As Introduced

124th General Assembly
Regular Session
2001-2002
H. B. No. 158


REPRESENTATIVE Schuring



A BILL
To amend sections 145.01, 145.321, 145.33, 145.35,1
145.49, and 3309.312 of the Revised Code to permit2
Public Employees Retirement System (PERS) members3
with at least 25 years of law enforcement service4
credit to retire with full benefits at age 48, to5
include transit and highway patrol police officers6
as law enforcement officers for PERS purposes, and7
to increase the employee contribution rate for law8
enforcement service credit.9


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

       Section 1.  That sections 145.01, 145.321, 145.33, 145.35,10
145.49, and 3309.312 of the Revised Code be amended to read as11
follows:12

       Sec. 145.01.  As used in this chapter:13

       (A) "Public employee" means:14

       (1) Any person holding an office, not elective, under the15
state or any county, township, municipal corporation, park16
district, conservancy district, sanitary district, health17
district, metropolitan housing authority, state retirement board,18
Ohio historical society, public library, county law library, union19
cemetery, joint hospital, institutional commissary, state20
university, or board, bureau, commission, council, committee,21
authority, or administrative body as the same are, or have been,22
created by action of the general assembly or by the legislative23
authority of any of the units of local government named in24
division (A)(1) of this section, or employed and paid in whole or25
in part by the state or any of the authorities named in division26
(A)(1) of this section in any capacity not covered by section27
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.28

       (2) A person who is a member of the public employees29
retirement system and who continues to perform the same or similar30
duties under the direction of a contractor who has contracted to31
take over what before the date of the contract was a publicly32
operated function. The governmental unit with which the contract33
has been made shall be deemed the employer for the purposes of34
administering this chapter.35

       (3) Any person who is an employee of a public employer,36
notwithstanding that the person's compensation for that employment37
is derived from funds of a person or entity other than the38
employer. Credit for such service shall be included as total39
service credit, provided that the employee makes the payments40
required by this chapter, and the employer makes the payments41
required by sections 145.48 and 145.51 of the Revised Code.42

       (4) A person who elects in accordance with section 145.01543
of the Revised Code to remain a contributing member of the public44
employees retirement system.45

       In all cases of doubt, the public employees retirement board46
shall determine whether any person is a public employee, and its47
decision is final.48

       (B) "Member" means any public employee, other than a public49
employee excluded or exempted from membership in the retirement50
system by section 145.03, 145.031, 145.032, 145.033, 145.034,51
145.035, or 145.38 of the Revised Code. "Member" includes a PERS52
retirant who becomes a member under division (C) of section 145.3853
of the Revised Code. "Member" also includes a disability benefit54
recipient.55

       (C) "Head of the department" means the elective or appointive56
head of the several executive, judicial, and administrative57
departments, institutions, boards, and commissions of the state58
and local government as the same are created and defined by the59
laws of this state or, in case of a charter government, by that60
charter.61

       (D) "Employer" or "public employer" means the state or any62
county, township, municipal corporation, park district,63
conservancy district, sanitary district, health district,64
metropolitan housing authority, state retirement board, Ohio65
historical society, public library, county law library, union66
cemetery, joint hospital, institutional commissary, state medical67
college, state university, or board, bureau, commission, council,68
committee, authority, or administrative body as the same are, or69
have been, created by action of the general assembly or by the70
legislative authority of any of the units of local government71
named in this division not covered by section 742.01, 3307.01,72
3309.01, or 5505.01 of the Revised Code. In addition, "employer"73
means the employer of any public employee.74

       (E) "Prior service" means all service as a public employee75
rendered before January 1, 1935, and all service as an employee of76
any employer who comes within the state teachers retirement system77
or of the school employees retirement system or of any other78
retirement system established under the laws of this state79
rendered prior to January 1, 1935, provided that if the employee80
claiming the service was employed in any capacity covered by that81
other system after that other system was established, credit for82
the service may be allowed by the public employees retirement83
system only when the employee has made payment, to be computed on84
the salary earned from the date of appointment to the date85
membership was established in the public employees retirement86
system, at the rate in effect at the time of payment, and the87
employer has made payment of the corresponding full liability as88
provided by section 145.44 of the Revised Code. "Prior service"89
also means all service credited for active duty with the armed90
forces of the United States as provided in section 145.30 of the91
Revised Code.92

       If an employee who has been granted prior service credit by93
the public employees retirement system for service rendered prior94
to January 1, 1935, as an employee of a board of education95
establishes, before retirement, one year or more of contributing96
service in the state teachers retirement system or school97
employees retirement system, then the prior service ceases to be98
the liability of this system.99

       If the board determines that a position of any member in any100
calendar year prior to January 1, 1935, was a part-time position,101
the board shall determine what fractional part of a year's credit102
shall be allowed by the following formula:103

       (1) When the member has been either elected or appointed to104
an office the term of which was two or more years and for which an105
annual salary is established, the fractional part of the year's106
credit shall be computed as follows:107

       First, when the member's annual salary is one thousand108
dollars or less, the service credit for each such calendar year109
shall be forty per cent of a year.110

       Second, for each full one hundred dollars of annual salary111
above one thousand dollars, the member's service credit for each112
such calendar year shall be increased by two and one-half per113
cent.114

       (2) When the member is paid on a per diem basis, the service115
credit for any single year of the service shall be determined by116
using the number of days of service for which the compensation was117
received in any such year as a numerator and using two hundred118
fifty days as a denominator.119

       (3) When the member is paid on an hourly basis, the service120
credit for any single year of the service shall be determined by121
using the number of hours of service for which the compensation122
was received in any such year as a numerator and using two123
thousand hours as a denominator.124

       (F) "Contributor" means any person who has an account in the125
employees' savings fund created by section 145.23 of the Revised126
Code. When used in the sections listed in division (B) of section127
145.82 of the Revised Code, "contributor" includes any person128
participating in a plan established under section 145.81 of the129
Revised Code.130

       (G) "Beneficiary" or "beneficiaries" means the estate or a131
person or persons who, as the result of the death of a member,132
contributor, or retirant, qualify for or are receiving some right133
or benefit under this chapter.134

       (H)(1) "Total service credit," except as provided in section135
145.37 of the Revised Code, means all service credited to a member136
of the retirement system since last becoming a member, including137
restored service credit as provided by section 145.31 of the138
Revised Code; credit purchased under sections 145.293 and 145.299139
of the Revised Code; all the member's prior service credit; all140
the member's military service credit computed as provided in this141
chapter; all service credit established pursuant to section142
145.297 of the Revised Code; and any other service credited under143
this chapter. In addition, "total service credit" includes any144
period, not in excess of three years, during which a member was145
out of service and receiving benefits under Chapters 4121. and146
4123. of the Revised Code. For the exclusive purpose of147
satisfying the service credit requirement and of determining148
eligibility for benefits under sections 145.32, 145.33, 145.331,149
145.35, 145.36, and 145.361 of the Revised Code, "five or more150
years of total service credit" means sixty or more calendar months151
of contributing service in this system.152

       (2) "One and one-half years of contributing service credit,"153
as used in division (B) of section 145.45 of the Revised Code,154
also means eighteen or more calendar months of employment by a155
municipal corporation that formerly operated its own retirement156
plan for its employees or a part of its employees, provided that157
all employees of that municipal retirement plan who have eighteen158
or more months of such employment, upon establishing membership in159
the public employees retirement system, shall make a payment of160
the contributions they would have paid had they been members of161
this system for the eighteen months of employment preceding the162
date membership was established. When that payment has been made163
by all such employee members, a corresponding payment shall be164
paid into the employers' accumulation fund by that municipal165
corporation as the employer of the employees.166

       (3) Where a member also is a member of the state teachers167
retirement system or the school employees retirement system, or168
both, except in cases of retirement on a combined basis pursuant169
to section 145.37 of the Revised Code or as provided in section170
145.383 of the Revised Code, service credit for any period shall171
be credited on the basis of the ratio that contributions to the172
public employees retirement system bear to total contributions in173
all state retirement systems.174

       (4) Not more than one year of credit may be given for any175
period of twelve months.176

       (5) "Ohio service credit" means credit for service that was177
rendered to the state or any of its political subdivisions or any178
employer.179

       (I) "Regular interest" means interest at any rates for the180
respective funds and accounts as the public employees retirement181
board may determine from time to time.182

       (J) "Accumulated contributions" means the sum of all amounts183
credited to a contributor's individual account in the employees'184
savings fund together with any interest credited to the185
contributor's account under section 145.471 or 145.472 of the186
Revised Code.187

       (K)(1) "Final average salary" means the quotient obtained by188
dividing by three the sum of the three full calendar years of189
contributing service in which the member's earnable salary was190
highest, except that if the member has a partial year of191
contributing service in the year the member's employment192
terminates and the member's earnable salary for the partial year193
is higher than for any comparable period in the three years, the194
member's earnable salary for the partial year shall be substituted195
for the member's earnable salary for the comparable period during196
the three years in which the member's earnable salary was lowest.197

       (2) If a member has less than three years of contributing198
service, the member's final average salary shall be the member's199
total earnable salary divided by the total number of years,200
including any fraction of a year, of the member's contributing201
service.202

       (3) For the purpose of calculating benefits payable to a203
member qualifying for service credit under division (Z) of this204
section, "final average salary" means the total earnable salary on205
which contributions were made divided by the total number of years206
during which contributions were made, including any fraction of a207
year. If contributions were made for less than twelve months,208
"final average salary" means the member's total earnable salary.209

       (L) "Annuity" means payments for life derived from210
contributions made by a contributor and paid from the annuity and211
pension reserve fund as provided in this chapter. All annuities212
shall be paid in twelve equal monthly installments.213

       (M) "Annuity reserve" means the present value, computed upon214
the basis of the mortality and other tables adopted by the board,215
of all payments to be made on account of any annuity, or benefit216
in lieu of any annuity, granted to a retirant as provided in this217
chapter.218

       (N)(1) "Disability retirement" means retirement as provided219
in section 145.36 of the Revised Code.220

       (2) "Disability allowance" means an allowance paid on account221
of disability under section 145.361 of the Revised Code.222

       (3) "Disability benefit" means a benefit paid as disability223
retirement under section 145.36 of the Revised Code, as a224
disability allowance under section 145.361 of the Revised Code, or225
as a disability benefit under section 145.37 of the Revised Code.226

       (4) "Disability benefit recipient" means a member who is227
receiving a disability benefit.228

       (O) "Age and service retirement" means retirement as provided229
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of230
the Revised Code.231

       (P) "Pensions" means annual payments for life derived from232
contributions made by the employer that at the time of retirement233
are credited into the annuity and pension reserve fund from the234
employers' accumulation fund and paid from the annuity and pension235
reserve fund as provided in this chapter. All pensions shall be236
paid in twelve equal monthly installments.237

       (Q) "Retirement allowance" means the pension plus that238
portion of the benefit derived from contributions made by the239
member.240

       (R)(1) Except as otherwise provided in division (R) of this241
section, "earnable salary" means all salary, wages, and other242
earnings paid to a contributor by reason of employment in a243
position covered by the retirement system. The salary, wages, and244
other earnings shall be determined prior to determination of the245
amount required to be contributed to the employees' savings fund246
under section 145.47 of the Revised Code and without regard to247
whether any of the salary, wages, or other earnings are treated as248
deferred income for federal income tax purposes. "Earnable salary"249
includes the following:250

       (a) Payments made by the employer in lieu of salary, wages,251
or other earnings for sick leave, personal leave, or vacation used252
by the contributor;253

       (b) Payments made by the employer for the conversion of sick254
leave, personal leave, and vacation leave accrued, but not used if255
the payment is made during the year in which the leave is accrued,256
except that payments made pursuant to section 124.383 or 124.386257
of the Revised Code are not earnable salary;258

       (c) Allowances paid by the employer for full maintenance,259
consisting of housing, laundry, and meals, as certified to the260
retirement board by the employer or the head of the department261
that employs the contributor;262

       (d) Fees and commissions paid under section 507.09 of the263
Revised Code;264

       (e) Payments that are made under a disability leave program265
sponsored by the employer and for which the employer is required266
by section 145.296 of the Revised Code to make periodic employer267
and employee contributions;268

       (f) Amounts included pursuant to divisions (K)(3) and (Y) of269
this section.270

       (2) "Earnable salary" does not include any of the following:271

       (a) Fees and commissions, other than those paid under272
section 507.09 of the Revised Code, paid as sole compensation for273
personal services and fees and commissions for special services274
over and above services for which the contributor receives a275
salary;276

       (b) Amounts paid by the employer to provide life insurance,277
sickness, accident, endowment, health, medical, hospital, dental,278
or surgical coverage, or other insurance for the contributor or279
the contributor's family, or amounts paid by the employer to the280
contributor in lieu of providing the insurance;281

       (c) Incidental benefits, including lodging, food, laundry,282
parking, or services furnished by the employer, or use of the283
employer's property or equipment, or amounts paid by the employer284
to the contributor in lieu of providing the incidental benefits;285

       (d) Reimbursement for job-related expenses authorized by the286
employer, including moving and travel expenses and expenses287
related to professional development;288

       (e) Payments for accrued but unused sick leave, personal289
leave, or vacation that are made at any time other than in the290
year in which the sick leave, personal leave, or vacation was291
accrued;292

       (f) Payments made to or on behalf of a contributor that are293
in excess of the annual compensation that may be taken into294
account by the retirement system under division (a)(17) of section295
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26296
U.S.C.A. 401(a)(17), as amended;297

       (g) Payments made under division (B) or (D) of section298
5923.05 of the Revised Code or Section 4 of Substitute Senate Bill299
No. 3 of the 119th general assembly;300

       (h) Anything of value received by the contributor that is301
based on or attributable to retirement or an agreement to retire,302
except that payments made on or before January 1, 1989, that are303
based on or attributable to an agreement to retire shall be304
included in earnable salary if both of the following apply:305

       (i) The payments are made in accordance with contract306
provisions that were in effect prior to January 1, 1986;307

       (ii) The employer pays the retirement system an amount308
specified by the retirement board equal to the additional309
liability resulting from the payments.310

       (3) The retirement board shall determine by rule whether any311
compensation not enumerated in division (R) of this section is312
earnable salary, and its decision shall be final.313

       (S) "Pension reserve" means the present value, computed upon314
the basis of the mortality and other tables adopted by the board,315
of all payments to be made on account of any retirement allowance316
or benefit in lieu of any retirement allowance, granted to a317
member or beneficiary under this chapter.318

       (T)(1) "Contributing service" means all service credited to a319
member of the system since January 1, 1935, for which320
contributions are made as required by sections 145.47, 145.48, and321
145.483 of the Revised Code. In any year subsequent to 1934,322
credit for any service shall be allowed by the following formula:323

       (a) For each month for which the member's earnable salary is324
two hundred fifty dollars or more, allow one month's credit.325

       (b) For each month for which the member's earnable salary is326
less than two hundred fifty dollars, allow a fraction of a month's327
credit. The numerator of this fraction shall be the earnable328
salary during the month, and the denominator shall be two hundred329
fifty dollars, except that if the member's annual earnable salary330
is less than six hundred dollars, the member's credit shall not be331
reduced below twenty per cent of a year for a calendar year of332
employment during which the member worked each month. Division333
(T)(1)(b) of this section shall not reduce any credit earned334
before January 1, 1985.335

       (2) Notwithstanding division (T)(1) of this section, an336
elected official who prior to January 1, 1980, was granted a full337
year of credit for each year of service as an elected official338
shall be considered to have earned a full year of credit for each339
year of service regardless of whether the service was full-time340
full time or part-timepart time. The public employees retirement341
board has no authority to reduce the credit.342

       (U) "State retirement board" means the public employees343
retirement board, the school employees retirement board, or the344
state teachers retirement board.345

       (V) "Retirant" means any former member who retires and is346
receiving a monthly allowance as provided in sections 145.32,347
145.33, 145.331, 145.34, and 145.46 of the Revised Code.348

       (W) "Employer contribution" means the amount paid by an349
employer as determined under section 145.48 of the Revised Code.350

       (X) "Public service terminates" means the last day for which351
a public employee is compensated for services performed for an352
employer or the date of the employee's death, whichever occurs353
first.354

       (Y) When a member has been elected or appointed to an355
office, the term of which is two or more years, for which an356
annual salary is established, and in the event that the salary of357
the office is increased and the member is denied the additional358
salary by reason of any constitutional provision prohibiting an359
increase in salary during a term of office, the member may elect360
to have the amount of the member's contributions calculated upon361
the basis of the increased salary for the office. At the member's362
request, the board shall compute the total additional amount the363
member would have contributed, or the amount by which each of the364
member's contributions would have increased, had the member365
received the increased salary for the office the member holds. If366
the member elects to have the amount by which the member's367
contribution would have increased withheld from the member's368
salary, the member shall notify the employer, and the employer369
shall make the withholding and transmit it to the retirement370
system. A member who has not elected to have that amount withheld371
may elect at any time to make a payment to the retirement system372
equal to the additional amount the member's contribution would373
have increased, plus interest on that contribution, compounded374
annually at a rate established by the board and computed from the375
date on which the last contribution would have been withheld from376
the member's salary to the date of payment. A member may make a377
payment for part of the period for which the increased378
contribution was not withheld, in which case the interest shall be379
computed from the date the last contribution would have been380
withheld for the period for which the payment is made. Upon the381
payment of the increased contributions as provided in this382
division, the increased annual salary as provided by law for the383
office for the period for which the member paid increased384
contributions thereon shall be used in determining the member's385
earnable salary for the purpose of computing the member's final386
average salary.387

       (Z) "Five years of service credit," for the exclusive purpose388
of satisfying the service credit requirements and of determining389
eligibility for benefits under section 145.33 of the Revised Code,390
means employment covered under this chapter or under a former391
retirement plan operated, recognized, or endorsed by the employer392
prior to coverage under this chapter or under a combination of the393
coverage.394

       (AA) "Deputy sheriff" means any person who is commissioned395
and employed as a full-time peace officer by the sheriff of any396
county, and has been so employed since on or before December 31,397
1965, and whose primary duties are to preserve the peace, to398
protect life and property, and to enforce the laws of this state;399
any person who is or has been commissioned and employed as a peace400
officer by the sheriff of any county since January 1, 1966, and401
who has received a certificate attesting to the person's402
satisfactory completion of the peace officer training school as403
required by section 109.77 of the Revised Code and whose primary404
duties are to preserve the peace, protect life and property, and405
enforce the laws of this state; or any person deputized by the406
sheriff of any county and employed pursuant to section 2301.12 of407
the Revised Code as a criminal bailiff or court constable who has408
received a certificate attesting to the person's satisfactory409
completion of the peace officer training school as required by410
section 109.77 of the Revised Code and whose primary duties are to411
preserve the peace, protect life and property, and enforce the412
laws of this state.413

       (BB) "Township constable or police officer in a township414
police department or district" means any person who is415
commissioned and employed as a full-time peace officer pursuant to416
Chapter 505. or 509. of the Revised Code, who has received a417
certificate attesting to the person's satisfactory completion of418
the peace officer training school as required by section 109.77 of419
the Revised Code, and whose primary duties are to preserve the420
peace, protect life and property, and enforce the laws of this421
state.422

       (CC) "Drug agent" means any person who is either of the423
following:424

       (1) Employed full-timefull time as a narcotics agent by a425
county narcotics agency created pursuant to section 307.15 of the426
Revised Code and has received a certificate attesting to the427
satisfactory completion of the peace officer training school as428
required by section 109.77 of the Revised Code;429

       (2) Employed full-timefull time as an undercover drug agent430
as defined in section 109.79 of the Revised Code and is in431
compliance with section 109.77 of the Revised Code.432

       (DD) "Department of public safety enforcement agent" means a433
full-time employee of the department of public safety who is434
designated under section 5502.14 of the Revised Code as an435
enforcement agent and who is in compliance with section 109.77 of436
the Revised Code.437

       (EE) "Natural resources law enforcement staff officer" means438
a full-time employee of the department of natural resources who is439
designated a natural resources law enforcement staff officer under440
section 1501.013 of the Revised Code and is in compliance with441
section 109.77 of the Revised Code.442

       (FF) "Park officer" means a full-time employee of the443
department of natural resources who is designated a park officer444
under section 1541.10 of the Revised Code and is in compliance445
with section 109.77 of the Revised Code.446

       (GG) "Forest officer" means a full-time employee of the447
department of natural resources who is designated a forest officer448
under section 1503.29 of the Revised Code and is in compliance449
with section 109.77 of the Revised Code.450

       (HH) "Preserve officer" means a full-time employee of the451
department of natural resources who is designated a preserve452
officer under section 1517.10 of the Revised Code and is in453
compliance with section 109.77 of the Revised Code.454

       (II) "Wildlife officer" means a full-time employee of the455
department of natural resources who is designated a wildlife456
officer under section 1531.13 of the Revised Code and is in457
compliance with section 109.77 of the Revised Code.458

       (JJ) "State watercraft officer" means a full-time employee of459
the department of natural resources who is designated a state460
watercraft officer under section 1547.521 of the Revised Code and461
is in compliance with section 109.77 of the Revised Code.462

       (KK) "Park district police officer" means a full-time463
employee of a park district who is designated pursuant to section464
511.232 or 1545.13 of the Revised Code and is in compliance with465
section 109.77 of the Revised Code.466

       (LL) "Conservancy district officer" means a full-time467
employee of a conservancy district who is designated pursuant to468
section 6101.75 of the Revised Code and is in compliance with469
section 109.77 of the Revised Code.470

       (MM) "Municipal police officer" means a member of the471
organized police department of a municipal corporation who is472
employed full-timefull time, is in compliance with section 109.77473
of the Revised Code, and is not a member of the Ohio police and474
fire pension fund.475

       (NN) "Ohio veterans' home police officer" means any person476
who is employed at the Ohio veterans' home as a police officer477
pursuant to section 5907.02 of the Revised Code and is in478
compliance with section 109.77 of the Revised Code.479

       (OO) "Special police officer for a mental health institution"480
means any person who is designated as such pursuant to section481
5119.14 of the Revised Code and is in compliance with section482
109.77 of the Revised Code.483

       (PP) "Special police officer for an institution for the484
mentally retarded and developmentally disabled" means any person485
who is designated as such pursuant to section 5123.13 of the486
Revised Code and is in compliance with section 109.77 of the487
Revised Code.488

       (QQ) "State university law enforcement officer" means any489
person who is employed full-timefull time as a state university490
law enforcement officer pursuant to section 3345.04 of the Revised491
Code and who is in compliance with section 109.77 of the Revised492
Code.493

       (RR) "Hamilton county municipal court bailiff" means a person494
appointed by the clerk of courts of the Hamilton county municipal495
court under division (A)(3) of section 1901.32 of the Revised Code496
who is employed full-time as a bailiff or deputy bailiff, who has497
received a certificate attesting to the person's satisfactory498
completion of the peace officer training school as required by499
division (C) of section 109.77 of the Revised Code, and whose500
primary duties are to preserve the peace, to protect life and501
property, and to enforce the laws of this state.502

       (SS)"Regional transit authority police officer" means a503
person who is employed full time as a regional transit authority504
police officer under division (Y) of section 306.35 of the Revised505
Code and is in compliance with section 109.77 of the Revised Code.506

       (SS) "State highway patrol police officer" means a special507
police officer employed full time and designated by the508
superintendent of the state highway patrol pursuant to section509
5503.09 of the Revised Code or a person serving full time as a510
special police officer pursuant to that section on a permanent511
basis on October 21, 1997, who is in compliance with section512
109.77 of the Revised Code.513

       (TT) Notwithstanding section 2901.01 of the Revised Code,514
"PERS law enforcement officer" means a sheriff, deputy sheriff,515
township constable or police officer in a township police516
department or district, drug agent, department of public safety517
enforcement agent, natural resources law enforcement staff518
officer, park officer, forest officer, preserve officer, wildlife519
officer, state watercraft officer, park district police officer,520
conservancy district officer, Ohio veterans' home police officer,521
special police officer for a mental health institution, special522
police officer for an institution for the mentally retarded and523
developmentally disabled, state university law enforcement524
officer, Hamilton county municipal court bailiff, or municipal525
police officer,regional transit authority police officer, or526
state highway patrol police officer.527

       (TT)(UU) "Hamilton county municipal court bailiff" means a528
person appointed by the clerk of courts of the Hamilton county529
municipal court under division (A)(3) of section 1901.32 of the530
Revised Code who is employed full time as a bailiff or deputy531
bailiff, who has received a certificate attesting to the person's532
satisfactory completion of the peace officer training school as533
required by division (C) of section 109.77 of the Revised Code,534
and whose primary duties are to preserve the peace, to protect535
life and property, and to enforce the laws of this state.536

       (VV) "Fiduciary" means a person who does any of the537
following:538

       (1) Exercises any discretionary authority or control with539
respect to the management of the system or with respect to the540
management or disposition of its assets;541

       (2) Renders investment advice for a fee, direct or indirect,542
with respect to money or property of the system;543

       (3) Has any discretionary authority or responsibility in the544
administration of the system.545

       (UU)(WW) "Actuary" means an individual who satisfies all of546
the following requirements:547

       (1) Is a member of the American academy of actuaries;548

       (2) Is an associate or fellow of the society of actuaries;549

       (3) Has a minimum of five years' experience in providing550
actuarial services to public retirement plans.551

       Sec. 145.321.  On and after October 1, 1957, all persons in552
receipt of, or who are or become eligible to receive, a monthly553
allowance, pension, or other benefit effective prior to June 29,554
1955, which is payable or becomes payable pursuant to the555
provisions of sections 145.33 to 145.36 and 145.46 of the Revised556
Code, or an allowance payable at any time under an option elected557
by a member and effective prior to that date, shall be paid an558
increased allowance, pension, or benefit as follows:559

       (A) An amount determined by increasing the original560
allowance, pension, or benefit by the following percentages as561
determined by the calendar year in which the allowance, pension,562
or benefit became effective:563

Calendar Year Per Cent 564
Effective of increase 565
1938-39 100 566
1940 94 567
1941 89 568
1942 77 569
1943 70 570
1944 68 571
1945 66 572
1946 55 573
1947 35 574
1948 23 575
1949 25 576
1950 23 577
1951 8 578
1952 4 579
1953 3 580
1954 2 581
Prior to June 29, 1955 2 582

       (B) If the amount of any allowance, pension, or other583
benefit is increased by division (A) of this section to an amount584
less than one hundred ten per cent of the present amount payable585
immediately prior to October 1, 1957, the present amount shall be586
increased by ten per cent.587

       (C) On and after August 1, 1959 the monthly allowance,588
pension, or other benefit effective prior to June 29, 1955,589
(exclusive of any amount receivable monthly by reason of a590
voluntary deposit made for additional annuity), together with the591
supplemental allowance payable pursuant to divisions (A) and (B)592
of this section, shall be increased by twelve per cent.593

       (D) Effective November 1, 1965, the allowances of each594
person who retired on or before June 30, 1955 and is receiving age595
and service or disability benefits under sections 145.32, 145.33,596
145.34, and 145.36 of the Revised Code shall be increased by one597
hundred twenty dollars annually, notwithstanding the final average598
salary limitations in division (F) of section 145.33 and division599
(B) of section 145.36 of the Revised Code.600

       (E) Effective November 1, 1965, the allowances of each601
person who retired after June 30, 1955 and on or before October602
31, 1965 and is receiving age and service ofor disability603
benefits under sections 145.32, 145.33, 145.34, and 145.36 of the604
Revised Code shall be increased by one hundred twenty dollars605
annually, which when added to the allowance in effect on October606
31, 1965, shall not exceed the final average salary limitations607
found in division (F) of section 145.33 and division (B) of608
section 145.36 of the Revised Code, except that the increase shall609
not be less than seventy-two dollars annually.610

       (F) Beginning November 1, 1965, the monthly benefit payable611
under section 145.45 of the Revised Code shall be increased six612
dollars for each survivor beneficiary receiving a benefit on613
October 31, 1965 and for each successor to such benefit.614

       For the purposes of this section: (1) The total increase615
payable per month on or after November 1, 1965 to a retirant or616
beneficiary from one or more state systems shall not exceed the617
ten dollar increase as provided in this division, and (2) in all618
cases involving combined membership and service as provided for619
under section 145.37 of the Revised Code, only those cases which620
are being paid by the public employees retirement system shall be621
calculated under the provisions of this section.622

       On or before August 1, 1982, and on or before the first day623
of August in each year thereafter, the public employees retirement624
board shall certify to the treasurer of state the amount required625
to be paid in the preceding fiscal year under divisions (A) and626
(B) of this section. Upon receipt of this certification, the627
treasurer of state shall pay the amount certified. The amount628
received by the public employees retirement board shall be629
credited to the proper fund from which such additional payments630
are paid.631

       Sec. 145.33.  (A) Except as provided in division (B), (C),632
or (D) of this section, a member with at least five years of total633
service credit who has attained age sixty, or who has thirty years634
of total Ohio service credit, may apply for age and service635
retirement, which shall consist of:636

       (1) An annuity having a reserve equal to the amount of the637
member's accumulated contributions at that time;638

       (2) A pension equal to the annuity provided by division639
(A)(1) of this section;640

       (3) An additional pension, if the member can qualify for641
prior service, equal to forty dollars multiplied by the number of642
years, and fraction thereof, of such prior and military service643
credit;644

       (4) A basic annual pension equal to one hundred eighty645
dollars if the member has ten or more years of total service646
credit as of October 1, 1956, except that the basic annual pension647
shall not exceed the sum of the annual benefits provided by648
divisions (A)(1), (2), and (3) of this section.649

       (5) When a member retires on age and service retirement, the650
member's total annual single lifetime allowance, including the651
allowances provided in divisions (A)(1), (2), (3), and (4) of this652
section, shall be not less than a base amount adjusted in653
accordance with division (A)(5) of this section and determined by654
multiplying the member's total service credit by the greater of655
the following:656

       (a) Eighty-six dollars;657

       (b) Two and two-tenths per cent of the member's final658
average salary for each of the first thirty years of service plus659
two and one-half per cent of the member's final average salary for660
each subsequent year of service.661

       The allowance shall be adjusted by the factors of attained662
age or years of service to provide the greater amount as663
determined by the following schedule:664

Years of Percentage 665
Attained or Total Service of 666
Birthday Credit Base Amount 667

58 25 75 668
59 26 80 669
60 27 85 670
61 88 671
28 90 672
62 91 673
63 94 674
29 95 675
64 97 676
65 30 or more 100 677

       Members shall vest the right to a benefit in accordance with678
the following schedule, based on the member's attained age by679
September 1, 1976:680

Percentage 681
Attained of 682
Birthday Base Amount 683
66 102 684
67 104 685
68 106 686
69 108 687
70 or more 110 688

       (6) The total annual single lifetime allowance that a member689
shall receive under division (A)(5) of this section shall not690
exceed the lesser of one hundred per cent of the member's final691
average salary or the limit established by section 415 of the692
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,693
as amended.694

       (B)(1) For the purposes of divisions (B) to (F)(G) of this695
section, "total service credit as a PERS law enforcement officer"696
includesand "total service credit as a Hamilton county municipal697
court bailiff" include credit for military service to the extent698
permitted by division (F)(E)(2) of this section and credit for699
service as a police officer or state highway patrol trooper to the700
extent permitted by division (F)divisions (E)(3) and (4) of this701
section.702

       (2) A member who meets the conditions in division (B)(2)(a),703
(b), or (c) of this section may apply for an age and service704
retirement benefit under this division:705

       (a) Except as provided in division (B)(2)(b) of this section,706
hasHas at least twenty-five years of total service credit as a707
PERS law enforcement officer and has attained age fifty-two708
forty-eight;709

       (b) Has at least twenty-five years of total service credit710
as a law enforcement officer while serving as a sheriff, deputy711
sheriff, or township constable or police officer in a township712
police department or districtHamilton county municipal court713
bailiff and has attained age forty-eightfifty-two;714

       (c) Has at least fifteen years of total service credit as a715
PERS law enforcement officer or a Hamilton county municipal court716
bailiff and has attained age sixty-two.717

       (3) A benefit paid under division (B)(2) of this section718
shall consist of an annual single lifetime allowance equal to the719
sum of two and one-half per cent of the member's final average720
salary multiplied by the first twenty-five years of the member's721
total service plus two and one-tenth per cent of the member's722
final average salary multiplied by the number of years of the723
member's total service credit in excess of twenty-five years.724

       (C)(4) A member with at least fifteen years of total service725
credit as a PERS law enforcement officer or a Hamilton county726
municipal court bailiff who voluntarily resigns or is discharged727
for any reason except death, dishonesty, cowardice, intemperate728
habits, or conviction of a felony may apply for an age and service729
retirement benefit, which shall consist of an annual single730
lifetime allowance equal to one and one-half per cent of the731
member's final average salary multiplied by the number of years of732
the member's total service credit. The allowance shall commence733
on the first day of the calendar month following the month in734
which the application is filed with the public employees735
retirement board on or after the attainment by the applicant of736
age fifty-two.737

       (D)(C)(1) A member with at least twenty-five years of total738
service credit as a law enforcement officer other than as a law739
enforcement officer eligible for a benefit under division740
(B)(2)(b) of this sectionHamilton county municipal court bailiff741
who voluntarily resigns or is discharged for any reason except742
death, dishonesty, cowardice, intemperate habits, or conviction of743
a felony, on or after the date of attaining forty-eight years of744
age, but before the date of attaining fifty-two years of age, may745
elect to receive a reduced benefit as determined by the following746
schedule:747

Attained Age Reduced Benefit 748

48 75% of the benefit payable under 749
division (B)(3) of this section 750
49 80% of the benefit payable under 751
division (B)(3) of this section 752
50 86% of the benefit payable under 753
division (B)(3) of this section 754
51 93% of the benefit payable under 755
division (B)(3) of this section 756

       (2) If a member elects to receive a reduced benefit after757
attaining age forty-eight the reduced benefit is payable from the758
later of the date of the member's most recent birthday or the date759
the member becomes eligible to receive the reduced benefit.760

       (3) Once a member elects to receive a reduced benefit761
determined by the schedule in division (D)(C)(1) of this section762
and has received a payment, the member may not reelect to change763
that election.764

       (4) If a member who has resigned or been discharged has left765
on deposit the member's accumulated contributions in the766
employees' savings fund and has not elected to receive a reduced767
benefit determined by the schedule in division (D)(C)(1) of this768
section, upon attaining fifty-two years of age, the member shall769
be entitled to receive a benefit computed and paid under division770
(B)(3) of this section.771

       (E)(D) A benefit paid under division (B),or (C), or (D) of772
this section shall not exceed the lesser of ninety per cent of the773
member's final average salary or the limit established by section774
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26775
U.S.C.A. 415, as amended.776

       (F)(E)(1) A member with service credit as a PERS law777
enforcement officer or a Hamilton county municipal court bailiff778
and other service credit under this chapter may elect one of the779
following:780

       (a) To have all the member's service credit under this781
chapter, including credit for service as a PERS law enforcement782
officer or a Hamilton county municipal court bailiff, used in783
calculating a retirement allowance under division (A) of this784
section if the member qualifies for an allowance under that785
division;786

       (b) If the member qualifies for an allowance under division787
(B)(2)(a) or (c), (C), or (D) of this section, to have the788
member's service credit as a PERS law enforcement officer or789
Hamilton county municipal court bailiff used in calculating a790
benefit under thatthe appropriate division and the member's791
credit for all service other than PERS law enforcement service or792
service as a Hamilton county municipal court bailiff under this793
chapter used in calculating a benefit consisting of a single life794
annuity having a reserve equal to the amount of the member's795
accumulated contributions and an equal amount of the employer's796
contributions;797

       (c) If the member qualifies for an allowance under division798
(B)(2)(b) of this section, to have the member's service credit as799
a law enforcement officer while serving as a sheriff, deputy800
sheriff, or township constable or police officer in a township801
police department or district used in calculating a benefit under802
division (B)(2)(b) of this section and the member's credit for all803
other service under this chapter used in calculating a benefit804
consisting of a single life annuity having a reserve equal to the805
amount of the member's accumulated contributions and an equal806
amount of the employer's contributions.807

       (2) Notwithstanding sections 145.01 and 145.30 of the808
Revised Code, no more than four years of military service credit809
granted under section 145.30 of the Revised Code and five years of810
military service credit purchased under section 145.301 or 145.302811
of the Revised Code shall be used in calculating service as a PERS812
law enforcement officer or Hamilton county municipal court bailiff813
or the total service credit of that person.814

       (3) Only credit for the member's service as a PERS law815
enforcement officer or service credit obtained as a police officer816
or state highway patrol trooper shall be used in computing the817
benefitsbenefit of a member who qualifies for a benefit under818
division (B), (C)(2)(a) or (c), or (D)(4) of this section for the819
following:820

       (a) Any person who originally is commissioned and employed821
as a deputy sheriff by the sheriff of any county, or who822
originally is elected sheriff, on or after January 1, 1975;823

       (b) Any deputy sheriff who originally is employed as a824
criminal bailiff or court constable on or after April 16, 1993;825

       (c) Any person who originally is appointed as a township826
constable or police officer in a township police department or827
district on or after January 1, 1981;828

       (d) Any person who originally is employed as a county829
narcotics agent on or after September 26, 1984;830

       (e) Any person who originally is employed as an undercover831
drug agent as defined in section 109.79 of the Revised Code,832
department of public safety enforcement agent who prior to June833
30, 1999, was a liquor control investigator, park officer, forest834
officer, wildlife officer, state watercraft officer, park district835
police officer, conservancy district officer, Ohio veterans' home836
police officer, special police officer for a mental health837
institution, special police officer for an institution for the838
mentally retarded and developmentally disabled, or municipal839
police officer on or after December 15, 1988;840

       (f) Any person who originally is employed as a state841
university law enforcement officer on or after November 6, 1996;842

       (g) Any person who originally is employed as a Hamilton843
county municipal court bailiff on or after November 6, 1996;844

       (h) Any person who is originally employed as a state845
university law enforcement officer by the university of Akron on846
or after September 16, 1998;847

       (i)(h) Any person who originally is employed as a preserve848
officer on or after March 18, 1999;849

       (j)(i) Any person who originally is employed as a natural850
resources law enforcement staff officer on or after March 18,851
1999;852

       (k)(j) Any person who is originally employed as a department853
of public safety enforcement agent on or after June 30, 1999.854



       (G)(k) Any person who is originally appointed as a regional856
transit authority police officer or state highway patrol police857
officer on or after the effective date of this amendment. 858

       (4) Only credit for a member's service as a Hamilton county859
municipal court bailiff or service credit obtained as a PERS law860
enforcement officer, police officer, or state highway patrol861
trooper shall be used in computing the benefit of a member who862
qualifies for a benefit under division (B)(2)(b) or (c) or (4) of863
this section for any person who originally is employed as a864
Hamilton county municipal court bailiff on or after November 6,865
1996. 866

       (F) Retirement allowances determined under this section867
shall be paid as provided in section 145.46 of the Revised Code.868

       (H)(G) For the purposes of this section, service prior to869
June 30, 1999, as a food stamp trafficking agent under former870
section 5502.14 of the Revised Code shall be considered service as871
a PERS law enforcement officer.872

       Sec. 145.35.  (A) As used in this section, "on-duty illness873
or injury" means an illness or injury that occurred during or874
resulted from performance of duties under the direct supervision875
of a member's appointing authority.876

       (B) The public employees retirement system shall provide877
disability coverage to each member who has at least five years of878
total service credit and disability coverage for on-duty illness879
or injury to each member who is a PERS law enforcement officer or880
Hamilton county municipal court bailiff, regardless of length of881
service.882

       Not later than October 16, 1992, the public employees883
retirement board shall give each person who is a member on July884
29, 1992, the opportunity to elect disability coverage either885
under section 145.36 of the Revised Code or under section 145.361886
of the Revised Code. The board shall mail notice of the election,887
accompanied by an explanation of the coverage under each of the888
Revised Code sections and a form on which the election is to be889
made, to each member at the member's last known address. The890
board shall also provide the explanation and form to any member on891
request.892

       Regardless of whether the member actually receives notice of893
the right to make an election, a member who fails to file a valid894
election under this section shall be considered to have elected895
disability coverage under section 145.36 of the Revised Code. To896
be valid, an election must be made on the form provided by the897
retirement board, signed by the member, and filed with the board898
not later than one hundred eighty days after the date the notice899
was mailed, or, in the case of a form provided at the request of a900
member, a date specified by rule of the retirement board. Once901
made, an election is irrevocable, but if the member ceases to be a902
member of the retirement system, the election is void. If a903
person who makes an election under this section also makes an904
election under section 3307.62 or 3309.39 of the Revised Code, the905
election made for the system that pays a disability benefit to906
that person shall govern the benefit.907

       Disability coverage shall be provided under section 145.361908
of the Revised Code for persons who become members after July 29,909
1992, and for members who elect under this division to be covered910
under section 145.361 of the Revised Code.911

       The retirement board may adopt rules governing elections made912
under this division.913

       (C) Application for a disability benefit may be made by a914
member, by a person acting in the member's behalf, or by the915
member's employer, provided the member has disability coverage916
under section 145.36 or 145.361 of the Revised Code and is not917
receiving a disability benefit under any other Ohio state or918
municipal retirement program. Application must be made within two919
years from the date the member's contributing service terminated,920
unless the retirement board determines that the member's medical921
records demonstrate conclusively that at the time the two-year922
period expired, the member was physically or mentally923
incapacitated for duty and unable to make an application.924
Application may not be made by or for any person receiving age and925
service retirement benefits under section 145.33, 145.331, 145.34,926
or 145.37 of the Revised Code or any person who, pursuant to927
section 145.40 of the Revised Code, has been paid the accumulated928
contributions standing to the credit of the person's individual929
account in the employees' savings fund. The application shall be930
made on a form provided by the retirement board.931

       (D) The benefit payable to any member who is approved for a932
disability benefit shall become effective on the first day of the933
month immediately following the later of the following:934

       (1) The last day for which compensation was paid;935

       (2) The attainment of eligibility for a disability benefit.936

       (E) Medical examination of a member who has applied for a937
disability benefit shall be conducted by a competent disinterested938
physician or physicians selected by the board to determine whether939
the member is mentally or physically incapacitated for the940
performance of duty by a disabling condition either permanent or941
presumed to be permanent. The disability must have occurred since942
last becoming a member or have increased since last becoming a943
member to such extent as to make the disability permanent or944
presumed to be permanent. A disability is presumed to be945
permanent if it is expected to last for a continuous period of not946
less than twelve months following the filing of the application.947

       If the physician or physicians determine that the member948
qualifies for a disability benefit, the board concurs with the949
determination, and the member agrees to medical treatment as950
specified in division (F) of this section, the member shall951
receive a disability benefit under section 145.36 or 145.361 of952
the Revised Code. The action of the board shall be final.953

       (F) The public employees retirement board shall adopt rules954
requiring a disability benefit recipient, as a condition of955
continuing to receive a disability benefit, to agree in writing to956
obtain any medical treatment recommended by the board's physician957
and submit medical reports regarding the treatment. If the board958
determines that a disability benefit recipient is not obtaining959
the medical treatment or the board does not receive a required960
medical report, the disability benefit shall be suspended until961
the treatment is obtained, the report is received by the board, or962
the board's physician certifies that the treatment is no longer963
helpful or advisable. Should the recipient's failure to obtain964
treatment or submit a medical report continue for one year, the965
recipient's right to the disability benefit shall be terminated as966
of the effective date of the original suspension.967

       (G) In the event an employer files an application for a968
disability benefit as a result of a member having been separated969
from service because the member is considered to be mentally or970
physically incapacitated for the performance of the member's971
present duty, and the physician or physicians selected by the972
board reports to the board that the member is physically and973
mentally capable of performing service similar to that from which974
the member was separated and the board concurs in the report, the975
board shall so certify to the employer and the employer shall976
restore the member to the member's previous position and salary or977
to a similar position and salary.978

       Sec. 145.49. (A) Notwithstanding section 145.47 of the979
Revised Code, the:980

       (1) The public employees retirmentretirement system shall981
be authorized to calculate the employee contribution rates982
separately for those public employees contributing toward benefits983
under division (B), (C), or (D) of section 145.33 of the Revised984
Code.to the retirement system for services as a Hamilton county985
municipal court bailiff.986

       (2) Each public employee contributing toward benefits under987
division (B)(2)(b) of section 145.33 of the Revised Codeto the988
public employees retirement system as a PERS law enforcement989
officer shall contribute to the employees' savings fund the sum990
of oneten and one-tenth per cent of the employee's earnable991
salary and the employee contribution rate calculated for employees992
contributing toward benefits under division (B)(2)(a) of section993
145.33 of the Revised Code, notwithstanding section 145.47 of the994
Revised Code.995

       (B) Notwithstanding section 145.48 of the Revised Code, the996
public employees retirement system shall be authorized to997
calculate the employer contribution rates separately for those998
public employees contributing toward benefits under division (B),999
(C), or (D) of section 145.33 of the Revised Codeto the1000
retirement system for service as a PERS law enforcement officer or1001
a Hamilton county municipal court bailiff, except that the1002
employer contribution rate shall not exceed eighteen and one-tenth1003
per cent of the earnable salaries of those employees.1004

       Sec. 3309.312.  (A) Not later than ninety days after1005
September 16, 1998, a member who, on September 16, 1998, is1006
employed full-timefull time pursuant to section 3345.04 of the1007
Revised Code by the university of Akron as a state university law1008
enforcement officer may elect to transfer to the public employees1009
retirement system in accordance with this section. An election1010
shall be made by giving notice to the school employees retirement1011
system on a form provided by the school employees retirement board1012
and shall be irrevocable.1013

       (B) When a member makes the election described in this1014
section, the school employees retirement system shall notify the1015
public employees retirement system. The school employees1016
retirement system shall transfer all of the member's service1017
credit to the public employees retirement system and shall certify1018
to the public employees retirement system a copy of the member's1019
records of service and contributions. For each year or portion of1020
a year of credit, the school employees retirement system shall1021
transfer to the public employees retirement system all of the1022
following:1023

       (1) An amount equal to the accumulated contributions1024
standing to the member's credit;1025

       (2) An amount equal to the total employer contributions paid1026
on behalf of the member;1027

       (3) Any amount paid by the member or employer to the school1028
employees retirement system for the purchase of service credit.1029

       At the request of the public employees retirement system, the1030
employer of a member who makes an election under this section1031
shall certify to the public employees retirement system the1032
member's salary.1033

       (C) A member who elects to transfer to the public employees1034
retirement system under this section shall make contributions and1035
receive benefits in accordance with divisions (B) to (G)(F) of1036
section 145.33 of the Revised Code.1037

       (D) A member who fails to make an election in accordance1038
with this section shall remain a member of the school employees1039
retirement system.1040

       Section 2.  That existing sections 145.01, 145.321, 145.33,1041
145.35, 145.49, and 3309.312 of the Revised Code are hereby1042
repealed.1043

       Section 3.  As used in this section, "regional transit1044
authority police officer" and "state highway patrol police1045
officer" have the same meaning as in section 145.01 of the Revised1046
Code, as amended by this act.1047

       Not later than ninety days after the effective date of this1048
act, each regional transit authority police officer and state1049
highway patrol police officer who is a member of the Public1050
Employees Retirement System shall indicate to the system, on a1051
form supplied by the retirement system, a choice of whether to1052
receive benefits under division (A) of section 143.33 of the1053
Revised Code or under division (B) of that section.1054


       Section 4.  Section 145.01 of the Revised Code is presented1056
in this act as a composite of the section as amended by Am. Sub.1057
H.B. 628, Am. Sub. H.B. 640, and Am. Sub. S.B. 144 of the 123rd1058
General Assembly. The General Assembly, applying the principle1059
stated in division (B) of section 1.52 of the Revised Code that1060
amendments are to be harmonized if reasonably capable of1061
simultaneous operation, finds that the composite is the resulting1062
version of the section in effect prior to the effective date of1063
the section as presented in this act.1064