INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL 1,546
ACCOUNT OF A PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 1,547
145.38 OF THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE 1,548
PERIOD DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 1,550
OF THE REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER 1,551
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,552
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,553
FOR CONTRIBUTORS WITH SERVICE CREDIT EARNED PRIOR TO 1,555
DECEMBER 31, 1981, THE BOARD MAY REFLECT THE COMPOUNDING OF 1,556
INTEREST BY USING FACTORS PROVIDED BY THE BOARD'S ACTUARY. 1,557
(B) THE INTEREST CREDITED UNDER THIS SECTION SHALL BE 1,559
CALCULATED ON ALL AMOUNTS ON DEPOSIT IN AN INDIVIDUAL'S ACCOUNT 1,561
IN THE EMPLOYEES' SAVINGS FUND AS FOLLOWS: 1,562
(1) IF THIS SECTION TAKES EFFECT ON OR BEFORE DECEMBER 31, 1,565
2000, INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON 1,566
DECEMBER 31, 1998.
(2) IF THIS SECTION TAKES EFFECT AFTER DECEMBER 31, 2000, 1,568
INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON DECEMBER 1,569
31, 1999. 1,570
Sec. 145.473. (A) EXCEPT AS PROVIDED IN DIVISION (C) OF 1,572
THIS SECTION, THE RATE OF INTEREST CREDITED TO INDIVIDUAL 1,573
39
ACCOUNTS OF CONTRIBUTORS UNDER SECTIONS 145.471 AND 145.472 OF 1,574
THE REVISED CODE SHALL BE AS FOLLOWS: 1,575
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, TO AND 1,577
INCLUDING DECEMBER 31, 1955; 1,578
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,581
JANUARY 1, 1956, TO AND INCLUDING DECEMBER 31, 1963; 1,582
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,584
ANNUALLY, FROM JANUARY 1, 1964, TO AND INCLUDING DECEMBER 31, 1,586
1969;
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,589
JANUARY 1, 1970, TO AND INCLUDING THE DAY BEFORE THE EFFECTIVE
DATE OF THIS SECTION; 1,590
(5) AN AMOUNT DETERMINED BY THE PUBLIC EMPLOYEES 1,592
RETIREMENT BOARD THAT IS NOT GREATER THAN SIX PER CENT PER ANNUM, 1,593
COMPOUNDED ANNUALLY, ON AND AFTER THE EFFECTIVE DATE OF THIS 1,594
SECTION.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 1,596
FOR THE PURPOSE OF DETERMINING THE RESERVE VALUE OF A 1,597
CONTRIBUTOR'S ANNUITY, THE RATE OF INTEREST SHALL BE AS FOLLOWS: 1,598
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,600
CONTRIBUTORS RETIRING BEFORE OCTOBER 1, 1956; 1,601
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,603
CONTRIBUTORS RETIRING ON OR AFTER OCTOBER 1, 1956, BUT BEFORE 1,605
JANUARY 1, 1964;
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,607
ANNUALLY, FOR CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1964, 1,608
BUT BEFORE JANUARY 1, 1970; 1,609
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,611
CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1970, BUT BEFORE THE 1,613
EFFECTIVE DATE OF THIS SECTION;
(5) AN AMOUNT DETERMINED BY THE BOARD BASED ON THE 1,615
RECOMMENDATION OF THE BOARD'S ACTUARY, COMPOUNDED ANNUALLY, FOR 1,616
CONTRIBUTORS RETIRING ON OR AFTER THE EFFECTIVE DATE OF THIS 1,617
SECTION.
40
(C) FOR A PERS RETIRANT WHO MAKES AN ELECTION UNDER 1,619
DIVISION (C)(1)(a) OF SECTION 145.38 OF THE REVISED CODE OR AN 1,621
OTHER SYSTEM RETIRANT, AS THOSE TERMS ARE DEFINED IN SECTION 1,622
145.38 OF THE REVISED CODE, THE RATE OF INTEREST SHALL BE THE 1,623
CURRENT ACTUARIAL ASSUMPTION RATE OF INTEREST, AS DETERMINED BY 1,624
THE BOARD'S ACTUARY, FOR THE PURPOSES DESCRIBED IN DIVISIONS (A) 1,625
AND (B) OF THIS SECTION.
Sec. 3307.41. To coordinate and integrate membership in 1,634
the state retirement systems, the following provisions apply: 1,635
(A) As used in this section: 1,637
(1) "Retirement systems" means the public employees 1,639
retirement system, the state teachers retirement system, and the 1,640
school employees retirement system. 1,641
(2) In addition to the meaning given in division (L) of 1,643
section 3307.01 of the Revised Code, "disability benefit" means 1,644
"disability benefit" as defined in sections 145.01 and 3309.01 of 1,645
the Revised Code. 1,646
(B) At the member's option, total contributions and 1,648
service credit in all retirement systems, including amounts paid 1,649
to restore service credit under sections 145.311, 3307.282, and 1,650
3309.261 of the Revised Code, shall be used in determining the 1,652
eligibility for benefits. If total contributions and service 1,653
credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is 1,655
effective on the first day of the month next following the later 1,656
of: 1,657
(a) The last day for which compensation was paid; 1,659
(b) The attainment of minimum age or service credit for 1,661
benefits provided under this section. 1,662
(2) "Total service credit" includes the total credit in 1,664
all retirement systems except that such credit shall not exceed 1,665
one year for any period of twelve months. 1,666
(3) In determining eligibility for a disability benefit, 1,668
the medical examiner's report to the board of any retirement 1,669
41
system, showing that the member's disability incapacitates the 1,670
member for the performance of duty, may be accepted as sufficient 1,672
for granting a disability benefit. 1,673
(4) The retirement system in which the member had the 1,675
greatest service credit, without adjustment, shall determine and 1,676
pay the total benefit. If the member's credit is equal in two or 1,678
more retirement systems, the system having the member's largest 1,679
total contributions shall determine and pay the total benefit. 1,680
(5) In determining the total credit to be used in 1,682
calculating a benefit, credit shall not be reduced below that 1,683
certified by the system or systems transferring credit, except 1,684
that such total combined service credit shall not exceed one year 1,685
of credit for any one "year" as defined in the statute governing 1,686
the system making the calculation. 1,687
(6) The retirement system determining and paying the 1,689
benefit shall receive from the other system or systems the 1,690
member's refundable account at retirement or the effective date 1,691
of a disability benefit plus an equal amount from the employers' 1,692
trust fund EQUAL TO THE MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST 1,693
CREDITED UNDER SECTION 145.471, 145.472, OR 3307.80 OF THE 1,694
REVISED CODE.
(a) The annuity rates and mortality tables of the 1,696
retirement system making the calculation and paying the benefit 1,697
shall be applicable. 1,698
(b) Deposits made for the purchase of additional income, 1,700
with guaranteed interest, upon the member's request, shall be 1,701
transferred to the retirement system paying the regular benefit. 1,702
The return upon such deposits shall be that offered by the 1,703
retirement system making the calculation and paying the regular 1,704
benefit. 1,705
(C) A person receiving a benefit under this section, who 1,707
accepts employment amenable to coverage in any retirement system 1,708
that participated in the person's combined benefit, shall be 1,709
subject to the applicable provisions of law governing such 1,711
42
re-employment. If the person is subject to section 3307.381 of 1,712
the Revised Code and exceeds the limits on re-employment 1,713
established by that section, the retirement system paying a 1,714
combined benefit shall terminate the entire pension portion of 1,715
the benefit for the period of re-employment that exceeds the 1,716
limit in that section.
If a retirant should be paid any amount to which the 1,718
retirant is not entitled under the applicable provisions of law 1,720
governing such re-employment, such amount shall be recouped by 1,721
the retirement system paying such benefit by utilizing any 1,722
recovery procedure available under the law of the retirement 1,723
system covering such re-employment. 1,724
Sec. 3309.35. (A) As used in this section: 1,734
(1) "State retirement system" means the public employees 1,736
retirement system, state teachers retirement system, or school 1,737
employees retirement system. 1,738
(2) "Total service credit" means all service credit earned 1,740
in all state retirement systems, except credit for service 1,741
subject to section 3309.341 of the Revised Code. Total service 1,742
credit shall not exceed one year of credit for any twelve-month 1,743
period. 1,744
(3) In addition to the meaning given in division (O) of 1,746
section 3309.01 of the Revised Code, "disability benefit" means 1,747
"disability benefit" as defined in sections 145.01 and 3307.01 of 1,748
the Revised Code. 1,749
(B) To coordinate and integrate membership in the state 1,751
retirement systems, at the option of a member, total 1,753
contributions and service credit in all state retirement systems, 1,754
including amounts paid to restore service credit under sections 1,755
145.311, 3307.282, and 3309.261 of the Revised Code, shall be 1,756
used in determining the eligibility and total retirement or 1,757
disability benefit payable. When total contributions and service 1,758
credit are so combined, the following provisions apply: 1,759
(1) Service and commuted service retirement or a 1,761
43
disability benefit is effective no sooner than the first day of 1,762
the month next following the last day of employment for which 1,763
compensation was paid. If the application is filed after that 1,764
date, the board may retire the member on the first day of the 1,765
month next following the last day of employment for which 1,766
compensation was paid. 1,767
(2) In determining eligibility for a disability benefit, 1,769
the medical examiner's report to the retirement board of any 1,770
state retirement system, showing that the member's disability 1,771
incapacitates the member for the performance of duty, may be 1,772
accepted by the state retirement boards as sufficient for 1,774
granting a disability benefit. 1,775
(3) The state retirement system in which the member had 1,777
the greatest service credit, without adjustment, shall determine 1,778
and pay the total retirement or disability benefit. Where the 1,779
member's credit is equal in two or more state retirement systems, 1,781
the system having the largest total contributions of the member 1,782
shall determine and pay the total benefit. 1,783
(4) In determining the total credit to be used in 1,785
calculating a retirement allowance or disability benefit, credit 1,786
shall not be reduced below that certified by the system or 1,787
systems transferring credit, except that such total combined 1,788
service credit shall not exceed one year of credit for any one 1,789
"year" as defined in the law of the system making the 1,790
calculation. 1,791
(5) The state retirement system determining and paying a 1,793
retirement or disability benefit shall receive from the other 1,794
system or systems the member's refundable account at retirement 1,795
or the effective date of a disability benefit plus an equal 1,796
amount from the employers' trust fund EQUAL TO THE MEMBER'S 1,797
REFUNDABLE ACCOUNT LESS THE INTEREST CREDITED UNDER SECTION 1,798
145.471, 145.472, OR 3307.80 OF THE REVISED CODE. 1,799
(a) The annuity rates and mortality tables of the state 1,801
retirement system making the calculation and paying the benefit 1,802
44
shall be exclusively applicable. 1,803
(b) Deposits made for the purchase of an additional 1,805
annuity, and including guaranteed interest, upon the request of 1,806
the member, shall be transferred to the state retirement system 1,807
paying the retirement or disability benefit. The return upon 1,808
such deposits shall be that offered by the state retirement 1,809
system making the calculation and paying the retirement or 1,810
disability benefit. 1,811
(C) A former member receiving a retirement or disability 1,813
benefit under this section, who accepts employment amenable to 1,814
coverage in any state retirement system that participated in the 1,815
member's combined benefit, shall be subject to the applicable 1,817
provisions of law governing such re-employment. If the former 1,818
member is subject to section 3307.381 of the Revised Code and 1,819
exceeds the limits on re-employment established by that section, 1,820
the state retirement system paying a combined benefit shall 1,821
terminate the entire pension portion of the benefit for the 1,822
period of re-employment that exceeds the limit in that section. 1,823
If a former member should be paid any amount in a retirement 1,824
allowance, to which the former member is not entitled under the 1,826
applicable provisions of law governing such re-employment, such 1,827
amount shall be recovered by the state retirement system paying 1,828
such allowance by utilizing any recovery procedure available 1,829
under the code provisions of the state retirement system covering 1,830
such re-employment. 1,831
(D) An SERS retirant or other system retirant, as defined 1,833
in section 3309.341 of the Revised Code, is not eligible to 1,834
receive any benefit under this section for service subject to 1,835
section 3309.341 of the Revised Code. 1,836
Section 2. That existing sections 145.01, 145.23, 145.31, 1,838
145.37, 145.38, 145.40, 145.43, 3307.41, and 3309.35 of the 1,839
Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect 1,841
on the one hundred eightieth day after the effective date of this 1,842
45
section.