SENATORS Blessing, Mead, DiDonato, Fingerhut, McLin, Spada, Austria, Carnes, Coughlin, Espy, Furney, Randy Gardner, Robert Gardner, Hagan, Harris, Herington, Mallory, Mumper, Oelslager, Prentiss, Ryan, Shoemaker

To amend sections 145.297, 145.323, 742.37, 742.3711,

1

742.3716, 742.3717, 742.3718, 742.63, 3307.67,

2

3309.374, and 5505.174 and to repeal section

3

742.3720 of the Revised Code to provide that the

4

annual cost of living increase paid to retired

5

members and beneficiaries of Ohio's state

6

retirement systems will be three per cent, and to

7

provide pension and death benefits to certain

8

surviving spouses of former members of local police

9

or firemen's pension funds established under former

10

Chapter 741. of the Revised Code.

11

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

Section 1.  That sections 145.297, 145.323, 742.37, 742.3711,	12
742.3716, 742.3717, 742.3718, 742.63, 3307.67, 3309.374, and	13
5505.174 of the Revised Code be amended to read as follows:	14

Sec. 145.297.  (A) As used in this section, "employing unit"	15
means:	16

(1) A municipal corporation, agency of a municipal	17
corporation designated by the legislative authority, park	18
district, conservancy district, sanitary district, health	19
district, township, department of a township designated by the	20
board of township trustees, metropolitan housing authority, public	21
library, county law library, union cemetery, joint hospital, or	22
other political subdivision or unit of local government.	23

(2) With respect to state employees, any entity of the state	24
including any department, agency, institution of higher education,	25
board, bureau, commission, council, office, or administrative body	26
or any part of such entity that is designated by the entity as an	27
employing unit.	28

(3)(a) With respect to employees of a board of alcohol, drug	29
addiction, and mental health services, that board.	30

(b) With respect to employees of a county board of mental	31
retardation and developmental disabilities, that board.	32

(c) With respect to other county employees, the county or	33
any county agency designated by the board of county commissioners.	34

(4) In the case of an employee whose employing unit is in	35
question, the employing unit is the unit through whose payroll the	36
employee is paid.	37

(B) An employing unit may establish a retirement incentive	38
plan for its eligible employees. In the case of a county or	39
county agency, decisions on whether to establish a retirement	40
incentive plan for any employees other than employees of a board	41
of alcohol, drug addiction, and mental health services or county	42
board of mental retardation and developmental disabilities and on	43
the terms of the plan shall be made by the board of county	44
commissioners. In the case of a municipal corporation or an	45
agency of a municipal corporation, decisions on whether to	46
establish a retirement incentive plan and on the terms of the plan	47
shall be made by the legislative authority.	48

All terms of a retirement incentive plan shall be in writing.

49

A retirement incentive plan shall provide for purchase by the	50
employing unit of service credit for eligible employees who elect	51
to participate in the plan and for payment by the employing unit	52
of the entire cost of the service credit purchased.	53

Every retirement incentive plan shall remain in effect for at	54
least one year. The employing unit shall give employees at least	55
thirty days' notice before terminating the plan.	56

Every retirement incentive plan shall include provisions for	57
the timely and impartial resolution of grievances and disputes	58
arising under the plan.	59

No employing unit shall have more than one retirement	60
incentive plan in effect at any time.	61

(C) Any classified or unclassified employee of the employing	62
unit who is a member of the public employees retirement system	63
shall be eligible to participate in the retirement incentive plan	64
established by the employee's employing unit if the employee meets	65
the following criteria:	66

(1) The employee is not any of the following:

67

(a) An elected official;

68

(b) A member of a board or commission;

69

(c) A person elected to serve a term of fixed length;

70

(d) A person appointed to serve a term of fixed length,	71
other than a person appointed and employed by the person's	72
employing unit.	73

(2) The employee is or will be eligible to retire under	74
section 145.32, 145.34, 145.37, or division (A) of section 145.33	75
of the Revised Code on or before the date of termination of the	76
retirement incentive plan. Service credit to be purchased for the	77
employee under the retirement incentive plan shall be included in	78
making such determination.	79

(3) The employee agrees to retire under section 145.32,	80
145.34, 145.37, or division (A) of section 145.33 of the Revised	81
Code within ninety days after receiving notice from the public	82
employees retirement system that service credit has been purchased	83
for the employee under this section.	84

Participation in the plan shall be available to all eligible	85
employees except that the employing unit may limit the number of	86
participants in the plan to a specified percentage of its	87
employees who are members of the public employees retirement	88
system on the date the plan goes into effect. The percentage	89
shall not be less than five per cent of such employees. If	90
participation is limited, employees with more total service credit	91
have the right to elect to participate before employees with less	92
total service credit. In the case of employees with the same	93
total service credit, employees with a greater length of service	94
with the employing unit have the right to elect to participate	95
before employees with less service with the employing unit.	96
Employees with less than eighteen months of service with the	97
employing unit have the right to elect to participate only after	98
all other eligible employees have been given the opportunity to	99
elect to participate. For the purpose of determining which	100
employees may participate in a plan, total service credit includes	101
service credit purchased by the employee under this chapter after	102
the date on which the plan is established.	103

A retirement incentive plan that limits participation may	104
provide that an employee who does not notify the employing unit of	105
the employee's decision to participate in the plan within a	106
specified period of time will lose priority to participate in the	107
plan ahead of other employees with less seniority. The time given	108
to an employee to elect to participate ahead of other employees	109
shall not be less than thirty days after the employee receives	110
written notice that the employee may participate in the plan.	111

(D) A retirement incentive plan shall provide for purchase	112
of the same amount of service credit for each participating	113
employee, except that the employer may not purchase more service	114
credit for any employee than the lesser of the following:	115

(1) Five years of service credit;

116

(2) An amount of service credit equal to one-fifth of the	117
total service credited to the participant under this chapter,	118
exclusive of service credit purchased under this section.	119

For each year of service credit purchased under this section,	120
the employing unit shall pay an amount equal to the additional	121
liability resulting from the purchase of that year of service	122
credit, as determined by an actuary employed by the public	123
employees retirement board.	124

(E) Upon the election by an eligible employee to participate	125
in the retirement incentive plan, the employee and the employing	126
unit shall agree upon a date for payment or contracting for	127
payment in installments to the public employees retirement system	128
of the cost of the service credit to be purchased. The employing	129
unit shall submit to the public employees retirement system a	130
written request for a determination of the cost of the service	131
credit, and within forty-five days after receiving the request,	132
the board shall give the employing unit written notice of the	133
cost.	134

The employing unit shall pay or contract to pay in	135
installments the cost of the service credit to be purchased to the	136
public employees retirement system on the date agreed to by the	137
employee and the employing unit. The payment shall be made in	138
accordance with rules adopted by the public employees retirement	139
board. The rules may provide for payment in installments and for	140
crediting the purchased credit to the employee's account upon the	141
employer's contracting to pay the cost in installments. The board	142
shall notify the member when the member is credited with service	143
purchased under this section. If the employee does not retire	144
within ninety days after receiving notice that the employee has	145
been credited with the purchased service credit, the system shall	146
refund to the employing unit the amount paid for the service	147
credit.	148

No payment made to the public employees retirement system	149
under this section shall affect any payment required by section	150
145.48 of the Revised Code.	151

Sec. 145.323.  (A) Beginning April 1, 1971, and each year	152
thereafter, the board of theThe public employees retirement	153
system shall determine the average percentage change in the	154
consumer price index prepared by the United States bureau of labor	155
statistics (U.S. City Average for Urban Wage Earners and Clerical	156
Workers: "All Items 1982-84=100") for the twelve-calendar-month	157
period prior to the first day of January over the next preceding	158
twelve-calendar-month period, as reported by the bureau.	159

Upon a determination by the board in any year that the change	160
in the consumer price index is an increase or that the change plus	161
the accumulation described in division (B) of this section is an	162
increase, the board shall annually increase each allowance,	163
pension, or benefit payable under this chapter by a percentage	164
equal to the percentage increase in the consumer price index or to	165
that increase plus the accumulation, except that the increase	166
shall not exceed three per cent and,except that no allowance,	167
pension, or benefit shall exceed the limit established by section	168
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	169
U.S.C.A. 415, as amended.	170

The first increase is payable to all persons becoming	171
eligible after June 30, 1971, upon such persons receiving an	172
allowance for twelve months. The increased amount is payable for	173
the ensuing twelve-month period or until the next increase is	174
granted under this section, whichever is later. Subsequent	175
increases shall be determined from the date of the first increase	176
paid to the former member in the case of an allowance being paid a	177
beneficiary under an option, or from the date of the first	178
increase to the survivor first receiving an allowance or benefit	179
in the case of an allowance or benefit being paid to the	180
subsequent survivors of the former member.	181

The date of the first increase under this section becomes the	182
anniversary date for any future increases.	183

The allowance or benefit used in the first calculation of an	184
increase under this section shall remain as the base for all	185
future increases, unless a new base is established.	186

(B) Any percentage of change in the consumer price index in	187
any year that is in excess of three per cent shall be accumulated	188
and used to determine increases under this section in subsequent	189
years. Any percentage of change in the consumer price index	190
accumulated by an eligible person prior to the effective date of	191
this amendment shall be used in determining any future increases	192
under this section.	193

(C) The board shall make all rules necessary to carry out	194
this section.	195

Sec. 742.37.  The board of trustees of the Ohio police and	196
fire pension fund shall adopt rules for the management of the fund	197
and for the disbursement of benefits and pensions as set forth in	198
this section and section 742.39 of the Revised Code. Any payment	199
of a benefit or pension under this section is subject to the	200
provisions of section 742.461 of the Revised Code. Notwithstanding	201
any other provision of this section, no pension or benefit paid or	202
determined under division (B) or (C) of this section or section	203
742.39 of the Revised Code shall exceed the limit established by	204
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	205
2085, 26 U.S.C.A. 415, as amended.	206

(A) Persons who were receiving benefit or pension payments	207
from a police relief and pension fund established under former	208
section 741.32 of the Revised Code, or from a firemen's relief and	209
pension fund established under former section 521.02 or 741.02 of	210
the Revised Code, at the time the assets of the fund were	211
transferred to the Ohio police and fire pension fund, known at	212
that time as the police and firemen's disability and pension fund,	213
shall receive benefit and pension payments from the Ohio police	214
and fire pension fund in the same amount and subject to the same	215
conditions as such payments were being made from the former fund	216
on the date of the transfer.	217

(B) A member of the fund who, pursuant to law, elected to	218
receive benefits and pensions from a police relief and pension	219
fund established under former section 741.32 of the Revised Code,	220
or from a firemen's relief and pension fund established under	221
former section 741.02 of the Revised Code, in accordance with the	222
rules of the fund governing the granting of benefits or pensions	223
therefrom in force on April 1, 1947, shall receive benefits and	224
pensions from the Ohio police and fire pension fund in accordance	225
with such rules; provided, that any member of the fund who is not	226
receiving a benefit or pension from the fund on August 12, 1975,	227
may, upon application for a benefit or pension to be received on	228
or after August 12, 1975, elect to receive a benefit or pension in	229
accordance with division (C) of this section.	230

(C) Members of the fund who have not elected to receive	231
benefits and pensions from a police relief and pension fund or a	232
firemen's relief and pension fund in accordance with the rules of	233
the fund in force on April 1, 1947, shall receive pensions and	234
benefits in accordance with the following provisions:	235

(1) A member of the fund who has completed twenty-five years	236
of active service in a police or fire department and has attained	237
forty-eight years of age may, at the member's election, retire	238
from the police or fire department, and upon notifying the board	239
in writing of the election, shall receive an annual pension,	240
payable in twelve monthly installments, in an amount equal to a	241
percentage of the member's average annual salary. The percentage	242
shall be the sum of two and one-half per cent for each of the	243
first twenty years the member was in the active service of the	244
department, plus two per cent for each of the twenty-first to	245
twenty-fifth years the member was in the active service of the	246
department, plus one and one-half per cent for each year in excess	247
of twenty-five years the member was in the active service of the	248
department. The annual pension shall not exceed seventy-two per	249
cent of the member's average annual salary.	250

A member who completed twenty-five years of active service,	251
has resigned or been discharged, and has left the sum deducted	252
from the member's salary on deposit in the pension fund shall,	253
upon attaining forty-eight years of age, be entitled to receive a	254
normal service pension benefit computed and paid under division	255
(C)(1) of this section.	256

(2) A member of the fund who has served fifteen or more	257
years as an active member of a police or fire department and who	258
voluntarily resigns or is discharged from the department for any	259
reason other than dishonesty, cowardice, intemperate habits, or	260
conviction of a felony, shall receive an annual pension, payable	261
in twelve monthly installments, in an amount equal to one and	262
one-half per cent of the member's average annual salary multiplied	263
by the number of full years the member was in the active service	264
of the department. The pension payments shall not commence until	265
the member has attained the age of forty-eight years and until	266
twenty-five years have elapsed from the date on which the member	267
became a full-time regular police officer or firefighter in the	268
department.	269

(3) A member of the fund who has completed fifteen or more	270
years of active service in a police or fire department and who has	271
attained sixty-two years of age, may retire from the department	272
and, upon notifying the board in writing of the election to	273
retire, shall receive an annual pension, payable in twelve monthly	274
installments, in an amount equal to a percentage of the member's	275
average annual salary. The percentage shall be the sum of two and	276
one-half per cent for each of the first twenty years the member	277
was in the active service of the department, plus two per cent for	278
each of the twenty-first to twenty-fifth years the member was in	279
the active service of the department, plus one and one-half per	280
cent for each year in excess of twenty-five years the member was	281
in the active service of the department. The annual pension shall	282
not exceed seventy-two per cent of the member's average annual	283
salary.	284

(4) With the exception of those persons who may make	285
application for benefits as provided in section 742.26 of the	286
Revised Code, no person receiving a pension or other benefit under	287
division (C) of this section on or after July 24, 1986, shall be	288
entitled to apply for any new, changed, or different benefit.	289

If a member covered by division (C) of this section or	290
section 742.38 of the Revised Code dies prior to the time the	291
member has received a payment and leaves a surviving spouse or	292
dependent child, the surviving spouse or dependent child shall	293
receive a pension under division (D) or (E) of this section.	294

(D)(1) Except as provided in division (D)(2) of this	295
section, a surviving spouse of a deceased member of the fund or a	296
surviving spouse described in division (D)(4) of this section	297
shall receive a monthly pension as follows:	298

(a) For the period beginning July 1, 1999, and ending June	299
30, 2000, five hundred fifty dollars;	300

(b) For the period beginning July 1, 2000, and the first day	301
of July of each year thereafter and continuing for the following	302
twelve months, an amount equal to the monthly amount paid during	303
the prior twelve-month period plus an amount determined by	304
multiplying five hundred fiftysixteen dollars by the average	305
percentage change in the consumer price index, not exceeding three	306
per cent, as determined each year by the board under section	307
742.3716 of the Revised Codeand fifty cents.	308

(2) A surviving spouse of a deceased member of the fund	309
shall receive a monthly pension of four hundred ten dollars if the	310
surviving spouse is eligible for a benefit under division (B) or	311
(D) of section 742.63 of the Revised Code. If the surviving	312
spouse ceases to be eligible for a benefit under division (B) or	313
(D) of section 742.63 of the Revised Code, the pension shall be	314
increased, effective the first day of the first month following	315
the day on which the surviving spouse ceases to be eligible for	316
the benefit, to the amount it would be under division (D)(1) of	317
this section had the spouse never been eligible for a benefit	318
under division (B) or (D) of section 742.63 of the Revised Code.	319

(3) A pension paid under this division shall continue during	320
the natural life of the surviving spouse. Benefits to a deceased	321
member's surviving spouse that were terminated under a former	322
version of this section that required termination due to	323
remarriage and were not resumed prior to September 16, 1998, shall	324
resume on the first day of the month immediately following receipt	325
by the board of an application on a form provided by the board.	326

(4) A surviving spouse of a deceased member of or contributor	327
to a fund established under former Chapter 521. or 741. of the	328
Revised Code whose benefit or pension was terminated or not paid	329
due to remarriage shall receive a monthly pension under division	330
(D)(1) of this section.	331

The pension shall commence on the first day of the month	332
immediately following receipt by the board of a completed	333
application on a form provided by the board and evidence	334
acceptable to the board that at the time of death the deceased	335
spouse was a member of or contributor to a police or firemen's	336
relief and pension fund established under former Chapter 521. or	337
741. of the Revised Code and that the surviving spouse's benefits	338
were terminated or not granted due to remarriage.	339

(E)(1) Each surviving child of a deceased member of the	340
fund shall receive a monthly pension of one hundred fifty dollars	341
until the child attains the age of eighteen years, or marries,	342
whichever event occurs first. A pension under this division,	343
however, shall continue to be payable to a child under age	344
twenty-two who is a student in and attending an institution of	345
learning or training pursuant to a program designed to complete in	346
each school year the equivalent of at least two-thirds of the	347
full-time curriculum requirements of the institution, as	348
determined by the board. If any surviving child, regardless of	349
age at the time of the member's death, because of physical or	350
mental disability, is totally dependent upon the deceased member	351
for support at the time of death, the child shall receive a	352
monthly pension under this division during the child's natural	353
life or until the child has recovered from the disability.	354

(2) An eligible surviving child shall receive a monthly	355
pension as follows:	356

(a) For the period beginning July 1, 2002, and ending June	357
30, 2003, one hundred sixty-three dollars and fifty cents;	358

(b) For the period beginning July 1, 2003, and the first day	359
of each July thereafter and continuing for the following twelve	360
months, an amount equal to the monthly amount paid during the	361
prior twelve-month period plus four dollars and fifty cents.	362

(F)(1) If a deceased member of the fund leaves no surviving	363
spouse or surviving children, but leaves one or two parents	364
dependent upon the deceased member for support, each parent shall	365
be paid a monthly pension of one hundred dollars. If there is	366
only one parent dependent upon the member for support, the parent	367
shall be paid a monthly pension of two hundred dollars. The	368
pensions provided for in this division shall be paid during the	369
natural life of the surviving parents, or until dependency ceases,	370
or until remarriage, whichever event occurs first.	371

(2) Each eligible surviving parent shall be paid a monthly	372
pension as follows:	373

(a) For the period ending June 30, 2002, one hundred six	374
dollars for each parent or two hundred twelve dollars for a sole	375
dependent parent;	376

(b) For the period beginning July 1, 2002, and ending June	377
30, 2003, one hundred nine dollars for each parent or two hundred	378
eighteen dollars for a sole dependent parent;	379

(c) For the period beginning July 1, 2003, and the first day	380
of each July thereafter and continuing for the following twelve	381
months, an amount equal to the monthly amount paid during the	382
prior twelve-month period plus three dollars for each parent or	383
six dollars for a sole dependent parent.	384

(G) Subject to the provisions of section 742.461 of the	385
Revised Code, a member of the fund who voluntarily resigns or is	386
removed from active service in a police or fire department is	387
entitled to receive an amount equal to the sums deducted from the	388
member's salary and credited to the member's account in the fund,	389
except that a member receiving a disability benefit or service	390
pension is not entitled to receive any return of contributions to	391
the fund.	392

(H) On and after January 1, 1970, all pensions shall be	393
increased in accordance with the following provisions:	394

(1) A member of the fund who retired prior to January 1,	395
1967, has attained age sixty-five on January 1, 1970, and was	396
receiving a pension on December 31, 1969, pursuant to division (B)	397
or (C)(1) of this section or former division (C)(2), (3), (4), or	398
(5) of this section, shall have the pension increased by ten per	399
cent.	400

(2) The monthly pension payable to eligible surviving	401
spouses under division (D) of this section shall be increased by	402
forty dollars for each surviving spouse receiving a pension on	403
December 31, 1969.	404

(3) The monthly pension payable to each eligible child under	405
division (E) of this section shall be increased by ten dollars for	406
each child receiving a pension on December 31, 1969.	407

(4) The monthly pension payable to each eligible dependent	408
parent under division (F) of this section shall be increased by	409
thirty dollars for each parent receiving a pension on December 31,	410
1969.	411

(5) A member of the fund, including a survivor of a member,	412
who is receiving a pension in accordance with the rules governing	413
the granting of pensions and benefits in force on April 1, 1947,	414
that provide an increase in the original pension from time to time	415
pursuant to changes in the salaries of active members, shall not	416
be eligible for the benefits provided in this division.	417

(I) On and after January 1, 1977, a member of the fund who	418
was receiving a pension or benefit on December 31, 1973, under	419
division (A), (B), (C)(1), or former division (C)(2) or (7) of	420
this section shall have the pension or benefit increased as	421
follows:	422

(1) If the member's annual pension or benefit is less than	423
two thousand seven hundred dollars, it shall be increased to three	424
thousand dollars.	425

(2) If the member's annual pension or benefit is two	426
thousand seven hundred dollars or more, it shall be increased by	427
three hundred dollars.	428

The following shall not be eligible to receive increased	429
pensions or benefits as provided in this division:	430

(a) A member of the fund who is receiving a pension or	431
benefit in accordance with the rules in force on April 1, 1947,	432
governing the granting of pensions and benefits, which provide an	433
increase in the original pension or benefit from time to time	434
pursuant to changes in the salaries of active members;	435

(b) A member of the fund who is receiving a pension or	436
benefit under division (A) or (B) of this section, based on funded	437
volunteer or funded part-time service, or off-duty disability, or	438
partial on-duty disability, or early vested service;	439

(c) A member of the fund who is receiving a pension under	440
division (C)(1) of this section, based on funded volunteer or	441
funded part-time service.	442

(J) On and after July 1, 1977, a member of the fund who was	443
receiving an annual pension or benefit on December 31, 1973,	444
pursuant to division (B) of this section, based upon partial	445
disability, off-duty disability, or early vested service, or	446
pursuant to former division (C)(3), (5), or (6) of this section,	447
shall have such annual pension or benefit increased by three	448
hundred dollars.	449

The following are not eligible to receive the increase	450
provided by this division:	451

(1) A member of the fund who is receiving a pension or	452
benefit in accordance with the rules in force on April 1, 1947,	453
governing the granting of pensions and benefits, which provide an	454
increase in the original pension or benefit from time to time	455
pursuant to changes in the salaries of active members;	456

(2) A member of the fund who is receiving a pension or	457
benefit under division (B) or (C)(2) of this section or former	458
division (C)(3), (5), or (6) of this section based on volunteer or	459
part-time service.	460

(K)(1) Except as otherwise provided in this division, every	461
person who on July 24, 1986, is receiving an age and service or	462
disability pension, allowance, or benefit pursuant to this chapter	463
in an amount less than thirteen thousand dollars a year that is	464
based upon an award made effective prior to February 28, 1984,	465
shall receive an increase of six hundred dollars a year or the	466
amount necessary to increase the pension or benefit to four	467
thousand two hundred dollars after all adjustments required by	468
this section, whichever is greater.	469

(2) Division (K)(1) of this section does not apply to the	470
following:	471

(a) A member of the fund who is receiving a pension or	472
benefit in accordance with rules in force on April 1, 1947, that	473
govern the granting of pensions and benefits and that provide an	474
increase in the original pension or benefit from time to time	475
pursuant to changes in the salaries of active members;	476

(b) A member of the fund who is receiving a pension or	477
benefit based on funded volunteer or funded part-time service.	478

(L) On and after July 24, 1986:

479

(1) The pension of each person receiving a pension under	480
division (D) of this section on July 24, 1986, shall be increased	481
to three hundred ten dollars per month.	482

(2) The pension of each person receiving a pension under	483
division (E) of this section on July 24, 1986, shall be increased	484
to ninety-three dollars per month.	485

Sec. 742.3711.  (A) On application for retirement as	486
provided in section 742.37 of the Revised Code, a member of the	487
fund may elect to receive a retirement allowance payable	488
throughout the member's life, or may elect, on the application for	489
retirement, to receive the actuarial equivalent of the member's	490
retirement allowance in a lesser amount payable for life and	491
continuing after death to a surviving designated beneficiary under	492
one of the following optional plans, provided the amount payable	493
to the beneficiary shall not exceed the amount payable to the	494
retiring member of the fund, and is certified by the actuary	495
engaged by the board of trustees of the Ohio police and fire	496
pension fund to be the actuarial equivalent of the member's	497
retirement allowance and is approved by the board.	498

(1) Option 1. The member's lesser retirement allowance	499
shall be paid for life to the sole beneficiary designated at the	500
time of the member's retirement.	501

(2) Option 2. One-half or some other portion of the	502
member's lesser retirement allowance shall be paid for life to the	503
sole beneficiary designated at the time of the member's	504
retirement.	505

(3) Option 3. Upon the member's death before the expiration	506
of a certain period from the retirement date and elected by the	507
member and approved by the retirement board, the member's lesser	508
retirement allowance shall be continued for the remainder of that	509
period to the beneficiary the member has nominated by written	510
designation and filed with the retirement board.	511

Should the nominated beneficiary designated in writing become	512
deceased prior to the expiration of the guarantee period, then for	513
the purpose of completing payment for the remainder of the	514
guarantee period, the present value of such payments shall be paid	515
to the estate of the beneficiary last receiving.	516

(B)(1) On or after February 28, 1980, the death of a spouse	517
nominated as beneficiary or the death of any other nominated	518
beneficiary following retirement shall cancel any optional plan of	519
payment to provide continuing lifetime benefits to such nominated	520
beneficiary and return the member of the fund to the member's	521
single lifetime benefit equivalent, as determined by the board, to	522
be effective the month following receipt by the board of notice of	523
the death.	524

(2) On divorce, annulment, or marriage dissolution, a member	525
receiving a retirement allowance under a plan that provides for	526
continuation of all or part of the allowance after death for the	527
lifetime of the member's surviving spouse may, with the written	528
consent of the spouse or pursuant to an order of the court with	529
jurisdiction over the termination of the marriage, elect to cancel	530
the plan and receive the member's single lifetime benefit	531
equivalent as determined by the board. The election shall be made	532
on a form provided by the board and shall be effective the month	533
following its receipt by the board.	534

(C) Following marriage or remarriage, a member of the fund	535
may elect not later than one year after the date of marriage or	536
remarriage a new optional plan of payment based on the actuarial	537
equivalent of the member's single lifetime benefit as determined	538
by the board. The plan and the member's lesser retirement	539
allowance shall become effective on the date the election is made	540
on a form approved by the board.	541

(D)(1) Unless one of the following occurs, an application	542
for retirement by a married person shall be considered an election	543
of a benefit under option 2 as provided for in division (A)(2) of	544
this section under which one-half of the lesser retirement	545
allowance payable during the life of the retirant will be paid	546
after death to the retirant's spouse for life as sole beneficiary:	547

(a) The retirant selects an optional plan under division (A)	548
of this section providing for payment after death to the	549
retirant's spouse for life as sole beneficiary of more than	550
one-half of the lesser retirement allowance payable during the	551
life of the retirant;	552

(b) The retirant submits to the retirement board a written	553
statement signed by the spouse attesting that the spouse consents	554
to the retirant's election to receive a single lifetime retirement	555
allowance or a payment under an optional benefit plan under which	556
after the death of the retirant the surviving spouse will receive	557
less than one-half of the lesser retirement allowance payable	558
during the life of the retirant.	559

(2) An application for retirement shall include an	560
explanation of all of the following:	561

(a) That, if the member is married, unless the spouse	562
consents to another plan of payment, the member's retirement	563
allowance will be paid under "option 2" and consist of the	564
actuarial equivalent of the member's retirement allowance in a	565
lesser amount payable for life and one-half of the lesser	566
allowance continuing after death to the surviving spouse for the	567
life of the spouse;	568

(b) A description of the alternative plans of payment	569
available with the consent of the spouse;	570

(c) That the spouse may consent to another plan of payment	571
and the procedure for giving consent;	572

(d) That consent is irrevocable once notice of consent is	573
filed with the board.	574

Consent shall be valid only if it is signed, in writing, and	575
witnessed by an employee of the board or a notary public.	576

(3) If the retirant does not select an optional plan as	577
described in division (D)(1)(a) of this section and the board does	578
not receive the written statement provided for in division	579
(D)(1)(b) of this section, it shall determine and pay the	580
retirement allowance in accordance with division (A)(2) of this	581
section, except that the board may provide by rule for waiver by	582
the board of the statement and payment of the allowance other than	583
in accordance with division (A)(2) of this section if the retirant	584
is unable to obtain the statement due to absence or incapacity of	585
the spouse or other cause specified by the board.	586

(E) A member of the fund who has elected an optional plan	587
under this section or section 742.3715 of the Revised Code may,	588
with the consent of the designated beneficiary, cancel the	589
optional plan and receive the retirement allowance payable	590
throughout life the member would have received had the member not	591
elected the optional plan, if the member makes a request to cancel	592
the optional plan not later than one year after the later of	593
September 9, 1988, or the date on which the member first receives	594
a payment under this section or section 742.3715 of the Revised	595
Code. Cancellation of the optional plan shall be effective the	596
month after acceptance of the request by the trustees of the fund.	597
No payment or adjustment shall be made in the retirement allowance	598
payable throughout the member's life to compensate for the lesser	599
allowance the member received under the optional plan.	600

The request to cancel the optional plan shall be made on a	601
form provided by the fund and shall be valid only if the completed	602
form includes a signed statement of the designated beneficiary's	603
understanding of and consent to the cancellation. The signature	604
shall be verified by the trustees of the fund prior to their	605
acceptance of the cancellation.	606

(F) Any option elected and payments made under this section	607
shall be in addition to any benefit payable under divisions (D),	608
(E), and (F) of section 742.37 of the Revised Code.	609

(G) A person is eligible to receive a benefit increase under	610
this division if the person is receiving a retirement allowance or	611
benefit under an optional plan elected under this section or	612
section 742.3715 of the Revised Code based on an award made prior	613
to July 24, 1986. A person is not eligible to receive an increase	614
under this division if the person is receiving a pension or	615
benefit in accordance with rules in force on April 1, 1947, that	616
govern the granting of pensions and benefits and that provide an	617
increase in the original pension or benefit from time to time	618
pursuant to changes in the salaries of active members.	619

On or before the fifteenth day of April of each year, theThe	620
board shall determine the average percentage change in the	621
consumer price index prepared by the United States bureau of labor	622
statistics (U.S. city average for urban wage earners and clerical	623
workers: "all items 1982-84=100") for the twelve-month period	624
prior to the first day of January over the next preceding	625
twelve-calendar-month period, as reported by the bureau. On a	626
determination by the board that this change is an increase or that	627
the change plus the accumulation described in this division is an	628
increase, the board shallannually increase all benefits payable	629
under this section or section 742.3715 of the Revised Code to	630
eligible persons by the actuarial equivalent of an amount	631
determined by multiplying twelve thousandthree hundred sixty	632
dollars by the percentage of the increase in the consumer price	633
index, or that percentage plus the accumulation, except that the	634
percentage shall not exceed three per cent and no benefit shall	635
exceed the limit established by section 415 of the "Internal	636
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	637
amended.	638

Any percentage of change in the consumer price index in any	639
year that is in excess of three per cent shall be accumulated and	640
used to determine increases under this section in succeeding	641
years. Any percentage of change in the consumer price index	642
accumulated by an eligible person prior to September 27, 1996,	643
shall be used in determining any future increases under this	644
section. The first increase is payable to all eligible persons on	645
July 1, 1988. The increase is payable for the ensuing	646
twelve-month period or until the next increase is granted under	647
this section, whichever is later.	648

The date of the first increase payable under this section	649
shall be the anniversary date for future increases.	650

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

651

(1) "Eligible person" means a person who meets all of the	652
following conditions:	653

(a) Has been receiving a pension or benefit under this	654
chapter for one year or more based on an award made on or after	655
July 24, 1986;	656

(b) Has not made the election provided for in division (B)	657
of this section;	658

(c) Is not the spouse or survivor of a person who has made	659
the election provided for in division (B) of this section;	660

(d) Is receiving a benefit in accordance with division (A),	661
(B), or (C) of section 742.37, division (C)(2), (3), (4), or (5)	662
of former section 742.37, section 742.3711, or section 742.39 of	663
the Revised Code.	664

(2) "Recalculated average annual salary" means the highest	665
average annual compensation of a member of the Ohio police and	666
fire pension fund during any three years of contributions,	667
including amounts included in terminal pay attributable to such	668
three years, determined by dividing the member's total earnings as	669
an employee during such years by three.	670

(B)(1) Notwithstanding section 742.37 or 742.39 of the	671
Revised Code, a member of the fund who is not receiving a pension	672
or benefit under this chapter and who on January 1, 1989, has	673
completed fifteen or more years of active service in a police or	674
fire department may elect to have any future benefit or pension	675
paid to the member or the member's spouse or survivors under this	676
chapter calculated on the basis of the member's recalculated	677
average annual salary rather than the member's average annual	678
salary. The election shall be made by the member prior to or at	679
the time of making an election under section 742.3711 of the	680
Revised Code.	681

(2) If the member eligible to make the election under	682
division (B)(1) of this section dies prior to making the election	683
and at the time of death is eligible to retire and receive a	684
pension or benefit under division (C)(1) or (3) of section 742.37	685
of the Revised Code, the person entitled to receive a benefit	686
under section 742.3714 of the Revised Code may make the election	687
provided for in division (B)(1) of this section.	688

(3) The election under division (B)(1) or (2) of this	689
section shall be made on forms provided by the trustees of the	690
fund. Once received by the fund, the election shall be	691
irrevocable and shall bind the member and any other person who	692
receives a pension or benefit based on the member's service. No	693
person who receives a pension or benefit calculated in accordance	694
with division (B) of this section is eligible to receive a	695
cost-of-living allowance under this section. If the person making	696
the election receives a benefit under section 742.3714 of the	697
Revised Code, that person is not eligible to receive a	698
cost-of-living allowance under section 742.3711 of the Revised	699
Code.	700

(C)(1) On or before the fifteenth day of April of each year,	701
theThe board of trustees of the Ohio police and fire pension fund	702
shall determine the average percentage change in the consumer	703
price index prepared by the United States bureau of labor	704
statistics (U.S. City Average for Urban Wage Earners and Clerical	705
Workers: "All Items 1982-84=100") for the twelve-month period	706
prior to the first day of January over the next preceding	707
twelve-calendar-month period, as reported by the bureau. Upon a	708
determination by the board that such change is an increase or that	709
the change plus the accumulation described in division (C)(2) of	710
this section is an increase, the board shallannually increase all	711
benefits payable to eligible persons by a percentage equal to the	712
percentage increase in the consumer price index or to that	713
increase plus the accumulation, except that the increase shall not	714
exceed three per cent and,except that no benefit shall exceed the	715
limit established by section 415 of the "Internal Revenue Code of	716
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	717

(2) Any percentage of change in the consumer price index in	718
any year that is in excess of three per cent shall be accumulated	719
and used to determine increases under this section in succeeding	720
years. Any percentage of change in the consumer price index	721
accumulated by an eligible person prior to September 27, 1996,	722
shall be used in determining any future increases under this	723
section. The first additional benefitincrease is payable to all	724
eligible persons who on July 1, 1988, have been receiving a	725
pension or benefit for twelve months or longer. The additional	726
benefitincrease is payable for the ensuing twelve-month period or	727
until the next increase is granted under this section, whichever	728
is later.	729

The date of the first additional benefitincrease paid under	730
this section shall be the anniversary date for future additional	731
benefitsincreases. The pension or benefit used in the first	732
calculation of an additional benefitincrease under this section	733
shall remain as the base for all future additional benefits	734
increases paid under this section, unless a new base is	735
established by law.	736

(3) Additional benefits(2)Increases paid in years	737
subsequent to the year of the first additional benefitincrease	738
paid under this section shall be paid to all eligible persons who,	739
on the date that the additional benefitincrease is authorized by	740
the board, have been receiving a pension or benefit for twelve	741
months.	742

Sec. 742.3717.  (A)(1) Except as provided in division (A)(2)	743
of this section, as used in this section, "eligible person" means	744
a person who meets both of the following conditions:	745

(a) The person is receiving an annual pension or benefit	746
under division (A), (B), or (C) of section 742.37 or division	747
(C)(2), (3), (4), or (5) of former section 742.37 of the Revised	748
Code based on an award made prior to July 24, 1986.	749

(b) The person has not elected under section 742.3711 of the	750
Revised Code to receive a retirement allowance under an optional	751
benefit plan.	752

(2) A person is not an eligible person if the person is	753
receiving a pension or benefit in accordance with rules in force	754
on April 1, 1947, that govern the granting of pensions and	755
benefits and that provide an increase in the original pension or	756
benefit from time to time pursuant to changes in the salaries of	757
active members.	758

(B)(1) On or before the fifteenth day of April of each year,	759
theThe board of trustees of the Ohio police and fire pension fund	760
shall determine the average percentage change in the consumer	761
price index prepared by the United States bureau of labor	762
statistics (U.S. city average for urban wage earners and clerical	763
workers: "all items 1982-84=100") for the twelve-month period	764
prior to the first day of January over the next preceding	765
twelve-calendar-month period, as reported by the bureau. Upon a	766
determination by the board that this change is an increase or that	767
the change plus the accumulation described in division (B)(2) of	768
this section is an increase, the board shallannually increase all	769
benefits payable to eligible persons by an amount determined by	770
multiplying twelve thousandthree hundred sixty dollars by the	771
percentage of the increase in the consumer price index, or that	772
percentage plus the accumulation, except that the percentage shall	773
not exceed three per cent and no benefit shall exceed the limit	774
established by section 415 of the "Internal Revenue Code of 1986,"	775
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	776

(2) Any percentage of change in the consumer price index in	777
any year that is in excess of three per cent shall be accumulated	778
and used to determine increases under this section in succeeding	779
years. Any percentage of change in the consumer price index	780
accumulated by an eligible person prior to September 27, 1996,	781
shall be used in determining any future increases under this	782
section. The first increase is payable to all eligible persons on	783
July 1, 1988. The increase is payable for the ensuing	784
twelve-month period or until the next increase is granted under	785
this section, whichever is later.	786

The date of the first increase payable under this section	787
shall be the anniversary date for future increases.	788

Sec. 742.3718.  (A) Except as otherwise provided in this	789
division, each person who on September 9, 1988, is receiving a	790
pension or benefit of less than five thousand dollars annually	791
under division (A) or (B) of section 742.37 of the Revised Code on	792
the basis of disability or service of twenty-five years or more,	793
under division (C)(1) of that section, or under division (C)(2) or	794
(5) of former section 742.37 of the Revised Code shall have the	795
pension or benefit increased to five thousand dollars a year,	796
effective July 1, 1988. This division does not apply to any	797
person receiving a pension or benefit based on funded volunteer or	798
funded part-time service.	799

(B) On and after July 1, 1988:

800

(1) The pension of each person receiving a pension or	801
benefit under division (D) of section 742.37 of the Revised Code	802
shall be increased to four hundred ten dollars a month.	803

(2) The pension of each person receiving a pension or	804
benefit under division (E) of section 742.37 of the Revised Code	805
shall be increased to one hundred eighteen dollars a month.	806

(C) Notwithstanding any average annual salary limitation in	807
section 742.37 of the Revised Code, each person who on July 1,	808
1999, is receiving an annual pension or benefit described in	809
division (A), (B), or (C)(1) or (3) of that section of less than	810
six thousand six hundred dollars shall have the pension increased	811
to that amount, effective July 1, 1999. The increase granted	812
under this division shall be included in a person's base for the	813
purpose of determining future increases under section 742.3716 of	814
the Revised Code.	815

(D)(1) Except as provided in division (D)(2) of this	816
section, the monthly pension of each person who is the surviving	817
spouse of a deceased member of the fund and on the effective date	818
of this amendmentMarch17, 2000, is receiving a pension of less	819
than the amount described in division (D)(1) of section 742.37 of	820
the Revised Code shall be increased as follows:	821

(a) For the period beginning on the first day of the first	822
month following the effective date of this amendmentMarch17,	823
2000, and ending June 30, 2000, to five hundred fifty dollars;	824

(b) For the period beginning July 1, 2000, and the first day	825
of July of each year thereafter and continuing for the following	826
twelve months, to an amount equal to the greater of five hundred	827
fifty dollars or the monthly amount paid during the prior	828
twelve-month period plus an amount determined by multiplying five	829
hundred fiftysixteen dollars by the average percentage change in	830
the consumer price index, not exceeding three per cent, as	831
determined each year by the board of trustees of the Ohio police	832
and fire pension fund under section 742.3716 of the Revised Code	833
and fifty cents.	834

(2) An increase under division (D)(1) of this section shall	835
not be paid to a person who is receiving a pension under division	836
(D)(2) of section 742.37 of the Revised Code and a benefit under	837
division (B) or (D) of section 742.63 of the Revised Code until	838
the person ceases to be eligible for a benefit under division (B)	839
or (D) of section 742.63 of the Revised Code. The person's	840
monthly pension shall be increased, effective the first day of the	841
first month following the date on which the person ceases to be	842
eligible for the benefit, to the amount it would be under division	843
(D)(1) of this section had the person never been eligible for a	844
benefit under division (B) or (D) of section 742.63 of the Revised	845
Code.	846

(E) The monthly pension of each person receiving a pension	847
under division (E) of section 742.37 of the Revised Code shall be	848
increased to one hundred fifty dollars effective July 1, 1999.	849

(F) Effective July 1, 1999, the monthly pension of each	850
person receiving a pension under division (F) of section 742.37 of	851
the Revised Code shall be increased as follows:	852

(1) If there are two dependent parents, to one hundred	853
dollars;	854

(2) If there is one dependent parent, to two hundred	855
dollars.	856

Sec. 742.63.  The board of trustees of the Ohio police and	857
fire pension fund shall adopt rules for the management of the Ohio	858
public safety officers death benefit fund and for disbursements of	859
benefits as set forth in this section.	860

(A) As used in this section:

861

(1) "Member" means aall of the following:

862

(a) A member of the Ohio police and fire pension fund or a	863
member of or contributor to a police or firemen's relief and	864
pension fund established under former Chapter 521. or 741. of the	865
Revised Code;	866

(b) A member of the state highway patrol retirement system,	867
or a;	868

(c) A member of the public employees retirement system who at	869
the time of the member's death was aone of the following:	870

(i) A county sheriff or deputy sheriff, a;

871

(ii) A full-time regular police officer in a municipal	872
corporation or township, a;	873

(iii) A full-time regular firefighter employed by the state,	874
an instrumentality of the state, a municipal corporation, a	875
township, a joint fire district, or another political subdivision,	876
a;	877

(iv) A full-time park district ranger or patrol trooper, a;

878

(v) A full-time law enforcement officer of the department of	879
natural resources, a;	880

(vi) A full-time department of public safety enforcement	881
agent, a;	882

(vii) A full-time law enforcement officer of parks, waterway	883
lands, or reservoir lands under the control of a municipal	884
corporation, a;	885

(viii) A full-time law enforcement officer of a conservancy	886
district, a;	887

(ix) A correction officer at an institution under the control	888
of a county, a group of counties, a municipal corporation, or the	889
department of rehabilitation and correction, a;	890

(x) A state university law enforcement officer, or a.

891

(d) A member of a retirement system operated by a municipal	892
corporation who at the time of death was a full-time law	893
enforcement officer of parks, waterway lands, or reservoir lands	894
under the control of the municipal corporation.	895

(2) Notwithstanding section 742.01 of the Revised Code,	896
"fire or police department" includes a fire department of the	897
state or an instrumentality of the state or of a municipal	898
corporation, township, joint fire district, or other political	899
subdivision, the state highway patrol, a county sheriff's office,	900
the security force of an institution under the control of the	901
department of rehabilitation and correction, the security force of	902
a jail or workhouse under the control of a county, group of	903
counties, or municipal corporation, the security force of a	904
metropolitan, county, or township park district, the security	905
force of lands under the control of the department of natural	906
resources, department of public safety enforcement agents, the	907
security force of parks, waterway lands, or reservoir lands under	908
the control of a municipal corporation, the security force of a	909
conservancy district, the police department of a township or	910
municipal corporation, and the police force of a state university.	911

(3) "Firefighter or police officer" includes a state highway	912
patrol trooper, a county sheriff or deputy sheriff, a correction	913
officer at an institution under the control of a county, a group	914
of counties, a municipal corporation, or the department of	915
rehabilitation and correction, a police officer employed by a	916
township or municipal corporation, a firefighter employed by the	917
state, an instrumentality of the state, a municipal corporation, a	918
township, a joint fire district, or another political subdivision,	919
a full-time park district ranger or patrol trooper, a full-time	920
law enforcement officer of the department of natural resources, a	921
full-time department of public safety enforcement agent, a	922
full-time law enforcement officer of parks, waterway lands, or	923
reservoir lands under the control of a municipal corporation, a	924
full-time law enforcement officer of a conservancy district, and a	925
state university law enforcement officer.	926

(4) "Correction officer" includes, in addition to any	927
correction officer, any correction corporal, sergeant, lieutenant,	928
or captain, and the equivalents of all such persons.	929

(5) "A park district ranger or patrol trooper" means a peace	930
officer commissioned to make arrests, execute warrants, and	931
preserve the peace upon lands under the control of a board of park	932
commissioners of a metropolitan, county, or township park	933
district.	934

(6) "Metropolitan, county, or township park district" means a	935
park district created under the authority of Chapter 511. or 1545.	936
of the Revised Code.	937

(7) "Conservancy district" means a conservancy district	938
created under the authority of Chapter 6101. of the Revised Code.	939

(8) "Law enforcement officer" means an officer commissioned	940
to make arrests, execute warrants, and preserve the peace upon	941
lands under the control of the governmental entity granting the	942
commission.	943

(9) "Department of natural resources law enforcement officer"	944
includes a forest officer designated pursuant to section 1503.29	945
of the Revised Code, a preserve officer designated pursuant to	946
section 1517.10 of the Revised Code, a wildlife officer designated	947
pursuant to section 1531.13 of the Revised Code, a park officer	948
designated pursuant to section 1541.10 of the Revised Code, and a	949
state watercraft officer designated pursuant to section 1547.521	950
of the Revised Code.	951

(10) "Retirement eligibility date" means the last day of the	952
month in which a deceased member would have first become eligible,	953
had the member lived, for the retirement pension provided under	954
section 145.33, Chapter 521. or 741., division (C)(1) of section	955
742.37, or division (A)(1) of section 5505.17 of the Revised Code	956
or provided by a retirement system operated by a municipal	957
corporation.	958

(11) "Death benefit amount" means an amount equal to the full	959
monthly salary received by a deceased member prior to death, minus	960
an amount equal to the benefit received under section 145.45,	961
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	962
received from a retirement system operated by a municipal	963
corporation, plus any increases in salary that would have been	964
granted the deceased member.	965

(12) "Killed in the line of duty" means either of the	966
following:	967

(a) Death in the line of duty;

968

(b) Death from injury sustained in the line of duty,	969
including heart attack or other fatal injury or illness caused	970
while in the line of duty.	971

(B) A spouse of a deceased member shall receive a death	972
benefit each month equal to the full death benefit amount,	973
provided that the deceased member was a firefighter or police	974
officer killed in the line of duty and there are no surviving	975
children eligible for a benefit under this section. The spouse	976
shall receive this benefit during the spouse's natural life until	977
the deceased member's retirement eligibility date, on which date	978
the benefit provided under this division shall terminate.	979

(C)(1) If a member killed in the line of duty as a	980
firefighter or police officer is survived only by a child or	981
children, the child or children shall receive a benefit each month	982
equal to the full death benefit amount. If there is more than one	983
surviving child, the benefit shall be divided equally among these	984
children.	985

(2) If the death benefit paid under this division is divided	986
among two or more surviving children and any of the children	987
become ineligible to continue receiving a portion of the benefit	988
as provided in division (H) of this section, the full death	989
benefit amount shall be paid to the remaining eligible child or	990
divided among the eligible children so that the benefit paid to	991
the remaining eligible child or children equals the full death	992
benefit amount.	993

(3) Notwithstanding divisions (C)(1) and (2) of this	994
section, all death benefits paid under this division shall	995
terminate on the deceased member's retirement eligibility date.	996

(D) If a member killed in the line of duty as a firefighter	997
or police officer is survived by both a spouse and a child or	998
children, the monthly benefit provided shall be as follows:	999

(1)(a) If there is a surviving spouse and one surviving	1000
child, the spouse shall receive an amount each month equal to	1001
one-half of the full death benefit amount and the child shall	1002
receive an amount equal to one-half of the full death benefit	1003
amount.	1004

(b) If the surviving spouse dies or the child becomes	1005
ineligible as provided in division (H) of this section, the	1006
surviving spouse or child remaining eligible shall receive the	1007
full death benefit amount.	1008

(2)(a) If there is a surviving spouse and more than one	1009
child, the spouse shall receive an amount each month equal to	1010
one-third of the full death benefit amount and the children shall	1011
receive an amount, equally divided among them, equal to two-thirds	1012
of the full death benefit amount.	1013

(b) If a spouse and more than one child each are receiving a	1014
death benefit under division (D)(2)(a) of this section and the	1015
spouse dies, the children shall receive an amount each month,	1016
equally divided among them, equal to the full death benefit	1017
amount.	1018

(c) If a spouse and more than one child each are receiving a	1019
benefit under division (D)(2)(a) of this section and any of the	1020
children becomes ineligible to receive a benefit as provided in	1021
division (H) of this section, the spouse and remaining eligible	1022
child or children shall receive a death benefit as follows:	1023

(i) If there are two or more remaining eligible children,	1024
the spouse shall receive an amount each month equal to one-third	1025
of the full death benefit amount and the children shall receive an	1026
amount each month, equally divided among them, equal to two-thirds	1027
of the full death benefit amount;	1028

(ii) If there is one remaining eligible child, the spouse	1029
shall receive an amount each month equal to one-half of the full	1030
death benefit amount, and the child shall receive an amount each	1031
month equal to one-half of the full death benefit amount.	1032

(d) If a spouse and more than one child each are receiving a	1033
benefit under division (D)(2)(a) of this section and all of the	1034
children become ineligible to receive a benefit as provided in	1035
division (H) of this section, the spouse shall receive the full	1036
death benefit amount.	1037

(3) Notwithstanding divisions (D)(1) and (2) of this	1038
section, death benefits paid under this division to a surviving	1039
spouse shall terminate on the member's retirement eligibility	1040
date. Death benefits paid to a surviving child or children shall	1041
terminate on the deceased member's retirement eligibility date	1042
unless earlier terminated pursuant to division (H) of this	1043
section.	1044

(E) If a member, on or after January 1, 1980, is killed in	1045
the line of duty as a firefighter or police officer and is	1046
survived by only a parent or parents dependent upon the member for	1047
support, the parent or parents shall receive an amount each month	1048
equal to the full death benefit amount. If there is more than one	1049
surviving parent dependent upon the deceased member for support,	1050
the death benefit amount shall be divided equally among the	1051
surviving parents. On the death of one of the surviving parents,	1052
the full death benefit amount shall be paid to the other parent.	1053

(F)(1) The following shall receive a monthly death benefit	1054
under this division:	1055

(a) A surviving spouse whose benefits are terminated in	1056
accordance with division (B) or (D)(3) of this section on the	1057
deceased member's retirement eligibility date, or who would	1058
qualify for a benefit under division (B) or (D) of this section	1059
except that the deceased member reached the member's retirement	1060
eligibility date prior to the member's death, shall receive a	1061
monthly death benefit under this division. The;	1062

(b) A qualified surviving spouse of a deceased member of or	1063
contributor to a police or firemen's relief and pension fund	1064
established under former Chapter 521. or 741. of the Revised Code	1065
who was a firefighter or police officer killed in the line of	1066
duty.	1067

(2) The monthly death benefit shall be one-half of an amount	1068
equal to the monthly salary received by the deceased member prior	1069
to the member's death, plus any salary increases the deceased	1070
member would have received prior to the member's retirement	1071
eligibility date. The benefit shall terminate on the surviving	1072
spouse's death. A death benefit payable under this division shall	1073
be reduced by an amount equal to any allowance or benefit payable	1074
to the surviving spouse under section 742.3714 of the Revised	1075
Code.	1076

(3) A benefit granted to a surviving spouse under division	1077
(F)(1)(b) of this section shall commence on the first day of the	1078
month immediately following receipt by the board of a completed	1079
application on a form provided by the board and any evidence the	1080
board may require to establish that the deceased spouse was killed	1081
in the line of duty.	1082

(G)(1) If there is not a surviving spouse eligible to	1083
receive a death benefit under division (F) of this section or the	1084
surviving spouse receiving a death benefit under that division	1085
dies, a surviving child or children whose benefits under division	1086
(C) or (D) of this section are or have been terminated pursuant to	1087
division (C)(3) or (D)(3) of this section or who would qualify for	1088
a benefit under division (C) or (D) of this section except that	1089
the deceased member reached the member's retirement eligibility	1090
date prior to the member's death shall receive a monthly death	1091
benefit under this division. The monthly death benefit shall be	1092
one-half of an amount equal to the monthly salary received by the	1093
deceased member prior to the member's death, plus any salary	1094
increases the member would have received prior to the member's	1095
retirement eligibility date. If there is more than one surviving	1096
child, the benefit shall be divided equally among the surviving	1097
children.	1098

(2) If two or more surviving children each are receiving a	1099
benefit under this division and any of those children becomes	1100
ineligible to continue receiving a benefit as provided in division	1101
(H) of this section, the remaining eligible child or children	1102
shall receive an amount equal to one-half of the monthly salary	1103
received by the deceased member prior to death, plus any salary	1104
increases the deceased member would have received prior to the	1105
retirement eligibility date. If there is more than one remaining	1106
eligible child, the benefit shall be divided equally among the	1107
eligible children.	1108

(3) A death benefit, or portion of a death benefit, payable	1109
to a surviving child under this division shall be reduced by an	1110
amount equal to any allowance or benefit payable to that child	1111
under section 742.3714 of the Revised Code, but the reduction in	1112
that child's benefit shall not affect the amount payable to any	1113
other surviving child entitled to a portion of the death benefit.	1114

(H) A death benefit paid to a surviving child under division	1115
(C), (D), or (G) of this section shall terminate on the death of	1116
the child or, unless one of the following is the case, when the	1117
child reaches age eighteen:	1118

(1) The child, because of physical or mental disability, is	1119
unable to provide the child's own support, in which case the death	1120
benefit shall terminate when the disability is removed;	1121

(2) The child is unmarried, under age twenty-two, and a	1122
student in and attending an institution of learning or training	1123
pursuant to a program designed to complete in each school year the	1124
equivalent of at least two-thirds of the full-time curriculum	1125
requirements of the institution, as determined by the trustees of	1126
the fund.	1127

(I) Acceptance of any death benefit under this section does	1128
not prohibit a spouse or child from receiving other benefits	1129
provided under the Ohio police and fire pension fund, the state	1130
highway patrol retirement system, the public employees retirement	1131
system, or a retirement system operated by a municipal	1132
corporation.	1133

(J) No person shall receive a benefit under this section if	1134
any of the following occur:	1135

(1) The person fails to exercise the right to a monthly	1136
survivor benefit under division (A) or (B) of section 145.45,	1137
division (D), (E), or (F) of section 742.37, or division (A)(3),	1138
(4), or (7) of section 5505.17 of the Revised Code; to a monthly	1139
survivor benefit from a retirement system operated by a municipal	1140
corporation; or to a retirement allowance under section 742.3714	1141
of the Revised Code.	1142

(2) The member's accumulated contributions under this	1143
chapter or Chapter 145. or 5505. of the Revised Code are refunded	1144
unless the member had been a member of the public employees	1145
retirement system and had fewer than eighteen months of total	1146
service credit at the time of death.	1147

(3) In the case of a full-time park district ranger or	1148
patrol trooper, a full-time law enforcement officer of the	1149
department of natural resources, a full-time law enforcement	1150
officer of parks, waterway lands, or reservoir lands under the	1151
control of a municipal corporation, a full-time law enforcement	1152
officer of a conservancy district, a correction officer at an	1153
institution under the control of a county, group of counties, or	1154
municipal corporation, or a member of a retirement system operated	1155
by a municipal corporation who at the time of the member's death	1156
was a full-time law enforcement officer of parks, waterway lands,	1157
or reservoir lands under the control of the municipal corporation,	1158
the member died prior to April 9, 1981, in the case of a benefit	1159
under division (B), (C), or (D) of this section, or prior to	1160
January 1, 1980, in the case of a benefit under division (E) of	1161
this section.	1162

(4) In the case of a full-time department of public safety	1163
enforcement agent who prior to June 30, 1999, was a liquor control	1164
investigator of the department of public safety, the member died	1165
prior to December 23, 1986;	1166

(5) In the case of a full-time department of public safety	1167
enforcement agent other than an enforcement agent who, prior to	1168
June 30, 1999, was a liquor control investigator, the member died	1169
prior to June 30, 1999.	1170

(K) A surviving spouse whose benefit was terminated prior to	1171
the effective date of this amendmentJune30, 1999, due to	1172
remarriage shall receive a benefit under division (B), (D), or (F)	1173
of this section beginning on the first day of the month following	1174
receipt by the board of an application on a form provided by the	1175
board. The benefit amount shall be determined as of that date.	1176

(1) If the benefit will begin prior to the deceased member's	1177
retirement eligibility date, it shall be paid under division (B)	1178
or (D) of this section and shall terminate as provided in those	1179
divisions. A benefit paid to a surviving spouse under division	1180
(D) of this section shall be determined in accordance with that	1181
division, even if benefits paid to surviving children are reduced	1182
as a result.	1183

(2) If the benefit will begin on or after the deceased	1184
member's retirement eligibility date, it shall be paid under	1185
division (F) of this section and shall terminate as provided in	1186
that division. A benefit paid to a surviving spouse under	1187
division (F) of this section shall be determined in accordance	1188
with that division, even if benefits paid to surviving children	1189
are terminated as a result.	1190

Sec. 3307.67.  (A) Beginning April 1, 1971, and each year	1191
thereafter, theThe state teachers retirement board shall	1192
determine the average percentage change in the consumer price	1193
index prepared by the United States bureau of labor statistics	1194
(U.S. City Average for Urban Wage Earners and Clerical Workers:	1195
"All Items 1982-84=100") for the twelve-calendar-month period	1196
prior to the first day of January over the next preceding	1197
twelve-calendar-month period, as reported by the bureau.	1198

Upon a determination by the board in any year that the change	1199
in the consumer price index is an increase or that the change plus	1200
the accumulation described in division (B) of this section is an	1201
increase, the board shall annually increase each allowance or	1202
benefit payable under sections 3307.50 to 3307.79 of the Revised	1203
Code by a percentage equal to the percentage increase in the	1204
consumer price index or to that increase plus the accumulation,	1205
except that the increase shall not exceed three per cent and,	1206
except that no allowance or benefit shall exceed the limit	1207
established by section 415 of the "Internal Revenue Code of 1986,"	1208
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	1209

The first increase is payable to all persons becoming	1210
eligible after June 30, 1971, upon such persons receiving an	1211
allowance or benefit for twelve months. The increased amount is	1212
payable for the ensuing twelve-month period or until the next	1213
increase is granted under this section, whichever is later.	1214
Subsequent increases shall be determined from the date of the	1215
first increase paid to the former member in the case of an	1216
allowance being paid a beneficiary under an option, or from the	1217
date of the first increase to the survivor first receiving an	1218
allowance or benefit in the case of an allowance or benefit being	1219
paid to the subsequent survivors of the former member.	1220

The date of the first increase under this section becomes the	1221
anniversary date for any future increases.	1222

The allowance or benefit used in the first calculation of an	1223
increase under this section shall remain as the base for all	1224
future increases, unless a new base is established.	1225

(B) Any percentage of change in the consumer price index in	1226
any year that is in excess of three per cent shall be accumulated	1227
and used to determine increases under this section in subsequent	1228
years. Any percentage of change in the consumer price index	1229
accumulated by an eligible person prior to September 27, 1996,	1230
shall be used in determining any future increases under this	1231
section.	1232

(C) The board shall make all rules necessary to carry out	1233
this section.	1234

Sec. 3309.374.  (A) Beginning April 1, 1971, and each year	1235
thereafter, the board of theThe school employees retirement	1236
system shall determine the average percentage change in the	1237
consumer price index prepared by the United States bureau of labor	1238
statistics (U.S. City Average for Urban Wage Earners and Clerical	1239
Workers: "All Items 1982-84=100") for the twelve-calendar-month	1240
period prior to the first day of January over the next preceding	1241
twelve-calendar-month period, as reported by the bureau.	1242

Upon a determination by the board in any year that the change	1243
in the consumer price index is an increase or that the change plus	1244
the accumulation described in division (B) of this section is an	1245
increase, the board shall annually increase each allowance,	1246
pension, or benefit payable under this chapter by a percentage	1247
equal to the percentage increase in the consumer price index or to	1248
that increase plus the accumulation, except that the increase	1249
shall not exceed three per cent and, except that no allowance,	1250
pension, or benefit shall exceed the limit established by section	1251
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1252
U.S.C.A. 415, as amended.	1253

The first increase is payable to all persons becoming	1254
eligible after June 30, 1971, upon such persons receiving an	1255
allowance, pension, or benefit for twelve months.	1256

The increased amount is payable for the ensuing twelve-month	1257
period or until the next increase is granted under this section,	1258
whichever is later. Subsequent increases shall be determined from	1259
the date of the first increase paid to the former member in the	1260
case of an allowance being paid a beneficiary under an option, or	1261
from the date of the first increase to the survivor first	1262
receiving an allowance or benefit in the case of an allowance or	1263
benefit being paid to the subsequent survivors of the former	1264
member.	1265

The date of the first increase under this section becomes the	1266
anniversary date for any future increases.	1267

The allowance or benefit used in the first calculation of an	1268
increase under this section shall remain as the base for all	1269
future increases, unless a new base is established. Any increase	1270
resulting from payment of a recalculated benefit under Section 3	1271
of Substitute Senate Bill No. 270 of the 123rd general assembly	1272
shall be included in the calculation of future increases under	1273
this section.	1274

(B) Any percentage of change in the consumer price index in	1275
any year that is in excess of three per cent shall be accumulated	1276
and used to determine increases under this section in subsequent	1277
years. Any percentage of change in the consumer price index	1278
accumulated by an eligible person prior to September 27, 1996,	1279
shall be used in determining any future increases under this	1280
section.	1281

(C) The board shall make all rules necessary to carry out	1282
this section.	1283

Sec. 5505.174.  (A) The following persons are eligible to	1284
receive an additional benefitincrease under this section:	1285

(1) Persons fifty-three years old or older who have been	1286
receiving pensions pursuant to division (B) of section 5505.16,	1287
division (A)(1) of section 5505.17, or division (B) of section	1288
5505.18 of the Revised Code for not less than twelve months;	1289

(2) Persons who have been receiving pensions pursuant to	1290
division (B) of section 5505.18 of the Revised Code for not less	1291
than sixty months regardless of age;	1292

(3) Persons who have been receiving pensions pursuant to	1293
section 5505.162 or division (A)(3), (4), (5), (6), or (7) of	1294
section 5505.17 of the Revised Code for not less than twelve	1295
months regardless of age.	1296

(B) On the fifteenth day of September of each year, theThe	1297
state highway patrol retirement board shall determine the average	1298
percentage change in the consumer price index prepared by the	1299
United States bureau of labor statistics (U.S. City Average for	1300
Urban Wage Earners and Clerical Workers: "All Items 1982-84=100")	1301
for the twelve-month period prior to the first day of January over	1302
the next preceding twelve-calendar-month period, as reported by	1303
the bureau. Upon a determination by the board that the change is	1304
an increase or that the change plus the accumulation described in	1305
division (C) of this section is an increase, the board shall	1306
annually increase each benefit payable under this chapter by a	1307
percentage equal to the percentage increase in the consumer price	1308
index or to that increase plus the accumulation, except that the	1309
increase shall not exceed three per cent and,except that no	1310
benefit shall exceed the limit established by section 415 of the	1311
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	1312
as amended.	1313

For each person eligible to receive the additional benefit	1314
under this section, the accumulation shall commence on the later	1315
of May 6, 1988, or the effective date of the pension the person	1316
receives.	1317

The first additional benefitincrease is payable to all	1318
persons becoming eligible on or after November 18, 1981. The	1319
additional benefitincrease is payable for each ensuing	1320
twelve-month period or until the next increase is granted under	1321
this section, whichever is later.	1322

The date of the first additional benefitincrease paid under	1323
this section shall be the anniversary date for future additional	1324
benefitsincreases. The pension used in the first calculation of	1325
an additional benefitincrease under this section shall remain as	1326
the base for all future additional benefitsincreases paid under	1327
this section, unless a new base is established.	1328

Additional benefitsIncreases paid in years subsequent to the	1329
year of the first additional benefitincrease paid under this	1330
section shall be paid to all persons who, on the date that the	1331
additional benefitincrease is authorized by the board, are	1332
eligible for the benefit as provided in this section.	1333

(C) Any percentage of change in the consumer price index in	1334
any year that is in excess of three per cent shall be accumulated	1335
and used to determine increases under this section in subsequent	1336
years. Any percentage of change in the consumer price index	1337
accumulated by an eligible person prior to the effective date of	1338
this amendment shall be used in determining any future increases	1339
under this section.	1340

(D) The board shall adopt, and may amend or rescind, any	1341
rule necessary to carry out this section.	1342

The board shall adopt, and may amend or rescind, any rule	1343
necessary to carry out this section.	1344

Section 2.  That existing sections 145.297, 145.323, 742.37,	1345
742.3711, 742.3716, 742.3717, 742.3718, 742.63, 3307.67, 3309.374,	1346
and 5505.174 and section 742.3720 of the Revised Code are hereby	1347
repealed.	1348

Section 3.  Section 742.63 of the Revised Code is presented	1349
in this act as a composite of the section as amended by both Sub.	1350
H.B. 222 and Am. Sub. H.B. 283 of the 123rd General Assembly. The	1351
General Assembly, applying the principle stated in division (B) of	1352
section 1.52 of the Revised Code that amendments are to be	1353
harmonized if reasonably capable of simultaneous operation, finds	1354
that the composite is the resulting version of the section in	1355
effect prior to the effective date of the section as presented in	1356
this act.	1357