As Passed by the House

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


REPRESENTATIVES Hollister, Ogg, Boccieri, Barrett, Schneider, Flowers, DeWine, Rhine, Hagan, Schmidt, Hughes, Kearns, Willamowski, Latta, Webster, Beatty, Fedor, DePiero, Evans, Gilb, White, Carmichael, Niehaus, Sulzer, Key, Collier, Clancy, D. Miller, Olman, Woodard, Core, Peterson, Distel, Lendrum, Goodman, Young, Setzer, Britton, Reidelbach, Hartnett, Womer Benjamin, Grendell, Barnes, Flannery, Ford, Seitz, Coates, Redfern, Jones, Patton, Cates, Callender, S. Smith, Otterman, Oakar, Salerno, Metelsky, Aslanides, Fessler, Perry, G. Smith, Kilbane, Allen, Faber, Driehaus



A BILL
To amend sections 145.01, 145.19, 145.191, 145.321,1
145.33, 145.35, 145.40, 145.45, 145.49, and2
3309.312 of the Revised Code to permit certain3
Public Employees Retirement System (PERS) members4
with at least 25 years of law enforcement service5
credit to retire with full benefits at age 48 and6
increase the employee contribution rate for those7
members, to include regional transit authority and8
highway patrol police officers as law enforcement9
officers for PERS purposes, and to make survivors10
of PERS law enforcement officers eligible for11
benefits regardless of the length of the officer's12
PERS membership.13


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

       Section 1.  That sections 145.01, 145.19, 145.191, 145.321,14
145.33, 145.35, 145.40, 145.45, 145.49, and 3309.312 of the15
Revised Code be amended to read as follows:16

       Sec. 145.01.  As used in this chapter:17

       (A) "Public employee" means:18

       (1) Any person holding an office, not elective, under the19
state or any county, township, municipal corporation, park20
district, conservancy district, sanitary district, health21
district, metropolitan housing authority, state retirement board,22
Ohio historical society, public library, county law library, union23
cemetery, joint hospital, institutional commissary, state24
university, or board, bureau, commission, council, committee,25
authority, or administrative body as the same are, or have been,26
created by action of the general assembly or by the legislative27
authority of any of the units of local government named in28
division (A)(1) of this section, or employed and paid in whole or29
in part by the state or any of the authorities named in division30
(A)(1) of this section in any capacity not covered by section31
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.32

       (2) A person who is a member of the public employees33
retirement system and who continues to perform the same or similar34
duties under the direction of a contractor who has contracted to35
take over what before the date of the contract was a publicly36
operated function. The governmental unit with which the contract37
has been made shall be deemed the employer for the purposes of38
administering this chapter.39

       (3) Any person who is an employee of a public employer,40
notwithstanding that the person's compensation for that employment41
is derived from funds of a person or entity other than the42
employer. Credit for such service shall be included as total43
service credit, provided that the employee makes the payments44
required by this chapter, and the employer makes the payments45
required by sections 145.48 and 145.51 of the Revised Code.46

       (4) A person who elects in accordance with section 145.01547
of the Revised Code to remain a contributing member of the public48
employees retirement system.49

       In all cases of doubt, the public employees retirement board50
shall determine whether any person is a public employee, and its51
decision is final.52

       (B) "Member" means any public employee, other than a public53
employee excluded or exempted from membership in the retirement54
system by section 145.03, 145.031, 145.032, 145.033, 145.034,55
145.035, or 145.38 of the Revised Code. "Member" includes a PERS56
retirant who becomes a member under division (C) of section 145.3857
of the Revised Code. "Member" also includes a disability benefit58
recipient.59

       (C) "Head of the department" means the elective or appointive60
head of the several executive, judicial, and administrative61
departments, institutions, boards, and commissions of the state62
and local government as the same are created and defined by the63
laws of this state or, in case of a charter government, by that64
charter.65

       (D) "Employer" or "public employer" means the state or any66
county, township, municipal corporation, park district,67
conservancy district, sanitary district, health district,68
metropolitan housing authority, state retirement board, Ohio69
historical society, public library, county law library, union70
cemetery, joint hospital, institutional commissary, state medical71
college, state university, or board, bureau, commission, council,72
committee, authority, or administrative body as the same are, or73
have been, created by action of the general assembly or by the74
legislative authority of any of the units of local government75
named in this division not covered by section 742.01, 3307.01,76
3309.01, or 5505.01 of the Revised Code. In addition, "employer"77
means the employer of any public employee.78

       (E) "Prior service" means all service as a public employee79
rendered before January 1, 1935, and all service as an employee of80
any employer who comes within the state teachers retirement system81
or of the school employees retirement system or of any other82
retirement system established under the laws of this state83
rendered prior to January 1, 1935, provided that if the employee84
claiming the service was employed in any capacity covered by that85
other system after that other system was established, credit for86
the service may be allowed by the public employees retirement87
system only when the employee has made payment, to be computed on88
the salary earned from the date of appointment to the date89
membership was established in the public employees retirement90
system, at the rate in effect at the time of payment, and the91
employer has made payment of the corresponding full liability as92
provided by section 145.44 of the Revised Code. "Prior service"93
also means all service credited for active duty with the armed94
forces of the United States as provided in section 145.30 of the95
Revised Code.96

       If an employee who has been granted prior service credit by97
the public employees retirement system for service rendered prior98
to January 1, 1935, as an employee of a board of education99
establishes, before retirement, one year or more of contributing100
service in the state teachers retirement system or school101
employees retirement system, then the prior service ceases to be102
the liability of this system.103

       If the board determines that a position of any member in any104
calendar year prior to January 1, 1935, was a part-time position,105
the board shall determine what fractional part of a year's credit106
shall be allowed by the following formula:107

       (1) When the member has been either elected or appointed to108
an office the term of which was two or more years and for which an109
annual salary is established, the fractional part of the year's110
credit shall be computed as follows:111

       First, when the member's annual salary is one thousand112
dollars or less, the service credit for each such calendar year113
shall be forty per cent of a year.114

       Second, for each full one hundred dollars of annual salary115
above one thousand dollars, the member's service credit for each116
such calendar year shall be increased by two and one-half per117
cent.118

       (2) When the member is paid on a per diem basis, the service119
credit for any single year of the service shall be determined by120
using the number of days of service for which the compensation was121
received in any such year as a numerator and using two hundred122
fifty days as a denominator.123

       (3) When the member is paid on an hourly basis, the service124
credit for any single year of the service shall be determined by125
using the number of hours of service for which the compensation126
was received in any such year as a numerator and using two127
thousand hours as a denominator.128

       (F) "Contributor" means any person who has an account in the129
employees' savings fund created by section 145.23 of the Revised130
Code. When used in the sections listed in division (B) of section131
145.82 of the Revised Code, "contributor" includes any person132
participating in a plan established under section 145.81 of the133
Revised Code.134

       (G) "Beneficiary" or "beneficiaries" means the estate or a135
person or persons who, as the result of the death of a member,136
contributor, or retirant, qualify for or are receiving some right137
or benefit under this chapter.138

       (H)(1) "Total service credit," except as provided in section139
145.37 of the Revised Code, means all service credited to a member140
of the retirement system since last becoming a member, including141
restored service credit as provided by section 145.31 of the142
Revised Code; credit purchased under sections 145.293 and 145.299143
of the Revised Code; all the member's prior service credit; all144
the member's military service credit computed as provided in this145
chapter; all service credit established pursuant to section146
145.297 of the Revised Code; and any other service credited under147
this chapter. In addition, "total service credit" includes any148
period, not in excess of three years, during which a member was149
out of service and receiving benefits under Chapters 4121. and150
4123. of the Revised Code. For the exclusive purpose of151
satisfying the service credit requirement and of determining152
eligibility for benefits under sections 145.32, 145.33, 145.331,153
145.35, 145.36, and 145.361 of the Revised Code, "five or more154
years of total service credit" means sixty or more calendar months155
of contributing service in this system.156

       (2) "One and one-half years of contributing service credit,"157
as used in division (B) of section 145.45 of the Revised Code,158
also means eighteen or more calendar months of employment by a159
municipal corporation that formerly operated its own retirement160
plan for its employees or a part of its employees, provided that161
all employees of that municipal retirement plan who have eighteen162
or more months of such employment, upon establishing membership in163
the public employees retirement system, shall make a payment of164
the contributions they would have paid had they been members of165
this system for the eighteen months of employment preceding the166
date membership was established. When that payment has been made167
by all such employee members, a corresponding payment shall be168
paid into the employers' accumulation fund by that municipal169
corporation as the employer of the employees.170

       (3) Where a member also is a member of the state teachers171
retirement system or the school employees retirement system, or172
both, except in cases of retirement on a combined basis pursuant173
to section 145.37 of the Revised Code or as provided in section174
145.383 of the Revised Code, service credit for any period shall175
be credited on the basis of the ratio that contributions to the176
public employees retirement system bear to total contributions in177
all state retirement systems.178

       (4) Not more than one year of credit may be given for any179
period of twelve months.180

       (5) "Ohio service credit" means credit for service that was181
rendered to the state or any of its political subdivisions or any182
employer.183

       (I) "Regular interest" means interest at any rates for the184
respective funds and accounts as the public employees retirement185
board may determine from time to time.186

       (J) "Accumulated contributions" means the sum of all amounts187
credited to a contributor's individual account in the employees'188
savings fund together with any interest credited to the189
contributor's account under section 145.471 or 145.472 of the190
Revised Code.191

       (K)(1) "Final average salary" means the quotient obtained by192
dividing by three the sum of the three full calendar years of193
contributing service in which the member's earnable salary was194
highest, except that if the member has a partial year of195
contributing service in the year the member's employment196
terminates and the member's earnable salary for the partial year197
is higher than for any comparable period in the three years, the198
member's earnable salary for the partial year shall be substituted199
for the member's earnable salary for the comparable period during200
the three years in which the member's earnable salary was lowest.201

       (2) If a member has less than three years of contributing202
service, the member's final average salary shall be the member's203
total earnable salary divided by the total number of years,204
including any fraction of a year, of the member's contributing205
service.206

       (3) For the purpose of calculating benefits payable to a207
member qualifying for service credit under division (Z) of this208
section, "final average salary" means the total earnable salary on209
which contributions were made divided by the total number of years210
during which contributions were made, including any fraction of a211
year. If contributions were made for less than twelve months,212
"final average salary" means the member's total earnable salary.213

       (L) "Annuity" means payments for life derived from214
contributions made by a contributor and paid from the annuity and215
pension reserve fund as provided in this chapter. All annuities216
shall be paid in twelve equal monthly installments.217

       (M) "Annuity reserve" means the present value, computed upon218
the basis of the mortality and other tables adopted by the board,219
of all payments to be made on account of any annuity, or benefit220
in lieu of any annuity, granted to a retirant as provided in this221
chapter.222

       (N)(1) "Disability retirement" means retirement as provided223
in section 145.36 of the Revised Code.224

       (2) "Disability allowance" means an allowance paid on account225
of disability under section 145.361 of the Revised Code.226

       (3) "Disability benefit" means a benefit paid as disability227
retirement under section 145.36 of the Revised Code, as a228
disability allowance under section 145.361 of the Revised Code, or229
as a disability benefit under section 145.37 of the Revised Code.230

       (4) "Disability benefit recipient" means a member who is231
receiving a disability benefit.232

       (O) "Age and service retirement" means retirement as provided233
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of234
the Revised Code.235

       (P) "Pensions" means annual payments for life derived from236
contributions made by the employer that at the time of retirement237
are credited into the annuity and pension reserve fund from the238
employers' accumulation fund and paid from the annuity and pension239
reserve fund as provided in this chapter. All pensions shall be240
paid in twelve equal monthly installments.241

       (Q) "Retirement allowance" means the pension plus that242
portion of the benefit derived from contributions made by the243
member.244

       (R)(1) Except as otherwise provided in division (R) of this245
section, "earnable salary" means all salary, wages, and other246
earnings paid to a contributor by reason of employment in a247
position covered by the retirement system. The salary, wages, and248
other earnings shall be determined prior to determination of the249
amount required to be contributed to the employees' savings fund250
under section 145.47 of the Revised Code and without regard to251
whether any of the salary, wages, or other earnings are treated as252
deferred income for federal income tax purposes. "Earnable salary"253
includes the following:254

       (a) Payments made by the employer in lieu of salary, wages,255
or other earnings for sick leave, personal leave, or vacation used256
by the contributor;257

       (b) Payments made by the employer for the conversion of sick258
leave, personal leave, and vacation leave accrued, but not used if259
the payment is made during the year in which the leave is accrued,260
except that payments made pursuant to section 124.383 or 124.386261
of the Revised Code are not earnable salary;262

       (c) Allowances paid by the employer for full maintenance,263
consisting of housing, laundry, and meals, as certified to the264
retirement board by the employer or the head of the department265
that employs the contributor;266

       (d) Fees and commissions paid under section 507.09 of the267
Revised Code;268

       (e) Payments that are made under a disability leave program269
sponsored by the employer and for which the employer is required270
by section 145.296 of the Revised Code to make periodic employer271
and employee contributions;272

       (f) Amounts included pursuant to divisions (K)(3) and (Y) of273
this section.274

       (2) "Earnable salary" does not include any of the following:275

       (a) Fees and commissions, other than those paid under276
section 507.09 of the Revised Code, paid as sole compensation for277
personal services and fees and commissions for special services278
over and above services for which the contributor receives a279
salary;280

       (b) Amounts paid by the employer to provide life insurance,281
sickness, accident, endowment, health, medical, hospital, dental,282
or surgical coverage, or other insurance for the contributor or283
the contributor's family, or amounts paid by the employer to the284
contributor in lieu of providing the insurance;285

       (c) Incidental benefits, including lodging, food, laundry,286
parking, or services furnished by the employer, or use of the287
employer's property or equipment, or amounts paid by the employer288
to the contributor in lieu of providing the incidental benefits;289

       (d) Reimbursement for job-related expenses authorized by the290
employer, including moving and travel expenses and expenses291
related to professional development;292

       (e) Payments for accrued but unused sick leave, personal293
leave, or vacation that are made at any time other than in the294
year in which the sick leave, personal leave, or vacation was295
accrued;296

       (f) Payments made to or on behalf of a contributor that are297
in excess of the annual compensation that may be taken into298
account by the retirement system under division (a)(17) of section299
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26300
U.S.C.A. 401(a)(17), as amended;301

       (g) Payments made under division (B) or (D) of section302
5923.05 of the Revised Code or Section 4 of Substitute Senate Bill303
No. 3 of the 119th general assembly;304

       (h) Anything of value received by the contributor that is305
based on or attributable to retirement or an agreement to retire,306
except that payments made on or before January 1, 1989, that are307
based on or attributable to an agreement to retire shall be308
included in earnable salary if both of the following apply:309

       (i) The payments are made in accordance with contract310
provisions that were in effect prior to January 1, 1986;311

       (ii) The employer pays the retirement system an amount312
specified by the retirement board equal to the additional313
liability resulting from the payments.314

       (3) The retirement board shall determine by rule whether any315
compensation not enumerated in division (R) of this section is316
earnable salary, and its decision shall be final.317

       (S) "Pension reserve" means the present value, computed upon318
the basis of the mortality and other tables adopted by the board,319
of all payments to be made on account of any retirement allowance320
or benefit in lieu of any retirement allowance, granted to a321
member or beneficiary under this chapter.322

       (T)(1) "Contributing service" means all service credited to a323
member of the system since January 1, 1935, for which324
contributions are made as required by sections 145.47, 145.48, and325
145.483 of the Revised Code. In any year subsequent to 1934,326
credit for any service shall be allowed by the following formula:327

       (a) For each month for which the member's earnable salary is328
two hundred fifty dollars or more, allow one month's credit.329

       (b) For each month for which the member's earnable salary is330
less than two hundred fifty dollars, allow a fraction of a month's331
credit. The numerator of this fraction shall be the earnable332
salary during the month, and the denominator shall be two hundred333
fifty dollars, except that if the member's annual earnable salary334
is less than six hundred dollars, the member's credit shall not be335
reduced below twenty per cent of a year for a calendar year of336
employment during which the member worked each month. Division337
(T)(1)(b) of this section shall not reduce any credit earned338
before January 1, 1985.339

       (2) Notwithstanding division (T)(1) of this section, an340
elected official who prior to January 1, 1980, was granted a full341
year of credit for each year of service as an elected official342
shall be considered to have earned a full year of credit for each343
year of service regardless of whether the service was full-time or344
part-time. The public employees retirement board has no authority345
to reduce the credit.346

       (U) "State retirement board" means the public employees347
retirement board, the school employees retirement board, or the348
state teachers retirement board.349

       (V) "Retirant" means any former member who retires and is350
receiving a monthly allowance as provided in sections 145.32,351
145.33, 145.331, 145.34, and 145.46 of the Revised Code.352

       (W) "Employer contribution" means the amount paid by an353
employer as determined under section 145.48 of the Revised Code.354

       (X) "Public service terminates" means the last day for which355
a public employee is compensated for services performed for an356
employer or the date of the employee's death, whichever occurs357
first.358

       (Y) When a member has been elected or appointed to an359
office, the term of which is two or more years, for which an360
annual salary is established, and in the event that the salary of361
the office is increased and the member is denied the additional362
salary by reason of any constitutional provision prohibiting an363
increase in salary during a term of office, the member may elect364
to have the amount of the member's contributions calculated upon365
the basis of the increased salary for the office. At the member's366
request, the board shall compute the total additional amount the367
member would have contributed, or the amount by which each of the368
member's contributions would have increased, had the member369
received the increased salary for the office the member holds. If370
the member elects to have the amount by which the member's371
contribution would have increased withheld from the member's372
salary, the member shall notify the employer, and the employer373
shall make the withholding and transmit it to the retirement374
system. A member who has not elected to have that amount withheld375
may elect at any time to make a payment to the retirement system376
equal to the additional amount the member's contribution would377
have increased, plus interest on that contribution, compounded378
annually at a rate established by the board and computed from the379
date on which the last contribution would have been withheld from380
the member's salary to the date of payment. A member may make a381
payment for part of the period for which the increased382
contribution was not withheld, in which case the interest shall be383
computed from the date the last contribution would have been384
withheld for the period for which the payment is made. Upon the385
payment of the increased contributions as provided in this386
division, the increased annual salary as provided by law for the387
office for the period for which the member paid increased388
contributions thereon shall be used in determining the member's389
earnable salary for the purpose of computing the member's final390
average salary.391

       (Z) "Five years of service credit," for the exclusive purpose392
of satisfying the service credit requirements and of determining393
eligibility for benefits under section 145.33 of the Revised Code,394
means employment covered under this chapter or under a former395
retirement plan operated, recognized, or endorsed by the employer396
prior to coverage under this chapter or under a combination of the397
coverage.398

       (AA) "Deputy sheriff" means any person who is commissioned399
and employed as a full-time peace officer by the sheriff of any400
county, and has been so employed since on or before December 31,401
1965, and whose primary duties are to preserve the peace, to402
protect life and property, and to enforce the laws of this state;403
any person who is or has been commissioned and employed as a peace404
officer by the sheriff of any county since January 1, 1966, and405
who has received a certificate attesting to the person's406
satisfactory completion of the peace officer training school as407
required by section 109.77 of the Revised Code and whose primary408
duties are to preserve the peace, protect life and property, and409
enforce the laws of this state; or any person deputized by the410
sheriff of any county and employed pursuant to section 2301.12 of411
the Revised Code as a criminal bailiff or court constable who has412
received a certificate attesting to the person's satisfactory413
completion of the peace officer training school as required by414
section 109.77 of the Revised Code and whose primary duties are to415
preserve the peace, protect life and property, and enforce the416
laws of this state.417

       (BB) "Township constable or police officer in a township418
police department or district" means any person who is419
commissioned and employed as a full-time peace officer pursuant to420
Chapter 505. or 509. of the Revised Code, who has received a421
certificate attesting to the person's satisfactory completion of422
the peace officer training school as required by section 109.77 of423
the Revised Code, and whose primary duties are to preserve the424
peace, protect life and property, and enforce the laws of this425
state.426

       (CC) "Drug agent" means any person who is either of the427
following:428

       (1) Employed full-time as a narcotics agent by a county429
narcotics agency created pursuant to section 307.15 of the Revised430
Code and has received a certificate attesting to the satisfactory431
completion of the peace officer training school as required by432
section 109.77 of the Revised Code;433

       (2) Employed full-time as an undercover drug agent as434
defined in section 109.79 of the Revised Code and is in compliance435
with section 109.77 of the Revised Code.436

       (DD) "Department of public safety enforcement agent" means a437
full-time employee of the department of public safety who is438
designated under section 5502.14 of the Revised Code as an439
enforcement agent and who is in compliance with section 109.77 of440
the Revised Code.441

       (EE) "Natural resources law enforcement staff officer" means442
a full-time employee of the department of natural resources who is443
designated a natural resources law enforcement staff officer under444
section 1501.013 of the Revised Code and is in compliance with445
section 109.77 of the Revised Code.446

       (FF) "Park officer" means a full-time employee of the447
department of natural resources who is designated a park officer448
under section 1541.10 of the Revised Code and is in compliance449
with section 109.77 of the Revised Code.450

       (GG) "Forest officer" means a full-time employee of the451
department of natural resources who is designated a forest officer452
under section 1503.29 of the Revised Code and is in compliance453
with section 109.77 of the Revised Code.454

       (HH) "Preserve officer" means a full-time employee of the455
department of natural resources who is designated a preserve456
officer under section 1517.10 of the Revised Code and is in457
compliance with section 109.77 of the Revised Code.458

       (II) "Wildlife officer" means a full-time employee of the459
department of natural resources who is designated a wildlife460
officer under section 1531.13 of the Revised Code and is in461
compliance with section 109.77 of the Revised Code.462

       (JJ) "State watercraft officer" means a full-time employee of463
the department of natural resources who is designated a state464
watercraft officer under section 1547.521 of the Revised Code and465
is in compliance with section 109.77 of the Revised Code.466

       (KK) "Park district police officer" means a full-time467
employee of a park district who is designated pursuant to section468
511.232 or 1545.13 of the Revised Code and is in compliance with469
section 109.77 of the Revised Code.470

       (LL) "Conservancy district officer" means a full-time471
employee of a conservancy district who is designated pursuant to472
section 6101.75 of the Revised Code and is in compliance with473
section 109.77 of the Revised Code.474

       (MM) "Municipal police officer" means a member of the475
organized police department of a municipal corporation who is476
employed full-time, is in compliance with section 109.77 of the477
Revised Code, and is not a member of the Ohio police and fire478
pension fund.479

       (NN) "Ohio veterans' home police officer" means any person480
who is employed at the Ohio veterans' home as a police officer481
pursuant to section 5907.02 of the Revised Code and is in482
compliance with section 109.77 of the Revised Code.483

       (OO) "Special police officer for a mental health institution"484
means any person who is designated as such pursuant to section485
5119.14 of the Revised Code and is in compliance with section486
109.77 of the Revised Code.487

       (PP) "Special police officer for an institution for the488
mentally retarded and developmentally disabled" means any person489
who is designated as such pursuant to section 5123.13 of the490
Revised Code and is in compliance with section 109.77 of the491
Revised Code.492

       (QQ) "State university law enforcement officer" means any493
person who is employed full-time as a state university law494
enforcement officer pursuant to section 3345.04 of the Revised495
Code and who is in compliance with section 109.77 of the Revised496
Code.497

       (RR) "Hamilton county municipal court bailiff" means a person498
appointed by the clerk of courts of the Hamilton county municipal499
court under division (A)(3) of section 1901.32 of the Revised Code500
who is employed full-time as a bailiff or deputy bailiff, who has501
received a certificate attesting to the person's satisfactory502
completion of the peace officer training school as required by503
division (C) of section 109.77 of the Revised Code, and whose504
primary duties are to preserve the peace, to protect life and505
property, and to enforce the laws of this state.506

       (SS) "House sergeant at arms" means any person appointed by507
the speaker of the house of representatives under division (B)(1)508
of section 101.311 of the Revised Code who has arrest authority509
under division (E)(1) of that section.510

       (TT)(SS) "Assistant house sergeant at arms" means any person511
appointed by the house sergeant at arms under division (C)(1) of512
section 101.311 of the Revised Code.513

       (UU)(TT) "Regional transit authority police officer" means a514
person who is employed full-time as a regional transit authority515
police officer under division (Y) of section 306.35 of the Revised516
Code and is in compliance with section 109.77 of the Revised Code.517

       (UU) "State highway patrol police officer" means a special518
police officer employed full-time and designated by the519
superintendent of the state highway patrol pursuant to section520
5503.09 of the Revised Code or a person serving full-time as a521
special police officer pursuant to that section on a permanent522
basis on October 21, 1997, who is in compliance with section523
109.77 of the Revised Code.524

       (VV) Notwithstanding section 2901.01 of the Revised Code,525
"PERS law enforcement officer" means a sheriff, deputy sheriff,526
township constable or police officer in a township police527
department or district, drug agent, department of public safety528
enforcement agent, natural resources law enforcement staff529
officer, park officer, forest officer, preserve officer, wildlife530
officer, state watercraft officer, park district police officer,531
conservancy district officer, Ohio veterans' home police officer,532
special police officer for a mental health institution, special533
police officer for an institution for the mentally retarded and534
developmentally disabled, state university law enforcement535
officer, Hamilton county municipal court bailiff, or municipal536
police officer, house sergeant at arms, or assistant house537
sergeant at arms,regional transit authority police officer, or538
state highway patrol police officer.539

       (TT)(WW) "Hamilton county municipal court bailiff" means a540
person appointed by the clerk of courts of the Hamilton county541
municipal court under division (A)(3) of section 1901.32 of the542
Revised Code who is employed full-time as a bailiff or deputy543
bailiff, who has received a certificate attesting to the person's544
satisfactory completion of the peace officer training school as545
required by division (D) of section 109.77 of the Revised Code,546
and whose primary duties are to preserve the peace, to protect547
life and property, and to enforce the laws of this state.548

       (VV)(XX) "Fiduciary" means a person who does any of the549
following:550

       (1) Exercises any discretionary authority or control with551
respect to the management of the system or with respect to the552
management or disposition of its assets;553

       (2) Renders investment advice for a fee, direct or indirect,554
with respect to money or property of the system;555

       (3) Has any discretionary authority or responsibility in the556
administration of the system.557

       (WW)(YY) "Actuary" means an individual who satisfies all of558
the following requirements:559

       (1) Is a member of the American academy of actuaries;560

       (2) Is an associate or fellow of the society of actuaries;561

       (3) Has a minimum of five years' experience in providing562
actuarial services to public retirement plans.563

       Sec. 145.19.  (A) Except as provided in division (D) of this564
section, an individual who becomes a member of the public565
employees retirement system on or after the date on which the566
public employees retirement board establishes a plan under section567
145.81 of the Revised Code shall make an election under this568
section. Not later than one hundred eighty days after the date on569
which employment begins, the individual shall elect to participate570
either in the plan described in sections 145.201 to 145.79 of the571
Revised Code or one of the plans established under section 145.81572
of the Revised Code. If a form evidencing an election under this573
section is not on file with the employer at the end of the574
one-hundred-eighty-day period, the individual is deemed to have575
elected to participate in the plan described in sections 145.201576
to 145.79 of the Revised Code.577

       (B) An election under this section shall be made in writing578
on a form provided by the retirement system and filed with the579
employer's personnel officer. Not later than ten days after580
receiving the form evidencing the election, the employer shall581
transmit to the system a copy that includes a statement certifying582
that it is a true and accurate copy of the original.583

       (C) An election under this section shall take effect on the584
date employment began and is irrevocable on receipt by the585
employer.586

       (D) An individual is ineligible to make an election under587
this section if one of the following applies:588

       (1) At the time employment begins, the individual is already589
a member or contributor participating in the plan described in590
sections 145.201 to 145.79 of the Revised Code or a PERS retirant,591
as defined in section 145.38 of the Revised Code.592

       (2) An election to participate in an alternative retirement593
plan under section 3305.05 of the Revised Code is in effect for594
employment covered by the system.595

       (3) The individual is a PERS law enforcement officer.596

       Sec. 145.191.  (A) A member of the public employees597
retirement system, other than a member who is a PERS law598
enforcement officer, who, as of the last day of the month599
immediately preceding the date on which the system establishes a600
plan under section 145.81 of the Revised Code, has less than five601
years of total service credit is eligible to make an election602
under this section.603

       Not later than one hundred eighty days after the day the604
board first establishes one or more plans under section 145.81 of605
the Revised Code, an eligible member may elect to participate in a606
plan established under that section. If an election is not made,607
a member to whom this section applies is deemed to have elected to608
continue participating in the plan described in sections 145.201609
to 145.79 of the Revised Code.610

       (B) An election under this section shall be made in writing611
on a form provided by the system and filed with the system.612

       (C) On receipt of an election under this section, the system613
shall do both of the following:614

       (1) Credit to the account of the member in the defined615
contribution fund the accumulated contributions standing to the616
member's credit in the employees' savings fund;617

       (2) Cancel all service credit and eligibility for any618
payment, benefit, or right under the plan described in sections619
145.201 to 145.79 of the Revised Code.620

       (D) An election under this section shall be irrevocable on621
receipt by the system.622

       Sec. 145.321.  On and after October 1, 1957, all persons in623
receipt of, or who are or become eligible to receive, a monthly624
allowance, pension, or other benefit effective prior to June 29,625
1955, which is payable or becomes payable pursuant to the626
provisions of sections 145.33 to 145.36 and 145.46 of the Revised627
Code, or an allowance payable at any time under an option elected628
by a member and effective prior to that date, shall be paid an629
increased allowance, pension, or benefit as follows:630

       (A) An amount determined by increasing the original631
allowance, pension, or benefit by the following percentages as632
determined by the calendar year in which the allowance, pension,633
or benefit became effective:634

Calendar Year Per Cent 635
Effective of increase 636
1938-39 100 637
1940 94 638
1941 89 639
1942 77 640
1943 70 641
1944 68 642
1945 66 643
1946 55 644
1947 35 645
1948 23 646
1949 25 647
1950 23 648
1951 8 649
1952 4 650
1953 3 651
1954 2 652
Prior to June 29, 1955 2 653

       (B) If the amount of any allowance, pension, or other654
benefit is increased by division (A) of this section to an amount655
less than one hundred ten per cent of the present amount payable656
immediately prior to October 1, 1957, the present amount shall be657
increased by ten per cent.658

       (C) On and after August 1, 1959 the monthly allowance,659
pension, or other benefit effective prior to June 29, 1955,660
(exclusive of any amount receivable monthly by reason of a661
voluntary deposit made for additional annuity), together with the662
supplemental allowance payable pursuant to divisions (A) and (B)663
of this section, shall be increased by twelve per cent.664

       (D) Effective November 1, 1965, the allowances of each665
person who retired on or before June 30, 1955 and is receiving age666
and service or disability benefits under sections 145.32, 145.33,667
145.34, and 145.36 of the Revised Code shall be increased by one668
hundred twenty dollars annually, notwithstanding the final average669
salary limitations in division (F) of section 145.33 and division670
(B) of section 145.36 of the Revised Code.671

       (E) Effective November 1, 1965, the allowances of each672
person who retired after June 30, 1955 and on or before October673
31, 1965 and is receiving age and service ofor disability674
benefits under sections 145.32, 145.33, 145.34, and 145.36 of the675
Revised Code shall be increased by one hundred twenty dollars676
annually, which when added to the allowance in effect on October677
31, 1965, shall not exceed the final average salary limitations678
found in division (F) of section 145.33 and division (B) of679
section 145.36 of the Revised Code, except that the increase shall680
not be less than seventy-two dollars annually.681

       (F) Beginning November 1, 1965, the monthly benefit payable682
under section 145.45 of the Revised Code shall be increased six683
dollars for each survivor beneficiary receiving a benefit on684
October 31, 1965 and for each successor to such benefit.685

       For the purposes of this section: (1) The total increase686
payable per month on or after November 1, 1965 to a retirant or687
beneficiary from one or more state systems shall not exceed the688
ten dollar increase as provided in this division, and (2) in all689
cases involving combined membership and service as provided for690
under section 145.37 of the Revised Code, only those cases which691
are being paid by the public employees retirement system shall be692
calculated under the provisions of this section.693

       On or before August 1, 1982, and on or before the first day694
of August in each year thereafter, the public employees retirement695
board shall certify to the treasurer of state the amount required696
to be paid in the preceding fiscal year under divisions (A) and697
(B) of this section. Upon receipt of this certification, the698
treasurer of state shall pay the amount certified. The amount699
received by the public employees retirement board shall be700
credited to the proper fund from which such additional payments701
are paid.702

       Sec. 145.33.  (A) Except as provided in division (B),or703
(C), or (D) of this section, a member with at least five years of704
total service credit who has attained age sixty, or who has thirty705
years of total Ohio service credit, may apply for age and service706
retirement, which shall consist of:707

       (1) An annuity having a reserve equal to the amount of the708
member's accumulated contributions at that time;709

       (2) A pension equal to the annuity provided by division710
(A)(1) of this section;711

       (3) An additional pension, if the member can qualify for712
prior service, equal to forty dollars multiplied by the number of713
years, and fraction thereof, of such prior and military service714
credit;715

       (4) A basic annual pension equal to one hundred eighty716
dollars if the member has ten or more years of total service717
credit as of October 1, 1956, except that the basic annual pension718
shall not exceed the sum of the annual benefits provided by719
divisions (A)(1), (2), and (3) of this section.720

       (5) When a member retires on age and service retirement, the721
member's total annual single lifetime allowance, including the722
allowances provided in divisions (A)(1), (2), (3), and (4) of this723
section, shall be not less than a base amount adjusted in724
accordance with division (A)(5) of this section and determined by725
multiplying the member's total service credit by the greater of726
the following:727

       (a) Eighty-six dollars;728

       (b) Two and two-tenths per cent of the member's final729
average salary for each of the first thirty years of service plus730
two and one-half per cent of the member's final average salary for731
each subsequent year of service.732

       The allowance shall be adjusted by the factors of attained733
age or years of service to provide the greater amount as734
determined by the following schedule:735

Years of Percentage 736
Attained or Total Service of 737
Birthday Credit Base Amount 738

58 25 75 739
59 26 80 740
60 27 85 741
61 88 742
28 90 743
62 91 744
63 94 745
29 95 746
64 97 747
65 30 or more 100 748

       Members shall vest the right to a benefit in accordance with749
the following schedule, based on the member's attained age by750
September 1, 1976:751

Percentage 752
Attained of 753
Birthday Base Amount 754
66 102 755
67 104 756
68 106 757
69 108 758
70 or more 110 759

       (6) The total annual single lifetime allowance that a member760
shall receive under division (A)(5) of this section shall not761
exceed the lesser of one hundred per cent of the member's final762
average salary or the limit established by section 415 of the763
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,764
as amended.765

       (B)(1) For the purposes of divisions (B) to (F)(H) of this766
section, "total service credit as a PERS law enforcement officer"767
includesand "total service credit as a Hamilton county municipal768
court bailiff" include credit for military service to the extent769
permitted by division (F)(2) of this section and credit for770
service as a police officer or state highway patrol trooper to the771
extent permitted by divisiondivisions (F)(3) and (4) of this772
section.773

       (2) A member who meets the conditions in division (B)(2)(a),774
(b), or (c), (d), or (e) of this section may apply for an age and775
service retirement benefit under this division:776

       (a) Except as provided in division (B)(2)(b) of this section,777
Unless the member has elected to contribute toward a benefit under778
division (B)(2)(b) of this section, the member has attained age779
forty-eight and has at least twenty-five years of total service780
credit as a PERS law enforcement officer and has attained age781
fifty-twowhose primary duties were to preserve the peace, protect782
life and property, and enforce the laws in the member's783
jurisdiction;784

       (b) HasThe member has elected to contribute toward a benefit785
under division (B)(2)(b) of this section, has attained age786
fifty-two, and has at least twenty-five years of total service787
credit as a law enforcement officer while serving as a sheriff,788
deputy sheriff, or township constable or police officer in a789
township police department or district and has attained age790
forty-eightwhose primary duties were to preserve the peace,791
protect life and property, and enforce the laws in the member's792
jurisdiction;793

       (c) The member has attained age fifty-two and has at least794
twenty-five years of total service credit as a PERS law795
enforcement officer, but the member's primary duties were other796
than to preserve the peace, protect life and property, and enforce797
the laws in the member's jurisdiction;798

       (d) The member has attained age fifty-two and has at least799
twenty-five years of total service as a Hamilton county municipal800
court bailiff;801

       (c) Has(e) The member has at least fifteen years of total802
service credit as a PERS law enforcement officer or a Hamilton803
county municipal court bailiff and has attained age sixty-two.804

       (3) A benefit paid under division (B)(2) of this section805
shall consist of an annual single lifetime allowance equal to the806
sum of two and one-half per cent of the member's final average807
salary multiplied by the first twenty-five years of the member's808
total service plus two and one-tenth per cent of the member's809
final average salary multiplied by the number of years of the810
member's total service credit in excess of twenty-five years.811

       (C)(4) A member with at least fifteen years of total service812
credit as a PERS law enforcement officer or a Hamilton county813
municipal court bailiff who voluntarily resigns or is discharged814
for any reason except death, dishonesty, cowardice, intemperate815
habits, or conviction of a felony may apply for an age and service816
retirement benefit, which shall consist of an annual single817
lifetime allowance equal to one and one-half per cent of the818
member's final average salary multiplied by the number of years of819
the member's total service credit. The allowance shall commence820
on the first day of the calendar month following the month in821
which the application is filed with the public employees822
retirement board on or after the attainment by the applicant of823
age fifty-two.824

       (D)(C)(1) A member with at least twenty-five years of total825
service credit as a law enforcement officer other than as a law826
enforcement officer eligible for a benefit under division827
(B)(2)(b) of this section who would be eligible to retire under828
division (B)(2)(b), (c), or (d) of this section had the member829
attained age fifty-two and who voluntarily resigns or is830
discharged for any reason except death, dishonesty, cowardice,831
intemperate habits, or conviction of a felony, on or after the832
date of attaining forty-eight years of age, but before the date of833
attaining fifty-two years of age, may elect to receive a reduced834
benefit as determined by the following schedule:835

Attained Age Reduced Benefit 836

48 75% of the benefit payable under 837
division (B)(3) of this section 838
49 80% of the benefit payable under 839
division (B)(3) of this section 840
50 86% of the benefit payable under 841
division (B)(3) of this section 842
51 93% of the benefit payable under 843
division (B)(3) of this section 844

       (2) If a member elects to receive a reduced benefit after845
attaining age forty-eight the reduced benefit is payable from the846
later of the date of the member's most recent birthday or the date847
the member becomes eligible to receive the reduced benefit.848

       (3) Once a member elects to receive a reduced benefit849
determined by the schedule in division (D)(C)(1) of this section850
and has received a payment, the member may not reelect to change851
that election.852

       (4) If a member who has resigned or been discharged has left853
on deposit the member's accumulated contributions in the854
employees' savings fund and has not elected to receive a reduced855
benefit determined by the schedule in division (D)(C)(1) of this856
section, upon attaining fifty-two years of age, the member shall857
be entitled to receive a benefit computed and paid under division858
(B)(3) of this section.859

       (E)(D) A benefit paid under division (B),or (C), or (D) of860
this section shall not exceed the lesser of ninety per cent of the861
member's final average salary or the limit established by section862
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26863
U.S.C.A. 415, as amended.864

       (E) Not later than one hundred eighty days after the865
effective date of this amendment, a member who on the effective866
date of this amendment is contributing toward a benefit under867
division (B) of this section may elect to contribute toward a868
benefit under division (B)(2)(b) of this section.869

       A person who becomes a member on or after the effective date870
of this amendment may, not later than ninety days after becoming a871
member of the retirement system, make an election to contribute872
under division (B)(2)(b) of this section.873

       (F)(1) A member with service credit as a PERS law874
enforcement officer or a Hamilton county municipal court bailiff875
and other service credit under this chapter may elect one of the876
following:877

       (a) To have all the member's service credit under this878
chapter, including credit for service as a PERS law enforcement879
officer or a Hamilton county municipal court bailiff, used in880
calculating a retirement allowance under division (A) of this881
section if the member qualifies for an allowance under that882
division;883

       (b) If the member qualifies for an allowance under division884
(B)(2)(a) or (c), (C), or (D) of this section, to have the885
member's service credit as a PERS law enforcement officer or886
Hamilton county municipal court bailiff used in calculating a887
benefit under thatthe appropriate division and the member's888
credit for all service other than PERS law enforcement service or889
service as a Hamilton county municipal court bailiff under this890
chapter used in calculating a benefit consisting of a single life891
annuity having a reserve equal to the amount of the member's892
accumulated contributions and an equal amount of the employer's893
contributions;894

       (c) If the member qualifies for an allowance under division895
(B)(2)(b) of this section, to have the member's service credit as896
a law enforcement officer while serving as a sheriff, deputy897
sheriff, or township constable or police officer in a township898
police department or district used in calculating a benefit under899
division (B)(2)(b) of this section and the member's credit for all900
other service under this chapter used in calculating a benefit901
consisting of a single life annuity having a reserve equal to the902
amount of the member's accumulated contributions and an equal903
amount of the employer's contributions.904

       (2) Notwithstanding sections 145.01 and 145.30 of the905
Revised Code, no more than four years of military service credit906
granted under section 145.30 of the Revised Code and five years of907
military service credit purchased under section 145.301 or 145.302908
of the Revised Code shall be used in calculating service as a PERS909
law enforcement officer or Hamilton county municipal court bailiff910
or the total service credit of that person.911

       (3) Only credit for the member's service as a PERS law912
enforcement officer or service credit obtained as a police officer913
or state highway patrol trooper shall be used in computing the914
benefitsbenefit of a member who qualifies for a benefit under915
division (B), (C)(2)(a), (b), or (c), or (D)(4) or division (C) of916
this section for the following:917

       (a) Any person who originally is commissioned and employed918
as a deputy sheriff by the sheriff of any county, or who919
originally is elected sheriff, on or after January 1, 1975;920

       (b) Any deputy sheriff who originally is employed as a921
criminal bailiff or court constable on or after April 16, 1993;922

       (c) Any person who originally is appointed as a township923
constable or police officer in a township police department or924
district on or after January 1, 1981;925

       (d) Any person who originally is employed as a county926
narcotics agent on or after September 26, 1984;927

       (e) Any person who originally is employed as an undercover928
drug agent as defined in section 109.79 of the Revised Code,929
department of public safety enforcement agent who prior to June930
30, 1999, was a liquor control investigator, park officer, forest931
officer, wildlife officer, state watercraft officer, park district932
police officer, conservancy district officer, Ohio veterans' home933
police officer, special police officer for a mental health934
institution, special police officer for an institution for the935
mentally retarded and developmentally disabled, or municipal936
police officer on or after December 15, 1988;937

       (f) Any person who originally is employed as a state938
university law enforcement officer on or after November 6, 1996;939

       (g) Any person who originally is employed as a Hamilton940
county municipal court bailiff on or after November 6, 1996;941

       (h) Any person who is originally employed as a state942
university law enforcement officer by the university of Akron on943
or after September 16, 1998;944

       (i)(h) Any person who originally is employed as a preserve945
officer on or after March 18, 1999;946

       (j)(i) Any person who originally is employed as a natural947
resources law enforcement staff officer on or after March 18,948
1999;949

       (k)(j) Any person who is originally employed as a department950
of public safety enforcement agent on or after June 30, 1999;951

       (l)(k) Any person who is originally employed as a house952
sergeant at arms or assistant house sergeant at arms on or after953
the effective date of this amendmentSeptember 5, 2001;954



       (l)Any person who is originally appointed as a regional956
transit authority police officer or state highway patrol police957
officer on or after the effective date of this amendment. 958

       (4) Only credit for a member's service as a Hamilton county959
municipal court bailiff or service credit obtained as a PERS law960
enforcement officer, police officer, or state highway patrol961
trooper shall be used in computing the benefit of a member who962
qualifies for a benefit under division (B)(2)(d) or (e) or (4) or963
division (C) of this section for any person who originally is964
employed as a Hamilton county municipal court bailiff on or after965
November 6, 1996.966

       (G) Retirement allowances determined under this section967
shall be paid as provided in section 145.46 of the Revised Code.968

       (H) For the purposes of this section, service prior to June969
30, 1999, as a food stamp trafficking agent under former section970
5502.14 of the Revised Code shall be considered service as a PERS971
law enforcement officer.972

       Sec. 145.35.  (A) As used in this section, "on-duty illness973
or injury" means an illness or injury that occurred during or974
resulted from performance of duties under the direct supervision975
of a member's appointing authority.976

       (B) The public employees retirement system shall provide977
disability coverage to each member who has at least five years of978
total service credit and disability coverage for on-duty illness979
or injury to each member who is a PERS law enforcement officer or980
Hamilton county municipal court bailiff, regardless of length of981
service.982

       Not later than October 16, 1992, the public employees983
retirement board shall give each person who is a member on July984
29, 1992, the opportunity to elect disability coverage either985
under section 145.36 of the Revised Code or under section 145.361986
of the Revised Code. The board shall mail notice of the election,987
accompanied by an explanation of the coverage under each of the988
Revised Code sections and a form on which the election is to be989
made, to each member at the member's last known address. The990
board shall also provide the explanation and form to any member on991
request.992

       Regardless of whether the member actually receives notice of993
the right to make an election, a member who fails to file a valid994
election under this section shall be considered to have elected995
disability coverage under section 145.36 of the Revised Code. To996
be valid, an election must be made on the form provided by the997
retirement board, signed by the member, and filed with the board998
not later than one hundred eighty days after the date the notice999
was mailed, or, in the case of a form provided at the request of a1000
member, a date specified by rule of the retirement board. Once1001
made, an election is irrevocable, but if the member ceases to be a1002
member of the retirement system, the election is void. If a1003
person who makes an election under this section also makes an1004
election under section 3307.62 or 3309.39 of the Revised Code, the1005
election made for the system that pays a disability benefit to1006
that person shall govern the benefit.1007

       Disability coverage shall be provided under section 145.3611008
of the Revised Code for persons who become members after July 29,1009
1992, and for members who elect under this division to be covered1010
under section 145.361 of the Revised Code.1011

       The retirement board may adopt rules governing elections made1012
under this division.1013

       (C) Application for a disability benefit may be made by a1014
member, by a person acting in the member's behalf, or by the1015
member's employer, provided the member has disability coverage1016
under section 145.36 or 145.361 of the Revised Code and is not1017
receiving a disability benefit under any other Ohio state or1018
municipal retirement program. Application must be made within two1019
years from the date the member's contributing service terminated,1020
unless the retirement board determines that the member's medical1021
records demonstrate conclusively that at the time the two-year1022
period expired, the member was physically or mentally1023
incapacitated for duty and unable to make an application.1024
Application may not be made by or for any person receiving age and1025
service retirement benefits under section 145.33, 145.331, 145.34,1026
or 145.37 of the Revised Code or any person who, pursuant to1027
section 145.40 of the Revised Code, has been paid the accumulated1028
contributions standing to the credit of the person's individual1029
account in the employees' savings fund. The application shall be1030
made on a form provided by the retirement board.1031

       (D) The benefit payable to any member who is approved for a1032
disability benefit shall become effective on the first day of the1033
month immediately following the later of the following:1034

       (1) The last day for which compensation was paid;1035

       (2) The attainment of eligibility for a disability benefit.1036

       (E) Medical examination of a member who has applied for a1037
disability benefit shall be conducted by a competent disinterested1038
physician or physicians selected by the board to determine whether1039
the member is mentally or physically incapacitated for the1040
performance of duty by a disabling condition either permanent or1041
presumed to be permanent. The disability must have occurred since1042
last becoming a member or have increased since last becoming a1043
member to such extent as to make the disability permanent or1044
presumed to be permanent. A disability is presumed to be1045
permanent if it is expected to last for a continuous period of not1046
less than twelve months following the filing of the application.1047

       If the physician or physicians determine that the member1048
qualifies for a disability benefit, the board concurs with the1049
determination, and the member agrees to medical treatment as1050
specified in division (F) of this section, the member shall1051
receive a disability benefit under section 145.36 or 145.361 of1052
the Revised Code. The action of the board shall be final.1053

       (F) The public employees retirement board shall adopt rules1054
requiring a disability benefit recipient, as a condition of1055
continuing to receive a disability benefit, to agree in writing to1056
obtain any medical treatment recommended by the board's physician1057
and submit medical reports regarding the treatment. If the board1058
determines that a disability benefit recipient is not obtaining1059
the medical treatment or the board does not receive a required1060
medical report, the disability benefit shall be suspended until1061
the treatment is obtained, the report is received by the board, or1062
the board's physician certifies that the treatment is no longer1063
helpful or advisable. Should the recipient's failure to obtain1064
treatment or submit a medical report continue for one year, the1065
recipient's right to the disability benefit shall be terminated as1066
of the effective date of the original suspension.1067

       (G) In the event an employer files an application for a1068
disability benefit as a result of a member having been separated1069
from service because the member is considered to be mentally or1070
physically incapacitated for the performance of the member's1071
present duty, and the physician or physicians selected by the1072
board reports to the board that the member is physically and1073
mentally capable of performing service similar to that from which1074
the member was separated and the board concurs in the report, the1075
board shall so certify to the employer and the employer shall1076
restore the member to the member's previous position and salary or1077
to a similar position and salary.1078

       Sec. 145.40.  (A)(1) Subject to the provisions of section1079
145.57 of the Revised Code and except as provided in division (B)1080
of this section, if a member elects to become exempt from1081
contribution to the public employees retirement system pursuant to1082
section 145.03 of the Revised Code or ceases to be a public1083
employee for any cause other than death, retirement, receipt of a1084
disability benefit, or current employment in a position in which1085
the member has elected to participate in an alternative retirement1086
plan under section 3305.05 of the Revised Code, upon application1087
the public employees retirement board shall pay the member the1088
member's accumulated contributions, plus any applicable amount1089
calculated under section 145.401 of the Revised Code, provided1090
that all the following apply:1091

       (a) Three months have elapsed since the member's public1092
service, other than service exempted from contribution pursuant to1093
section 145.03 of the Revised Code, was terminated;1094

       (b) The member has not returned to public service, other1095
than service exempted from contribution pursuant to section 145.031096
of the Revised Code, during that three-month period;1097

       (c) The member is not a member of the school employees1098
retirement system or the state teachers retirement system.1099

       The payment of such accumulated contributions shall cancel1100
the total service credit of such member in the public employees1101
retirement system.1102

       (2) Notwithstanding(a) Except as provided in division1103
(A)(2)(b) of this section, notwithstanding division (A)(1) of this1104
section, division (B) of section 145.401 of the Revised Code, and1105
the definition of "accumulated contributions" in division (J) of1106
section 145.01 of the Revised Code, the accumulated contributions1107
paid to a member under this division for service as a sheriff,1108
deputy sheriff, or township constable or police officer in a1109
township police department or districtPERS law enforcement1110
officer shall not include interest credited to the member's1111
account under section 145.471 or 145.472 of the Revised Code, nor1112
shall the member be paid any amount calculated under section1113
145.401 of the Revised Code.1114

       (b) Division (A)(2) of this section does not apply if the1115
member was contributing towards a benefit under division1116
(B)(2)(b), (c), or (d) of section 145.33 of the Revised Code.1117

       (3) A member described in division (A)(1) of this section1118
who is married at the time of application for payment and is1119
eligible for age and service retirement under section 145.32,1120
145.33, 145.331, or 145.34 of the Revised Code shall submit with1121
the application a written statement by the member's spouse1122
attesting that the spouse consents to the payment of the member's1123
accumulated contributions. Consent shall be valid only if it is1124
signed and witnessed by a notary public.1125

       The board may waive the requirement of consent if the spouse1126
is incapacitated or cannot be located, or for any other reason1127
specified by the board. Consent or waiver is effective only with1128
regard to the spouse who is the subject of the consent or waiver.1129

       (B) This division applies to any member who is employed in a1130
position in which the member has made an election under section1131
3305.05 of the Revised Code and due to the election ceases to be a1132
public employee for purposes of that position.1133

       Subject to section 145.57 of the Revised Code, the public1134
employees retirement system shall do the following:1135

       (1) On receipt of a certified copy of a form evidencing an1136
election under section 3305.05 of the Revised Code, pay to the1137
appropriate provider, in accordance with section 3305.051 of the1138
Revised Code, the amount described in section 3305.051 of the1139
Revised Code;1140

       (2) If a member has accumulated contributions, in addition1141
to those subject to division (B)(1) of this section, standing to1142
the credit of the member's individual account and is not otherwise1143
employed in a position in which the member is considered a public1144
employee for the purposes of that position, pay, to the provider1145
the member selected pursuant to section 3305.05 of the Revised1146
Code, the member's accumulated contributions. The payment shall1147
be made on the member's application.1148

       (C) Payment of a member's accumulated contributions under 1149
division (B) of this section cancels the member's total service1150
credit in the public employees retirement system. A member whose1151
accumulated contributions are paid to a provider pursuant to1152
division (B) of this section is forever barred from claiming or1153
purchasing service credit under the public employees retirement1154
system for the period of employment attributable to those1155
contributions.1156

       Sec. 145.45.  Except as provided in division (C)(1) of this1157
section, in lieu of accepting the payment of the accumulated1158
account of a member who dies before service retirement, a1159
beneficiary, as determined in this section or section 145.43 of1160
the Revised Code, may elect to forfeit the accumulated1161
contributions and to substitute certain other benefits under1162
division (A) or (B) of this section.1163

       (A) If a deceased member was eligible for a service1164
retirement benefit as provided in section 145.33, 145.331, or1165
145.34 of the Revised Code, a surviving spouse or other sole1166
dependent beneficiary may elect to receive a monthly benefit1167
computed as the joint-survivor benefit designated as "plan D" in1168
section 145.46 of the Revised Code, which the member would have1169
received had the member retired on the last day of the month of1170
death and had the member at that time selected such joint-survivor1171
plan. Payment shall begin with the month subsequent to the1172
member's death, except that a surviving spouse who is less than1173
sixty-five years old may defer receipt of such benefit. Upon1174
receipt, the benefit shall be calculated based upon the spouse's1175
age at the time of first payment, and shall accrue regular1176
interest during the time of deferral.1177

       (B) If a deceased member had, except as provided in division1178
(B)(7) of this section, at least one and one-half years of1179
contributing service credit, with, except as provided in division1180
(B)(7) of this section, at least one-quarter year of contributing1181
service credit within the two and one-half years prior to the date1182
of death, or was receiving at the time of death a disability1183
benefit as provided in section 145.36, 145.361, or 145.37 of the1184
Revised Code, qualified survivors who elect to receive monthly1185
benefits shall receive the greater of the benefits provided in1186
division (B)(1)(a) or (b) and (4) of this section as allocated in1187
accordance with division (B)(5) of this section.1188

(1)(a) Number 1189
of Qualified Or 1190
survivors Annual Benefit as a Per Monthly Benefit 1191
affecting Cent of Decedent's Final shall not be 1192
the benefit Average Salary less than 1193
1 25% $250 1194
2 40  400 1195
3 50  500 1196
4 55  500 1197
5 or more 60  500 1198

(b) Years of Annual Benefit as a Per Cent 1199
Service of Member's Final Average 1200
Salary 1201
20 29% 1202
21 33 1203
22 37 1204
23 41 1205
24 45 1206
25 48 1207
26 51 1208
27 54 1209
28 57 1210
29 or more 60 1211

       (2) Benefits shall begin as qualified survivors meet1212
eligibility requirements as follows:1213

       (a) A qualified spouse is the surviving spouse of the1214
deceased member, who is age sixty-two, or regardless of age if the1215
deceased member had ten or more years of Ohio service credit, or1216
regardless of age if caring for a qualified child, or regardless1217
of age if adjudged physically or mentally incompetent. A spouse1218
of a member who died prior to August 27, 1970, whose eligibility1219
was determined at the member's death, and who is physically or1220
mentally incompetent on or after August 20, 1976, shall be paid1221
the monthly benefit which that person would otherwise receive when1222
qualified by age.1223

       (b) A qualified child is any child of the deceased member1224
who has never been married and to whom one of the following1225
applies:1226

       (i) Is under age eighteen, or under age twenty-two if the1227
child is attending an institution of learning or training pursuant1228
to a program designed to complete in each school year the1229
equivalent of at least two-thirds of the full-time curriculum1230
requirements of such institution and as further determined by1231
board policy;1232

       (ii) Regardless of age, is adjudged physically or mentally1233
incompetent at the time of the member's death.1234

       (c) A qualified parent is a dependent parent aged sixty-five1235
or older or regardless of age if physically or mentally1236
incompetent, a dependent parent whose eligibility was determined1237
by the member's death prior to August 20, 1976, and who is1238
physically or mentally incompetent on or after August 20, 1976,1239
shall be paid the monthly benefit for which that person would1240
otherwise qualify.1241

       (3) "Physically or mentally incompetent" as used in this1242
section may be determined by a court of jurisdiction, or by a1243
physician appointed by the retirement board. Incapability of1244
making a living because of a physically or mentally disabling1245
condition shall meet the qualifications of this division.1246

       (4) Benefits to a qualified survivor shall terminate upon1247
ceasing to meet eligibility requirements as provided in this1248
division, a first marriage, abandonment, adoption, or during1249
active military service. Benefits to a deceased member's1250
surviving spouse that were terminated under a former version of1251
this section that required termination due to remarriage and were1252
not resumed prior to September 16, 1998, shall resume on the first1253
day of the month immediately following receipt by the board of an1254
application on a form provided by the board.1255

       Upon the death of any subsequent spouse who was a member of1256
the public employees retirement system, state teachers retirement1257
system, or school employees retirement system, the surviving1258
spouse of such member may elect to continue receiving benefits1259
under this division, or to receive survivor's benefits, based upon1260
the subsequent spouse's membership in one or more of the systems,1261
for which such surviving spouse is eligible under this section or1262
section 3307.66 or 3309.45 of the Revised Code. If the surviving1263
spouse elects to continue receiving benefits under this division,1264
such election shall not preclude the payment of benefits under1265
this division to any other qualified survivor.1266

       Benefits shall begin or resume on the first day of the month1267
following the attainment of eligibility and shall terminate on the1268
first day of the month following loss of eligibility.1269

       (5)(a) If a benefit is payable under division (B)(1)(a) of1270
this section, benefits to a qualified spouse shall be paid in the1271
amount determined for the first qualifying survivor in division1272
(B)(1)(a) of this section. All other qualifying survivors shall1273
share equally in the benefit or remaining portion thereof.1274

       (b) All qualifying survivors shall share equally in a1275
benefit payable under division (B)(1)(b) of this section, except1276
that if there is a surviving spouse, the surviving spouse shall1277
receive not less than the amount determined for the first1278
qualifying survivor in division (B)(1)(a) of this section.1279

       (6) The beneficiary of a member who is also a member of the1280
state teachers retirement system or of the school employees1281
retirement system, must forfeit the member's accumulated1282
contributions in those systems and in the public employees1283
retirement system, if the beneficiary takes a survivor benefit.1284
Such benefit shall be exclusively governed by section 145.37 of1285
the Revised Code.1286

       (7) The restriction that the deceased member have had at1287
least one and one-half years of contributing service credit, with1288
at least one-quarter year of contributing service within the two1289
and one-half years prior to the date of death, does not apply if1290
the deceased member was contributing toward benefits under1291
division (B) or (C) of section 145.33 of the Revised Code at the1292
time of death.1293

       (C)(1) Regardless of whether the member is survived by a1294
spouse or designated beneficiary, if the public employees1295
retirement system receives notice that a deceased member described1296
in division (A) or (B) of this section has one or more qualified1297
children, all persons who are qualified survivors under division1298
(B) of this section shall receive monthly benefits as provided in1299
division (B) of this section.1300

       If, after determining the monthly benefits to be paid under1301
division (B) of this section, the system receives notice that1302
there is a qualified survivor who was not considered when the1303
determination was made, the system shall, notwithstanding section1304
145.561 of the Revised Code, recalculate the monthly benefits with1305
that qualified survivor included, even if the benefits to1306
qualified survivors already receiving benefits are reduced as a1307
result. The benefits shall be calculated as if the qualified1308
survivor who is the subject of the notice became eligible on the1309
date the notice was received and shall be paid to qualified1310
survivors effective on the first day of the first month following1311
the system's receipt of the notice.1312

       If the retirement system did not receive notice that a1313
deceased member has one or more qualified children prior to making1314
payment under section 145.43 of the Revised Code to a beneficiary1315
as determined by the retirement system, the payment is a full1316
discharge and release of the system from any future claims under1317
this section or section 145.43 of the Revised Code.1318

       (2) If benefits under division (C)(1) of this section to all1319
persons, or to all persons other than a surviving spouse or other1320
sole beneficiary, terminate, there are no children under the age1321
of twenty-two years, and the surviving spouse or beneficiary1322
qualifies for benefits under division (A) of this section, the1323
surviving spouse or beneficiary may elect to receive benefits1324
under division (A) of this section. The benefits shall be1325
effective on the first day of the month immediately following the1326
termination.1327

       (D) The final average salary used in the calculation of a1328
benefit payable pursuant to division (A) or (B) of this section to1329
a survivor or beneficiary of a disability benefit recipient shall1330
be adjusted for each year between the disability benefit's1331
effective date and the recipient's date of death by the lesser of1332
three per cent or the actual average percentage increase in the1333
consumer price index prepared by the United States bureau of labor1334
statistics (U.S. city average for urban wage earners and clerical1335
workers: "all items 1982-84=100").1336

       (E) If the survivor benefits due and paid under this section1337
are in a total amount less than the member's accumulated account1338
that was transferred from the public employees' savings fund to1339
the survivors' benefit fund, then the difference between the total1340
amount of the benefits paid shall be paid to the beneficiary under1341
section 145.43 of the Revised Code.1342

       Sec. 145.49. (A) Notwithstanding section 145.47 of the1343
Revised Code, the:1344

       (1) The public employees retirmentretirement system shall1345
be authorized to calculate the employee contribution rates1346
separately for those public employees contributing toward benefits1347
under division (B), (C), or (D)(2)(b), (c), (d), or (e) of section1348
145.33 of the Revised Code.1349

       (2) Each public employee contributing toward benefits under1350
division (B)(2)(b)(a) of section 145.33 of the Revised Code shall1351
contribute to the employees' savings fund the sum of oneten and1352
one-tenth per cent of the employee's earnable salary and the1353
employee contribution rate calculated for employees contributing1354
toward benefits under division (B)(2)(a) of section 145.33 of the1355
Revised Code, notwithstanding section 145.47 of the Revised Code.1356

       (B) Notwithstanding section 145.48 of the Revised Code, the1357
public employees retirement system shall be authorized to1358
calculate the employer contribution rates separately for those1359
public employees contributing toward benefits under division (B),1360
(C), or (D)(2)(a) of section 145.33 of the Revised Code or under1361
division (B)(2)(b), (c), (d), or (e) of that section, except that1362
the employer contribution rate shall not exceed eighteen and1363
one-tenth per cent of the earnable salaries of those employees.1364

       Sec. 3309.312.  (A) Not later than ninety days after1365
September 16, 1998, a member who, on September 16, 1998, is1366
employed full-time pursuant to section 3345.04 of the Revised Code1367
by the university of Akron as a state university law enforcement1368
officer may elect to transfer to the public employees retirement1369
system in accordance with this section. An election shall be made1370
by giving notice to the school employees retirement system on a1371
form provided by the school employees retirement board and shall1372
be irrevocable.1373

       (B) When a member makes the election described in this1374
section, the school employees retirement system shall notify the1375
public employees retirement system. The school employees1376
retirement system shall transfer all of the member's service1377
credit to the public employees retirement system and shall certify1378
to the public employees retirement system a copy of the member's1379
records of service and contributions. For each year or portion of1380
a year of credit, the school employees retirement system shall1381
transfer to the public employees retirement system all of the1382
following:1383

       (1) An amount equal to the accumulated contributions1384
standing to the member's credit;1385

       (2) An amount equal to the total employer contributions paid1386
on behalf of the member;1387

       (3) Any amount paid by the member or employer to the school1388
employees retirement system for the purchase of service credit.1389

       At the request of the public employees retirement system, the1390
employer of a member who makes an election under this section1391
shall certify to the public employees retirement system the1392
member's salary.1393

       (C) A member who elects to transfer to the public employees1394
retirement system under this section shall make contributions and1395
receive benefits in accordance with divisions (B) to (G)(F) of1396
section 145.33 of the Revised Code.1397

       (D) A member who fails to make an election in accordance1398
with this section shall remain a member of the school employees1399
retirement system.1400

       Section 2.  That existing sections 145.01, 145.19, 145.191,1401
145.321, 145.33, 145.35, 145.40, 145.45, 145.49, and 3309.312 of1402
the Revised Code are hereby repealed.1403

       Section 3.  As used in this section, "regional transit1404
authority police officer" and "state highway patrol police1405
officer" have the same meanings as in section 145.01 of the1406
Revised Code, as amended by this act.1407

       Not later than ninety days after the effective date of this1408
act, each regional transit authority police officer and state1409
highway patrol police officer who is a member of the Public1410
Employees Retirement System shall indicate to the system, on a1411
form supplied by the system, a choice of whether to receive1412
benefits under division (A) of section 145.33 of the Revised Code1413
or under division (B) of that section.1414