SENATORS Amstutz, Austria, Spada, Mead, Fingerhut, Blessing

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	60
appointive head of the several executive, judicial, and	61
administrative departments, institutions, boards, and commissions	62
of the state and local government as the same are created and	63
defined by the laws of this state or, in case of a charter	64
government, by that 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	225
account 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	233
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and	234
145.46 of 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	253
salary" 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	323
a 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	392
purpose of satisfying the service credit requirements and of	393
determining eligibility for benefits under section 145.33 of the	394
Revised Code, means employment covered under this chapter or under	395
a former retirement plan operated, recognized, or endorsed by the	396
employer prior to coverage under this chapter or under a	397
combination of the 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	463
of 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	484
institution" means any person who is designated as such pursuant	485
to section 5119.14 of the Revised Code and is in compliance with	486
section 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) "House sergeant at arms" means any person appointed by	507
the speaker of the house of representatives under division (B)(1)	508
of section 101.311 of the Revised Code who has arrest authority	509
under division (E)(1) of that section.	510

(TT)(SS) "Assistant house sergeant at arms" means any person	511
appointed by the house sergeant at arms under division (C)(1) of	512
section 101.311 of the Revised Code.	513

(UU)(TT) "Regional transit authority police officer" means a	514
person who is employed full time as a regional transit authority	515
police officer under division (Y) of section 306.35 of the Revised	516
Code and is in compliance with section 109.77 of the Revised Code.	517

(UU) "State highway patrol police officer" means a special	518
police officer employed full time and designated by the	519
superintendent of the state highway patrol pursuant to section	520
5503.09 of the Revised Code or a person serving full time as a	521
special police officer pursuant to that section on a permanent	522
basis on October 21, 1997, who is in compliance with section	523
109.77 of the Revised Code.	524

(VV) Notwithstanding section 2901.01 of the Revised Code,	525
"law enforcement officer" means a sheriff, deputy sheriff,	526
township constable or police officer in a township police	527
department or district, drug agent, department of public safety	528
enforcement agent, natural resources law enforcement staff	529
officer, park officer, forest officer, preserve officer, wildlife	530
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, special	533
police officer for an institution for the mentally retarded and	534
developmentally disabled, state university law enforcement	535
officer, Hamilton county municipal court bailiff, municipal	536
police officer, house sergeant at arms, or assistant house	537
sergeant at arms, regional transit authority police officer, or	538
state highway patrol police officer.	539

(VV)(WW) "Hamilton county municipal court bailiff" means a	540
person appointed by the clerk of courts of the Hamilton county	541
municipal court under division (A)(3) of section 1901.32 of the	542
Revised Code who is employed full time as a bailiff or deputy	543
bailiff, who has received a certificate attesting to the person's	544
satisfactory completion of the peace officer basic training	545
described in division (D)(1) of section 109.77 of the Revised	546
Code, and whose primary duties are to preserve the peace, to	547
protect life and property, and to enforce the laws of this state.	548

(XX) "Fiduciary" means a person who does any of the	549
following:	550

(1) Exercises any discretionary authority or control with	551
respect to the management of the system or with respect to the	552
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 the	556
administration of the system.	557

(WW)(YY) "Actuary" means an individual who satisfies all of	558
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 providing	562
actuarial services to public retirement plans.	563

Sec. 145.19.  (A) Except as provided in division (D) of this	564
section, an individual who becomes a member of the public	565
employees retirement system on or after the date on which the	566
public employees retirement board establishes a plan under section	567
145.81 of the Revised Code shall make an election under this	568
section. Not later than one hundred eighty days after the date on	569
which employment begins, the individual shall elect to participate	570
either in the plan described in sections 145.201 to 145.79 of the	571
Revised Code or one of the plans established under section 145.81	572
of the Revised Code. If a form evidencing an election under this	573
section is not on file with the employer at the end of the	574
one-hundred-eighty-day period, the individual is deemed to have	575
elected to participate in the plan described in sections 145.201	576
to 145.79 of the Revised Code.	577

(B) An election under this section shall be made in writing	578
on a form provided by the retirement system and filed with the	579
employer's personnel officer. Not later than ten days after	580
receiving the form evidencing the election, the employer shall	581
transmit to the system a copy that includes a statement certifying	582
that it is a true and accurate copy of the original.	583

(C) An election under this section shall take effect on the	584
date employment began and is irrevocable on receipt by the	585
employer.	586

(D) An individual is ineligible to make an election under	587
this section if one of the following applies:	588

(1) At the time employment begins, the individual is already	589
a member or contributor participating in the plan described in	590
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 retirement	593
plan under section 3305.05 of the Revised Code is in effect for	594
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 employees	597
retirement system, other than a member who is a PERS law	598
enforcement officer, who, as of the last day of the month	599
immediately preceding the date on which the system establishes a	600
plan under section 145.81 of the Revised Code, has less than five	601
years of total service credit is eligible to make an election	602
under this section.	603

Not later than one hundred eighty days after the day the	604
board first establishes one or more plans under section 145.81 of	605
the Revised Code, an eligible member may elect to participate in a	606
plan established under that section. If an election is not made,	607
a member to whom this section applies is deemed to have elected to	608
continue participating in the plan described in sections 145.201	609
to 145.79 of the Revised Code.	610

(B) An election under this section shall be made in writing	611
on a form provided by the system and filed with the system.	612

(C) On receipt of an election under this section, the system	613
shall do both of the following:	614

(1) Credit to the account of the member in the defined	615
contribution fund the accumulated contributions standing to the	616
member's credit in the employees' savings fund;	617

(2) Cancel all service credit and eligibility for any	618
payment, benefit, or right under the plan described in sections	619
145.201 to 145.79 of the Revised Code.	620

(D) An election under this section shall be irrevocable on	621
receipt by the system.	622

Sec. 145.321.  On and after October 1, 1957, all persons in	623
receipt of, or who are or become eligible to receive, a monthly	624
allowance, pension, or other benefit effective prior to June 29,	625
1955, which is payable or becomes payable pursuant to the	626
provisions of sections 145.33 to 145.36 and 145.46 of the Revised	627
Code, or an allowance payable at any time under an option elected	628
by a member and effective prior to that date, shall be paid an	629
increased allowance, pension, or benefit as follows:	630

(A) An amount determined by increasing the original	631
allowance, pension, or benefit by the following percentages as	632
determined by the calendar year in which the allowance, pension,	633
or benefit became effective:	634

(B) If the amount of any allowance, pension, or other	654
benefit is increased by division (A) of this section to an amount	655
less than one hundred ten per cent of the present amount payable	656
immediately prior to October 1, 1957, the present amount shall be	657
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 a	661
voluntary deposit made for additional annuity), together with the	662
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 each	665
person who retired on or before June 30, 1955 and is receiving age	666
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 one	668
hundred twenty dollars annually, notwithstanding the final average	669
salary limitations in division (A)(6) of section 145.33 and	670
division (B) of section 145.36 of the Revised Code.	671

(E) Effective November 1, 1965, the allowances of each	672
person who retired after June 30, 1955 and on or before October	673
31, 1965 and is receiving age and service or disability benefits	674
under sections 145.32, 145.33, 145.34, and 145.36 of the Revised	675
Code shall be increased by one hundred twenty dollars annually,	676
which when added to the allowance in effect on October 31, 1965,	677
shall not exceed the final average salary limitations found in	678
division (A)(6) of section 145.33 and division (B) of section	679
145.36 of the Revised Code, except that the increase shall not be	680
less than seventy-two dollars annually.	681

(F) Beginning November 1, 1965, the monthly benefit payable	682
under section 145.45 of the Revised Code shall be increased six	683
dollars for each survivor beneficiary receiving a benefit on	684
October 31, 1965 and for each successor to such benefit.	685

For the purposes of this section: (1) The total increase	686
payable per month on or after November 1, 1965 to a retirant or	687
beneficiary from one or more state systems shall not exceed the	688
ten dollar increase as provided in this division, and (2) in all	689
cases involving combined membership and service as provided for	690
under section 145.37 of the Revised Code, only those cases which	691
are being paid by the public employees retirement system shall be	692
calculated under the provisions of this section.	693

Sec. 145.33.  (A) Except as provided in division (B),or	694
(C), or (D) of this section, a member with at least five years of	695
total service credit who has attained age sixty, or who has thirty	696
years of total Ohio service credit, may apply for age and service	697
retirement, which shall consist of:	698

(1) An annuity having a reserve equal to the amount of the	699
member's accumulated contributions at that time;	700

(2) A pension equal to the annuity provided by division	701
(A)(1) of this section;	702

(3) An additional pension, if the member can qualify for	703
prior service, equal to forty dollars multiplied by the number of	704
years, and fraction thereof, of such prior and military service	705
credit;	706

(4) A basic annual pension equal to one hundred eighty	707
dollars if the member has ten or more years of total service	708
credit as of October 1, 1956, except that the basic annual pension	709
shall not exceed the sum of the annual benefits provided by	710
divisions (A)(1), (2), and (3) of this section.	711

(5) When a member retires on age and service retirement, the	712
member's total annual single lifetime allowance, including the	713
allowances provided in divisions (A)(1), (2), (3), and (4) of this	714
section, shall be not less than a base amount adjusted in	715
accordance with division (A)(5) of this section and determined by	716
multiplying the member's total service credit by the greater of	717
the following:	718

(a) Eighty-six dollars;

719

(b) Two and two-tenths per cent of the member's final	720
average salary for each of the first thirty years of service plus	721
two and one-half per cent of the member's final average salary for	722
each subsequent year of service.	723

The allowance shall be adjusted by the factors of attained	724
age or years of service to provide the greater amount as	725
determined by the following schedule:	726

Members shall vest the right to a benefit in accordance with	740
the following schedule, based on the member's attained age by	741
September 1, 1976:	742

(6) The total annual single lifetime allowance that a member	751
shall receive under division (A)(5) of this section shall not	752
exceed the lesser of one hundred per cent of the member's final	753
average salary or the limit established by section 415 of the	754
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	755
as amended.	756

(B)(1) For the purposes of divisions (B) to (F)(H) of this	757
section, "total service credit as a PERS law enforcement officer"	758
includesand "total service credit as a Hamilton county municipal	759
court bailiff" include credit for military service to the extent	760
permitted by division (F)(2) of this section and credit for	761
service as a police officer or state highway patrol trooper to the	762
extent permitted by divisiondivisions (F)(3) and (4) of this	763
section.	764

(2) A member who meets the conditions in division (B)(2)(a),	765
(b), or (c), or (d) of this section may apply for an age and	766
service retirement benefit under this division:	767

(a) Except as provided in division (B)(2)(b) of this section,	768
The member has attained age forty-eight and has at least	769
twenty-five years of total service credit as a PERS law	770
enforcement officer and has attained age fifty-twowhose primary	771
duties were to preserve the peace, protect life and property, and	772
enforce the laws in the member's jurisdiction;	773

(b) HasThe member has attained age fifty-two, and has at	774
least twenty-five years of total service credit as a PERS law	775
enforcement officer while serving as a sheriff, deputy sheriff, or	776
township con stable or police officer in a township police	777
department or district and has attained age forty-eight, but the	778
member's primary duties were other than to preserve the peace,	779
protect life and property, and enforce the laws in the member's	780
jurisdiction;	781

(c) The member has attained age fifty-two and has at least	782
twenty-five years of total service as a Hamilton county municipal	783
court bailiff;	784

(c) Has(d) The member has attained age sixty-two and has at	785
least fifteen years of total service credit as aeither of the	786
following:	787

(i) A PERS law enforcement officer and has attained age	788
sixty-two;	789

(ii) A Hamilton county municipal court bailiff.

790

(3) A benefit paid under division (B)(2) of this section	791
shall consist of an annual single lifetime allowance equal to the	792
sum of two and one-half per cent of the member's final average	793
salary multiplied by the first twenty-five years of the member's	794
total service plus two and one-tenth per cent of the member's	795
final average salary multiplied by the number of years of the	796
member's total service credit in excess of twenty-five years.	797

(C)(4) A member with at least fifteen years of total service	798
credit as a PERS law enforcement officer or Hamilton county	799
municipal court bailiff who voluntarily resigns or is discharged	800
for any reason except death, dishonesty, cowardice, intemperate	801
habits, or conviction of a felony may apply for an age and service	802
retirement benefit, which shall consist of an annual single	803
lifetime allowance equal to one and one-half per cent of the	804
member's final average salary multiplied by the number of years of	805
the member's total service credit. The allowance shall commence	806
on the first day of the calendar month following the month in	807
which the application is filed with the public employees	808
retirement board on or after the attainment by the applicant of	809
age fifty-two.	810

(D)(C)(1) A member with at least twenty-five years of total	811
service credit as a law enforcement officer other than as a law	812
enforcement officer eligible for a benefit under division	813
(B)(2)(b) of this section who would be eligible to retire under	814
division (B)(2)(b) or (c) of this section had the member attained	815
age fifty-two and who voluntarily resigns or is discharged for any	816
reason except death, dishonesty, cowardice, intemperate habits, or	817
conviction of a felony, on or after the date of attaining	818
forty-eight years of age, but before the date of attaining	819
fifty-two years of age, may elect to receive a reduced benefit as	820
determined by the following schedule:	821

(2) If a member elects to receive a reduced benefit after	831
attaining age forty-eight the reduced benefit is payable from the	832
later of the date of the member's most recent birthday or the date	833
the member becomes eligible to receive the reduced benefit.	834

(3) Once a member elects to receive a reduced benefit	835
determined by the schedule in division (D)(C)(1) of this section	836
and has received a payment, the member may not reelect to change	837
that election.	838

(4) If a member who has resigned or been discharged has left	839
on deposit the member's accumulated contributions in the	840
employees' savings fund and has not elected to receive a reduced	841
benefit determined by the schedule in division (D)(C)(1) of this	842
section, upon attaining fifty-two years of age, the member shall	843
be entitled to receive a benefit computed and paid under division	844
(B)(3) of this section.	845

(E)(D) A benefit paid under division (B),or (C), or (D) of	846
this section shall not exceed the lesser of ninety per cent of the	847
member's final average salary or the limit established by section	848
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	849
U.S.C.A. 415, as amended.	850

(F)(E)(1) A member with service credit as a PERS law	851
enforcement officer or a Hamilton county municipal court bailiff	852
and other service credit under this chapter may elect one of the	853
following:	854

(a) To have all the member's service credit under this	855
chapter, including credit for service as a PERS law enforcement	856
officer or Hamilton county municipal court bailiff, used in	857
calculating a retirement allowance under division (A) of this	858
section if the member qualifies for an allowance under that	859
division;	860

(b) If the member qualifies for an allowance under division	861
(B)(2)(a) or (c), (C), or (D) of this section, to have the	862
member's service credit as a PERS law enforcement officer or	863
Hamilton county municipal court bailiff used in calculating a	864
benefit under thatthe appropriate division and the member's	865
credit for all service other than PERS law enforcement service or	866
service as a Hamilton county municipal court bailiff under this	867
chapter used in calculating a benefit consisting of a single life	868
annuity having a reserve equal to the amount of the member's	869
accumulated contributions and an equal amount of the employer's	870
contributions;	871

(c) If the member qualifies for an allowance under division	872
(B)(2)(b) of this section, to have the member's service credit as	873
a law enforcement officer while serving as a sheriff, deputy	874
sheriff, or township constable or police officer in a township	875
police department or district used in calculating a benefit under	876
division (B)(2)(b) of this section and the member's credit for all	877
other service under this chapter used in calculating a benefit	878
consisting of a single life annuity having a reserve equal to the	879
amount of the member's accumulated contributions and an equal	880
amount of the employer's contributions.	881

(2) Notwithstanding sections 145.01 and 145.30 of the	882
Revised Code, no more than four years of military service credit	883
granted under section 145.30 of the Revised Code and five years of	884
military service credit purchased under section 145.301 or 145.302	885
of the Revised Code shall be used in calculating service as a PERS	886
law enforcement officer or Hamilton county municipal court bailiff	887
or the total service credit of that person.	888

(3) Only credit for the member's service as a PERS law	889
enforcement officer or service credit obtained as a police officer	890
or state highway patrol trooper shall be used in computing the	891
benefitsbenefit of a member who qualifies for a benefit under	892
division (B), (C),(2)(a), (b), or (d)(ii) or (D)(4) or division	893
(C) of this section for the following:	894

(a) Any person who originally is commissioned and employed	895
as a deputy sheriff by the sheriff of any county, or who	896
originally is elected sheriff, on or after January 1, 1975;	897

(b) Any deputy sheriff who originally is employed as a	898
criminal bailiff or court constable on or after April 16, 1993;	899

(c) Any person who originally is appointed as a township	900
constable or police officer in a township police department or	901
district on or after January 1, 1981;	902

(d) Any person who originally is employed as a county	903
narcotics agent on or after September 26, 1984;	904

(e) Any person who originally is employed as an undercover	905
drug agent as defined in section 109.79 of the Revised Code,	906
department of public safety enforcement agent who prior to June	907
30, 1999, was a liquor control investigator, park officer, forest	908
officer, wildlife officer, state watercraft officer, park district	909
police officer, conservancy district officer, Ohio veterans' home	910
police officer, special police officer for a mental health	911
institution, special police officer for an institution for the	912
mentally retarded and developmentally disabled, or municipal	913
police officer on or after December 15, 1988;	914

(f) Any person who originally is employed as a state	915
university law enforcement officer on or after November 6, 1996;	916

(g) Any person who originally is employed as a Hamilton	917
county municipal court bailiff on or after November 6, 1996;	918

(h) Any person who is originally employed as a state	919
university law enforcement officer by the university of Akron on	920
or after September 16, 1998;	921

(i)(h) Any person who originally is employed as a preserve	922
officer on or after March 18, 1999;	923

(j)(i) Any person who originally is employed as a natural	924
resources law enforcement staff officer on or after March 18,	925
1999;	926

(k)(j) Any person who is originally employed as a department	927
of public safety enforcement agent on or after June 30, 1999;	928

(l)(k) Any person who is originally employed as a house	929
sergeant at arms or assistant house sergeant at arms on or after	930
the effective date of this amendmentSeptember 5, 2001;	931

(l) Any person who is originally appointed as a regional	932
transit authority police officer or state highway patrol police	933
officer on or after the effective date of this amendment.	934

(4) Only credit for a member's service as a Hamilton county	935
municipal court bailiff or service credit obtained as a PERS law	936
enforcement officer, police officer, or state highway patrol	937
trooper shall be used in computing the benefit of a member who	938
qualifies for a benefit under division (B)(2)(c) or (d)(ii) or (4)	939
or division (C) of this section for any person who originally is	940
employed as a Hamilton county municipal court bailiff on or after	941
November 6, 1996.	942

(G) Retirement allowances determined under this section	943
shall be paid as provided in section 145.46 of the Revised Code.	944

(H) For the purposes of this section, service prior to June	945
30, 1999, as a food stamp trafficking agent under former section	946
5502.14 of the Revised Code shall be considered service as a law	947
enforcement officer.	948

Sec. 145.35.  (A) As used in this section, "on-duty illness	949
or injury" means an illness or injury that occurred during or	950
resulted from performance of duties under the direct supervision	951
of a member's appointing authority.	952

(B) The public employees retirement system shall provide	953
disability coverage to each member who has at least five years of	954
total service credit and disability coverage for on-duty illness	955
or injury to each member who is a PERS law enforcement officer or	956
Hamilton county municipal court bailiff, regardless of length of	957
service.	958

Not later than October 16, 1992, the public employees	959
retirement board shall give each person who is a member on July	960
29, 1992, the opportunity to elect disability coverage either	961
under section 145.36 of the Revised Code or under section 145.361	962
of the Revised Code. The board shall mail notice of the election,	963
accompanied by an explanation of the coverage under each of the	964
Revised Code sections and a form on which the election is to be	965
made, to each member at the member's last known address. The	966
board shall also provide the explanation and form to any member on	967
request.	968

Regardless of whether the member actually receives notice of	969
the right to make an election, a member who fails to file a valid	970
election under this section shall be considered to have elected	971
disability coverage under section 145.36 of the Revised Code. To	972
be valid, an election must be made on the form provided by the	973
retirement board, signed by the member, and filed with the board	974
not later than one hundred eighty days after the date the notice	975
was mailed, or, in the case of a form provided at the request of a	976
member, a date specified by rule of the retirement board. Once	977
made, an election is irrevocable, but if the member ceases to be a	978
member of the retirement system, the election is void. If a	979
person who makes an election under this section also makes an	980
election under section 3307.62 or 3309.39 of the Revised Code, the	981
election made for the system that pays a disability benefit to	982
that person shall govern the benefit.	983

Disability coverage shall be provided under section 145.361	984
of the Revised Code for persons who become members after July 29,	985
1992, and for members who elect under this division to be covered	986
under section 145.361 of the Revised Code.	987

The retirement board may adopt rules governing elections made	988
under this division.	989

(C) Application for a disability benefit may be made by a	990
member, by a person acting in the member's behalf, or by the	991
member's employer, provided the member has disability coverage	992
under section 145.36 or 145.361 of the Revised Code and is not	993
receiving a disability benefit under any other Ohio state or	994
municipal retirement program. Application must be made within two	995
years from the date the member's contributing service terminated,	996
unless the retirement board determines that the member's medical	997
records demonstrate conclusively that at the time the two-year	998
period expired, the member was physically or mentally	999
incapacitated for duty and unable to make an application.	1000
Application may not be made by or for any person receiving age and	1001
service retirement benefits under section 145.33, 145.331, 145.34,	1002
or 145.37 of the Revised Code or any person who, pursuant to	1003
section 145.40 of the Revised Code, has been paid the accumulated	1004
contributions standing to the credit of the person's individual	1005
account in the employees' savings fund. The application shall be	1006
made on a form provided by the retirement board.	1007

(D) The benefit payable to any member who is approved for a	1008
disability benefit shall become effective on the first day of the	1009
month immediately following the later of the following:	1010

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

1011

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

1012

(E) Medical examination of a member who has applied for a	1013
disability benefit shall be conducted by a competent disinterested	1014
physician or physicians selected by the board to determine whether	1015
the member is mentally or physically incapacitated for the	1016
performance of duty by a disabling condition either permanent or	1017
presumed to be permanent. The disability must have occurred since	1018
last becoming a member or have increased since last becoming a	1019
member to such extent as to make the disability permanent or	1020
presumed to be permanent. A disability is presumed to be	1021
permanent if it is expected to last for a continuous period of not	1022
less than twelve months following the filing of the application.	1023

If the physician or physicians determine that the member	1024
qualifies for a disability benefit, the board concurs with the	1025
determination, and the member agrees to medical treatment as	1026
specified in division (F) of this section, the member shall	1027
receive a disability benefit under section 145.36 or 145.361 of	1028
the Revised Code. The action of the board shall be final.	1029

(F) The public employees retirement board shall adopt rules	1030
requiring a disability benefit recipient, as a condition of	1031
continuing to receive a disability benefit, to agree in writing to	1032
obtain any medical treatment recommended by the board's physician	1033
and submit medical reports regarding the treatment. If the board	1034
determines that a disability benefit recipient is not obtaining	1035
the medical treatment or the board does not receive a required	1036
medical report, the disability benefit shall be suspended until	1037
the treatment is obtained, the report is received by the board, or	1038
the board's physician certifies that the treatment is no longer	1039
helpful or advisable. Should the recipient's failure to obtain	1040
treatment or submit a medical report continue for one year, the	1041
recipient's right to the disability benefit shall be terminated as	1042
of the effective date of the original suspension.	1043

(G) In the event an employer files an application for a	1044
disability benefit as a result of a member having been separated	1045
from service because the member is considered to be mentally or	1046
physically incapacitated for the performance of the member's	1047
present duty, and the physician or physicians selected by the	1048
board reports to the board that the member is physically and	1049
mentally capable of performing service similar to that from which	1050
the member was separated and the board concurs in the report, the	1051
board shall so certify to the employer and the employer shall	1052
restore the member to the member's previous position and salary or	1053
to a similar position and salary.	1054

Sec. 145.40.  (A)(1) Subject to the provisions of section	1055
145.57 of the Revised Code and except as provided in division (B)	1056
of this section, if a member elects to become exempt from	1057
contribution to the public employees retirement system pursuant to	1058
section 145.03 of the Revised Code or ceases to be a public	1059
employee for any cause other than death, retirement, receipt of a	1060
disability benefit, or current employment in a position in which	1061
the member has elected to participate in an alternative retirement	1062
plan under section 3305.05 of the Revised Code, upon application	1063
the public employees retirement board shall pay the member the	1064
member's accumulated contributions, plus any applicable amount	1065
calculated under section 145.401 of the Revised Code, provided	1066
that all the following apply:	1067

(a) Three months have elapsed since the member's public	1068
service, other than service exempted from contribution pursuant to	1069
section 145.03 of the Revised Code, was terminated;	1070

(b) The member has not returned to public service, other	1071
than service exempted from contribution pursuant to section 145.03	1072
of the Revised Code, during that three-month period;	1073

(c) The member is not a member of the school employees	1074
retirement system or the state teachers retirement system.	1075

The payment of such accumulated contributions shall cancel	1076
the total service credit of such member in the public employees	1077
retirement system.	1078

(2) Notwithstanding division (A)(1) of this section, division	1079
(B) of section 145.401 of the Revised Code, and the definition of	1080
"accumulated contributions" in division (J) of section 145.01 of	1081
the Revised Code, the accumulated contributions paid to a member	1082
under this division for service as a sheriff, deputy sheriff, or	1083
township constable or police officer in a township police	1084
department or district shall not include interest credited to the	1085
member's account under section 145.471 or 145.472 of the Revised	1086
Code, nor shall the member be paid any amount calculated under	1087
section 145.401 of the Revised Code.	1088

(3) A member described in division (A)(1) of this section	1089
who is married at the time of application for payment and is	1090
eligible for age and service retirement under section 145.32,	1091
145.33, 145.331, or 145.34 of the Revised Code shall submit with	1092
the application a written statement by the member's spouse	1093
attesting that the spouse consents to the payment of the member's	1094
accumulated contributions. Consent shall be valid only if it is	1095
signed and witnessed by a notary public.	1096

The board may waive the requirement of consent if the spouse	1097
is incapacitated or cannot be located, or for any other reason	1098
specified by the board. Consent or waiver is effective only with	1099
regard to the spouse who is the subject of the consent or waiver.	1100

(B) This division applies to any member who is employed in a	1101
position in which the member has made an election under section	1102
3305.05 of the Revised Code and due to the election ceases to be a	1103
public employee for purposes of that position.	1104

Subject to section 145.57 of the Revised Code, the public	1105
employees retirement system shall do the following:	1106

(1) On receipt of a certified copy of a form evidencing an	1107
election under section 3305.05 of the Revised Code, pay to the	1108
appropriate provider, in accordance with section 3305.051 of the	1109
Revised Code, the amount described in section 3305.051 of the	1110
Revised Code;	1111

(2) If a member has accumulated contributions, in addition	1112
to those subject to division (B)(1) of this section, standing to	1113
the credit of the member's individual account and is not otherwise	1114
employed in a position in which the member is considered a public	1115
employee for the purposes of that position, pay, to the provider	1116
the member selected pursuant to section 3305.05 of the Revised	1117
Code, the member's accumulated contributions. The payment shall	1118
be made on the member's application.	1119

(C) Payment of a member's accumulated contributions under	1120
division (B) of this section cancels the member's total service	1121
credit in the public employees retirement system. A member whose	1122
accumulated contributions are paid to a provider pursuant to	1123
division (B) of this section is forever barred from claiming or	1124
purchasing service credit under the public employees retirement	1125
system for the period of employment attributable to those	1126
contributions.	1127

Sec. 145.45.  Except as provided in division (C)(1) of this	1128
section, in lieu of accepting the payment of the accumulated	1129
account of a member who dies before service retirement, a	1130
beneficiary, as determined in this section or section 145.43 of	1131
the Revised Code, may elect to forfeit the accumulated	1132
contributions and to substitute certain other benefits under	1133
division (A) or (B) of this section.	1134

(A) If a deceased member was eligible for a service	1135
retirement benefit as provided in section 145.33, 145.331, or	1136
145.34 of the Revised Code, a surviving spouse or other sole	1137
dependent beneficiary may elect to receive a monthly benefit	1138
computed as the joint-survivor benefit designated as "plan D" in	1139
section 145.46 of the Revised Code, which the member would have	1140
received had the member retired on the last day of the month of	1141
death and had the member at that time selected such joint-survivor	1142
plan. Payment shall begin with the month subsequent to the	1143
member's death, except that a surviving spouse who is less than	1144
sixty-five years old may defer receipt of such benefit. Upon	1145
receipt, the benefit shall be calculated based upon the spouse's	1146
age at the time of first payment, and shall accrue regular	1147
interest during the time of deferral.	1148

(B) If a deceased member had, except as provided in division	1149
(B)(7) of this section, at least one and one-half years of	1150
contributing service credit, with, except as provided in division	1151
(B)(7) of this section, at least one-quarter year of contributing	1152
service credit within the two and one-half years prior to the date	1153
of death, or was receiving at the time of death a disability	1154
benefit as provided in section 145.36, 145.361, or 145.37 of the	1155
Revised Code, qualified survivors who elect to receive monthly	1156
benefits shall receive the greater of the benefits provided in	1157
division (B)(1)(a) or (b) and (4) of this section as allocated in	1158
accordance with division (B)(5) of this section.	1159

(2) Benefits shall begin as qualified survivors meet	1183
eligibility requirements as follows:	1184

(a) A qualified spouse is the surviving spouse of the	1185
deceased member, who is age sixty-two, or regardless of age if the	1186
deceased member had ten or more years of Ohio service credit, or	1187
regardless of age if caring for a qualified child, or regardless	1188
of age if adjudged physically or mentally incompetent. A spouse	1189
of a member who died prior to August 27, 1970, whose eligibility	1190
was determined at the member's death, and who is physically or	1191
mentally incompetent on or after August 20, 1976, shall be paid	1192
the monthly benefit which that person would otherwise receive when	1193
qualified by age.	1194

(b) A qualified child is any child of the deceased member	1195
who has never been married and to whom one of the following	1196
applies:	1197

(i) Is under age eighteen, or under age twenty-two if the	1198
child is attending an institution of learning or training pursuant	1199
to a program designed to complete in each school year the	1200
equivalent of at least two-thirds of the full-time curriculum	1201
requirements of such institution and as further determined by	1202
board policy;	1203

(ii) Regardless of age, is adjudged physically or mentally	1204
incompetent at the time of the member's death.	1205

(c) A qualified parent is a dependent parent aged sixty-five	1206
or older or regardless of age if physically or mentally	1207
incompetent, a dependent parent whose eligibility was determined	1208
by the member's death prior to August 20, 1976, and who is	1209
physically or mentally incompetent on or after August 20, 1976,	1210
shall be paid the monthly benefit for which that person would	1211
otherwise qualify.	1212

(3) "Physically or mentally incompetent" as used in this	1213
section may be determined by a court of jurisdiction, or by a	1214
physician appointed by the retirement board. Incapability of	1215
making a living because of a physically or mentally disabling	1216
condition shall meet the qualifications of this division.	1217

(4) Benefits to a qualified survivor shall terminate upon	1218
ceasing to meet eligibility requirements as provided in this	1219
division, a first marriage, abandonment, adoption, or during	1220
active military service. Benefits to a deceased member's	1221
surviving spouse that were terminated under a former version of	1222
this section that required termination due to remarriage and were	1223
not resumed prior to September 16, 1998, shall resume on the first	1224
day of the month immediately following receipt by the board of an	1225
application on a form provided by the board.	1226

Upon the death of any subsequent spouse who was a member of	1227
the public employees retirement system, state teachers retirement	1228
system, or school employees retirement system, the surviving	1229
spouse of such member may elect to continue receiving benefits	1230
under this division, or to receive survivor's benefits, based upon	1231
the subsequent spouse's membership in one or more of the systems,	1232
for which such surviving spouse is eligible under this section or	1233
section 3307.66 or 3309.45 of the Revised Code. If the surviving	1234
spouse elects to continue receiving benefits under this division,	1235
such election shall not preclude the payment of benefits under	1236
this division to any other qualified survivor.	1237

Benefits shall begin or resume on the first day of the month	1238
following the attainment of eligibility and shall terminate on the	1239
first day of the month following loss of eligibility.	1240

(5)(a) If a benefit is payable under division (B)(1)(a) of	1241
this section, benefits to a qualified spouse shall be paid in the	1242
amount determined for the first qualifying survivor in division	1243
(B)(1)(a) of this section. All other qualifying survivors shall	1244
share equally in the benefit or remaining portion thereof.	1245

(b) All qualifying survivors shall share equally in a	1246
benefit payable under division (B)(1)(b) of this section, except	1247
that if there is a surviving spouse, the surviving spouse shall	1248
receive not less than the amount determined for the first	1249
qualifying survivor in division (B)(1)(a) of this section.	1250

(6) The beneficiary of a member who is also a member of the	1251
state teachers retirement system or of the school employees	1252
retirement system, must forfeit the member's accumulated	1253
contributions in those systems and in the public employees	1254
retirement system, if the beneficiary takes a survivor benefit.	1255
Such benefit shall be exclusively governed by section 145.37 of	1256
the Revised Code.	1257

(7) The restriction that the deceased member have at least	1258
one and one-half years of contributing service credit, with at	1259
least one-quarter year of contributing service within the two and	1260
one-half years prior to the date of death, does not apply if the	1261
deceased member was contributing toward benefits under division	1262
(B) or (C) of section 145.33 of the Revised Code at the time of	1263
death.	1264

(C)(1) Regardless of whether the member is survived by a	1265
spouse or designated beneficiary, if the public employees	1266
retirement system receives notice that a deceased member described	1267
in division (A) or (B) of this section has one or more qualified	1268
children, all persons who are qualified survivors under division	1269
(B) of this section shall receive monthly benefits as provided in	1270
division (B) of this section.	1271

If, after determining the monthly benefits to be paid under	1272
division (B) of this section, the system receives notice that	1273
there is a qualified survivor who was not considered when the	1274
determination was made, the system shall, notwithstanding section	1275
145.561 of the Revised Code, recalculate the monthly benefits with	1276
that qualified survivor included, even if the benefits to	1277
qualified survivors already receiving benefits are reduced as a	1278
result. The benefits shall be calculated as if the qualified	1279
survivor who is the subject of the notice became eligible on the	1280
date the notice was received and shall be paid to qualified	1281
survivors effective on the first day of the first month following	1282
the system's receipt of the notice.	1283

If the retirement system did not receive notice that a	1284
deceased member has one or more qualified children prior to making	1285
payment under section 145.43 of the Revised Code to a beneficiary	1286
as determined by the retirement system, the payment is a full	1287
discharge and release of the system from any future claims under	1288
this section or section 145.43 of the Revised Code.	1289

(2) If benefits under division (C)(1) of this section to all	1290
persons, or to all persons other than a surviving spouse or other	1291
sole beneficiary, terminate, there are no children under the age	1292
of twenty-two years, and the surviving spouse or beneficiary	1293
qualifies for benefits under division (A) of this section, the	1294
surviving spouse or beneficiary may elect to receive benefits	1295
under division (A) of this section. The benefits shall be	1296
effective on the first day of the month immediately following the	1297
termination.	1298

(D) The final average salary used in the calculation of a	1299
benefit payable pursuant to division (A) or (B) of this section to	1300
a survivor or beneficiary of a disability benefit recipient shall	1301
be adjusted for each year between the disability benefit's	1302
effective date and the recipient's date of death by the lesser of	1303
three per cent or the actual average percentage increase in the	1304
consumer price index prepared by the United States bureau of labor	1305
statistics (U.S. city average for urban wage earners and clerical	1306
workers: "all items 1982-84=100").	1307

(E) If the survivor benefits due and paid under this section	1308
are in a total amount less than the member's accumulated account	1309
that was transferred from the public employees' savings fund to	1310
the survivors' benefit fund, then the difference between the total	1311
amount of the benefits paid shall be paid to the beneficiary under	1312
section 145.43 of the Revised Code.	1313

Sec. 145.49. (A) Notwithstanding section 145.47 of the	1314
Revised Code, the:	1315

(1) The public employees retirmentretirement system shall	1316
be authorized to calculate the employee contribution rates	1317
separately for those public employees contributing toward benefits	1318
under division (B), (C), or (D)(2)(b), (c), or (d) of section	1319
145.33 of the Revised Code.	1320

(2) Each public employee contributing toward benefits under	1321
division (B)(2)(b)(a) of section 145.33 of the Revised Code shall	1322
contribute to the employees' savings fund the sum of oneten and	1323
one-tenth per cent of the employee's earnable salary and the	1324
employee contribution rate calculated for employees contributing	1325
toward benefits under division (B)(2)(a) of section 145.33 of the	1326
Revised Code, notwithstanding section 145.47 of the Revised Code.	1327

(B) Notwithstanding section 145.48 of the Revised Code, the	1328
public employees retirement system shall be authorized to	1329
calculate the employer contribution rates separately for those	1330
public employees contributing toward benefits under division (B),	1331
(C), or (D)(2)(a) of section 145.33 of the Revised Code or under	1332
division (B)(2)(b), (c), or (d) of that section, except that the	1333
employer contribution rate shall not exceed eighteen and one-tenth	1334
per cent of the earnable salaries of those employees.	1335

Sec. 3309.312.  (A) Not later than ninety days after	1336
September 16, 1998, a member who, on September 16, 1998, is	1337
employed full-timefull time pursuant to section 3345.04 of the	1338
Revised Code by the university of Akron as a state university law	1339
enforcement officer may elect to transfer to the public employees	1340
retirement system in accordance with this section. An election	1341
shall be made by giving notice to the school employees retirement	1342
system on a form provided by the school employees retirement board	1343
and shall be irrevocable.	1344

(B) When a member makes the election described in this	1345
section, the school employees retirement system shall notify the	1346
public employees retirement system. The school employees	1347
retirement system shall transfer all of the member's service	1348
credit to the public employees retirement system and shall certify	1349
to the public employees retirement system a copy of the member's	1350
records of service and contributions. For each year or portion of	1351
a year of credit, the school employees retirement system shall	1352
transfer to the public employees retirement system all of the	1353
following:	1354

(1) An amount equal to the accumulated contributions	1355
standing to the member's credit;	1356

(2) An amount equal to the total employer contributions paid	1357
on behalf of the member;	1358

(3) Any amount paid by the member or employer to the school	1359
employees retirement system for the purchase of service credit.	1360

At the request of the public employees retirement system, the	1361
employer of a member who makes an election under this section	1362
shall certify to the public employees retirement system the	1363
member's salary.	1364

(C) A member who elects to transfer to the public employees	1365
retirement system under this section shall make contributions and	1366
receive benefits in accordance with divisions (B) to (G)(F) of	1367
section 145.33 of the Revised Code.	1368

(D) A member who fails to make an election in accordance	1369
with this section shall remain a member of the school employees	1370
retirement system.	1371

Section 2.  That existing sections 145.01, 145.19, 145.191,	1372
145.321, 145.33, 145.35, 145.40, 145.45, 145.49, and 3309.312 of	1373
the Revised Code are hereby repealed.	1374

Section 3.  As used in this section, "regional transit	1375
authority police officer" and "state highway patrol police	1376
officer" have the same meanings as in section 145.01 of the	1377
Revised Code, as amended by this act.	1378

Not later than ninety days after the effective date of this	1379
act, each regional transit authority police officer and state	1380
highway patrol police officer who is a member of the Public	1381
Employees Retirement System shall indicate to the system, on a	1382
form supplied by the system, a choice of whether to receive	1383
benefits under division (A) of section 145.33 of the Revised Code	1384
or under division (B) of that section.	1385