REPRESENTATIVE Schuring

To amend sections 145.323, 742.37, 742.3711,

1

742.3716, 742.3717, 742.3718, 742.3720, 3307.67,

2

3309.374, and 5505.174 of the Revised Code to

3

provide that the annual cost of living increase

4

paid to retired members and beneficiaries of

5

Ohio's state retirement systems will be three per

6

cent.

7

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 145.323, 742.37, 742.3711,	8
742.3716, 742.3717, 742.3718, 742.3720, 3307.67, 3309.374, and	9
5505.174 of the Revised Code be amended to read as follows:	10

Sec. 145.323.  (A) Beginning April 1, 1971, and each year	11
thereafter, the board of theThe public employees retirement	12
system shall determine the average percentage change in the	13
consumer price index prepared by the United States bureau of labor	14
statistics (U.S. City Average for Urban Wage Earners and Clerical	15
Workers: "All Items 1982-84=100") for the twelve-calendar-month	16
period prior to the first day of January over the next preceding	17
twelve-calendar-month period, as reported by the bureau.	18

Upon a determination by the board in any year that the change	19
in the consumer price index is an increase or that the change plus	20
the accumulation described in division (B) of this section is an	21
increase, the board shall annually increase each allowance,	22
pension, or benefit payable under this chapter by a percentage	23
equal to the percentage increase in the consumer price index or to	24
that increase plus the accumulation, except that the increase	25
shall not exceed three per cent and,except that no allowance,	26
pension, or benefit shall exceed the limit established by section	27
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	28
U.S.C.A. 415, as amended.	29

The first increase is payable to all persons becoming	30
eligible after June 30, 1971, upon such persons receiving an	31
allowance for twelve months. The increased amount is payable for	32
the ensuing twelve-month period or until the next increase is	33
granted under this section, whichever is later. Subsequent	34
increases shall be determined from the date of the first increase	35
paid to the former member in the case of an allowance being paid a	36
beneficiary under an option, or from the date of the first	37
increase to the survivor first receiving an allowance or benefit	38
in the case of an allowance or benefit being paid to the	39
subsequent survivors of the former member.	40

The date of the first increase under this section becomes the	41
anniversary date for any future increases.	42

The allowance or benefit used in the first calculation of an	43
increase under this section shall remain as the base for all	44
future increases, unless a new base is established.	45

(B) Any percentage of change in the consumer price index in	46
any year that is in excess of three per cent shall be accumulated	47
and used to determine increases under this section in subsequent	48
years. Any percentage of change in the consumer price index	49
accumulated by an eligible person prior to the effective date of	50
this amendment shall be used in determining any future increases	51
under this section.	52

(C) The board shall make all rules necessary to carry out	53
this section.	54

Sec. 742.37.  The board of trustees of the Ohio police and	55
fire pension fund shall adopt rules for the management of the fund	56
and for the disbursement of benefits and pensions as set forth in	57
this section and section 742.39 of the Revised Code. Any payment	58
of a benefit or pension under this section is subject to the	59
provisions of section 742.461 of the Revised Code. Notwithstanding	60
any other provision of this section, no pension or benefit paid or	61
determined under division (B) or (C) of this section or section	62
742.39 of the Revised Code shall exceed the limit established by	63
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	64
2085, 26 U.S.C.A. 415, as amended.	65

(A) Persons who were receiving benefit or pension payments	66
from a police relief and pension fund established under former	67
section 741.32 of the Revised Code, or from a firemen's relief and	68
pension fund established under former section 521.02 or 741.02 of	69
the Revised Code, at the time the assets of the fund were	70
transferred to the Ohio police and fire pension fund, known at	71
that time as the police and firemen's disability and pension fund,	72
shall receive benefit and pension payments from the Ohio police	73
and fire pension fund in the same amount and subject to the same	74
conditions as such payments were being made from the former fund	75
on the date of the transfer.	76

(B) A member of the fund who, pursuant to law, elected to	77
receive benefits and pensions from a police relief and pension	78
fund established under former section 741.32 of the Revised Code,	79
or from a firemen's relief and pension fund established under	80
former section 741.02 of the Revised Code, in accordance with the	81
rules of the fund governing the granting of benefits or pensions	82
therefrom in force on April 1, 1947, shall receive benefits and	83
pensions from the Ohio police and fire pension fund in accordance	84
with such rules; provided, that any member of the fund who is not	85
receiving a benefit or pension from the fund on August 12, 1975,	86
may, upon application for a benefit or pension to be received on	87
or after August 12, 1975, elect to receive a benefit or pension in	88
accordance with division (C) of this section.	89

(C) Members of the fund who have not elected to receive	90
benefits and pensions from a police relief and pension fund or a	91
firemen's relief and pension fund in accordance with the rules of	92
the fund in force on April 1, 1947, shall receive pensions and	93
benefits in accordance with the following provisions:	94

(1) A member of the fund who has completed twenty-five years	95
of active service in a police or fire department and has attained	96
forty-eight years of age may, at the member's election, retire	97
from the police or fire department, and upon notifying the board	98
in writing of the election, shall receive an annual pension,	99
payable in twelve monthly installments, in an amount equal to a	100
percentage of the member's average annual salary. The percentage	101
shall be the sum of two and one-half per cent for each of the	102
first twenty years the member was in the active service of the	103
department, plus two per cent for each of the twenty-first to	104
twenty-fifth years the member was in the active service of the	105
department, plus one and one-half per cent for each year in excess	106
of twenty-five years the member was in the active service of the	107
department. The annual pension shall not exceed seventy-two per	108
cent of the member's average annual salary.	109

A member who completed twenty-five years of active service,	110
has resigned or been discharged, and has left the sum deducted	111
from the member's salary on deposit in the pension fund shall,	112
upon attaining forty-eight years of age, be entitled to receive a	113
normal service pension benefit computed and paid under division	114
(C)(1) of this section.	115

(2) A member of the fund who has served fifteen or more	116
years as an active member of a police or fire department and who	117
voluntarily resigns or is discharged from the department for any	118
reason other than dishonesty, cowardice, intemperate habits, or	119
conviction of a felony, shall receive an annual pension, payable	120
in twelve monthly installments, in an amount equal to one and	121
one-half per cent of the member's average annual salary multiplied	122
by the number of full years the member was in the active service	123
of the department. The pension payments shall not commence until	124
the member has attained the age of forty-eight years and until	125
twenty-five years have elapsed from the date on which the member	126
became a full-time regular police officer or firefighter in the	127
department.	128

(3) A member of the fund who has completed fifteen or more	129
years of active service in a police or fire department and who has	130
attained sixty-two years of age, may retire from the department	131
and, upon notifying the board in writing of the election to	132
retire, shall receive an annual pension, payable in twelve monthly	133
installments, in an amount equal to a percentage of the member's	134
average annual salary. The percentage shall be the sum of two and	135
one-half per cent for each of the first twenty years the member	136
was in the active service of the department, plus two per cent for	137
each of the twenty-first to twenty-fifth years the member was in	138
the active service of the department, plus one and one-half per	139
cent for each year in excess of twenty-five years the member was	140
in the active service of the department. The annual pension shall	141
not exceed seventy-two per cent of the member's average annual	142
salary.	143

(4) With the exception of those persons who may make	144
application for benefits as provided in section 742.26 of the	145
Revised Code, no person receiving a pension or other benefit under	146
division (C) of this section on or after July 24, 1986, shall be	147
entitled to apply for any new, changed, or different benefit.	148

If a member covered by division (C) of this section or	149
section 742.38 of the Revised Code dies prior to the time the	150
member has received a payment and leaves a surviving spouse or	151
dependent child, the surviving spouse or dependent child shall	152
receive a pension under division (D) or (E) of this section.	153

(D)(1) Except as provided in division (D)(2) of this	154
section, a surviving spouse of a deceased member of the fund shall	155
receive a monthly pension as follows:	156

(a) For the period beginning July 1, 1999, and ending June	157
30, 2000, five hundred fifty dollars;	158

(b) For the period beginning July 1, 2000, and the first day	159
of July of each year thereafter and continuing for the following	160
twelve months, an amount equal to the monthly amount paid during	161
the prior twelve-month period plus an amount determined by	162
multiplying five hundred fiftysixteen dollars by the average	163
percentage change in the consumer price index, not exceeding three	164
per cent, as determined each year by the board under section	165
742.3716 of the Revised Codeand fifty cents.	166

(2) A surviving spouse of a deceased member of the fund	167
shall receive a monthly pension of four hundred ten dollars if the	168
surviving spouse is eligible for a benefit under division (B) or	169
(D) of section 742.63 of the Revised Code. If the surviving	170
spouse ceases to be eligible for a benefit under division (B) or	171
(D) of section 742.63 of the Revised Code, the pension shall be	172
increased, effective the first day of the first month following	173
the day on which the surviving spouse ceases to be eligible for	174
the benefit, to the amount it would be under division (D)(1) of	175
this section had the spouse never been eligible for a benefit	176
under division (B) or (D) of section 742.63 of the Revised Code.	177

(3) A pension paid under this division shall continue during	178
the natural life of the surviving spouse. Benefits to a deceased	179
member's surviving spouse that were terminated under a former	180
version of this section that required termination due to	181
remarriage and were not resumed prior to September 16, 1998, shall	182
resume on the first day of the month immediately following receipt	183
by the board of an application on a form provided by the board.	184

(E) Each surviving child of a deceased member of the fund	185
shall receive a monthly pension of one hundred fifty dollars until	186
the child attains the age of eighteen years, or marries, whichever	187
event occurs first. A pension under this division, however, shall	188
continue to be payable to a child under age twenty-two who is a	189
student in and attending an institution of learning or training	190
pursuant to a program designed to complete in each school year the	191
equivalent of at least two-thirds of the full-time curriculum	192
requirements of the institution, as determined by the board. If	193
any surviving child, regardless of age at the time of the member's	194
death, because of physical or mental disability, is totally	195
dependent upon the deceased member for support at the time of	196
death, the child shall receive a monthly pension under this	197
division during the child's natural life or until the child has	198
recovered from the disability.	199

(F) If a deceased member of the fund leaves no surviving	200
spouse or surviving children, but leaves two parents dependent	201
upon the deceased member for support, each parent shall be paid a	202
monthly pension of one hundred dollars. If there is only one	203
parent dependent upon the member for support, the parent shall be	204
paid a monthly pension of two hundred dollars. The pensions	205
provided for in this division shall be paid during the natural	206
life of the surviving parents, or until dependency ceases, or	207
until remarriage, whichever event occurs first.	208

(G) Subject to the provisions of section 742.461 of the	209
Revised Code, a member of the fund who voluntarily resigns or is	210
removed from active service in a police or fire department is	211
entitled to receive an amount equal to the sums deducted from the	212
member's salary and credited to the member's account in the fund,	213
except that a member receiving a disability benefit or service	214
pension is not entitled to receive any return of contributions to	215
the fund.	216

(H) On and after January 1, 1970, all pensions shall be	217
increased in accordance with the following provisions:	218

(1) A member of the fund who retired prior to January 1,	219
1967, has attained age sixty-five on January 1, 1970, and was	220
receiving a pension on December 31, 1969, pursuant to division (B)	221
or (C)(1) of this section or former division (C)(2), (3), (4), or	222
(5) of this section, shall have the pension increased by ten per	223
cent.	224

(2) The monthly pension payable to eligible surviving	225
spouses under division (D) of this section shall be increased by	226
forty dollars for each surviving spouse receiving a pension on	227
December 31, 1969.	228

(3) The monthly pension payable to each eligible child under	229
division (E) of this section shall be increased by ten dollars for	230
each child receiving a pension on December 31, 1969.	231

(4) The monthly pension payable to each eligible dependent	232
parent under division (F) of this section shall be increased by	233
thirty dollars for each parent receiving a pension on December 31,	234
1969.	235

(5) A member of the fund, including a survivor of a member,	236
who is receiving a pension in accordance with the rules governing	237
the granting of pensions and benefits in force on April 1, 1947,	238
that provide an increase in the original pension from time to time	239
pursuant to changes in the salaries of active members, shall not	240
be eligible for the benefits provided in this division.	241

(I) On and after January 1, 1977, a member of the fund who	242
was receiving a pension or benefit on December 31, 1973, under	243
division (A), (B), (C)(1), or former division (C)(2) or (7) of	244
this section shall have the pension or benefit increased as	245
follows:	246

(1) If the member's annual pension or benefit is less than	247
two thousand seven hundred dollars, it shall be increased to three	248
thousand dollars.	249

(2) If the member's annual pension or benefit is two	250
thousand seven hundred dollars or more, it shall be increased by	251
three hundred dollars.	252

The following shall not be eligible to receive increased	253
pensions or benefits as provided in this division:	254

(a) A member of the fund who is receiving a pension or	255
benefit in accordance with the rules in force on April 1, 1947,	256
governing the granting of pensions and benefits, which provide an	257
increase in the original pension or benefit from time to time	258
pursuant to changes in the salaries of active members;	259

(b) A member of the fund who is receiving a pension or	260
benefit under division (A) or (B) of this section, based on funded	261
volunteer or funded part-time service, or off-duty disability, or	262
partial on-duty disability, or early vested service;	263

(c) A member of the fund who is receiving a pension under	264
division (C)(1) of this section, based on funded volunteer or	265
funded part-time service.	266

(J) On and after July 1, 1977, a member of the fund who was	267
receiving an annual pension or benefit on December 31, 1973,	268
pursuant to division (B) of this section, based upon partial	269
disability, off-duty disability, or early vested service, or	270
pursuant to former division (C)(3), (5), or (6) of this section,	271
shall have such annual pension or benefit increased by three	272
hundred dollars.	273

The following are not eligible to receive the increase	274
provided by this division:	275

(1) A member of the fund who is receiving a pension or	276
benefit in accordance with the rules in force on April 1, 1947,	277
governing the granting of pensions and benefits, which provide an	278
increase in the original pension or benefit from time to time	279
pursuant to changes in the salaries of active members;	280

(2) A member of the fund who is receiving a pension or	281
benefit under division (B) or (C)(2) of this section or former	282
division (C)(3), (5), or (6) of this section based on volunteer or	283
part-time service.	284

(K)(1) Except as otherwise provided in this division, every	285
person who on July 24, 1986, is receiving an age and service or	286
disability pension, allowance, or benefit pursuant to this chapter	287
in an amount less than thirteen thousand dollars a year that is	288
based upon an award made effective prior to February 28, 1984,	289
shall receive an increase of six hundred dollars a year or the	290
amount necessary to increase the pension or benefit to four	291
thousand two hundred dollars after all adjustments required by	292
this section, whichever is greater.	293

(2) Division (K)(1) of this section does not apply to the	294
following:	295

(a) A member of the fund who is receiving a pension or	296
benefit in accordance with rules in force on April 1, 1947, that	297
govern the granting of pensions and benefits and that provide an	298
increase in the original pension or benefit from time to time	299
pursuant to changes in the salaries of active members;	300

(b) A member of the fund who is receiving a pension or	301
benefit based on funded volunteer or funded part-time service.	302

(L) On and after July 24, 1986:

303

(1) The pension of each person receiving a pension under	304
division (D) of this section on July 24, 1986, shall be increased	305
to three hundred ten dollars per month.	306

(2) The pension of each person receiving a pension under	307
division (E) of this section on July 24, 1986, shall be increased	308
to ninety-three dollars per month.	309

Sec. 742.3711.  (A) On application for retirement as	310
provided in section 742.37 of the Revised Code, a member of the	311
fund may elect to receive a retirement allowance payable	312
throughout the member's life, or may elect, on the application for	313
retirement, to receive the actuarial equivalent of the member's	314
retirement allowance in a lesser amount payable for life and	315
continuing after death to a surviving designated beneficiary under	316
one of the following optional plans, provided the amount payable	317
to the beneficiary shall not exceed the amount payable to the	318
retiring member of the fund, and is certified by the actuary	319
engaged by the board of trustees of the Ohio police and fire	320
pension fund to be the actuarial equivalent of the member's	321
retirement allowance and is approved by the board.	322

(1) Option 1. The member's lesser retirement allowance	323
shall be paid for life to the sole beneficiary designated at the	324
time of the member's retirement.	325

(2) Option 2. One-half or some other portion of the	326
member's lesser retirement allowance shall be paid for life to the	327
sole beneficiary designated at the time of the member's	328
retirement.	329

(3) Option 3. Upon the member's death before the expiration	330
of a certain period from the retirement date and elected by the	331
member and approved by the retirement board, the member's lesser	332
retirement allowance shall be continued for the remainder of that	333
period to the beneficiary the member has nominated by written	334
designation and filed with the retirement board.	335

Should the nominated beneficiary designated in writing become	336
deceased prior to the expiration of the guarantee period, then for	337
the purpose of completing payment for the remainder of the	338
guarantee period, the present value of such payments shall be paid	339
to the estate of the beneficiary last receiving.	340

(B)(1) On or after February 28, 1980, the death of a spouse	341
nominated as beneficiary or the death of any other nominated	342
beneficiary following retirement shall cancel any optional plan of	343
payment to provide continuing lifetime benefits to such nominated	344
beneficiary and return the member of the fund to the member's	345
single lifetime benefit equivalent, as determined by the board, to	346
be effective the month following receipt by the board of notice of	347
the death.	348

(2) On divorce, annulment, or marriage dissolution, a member	349
receiving a retirement allowance under a plan that provides for	350
continuation of all or part of the allowance after death for the	351
lifetime of the member's surviving spouse may, with the written	352
consent of the spouse or pursuant to an order of the court with	353
jurisdiction over the termination of the marriage, elect to cancel	354
the plan and receive the member's single lifetime benefit	355
equivalent as determined by the board. The election shall be made	356
on a form provided by the board and shall be effective the month	357
following its receipt by the board.	358

(C) Following marriage or remarriage, a member of the fund	359
may elect not later than one year after the date of marriage or	360
remarriage a new optional plan of payment based on the actuarial	361
equivalent of the member's single lifetime benefit as determined	362
by the board. The plan and the member's lesser retirement	363
allowance shall become effective on the date the election is made	364
on a form approved by the board.	365

(D)(1) Unless one of the following occurs, an application	366
for retirement by a married person shall be considered an election	367
of a benefit under option 2 as provided for in division (A)(2) of	368
this section under which one-half of the lesser retirement	369
allowance payable during the life of the retirant will be paid	370
after death to the retirant's spouse for life as sole beneficiary:	371

(a) The retirant selects an optional plan under division (A)	372
of this section providing for payment after death to the	373
retirant's spouse for life as sole beneficiary of more than	374
one-half of the lesser retirement allowance payable during the	375
life of the retirant;	376

(b) The retirant submits to the retirement board a written	377
statement signed by the spouse attesting that the spouse consents	378
to the retirant's election to receive a single lifetime retirement	379
allowance or a payment under an optional benefit plan under which	380
after the death of the retirant the surviving spouse will receive	381
less than one-half of the lesser retirement allowance payable	382
during the life of the retirant.	383

(2) An application for retirement shall include an	384
explanation of all of the following:	385

(a) That, if the member is married, unless the spouse	386
consents to another plan of payment, the member's retirement	387
allowance will be paid under "option 2" and consist of the	388
actuarial equivalent of the member's retirement allowance in a	389
lesser amount payable for life and one-half of the lesser	390
allowance continuing after death to the surviving spouse for the	391
life of the spouse;	392

(b) A description of the alternative plans of payment	393
available with the consent of the spouse;	394

(c) That the spouse may consent to another plan of payment	395
and the procedure for giving consent;	396

(d) That consent is irrevocable once notice of consent is	397
filed with the board.	398

Consent shall be valid only if it is signed, in writing, and	399
witnessed by an employee of the board or a notary public.	400

(3) If the retirant does not select an optional plan as	401
described in division (D)(1)(a) of this section and the board does	402
not receive the written statement provided for in division	403
(D)(1)(b) of this section, it shall determine and pay the	404
retirement allowance in accordance with division (A)(2) of this	405
section, except that the board may provide by rule for waiver by	406
the board of the statement and payment of the allowance other than	407
in accordance with division (A)(2) of this section if the retirant	408
is unable to obtain the statement due to absence or incapacity of	409
the spouse or other cause specified by the board.	410

(E) A member of the fund who has elected an optional plan	411
under this section or section 742.3715 of the Revised Code may,	412
with the consent of the designated beneficiary, cancel the	413
optional plan and receive the retirement allowance payable	414
throughout life the member would have received had the member not	415
elected the optional plan, if the member makes a request to cancel	416
the optional plan not later than one year after the later of	417
September 9, 1988, or the date on which the member first receives	418
a payment under this section or section 742.3715 of the Revised	419
Code. Cancellation of the optional plan shall be effective the	420
month after acceptance of the request by the trustees of the fund.	421
No payment or adjustment shall be made in the retirement allowance	422
payable throughout the member's life to compensate for the lesser	423
allowance the member received under the optional plan.	424

The request to cancel the optional plan shall be made on a	425
form provided by the fund and shall be valid only if the completed	426
form includes a signed statement of the designated beneficiary's	427
understanding of and consent to the cancellation. The signature	428
shall be verified by the trustees of the fund prior to their	429
acceptance of the cancellation.	430

(F) Any option elected and payments made under this section	431
shall be in addition to any benefit payable under divisions (D),	432
(E), and (F) of section 742.37 of the Revised Code.	433

(G) A person is eligible to receive a benefit increase under	434
this division if the person is receiving a retirement allowance or	435
benefit under an optional plan elected under this section or	436
section 742.3715 of the Revised Code based on an award made prior	437
to July 24, 1986. A person is not eligible to receive an increase	438
under this division if the person is receiving a pension or	439
benefit in accordance with rules in force on April 1, 1947, that	440
govern the granting of pensions and benefits and that provide an	441
increase in the original pension or benefit from time to time	442
pursuant to changes in the salaries of active members.	443

On or before the fifteenth day of April of each year, theThe	444
board shall determine the average percentage change in the	445
consumer price index prepared by the United States bureau of labor	446
statistics (U.S. city average for urban wage earners and clerical	447
workers: "all items 1982-84=100") for the twelve-month period	448
prior to the first day of January over the next preceding	449
twelve-calendar-month period, as reported by the bureau. On a	450
determination by the board that this change is an increase or that	451
the change plus the accumulation described in this division is an	452
increase, the board shallannually increase all benefits payable	453
under this section or section 742.3715 of the Revised Code to	454
eligible persons by the actuarial equivalent of an amount	455
determined by multiplying twelve thousandthree hundred sixty	456
dollars by the percentage of the increase in the consumer price	457
index, or that percentage plus the accumulation, except that the	458
percentage shall not exceed three per cent and no benefit shall	459
exceed the limit established by section 415 of the "Internal	460
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	461
amended.	462

Any percentage of change in the consumer price index in any	463
year that is in excess of three per cent shall be accumulated and	464
used to determine increases under this section in succeeding	465
years. Any percentage of change in the consumer price index	466
accumulated by an eligible person prior to September 27, 1996,	467
shall be used in determining any future increases under this	468
section. The first increase is payable to all eligible persons on	469
July 1, 1988. The increase is payable for the ensuing	470
twelve-month period or until the next increase is granted under	471
this section, whichever is later.	472

The date of the first increase payable under this section	473
shall be the anniversary date for future increases.	474

Sec. 742.3716.  (A) As used in this section:

475

(1) "Eligible person" means a person who meets all of the	476
following conditions:	477

(a) Has been receiving a pension or benefit under this	478
chapter for one year or more based on an award made on or after	479
July 24, 1986;	480

(b) Has not made the election provided for in division (B)	481
of this section;	482

(c) Is not the spouse or survivor of a person who has made	483
the election provided for in division (B) of this section;	484

(d) Is receiving a benefit in accordance with division (A),	485
(B), or (C) of section 742.37, division (C)(2), (3), (4), or (5)	486
of former section 742.37, section 742.3711, or section 742.39 of	487
the Revised Code.	488

(2) "Recalculated average annual salary" means the highest	489
average annual compensation of a member of the Ohio police and	490
fire pension fund during any three years of contributions,	491
including amounts included in terminal pay attributable to such	492
three years, determined by dividing the member's total earnings as	493
an employee during such years by three.	494

(B)(1) Notwithstanding section 742.37 or 742.39 of the	495
Revised Code, a member of the fund who is not receiving a pension	496
or benefit under this chapter and who on January 1, 1989, has	497
completed fifteen or more years of active service in a police or	498
fire department may elect to have any future benefit or pension	499
paid to the member or the member's spouse or survivors under this	500
chapter calculated on the basis of the member's recalculated	501
average annual salary rather than the member's average annual	502
salary. The election shall be made by the member prior to or at	503
the time of making an election under section 742.3711 of the	504
Revised Code.	505

(2) If the member eligible to make the election under	506
division (B)(1) of this section dies prior to making the election	507
and at the time of death is eligible to retire and receive a	508
pension or benefit under division (C)(1) or (3) of section 742.37	509
of the Revised Code, the person entitled to receive a benefit	510
under section 742.3714 of the Revised Code may make the election	511
provided for in division (B)(1) of this section.	512

(3) The election under division (B)(1) or (2) of this	513
section shall be made on forms provided by the trustees of the	514
fund. Once received by the fund, the election shall be	515
irrevocable and shall bind the member and any other person who	516
receives a pension or benefit based on the member's service. No	517
person who receives a pension or benefit calculated in accordance	518
with division (B) of this section is eligible to receive a	519
cost-of-living allowance under this section. If the person making	520
the election receives a benefit under section 742.3714 of the	521
Revised Code, that person is not eligible to receive a	522
cost-of-living allowance under section 742.3711 of the Revised	523
Code.	524

(C)(1) On or before the fifteenth day of April of each year,	525
theThe board of trustees of the Ohio police and fire pension fund	526
shall determine the average percentage change in the consumer	527
price index prepared by the United States bureau of labor	528
statistics (U.S. City Average for Urban Wage Earners and Clerical	529
Workers: "All Items 1982-84=100") for the twelve-month period	530
prior to the first day of January over the next preceding	531
twelve-calendar-month period, as reported by the bureau. Upon a	532
determination by the board that such change is an increase or that	533
the change plus the accumulation described in division (C)(2) of	534
this section is an increase, the board shallannually increase all	535
benefits payable to eligible persons by a percentage equal to the	536
percentage increase in the consumer price index or to that	537
increase plus the accumulation, except that the increase shall not	538
exceed three per cent and,except that no benefit shall exceed the	539
limit established by section 415 of the "Internal Revenue Code of	540
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	541

(2) Any percentage of change in the consumer price index in	542
any year that is in excess of three per cent shall be accumulated	543
and used to determine increases under this section in succeeding	544
years. Any percentage of change in the consumer price index	545
accumulated by an eligible person prior to September 27, 1996,	546
shall be used in determining any future increases under this	547
section. The first additional benefitincrease is payable to all	548
eligible persons who on July 1, 1988, have been receiving a	549
pension or benefit for twelve months or longer. The additional	550
benefitincrease is payable for the ensuing twelve-month period or	551
until the next increase is granted under this section, whichever	552
is later.	553

The date of the first additional benefitincrease paid under	554
this section shall be the anniversary date for future additional	555
benefitsincreases. The pension or benefit used in the first	556
calculation of an additional benefitincrease under this section	557
shall remain as the base for all future additional benefits	558
increases paid under this section, unless a new base is	559
established by law.	560

(3) Additional benefits(2)Increases paid in years	561
subsequent to the year of the first additional benefitincrease	562
paid under this section shall be paid to all eligible persons who,	563
on the date that the additional benefitincrease is authorized by	564
the board, have been receiving a pension or benefit for twelve	565
months.	566

Sec. 742.3717.  (A)(1) Except as provided in division (A)(2)	567
of this section, as used in this section, "eligible person" means	568
a person who meets both of the following conditions:	569

(a) The person is receiving an annual pension or benefit	570
under division (A), (B), or (C) of section 742.37 or division	571
(C)(2), (3), (4), or (5) of former section 742.37 of the Revised	572
Code based on an award made prior to July 24, 1986.	573

(b) The person has not elected under section 742.3711 of the	574
Revised Code to receive a retirement allowance under an optional	575
benefit plan.	576

(2) A person is not an eligible person if the person is	577
receiving a pension or benefit in accordance with rules in force	578
on April 1, 1947, that govern the granting of pensions and	579
benefits and that provide an increase in the original pension or	580
benefit from time to time pursuant to changes in the salaries of	581
active members.	582

(B)(1) On or before the fifteenth day of April of each year,	583
theThe board of trustees of the Ohio police and fire pension fund	584
shall determine the average percentage change in the consumer	585
price index prepared by the United States bureau of labor	586
statistics (U.S. city average for urban wage earners and clerical	587
workers: "all items 1982-84=100") for the twelve-month period	588
prior to the first day of January over the next preceding	589
twelve-calendar-month period, as reported by the bureau. Upon a	590
determination by the board that this change is an increase or that	591
the change plus the accumulation described in division (B)(2) of	592
this section is an increase, the board shallannually increase all	593
benefits payable to eligible persons by an amount determined by	594
multiplying twelve thousandthree hundred sixty dollars by the	595
percentage of the increase in the consumer price index, or that	596
percentage plus the accumulation, except that the percentage shall	597
not exceed three per cent and no benefit shall exceed the limit	598
established by section 415 of the "Internal Revenue Code of 1986,"	599
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	600

(2) Any percentage of change in the consumer price index in	601
any year that is in excess of three per cent shall be accumulated	602
and used to determine increases under this section in succeeding	603
years. Any percentage of change in the consumer price index	604
accumulated by an eligible person prior to September 27, 1996,	605
shall be used in determining any future increases under this	606
section. The first increase is payable to all eligible persons on	607
July 1, 1988. The increase is payable for the ensuing	608
twelve-month period or until the next increase is granted under	609
this section, whichever is later.	610

The date of the first increase payable under this section	611
shall be the anniversary date for future increases.	612

Sec. 742.3718.  (A) Except as otherwise provided in this	613
division, each person who on September 9, 1988, is receiving a	614
pension or benefit of less than five thousand dollars annually	615
under division (A) or (B) of section 742.37 of the Revised Code on	616
the basis of disability or service of twenty-five years or more,	617
under division (C)(1) of that section, or under division (C)(2) or	618
(5) of former section 742.37 of the Revised Code shall have the	619
pension or benefit increased to five thousand dollars a year,	620
effective July 1, 1988. This division does not apply to any	621
person receiving a pension or benefit based on funded volunteer or	622
funded part-time service.	623

(B) On and after July 1, 1988:

624

(1) The pension of each person receiving a pension or	625
benefit under division (D) of section 742.37 of the Revised Code	626
shall be increased to four hundred ten dollars a month.	627

(2) The pension of each person receiving a pension or	628
benefit under division (E) of section 742.37 of the Revised Code	629
shall be increased to one hundred eighteen dollars a month.	630

(C) Notwithstanding any average annual salary limitation in	631
section 742.37 of the Revised Code, each person who on July 1,	632
1999, is receiving an annual pension or benefit described in	633
division (A), (B), or (C)(1) or (3) of that section of less than	634
six thousand six hundred dollars shall have the pension increased	635
to that amount, effective July 1, 1999. The increase granted	636
under this division shall be included in a person's base for the	637
purpose of determining future increases under section 742.3716 of	638
the Revised Code.	639

(D)(1) Except as provided in division (D)(2) of this	640
section, the monthly pension of each person who is the surviving	641
spouse of a deceased member of the fund and on the effective date	642
of this amendmentMarch17, 2000, is receiving a pension of less	643
than the amount described in division (D)(1) of section 742.37 of	644
the Revised Code shall be increased as follows:	645

(a) For the period beginning on the first day of the first	646
month following the effective date of this amendmentMarch17,	647
2000, and ending June 30, 2000, to five hundred fifty dollars;	648

(b) For the period beginning July 1, 2000, and the first day	649
of July of each year thereafter and continuing for the following	650
twelve months, to an amount equal to the greater of five hundred	651
fifty dollars or the monthly amount paid during the prior	652
twelve-month period plus an amount determined by multiplying five	653
hundred fiftysixteen dollars by the average percentage change in	654
the consumer price index, not exceeding three per cent, as	655
determined each year by the board of trustees of the Ohio police	656
and fire pension fund under section 742.3716 of the Revised Code	657
and fifty cents.	658

(2) An increase under division (D)(1) of this section shall	659
not be paid to a person who is receiving a pension under division	660
(D)(2) of section 742.37 of the Revised Code and a benefit under	661
division (B) or (D) of section 742.63 of the Revised Code until	662
the person ceases to be eligible for a benefit under division (B)	663
or (D) of section 742.63 of the Revised Code. The person's	664
monthly pension shall be increased, effective the first day of the	665
first month following the date on which the person ceases to be	666
eligible for the benefit, to the amount it would be under division	667
(D)(1) of this section had the person never been eligible for a	668
benefit under division (B) or (D) of section 742.63 of the Revised	669
Code.	670

(E) The monthly pension of each person receiving a pension	671
under division (E) of section 742.37 of the Revised Code shall be	672
increased to one hundred fifty dollars effective July 1, 1999.	673

(F) Effective July 1, 1999, the monthly pension of each	674
person receiving a pension under division (F) of section 742.37 of	675
the Revised Code shall be increased as follows:	676

(1) If there are two dependent parents, to one hundred	677
dollars;	678

(2) If there is one dependent parent, to two hundred	679
dollars.	680

Sec. 742.3720.  As used in this section, "eligible person"	681
means a person who has been receiving a pension under division (E)	682
or (F) of section 742.37 of the Revised Code for twelve months or	683
longer.	684

On or before the fifteenth day of April of each year, theThe	685
board of trustees of the Ohio police and firemen's disability and	686
fire pension fund shall determine the average percentage change in	687
the consumer price index prepared by the United States bureau of	688
labor statistics (U.S. City Average for Urban Wage Earners and	689
Clerical Workers: "All Items 1982-84 = 100") for the	690
twelve-calendar-month period prior to the first day of January	691
over the next preceding twelve-calendar-month period, as reported	692
by the bureau. On a determination by the board that this change	693
is an increase, or that the change plus the accumulation described	694
in this section is an increase, the board shallannually increase	695
pensions payable to eligible persons by a percentage equal to the	696
percentage increase in the consumer price index or to that	697
increase plus the accumulation, except that the increase shall not	698
exceed three per cent and,except that no pension shall exceed the	699
limit established by section 415 of the "Internal Revenue Code of	700
1986," 100 Stat. 2085, 26 U.S.C. 415, as amended.	701

Any percentage increase in the consumer price index in any	702
year that is in excess of three per cent shall be accumulated and	703
used to determine increases in succeeding years.	704

The first increase under this section is payable to eligible	705
persons beginning July 1, 2000. The increased amount is payable	706
for the ensuing twelve-month period or until the next increase is	707
granted under this section, whichever is later.	708

The date of the first increase under this section is the	709
anniversary date for any future increases. The pension used in	710
the first calculation of an increase under this section shall	711
remain as the base for all future increases paid under this	712
section, unless a new base is established by law.	713

The board shall adopt any rules necessary to implement this	714
section.	715

Sec. 3307.67.  (A) Beginning April 1, 1971, and each year	716
thereafter, theThe state teachers retirement board shall	717
determine the average percentage change in the consumer price	718
index prepared by the United States bureau of labor statistics	719
(U.S. City Average for Urban Wage Earners and Clerical Workers:	720
"All Items 1982-84=100") for the twelve-calendar-month period	721
prior to the first day of January over the next preceding	722
twelve-calendar-month period, as reported by the bureau.	723

Upon a determination by the board in any year that the change	724
in the consumer price index is an increase or that the change plus	725
the accumulation described in division (B) of this section is an	726
increase, the board shall annually increase each allowance or	727
benefit payable under sections 3307.50 to 3307.79 of the Revised	728
Code by a percentage equal to the percentage increase in the	729
consumer price index or to that increase plus the accumulation,	730
except that the increase shall not exceed three per cent and,	731
except that no allowance or benefit shall exceed the limit	732
established by section 415 of the "Internal Revenue Code of 1986,"	733
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	734

The first increase is payable to all persons becoming	735
eligible after June 30, 1971, upon such persons receiving an	736
allowance or benefit for twelve months. The increased amount is	737
payable for the ensuing twelve-month period or until the next	738
increase is granted under this section, whichever is later.	739
Subsequent increases shall be determined from the date of the	740
first increase paid to the former member in the case of an	741
allowance being paid a beneficiary under an option, or from the	742
date of the first increase to the survivor first receiving an	743
allowance or benefit in the case of an allowance or benefit being	744
paid to the subsequent survivors of the former member.	745

The date of the first increase under this section becomes the	746
anniversary date for any future increases.	747

The allowance or benefit used in the first calculation of an	748
increase under this section shall remain as the base for all	749
future increases, unless a new base is established.	750

(B) Any percentage of change in the consumer price index in	751
any year that is in excess of three per cent shall be accumulated	752
and used to determine increases under this section in subsequent	753
years. Any percentage of change in the consumer price index	754
accumulated by an eligible person prior to September 27, 1996,	755
shall be used in determining any future increases under this	756
section.	757

(C) The board shall make all rules necessary to carry out	758
this section.	759

Sec. 3309.374.  (A) Beginning April 1, 1971, and each year	760
thereafter, the board of theThe school employees retirement	761
system shall determine the average percentage change in the	762
consumer price index prepared by the United States bureau of labor	763
statistics (U.S. City Average for Urban Wage Earners and Clerical	764
Workers: "All Items 1982-84=100") for the twelve-calendar-month	765
period prior to the first day of January over the next preceding	766
twelve-calendar-month period, as reported by the bureau.	767

Upon a determination by the board in any year that the change	768
in the consumer price index is an increase or that the change plus	769
the accumulation described in division (B) of this section is an	770
increase, the board shall annually increase each allowance,	771
pension, or benefit payable under this chapter by a percentage	772
equal to the percentage increase in the consumer price index or to	773
that increase plus the accumulation, except that the increase	774
shall not exceed three per cent and, except that no allowance,	775
pension, or benefit shall exceed the limit established by section	776
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	777
U.S.C.A. 415, as amended.	778

The first increase is payable to all persons becoming	779
eligible after June 30, 1971, upon such persons receiving an	780
allowance, pension, or benefit for twelve months.	781

The increased amount is payable for the ensuing twelve-month	782
period or until the next increase is granted under this section,	783
whichever is later. Subsequent increases shall be determined from	784
the date of the first increase paid to the former member in the	785
case of an allowance being paid a beneficiary under an option, or	786
from the date of the first increase to the survivor first	787
receiving an allowance or benefit in the case of an allowance or	788
benefit being paid to the subsequent survivors of the former	789
member.	790

The date of the first increase under this section becomes the	791
anniversary date for any future increases.	792

The allowance or benefit used in the first calculation of an	793
increase under this section shall remain as the base for all	794
future increases, unless a new base is established. Any increase	795
resulting from payment of a recalculated benefit under Section 3	796
of Substitute Senate Bill No. 270 of the 123rd general assembly	797
shall be included in the calculation of future increases under	798
this section.	799

(B) Any percentage of change in the consumer price index in	800
any year that is in excess of three per cent shall be accumulated	801
and used to determine increases under this section in subsequent	802
years. Any percentage of change in the consumer price index	803
accumulated by an eligible person prior to September 27, 1996,	804
shall be used in determining any future increases under this	805
section.	806

(C) The board shall make all rules necessary to carry out	807
this section.	808

Sec. 5505.174.  (A) The following persons are eligible to	809
receive an additional benefitincrease under this section:	810

(1) Persons fifty-three years old or older who have been	811
receiving pensions pursuant to division (B) of section 5505.16,	812
division (A)(1) of section 5505.17, or division (B) of section	813
5505.18 of the Revised Code for not less than twelve months;	814

(2) Persons who have been receiving pensions pursuant to	815
division (B) of section 5505.18 of the Revised Code for not less	816
than sixty months regardless of age;	817

(3) Persons who have been receiving pensions pursuant to	818
section 5505.162 or division (A)(3), (4), (5), (6), or (7) of	819
section 5505.17 of the Revised Code for not less than twelve	820
months regardless of age.	821

(B) On the fifteenth day of September of each year, theThe	822
state highway patrol retirement board shall determine the average	823
percentage change in the consumer price index prepared by the	824
United States bureau of labor statistics (U.S. City Average for	825
Urban Wage Earners and Clerical Workers: "All Items 1982-84=100")	826
for the twelve-month period prior to the first day of January over	827
the next preceding twelve-calendar-month period, as reported by	828
the bureau. Upon a determination by the board that the change is	829
an increase or that the change plus the accumulation described in	830
division (C) of this section is an increase, the board shall	831
annually increase each benefit payable under this chapter by a	832
percentage equal to the percentage increase in the consumer price	833
index or to that increase plus the accumulation, except that the	834
increase shall not exceed three per cent and,except that no	835
benefit shall exceed the limit established by section 415 of the	836
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	837
as amended.	838

For each person eligible to receive the additional benefit	839
under this section, the accumulation shall commence on the later	840
of May 6, 1988, or the effective date of the pension the person	841
receives.	842

The first additional benefitincrease is payable to all	843
persons becoming eligible on or after November 18, 1981. The	844
additional benefitincrease is payable for each ensuing	845
twelve-month period or until the next increase is granted under	846
this section, whichever is later.	847

The date of the first additional benefitincrease paid under	848
this section shall be the anniversary date for future additional	849
benefitsincreases. The pension used in the first calculation of	850
an additional benefitincrease under this section shall remain as	851
the base for all future additional benefitsincreases paid under	852
this section, unless a new base is established.	853

Additional benefitsIncreases paid in years subsequent to the	854
year of the first additional benefitincrease paid under this	855
section shall be paid to all persons who, on the date that the	856
additional benefitincrease is authorized by the board, are	857
eligible for the benefit as provided in this section.	858

(C) Any percentage of change in the consumer price index in	859
any year that is in excess of three per cent shall be accumulated	860
and used to determine increases under this section in subsequent	861
years. Any percentage of change in the consumer price index	862
accumulated by an eligible person prior to the effective date of	863
this amendment shall be used in determining any future increases	864
under this section.	865

(D) The board shall adopt, and may amend or rescind, any	866
rule necessary to carry out this section.	867

The board shall adopt, and may amend or rescind, any rule	868
necessary to carry out this section.	869

Section 2.  That existing sections 145.323, 742.37, 742.3711,	870
742.3716, 742.3717, 742.3718, 742.3720, 3307.67, 3309.374, and	871
5505.174 of the Revised Code are hereby repealed.	872