As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 144 5
1999-2000 6
SENATORS JOHNSON-DRAKE-HERINGTON 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
2
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
3
(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
4
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
5
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
6
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
7
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
8
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.
9
(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
10
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
11
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
12
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
13
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
14
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 501
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
15
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
16
employed full-time, is in compliance with section 109.77 of the 559
Revised Code, and is not a member of the Ohio police and fire 560
pension fund. 561
(NN) "Ohio veterans' home police officer" means any person 564
who is employed at the Ohio veterans' home as a police officer 565
pursuant to section 5907.02 of the Revised Code and is in 566
compliance with section 109.77 of the Revised Code.
(OO) "Special police officer for a mental health 568
institution" means any person who is designated as such pursuant 570
to section 5119.14 of the Revised Code and is in compliance with 571
section 109.77 of the Revised Code.
(PP) "Special police officer for an institution for the 573
mentally retarded and developmentally disabled" means any person 575
who is designated as such pursuant to section 5123.13 of the 576
Revised Code and is in compliance with section 109.77 of the 577
Revised Code.
(QQ) "State university law enforcement officer" means any 579
person who is employed full-time as a state university law 581
enforcement officer pursuant to section 3345.04 of the Revised 582
Code and who is in compliance with section 109.77 of the Revised 583
Code.
(RR) "Hamilton county municipal court bailiff" means a 585
person appointed by the clerk of courts of the Hamilton county 587
municipal court under division (A)(3) of section 1901.32 of the 588
Revised Code who is employed full-time as a bailiff or deputy 589
bailiff, who has received a certificate attesting to the person's 590
satisfactory completion of the peace officer training school as
required by division (C) of section 109.77 of the Revised Code, 591
and whose primary duties are to preserve the peace, to protect 592
life and property, and to enforce the laws of this state. 593
(SS) Notwithstanding section 2901.01 of the Revised Code, 595
"law enforcement officer" means a sheriff, deputy sheriff, 597
township constable or police officer in a township police 598
department or district, drug agent, department of public safety 599
17
enforcement agent, natural resources law enforcement staff
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 Ohio police and fire pension 764
fund, or the state highway patrol retirement system, after the 765
withdrawal of ACCUMULATED contributions and cancellation of 766
service credit in this system, may restore such service credit by 768
redepositing in the employees' savings fund the amount withdrawn, 769
with interest on such amount compounded annually at a rate to be 770
determined by the public employees retirement board from the 771
first day of the month of withdrawal to and including the month 772
of redeposit. The AMOUNT REDEPOSITED SHALL BE CREDITED AS 773
FOLLOWS:
(A) THE AMOUNT THAT EQUALS THE AMOUNT, IF ANY, INCLUDED 775
UNDER SECTION 145.401 OF THE REVISED CODE IN THE WITHDRAWAL OF 777
ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF THE REVISED 778
CODE SHALL BE CREDITED TO THE EMPLOYERS' ACCUMULATION FUND. 779
(B) THE REMAINING AMOUNT SHALL BE CREDITED TO THE MEMBER'S 781
21
ACCOUNT IN THE EMPLOYEES' SAVINGS FUND. 782
THE member may choose to purchase only part of such credit 785
in any one payment, subject to board rules. The EXCEPT FOR ANY 787
AMOUNT INCLUDED UNDER SECTION 145.401 OF THE REVISED CODE IN THE 788
WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS UNDER SECTION 145.40 OF 789
THE REVISED CODE, THE total payment to restore canceled service 791
credit, plus any interest credited thereto, shall be considered 792
as accumulated contributions of the member. If a former member 793
is eligible to buy the service credit as a member of the Ohio 794
police and fire pension fund or state highway patrol retirement 796
system, the former member is ineligible to restore that service
credit under this section. 797
Any employee who has been refunded the employee's 799
accumulated contributions to the public employees retirement 800
system solely by reason of membership in a former firemen's 801
relief and pension fund or a former police relief and pension 802
fund may restore membership in the public employees retirement 803
system by redepositing with the system the amount refunded, with 804
interest on such amount compounded annually at a rate to be 805
determined by the board from the month of refund to and including 806
the month of redeposit. The member may choose to purchase only 807
part of such credit in any one payment, subject to board rules. 808
Sec. 145.37. (A) As used in this section: 818
(1) "State retirement system" means the public employees 820
retirement system, school employees retirement system, or state 821
teachers retirement system. 822
(2) "Total service credit" means all service credit earned 824
in the state retirement systems, except credit for service 825
subject to section 145.38 of the Revised Code. Total service 826
credit shall not exceed one year of credit for any twelve-month 827
period. 828
(3) In addition to the meaning given in division (N) of 830
section 145.01 of the Revised Code, "disability benefit" means 831
"disability benefit" as defined in sections 3307.01 and 3309.01 832
22
of the Revised Code. 833
(B) To coordinate and integrate membership in the state 835
retirement systems, the following provisions apply: 836
(1) At the option of a member, total contributions and 838
service credit in all state retirement systems, including amounts 839
paid to restore service credit under sections 145.311, 3307.282, 840
and 3309.261 of the Revised Code, shall be used in determining 842
the eligibility and total retirement or disability benefit 843
payable. When total contributions and service credit are so 844
combined, the following provisions apply:
(a) Age and service retirement or disability benefits are 846
effective on the first day of the month immediately following the 847
later of: 848
(i) The last day for which compensation was paid; 850
(ii) The attainment of minimum age or service credit 852
eligibility for benefits provided under this section. 853
(b) In determining eligibility for a disability benefit, 855
the medical examiner's report to the retirement board of any 856
state retirement system, showing that the member's disability 857
incapacitates the member for the performance of duty, may be 858
accepted by the state retirement boards as sufficient for 860
granting a disability benefit. 861
(c) The state retirement system in which the member had 863
the greatest service credit, without adjustment, shall determine 864
and pay the total retirement or disability benefit. Where the 865
member's credit is equal in two or more state retirement systems, 867
the system having the largest total contributions of the member 868
shall determine and pay the total benefit. 869
(d) In determining the total credit to be used in 871
calculating a retirement or disability benefit, credit shall not 872
be reduced below that certified by the system or systems 873
transferring credit, except that such total combined service 874
credit shall not exceed one year of credit for any one "year" as 875
defined in the law of the system making the calculation. 876
23
(e) The state retirement system determining and paying a 878
retirement or disability benefit shall receive from the other 879
system or systems the member's refundable account at retirement 880
or the effective date of a disability benefit plus an equal 881
amount from the employer's EMPLOYERS' accumulation fund EQUAL TO 883
THE MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST CREDITED UNDER 884
SECTION 145.471, 145.472, OR 3307.80 OF THE REVISED CODE. 885
(i) The annuity rates and mortality tables of the state 887
retirement system making the calculation and paying the benefit 888
shall be exclusively applicable. 889
(ii) Deposits made for the purpose of an additional 891
annuity, and including guaranteed interest, upon the request of 892
the member, shall be transferred to the state retirement system 893
paying the benefit. The return upon such deposits shall be that 894
offered by the state retirement system making the calculation and 895
paying the benefit. 896
(2) A former member receiving a retirement or disability 898
benefit under this section, who accepts employment amenable to 899
coverage in any state retirement system that participated in the 900
former member's combined benefit, shall be subject to the 902
applicable provisions of law governing such re-employment. If 903
the former member is subject to section 3307.381 of the Revised 904
Code and exceeds the limits on re-employment established by that 905
section, the state retirement system paying a combined benefit 906
shall terminate the entire pension portion of the benefit for the 907
period of re-employment that exceeds the limit in that section. 908
If a former member should be paid any amount in a retirement 909
benefit, to which the former member is not entitled under the 910
applicable provisions of law governing such re-employment, such 912
amount shall be recovered by the state retirement system paying 913
such benefit by utilizing any recovery procedure available under 914
the code provisions of the state retirement system covering such 915
re-employment.
(C) A PERS retirant or other system retirant, as defined 917
24
in section 145.38 of the Revised Code, is not eligible to receive 918
any benefit under this section for service subject to section 919
145.38 of the Revised Code. 920
Sec. 145.38. (A) As used in this section: 930
(1) "PERS retirant" means a former member of the public 932
employees retirement system who is receiving either of the 933
following:
(a) Age and service retirement benefits under section 935
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; 936
(b) Age and service retirement benefits paid by the public 938
employees retirement system under section 145.37 of the Revised 939
Code. 940
(2) "Other system retirant" means both of the following: 942
(a) A member or former member of the Ohio police and 944
firemen's fire pension fund, state teachers retirement system, 945
school employees retirement system, state highway patrol 946
retirement system, or Cincinnati retirement system who is 947
receiving age and service or commuted age and service retirement 948
benefits or a disability benefit from a system of which the 949
person is a member or former member; 950
(b) A member or former member of the public employees 952
retirement system who is receiving age and service retirement 953
benefits or a disability benefit under section 145.37 of the 954
Revised Code paid by the school employees retirement system or 955
the state teachers retirement system. 956
(B)(1) Subject to this section, a PERS retirant or other 958
system retirant may be employed by a public employer. If so 959
employed, the PERS retirant or other system retirant shall 960
contribute to the public employees retirement system in 961
accordance with section 145.47 of the Revised Code, and the 962
employer shall make contributions in accordance with section 963
145.48 of the Revised Code. 964
(2) A public employer that employs a PERS retirant or 966
other system retirant, or enters into a contract for services as 967
25
an independent contractor with a PERS retirant who was employed 968
by the public employer at the time of the retirant's retirement 970
shall notify the retirement board of the employment or contract
not later than the end of the month in which the employment or 971
contract commences. Any overpayment of benefits to a PERS 972
retirant by the retirement system resulting from delay or failure 973
of the employer to give the notice shall be repaid to the 974
retirement system by the employer. 975
(3) On receipt of notice from a public employer that a 977
person who is an other system retirant has been employed, the 978
retirement system shall notify the retirement system of which the 979
other system retirant was a member of such employment. 980
(4)(a) A PERS retirant who has received a retirement 982
allowance for less than six months when employment subject to 983
this section commences shall forfeit the retirement allowance for 984
the period that begins on the date the employment commences and 985
ends on the date that is six months after the date on which the 986
retirement allowance commenced. Service and contributions for 987
that period shall not be included in calculation of any benefits 988
payable to the PERS retirant and those contributions shall be 989
refunded on the retirant's death or termination of the 990
employment. For purposes of this division, "employment" shall 991
include service for which the retirant or the retirant's 992
employer, or both, have waived any earnable salary for such 993
service.
(b) An other system retirant who has received a retirement 995
allowance or disability benefit for less than two months when 997
employment subject to this section commences shall forfeit the 998
retirement allowance or disability benefit for the period that 999
begins on the date the employment commences and ends on the date 1,000
that is two months after the date on which the retirement 1,001
allowance or disability benefit commenced. Service and 1,002
contributions for that period shall not be included in the
calculation of any benefits payable to the other system retirant 1,003
26
and those contributions shall be refunded on the retirant's death 1,005
or termination of the employment.
(5) On receipt of notice from the Ohio police and fire 1,008
pension fund, school employees retirement system, or state 1,010
teachers retirement system of the re-employment of a PERS 1,011
retirant, the public employees retirement system shall not pay,
or if paid, shall recover, the amount to be forfeited by the PERS 1,012
retirant in accordance with section 742.26, 3307.381, or 3309.341 1,013
of the Revised Code. 1,014
(6) A PERS retirant who enters into a contract to provide 1,016
services as an independent contractor to the employer by which 1,017
the retirant was employed at the time of retirement or, less than 1,019
two months after the retirement allowance commences, begins
providing services as an independent contractor pursuant to a 1,020
contract with another public employer, shall forfeit the pension 1,021
portion of the retirement benefit for the period beginning the 1,022
first day of the month following the month in which the services 1,023
begin and ending on the first day of the month following the 1,024
month in which the services end. The annuity portion of the 1,025
retirement allowance shall be suspended on the day services under 1,026
the contract begin and shall accumulate to the credit of the 1,027
retirant to be paid in a single payment after services provided 1,028
under the contract terminate. A PERS retirant subject to 1,029
division (B)(6) of this section shall not contribute to the 1,030
retirement system and shall not become a member of the system. 1,031
(C)(1) Except as provided in division (C)(4) of this 1,033
section, a PERS retirant employed pursuant to this section shall 1,035
elect one of the following:
(a) To receive both compensation for the employment and a 1,038
retirement allowance;
(b) To receive compensation for the employment and forfeit 1,041
the pension portion of the retirement allowance.
(2) A PERS retirant who is described in division (C)(4) of 1,044
this section or elects to forfeit the pension portion of the 1,045
27
retirement allowance under division (C)(1)(b) of this section 1,046
shall become a new member of the public employees retirement 1,047
system with all the rights, privileges, and obligations of 1,048
membership, except that the new membership does not include 1,049
survivor benefits provided pursuant to section 145.45 of the 1,050
Revised Code OR ANY AMOUNT CALCULATED UNDER SECTION 145.401 OF 1,051
THE REVISED CODE. The pension portion of the PERS retirant's
retirement allowance shall cease on the first day of the first 1,052
month following commencement of the employment and shall 1,053
thereafter be forfeited until the first day of the first month 1,054
following termination of the employment. The annuity portion of 1,055
the retirement allowance shall be suspended on the first day of 1,056
the first month following commencement of the employment and 1,057
shall thereafter accumulate to the credit of the PERS retirant to 1,058
be paid in a single payment after termination of the employment. 1,059
The retirement allowance shall resume on the first day of the 1,060
first month following termination of the employment. On 1,061
termination of the employment, the PERS retirant shall elect to 1,062
receive either a refund of the retirant's contributions to the 1,064
retirement system during the period of employment subject to this 1,065
section or a supplemental retirement allowance based on the 1,066
retirant's contributions and service credit for that period of 1,067
employment.
(3) Except as provided in division (B)(4) of this section, 1,069
there shall be no suspension or forfeiture of any portion of the 1,070
retirement allowance payable to other system retirants or to PERS 1,071
retirants who make an election under division (C)(1)(a) of this 1,072
section. 1,073
(4) A PERS retirant shall elect division (C)(1)(b) of this 1,076
section if both of the following apply:
(a) The retirant held elective office in this state, or in 1,078
any municipal corporation, county, or other subdivision of this 1,079
state at the time of retirement under Chapter 145. of the Revised 1,080
Code;
28
(b) The retirant was elected or appointed to the same 1,082
office for the remainder of the term or the term immediately 1,083
following the term during which the retirement occurred. 1,084
(D)(1) On termination of employment under this section, 1,086
the PERS retirant who makes an election under division (C)(1)(a) 1,087
of this section or other system retirant may file an application 1,088
with the public employees retirement system for a benefit under 1,089
this division, which shall consist of a single life annuity 1,090
having a reserve equal to the amount of the retirant's 1,091
accumulated contributions for the period of employment and an 1,092
equal amount of the employer's contributions. The PERS retirant 1,093
or other system retirant shall elect either to receive the 1,094
benefit as a monthly annuity for life or a lump-sum payment 1,095
discounted to the present value using the current actuarial 1,096
assumption rate of interest, except that if the monthly annuity 1,097
would be less than twenty-five dollars per month, the retirant 1,098
shall receive a lump-sum payment. 1,099
(2) A benefit payable under this division shall commence 1,101
on the latest of the following: 1,102
(a) The last day for which compensation for employment 1,104
subject to this section was paid; 1,105
(b) Attainment by the PERS retirant or other system 1,107
retirant of age sixty-five; 1,108
(c) If the PERS retirant or other system retirant was 1,110
previously employed under this section and is receiving or 1,111
previously received a benefit under this division, completion of 1,112
a period of twelve months since the effective date of the last 1,113
benefit under this division. 1,114
(3)(a) If a PERS retirant or other system retirant dies 1,116
while employed in employment subject to this section, a lump-sum 1,117
payment calculated in accordance with division (D)(1) of this 1,118
section shall be paid to the retirant's beneficiary under 1,119
division (G) of this section. 1,120
(b) If at the time of death a PERS retirant or other 1,122
29
system retirant receiving a monthly annuity has received less 1,123
than the retirant would have received as a lump-sum payment, the 1,125
difference between the amount received and the amount that would 1,126
have been received as a lump-sum payment shall be paid to the 1,127
retirant's beneficiary under division (G) of this section. 1,128
(4)(a) A PERS retirant or other system retirant subject to 1,130
this division is not a member of the public employees retirement 1,131
system, does not have any of the rights, privileges, or 1,132
obligations of membership, except as specified in this section, 1,133
and, except as specified in division (D)(4)(b) of this section, 1,134
is not eligible to receive health, medical, hospital, or surgical 1,135
benefits under section 145.58 of the Revised Code for employment 1,136
subject to this section. No amount received under this division 1,137
shall be included in determining an additional benefit under 1,138
section 145.323 of the Revised Code or any other post-retirement 1,139
benefit increase. 1,140
(b) A PERS retirant who makes an election under division 1,142
(C)(1)(a) of this section shall receive primary health, medical, 1,143
hospital, or surgical insurance coverage from the retirant's 1,144
employer, if the employer provides coverage to other employees 1,145
performing comparable work. Neither the employer nor the PERS 1,146
retirant may waive the employer's coverage, except that the PERS 1,147
retirant may waive the employer's coverage if the retirant has 1,148
coverage comparable to that provided by the employer from a 1,149
source other than the employer or the public employees retirement 1,150
system. If a claim is made, the employer's coverage shall be the 1,151
primary coverage and shall pay first. The benefits provided 1,152
under section 145.58 of the Revised Code shall pay only those 1,153
medical expenses not paid through the employer's coverage or 1,154
coverage the PERS retirant receives through a source other than 1,155
the retirement system. 1,156
(E) If the disability benefit of an other system retirant 1,158
employed under this section is terminated, the retirant shall 1,159
become a member of the public employees retirement system, 1,160
30
effective on the first day of the month next following the 1,161
termination with all the rights, privileges, and obligations of 1,162
membership. If such person, after the termination of the 1,163
disability benefit, earns two years of service credit under this 1,164
system or under the Ohio police and fire pension fund, state 1,166
teachers retirement system, school employees retirement system, 1,167
or state highway patrol retirement system, the person's prior 1,168
contributions as an other system retirant under this section 1,169
shall be included in the person's total service credit as a 1,170
public employees retirement system member, and the person shall 1,171
forfeit all rights and benefits of this section. Not more than 1,172
one year of credit may be given for any period of twelve months. 1,173
(F) A PERS retirant who performs services for a public 1,175
employer as an independent contractor pursuant to a contract with 1,176
the employer shall not make contributions to the public employees 1,177
retirement system or become a member of the system. Except as 1,178
provided in division (B)(6) of this section, there shall be no 1,179
suspension or forfeiture of the retirant's retirement allowance. 1,180
(G) A PERS retirant or other system retirant employed 1,182
under this section may designate one or more persons as 1,183
beneficiary to receive any benefits payable under this section 1,184
due to death. The designation shall be in writing duly executed 1,186
on a form provided by the public employees retirement board, 1,187
signed by the PERS retirant or other system retirant, and filed 1,188
with the board prior to death. The last designation of a 1,189
beneficiary revokes all previous designations. The PERS
retirant's or other system retirant's marriage, divorce, marriage 1,190
dissolution, legal separation, withdrawal of account, birth of a 1,192
child, or adoption of a child revokes all previous designations. 1,193
If there is no designated beneficiary, the beneficiary is the 1,194
beneficiary determined under division (D) of section 145.43 of 1,195
the Revised Code. If any benefit payable under this section due 1,196
to the death of a PERS retirant or other system retirant is not 1,197
claimed by a beneficiary within five years after the death, the 1,198
31
amount payable shall be transferred to the income fund and 1,199
thereafter paid to the beneficiary or the estate of the PERS 1,200
retirant or other system retirant on application to the board.
(H) This section does not affect the receipt of benefits 1,202
by or eligibility for benefits of any person who on August 20, 1,203
1976, was receiving a disability benefit or service retirement 1,204
pension or allowance from a state or municipal retirement system 1,205
in Ohio and was a member of any other state or municipal 1,206
retirement system of this state. 1,207
(I) The public employees retirement board may adopt rules 1,209
to carry out this section. 1,210
Sec. 145.40. (A) Subject to the provisions of section 1,220
145.57 of the Revised Code, if a member elects to become exempt 1,221
from contribution to the public employees retirement system 1,222
pursuant to section 145.03 of the Revised Code or ceases to be a 1,223
public employee for any cause other than death, retirement, 1,224
receipt of a disability benefit, or election of an alternative 1,225
retirement plan under section 3305.05 of the Revised Code, upon 1,226
application the public employees retirement board shall pay the 1,228
member the accumulated contributions standing to the credit of 1,229
the member's individual account in the employees' savings fund, 1,231
plus any principal payment and interest on it the member may have 1,232
made to purchase additional service credit under this chapter or 1,234
Section 4 of Substitute Senate Bill 138 of the 117th general 1,235
assembly, AND PLUS ANY APPLICABLE AMOUNT CALCULATED UNDER SECTION 1,236
145.401 OF THE REVISED CODE, provided that all the following 1,237
apply:
(1) Three months have elapsed since the member's public 1,240
service, other than service exempted from contribution pursuant 1,241
to section 145.03 of the Revised Code, was terminated; 1,242
(2) The member has not returned to public service, other 1,244
than service exempted from contribution pursuant to section 1,245
145.03 of the Revised Code, during that three-month period; 1,246
(3) The member is not a member of the school employees 1,248
32
retirement system or the state teachers retirement system. 1,249
The payment of such accumulated contributions shall cancel 1,251
the total service credit of such member in the public employees 1,252
retirement system. 1,253
(B) This division applies to any member who ceases to be a 1,255
public employee by electing an alternative retirement plan 1,256
pursuant to section 3305.05 of the Revised Code and is not 1,257
otherwise employed as a public employee in a position to which 1,259
the election does not apply. For purposes of this division,
"continuously employed" has the same meaning as in section 1,260
3305.01 of the Revised Code. 1,261
(1) Subject to section 145.57 of the Revised Code, on the 1,263
application of a member to whom this division applies who is 1,265
continuously employed, the public employees retirement board 1,266
shall pay the accumulated contributions standing to the credit of 1,267
the member's individual account in the employees' savings fund,
plus any additional amounts described in division (A) of this 1,268
section, to the entity providing the member's alternative 1,269
retirement plan for application to that plan in accordance with 1,270
any contract the member has entered into for purposes of that 1,271
plan.
(2) Subject to section 145.57 of the Revised Code, on 1,273
application of a member to whom this division applies who has 1,275
ceased to be continuously employed, the public employees 1,276
retirement board shall pay the accumulated contributions standing 1,277
to the credit of the member's individual account in the
employees' savings fund, plus any additional amounts described in 1,278
division (A) of this section, to the entity providing the 1,279
member's alternative retirement plan for application to that plan 1,280
in accordance with any contract the member has entered into for 1,281
purposes of that plan, provided that all of the following apply: 1,282
(a) At least three months have elapsed since the date on 1,284
which the member ceased to be continuously employed; 1,285
(b) The member has not been employed as a public employee 1,287
33
during that three-month period; 1,288
(c) Division (A)(3) of this section applies to the member. 1,291
(3) Payment of a member's accumulated contributions under 1,293
this division cancels the member's total service credit in the 1,294
public employees retirement system. 1,295
Sec. 145.401. (A) AS USED IN THIS SECTION: 1,297
(1) "ELIGIBLE CONTRIBUTIONS" MEANS AMOUNTS CONTRIBUTED 1,299
UNDER SECTION 145.47 OF THE REVISED CODE, AMOUNTS RECEIVED FROM A 1,300
MEMBER OR TRANSFERRED UNDER SECTION 145.20, 145.295, 145.302, OR 1,301
145.44 OF THE REVISED CODE, AND ANY INTEREST CREDITED UNDER 1,303
SECTION 145.471 OR 145.472 OF THE REVISED CODE. "ELIGIBLE 1,305
CONTRIBUTIONS" DOES NOT INCLUDE CONTRIBUTIONS THAT WERE USED IN 1,306
THE PAYMENT OF A DISABILITY BENEFIT OR, AS PROVIDED IN RULES 1,307
ADOPTED BY THE BOARD, WERE REFUNDED TO A MEMBER BECAUSE THE 1,308
SYSTEM WAS NOT AUTHORIZED TO ACCEPT THE CONTRIBUTIONS.
(2) "SERVICE CREDIT" MEANS SERVICE CREDIT EARNED FOR 1,310
PERIODS FOR WHICH CONTRIBUTIONS WERE MADE UNDER SECTION 145.47 OF 1,311
THE REVISED CODE AND, IF APPLICABLE, PERIODS FOR WHICH SERVICE 1,312
CREDIT WAS PURCHASED OR TRANSFERRED UNDER SECTION 145.20, 1,313
145.295, 145.302, OR 145.44 OF THE REVISED CODE. 1,314
(B) IF A MEMBER HAS, OR AT THE TIME OF DEATH HAD, AT LEAST 1,316
FIVE YEARS OF SERVICE CREDIT, THE PUBLIC EMPLOYEES RETIREMENT 1,317
BOARD SHALL INCLUDE THE AMOUNT SPECIFIED IN DIVISION (B)(1) OR 1,318
(2) OF THIS SECTION IN THE AMOUNT PAYABLE UNDER SECTION 145.40 OF 1,319
THE REVISED CODE TO THE MEMBER, OR UNDER DIVISION (B) OF SECTION 1,321
145.43 OF THE REVISED CODE TO A BENEFICIARY OR BENEFICIARIES OF 1,322
THE MEMBER, UNLESS AT THE TIME OF DEATH THE MEMBER WAS A 1,323
DISABILITY BENEFIT RECIPIENT. THE AMOUNT SPECIFIED IN DIVISION 1,324
(B)(1) OR (2) OF THIS SECTION SHALL BE PAID FROM THE EMPLOYERS' 1,325
ACCUMULATION FUND. 1,326
(1) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,328
LEAST FIVE BUT LESS THAN TEN YEARS OF SERVICE CREDIT, THE AMOUNT 1,329
INCLUDED SHALL BE EQUAL TO THIRTY-THREE PER CENT OF THE MEMBER'S 1,331
ELIGIBLE CONTRIBUTIONS.
34
(2) IF THE MEMBER HAS, OR HAD AT THE TIME OF DEATH, AT 1,333
LEAST TEN YEARS OF SERVICE CREDIT, THE AMOUNT INCLUDED SHALL BE 1,334
EQUAL TO SIXTY-SEVEN PER CENT OF THE MEMBER'S ELIGIBLE 1,335
CONTRIBUTIONS. 1,336
Sec. 145.43. (A) As used in this section and in section 1,345
145.45 of the Revised Code: 1,346
(1) "Child" means a biological or legally adopted child of 1,349
a deceased member. If a court hearing for an interlocutory 1,350
decree for adoption was held prior to the member's death, "child" 1,351
includes the child who was the subject of the hearing
notwithstanding the fact that the final decree of adoption, 1,352
adjudging the surviving spouse as the adoptive parent, is made 1,353
subsequent to the member's death.
(2) "Parent" is a parent or legally adoptive parent of a 1,356
deceased member. 1,357
(3) "Dependent" means a beneficiary who receives one-half 1,359
of the beneficiary's support from a member during the twelve 1,360
months prior to the member's death. 1,361
(4) "Surviving spouse" means an individual who establishes 1,364
a valid marriage to a member at the time of the member's death by 1,365
marriage certificate or pursuant to division (E) of this section. 1,366
(5) "Survivor" means a surviving spouse, child, or parent. 1,369
(B) Except as provided in division (C)(1) of section 1,372
145.45 of the Revised Code, should a member die before age and 1,374
service retirement, the member's accumulated contributions, any 1,375
deposits for purchase of additional annuity, and any payment the 1,377
member has made to restore previously forfeited service credit as 1,379
provided in section 145.31 of the Revised Code, AND ANY 1,380
APPLICABLE AMOUNT CALCULATED UNDER SECTION 145.401 OF THE REVISED 1,381
CODE, shall be paid to the person or persons the member has 1,382
designated in writing duly executed on a form provided by the 1,384
public employees retirement board, signed by the member, and 1,385
filed with the board prior to the member's death. A member may 1,386
designate two or more persons as beneficiaries jointly to be paid 1,388
35
the accumulated account in a lump sum. The last designation of 1,389
any beneficiary revokes all previous designations. The member's 1,390
marriage, divorce, marriage dissolution, legal separation, or 1,391
withdrawal of account, or the birth of the member's child, or 1,392
adoption of a child, shall constitute an automatic revocation of 1,394
the member's previous designation. If a deceased member was also 1,395
a member of the school employees retirement system or the state 1,396
teachers retirement system, the beneficiary last established 1,397
among the systems shall be the sole beneficiary in all the 1,398
systems.
If the accumulated contributions of a deceased member are 1,400
not claimed by a beneficiary or by the estate of the deceased 1,401
member within five years, the contributions shall be transferred 1,403
to the income fund and thereafter paid to the beneficiary or to 1,405
the member's estate upon application to the board. The board 1,406
shall formulate and adopt the necessary rules governing all 1,407
designations of beneficiaries. 1,408
(C) Except as provided in division (C)(1) of section 1,410
145.45 of the Revised Code, if a member dies before age and 1,412
service retirement and is not survived by a designated 1,413
beneficiary, any beneficiaries shall qualify in the following 1,415
order of precedence, with all attendant rights and privileges: 1,416
(1) Surviving spouse; 1,418
(2) Children share and share alike; 1,420
(3) A dependent parent of a member, if that parent takes 1,423
survivor benefits under division (B) of section 145.45 of the 1,425
Revised Code;
(4) Parents, share and share alike; 1,427
(5) Estate. 1,429
If the beneficiary is deceased or is not located within 1,431
ninety days, the beneficiary ceases to qualify for any benefit 1,432
and the beneficiary next in order of precedence shall qualify as 1,433
a beneficiary. 1,434
Any payment made to a beneficiary as determined by the 1,436
36
public employees retirement board shall be a full discharge and 1,437
release to the board from any future claims. 1,438
(D) Any amount due a retirant or disability benefit 1,440
recipient receiving a monthly benefit and unpaid to the retirant 1,442
or recipient at death shall be paid to the beneficiary designated 1,444
in writing on a form approved by the board, signed by the 1,445
retirant or recipient and filed with the board. If no such
designation has been filed, or if the designated beneficiary is 1,447
not located within ninety days, any amounts payable under this 1,449
chapter due to the death of the retirant or recipient shall be 1,451
paid in the following order of precedence to the retirant's or
recipient's: 1,452
(1) Surviving spouse; 1,454
(2) Children, share and share alike; 1,456
(3) Parents, share and share alike; 1,458
(4) Estate. 1,460
The payment shall be a full discharge and release to the 1,462
board from any future claim for the payment. 1,463
Any amount due a beneficiary receiving a monthly benefit 1,465
and unpaid to the beneficiary at the beneficiary's death shall be 1,467
paid to the beneficiary's estate. 1,468
(E) If the validity of marriage cannot be established to 1,470
the satisfaction of the retirement board for the purpose of 1,471
disbursing any amount due under this section or section 145.45 of 1,472
the Revised Code, the board may accept a decision rendered by a 1,473
court having jurisdiction in the state in which the member was 1,474
domiciled at the time of death that the relationship constituted 1,475
a valid marriage at the time of death, or the "spouse" would have 1,476
the same status as a widow or widower for purposes of sharing the 1,477
distribution of the member's intestate personal property. 1,478
(F) If the death of a member is caused by one of the 1,480
following beneficiaries, no amount due under this chapter to the 1,481
beneficiary shall be paid to the beneficiary in the absence of a 1,482
court order to the contrary filed with the board: 1,483
37
(1) A beneficiary who is convicted of, pleads guilty to, 1,485
or is found not guilty by reason of insanity of a violation of or 1,487
complicity in the violation of either of the following: 1,488
(a) Section 2903.01, 2903.02, or 2903.03 of the Revised 1,491
Code;
(b) An existing or former law of any other state, the 1,494
United States, or a foreign nation that is substantially 1,496
equivalent to section 2903.01, 2903.02, or 2903.03 of the Revised 1,498
Code;.
(2) A beneficiary who is indicted for a violation of or 1,500
complicity in the violation of the sections or laws described in 1,501
division (F)(1)(a) or (b) of this section and is adjudicated 1,503
incompetent to stand trial;
(3) A beneficiary who is a juvenile found to be a 1,505
delinquent child by reason of committing an act that, if 1,506
committed by an adult, would be a violation of or complicity in 1,507
the violation of the sections or laws described in division 1,509
(F)(1)(a) or (b) of this section. 1,510
Sec. 145.471. (A)(1) ON AND AFTER THE EFFECTIVE DATE OF 1,512
THIS SECTION, THE PUBLIC EMPLOYEES RETIREMENT BOARD SHALL CREDIT 1,513
INTEREST TO THE INDIVIDUAL ACCOUNTS OF CONTRIBUTORS, EXCEPT THAT 1,515
INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL ACCOUNT OF A 1,516
PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 145.38 OF 1,517
THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE PERIOD 1,518
DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 OF THE 1,520
REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,522
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,523
(2) EXCEPT AS PROVIDED IN SECTION 145.472 OF THE REVISED 1,525
CODE, THE BOARD SHALL NOT CREDIT INTEREST TO INDIVIDUAL ACCOUNTS 1,526
FOR THE PERIOD BEGINNING DECEMBER 31, 1958, AND ENDING ON THE 1,527
EFFECTIVE DATE OF THIS SECTION.
(B) FOR CONTRIBUTIONS RECEIVED IN A CALENDAR YEAR, 1,529
INTEREST SHALL BE EARNED BEGINNING ON THE FIRST DAY OF THE 1,530
38
CALENDAR YEAR NEXT FOLLOWING AND ENDING ON THE LAST DAY OF THAT 1,531
YEAR, EXCEPT THAT INTEREST SHALL BE EARNED, IN THE CASE OF AN 1,532
APPLICATION FOR RETIREMENT OR PAYMENT UNDER SECTION 145.40 OR 1,534
145.43 OF THE REVISED CODE, ENDING ON THE LAST DAY OF THE MONTH 1,535
PRIOR TO RETIREMENT OR PAYMENT UNDER THOSE SECTIONS. THE BOARD 1,536
SHALL CREDIT INTEREST AT THE END OF THE CALENDAR YEAR IN WHICH IT
IS EARNED. 1,537
Sec. 145.472. THIS SECTION APPLIES TO INDIVIDUALS WHO ARE 1,539
CONTRIBUTORS ON THE EFFECTIVE DATE OF THIS SECTION. 1,540
(A) NOT LATER THAN THIRTY DAYS AFTER THE EFFECTIVE DATE OF 1,542
THIS SECTION, THE BOARD SHALL CREDIT INTEREST TO THE INDIVIDUAL 1,543
ACCOUNT OF EACH CONTRIBUTOR IN ACCORDANCE WITH THIS SECTION, 1,544
EXCEPT THAT INTEREST SHALL NOT BE CREDITED TO THE INDIVIDUAL 1,545
ACCOUNT OF A PERS OR OTHER SYSTEM RETIRANT, AS DEFINED IN SECTION 1,546
145.38 OF THE REVISED CODE, FOR CONTRIBUTIONS RECEIVED DURING THE 1,547
PERIOD DESCRIBED IN DIVISION (B)(4)(a) OR (b) OF SECTION 145.38 1,549
OF THE REVISED CODE. FOR AMOUNTS DEPOSITED BY A CONTRIBUTOR UNDER 1,550
DIVISION (C) OF SECTION 145.23 OF THE REVISED CODE, INTEREST 1,551
SHALL BE CREDITED IN ACCORDANCE WITH THAT SECTION. 1,552
FOR CONTRIBUTORS WITH SERVICE CREDIT EARNED PRIOR TO 1,554
DECEMBER 31, 1981, THE BOARD MAY REFLECT THE COMPOUNDING OF 1,555
INTEREST BY USING FACTORS PROVIDED BY THE BOARD'S ACTUARY. 1,556
(B) THE INTEREST CREDITED UNDER THIS SECTION SHALL BE 1,558
CALCULATED ON ALL AMOUNTS ON DEPOSIT IN AN INDIVIDUAL'S ACCOUNT 1,560
IN THE EMPLOYEES' SAVINGS FUND AS FOLLOWS: 1,561
(1) IF THIS SECTION TAKES EFFECT ON OR BEFORE DECEMBER 31, 1,564
2000, INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON 1,565
DECEMBER 31, 1998.
(2) IF THIS SECTION TAKES EFFECT AFTER DECEMBER 31, 2000, 1,567
INTEREST SHALL BE CALCULATED ON AMOUNTS ON DEPOSIT ON DECEMBER 1,568
31, 1999. 1,569
Sec. 145.473. (A) EXCEPT AS PROVIDED IN DIVISION (C) OF 1,571
THIS SECTION, THE RATE OF INTEREST CREDITED TO INDIVIDUAL 1,572
ACCOUNTS OF CONTRIBUTORS UNDER SECTIONS 145.471 AND 145.472 OF 1,573
39
THE REVISED CODE SHALL BE AS FOLLOWS: 1,574
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, TO AND 1,576
INCLUDING DECEMBER 31, 1955; 1,577
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,580
JANUARY 1, 1956, TO AND INCLUDING DECEMBER 31, 1963; 1,581
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,583
ANNUALLY, FROM JANUARY 1, 1964, TO AND INCLUDING DECEMBER 31, 1,585
1969;
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FROM 1,588
JANUARY 1, 1970, TO AND INCLUDING THE DAY BEFORE THE EFFECTIVE
DATE OF THIS SECTION; 1,589
(5) AN AMOUNT DETERMINED BY THE PUBLIC EMPLOYEES 1,591
RETIREMENT BOARD THAT IS NOT GREATER THAN SIX PER CENT PER ANNUM, 1,592
COMPOUNDED ANNUALLY, ON AND AFTER THE EFFECTIVE DATE OF THIS 1,593
SECTION.
(B) EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION, 1,595
FOR THE PURPOSE OF DETERMINING THE RESERVE VALUE OF A 1,596
CONTRIBUTOR'S ANNUITY, THE RATE OF INTEREST SHALL BE AS FOLLOWS: 1,597
(1) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,599
CONTRIBUTORS RETIRING BEFORE OCTOBER 1, 1956; 1,600
(2) THREE PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,602
CONTRIBUTORS RETIRING ON OR AFTER OCTOBER 1, 1956, BUT BEFORE 1,604
JANUARY 1, 1964;
(3) THREE AND ONE-QUARTER PER CENT PER ANNUM, COMPOUNDED 1,606
ANNUALLY, FOR CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1964, 1,607
BUT BEFORE JANUARY 1, 1970; 1,608
(4) FOUR PER CENT PER ANNUM, COMPOUNDED ANNUALLY, FOR 1,610
CONTRIBUTORS RETIRING ON OR AFTER JANUARY 1, 1970, BUT BEFORE THE 1,612
EFFECTIVE DATE OF THIS SECTION;
(5) AN AMOUNT DETERMINED BY THE BOARD BASED ON THE 1,614
RECOMMENDATION OF THE BOARD'S ACTUARY, COMPOUNDED ANNUALLY, FOR 1,615
CONTRIBUTORS RETIRING ON OR AFTER THE EFFECTIVE DATE OF THIS 1,616
SECTION.
(C) FOR A PERS RETIRANT WHO MAKES AN ELECTION UNDER 1,618
40
DIVISION (C)(1)(a) OF SECTION 145.38 OF THE REVISED CODE OR AN 1,620
OTHER SYSTEM RETIRANT, AS THOSE TERMS ARE DEFINED IN SECTION 1,621
145.38 OF THE REVISED CODE, THE RATE OF INTEREST SHALL BE THE 1,622
CURRENT ACTUARIAL ASSUMPTION RATE OF INTEREST, AS DETERMINED BY 1,623
THE BOARD'S ACTUARY, FOR THE PURPOSES DESCRIBED IN DIVISIONS (A) 1,624
AND (B) OF THIS SECTION.
Sec. 3307.41. To coordinate and integrate membership in 1,633
the state retirement systems, the following provisions apply: 1,634
(A) As used in this section: 1,636
(1) "Retirement systems" means the public employees 1,638
retirement system, the state teachers retirement system, and the 1,639
school employees retirement system. 1,640
(2) In addition to the meaning given in division (L) of 1,642
section 3307.01 of the Revised Code, "disability benefit" means 1,643
"disability benefit" as defined in sections 145.01 and 3309.01 of 1,644
the Revised Code. 1,645
(B) At the member's option, total contributions and 1,647
service credit in all retirement systems, including amounts paid 1,648
to restore service credit under sections 145.311, 3307.282, and 1,649
3309.261 of the Revised Code, shall be used in determining the 1,651
eligibility for benefits. If total contributions and service 1,652
credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is 1,654
effective on the first day of the month next following the later 1,655
of: 1,656
(a) The last day for which compensation was paid; 1,658
(b) The attainment of minimum age or service credit for 1,660
benefits provided under this section. 1,661
(2) "Total service credit" includes the total credit in 1,663
all retirement systems except that such credit shall not exceed 1,664
one year for any period of twelve months. 1,665
(3) In determining eligibility for a disability benefit, 1,667
the medical examiner's report to the board of any retirement 1,668
system, showing that the member's disability incapacitates the 1,669
41
member for the performance of duty, may be accepted as sufficient 1,671
for granting a disability benefit. 1,672
(4) The retirement system in which the member had the 1,674
greatest service credit, without adjustment, shall determine and 1,675
pay the total benefit. If the member's credit is equal in two or 1,677
more retirement systems, the system having the member's largest 1,678
total contributions shall determine and pay the total benefit. 1,679
(5) In determining the total credit to be used in 1,681
calculating a benefit, credit shall not be reduced below that 1,682
certified by the system or systems transferring credit, except 1,683
that such total combined service credit shall not exceed one year 1,684
of credit for any one "year" as defined in the statute governing 1,685
the system making the calculation. 1,686
(6) The retirement system determining and paying the 1,688
benefit shall receive from the other system or systems the 1,689
member's refundable account at retirement or the effective date 1,690
of a disability benefit plus an equal amount from the employers' 1,691
trust fund EQUAL TO THE MEMBER'S REFUNDABLE ACCOUNT LESS INTEREST 1,692
CREDITED UNDER SECTION 145.471, 145.472, OR 3307.80 OF THE 1,693
REVISED CODE.
(a) The annuity rates and mortality tables of the 1,695
retirement system making the calculation and paying the benefit 1,696
shall be applicable. 1,697
(b) Deposits made for the purchase of additional income, 1,699
with guaranteed interest, upon the member's request, shall be 1,700
transferred to the retirement system paying the regular benefit. 1,701
The return upon such deposits shall be that offered by the 1,702
retirement system making the calculation and paying the regular 1,703
benefit. 1,704
(C) A person receiving a benefit under this section, who 1,706
accepts employment amenable to coverage in any retirement system 1,707
that participated in the person's combined benefit, shall be 1,708
subject to the applicable provisions of law governing such 1,710
re-employment. If the person is subject to section 3307.381 of 1,711
42
the Revised Code and exceeds the limits on re-employment 1,712
established by that section, the retirement system paying a 1,713
combined benefit shall terminate the entire pension portion of 1,714
the benefit for the period of re-employment that exceeds the 1,715
limit in that section.
If a retirant should be paid any amount to which the 1,717
retirant is not entitled under the applicable provisions of law 1,719
governing such re-employment, such amount shall be recouped by 1,720
the retirement system paying such benefit by utilizing any 1,721
recovery procedure available under the law of the retirement 1,722
system covering such re-employment. 1,723
Sec. 3309.35. (A) As used in this section: 1,733
(1) "State retirement system" means the public employees 1,735
retirement system, state teachers retirement system, or school 1,736
employees retirement system. 1,737
(2) "Total service credit" means all service credit earned 1,739
in all state retirement systems, except credit for service 1,740
subject to section 3309.341 of the Revised Code. Total service 1,741
credit shall not exceed one year of credit for any twelve-month 1,742
period. 1,743
(3) In addition to the meaning given in division (O) of 1,745
section 3309.01 of the Revised Code, "disability benefit" means 1,746
"disability benefit" as defined in sections 145.01 and 3307.01 of 1,747
the Revised Code. 1,748
(B) To coordinate and integrate membership in the state 1,750
retirement systems, at the option of a member, total 1,752
contributions and service credit in all state retirement systems, 1,753
including amounts paid to restore service credit under sections 1,754
145.311, 3307.282, and 3309.261 of the Revised Code, shall be 1,755
used in determining the eligibility and total retirement or 1,756
disability benefit payable. When total contributions and service 1,757
credit are so combined, the following provisions apply: 1,758
(1) Service and commuted service retirement or a 1,760
disability benefit is effective no sooner than the first day of 1,761
43
the month next following the last day of employment for which 1,762
compensation was paid. If the application is filed after that 1,763
date, the board may retire the member on the first day of the 1,764
month next following the last day of employment for which 1,765
compensation was paid. 1,766
(2) In determining eligibility for a disability benefit, 1,768
the medical examiner's report to the retirement board of any 1,769
state retirement system, showing that the member's disability 1,770
incapacitates the member for the performance of duty, may be 1,771
accepted by the state retirement boards as sufficient for 1,773
granting a disability benefit. 1,774
(3) The state retirement system in which the member had 1,776
the greatest service credit, without adjustment, shall determine 1,777
and pay the total retirement or disability benefit. Where the 1,778
member's credit is equal in two or more state retirement systems, 1,780
the system having the largest total contributions of the member 1,781
shall determine and pay the total benefit. 1,782
(4) In determining the total credit to be used in 1,784
calculating a retirement allowance or disability benefit, credit 1,785
shall not be reduced below that certified by the system or 1,786
systems transferring credit, except that such total combined 1,787
service credit shall not exceed one year of credit for any one 1,788
"year" as defined in the law of the system making the 1,789
calculation. 1,790
(5) The state retirement system determining and paying a 1,792
retirement or disability benefit shall receive from the other 1,793
system or systems the member's refundable account at retirement 1,794
or the effective date of a disability benefit plus an equal 1,795
amount from the employers' trust fund EQUAL TO THE MEMBER'S 1,796
REFUNDABLE ACCOUNT LESS THE INTEREST CREDITED UNDER SECTION 1,797
145.471, 145.472, OR 3307.80 OF THE REVISED CODE. 1,798
(a) The annuity rates and mortality tables of the state 1,800
retirement system making the calculation and paying the benefit 1,801
shall be exclusively applicable. 1,802
44
(b) Deposits made for the purchase of an additional 1,804
annuity, and including guaranteed interest, upon the request of 1,805
the member, shall be transferred to the state retirement system 1,806
paying the retirement or disability benefit. The return upon 1,807
such deposits shall be that offered by the state retirement 1,808
system making the calculation and paying the retirement or 1,809
disability benefit. 1,810
(C) A former member receiving a retirement or disability 1,812
benefit under this section, who accepts employment amenable to 1,813
coverage in any state retirement system that participated in the 1,814
member's combined benefit, shall be subject to the applicable 1,816
provisions of law governing such re-employment. If the former 1,817
member is subject to section 3307.381 of the Revised Code and 1,818
exceeds the limits on re-employment established by that section, 1,819
the state retirement system paying a combined benefit shall 1,820
terminate the entire pension portion of the benefit for the 1,821
period of re-employment that exceeds the limit in that section. 1,822
If a former member should be paid any amount in a retirement 1,823
allowance, to which the former member is not entitled under the 1,825
applicable provisions of law governing such re-employment, such 1,826
amount shall be recovered by the state retirement system paying 1,827
such allowance by utilizing any recovery procedure available 1,828
under the code provisions of the state retirement system covering 1,829
such re-employment. 1,830
(D) An SERS retirant or other system retirant, as defined 1,832
in section 3309.341 of the Revised Code, is not eligible to 1,833
receive any benefit under this section for service subject to 1,834
section 3309.341 of the Revised Code. 1,835
Section 2. That existing sections 145.01, 145.23, 145.31, 1,837
145.37, 145.38, 145.40, 145.43, 3307.41, and 3309.35 of the 1,838
Revised Code are hereby repealed.
Section 3. Sections 1 and 2 of this act shall take effect 1,840
on the one hundred eightieth day after the effective date of this 1,841
section.