REPRESENTATIVES Schuring, Hollister, Ogg, Boccieri, Barrett, Schneider, Flowers, DeWine

To amend sections 145.01, 145.19, 145.191, 145.321,

1

145.33, 145.35, 145.40, 145.45, 145.49, and

2

3309.312 of the Revised Code to permit certain

3

Public Employees Retirement System (PERS) members

4

with at least 25 years of law enforcement service

5

credit to retire with full benefits at age 48 and

6

increase the employee contribution rate for those

7

members, to include regional transit authority and

8

highway patrol police officers as law enforcement

9

officers for PERS purposes, and to make survivors

10

of PERS law enforcement officers eligible for

11

benefits regardless of the length of the officer's

12

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 the	15
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 the	19
state or any county, township, municipal corporation, park	20
district, conservancy district, sanitary district, health	21
district, metropolitan housing authority, state retirement board,	22
Ohio historical society, public library, county law library, union	23
cemetery, joint hospital, institutional commissary, state	24
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 legislative	27
authority of any of the units of local government named in	28
division (A)(1) of this section, or employed and paid in whole or	29
in part by the state or any of the authorities named in division	30
(A)(1) of this section in any capacity not covered by section	31
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	32

(2) A person who is a member of the public employees	33
retirement system and who continues to perform the same or similar	34
duties under the direction of a contractor who has contracted to	35
take over what before the date of the contract was a publicly	36
operated function. The governmental unit with which the contract	37
has been made shall be deemed the employer for the purposes of	38
administering this chapter.	39

(3) Any person who is an employee of a public employer,	40
notwithstanding that the person's compensation for that employment	41
is derived from funds of a person or entity other than the	42
employer. Credit for such service shall be included as total	43
service credit, provided that the employee makes the payments	44
required by this chapter, and the employer makes the payments	45
required by sections 145.48 and 145.51 of the Revised Code.	46

(4) A person who elects in accordance with section 145.015	47
of the Revised Code to remain a contributing member of the public	48
employees retirement system.	49

In all cases of doubt, the public employees retirement board	50
shall determine whether any person is a public employee, and its	51
decision is final.	52

(B) "Member" means any public employee, other than a public	53
employee excluded or exempted from membership in the retirement	54
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 PERS	56
retirant who becomes a member under division (C) of section 145.38	57
of the Revised Code. "Member" also includes a disability benefit	58
recipient.	59

(C) "Head of the department" means the elective or appointive	60
head of the several executive, judicial, and administrative	61
departments, institutions, boards, and commissions of the state	62
and local government as the same are created and defined by the	63
laws of this state or, in case of a charter government, by that	64
charter.	65

(D) "Employer" or "public employer" means the state or any	66
county, township, municipal corporation, park district,	67
conservancy district, sanitary district, health district,	68
metropolitan housing authority, state retirement board, Ohio	69
historical society, public library, county law library, union	70
cemetery, joint hospital, institutional commissary, state medical	71
college, state university, or board, bureau, commission, council,	72
committee, authority, or administrative body as the same are, or	73
have been, created by action of the general assembly or by the	74
legislative authority of any of the units of local government	75
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 employee	79
rendered before January 1, 1935, and all service as an employee of	80
any employer who comes within the state teachers retirement system	81
or of the school employees retirement system or of any other	82
retirement system established under the laws of this state	83
rendered prior to January 1, 1935, provided that if the employee	84
claiming the service was employed in any capacity covered by that	85
other system after that other system was established, credit for	86
the service may be allowed by the public employees retirement	87
system only when the employee has made payment, to be computed on	88
the salary earned from the date of appointment to the date	89
membership was established in the public employees retirement	90
system, at the rate in effect at the time of payment, and the	91
employer has made payment of the corresponding full liability as	92
provided by section 145.44 of the Revised Code. "Prior service"	93
also means all service credited for active duty with the armed	94
forces of the United States as provided in section 145.30 of the	95
Revised Code.	96

If an employee who has been granted prior service credit by	97
the public employees retirement system for service rendered prior	98
to January 1, 1935, as an employee of a board of education	99
establishes, before retirement, one year or more of contributing	100
service in the state teachers retirement system or school	101
employees retirement system, then the prior service ceases to be	102
the liability of this system.	103

If the board determines that a position of any member in any	104
calendar year prior to January 1, 1935, was a part-time position,	105
the board shall determine what fractional part of a year's credit	106
shall be allowed by the following formula:	107

(1) When the member has been either elected or appointed to	108
an office the term of which was two or more years and for which an	109
annual salary is established, the fractional part of the year's	110
credit shall be computed as follows:	111

First, when the member's annual salary is one thousand	112
dollars or less, the service credit for each such calendar year	113
shall be forty per cent of a year.	114

Second, for each full one hundred dollars of annual salary	115
above one thousand dollars, the member's service credit for each	116
such calendar year shall be increased by two and one-half per	117
cent.	118

(2) When the member is paid on a per diem basis, the service	119
credit for any single year of the service shall be determined by	120
using the number of days of service for which the compensation was	121
received in any such year as a numerator and using two hundred	122
fifty days as a denominator.	123

(3) When the member is paid on an hourly basis, the service	124
credit for any single year of the service shall be determined by	125
using the number of hours of service for which the compensation	126
was received in any such year as a numerator and using two	127
thousand hours as a denominator.	128

(F) "Contributor" means any person who has an account in the	129
employees' savings fund created by section 145.23 of the Revised	130
Code. When used in the sections listed in division (B) of section	131
145.82 of the Revised Code, "contributor" includes any person	132
participating in a plan established under section 145.81 of the	133
Revised Code.	134

(G) "Beneficiary" or "beneficiaries" means the estate or a	135
person or persons who, as the result of the death of a member,	136
contributor, or retirant, qualify for or are receiving some right	137
or benefit under this chapter.	138

(H)(1) "Total service credit," except as provided in section	139
145.37 of the Revised Code, means all service credited to a member	140
of the retirement system since last becoming a member, including	141
restored service credit as provided by section 145.31 of the	142
Revised Code; credit purchased under sections 145.293 and 145.299	143
of the Revised Code; all the member's prior service credit; all	144
the member's military service credit computed as provided in this	145
chapter; all service credit established pursuant to section	146
145.297 of the Revised Code; and any other service credited under	147
this chapter. In addition, "total service credit" includes any	148
period, not in excess of three years, during which a member was	149
out of service and receiving benefits under Chapters 4121. and	150
4123. of the Revised Code. For the exclusive purpose of	151
satisfying the service credit requirement and of determining	152
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 more	154
years of total service credit" means sixty or more calendar months	155
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 a	159
municipal corporation that formerly operated its own retirement	160
plan for its employees or a part of its employees, provided that	161
all employees of that municipal retirement plan who have eighteen	162
or more months of such employment, upon establishing membership in	163
the public employees retirement system, shall make a payment of	164
the contributions they would have paid had they been members of	165
this system for the eighteen months of employment preceding the	166
date membership was established. When that payment has been made	167
by all such employee members, a corresponding payment shall be	168
paid into the employers' accumulation fund by that municipal	169
corporation as the employer of the employees.	170

(3) Where a member also is a member of the state teachers	171
retirement system or the school employees retirement system, or	172
both, except in cases of retirement on a combined basis pursuant	173
to section 145.37 of the Revised Code or as provided in section	174
145.383 of the Revised Code, service credit for any period shall	175
be credited on the basis of the ratio that contributions to the	176
public employees retirement system bear to total contributions in	177
all state retirement systems.	178

(4) Not more than one year of credit may be given for any	179
period of twelve months.	180

(5) "Ohio service credit" means credit for service that was	181
rendered to the state or any of its political subdivisions or any	182
employer.	183

(I) "Regular interest" means interest at any rates for the	184
respective funds and accounts as the public employees retirement	185
board may determine from time to time.	186

(J) "Accumulated contributions" means the sum of all amounts	187
credited to a contributor's individual account in the employees'	188
savings fund together with any interest credited to the	189
contributor's account under section 145.471 or 145.472 of the	190
Revised Code.	191

(K)(1) "Final average salary" means the quotient obtained by	192
dividing by three the sum of the three full calendar years of	193
contributing service in which the member's earnable salary was	194
highest, except that if the member has a partial year of	195
contributing service in the year the member's employment	196
terminates and the member's earnable salary for the partial year	197
is higher than for any comparable period in the three years, the	198
member's earnable salary for the partial year shall be substituted	199
for the member's earnable salary for the comparable period during	200
the three years in which the member's earnable salary was lowest.	201

(2) If a member has less than three years of contributing	202
service, the member's final average salary shall be the member's	203
total earnable salary divided by the total number of years,	204
including any fraction of a year, of the member's contributing	205
service.	206

(3) For the purpose of calculating benefits payable to a	207
member qualifying for service credit under division (Z) of this	208
section, "final average salary" means the total earnable salary on	209
which contributions were made divided by the total number of years	210
during which contributions were made, including any fraction of a	211
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 from	214
contributions made by a contributor and paid from the annuity and	215
pension reserve fund as provided in this chapter. All annuities	216
shall be paid in twelve equal monthly installments.	217

(M) "Annuity reserve" means the present value, computed upon	218
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 benefit	220
in lieu of any annuity, granted to a retirant as provided in this	221
chapter.	222

(N)(1) "Disability retirement" means retirement as provided	223
in section 145.36 of the Revised Code.	224

(2) "Disability allowance" means an allowance paid on account	225
of disability under section 145.361 of the Revised Code.	226

(3) "Disability benefit" means a benefit paid as disability	227
retirement under section 145.36 of the Revised Code, as a	228
disability allowance under section 145.361 of the Revised Code, or	229
as a disability benefit under section 145.37 of the Revised Code.	230

(4) "Disability benefit recipient" means a member who is	231
receiving a disability benefit.	232

(O) "Age and service retirement" means retirement as provided	233
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of	234
the Revised Code.	235

(P) "Pensions" means annual payments for life derived from	236
contributions made by the employer that at the time of retirement	237
are credited into the annuity and pension reserve fund from the	238
employers' accumulation fund and paid from the annuity and pension	239
reserve fund as provided in this chapter. All pensions shall be	240
paid in twelve equal monthly installments.	241

(Q) "Retirement allowance" means the pension plus that	242
portion of the benefit derived from contributions made by the	243
member.	244

(R)(1) Except as otherwise provided in division (R) of this	245
section, "earnable salary" means all salary, wages, and other	246
earnings paid to a contributor by reason of employment in a	247
position covered by the retirement system. The salary, wages, and	248
other earnings shall be determined prior to determination of the	249
amount required to be contributed to the employees' savings fund	250
under section 145.47 of the Revised Code and without regard to	251
whether any of the salary, wages, or other earnings are treated as	252
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 used	256
by the contributor;	257

(b) Payments made by the employer for the conversion of sick	258
leave, personal leave, and vacation leave accrued, but not used if	259
the payment is made during the year in which the leave is accrued,	260
except that payments made pursuant to section 124.383 or 124.386	261
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 the	264
retirement board by the employer or the head of the department	265
that employs the contributor;	266

(d) Fees and commissions paid under section 507.09 of the	267
Revised Code;	268

(e) Payments that are made under a disability leave program	269
sponsored by the employer and for which the employer is required	270
by section 145.296 of the Revised Code to make periodic employer	271
and employee contributions;	272

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	273
this section.	274

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

275

(a) Fees and commissions, other than those paid under	276
section 507.09 of the Revised Code, paid as sole compensation for	277
personal services and fees and commissions for special services	278
over and above services for which the contributor receives a	279
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 or	283
the contributor's family, or amounts paid by the employer to the	284
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 the	287
employer's property or equipment, or amounts paid by the employer	288
to the contributor in lieu of providing the incidental benefits;	289

(d) Reimbursement for job-related expenses authorized by the	290
employer, including moving and travel expenses and expenses	291
related to professional development;	292

(e) Payments for accrued but unused sick leave, personal	293
leave, or vacation that are made at any time other than in the	294
year in which the sick leave, personal leave, or vacation was	295
accrued;	296

(f) Payments made to or on behalf of a contributor that are	297
in excess of the annual compensation that may be taken into	298
account by the retirement system under division (a)(17) of section	299
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	300
U.S.C.A. 401(a)(17), as amended;	301

(g) Payments made under division (B) or (D) of section	302
5923.05 of the Revised Code or Section 4 of Substitute Senate Bill	303
No. 3 of the 119th general assembly;	304

(h) Anything of value received by the contributor that is	305
based on or attributable to retirement or an agreement to retire,	306
except that payments made on or before January 1, 1989, that are	307
based on or attributable to an agreement to retire shall be	308
included in earnable salary if both of the following apply:	309

(i) The payments are made in accordance with contract	310
provisions that were in effect prior to January 1, 1986;	311

(ii) The employer pays the retirement system an amount	312
specified by the retirement board equal to the additional	313
liability resulting from the payments.	314

(3) The retirement board shall determine by rule whether any	315
compensation not enumerated in division (R) of this section is	316
earnable salary, and its decision shall be final.	317

(S) "Pension reserve" means the present value, computed upon	318
the basis of the mortality and other tables adopted by the board,	319
of all payments to be made on account of any retirement allowance	320
or benefit in lieu of any retirement allowance, granted to a	321
member or beneficiary under this chapter.	322

(T)(1) "Contributing service" means all service credited to a	323
member of the system since January 1, 1935, for which	324
contributions are made as required by sections 145.47, 145.48, and	325
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 is	328
two hundred fifty dollars or more, allow one month's credit.	329

(b) For each month for which the member's earnable salary is	330
less than two hundred fifty dollars, allow a fraction of a month's	331
credit. The numerator of this fraction shall be the earnable	332
salary during the month, and the denominator shall be two hundred	333
fifty dollars, except that if the member's annual earnable salary	334
is less than six hundred dollars, the member's credit shall not be	335
reduced below twenty per cent of a year for a calendar year of	336
employment during which the member worked each month. Division	337
(T)(1)(b) of this section shall not reduce any credit earned	338
before January 1, 1985.	339

(2) Notwithstanding division (T)(1) of this section, an	340
elected official who prior to January 1, 1980, was granted a full	341
year of credit for each year of service as an elected official	342
shall be considered to have earned a full year of credit for each	343
year of service regardless of whether the service was full-time or	344
part-time. The public employees retirement board has no authority	345
to reduce the credit.	346

(U) "State retirement board" means the public employees	347
retirement board, the school employees retirement board, or the	348
state teachers retirement board.	349

(V) "Retirant" means any former member who retires and is	350
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 an	353
employer as determined under section 145.48 of the Revised Code.	354

(X) "Public service terminates" means the last day for which	355
a public employee is compensated for services performed for an	356
employer or the date of the employee's death, whichever occurs	357
first.	358

(Y) When a member has been elected or appointed to an	359
office, the term of which is two or more years, for which an	360
annual salary is established, and in the event that the salary of	361
the office is increased and the member is denied the additional	362
salary by reason of any constitutional provision prohibiting an	363
increase in salary during a term of office, the member may elect	364
to have the amount of the member's contributions calculated upon	365
the basis of the increased salary for the office. At the member's	366
request, the board shall compute the total additional amount the	367
member would have contributed, or the amount by which each of the	368
member's contributions would have increased, had the member	369
received the increased salary for the office the member holds. If	370
the member elects to have the amount by which the member's	371
contribution would have increased withheld from the member's	372
salary, the member shall notify the employer, and the employer	373
shall make the withholding and transmit it to the retirement	374
system. A member who has not elected to have that amount withheld	375
may elect at any time to make a payment to the retirement system	376
equal to the additional amount the member's contribution would	377
have increased, plus interest on that contribution, compounded	378
annually at a rate established by the board and computed from the	379
date on which the last contribution would have been withheld from	380
the member's salary to the date of payment. A member may make a	381
payment for part of the period for which the increased	382
contribution was not withheld, in which case the interest shall be	383
computed from the date the last contribution would have been	384
withheld for the period for which the payment is made. Upon the	385
payment of the increased contributions as provided in this	386
division, the increased annual salary as provided by law for the	387
office for the period for which the member paid increased	388
contributions thereon shall be used in determining the member's	389
earnable salary for the purpose of computing the member's final	390
average salary.	391

(Z) "Five years of service credit," for the exclusive purpose	392
of satisfying the service credit requirements and of determining	393
eligibility for benefits under section 145.33 of the Revised Code,	394
means employment covered under this chapter or under a former	395
retirement plan operated, recognized, or endorsed by the employer	396
prior to coverage under this chapter or under a combination of the	397
coverage.	398

(AA) "Deputy sheriff" means any person who is commissioned	399
and employed as a full-time peace officer by the sheriff of any	400
county, and has been so employed since on or before December 31,	401
1965, and whose primary duties are to preserve the peace, to	402
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 peace	404
officer by the sheriff of any county since January 1, 1966, and	405
who has received a certificate attesting to the person's	406
satisfactory completion of the peace officer training school as	407
required by section 109.77 of the Revised Code and whose primary	408
duties are to preserve the peace, protect life and property, and	409
enforce the laws of this state; or any person deputized by the	410
sheriff of any county and employed pursuant to section 2301.12 of	411
the Revised Code as a criminal bailiff or court constable who has	412
received a certificate attesting to the person's satisfactory	413
completion of the peace officer training school as required by	414
section 109.77 of the Revised Code and whose primary duties are to	415
preserve the peace, protect life and property, and enforce the	416
laws of this state.	417

(BB) "Township constable or police officer in a township	418
police department or district" means any person who is	419
commissioned and employed as a full-time peace officer pursuant to	420
Chapter 505. or 509. of the Revised Code, who has received a	421
certificate attesting to the person's satisfactory completion of	422
the peace officer training school as required by section 109.77 of	423
the Revised Code, and whose primary duties are to preserve the	424
peace, protect life and property, and enforce the laws of this	425
state.	426

(CC) "Drug agent" means any person who is either of the	427
following:	428

(1) Employed full-time as a narcotics agent by a county	429
narcotics agency created pursuant to section 307.15 of the Revised	430
Code and has received a certificate attesting to the satisfactory	431
completion of the peace officer training school as required by	432
section 109.77 of the Revised Code;	433

(2) Employed full-time as an undercover drug agent as	434
defined in section 109.79 of the Revised Code and is in compliance	435
with section 109.77 of the Revised Code.	436

(DD) "Department of public safety enforcement agent" means a	437
full-time employee of the department of public safety who is	438
designated under section 5502.14 of the Revised Code as an	439
enforcement agent and who is in compliance with section 109.77 of	440
the Revised Code.	441

(EE) "Natural resources law enforcement staff officer" means	442
a full-time employee of the department of natural resources who is	443
designated a natural resources law enforcement staff officer under	444
section 1501.013 of the Revised Code and is in compliance with	445
section 109.77 of the Revised Code.	446

(FF) "Park officer" means a full-time employee of the	447
department of natural resources who is designated a park officer	448
under section 1541.10 of the Revised Code and is in compliance	449
with section 109.77 of the Revised Code.	450

(GG) "Forest officer" means a full-time employee of the	451
department of natural resources who is designated a forest officer	452
under section 1503.29 of the Revised Code and is in compliance	453
with section 109.77 of the Revised Code.	454

(HH) "Preserve officer" means a full-time employee of the	455
department of natural resources who is designated a preserve	456
officer under section 1517.10 of the Revised Code and is in	457
compliance with section 109.77 of the Revised Code.	458

(II) "Wildlife officer" means a full-time employee of the	459
department of natural resources who is designated a wildlife	460
officer under section 1531.13 of the Revised Code and is in	461
compliance with section 109.77 of the Revised Code.	462

(JJ) "State watercraft officer" means a full-time employee of	463
the department of natural resources who is designated a state	464
watercraft officer under section 1547.521 of the Revised Code and	465
is in compliance with section 109.77 of the Revised Code.	466

(KK) "Park district police officer" means a full-time	467
employee of a park district who is designated pursuant to section	468
511.232 or 1545.13 of the Revised Code and is in compliance with	469
section 109.77 of the Revised Code.	470

(LL) "Conservancy district officer" means a full-time	471
employee of a conservancy district who is designated pursuant to	472
section 6101.75 of the Revised Code and is in compliance with	473
section 109.77 of the Revised Code.	474

(MM) "Municipal police officer" means a member of the	475
organized police department of a municipal corporation who is	476
employed full-time, is in compliance with section 109.77 of the	477
Revised Code, and is not a member of the Ohio police and fire	478
pension fund.	479

(NN) "Ohio veterans' home police officer" means any person	480
who is employed at the Ohio veterans' home as a police officer	481
pursuant to section 5907.02 of the Revised Code and is in	482
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 section	485
5119.14 of the Revised Code and is in compliance with section	486
109.77 of the Revised Code.	487

(PP) "Special police officer for an institution for the	488
mentally retarded and developmentally disabled" means any person	489
who is designated as such pursuant to section 5123.13 of the	490
Revised Code and is in compliance with section 109.77 of the	491
Revised Code.	492

(QQ) "State university law enforcement officer" means any	493
person who is employed full-time as a state university law	494
enforcement officer pursuant to section 3345.04 of the Revised	495
Code and who is in compliance with section 109.77 of the Revised	496
Code.	497

(RR) "Hamilton county municipal court bailiff" means a person	498
appointed by the clerk of courts of the Hamilton county municipal	499
court under division (A)(3) of section 1901.32 of the Revised Code	500
who is employed full-time as a bailiff or deputy bailiff, who has	501
received a certificate attesting to the person's satisfactory	502
completion of the peace officer training school as required by	503
division (C) of section 109.77 of the Revised Code, and whose	504
primary duties are to preserve the peace, to protect life and	505
property, and to enforce the laws of this state.	506

(SS)"Regional transit authority police officer" means a	507
person who is employed full-time as a regional transit authority	508
police officer under division (Y) of section 306.35 of the Revised	509
Code and is in compliance with section 109.77 of the Revised Code.	510

(SS) "State highway patrol police officer" means a special	511
police officer employed full-time and designated by the	512
superintendent of the state highway patrol pursuant to section	513
5503.09 of the Revised Code or a person serving full-time as a	514
special police officer pursuant to that section on a permanent	515
basis on October 21, 1997, who is in compliance with section	516
109.77 of the Revised Code.	517

(TT) Notwithstanding section 2901.01 of the Revised Code,	518
"PERS law enforcement officer" means a sheriff, deputy sheriff,	519
township constable or police officer in a township police	520
department or district, drug agent, department of public safety	521
enforcement agent, natural resources law enforcement staff	522
officer, park officer, forest officer, preserve officer, wildlife	523
officer, state watercraft officer, park district police officer,	524
conservancy district officer, Ohio veterans' home police officer,	525
special police officer for a mental health institution, special	526
police officer for an institution for the mentally retarded and	527
developmentally disabled, state university law enforcement	528
officer, Hamilton county municipal court bailiff, or municipal	529
police officer,regional transit authority police officer, or	530
state highway patrol police officer.	531

(TT)(UU) "Hamilton county municipal court bailiff" means a	532
person appointed by the clerk of courts of the Hamilton county	533
municipal court under division (A)(3) of section 1901.32 of the	534
Revised Code who is employed full-time as a bailiff or deputy	535
bailiff, who has received a certificate attesting to the person's	536
satisfactory completion of the peace officer training school as	537
required by division (D) of section 109.77 of the Revised Code,	538
and whose primary duties are to preserve the peace, to protect	539
life and property, and to enforce the laws of this state.	540

(VV) "Fiduciary" means a person who does any of the	541
following:	542

(1) Exercises any discretionary authority or control with	543
respect to the management of the system or with respect to the	544
management or disposition of its assets;	545

(2) Renders investment advice for a fee, direct or indirect,	546
with respect to money or property of the system;	547

(3) Has any discretionary authority or responsibility in the	548
administration of the system.	549

(UU)(WW) "Actuary" means an individual who satisfies all of	550
the following requirements:	551

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

552

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

553

(3) Has a minimum of five years' experience in providing	554
actuarial services to public retirement plans.	555

Sec. 145.19.  (A) Except as provided in division (D) of this	556
section, an individual who becomes a member of the public	557
employees retirement system on or after the date on which the	558
public employees retirement board establishes a plan under section	559
145.81 of the Revised Code shall make an election under this	560
section. Not later than one hundred eighty days after the date on	561
which employment begins, the individual shall elect to participate	562
either in the plan described in sections 145.201 to 145.79 of the	563
Revised Code or one of the plans established under section 145.81	564
of the Revised Code. If a form evidencing an election under this	565
section is not on file with the employer at the end of the	566
one-hundred-eighty-day period, the individual is deemed to have	567
elected to participate in the plan described in sections 145.201	568
to 145.79 of the Revised Code.	569

(B) An election under this section shall be made in writing	570
on a form provided by the retirement system and filed with the	571
employer's personnel officer. Not later than ten days after	572
receiving the form evidencing the election, the employer shall	573
transmit to the system a copy that includes a statement certifying	574
that it is a true and accurate copy of the original.	575

(C) An election under this section shall take effect on the	576
date employment began and is irrevocable on receipt by the	577
employer.	578

(D) An individual is ineligible to make an election under	579
this section if one of the following applies:	580

(1) At the time employment begins, the individual is already	581
a member or contributor participating in the plan described in	582
sections 145.201 to 145.79 of the Revised Code or a PERS retirant,	583
as defined in section 145.38 of the Revised Code.	584

(2) An election to participate in an alternative retirement	585
plan under section 3305.05 of the Revised Code is in effect for	586
employment covered by the system.	587

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

588

Sec. 145.191.  (A) A member of the public employees	589
retirement system, other than a member who is a PERS law	590
enforcement officer, who, as of the last day of the month	591
immediately preceding the date on which the system establishes a	592
plan under section 145.81 of the Revised Code, has less than five	593
years of total service credit is eligible to make an election	594
under this section.	595

Not later than one hundred eighty days after the day the	596
board first establishes one or more plans under section 145.81 of	597
the Revised Code, an eligible member may elect to participate in a	598
plan established under that section. If an election is not made,	599
a member to whom this section applies is deemed to have elected to	600
continue participating in the plan described in sections 145.201	601
to 145.79 of the Revised Code.	602

(B) An election under this section shall be made in writing	603
on a form provided by the system and filed with the system.	604

(C) On receipt of an election under this section, the system	605
shall do both of the following:	606

(1) Credit to the account of the member in the defined	607
contribution fund the accumulated contributions standing to the	608
member's credit in the employees' savings fund;	609

(2) Cancel all service credit and eligibility for any	610
payment, benefit, or right under the plan described in sections	611
145.201 to 145.79 of the Revised Code.	612

(D) An election under this section shall be irrevocable on	613
receipt by the system.	614

Sec. 145.321.  On and after October 1, 1957, all persons in	615
receipt of, or who are or become eligible to receive, a monthly	616
allowance, pension, or other benefit effective prior to June 29,	617
1955, which is payable or becomes payable pursuant to the	618
provisions of sections 145.33 to 145.36 and 145.46 of the Revised	619
Code, or an allowance payable at any time under an option elected	620
by a member and effective prior to that date, shall be paid an	621
increased allowance, pension, or benefit as follows:	622

(A) An amount determined by increasing the original	623
allowance, pension, or benefit by the following percentages as	624
determined by the calendar year in which the allowance, pension,	625
or benefit became effective:	626

(B) If the amount of any allowance, pension, or other	646
benefit is increased by division (A) of this section to an amount	647
less than one hundred ten per cent of the present amount payable	648
immediately prior to October 1, 1957, the present amount shall be	649
increased by ten per cent.	650

(C) On and after August 1, 1959 the monthly allowance,	651
pension, or other benefit effective prior to June 29, 1955,	652
(exclusive of any amount receivable monthly by reason of a	653
voluntary deposit made for additional annuity), together with the	654
supplemental allowance payable pursuant to divisions (A) and (B)	655
of this section, shall be increased by twelve per cent.	656

(D) Effective November 1, 1965, the allowances of each	657
person who retired on or before June 30, 1955 and is receiving age	658
and service or disability benefits under sections 145.32, 145.33,	659
145.34, and 145.36 of the Revised Code shall be increased by one	660
hundred twenty dollars annually, notwithstanding the final average	661
salary limitations in division (F) of section 145.33 and division	662
(B) of section 145.36 of the Revised Code.	663

(E) Effective November 1, 1965, the allowances of each	664
person who retired after June 30, 1955 and on or before October	665
31, 1965 and is receiving age and service ofor disability	666
benefits under sections 145.32, 145.33, 145.34, and 145.36 of the	667
Revised Code shall be increased by one hundred twenty dollars	668
annually, which when added to the allowance in effect on October	669
31, 1965, shall not exceed the final average salary limitations	670
found in division (F) of section 145.33 and division (B) of	671
section 145.36 of the Revised Code, except that the increase shall	672
not be less than seventy-two dollars annually.	673

(F) Beginning November 1, 1965, the monthly benefit payable	674
under section 145.45 of the Revised Code shall be increased six	675
dollars for each survivor beneficiary receiving a benefit on	676
October 31, 1965 and for each successor to such benefit.	677

For the purposes of this section: (1) The total increase	678
payable per month on or after November 1, 1965 to a retirant or	679
beneficiary from one or more state systems shall not exceed the	680
ten dollar increase as provided in this division, and (2) in all	681
cases involving combined membership and service as provided for	682
under section 145.37 of the Revised Code, only those cases which	683
are being paid by the public employees retirement system shall be	684
calculated under the provisions of this section.	685

On or before August 1, 1982, and on or before the first day	686
of August in each year thereafter, the public employees retirement	687
board shall certify to the treasurer of state the amount required	688
to be paid in the preceding fiscal year under divisions (A) and	689
(B) of this section. Upon receipt of this certification, the	690
treasurer of state shall pay the amount certified. The amount	691
received by the public employees retirement board shall be	692
credited to the proper fund from which such additional payments	693
are paid.	694

Sec. 145.33.  (A) Except as provided in division (B),or	695
(C), or (D) of this section, a member with at least five years of	696
total service credit who has attained age sixty, or who has thirty	697
years of total Ohio service credit, may apply for age and service	698
retirement, which shall consist of:	699

(1) An annuity having a reserve equal to the amount of the	700
member's accumulated contributions at that time;	701

(2) A pension equal to the annuity provided by division	702
(A)(1) of this section;	703

(3) An additional pension, if the member can qualify for	704
prior service, equal to forty dollars multiplied by the number of	705
years, and fraction thereof, of such prior and military service	706
credit;	707

(4) A basic annual pension equal to one hundred eighty	708
dollars if the member has ten or more years of total service	709
credit as of October 1, 1956, except that the basic annual pension	710
shall not exceed the sum of the annual benefits provided by	711
divisions (A)(1), (2), and (3) of this section.	712

(5) When a member retires on age and service retirement, the	713
member's total annual single lifetime allowance, including the	714
allowances provided in divisions (A)(1), (2), (3), and (4) of this	715
section, shall be not less than a base amount adjusted in	716
accordance with division (A)(5) of this section and determined by	717
multiplying the member's total service credit by the greater of	718
the following:	719

(a) Eighty-six dollars;

720

(b) Two and two-tenths per cent of the member's final	721
average salary for each of the first thirty years of service plus	722
two and one-half per cent of the member's final average salary for	723
each subsequent year of service.	724

The allowance shall be adjusted by the factors of attained	725
age or years of service to provide the greater amount as	726
determined by the following schedule:	727

Members shall vest the right to a benefit in accordance with	741
the following schedule, based on the member's attained age by	742
September 1, 1976:	743

(6) The total annual single lifetime allowance that a member	752
shall receive under division (A)(5) of this section shall not	753
exceed the lesser of one hundred per cent of the member's final	754
average salary or the limit established by section 415 of the	755
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	756
as amended.	757

(B)(1) For the purposes of divisions (B) to (F)(H) of this	758
section, "total service credit as a PERS law enforcement officer"	759
includesand "total service credit as a Hamilton county municipal	760
court bailiff" include credit for military service to the extent	761
permitted by division (F)(2) of this section and credit for	762
service as a police officer or state highway patrol trooper to the	763
extent permitted by divisiondivisions (F)(3) and (4) of this	764
section.	765

(2) A member who meets the conditions in division (B)(2)(a),	766
(b), or (c), (d), or (e) of this section may apply for an age and	767
service retirement benefit under this division:	768

(a) Except as provided in division (B)(2)(b) of this section,	769
Unless the member has elected to contribute toward a benefit under	770
division (B)(2)(b) of this section, the member has attained age	771
forty-eight and has at least twenty-five years of total service	772
credit as a PERS law enforcement officer and has attained age	773
fifty-twowhose primary duties were to preserve the peace, protect	774
life and property, and enforce the laws in the member's	775
jurisdiction;	776

(b) HasThe member has elected to contribute toward a benefit	777
under division (B)(2)(b) of this section, has attained age	778
fifty-two, and has at least twenty-five years of total service	779
credit as a law enforcement officer while serving as a sheriff,	780
deputy sheriff, or township constable or police officer in a	781
township police department or district and has attained age	782
forty-eightwhose primary duties were to preserve the peace,	783
protect life and property, and enforce the laws in the member's	784
jurisdiction;	785

(c) The member has attained age fifty-two and has at least	786
twenty-five years of total service credit as a PERS law	787
enforcement officer, but the member's primary duties were other	788
than to preserve the peace, protect life and property, and enforce	789
the laws in the member's jurisdiction;	790

(d) The member has attained age fifty-two and has at least	791
twenty-five years of total service as a Hamilton county municipal	792
court bailiff;	793

(c) Has(e) The member has at least fifteen years of total	794
service credit as a PERS law enforcement officer or a Hamilton	795
county municipal court bailiff and has attained age sixty-two.	796

(3) A benefit paid under division (B)(2) of this section	797
shall consist of an annual single lifetime allowance equal to the	798
sum of two and one-half per cent of the member's final average	799
salary multiplied by the first twenty-five years of the member's	800
total service plus two and one-tenth per cent of the member's	801
final average salary multiplied by the number of years of the	802
member's total service credit in excess of twenty-five years.	803

(C)(4) A member with at least fifteen years of total service	804
credit as a PERS law enforcement officer or a Hamilton county	805
municipal court bailiff who voluntarily resigns or is discharged	806
for any reason except death, dishonesty, cowardice, intemperate	807
habits, or conviction of a felony may apply for an age and service	808
retirement benefit, which shall consist of an annual single	809
lifetime allowance equal to one and one-half per cent of the	810
member's final average salary multiplied by the number of years of	811
the member's total service credit. The allowance shall commence	812
on the first day of the calendar month following the month in	813
which the application is filed with the public employees	814
retirement board on or after the attainment by the applicant of	815
age fifty-two.	816

(D)(C)(1) A member with at least twenty-five years of total	817
service credit as a law enforcement officer other than as a law	818
enforcement officer eligible for a benefit under division	819
(B)(2)(b) of this section who would be eligible to retire under	820
division (B)(2)(b), (c), or (d) of this section had the member	821
attained age fifty-two and who voluntarily resigns or is	822
discharged for any reason except death, dishonesty, cowardice,	823
intemperate habits, or conviction of a felony, on or after the	824
date of attaining forty-eight years of age, but before the date of	825
attaining fifty-two years of age, may elect to receive a reduced	826
benefit as determined by the following schedule:	827

(2) If a member elects to receive a reduced benefit after	837
attaining age forty-eight the reduced benefit is payable from the	838
later of the date of the member's most recent birthday or the date	839
the member becomes eligible to receive the reduced benefit.	840

(3) Once a member elects to receive a reduced benefit	841
determined by the schedule in division (D)(C)(1) of this section	842
and has received a payment, the member may not reelect to change	843
that election.	844

(4) If a member who has resigned or been discharged has left	845
on deposit the member's accumulated contributions in the	846
employees' savings fund and has not elected to receive a reduced	847
benefit determined by the schedule in division (D)(C)(1) of this	848
section, upon attaining fifty-two years of age, the member shall	849
be entitled to receive a benefit computed and paid under division	850
(B)(3) of this section.	851

(E)(D) A benefit paid under division (B),or (C), or (D) of	852
this section shall not exceed the lesser of ninety per cent of the	853
member's final average salary or the limit established by section	854
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	855
U.S.C.A. 415, as amended.	856

(E) Not later than one hundred eighty days after the	857
effective date of this amendment, a member who on the effective	858
date of this amendment is contributing toward a benefit under	859
division (B) of this section may elect to contribute toward a	860
benefit under division (B)(2)(b) of this section.	861

A person who becomes a member on or after the effective date	862
of this amendment may, not later than ninety days after becoming a	863
member of the retirement system, make an election to contribute	864
under division (B)(2)(b) of this section.	865

(F)(1) A member with service credit as a PERS law	866
enforcement officer or a Hamilton county municipal court bailiff	867
and other service credit under this chapter may elect one of the	868
following:	869

(a) To have all the member's service credit under this	870
chapter, including credit for service as a PERS law enforcement	871
officer or a Hamilton county municipal court bailiff, used in	872
calculating a retirement allowance under division (A) of this	873
section if the member qualifies for an allowance under that	874
division;	875

(b) If the member qualifies for an allowance under division	876
(B)(2)(a) or (c), (C), or (D) of this section, to have the	877
member's service credit as a PERS law enforcement officer or	878
Hamilton county municipal court bailiff used in calculating a	879
benefit under thatthe appropriate division and the member's	880
credit for all service other than PERS law enforcement service or	881
service as a Hamilton county municipal court bailiff under this	882
chapter used in calculating a benefit consisting of a single life	883
annuity having a reserve equal to the amount of the member's	884
accumulated contributions and an equal amount of the employer's	885
contributions;	886

(c) If the member qualifies for an allowance under division	887
(B)(2)(b) of this section, to have the member's service credit as	888
a law enforcement officer while serving as a sheriff, deputy	889
sheriff, or township constable or police officer in a township	890
police department or district used in calculating a benefit under	891
division (B)(2)(b) of this section and the member's credit for all	892
other service under this chapter used in calculating a benefit	893
consisting of a single life annuity having a reserve equal to the	894
amount of the member's accumulated contributions and an equal	895
amount of the employer's contributions.	896

(2) Notwithstanding sections 145.01 and 145.30 of the	897
Revised Code, no more than four years of military service credit	898
granted under section 145.30 of the Revised Code and five years of	899
military service credit purchased under section 145.301 or 145.302	900
of the Revised Code shall be used in calculating service as a PERS	901
law enforcement officer or Hamilton county municipal court bailiff	902
or the total service credit of that person.	903

(3) Only credit for the member's service as a PERS law	904
enforcement officer or service credit obtained as a police officer	905
or state highway patrol trooper shall be used in computing the	906
benefitsbenefit of a member who qualifies for a benefit under	907
division (B), (C)(2)(a), (b), or (c), or (D)(4) or division (C) of	908
this section for the following:	909

(a) Any person who originally is commissioned and employed	910
as a deputy sheriff by the sheriff of any county, or who	911
originally is elected sheriff, on or after January 1, 1975;	912

(b) Any deputy sheriff who originally is employed as a	913
criminal bailiff or court constable on or after April 16, 1993;	914

(c) Any person who originally is appointed as a township	915
constable or police officer in a township police department or	916
district on or after January 1, 1981;	917

(d) Any person who originally is employed as a county	918
narcotics agent on or after September 26, 1984;	919

(e) Any person who originally is employed as an undercover	920
drug agent as defined in section 109.79 of the Revised Code,	921
department of public safety enforcement agent who prior to June	922
30, 1999, was a liquor control investigator, park officer, forest	923
officer, wildlife officer, state watercraft officer, park district	924
police officer, conservancy district officer, Ohio veterans' home	925
police officer, special police officer for a mental health	926
institution, special police officer for an institution for the	927
mentally retarded and developmentally disabled, or municipal	928
police officer on or after December 15, 1988;	929

(f) Any person who originally is employed as a state	930
university law enforcement officer on or after November 6, 1996;	931

(g) Any person who originally is employed as a Hamilton	932
county municipal court bailiff on or after November 6, 1996;	933

(h) Any person who is originally employed as a state	934
university law enforcement officer by the university of Akron on	935
or after September 16, 1998;	936

(i)(h) Any person who originally is employed as a preserve	937
officer on or after March 18, 1999;	938

(j)(i) Any person who originally is employed as a natural	939
resources law enforcement staff officer on or after March 18,	940
1999;	941

(k)(j) Any person who is originally employed as a department	942
of public safety enforcement agent on or after June 30, 1999.	943

(G)(k) Any person who is originally appointed as a regional	945
transit authority police officer or state highway patrol police	946
officer on or after the effective date of this amendment.	947

(4) Only credit for a member's service as a Hamilton county	948
municipal court bailiff or service credit obtained as a PERS law	949
enforcement officer, police officer, or state highway patrol	950
trooper shall be used in computing the benefit of a member who	951
qualifies for a benefit under division (B)(2)(d) or (e) or (4) or	952
division (C) of this section for any person who originally is	953
employed as a Hamilton county municipal court bailiff on or after	954
November 6, 1996.	955

(G) Retirement allowances determined under this section	956
shall be paid as provided in section 145.46 of the Revised Code.	957

(H) For the purposes of this section, service prior to June	958
30, 1999, as a food stamp trafficking agent under former section	959
5502.14 of the Revised Code shall be considered service as a PERS	960
law enforcement officer.	961

Sec. 145.35.  (A) As used in this section, "on-duty illness	962
or injury" means an illness or injury that occurred during or	963
resulted from performance of duties under the direct supervision	964
of a member's appointing authority.	965

(B) The public employees retirement system shall provide	966
disability coverage to each member who has at least five years of	967
total service credit and disability coverage for on-duty illness	968
or injury to each member who is a PERS law enforcement officer or	969
Hamilton county municipal court bailiff, regardless of length of	970
service.	971

Not later than October 16, 1992, the public employees	972
retirement board shall give each person who is a member on July	973
29, 1992, the opportunity to elect disability coverage either	974
under section 145.36 of the Revised Code or under section 145.361	975
of the Revised Code. The board shall mail notice of the election,	976
accompanied by an explanation of the coverage under each of the	977
Revised Code sections and a form on which the election is to be	978
made, to each member at the member's last known address. The	979
board shall also provide the explanation and form to any member on	980
request.	981

Regardless of whether the member actually receives notice of	982
the right to make an election, a member who fails to file a valid	983
election under this section shall be considered to have elected	984
disability coverage under section 145.36 of the Revised Code. To	985
be valid, an election must be made on the form provided by the	986
retirement board, signed by the member, and filed with the board	987
not later than one hundred eighty days after the date the notice	988
was mailed, or, in the case of a form provided at the request of a	989
member, a date specified by rule of the retirement board. Once	990
made, an election is irrevocable, but if the member ceases to be a	991
member of the retirement system, the election is void. If a	992
person who makes an election under this section also makes an	993
election under section 3307.62 or 3309.39 of the Revised Code, the	994
election made for the system that pays a disability benefit to	995
that person shall govern the benefit.	996

Disability coverage shall be provided under section 145.361	997
of the Revised Code for persons who become members after July 29,	998
1992, and for members who elect under this division to be covered	999
under section 145.361 of the Revised Code.	1000

The retirement board may adopt rules governing elections made	1001
under this division.	1002

(C) Application for a disability benefit may be made by a	1003
member, by a person acting in the member's behalf, or by the	1004
member's employer, provided the member has disability coverage	1005
under section 145.36 or 145.361 of the Revised Code and is not	1006
receiving a disability benefit under any other Ohio state or	1007
municipal retirement program. Application must be made within two	1008
years from the date the member's contributing service terminated,	1009
unless the retirement board determines that the member's medical	1010
records demonstrate conclusively that at the time the two-year	1011
period expired, the member was physically or mentally	1012
incapacitated for duty and unable to make an application.	1013
Application may not be made by or for any person receiving age and	1014
service retirement benefits under section 145.33, 145.331, 145.34,	1015
or 145.37 of the Revised Code or any person who, pursuant to	1016
section 145.40 of the Revised Code, has been paid the accumulated	1017
contributions standing to the credit of the person's individual	1018
account in the employees' savings fund. The application shall be	1019
made on a form provided by the retirement board.	1020

(D) The benefit payable to any member who is approved for a	1021
disability benefit shall become effective on the first day of the	1022
month immediately following the later of the following:	1023

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

1024

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

1025

(E) Medical examination of a member who has applied for a	1026
disability benefit shall be conducted by a competent disinterested	1027
physician or physicians selected by the board to determine whether	1028
the member is mentally or physically incapacitated for the	1029
performance of duty by a disabling condition either permanent or	1030
presumed to be permanent. The disability must have occurred since	1031
last becoming a member or have increased since last becoming a	1032
member to such extent as to make the disability permanent or	1033
presumed to be permanent. A disability is presumed to be	1034
permanent if it is expected to last for a continuous period of not	1035
less than twelve months following the filing of the application.	1036

If the physician or physicians determine that the member	1037
qualifies for a disability benefit, the board concurs with the	1038
determination, and the member agrees to medical treatment as	1039
specified in division (F) of this section, the member shall	1040
receive a disability benefit under section 145.36 or 145.361 of	1041
the Revised Code. The action of the board shall be final.	1042

(F) The public employees retirement board shall adopt rules	1043
requiring a disability benefit recipient, as a condition of	1044
continuing to receive a disability benefit, to agree in writing to	1045
obtain any medical treatment recommended by the board's physician	1046
and submit medical reports regarding the treatment. If the board	1047
determines that a disability benefit recipient is not obtaining	1048
the medical treatment or the board does not receive a required	1049
medical report, the disability benefit shall be suspended until	1050
the treatment is obtained, the report is received by the board, or	1051
the board's physician certifies that the treatment is no longer	1052
helpful or advisable. Should the recipient's failure to obtain	1053
treatment or submit a medical report continue for one year, the	1054
recipient's right to the disability benefit shall be terminated as	1055
of the effective date of the original suspension.	1056

(G) In the event an employer files an application for a	1057
disability benefit as a result of a member having been separated	1058
from service because the member is considered to be mentally or	1059
physically incapacitated for the performance of the member's	1060
present duty, and the physician or physicians selected by the	1061
board reports to the board that the member is physically and	1062
mentally capable of performing service similar to that from which	1063
the member was separated and the board concurs in the report, the	1064
board shall so certify to the employer and the employer shall	1065
restore the member to the member's previous position and salary or	1066
to a similar position and salary.	1067

Sec. 145.40.  (A)(1) Subject to the provisions of section	1068
145.57 of the Revised Code and except as provided in division (B)	1069
of this section, if a member elects to become exempt from	1070
contribution to the public employees retirement system pursuant to	1071
section 145.03 of the Revised Code or ceases to be a public	1072
employee for any cause other than death, retirement, receipt of a	1073
disability benefit, or current employment in a position in which	1074
the member has elected to participate in an alternative retirement	1075
plan under section 3305.05 of the Revised Code, upon application	1076
the public employees retirement board shall pay the member the	1077
member's accumulated contributions, plus any applicable amount	1078
calculated under section 145.401 of the Revised Code, provided	1079
that all the following apply:	1080

(a) Three months have elapsed since the member's public	1081
service, other than service exempted from contribution pursuant to	1082
section 145.03 of the Revised Code, was terminated;	1083

(b) The member has not returned to public service, other	1084
than service exempted from contribution pursuant to section 145.03	1085
of the Revised Code, during that three-month period;	1086

(c) The member is not a member of the school employees	1087
retirement system or the state teachers retirement system.	1088

The payment of such accumulated contributions shall cancel	1089
the total service credit of such member in the public employees	1090
retirement system.	1091

(2) Notwithstanding(a) Except as provided in division	1092
(A)(2)(b) of this section, notwithstanding division (A)(1) of this	1093
section, division (B) of section 145.401 of the Revised Code, and	1094
the definition of "accumulated contributions" in division (J) of	1095
section 145.01 of the Revised Code, the accumulated contributions	1096
paid to a member under this division for service as a sheriff,	1097
deputy sheriff, or township constable or police officer in a	1098
township police department or districtPERS law enforcement	1099
officer shall not include interest credited to the member's	1100
account under section 145.471 or 145.472 of the Revised Code, nor	1101
shall the member be paid any amount calculated under section	1102
145.401 of the Revised Code.	1103

(b) Division (A)(2) of this section does not apply if the	1104
member was contributing towards a benefit under division	1105
(B)(2)(b), (c), or (d) of section 145.33 of the Revised Code.	1106

(3) A member described in division (A)(1) of this section	1107
who is married at the time of application for payment and is	1108
eligible for age and service retirement under section 145.32,	1109
145.33, 145.331, or 145.34 of the Revised Code shall submit with	1110
the application a written statement by the member's spouse	1111
attesting that the spouse consents to the payment of the member's	1112
accumulated contributions. Consent shall be valid only if it is	1113
signed and witnessed by a notary public.	1114

The board may waive the requirement of consent if the spouse	1115
is incapacitated or cannot be located, or for any other reason	1116
specified by the board. Consent or waiver is effective only with	1117
regard to the spouse who is the subject of the consent or waiver.	1118

(B) This division applies to any member who is employed in a	1119
position in which the member has made an election under section	1120
3305.05 of the Revised Code and due to the election ceases to be a	1121
public employee for purposes of that position.	1122

Subject to section 145.57 of the Revised Code, the public	1123
employees retirement system shall do the following:	1124

(1) On receipt of a certified copy of a form evidencing an	1125
election under section 3305.05 of the Revised Code, pay to the	1126
appropriate provider, in accordance with section 3305.051 of the	1127
Revised Code, the amount described in section 3305.051 of the	1128
Revised Code;	1129

(2) If a member has accumulated contributions, in addition	1130
to those subject to division (B)(1) of this section, standing to	1131
the credit of the member's individual account and is not otherwise	1132
employed in a position in which the member is considered a public	1133
employee for the purposes of that position, pay, to the provider	1134
the member selected pursuant to section 3305.05 of the Revised	1135
Code, the member's accumulated contributions. The payment shall	1136
be made on the member's application.	1137

(C) Payment of a member's accumulated contributions under	1138
division (B) of this section cancels the member's total service	1139
credit in the public employees retirement system. A member whose	1140
accumulated contributions are paid to a provider pursuant to	1141
division (B) of this section is forever barred from claiming or	1142
purchasing service credit under the public employees retirement	1143
system for the period of employment attributable to those	1144
contributions.	1145

Sec. 145.45.  Except as provided in division (C)(1) of this	1146
section, in lieu of accepting the payment of the accumulated	1147
account of a member who dies before service retirement, a	1148
beneficiary, as determined in this section or section 145.43 of	1149
the Revised Code, may elect to forfeit the accumulated	1150
contributions and to substitute certain other benefits under	1151
division (A) or (B) of this section.	1152

(A) If a deceased member was eligible for a service	1153
retirement benefit as provided in section 145.33, 145.331, or	1154
145.34 of the Revised Code, a surviving spouse or other sole	1155
dependent beneficiary may elect to receive a monthly benefit	1156
computed as the joint-survivor benefit designated as "plan D" in	1157
section 145.46 of the Revised Code, which the member would have	1158
received had the member retired on the last day of the month of	1159
death and had the member at that time selected such joint-survivor	1160
plan. Payment shall begin with the month subsequent to the	1161
member's death, except that a surviving spouse who is less than	1162
sixty-five years old may defer receipt of such benefit. Upon	1163
receipt, the benefit shall be calculated based upon the spouse's	1164
age at the time of first payment, and shall accrue regular	1165
interest during the time of deferral.	1166

(B) If a deceased member had, except as provided in division	1167
(B)(7) of this section, at least one and one-half years of	1168
contributing service credit, with, except as provided in division	1169
(B)(7) of this section, at least one-quarter year of contributing	1170
service credit within the two and one-half years prior to the date	1171
of death, or was receiving at the time of death a disability	1172
benefit as provided in section 145.36, 145.361, or 145.37 of the	1173
Revised Code, qualified survivors who elect to receive monthly	1174
benefits shall receive the greater of the benefits provided in	1175
division (B)(1)(a) or (b) and (4) of this section as allocated in	1176
accordance with division (B)(5) of this section.	1177

(2) Benefits shall begin as qualified survivors meet	1201
eligibility requirements as follows:	1202

(a) A qualified spouse is the surviving spouse of the	1203
deceased member, who is age sixty-two, or regardless of age if the	1204
deceased member had ten or more years of Ohio service credit, or	1205
regardless of age if caring for a qualified child, or regardless	1206
of age if adjudged physically or mentally incompetent. A spouse	1207
of a member who died prior to August 27, 1970, whose eligibility	1208
was determined at the member's death, and who is physically or	1209
mentally incompetent on or after August 20, 1976, shall be paid	1210
the monthly benefit which that person would otherwise receive when	1211
qualified by age.	1212

(b) A qualified child is any child of the deceased member	1213
who has never been married and to whom one of the following	1214
applies:	1215

(i) Is under age eighteen, or under age twenty-two if the	1216
child is attending an institution of learning or training pursuant	1217
to a program designed to complete in each school year the	1218
equivalent of at least two-thirds of the full-time curriculum	1219
requirements of such institution and as further determined by	1220
board policy;	1221

(ii) Regardless of age, is adjudged physically or mentally	1222
incompetent at the time of the member's death.	1223

(c) A qualified parent is a dependent parent aged sixty-five	1224
or older or regardless of age if physically or mentally	1225
incompetent, a dependent parent whose eligibility was determined	1226
by the member's death prior to August 20, 1976, and who is	1227
physically or mentally incompetent on or after August 20, 1976,	1228
shall be paid the monthly benefit for which that person would	1229
otherwise qualify.	1230

(3) "Physically or mentally incompetent" as used in this	1231
section may be determined by a court of jurisdiction, or by a	1232
physician appointed by the retirement board. Incapability of	1233
making a living because of a physically or mentally disabling	1234
condition shall meet the qualifications of this division.	1235

(4) Benefits to a qualified survivor shall terminate upon	1236
ceasing to meet eligibility requirements as provided in this	1237
division, a first marriage, abandonment, adoption, or during	1238
active military service. Benefits to a deceased member's	1239
surviving spouse that were terminated under a former version of	1240
this section that required termination due to remarriage and were	1241
not resumed prior to September 16, 1998, shall resume on the first	1242
day of the month immediately following receipt by the board of an	1243
application on a form provided by the board.	1244

Upon the death of any subsequent spouse who was a member of	1245
the public employees retirement system, state teachers retirement	1246
system, or school employees retirement system, the surviving	1247
spouse of such member may elect to continue receiving benefits	1248
under this division, or to receive survivor's benefits, based upon	1249
the subsequent spouse's membership in one or more of the systems,	1250
for which such surviving spouse is eligible under this section or	1251
section 3307.66 or 3309.45 of the Revised Code. If the surviving	1252
spouse elects to continue receiving benefits under this division,	1253
such election shall not preclude the payment of benefits under	1254
this division to any other qualified survivor.	1255

Benefits shall begin or resume on the first day of the month	1256
following the attainment of eligibility and shall terminate on the	1257
first day of the month following loss of eligibility.	1258

(5)(a) If a benefit is payable under division (B)(1)(a) of	1259
this section, benefits to a qualified spouse shall be paid in the	1260
amount determined for the first qualifying survivor in division	1261
(B)(1)(a) of this section. All other qualifying survivors shall	1262
share equally in the benefit or remaining portion thereof.	1263

(b) All qualifying survivors shall share equally in a	1264
benefit payable under division (B)(1)(b) of this section, except	1265
that if there is a surviving spouse, the surviving spouse shall	1266
receive not less than the amount determined for the first	1267
qualifying survivor in division (B)(1)(a) of this section.	1268

(6) The beneficiary of a member who is also a member of the	1269
state teachers retirement system or of the school employees	1270
retirement system, must forfeit the member's accumulated	1271
contributions in those systems and in the public employees	1272
retirement system, if the beneficiary takes a survivor benefit.	1273
Such benefit shall be exclusively governed by section 145.37 of	1274
the Revised Code.	1275

(7) The restriction that the deceased member have had at	1276
least one and one-half years of contributing service credit, with	1277
at least one-quarter year of contributing service within the two	1278
and one-half years prior to the date of death, does not apply if	1279
the deceased member was contributing toward benefits under	1280
division (B) or (C) of section 145.33 of the Revised Code at the	1281
time of death.	1282

(C)(1) Regardless of whether the member is survived by a	1283
spouse or designated beneficiary, if the public employees	1284
retirement system receives notice that a deceased member described	1285
in division (A) or (B) of this section has one or more qualified	1286
children, all persons who are qualified survivors under division	1287
(B) of this section shall receive monthly benefits as provided in	1288
division (B) of this section.	1289

If, after determining the monthly benefits to be paid under	1290
division (B) of this section, the system receives notice that	1291
there is a qualified survivor who was not considered when the	1292
determination was made, the system shall, notwithstanding section	1293
145.561 of the Revised Code, recalculate the monthly benefits with	1294
that qualified survivor included, even if the benefits to	1295
qualified survivors already receiving benefits are reduced as a	1296
result. The benefits shall be calculated as if the qualified	1297
survivor who is the subject of the notice became eligible on the	1298
date the notice was received and shall be paid to qualified	1299
survivors effective on the first day of the first month following	1300
the system's receipt of the notice.	1301

If the retirement system did not receive notice that a	1302
deceased member has one or more qualified children prior to making	1303
payment under section 145.43 of the Revised Code to a beneficiary	1304
as determined by the retirement system, the payment is a full	1305
discharge and release of the system from any future claims under	1306
this section or section 145.43 of the Revised Code.	1307

(2) If benefits under division (C)(1) of this section to all	1308
persons, or to all persons other than a surviving spouse or other	1309
sole beneficiary, terminate, there are no children under the age	1310
of twenty-two years, and the surviving spouse or beneficiary	1311
qualifies for benefits under division (A) of this section, the	1312
surviving spouse or beneficiary may elect to receive benefits	1313
under division (A) of this section. The benefits shall be	1314
effective on the first day of the month immediately following the	1315
termination.	1316

(D) The final average salary used in the calculation of a	1317
benefit payable pursuant to division (A) or (B) of this section to	1318
a survivor or beneficiary of a disability benefit recipient shall	1319
be adjusted for each year between the disability benefit's	1320
effective date and the recipient's date of death by the lesser of	1321
three per cent or the actual average percentage increase in the	1322
consumer price index prepared by the United States bureau of labor	1323
statistics (U.S. city average for urban wage earners and clerical	1324
workers: "all items 1982-84=100").	1325

(E) If the survivor benefits due and paid under this section	1326
are in a total amount less than the member's accumulated account	1327
that was transferred from the public employees' savings fund to	1328
the survivors' benefit fund, then the difference between the total	1329
amount of the benefits paid shall be paid to the beneficiary under	1330
section 145.43 of the Revised Code.	1331

Sec. 145.49. (A) Notwithstanding section 145.47 of the	1332
Revised Code, the:	1333

(1) The public employees retirmentretirement system shall	1334
be authorized to calculate the employee contribution rates	1335
separately for those public employees contributing toward benefits	1336
under division (B), (C), or (D)(2)(b), (c), (d), or (e) of section	1337
145.33 of the Revised Code.	1338

(2) Each public employee contributing toward benefits under	1339
division (B)(2)(b)(a) of section 145.33 of the Revised Code shall	1340
contribute to the employees' savings fund the sum of oneten and	1341
one-tenth per cent of the employee's earnable salary and the	1342
employee contribution rate calculated for employees contributing	1343
toward benefits under division (B)(2)(a) of section 145.33 of the	1344
Revised Code, notwithstanding section 145.47 of the Revised Code.	1345

(B) Notwithstanding section 145.48 of the Revised Code, the	1346
public employees retirement system shall be authorized to	1347
calculate the employer contribution rates separately for those	1348
public employees contributing toward benefits under division (B),	1349
(C), or (D)(2)(a) of section 145.33 of the Revised Code or under	1350
division (B)(2)(b), (c), (d), or (e) of that section, except that	1351
the employer contribution rate shall not exceed eighteen and	1352
one-tenth per cent of the earnable salaries of those employees.	1353

Sec. 3309.312.  (A) Not later than ninety days after	1354
September 16, 1998, a member who, on September 16, 1998, is	1355
employed full-time pursuant to section 3345.04 of the Revised Code	1356
by the university of Akron as a state university law enforcement	1357
officer may elect to transfer to the public employees retirement	1358
system in accordance with this section. An election shall be made	1359
by giving notice to the school employees retirement system on a	1360
form provided by the school employees retirement board and shall	1361
be irrevocable.	1362

(B) When a member makes the election described in this	1363
section, the school employees retirement system shall notify the	1364
public employees retirement system. The school employees	1365
retirement system shall transfer all of the member's service	1366
credit to the public employees retirement system and shall certify	1367
to the public employees retirement system a copy of the member's	1368
records of service and contributions. For each year or portion of	1369
a year of credit, the school employees retirement system shall	1370
transfer to the public employees retirement system all of the	1371
following:	1372

(1) An amount equal to the accumulated contributions	1373
standing to the member's credit;	1374

(2) An amount equal to the total employer contributions paid	1375
on behalf of the member;	1376

(3) Any amount paid by the member or employer to the school	1377
employees retirement system for the purchase of service credit.	1378

At the request of the public employees retirement system, the	1379
employer of a member who makes an election under this section	1380
shall certify to the public employees retirement system the	1381
member's salary.	1382

(C) A member who elects to transfer to the public employees	1383
retirement system under this section shall make contributions and	1384
receive benefits in accordance with divisions (B) to (G)(F) of	1385
section 145.33 of the Revised Code.	1386

(D) A member who fails to make an election in accordance	1387
with this section shall remain a member of the school employees	1388
retirement system.	1389

Section 2.  That existing sections 145.01, 145.19, 145.191,	1390
145.321, 145.33, 145.35, 145.40, 145.45, 145.49, and 3309.312 of	1391
the Revised Code are hereby repealed.	1392

Section 3.  As used in this section, "regional transit	1393
authority police officer" and "state highway patrol police	1394
officer" have the same meanings as in section 145.01 of the	1395
Revised Code, as amended by this act.	1396

Not later than ninety days after the effective date of this	1397
act, each regional transit authority police officer and state	1398
highway patrol police officer who is a member of the Public	1399
Employees Retirement System shall indicate to the system, on a	1400
form supplied by the system, a choice of whether to receive	1401
benefits under division (A) of section 145.33 of the Revised Code	1402
or under division (B) of that section.	1403

Section 4.  Section 145.01 of the Revised Code is presented	1405
in this act as a composite of the section as amended by Am. Sub.	1406
H.B. 628, Am. Sub. H.B. 640, and Am. Sub. S.B. 144 of the 123rd	1407
General Assembly. The General Assembly, applying the principle	1408
stated in division (B) of section 1.52 of the Revised Code that	1409
amendments are to be harmonized if reasonably capable of	1410
simultaneous operation, finds that the composite is the resulting	1411
version of the section in effect prior to the effective date of	1412
the section as presented in this act.	1413