SENATORS Spada, Blessing, Roberts, Austria, Hagan, Hottinger

To amend sections 742.21, 742.212, 742.214, 742.221,

1

742.23, 742.24, 742.251, 742.27, 742.37, 742.371,

2

742.375, 742.376, 742.3711, 742.3714, 742.3716,

3

742.44, 742.442, 742.443, 742.444, 742.52, 5505.01,

4

5505.15, 5505.162, 5505.163, and 5505.18 and to

5

enact section 5505.178 of the Revised Code to

6

revise the laws governing the Ohio Police and Fire

7

Pension Fund's Deferred Retirement Option Plan and

8

the State Highway Patrol Retirement System.

9

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

Section 1. That sections 742.21, 742.212, 742.214, 742.221,	10
742.23, 742.24, 742.251, 742.27, 742.37, 742.371, 742.375,	11
742.376, 742.3711, 742.3714, 742.3716, 742.44, 742.442, 742.443,	12
742.444, 742.52, 5505.01, 5505.15, 5505.162, 5505.163, and	13
5505.18 be amended and section 5505.178 of the Revised Code be	14
enacted to read as follows:	15

Sec.  742.21.  (A) As used in this section and sections	16
742.211 to 742.214 of the Revised Code:	17

(1) "Full-time service" has the meaning established by rule	18
of the board of trustees of the Ohio police and fire pension fund.	19

(2) "Military service credit" means credit for service in	20
the armed forces of the United States purchased or obtained from	21
the fund, the Cincinnati retirement system, or a non-uniform	22
retirement system.	23

(3) "Non-uniform retirement system" or "non-uniform system"	24
means the public employees retirement system, school employees	25
retirement system, or state teachers retirement system.	26

(B) Unless section 742.212 of the Revised Code applies and	27
except as provided in divisiondivisions (G) and (I) of this	28
section, in computing the pension and benefits payable under	29
section 742.37 or 742.39 of the Revised Code, the Ohio police and	30
fire pension fund shall give a member of the fund who is in the	31
active service of a police or fire department and, is not	32
receiving a pension or benefit payment from the fund, and is not a	33
participant in the deferred retirement option plan established	34
under section 742.43 of the Revised Code full credit for service	35
credit earned for full-time service as a member of the Cincinnati	36
retirement system or purchased or obtained as military service	37
credit if, for each year of service credit, the fund receives the	38
sum of the following:	39

(1) An amount, which shall be paid by the member, equal to	40
the amount withdrawn by the member from the retirement system that	41
is attributable to the year of service credit, with interest at a	42
rate established by the board on that amount from the date of	43
withdrawal to the date of payment;	44

(2) Interest, which shall be paid either by the member or	45
the Cincinnati retirement system, on the amount withdrawn by the	46
member from the Cincinnati retirement system that is attributable	47
to the year of service from the last day of the year for which the	48
service credit was earned or in which payment was made for	49
military service credit to the date the withdrawal was made;	50

(3) An amount, which shall be paid by either the member or	51
the Cincinnati retirement system, equal to the lesser of the	52
amount contributed by the employer to the Cincinnati retirement	53
system for the year of service or the amount that would have been	54
contributed by the employer for the year of service had the member	55
been employed by the member's current employer as a member of a	56
police or fire department at the time the credit was earned, with	57
interest on that amount from the last day of the year for which	58
the service credit was earned or in which payment was made for	59
military service credit to the date the payment is made;	60

(4) If the member became a member of the fund on or after	61
September 16, 1998, the amount, which shall be paid by the member,	62
determined pursuant to division (I) of this section.	63

Interest shall be determined in accordance with division (H)	64
of this section.	65

(C)(1) Except as provided in divisiondivisions (G) and (I)	66
of this section, in computing the pension and benefits payable	67
under section 742.37 or 742.39 of the Revised Code, the fund shall	68
give a member of the fund who is in the active service of a police	69
or fire department, is not receiving a pension or benefit payment	70
from the fund, and has withdrawn the member's contributions from	71
a non-uniform retirement system, and is not a participant in the	72
deferred retirement option plan established under section 742.43	73
of the Revised Code full credit for service credit earned for	74
full-time service as a member of the non-uniform system or	75
purchased or obtained as military service credit if, for each	76
year of service, the fund receives the sum of the following:	77

(a) An amount, which shall be paid by the member, equal to	78
the amount withdrawn by the member from the non-uniform system	79
that is attributable to that year of service credit, with interest	80
at a rate established by the board on that amount from the date of	81
withdrawal to the date of payment;	82

(b) If the member is seeking credit for service under the	83
public employees retirement system or state teachers retirement	84
system, an amount, which shall be paid by the member, equal to the	85
amount of any employer contributions and interest on employee	86
contributions the member received under section 145.40 or 3307.563	87
of the Revised Code;	88

(c) Interest, which shall be transferred by the non-uniform	89
system, on the amount withdrawn by the member from the	90
non-uniform system that is attributable to the year of service	91
from the last day of the year for which the service credit was	92
earned or in which payment was made for military service credit to	93
the date the withdrawal was made;	94

(d) An amount, which shall be transferred by the	95
non-uniform system, equal to the lesser of the amount contributed	96
by the employer to the non-uniform system for the year of service	97
or the amount that would have been contributed by the employer for	98
the year of service had the member been employed by the member's	99
current employer as a member of a police or fire department at the	100
time the credit was earned, with interest on that amount from	101
the last day of the year for which the service credit was earned	102
or in which payment was made for military service credit to the	103
date the transfer is made;	104

(e) If the member became a member of the fund on or after	105
September 16, 1998, the amount, which shall be paid by the member,	106
determined pursuant to division (I) of this section.	107

(2) On receipt of payment from the member, the fund shall	108
notify the non-uniform system, and on receipt of the notice, the	109
non-uniform system shall make the transfer. Interest shall be	110
determined in accordance with division (H) of this section.	111

(3) The amount transferred under division (C)(1) of this	112
section by the public employees retirement system or state	113
teachers retirement system shall not include any amount of	114
employer contributions and interest on employee contributions the	115
member received under section 145.40 or 3307.563 of the Revised	116
Code.	117

(D) Except as provided in divisiondivisions (G) and (I) of	118
this section, in computing the pension and benefits payable under	119
section 742.37 or 742.39 of the Revised Code, the fund shall give	120
a member of the fund who is in the active service of a police or	121
fire department, is not receiving a pension or benefit from the	122
fund, and has contributions on deposit with a non-uniform	123
retirement system, and is not a participant in the deferred	124
retirement option plan established under section 742.43 of the	125
Revised Code full credit for service credit earned for full-time	126
service as a member of the non-uniform system or service credit	127
purchased or obtained as military service credit if both of the	128
following occur:	129

(1) The non-uniform system transfers to the fund, for each	130
year of service, the sum of the following:	131

(a) The amount, contributed by the member or, in the case	132
of military service credit, paid by the member, that is	133
attributable to that service;	134

(b) An amount equal to the lesser of the amount contributed	135
by the employer to the non-uniform system for the year of service	136
or the amount that would have been contributed by the employer for	137
the year of service had the member been employed by the member's	138
current employer as a member of a police or fire department at the	139
time the credit was earned;	140

(c) Interest on the amounts specified in divisions (D)(1)(a)	141
and (b) of this section from the last day of the year for which	142
the service credit in the non-uniform system was earned or in	143
which military service credit was purchased or obtained to the	144
date the transfer is made.	145

(2) If the member became a member of the fund on or after	146
September 16, 1998, the member pays the amount determined pursuant	147
to division (I) of this section.	148

On receipt of a request from the member, the appropriate	149
non-uniform system shall make the transfer specified in division	150
(D)(1) of this section. Interest shall be determined in	151
accordance with division (H) of this section.	152

(E) Subject to board rules, a member of the fund may choose	153
to purchase in any one payment only part of the credit the member	154
is eligible to purchase under division (B) or (C)(1) of this	155
section.	156

(F) At the request of the fund, the non-uniform retirement	157
system or Cincinnati retirement system shall certify to the fund a	158
copy of the records of the service and contributions of a member	159
of the fund who seeks service credit under this section.	160

(G) A member of the fund is ineligible to receive credit	161
under this section for service that is used in the calculation of	162
any retirement benefit currently being paid or payable in the	163
future to the member under any other retirement program, service	164
rendered concurrently with any other period for which service	165
credit has already been granted, or for service credit that may be	166
transferred under section 742.214 of the Revised Code.	167

(H) Interest charged under this section shall be calculated	168
separately for each year of service credit. Unless otherwise	169
specified in this section, it shall be calculated at the lesser of	170
the actuarial assumption rate for that year of the fund or of the	171
system in which the credit was earned. The interest shall be	172
compounded annually.	173

The board may, by rule, establish procedures for the receipt	174
of service credit under this section.	175

(I) The amount to be paid pursuant to division (B)(4),	176
(C)(1)(e), or (D)(2) of this section or division (B)(2) or	177
(C)(2)(b) of section 742.212 of the Revised Code is the sum of the	178
following:	179

(1) An amount equal to the difference between the amount the	180
member paid as employee contributions for the service and the	181
amount the member would have paid had the member been employed by	182
the member's current employer as a member of a police or fire	183
department;	184

(2) An amount equal to the difference between the amount	185
paid or transferred under division (B)(3), (C)(1)(d), or (D)(1)(b)	186
of this section or division (B)(2) or (C)(2)(b) of section 742.212	187
of the Revised Code and the amount that would have been	188
contributed by the employer for the service had the member been	189
employed by the member's current employer as a member of a police	190
or fire department;	191

(3) Interest, determined in accordance with division (H) of	192
this section, on the amounts specified in divisions (I)(1) and (2)	193
of this section.	194

At the request of a member, in lieu of requiring payment of	195
all or part of the amount determined under this division the fund	196
may grant the member an amount of service credit under division	197
(B), (C), or (D) of this section or division (B) or (C) of section	198
742.212 of the Revised Code that is less than the amount for which	199
the member is eligible. The service credit granted shall be the	200
same percentage of the service credit for which the member is	201
eligible that the amount the fund receives under division (B),	202
(C), or (D) of this section or division (B) or (C) of section	203
742.212 of the Revised Code is of the total amount it would	204
receive under those divisions if the full amount determined under	205
this division was paid.	206

(J)(1) Except as provided in division (J)(2) of this section	207
and notwithstanding any contrary provision of this section, the	208
board shall, in computing a pension or benefit under section	209
742.37 or 742.39 of the Revised Code, give a member of the fund	210
who is not receiving a pension or disability benefit from the fund	211
full credit for service credit purchased under this section for	212
service that was less than full-time service if the member	213
provides evidence satisfactory to the board that, after receiving	214
written notice from the fund indicating that the member would be	215
permitted to purchase service credit for service that was less	216
than full-time, the member changed or ceased the member's	217
employment with the understanding that the credit identified in	218
the notice would be used in computing a pension or benefit. If	219
the board has canceled service credit purchased under this section	220
for service that was less than full-time service and the member	221
meets the requirements of division (J)(1) of this section, the	222
board shall restore the service credit on repayment to the fund of	223
the amount refunded to the member at the time of cancellation.	224

(2) If a member of the fund who is not receiving a pension	225
or disability benefit from the fund purchased credit under this	226
section for service that was less than full-time service and does	227
not meet the requirements of division (J)(1) of this section, the	228
board shall refund to the member any amounts paid to purchase the	229
credit, with interest at a rate determined by the board from the	230
date the member purchased the credit to the date of the refund.	231

(K) A member of the fund who has purchased service credit	232
under this section, or the member's estate, is entitled to a	233
refund of the amount or portion of the amount paid to purchase the	234
credit if the purchased credit or portion of credit does not	235
increase a pension or benefit payable under section 742.37 or	236
742.39 or calculated under section 742.442 of the Revised Code.	237
The refund cancels an equivalent amount of service credit.	238

(L) If a member or former member of the fund who is not a	239
current contributor and has not received a refund of accumulated	240
contributions elects to receive credit under section 145.295,	241
3307.761, or 3309.73 of the Revised Code for service for which	242
the member contributed to the fund or purchased as military	243
service credit, the fund shall transfer to the non-uniform	244
retirement system the amount specified in division (B) of section	245
145.295 of the Revised Code, division (C) of section 3307.761 of	246
the Revised Code, or division (B) of section 3309.73 of the	247
Revised Code.	248

(M) The board shall adopt rules establishing a payroll	249
deduction plan for the purchase of service credit under this	250
section. The rules shall meet the requirements described in	251
section 742.56 of the Revised Code.	252

Sec. 742.212.  (A) If the conditions described in division	253
(A) of section 742.211 of the Revised Code are met, a member of	254
the Ohio police and fire pension fund who is not receiving a	255
pension or benefit from the fund and is not a participant in the	256
deferred retirement option plan established under section 742.43	257
of the Revised Code is eligible to obtain credit for service as a	258
member of the Cincinnati retirement system under this section.	259

(B) A member of the fund who has contributions on deposit	260
with the Cincinnati retirement system shall, in computing years of	261
service credit, be given credit for service credit earned for	262
full-time service under the Cincinnati retirement system or	263
purchased or obtained as military service credit if both of the	264
following occur:	265

(1) For each year of service, the Cincinnati retirement	266
system transfers to the Ohio police and fire pension fund the sum	267
of the following:	268

(a) The amount, contributed by the member, or, in the case	269
of military service credit, paid by the member, that is	270
attributable to that service;	271

(b) An amount equal to the lesser of the amount contributed	272
by the employer to the Cincinnati retirement system for the year	273
of service or the amount that would have been contributed by the	274
employer for the year of service had the member been employed by	275
the member's current employer as a member of the Ohio police and	276
fire pension fund at the time the credit was earned;	277

(c) Interest on the amounts specified in divisions (B)(1)(a)	278
and (b) of this section from the last day of the year for which	279
the service credit was earned or in which payment was made for	280
military service credit to the date the transfer is made.	281

(2) If the member became a member of the fund on or after	282
September 16, 1998, the member pays the amount determined pursuant	283
to division (I) of section 742.21 of the Revised Code.	284

(C)(1) A member of the fund who has received a refund of the	285
member's contributions to the Cincinnati retirement system shall,	286
in computing years of service, be given credit for service credit	287
earned for full-time service under the Cincinnati retirement	288
system or purchased or obtained as military service credit if both	289
of the following occur:	290

(a) For each year of service, the Cincinnati retirement	291
system transfers to the Ohio police and fire pension fund the sum	292
of the following:	293

(i) Interest on the amount refunded to the member that is	294
attributable to the year of service from the last day of the year	295
for which the service credit was earned or in which payment was	296
made for military service credit to the date the refund was made;	297

(ii) An amount equal to the lesser of the amount contributed	298
by the employer to the Cincinnati retirement system for the year	299
of service or the amount that would have been contributed by the	300
employer for the year of service had the member been employed by	301
the member's current employer as a member of the Ohio police and	302
fire pension fund at the time the credit was earned, with interest	303
on that amount from the last day of the year for which the service	304
credit was earned to the date of the transfer.	305

(b) The member pays the sum of the following:

306

(i) An amount equal to the amount refunded by the Cincinnati	307
retirement system to the member for that year for contributions	308
and payments for military service credit, with interest at a rate	309
established by the board of trustees of the Ohio police and fire	310
pension fund on that amount from the date of the refund to the	311
date of payment;	312

(ii) An amount equal to the interest, if any, the member	313
received when the refund was made that is attributable to the year	314
of service;	315

(iii) If the member became a member of the fund on or after	316
September 16, 1998, an amount paid by the member determined	317
pursuant to division (I) of section 742.21 of the Revised Code.	318

(2) The amount transferred under division (C)(1)(a) of this	319
section shall not include any interest the Cincinnati retirement	320
system paid the person when it made the refund.	321

(D) Interest charged under this section shall be calculated	322
separately for each year of service credit. Unless otherwise	323
specified in this section, it shall be calculated at the lesser of	324
the actuarial assumption rate for that year of the fund or the	325
Cincinnati retirement system. The interest shall be compounded	326
annually.	327

(E) Subject to board rules, a member of the fund may choose	328
to purchase in any one payment only part of the credit the member	329
is eligible to purchase under this section.	330

Interest charged under this section shall be calculated separately	331
for each year of servise service credit. Unless otherwise	332
specified in this section, it shall be calculated at the lesser of	333
the actuarial assumption rate for that year of the fund or the	334
Cincinnati retirement system. The interest shall be compounded	335
annually.	336

(F) A member of the fund is ineligible to receive credit	337
under this section for service that is used in the calculation of	338
any retirement benefit currently paid or payable in the future to	339
the member, or service rendered concurrently with any other period	340
for which service credit has already been granted.	341

(G) At the request of the fund, the Cincinnati retirement	342
system shall certify to the fund a copy of the records of the	343
service and contributions of a member of the fund who seeks	344
service credit under this section.	345

On receipt of payment from the member under division	346
(C)(1)(b) of this section, the Ohio police and fire pension fund	347
shall notify the Cincinnati retirement system. On receipt of the	348
notice, the Cincinnati retirement system shall transfer the amount	349
described in division (C)(1)(a) of this section.	350

(H) A member of the fund who has purchased service credit	351
under this section, or the member's estate, is entitled to a	352
refund of the amount or portion of the amount paid to purchase the	353
credit if the purchased credit does not increase a pension or	354
benefit payable under section 742.37 or 742.39 or calculated under	355
section 742.442 of the Revised Code. The refund cancels an	356
equivalent amount of service credit.	357

(I) The board shall adopt rules establishing a payroll	358
deduction plan for purchase of service credit under this section.	359
The rules shall meet the requirements described in section 742.56	360
of the Revised Code.	361

Sec. 742.214. (A) As used in this section, "transferred	362
service credit" means service credit purchased or obtained under	363
section 145.295, 145.2913, 3307.761, 3307.765, 3309.73, or	364
3309.731 of the Revised Code prior to the date a member commenced	365
the employment covered by the Ohio police and fire pension fund	366
for which the member is currently contributing to the fund.	367

(B) A member of the Ohio police and fire pension fund who is	368
in the active service of a police or fire department and, has	369
contributions on deposit with, but is no longer contributing to, a	370
non-uniform retirement system, and is not a participant in the	371
deferred retirement option plan established under section 742.43	372
of the Revised Code shall, in computing years of service, be given	373
full credit for transferred service credit if a transfer to the	374
Ohio police and fire pension fund is made under this section. At	375
the request of a member, the non-uniform system shall transfer to	376
the Ohio police and fire pension fund the sum of the following:	377

(1) An amount equal to the amounts transferred to the	378
non-uniform system under section 145.295, 145.2913, 3307.761,	379
3307.765, 3309.73, or 3309.731 of the Revised Code;	380

(2) Interest, determined as provided in division (E) of this	381
section, on the amount specified in division (B)(1) of this	382
section for the period from the last day of the year in which the	383
transfer under section 145.295, 145.2913, 3307.761, 3307.765,	384
3309.73, or 3309.731 of the Revised Code was made to the date a	385
transfer is made under this section.	386

(C) A member of the fund with at least eighteen months of	387
contributing service credit with the Ohio police and fire pension	388
fund who is in the active service of a police or fire department,	389
and has received a refund of contributions to a non-uniform	390
retirement system, and is not a participant in the deferred	391
retirement option plan established under section 742.43 of the	392
Revised Code shall, in computing years of service, be given full	393
credit for transferred service credit if, for each year of	394
service, the Ohio police and fire pension fund receives the sum of	395
the following:	396

(1) An amount, which shall be paid by the member, equal to	397
the amount refunded by the non-uniform system to the member for	398
that year for transferred service credit, with interest on that	399
amount from the date of the refund to the date a payment is made	400
under this section;	401

(2) Interest, which shall be transferred by the non-uniform	402
system, on the amount refunded to the member for the period from	403
the last day of the year in which the transfer under section	404
145.295, 145.2913, 3307.761, 3307.765, 3309.73, or 3309.731 of the	405
Revised Code was made to the date the refund was made;	406

(3) If the non-uniform system retained any portion of the	407
amount transferred under section 145.295, 145.2913, 3307.761,	408
3307.765, 3309.73, or 3309.731 of the Revised Code, an amount,	409
which shall be transferred by the non-uniform system, equal to the	410
amount retained, with interest on that amount for the period from	411
the last day of the year in which the transfer under section	412
145.295, 145.2913, 3307.761, 3307.765, 3309.73, or 3309.731 of the	413
Revised Code was made to the date a transfer is made under this	414
section.	415

On receipt of payment from the member, the Ohio police and	416
fire pension fund shall notify the non-uniform system, which, on	417
receipt of the notice, shall make the transfer required by this	418
division. Interest shall be determined as provided in division	419
(E) of this section.	420

(D) Service credit purchased or obtained under this section	421
shall be used in computing the pension and benefits payable under	422
section 742.37 or 742.39 of the Revised Code. A member may choose	423
to purchase only part of the credit the member is eligible to	424
purchase under division (C) of this section in any one payment,	425
subject to rules adopted by the board of trustees of the Ohio	426
police and fire pension fund. A member is ineligible to purchase	427
or obtain service credit under this section for service to be used	428
in the calculation of any retirement benefit currently being paid	429
or payable to the member in the future under any other retirement	430
program or for service credit that may be purchased or obtained	431
under section 742.21 of the Revised Code.	432

(E) Interest charged under this section shall be calculated	433
separately for each year of service credit at the lesser of the	434
actuarial assumption rate for that year of the Ohio police and	435
fire pension fund or of the non-uniform retirement system to which	436
the credit was transferred under section 145.295, 145.2913,	437
3307.761, 3307.765, 3309.73, or 3309.731 of the Revised Code. The	438
interest shall be compounded annually.	439

(F) Any amounts transferred or paid under divisions (B) and	440
(C) of this section that are attributable to contributions made by	441
the member or to amounts paid to purchase service credit shall be	442
credited to the police officers' contribution fund or	443
firefighters' contribution fund created under section 742.59 of	444
the Revised Code, as applicable. Any remaining amounts shall be	445
credited to one or more of the funds created under that section as	446
determined by the board.	447

(G) At the request of the Ohio police and fire pension fund,	448
the non-uniform retirement system shall certify to the fund a copy	449
of the records of the service and contributions of a member of the	450
fund who seeks service credit under this section. The non-uniform	451
retirement system shall specify the portions of the amounts	452
transferred that are attributable to employee contributions,	453
employer contributions, and interest.	454

(H) If a member of the fund who is not a current contributor	455
elects to receive service credit under section 145.2913, 3307.765,	456
or 3309.731 of the Revised Code for transferred service credit, as	457
defined in those sections, the fund shall transfer to the	458
non-uniform retirement system, as applicable, the amount specified	459
in division (B) or (C) of section 145.2913, division (B) or (C) of	460
section 3307.765, or division (B) or (C) of section 3309.731 of	461
the Revised Code.	462

(I) The board may adopt rules to implement this section.

463

Sec. 742.221.  A member of the Ohio police and fire pension	464
fund who, during the period of employment as a member of a police	465
or fire department, is removed from active pay status due to	466
pregnancy or a medical disability leave not exceeding one year for	467
each such leave,and who is not a participant in the deferred	468
retirement option plan established under section 742.43 of the	469
Revised Code shall, in computing years of active service in such	470
department under division (C) of section 742.37 or section 742.39	471
of the Revised Code, be given full credit for time for which	472
contributions were not made during such leave of absence if all of	473
the following conditions are met:	474

(A) The leave was approved by the member's employing	475
authority.	476

(B) During the period of the leave the member was not	477
entitled to receive disability benefits from the fund.	478

(C) The member pays into the fund an amount equal to the	479
employee contributions that would have been deducted from the base	480
pay had the member remained on active pay status, plus interest	481
compounded annually from the date the leave commenced to the date	482
of payment. The rate of interest shall be determined by the board	483
of trustees of the Ohio police and fire pension fund.	484

Sec. 742.23.  A member of the fund who is an employee of the	485
police department of a municipal corporation and, who has resigned	486
or has been honorably discharged from membership in the fire	487
department of the same municipal corporation, and who is not a	488
participant in the deferred retirement option plan established	489
under section 742.43 of the Revised Code shall, in computing years	490
of service in the police department under section 742.37 or 742.39	491
of the Revised Code, be given full credit for time served in such	492
fire department, provided the member has paid into the Ohio police	493
and fire pension fund a sum equal to that which the member would	494
have been required to pay, under former section 741.12 and section	495
742.31 of the Revised Code, as a member of such fire department	496
during the years for which service credit is claimed had the	497
member been contributing a percentage of the member's salary to a	498
firemen's relief and pension fund or to the Ohio police and fire	499
pension fund as provided by such sections during such years.	500

Sec. 742.24.  A member of the fund who is an employee of the	501
fire department of a municipal corporation and, who has resigned	502
or has been honorably discharged from membership in the police	503
department of the same municipal corporation, and who is not a	504
participant in the deferred retirement option plan established	505
under section 742.43 of the Revised Code shall, in computing years	506
of service in the fire department under section 742.37 or 742.39	507
of the Revised Code, be given full credit for the time served in	508
such police department, provided the member has paid into the Ohio	509
police and fire pension fund a sum equal to that which the member	510
would have been required to pay, under former section 741.43 and	511
section 742.31 of the Revised Code, as a member of such police	512
department during the years for which service credit is claimed	513
had the member been contributing a percentage of the member's	514
salary to a police relief and pension fund or to the Ohio police	515
and fire pension fund, as provided by such sections during such	516
years.	517

Sec. 742.251.  (A) A member of the Ohio police and fire	518
pension fund who is not a participant in the deferred retirement	519
option plan established under section 742.43 of the Revised Code,	520
in computing years of active service under division (C) of section	521
742.37 or section 742.39 of the Revised Code, shall be given full	522
credit for full-time out-of-state or federal service, other than	523
military service, purchased under this section. A member may	524
purchase credit for such service if all of the following	525
conditions are met:	526

(1) The service was rendered as an employee of an entity of	527
state or local government, or of an entity of the United States	528
government;	529

(2) The member is eligible to retire under this chapter or	530
will become eligible to retire as a result of purchasing the	531
credit;	532

(3) The member agrees to retire within ninety days after	533
receiving notice of the amount determined under division (B) of	534
this section.	535

(B) On receipt of a request from a member eligible to	536
purchase credit under this section, the fund shall obtain from its	537
actuary certification of the amount of the additional liability to	538
the fund for each year of credit the member is eligible to	539
purchase and shall notify the member of that amount. For each year	540
of credit purchased, the member shall pay to the fund an amount	541
equal to the additional liability resulting from the purchase of	542
credit for that year. Payment shall be made in full at the time	543
of purchase.	544

(C) The number of years of service purchased under this	545
section shall not exceed five.	546

(D) A member may not purchase credit under this section for	547
service that is used in the calculation of any public or private	548
retirement benefit, other than federal social security benefits,	549
currently being paid or payable in the future to the member.	550

(E) If the member does not retire within ninety days after	551
purchasing credit under this section, the fund shall withdraw the	552
credit and refund the amount paid by the member.	553

Sec. 742.27.  (A) As used in this section, "lay off" means	554
to cease to employ a person pursuant to sections 124.321 to	555
124.328 of the Revised Code or pursuant to any similar provisions	556
that apply to the person under any of the following:	557

(1) A collective bargaining agreement entered into under	558
Chapter 4117. of the Revised Code;	559

(2) Any ordinance, resolution, contract, agreement, policy,	560
or procedure governing employment.	561

(B) A member of the Ohio police and fire pension fund who,	562
during employment as a member of a police or fire department, is	563
removed from active pay status by being laid off by the member's	564
employer, shall, in computing years of active service under	565
division (C) of section 742.37 or section 742.39 of the Revised	566
Code, be given full credit for time for which contributions were	567
not made during the period the member was laid off, if all of the	568
following conditions are met:	569

(1) During the time the member was laid off, the member was	570
not entitled to receive disability benefits from the fund.	571

(2) During the time the member was laid off, the member did	572
not render any service that is used in the calculation of any	573
public or private retirement benefit, except any federal social	574
security retirement benefit, currently being paid or payable in	575
the future to the member.	576

(3) The fund receives the amount determined under division	577
(C) of this section from the member, the member's employer, or the	578
member and the employer.	579

(4) At the time the fund receives the amount described in	580
division (B)(3) of this section, the member is not a participant	581
in the deferred retirement option plan established under section	582
742.43 of the Revised Code.	583

The total amount of service purchased by any member under	584
this section shall not exceed two years. A member may choose to	585
purchase only part of such credit in any one payment, subject to	586
board rules.	587

(C) The amount paid for the credit purchased under this	588
section shall be an amount equal to the additional liability to	589
the fund resulting from the purchase of the credit, as determined	590
by an actuary employed by the board of trustees of the fund.	591

(D) The board shall have final authority to determine and	592
fix the amount of the payment for credit purchased under this	593
section. The employer may pay all or part of the payment.	594

(E) The board shall adopt rules for the implementation of	595
this section.	596

Sec. 742.37.  The board of trustees of the Ohio police and	597
fire pension fund shall adopt rules for the management of the fund	598
and for the disbursement of benefits and pensions as set forth in	599
this section and section 742.39 of the Revised Code. Any payment	600
of a benefit or pension under this section is subject to the	601
provisions of section 742.461 of the Revised Code. Notwithstanding	602
any other provision of this section, no pension or benefit paid or	603
determined under division (B) or (C) of this section or section	604
742.39 of the Revised Code shall exceed the limit established by	605
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	606
2085, 26 U.S.C.A. 415, as amended.	607

(A) Persons who were receiving benefit or pension payments	608
from a police relief and pension fund established under former	609
section 741.32 of the Revised Code, or from a firemen's relief and	610
pension fund established under former section 521.02 or 741.02 of	611
the Revised Code, at the time the assets of the fund were	612
transferred to the Ohio police and fire pension fund, known at	613
that time as the police and firemen's disability and pension fund,	614
shall receive benefit and pension payments from the Ohio police	615
and fire pension fund in the same amount and subject to the same	616
conditions as such payments were being made from the former fund	617
on the date of the transfer.	618

(B) A member of the fund who, pursuant to law, elected to	619
receive benefits and pensions from a police relief and pension	620
fund established under former section 741.32 of the Revised Code,	621
or from a firemen's relief and pension fund established under	622
former section 741.02 of the Revised Code, in accordance with the	623
rules of the fund governing the granting of benefits or pensions	624
therefrom in force on April 1, 1947, shall receive benefits and	625
pensions from the Ohio police and fire pension fund in accordance	626
with such rules; provided, that any member of the fund who is not	627
receiving a benefit or pension from the fund on August 12, 1975,	628
may, upon application for a benefit or pension to be received on	629
or after August 12, 1975, elect to receive a benefit or pension in	630
accordance with division (C) of this section.	631

(C) Members of the fund who have not elected to receive	632
benefits and pensions from a police relief and pension fund or a	633
firemen's relief and pension fund in accordance with the rules of	634
the fund in force on April 1, 1947, shall receive pensions and	635
benefits in accordance with the following provisions:	636

(1) A member of the fund who has completed twenty-five years	637
of active service in a police or fire department and has attained	638
forty-eight years of age may, at the member's election, retire	639
from the police or fire department. Except while participating in	640
the deferred retirement option plan established under section	641
742.43 of the Revised Code, uponUpon notifying the board in	642
writing of the election, the member shall receive an annual	643
pension, payable in twelve monthly installments, in an amount	644
equal to a percentage of the member's average annual salary. The	645
percentage shall be the sum of two and one-half per cent for each	646
of the first twenty years the member was in the active service of	647
the department, plus two per cent for each of the twenty-first to	648
twenty-fifth years the member was in the active service of the	649
department, plus one and one-half per cent for each year in excess	650
of twenty-five years the member was in the active service of the	651
department. The annual pension shall not exceed seventy-two per	652
cent of the member's average annual salary.	653

A member who completed twenty-five years of active service,	654
has resigned or been discharged, and has left the sum deducted	655
from the member's salary on deposit in the pension fund shall,	656
upon attaining forty-eight years of age, be entitled to receive a	657
normal service pension benefit computed and paid under division	658
(C)(1) of this section.	659

While participating in the deferred retirement option plan	660
established under section 742.43 of the Revised Code, a member	661
shall not be considered to have elected retirement under division	662
(C)(1) of this section. On notifying the board under division	663
(B)(1) of section 742.444 of the Revised Code of the member's	664
election to terminate active service, a member described in	665
division (B) of that section shall receive an annual pension under	666
division (C)(1) of this section calculated in accordance with	667
section 742.442 of the Revised Code and rules that shall be	668
adopted by the board of trustees of the Ohio police and fire	669
pension fund.	670

(2) A member of the fund who has served fifteen or more	671
years as an active member of a police or fire department and who	672
voluntarily resigns or is discharged from the department for any	673
reason other than dishonesty, cowardice, intemperate habits, or	674
conviction of a felony, shall receive an annual pension, payable	675
in twelve monthly installments, in an amount equal to one and	676
one-half per cent of the member's average annual salary multiplied	677
by the number of full years the member was in the active service	678
of the department. The pension payments shall not commence until	679
the member has attained the age of forty-eight years and until	680
twenty-five years have elapsed from the date on which the member	681
became a full-time regular police officer or firefighter in the	682
department.	683

(3) A member of the fund who has completed fifteen or more	684
years of active service in a police or fire department and who has	685
attained sixty-two years of age, may retire from the department	686
and, upon notifying the board in writing of the election to	687
retire, shall receive an annual pension, payable in twelve monthly	688
installments, in an amount equal to a percentage of the member's	689
average annual salary. The percentage shall be the sum of two and	690
one-half per cent for each of the first twenty years the member	691
was in the active service of the department, plus two per cent for	692
each of the twenty-first to twenty-fifth years the member was in	693
the active service of the department, plus one and one-half per	694
cent for each year in excess of twenty-five years the member was	695
in the active service of the department. The annual pension shall	696
not exceed seventy-two per cent of the member's average annual	697
salary.	698

(4) With the exception of those persons who may make	699
application for benefits as provided in section 742.26 of the	700
Revised Code, no person receiving a pension or other benefit under	701
division (C) of this section on or after July 24, 1986, shall be	702
entitled to apply for any new, changed, or different benefit.	703

If a member covered by division (C) of this section or	704
section 742.38 of the Revised Code dies prior to the time the	705
member has received a payment and leaves a surviving spouse or	706
dependent child, the surviving spouse or dependent child shall	707
receive a pension under division (D) or (E) of this section.	708

(D)(1) Except as provided in division (D)(2) of this	709
section, a surviving spouse of a deceased member of the fund or a	710
surviving spouse described in division (D)(4) of this section	711
shall receive a monthly pension as follows:	712

(a) For the period beginning July 1, 1999, and ending June	713
30, 2000, five hundred fifty dollars;	714

(b) For the period beginning July 1, 2000, and ending June	715
30, 2002, five hundred fifty dollars plus an amount determined by	716
multiplying five hundred fifty dollars by the average percentage	717
change in the consumer price index, not exceeding three per cent,	718
as determined by the board under former section 742.3716 of the	719
Revised Code;	720

(c) For the period beginning July 1, 2002, and the period	721
beginning the first day of July of each year thereafter and	722
continuing for the following twelve months, an amount equal to the	723
monthly amount paid during the prior twelve-month period plus	724
sixteen dollars and fifty cents.	725

(2) A surviving spouse of a deceased member of the fund	726
shall receive a monthly pension of four hundred ten dollars if the	727
surviving spouse is eligible for a benefit under division (B) or	728
(D) of section 742.63 of the Revised Code. If the surviving	729
spouse ceases to be eligible for a benefit under division (B) or	730
(D) of section 742.63 of the Revised Code, the pension shall be	731
increased, effective the first day of the first month following	732
the day on which the surviving spouse ceases to be eligible for	733
the benefit, to the amount it would be under division (D)(1) of	734
this section had the spouse never been eligible for a benefit	735
under division (B) or (D) of section 742.63 of the Revised Code.	736

(3) A pension paid under this division shall continue during	737
the natural life of the surviving spouse. Benefits to a deceased	738
member's surviving spouse that were terminated under a former	739
version of this section that required termination due to	740
remarriage and were not resumed prior to September 16, 1998, shall	741
resume on the first day of the month immediately following receipt	742
by the board of an application on a form provided by the board.	743

(4) A surviving spouse of a deceased member of or contributor	744
to a fund established under former Chapter 521. or 741. of the	745
Revised Code whose benefit or pension was terminated or not paid	746
due to remarriage shall receive a monthly pension under division	747
(D)(1) of this section.	748

The pension shall commence on the first day of the month	749
immediately following receipt by the board of a completed	750
application on a form provided by the board and evidence	751
acceptable to the board that at the time of death the deceased	752
spouse was a member of or contributor to a police or firemen's	753
relief and pension fund established under former Chapter 521. or	754
741. of the Revised Code and that the surviving spouse's benefits	755
were terminated or not granted due to remarriage.	756

(E)(1) Each surviving child of a deceased member of the	757
fund shall receive a monthly pension until the child attains the	758
age of eighteen years, or marries, whichever event occurs first. A	759
pension under this division, however, shall continue to be payable	760
to a child under age twenty-two who is a student in and attending	761
an institution of learning or training pursuant to a program	762
designed to complete in each school year the equivalent of at	763
least two-thirds of the full-time curriculum requirements of the	764
institution, as determined by the board. If any surviving child,	765
regardless of age at the time of the member's death, because of	766
physical or mental disability, is totally dependent upon the	767
deceased member for support at the time of death, the child shall	768
receive a monthly pension under this division during the child's	769
natural life or until the child has recovered from the disability.	770

(2) An eligible surviving child shall receive a monthly	771
pension as follows:	772

(a) For the period beginning July 1, 2001, and ending June	773
30, 2002, a monthly pension of one hundred fifty dollars plus the	774
cost of living increase provided for in former section 742.3720 of	775
the Revised Code;	776

(b) For the period beginning July 1, 2002, and ending June	777
30, 2003, one hundred sixty-three dollars and fifty cents;	778

(c) For the period beginning July 1, 2003, and the period	779
beginning the first day of each July thereafter and continuing for	780
the following twelve months, an amount equal to the monthly amount	781
paid during the prior twelve-month period plus four dollars and	782
fifty cents.	783

(F)(1) If a deceased member of the fund leaves no surviving	784
spouse or surviving children, but leaves one or two parents	785
dependent upon the deceased member for support, each parent shall	786
be paid a monthly pension. The pensions provided for in this	787
division shall be paid during the natural life of the surviving	788
parents, or until dependency ceases, or until remarriage,	789
whichever event occurs first.	790

(2) Each eligible surviving parent shall be paid a monthly	791
pension as follows:	792

(a) For the period ending June 30, 2002, one hundred six	793
dollars for each parent or two hundred twelve dollars for a sole	794
dependent parent;	795

(b) For the period beginning July 1, 2002, and ending June	796
30, 2003, one hundred nine dollars for each parent or two hundred	797
eighteen dollars for a sole dependent parent;	798

(c) For the period beginning July 1, 2003, and the first day	799
of each July thereafter and continuing for the following twelve	800
months, an amount equal to the monthly amount paid during the	801
prior twelve-month period plus three dollars for each parent or	802
six dollars for a sole dependent parent.	803

(G) Subject to the provisions of section 742.461 of the	804
Revised Code, a member of the fund who voluntarily resigns or is	805
removed from active service in a police or fire department is	806
entitled to receive an amount equal to the sums deducted from the	807
member's salary and credited to the member's account in the fund,	808
except that a member receiving a disability benefit or service	809
pension is not entitled to receive any return of contributions to	810
the fund.	811

(H) On and after January 1, 1970, all pensions shall be	812
increased in accordance with the following provisions:	813

(1) A member of the fund who retired prior to January 1,	814
1967, has attained age sixty-five on January 1, 1970, and was	815
receiving a pension on December 31, 1969, pursuant to division (B)	816
or (C)(1) of this section or former division (C)(2), (3), (4), or	817
(5) of this section, shall have the pension increased by ten per	818
cent.	819

(2) The monthly pension payable to eligible surviving	820
spouses under division (D) of this section shall be increased by	821
forty dollars for each surviving spouse receiving a pension on	822
December 31, 1969.	823

(3) The monthly pension payable to each eligible child under	824
division (E) of this section shall be increased by ten dollars for	825
each child receiving a pension on December 31, 1969.	826

(4) The monthly pension payable to each eligible dependent	827
parent under division (F) of this section shall be increased by	828
thirty dollars for each parent receiving a pension on December 31,	829
1969.	830

(5) A member of the fund, including a survivor of a member,	831
who is receiving a pension in accordance with the rules governing	832
the granting of pensions and benefits in force on April 1, 1947,	833
that provide an increase in the original pension from time to time	834
pursuant to changes in the salaries of active members, shall not	835
be eligible for the benefits provided in this division.	836

(I) On and after January 1, 1977, a member of the fund who	837
was receiving a pension or benefit on December 31, 1973, under	838
division (A), (B), (C)(1), or former division (C)(2) or (7) of	839
this section shall have the pension or benefit increased as	840
follows:	841

(1) If the member's annual pension or benefit is less than	842
two thousand seven hundred dollars, it shall be increased to three	843
thousand dollars.	844

(2) If the member's annual pension or benefit is two	845
thousand seven hundred dollars or more, it shall be increased by	846
three hundred dollars.	847

The following shall not be eligible to receive increased	848
pensions or benefits as provided in this division:	849

(a) A member of the fund who is receiving a pension or	850
benefit in accordance with the rules in force on April 1, 1947,	851
governing the granting of pensions and benefits, which provide an	852
increase in the original pension or benefit from time to time	853
pursuant to changes in the salaries of active members;	854

(b) A member of the fund who is receiving a pension or	855
benefit under division (A) or (B) of this section, based on funded	856
volunteer or funded part-time service, or off-duty disability, or	857
partial on-duty disability, or early vested service;	858

(c) A member of the fund who is receiving a pension under	859
division (C)(1) of this section, based on funded volunteer or	860
funded part-time service.	861

(J) On and after July 1, 1977, a member of the fund who was	862
receiving an annual pension or benefit on December 31, 1973,	863
pursuant to division (B) of this section, based upon partial	864
disability, off-duty disability, or early vested service, or	865
pursuant to former division (C)(3), (5), or (6) of this section,	866
shall have such annual pension or benefit increased by three	867
hundred dollars.	868

The following are not eligible to receive the increase	869
provided by this division:	870

(1) A member of the fund who is receiving a pension or	871
benefit in accordance with the rules in force on April 1, 1947,	872
governing the granting of pensions and benefits, which provide an	873
increase in the original pension or benefit from time to time	874
pursuant to changes in the salaries of active members;	875

(2) A member of the fund who is receiving a pension or	876
benefit under division (B) or (C)(2) of this section or former	877
division (C)(3), (5), or (6) of this section based on volunteer or	878
part-time service.	879

(K)(1) Except as otherwise provided in this division, every	880
person who on July 24, 1986, is receiving an age and service or	881
disability pension, allowance, or benefit pursuant to this chapter	882
in an amount less than thirteen thousand dollars a year that is	883
based upon an award made effective prior to February 28, 1984,	884
shall receive an increase of six hundred dollars a year or the	885
amount necessary to increase the pension or benefit to four	886
thousand two hundred dollars after all adjustments required by	887
this section, whichever is greater.	888

(2) Division (K)(1) of this section does not apply to the	889
following:	890

(a) A member of the fund who is receiving a pension or	891
benefit in accordance with rules in force on April 1, 1947, that	892
govern the granting of pensions and benefits and that provide an	893
increase in the original pension or benefit from time to time	894
pursuant to changes in the salaries of active members;	895

(b) A member of the fund who is receiving a pension or	896
benefit based on funded volunteer or funded part-time service.	897

(L) On and after July 24, 1986:

898

(1) The pension of each person receiving a pension under	899
division (D) of this section on July 24, 1986, shall be increased	900
to three hundred ten dollars per month.	901

(2) The pension of each person receiving a pension under	902
division (E) of this section on July 24, 1986, shall be increased	903
to ninety-three dollars per month.	904

Sec. 742.371.  A member of the fund who is in the active	905
service of a police or fire department and, is not receiving a	906
pension or benefit payment from the Ohio police and fire pension	907
fund, and is not a participant in the deferred retirement option	908
plan established under section 742.43 of the Revised Code shall,	909
in computing years of active service in such department under	910
division (C) of section 742.37 or section 742.39 of the Revised	911
Code, be given credit for time previously served in the active	912
full-time service of an Ohio police or fire department, provided	913
both of the following occur:	914

(A) The member was a member of a police or firemen's relief	915
and pension fund or the Ohio police and fire pension fund during	916
the entire period for which such active service credit is	917
claimed.	918

(B) The member pays into the Ohio police and fire pension	919
fund the amount received by the member under division (I) of	920
former section 521.11, division (I) of former section 741.18,	921
division (I) of former section 741.49, or division (G) of section	922
742.37 of the Revised Code, with interest compounded annually	923
thereon at a rate to be determined by the board of trustees of the	924
Ohio police and fire pension fund, from the date of such receipt	925
to the date of such deposit.	926

Subject to board rules, a member may choose to purchase in	927
any one payment only part of the credit that may be purchased	928
under this section.	929

At the request of the fund, the employer shall certify to the	930
board the dates the member was in the active service of the police	931
or fire department.	932

Sec. 742.375.  Except for service credit transferred under	933
section 742.214 of the Revised Code, a member of the fund who is	934
in the active service of a police or fire department and, is not	935
receiving a pension or benefit payment from the Ohio police and	936
fire pension fund, and is not a participant in the deferred	937
retirement option plan established under section 742.43 of the	938
Revised Code shall, in computing years of active service in such	939
department under division (C) of section 742.37 or section 742.39	940
of the Revised Code, be given full credit for the time served in	941
the state highway patrol retirement system, provided such member	942
pays into the Ohio police and fire pension fund the amount	943
received by the member under section 5505.19 of the Revised Code,	944
with interest compounded annually thereon at a rate to be	945
determined by the board of trustees of the Ohio police and fire	946
pension fund from the date of such receipt to the date of such	947
deposit. The member may choose to purchase only part of such	948
credit in any one payment, subject to board rules.	949

Upon certification by the board to the board of the state	950
highway patrol retirement system of such payment by the member of	951
the fund, the state highway patrol retirement board shall pay from	952
the employer's accumulation fund under division (C) of section	953
5505.03 of the Revised Code to the Ohio police and fire pension	954
fund an amount equal to the payment of the member of the fund.	955

Sec. 742.376.  A member of the fund who is in the active	956
service of a police or fire department and, is not receiving a	957
pension or benefit payment from the Ohio police and fire pension	958
fund, and is not a participant in the deferred retirement option	959
plan established under section 742.43 of the Revised Code shall,	960
in computing years of active service in such department under	961
division (C) of section 742.37 or section 742.39 of the Revised	962
Code, be given full credit for service as a full-time police	963
officer or firefighter, provided that all of the following occur:	964

(A) Such service was rendered prior to January 1, 1967.

965

(B) The municipal corporation or township, at the time such	966
service was rendered, had not established a police or firemen's	967
relief and pension fund to which the member could otherwise have	968
made pension contributions.	969

(C) The member was enrolled in the public employees	970
retirement system, contributed thereto, and has withdrawn the	971
member's retirement contributions.	972

(D) The member pays into the Ohio police and fire pension	973
fund the amount withdrawn by the member from the public employees	974
retirement system, with interest compounded annually thereon at a	975
rate to be determined by the board from the date of such	976
withdrawal to the date of deposit. The member may choose to	977
purchase only part of such credit in any one payment, subject to	978
board rules.	979

Purchase of such credit in the Ohio police and fire pension	980
fund shall forever bar the member from reinstating such credit in	981
the public employees retirement system.	982

Sec. 742.3711.  (A) On application for retirement as	983
provided in section 742.37 of the Revised Code, a member of the	984
fund may elect to receive a retirement allowance payable	985
throughout the member's life, or may elect, on the application for	986
retirement, to receive the actuarial equivalent of the member's	987
retirement allowance in a lesser amount payable for life and	988
continuing after death to a surviving designated beneficiary under	989
one of the following optional plans, provided the amount payable	990
to the beneficiary shall not exceed the amount payable to the	991
retiring member of the fund, and is certified by the actuary	992
engaged by the board of trustees of the Ohio police and fire	993
pension fund to be the actuarial equivalent of the member's	994
retirement allowance and is approved by the board.	995

(1) Option 1. The member's lesser retirement allowance	996
shall be paid for life to the sole beneficiary designated at the	997
time of the member's retirement.	998

(2) Option 2. One-half or some other portion of the	999
member's lesser retirement allowance shall be paid for life to the	1000
sole beneficiary designated at the time of the member's	1001
retirement.	1002

(3) Option 3. Upon the member's death before the expiration	1003
of a certain period from the retirement date and elected by the	1004
member and approved by the retirement board, the member's lesser	1005
retirement allowance shall be continued for the remainder of that	1006
period to the beneficiary the member has nominated by written	1007
designation and filed with the retirement board.	1008

Should the nominated beneficiary designated in writing become	1009
deceased prior to the expiration of the guarantee period, then for	1010
the purpose of completing payment for the remainder of the	1011
guarantee period, the present value of such payments shall be paid	1012
to the estate of the beneficiary last receiving.	1013

(B)(1) On or after February 28, 1980, theThe death of a	1014
spouse nominated as beneficiary or the death of any other	1015
nominated beneficiary following a member's retirement or election	1016
under section 742.44 of the Revised Code to participate in the	1017
deferred retirement option plan shall cancel any optional plan of	1018
payment to provide continuing lifetime benefits to such nominated	1019
beneficiary and return the member of the fund to the member's	1020
single lifetime benefit equivalent, as determined by the board, to	1021
be effective the month following receipt by the board of notice of	1022
the death.	1023

(2) On divorce, annulment, or marriage dissolution, a member	1024
receiving a retirement allowance under a plan that provides for	1025
continuation of all or part of the allowance after death for the	1026
lifetime of the member's surviving spouse may, with the written	1027
consent of the spouse or pursuant to an order of the court with	1028
jurisdiction over the termination of the marriage, elect to cancel	1029
the plan and receive the member's single lifetime benefit	1030
equivalent as determined by the board. The election shall be made	1031
on a form provided by the board and shall be effective the month	1032
following its receipt by the board.	1033

(C) Following marriage or remarriage, a member of the fund	1034
receiving a pension under section 742.37 or 742.39 of the Revised	1035
Code may elect not later than one year after the date of marriage	1036
or remarriage a new optional plan of payment based on the	1037
actuarial equivalent of the member's single lifetime benefit as	1038
determined by the board. The plan and the member's lesser	1039
retirement allowance shall become effective on the date the	1040
election is made on a form approved by the board.	1041

(D)(1) Unless one of the following occurs, an application	1042
for retirement by a married person shall be considered an election	1043
of a benefit under option 2 as provided for in division (A)(2) of	1044
this section under which one-half of the lesser retirement	1045
allowance payable during the life of the retirant will be paid	1046
after death to the retirant's spouse for life as sole beneficiary:	1047

(a) The retirant selects an optional plan under division (A)	1048
of this section providing for payment after death to the	1049
retirant's spouse for life as sole beneficiary of more than	1050
one-half of the lesser retirement allowance payable during the	1051
life of the retirant;	1052

(b) The retirant submits to the retirement board a written	1053
statement signed by the spouse attesting that the spouse consents	1054
to the retirant's election to receive a single lifetime retirement	1055
allowance or a payment under an optional benefit plan under which	1056
after the death of the retirant the surviving spouse will receive	1057
less than one-half of the lesser retirement allowance payable	1058
during the life of the retirant.	1059

(2) An application for retirement shall include an	1060
explanation of all of the following:	1061

(a) That, if the member is married, unless the spouse	1062
consents to another plan of payment, the member's retirement	1063
allowance will be paid under "option 2" and consist of the	1064
actuarial equivalent of the member's retirement allowance in a	1065
lesser amount payable for life and one-half of the lesser	1066
allowance continuing after death to the surviving spouse for the	1067
life of the spouse;	1068

(b) A description of the alternative plans of payment	1069
available with the consent of the spouse;	1070

(c) That the spouse may consent to another plan of payment	1071
and the procedure for giving consent;	1072

(d) That consent is irrevocable once notice of consent is	1073
filed with the board.	1074

Consent shall be valid only if it is signed, in writing, and	1075
witnessed by an employee of the board or a notary public.	1076

(3) If the retirant does not select an optional plan as	1077
described in division (D)(1)(a) of this section and the board does	1078
not receive the written statement provided for in division	1079
(D)(1)(b) of this section, it shall determine and pay the	1080
retirement allowance in accordance with division (A)(2) of this	1081
section, except that the board may provide by rule for waiver by	1082
the board of the statement and payment of the allowance other than	1083
in accordance with division (A)(2) of this section if the retirant	1084
is unable to obtain the statement due to absence or incapacity of	1085
the spouse or other cause specified by the board.	1086

(E) A member of the fund who has elected an optional plan	1087
under this section or section 742.3715 of the Revised Code may,	1088
with the consent of the designated beneficiary, cancel the	1089
optional plan and receive the retirement allowance payable	1090
throughout life the member would have received had the member not	1091
elected the optional plan, if the member makes a request to cancel	1092
the optional plan not later than one year after the later of	1093
September 9, 1988, or the date on which the member first receives	1094
a payment under this section or section 742.3715 of the Revised	1095
Code. Cancellation of the optional plan shall be effective the	1096
month after acceptance of the request by the trustees of the fund.	1097
No payment or adjustment shall be made in the retirement allowance	1098
payable throughout the member's life to compensate for the lesser	1099
allowance the member received under the optional plan.	1100

The request to cancel the optional plan shall be made on a	1101
form provided by the fund and shall be valid only if the completed	1102
form includes a signed statement of the designated beneficiary's	1103
understanding of and consent to the cancellation. The signature	1104
shall be verified by the trustees of the fund prior to their	1105
acceptance of the cancellation.	1106

(F) Any option elected and payments made under this section	1107
shall be in addition to any benefit payable under divisions (D),	1108
(E), and (F) of section 742.37 of the Revised Code.	1109

(G) A person is eligible to receive a benefit increase under	1110
this division if the person is receiving a retirement allowance or	1111
benefit under an optional plan elected under this section or	1112
section 742.3715 of the Revised Code based on an award made prior	1113
to July 24, 1986. A person is not eligible to receive an increase	1114
under this division if the person is receiving a pension or	1115
benefit in accordance with rules in force on April 1, 1947, that	1116
govern the granting of pensions and benefits and that provide an	1117
increase in the original pension or benefit from time to time	1118
pursuant to changes in the salaries of active members.	1119

The board shall annually increase all benefits payable under	1120
this section or section 742.3715 of the Revised Code to eligible	1121
persons by the actuarial equivalent of three hundred sixty	1122
dollars, except that no benefit shall exceed the limit	1123
established by section 415 of the "Internal Revenue Code of 1986,"	1124
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	1125

The first increase is payable to all eligible persons on July	1126
1, 1988. The increase is payable for the ensuing twelve-month	1127
period or until the next increase is granted under this section,	1128
whichever is later.	1129

The date of the first increase payable under this section	1130
shall be the anniversary date for future increases.	1131

Sec. 742.3714.  As used in this section, "contingent	1132
dependent beneficiary" means a person so designated pursuant to	1133
this section by a member or former member of the Ohio police and	1134
fire pension fund.	1135

Prior to retiring under section 742.37 of the Revised Code, a	1136
member or former member of the fund who is, or within twelve	1137
months will be, eligible to retire and receive a pension or	1138
benefit under division (C)(1) or (3) of section 742.37 of the	1139
Revised Code may designate one dependent, not the member's or	1140
former member's spouse, as the contingent dependent beneficiary.	1141
The determination of what constitutes a dependent for the purposes	1142
of this section shall be made by the board of trustees of the fund	1143
in accordance with rules adopted pursuant to this section. The	1144
designation shall be made on a form provided by the board and	1145
shall be filed with the board. The designation may be changed or	1146
withdrawn in accordance with rules adopted by the board pursuant	1147
to this section. The designation shall be used only for the	1148
purposes of this section and shall cease to have effect if the	1149
member or former member retires under section 742.37 of the	1150
Revised Code, or dies prior to retirement and is survived by a	1151
spouse. The board shall annually inform members and eligible	1152
former members of the fund of the right to designate a contingent	1153
dependent beneficiary under this section.	1154

In addition to any other pension, allowance, or benefit	1155
payable under this chapter, the surviving spouse of a deceased	1156
member or former member of the fund who at the time of the	1157
member's or former member's death was eligible to retire and	1158
receive a pension or benefit under division (C)(1) or (3) of	1159
section 742.37 of the Revised Code, but had not retired, shall	1160
receive an annual retirement allowance under this section, payable	1161
in twelve monthly installments. If on the date of death of the	1162
member or former member there is no surviving spouse, the	1163
allowance shall be paid to the contingent dependent beneficiary.	1164
If on such date there is no surviving spouse and no person	1165
designated as a contingent dependent beneficiary who is determined	1166
by the board of trustees to be a dependent of the member or former	1167
member, no allowance or benefit shall be paid under this section.	1168

TheUnless at the time of death the member was participating	1169
in the deferred retirement option plan established under section	1170
742.43 of the Revised Code, the allowance paid under this section	1171
shall be an amount equal to the amount the surviving spouse or	1172
contingent dependent beneficiary would have been entitled to	1173
receive had the member or former member retired effective the day	1174
following the date of death having selected an option 2 plan under	1175
division (A)(2) of section 742.3711 of the Revised Code providing	1176
for one-half of the member's or former member's lesser retirement	1177
allowance to be paid to the surviving spouse or contingent	1178
dependent beneficiary. PaymentsThe allowance paid under this	1179
section to the surviving spouse or contingent dependent	1180
beneficiary of a member who at the time of death was participating	1181
in the deferred retirement option plan established under section	1182
742.43 of the Revised Code shall be an amount calculated in	1183
accordance with section 742.442 of the Revised Code and rules that	1184
shall be adopted by the board of trustees of the Ohio police and	1185
fire pension fund.	1186

Payments under this section are payable effective the first	1187
day of the first month following the death of the member or former	1188
member of the fund.	1189

Sec. 742.3716.  (A)(1) As used in this section:

1190

(1)(a) "Eligible person" means a person who meets all of the	1191
following conditions:	1192

(a)(i) Has been receiving a pension or benefit under this	1193
chapter for one year or more based on an award made on or after	1194
July 24, 1986;	1195

(b)(ii) Has not made the election provided for in division	1196
(B) of this section;	1197

(c)(iii) Is not the spouse or survivor of a person who has	1198
made the election provided for in division (B) of this section;	1199

(d)(iv) Is receiving a benefit in accordance with division	1200
(A), (B), or (C) of section 742.37, division (C)(2), (3), (4), or	1201
(5) of former section 742.37, section 742.3711, or section 742.39	1202
of the Revised Code.	1203

(2)(b) "Recalculated average annual salary" means the highest	1204
average annual compensation of a member of the Ohio police and	1205
fire pension fund during any three years of contributions,	1206
including amounts included in terminal pay attributable to such	1207
three years, determined by dividing the member's total earnings as	1208
an employee during such years by three.	1209

(2) In the case of a member participating in the deferred	1210
retirement option plan established under section 742.43 of the	1211
Revised Code or a member described in division (B) of section	1212
742.444 of the Revised Code, the period of one year or more	1213
described in division (A)(1)(a)(i) of this section begins on the	1214
effective date of the member's election under section 742.44 of	1215
the Revised Code.	1216

(B)(1) Notwithstanding section 742.37 or 742.39 of the	1217
Revised Code, a member of the fund who is not receiving a pension	1218
or benefit under this chapter and who on January 1, 1989, has	1219
completed fifteen or more years of active service in a police or	1220
fire department may elect to have any future benefit or pension	1221
paid to the member or the member's spouse or survivors under this	1222
chapter calculated on the basis of the member's recalculated	1223
average annual salary rather than the member's average annual	1224
salary. The election shall be made by the member prior to or at	1225
the time of making an election under section 742.3711 of the	1226
Revised Code. This division does not apply to a member of the fund	1227
who has elected to participate in the deferred retirement option	1228
plan established under section 742.43 of the Revised Code unless	1229
the member's participation has terminated pursuant to division (C)	1230
of section 742.444 or to section 742.445 of the Revised Code.	1231

(2) If the member eligible to make the election under	1232
division (B)(1) of this section dies prior to making the election	1233
and at the time of death is eligible to retire and receive a	1234
pension or benefit under division (C)(1) or (3) of section 742.37	1235
of the Revised Code, the person entitled to receive a benefit	1236
under section 742.3714 of the Revised Code may make the election	1237
provided for in division (B)(1) of this section.	1238

(3) The election under division (B)(1) or (2) of this	1239
section shall be made on forms provided by the trustees of the	1240
fund. Once received by the fund, the election shall be	1241
irrevocable and shall bind the member and any other person who	1242
receives a pension or benefit based on the member's service. No	1243
person who receives a pension or benefit calculated in accordance	1244
with division (B) of this section is eligible to receive a	1245
cost-of-living allowance under this section. If the person making	1246
the election receives a benefit under section 742.3714 of the	1247
Revised Code, that person is not eligible to receive a	1248
cost-of-living allowance under section 742.3711 of the Revised	1249
Code.	1250

(C)(1) The board of trustees of the Ohio police and fire	1251
pension fund shall annually increase all benefits payable to	1252
eligible persons by three per cent, except that no benefit shall	1253
exceed the limit established by section 415 of the "Internal	1254
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	1255
amended.	1256

The first increase is payable to all eligible persons who on	1257
July 1, 1988, have been receiving a pension or benefit for twelve	1258
months or longer. The increase is payable for the ensuing	1259
twelve-month period or until the next increase is granted under	1260
this section, whichever is later.	1261

The date of the first increase paid under this section shall	1262
be the anniversary date for future increases. The pension or	1263
benefit used in the first calculation of an increase under this	1264
section shall remain as the base for all future increases paid	1265
under this section, unless a new base is established by law. In	1266
the case of a member who has elected to participate in the	1267
deferred retirement option plan established under section 742.43	1268
of the Revised Code or a member described in division (B) of	1269
section 742.444 of the Revised Code, the pension amount used in	1270
the first calculation of an increase under this section shall be	1271
the amount calculated under section 742.442 of the Revised Code	1272
unless the member's participation has terminated pursuant to	1273
division (C) of section 742.444 or to section 742.445 of the	1274
Revised Code.	1275

(2) Increases paid in years subsequent to the year of the	1276
first increase paid under this section shall be paid to all	1277
eligible persons who, on the date that the increase is authorized	1278
by the board, have been receiving a pension or benefit for twelve	1279
months.	1280

Sec. 742.44. Except as provided in section 742.14 of the	1281
Revised Code, at any time prior to filing an application for	1282
retirement under division (C)(1) of section 742.37 of the Revised	1283
Code, a member who is eligible to retire under that division may	1284
elect to participate in the deferred retirement option plan	1285
established under section 742.43 of the Revised Code.	1286

To make an election, an eligible member shall complete and	1287
submit to the Ohio police and fire pension fund a form prescribed	1288
by the fund. At this time the member may, but is not required to,	1289
elect under section 742.3711 of the Revised Code to have the	1290
member's monthly pension calculated as a retirement allowance	1291
payable throughout the member's life or a retirement allowance	1292
that continues to a surviving beneficiaryunder option 2 in	1293
division (A) of section 742.3711 of the Revised Code. Unless	1294
rescinded during a period specified in rules adopted under section	1295
742.43 of the Revised Code, the election is irrevocable from the	1296
date it is received by the fund until the employee ceases to	1297
participate in the plan as provided in section 742.444 of the	1298
Revised Code.	1299

A member is not required to specify the number of years or	1300
portion of a year the member will participate in the plan but must	1301
agree to terminate active service in a police or fire department	1302
and begin receiving the member's pension not later than the date	1303
that is eight years after the effective date of the election to	1304
participate in the plan or be subject to the forfeiture provisions	1305
of division (C) of section 742.444 of the Revised Code.	1306

The effective date of an election made under this section is	1307
the first day of the employer's first payroll period immediately	1308
following the board's receipt of the notice of election.	1309

Sec. 742.442. For each member who elects to participate in	1310
the deferred retirement option plan, the Ohio police and fire	1311
pension fund shall determine under division (C)(1) of section	1312
742.37 of the Revised Code the monthly pension amount that would	1313
be payable to the member had the member elected to receive a	1314
pension under that division. In determining the pension amount,	1315
the fund shall use the member's total service credit and average	1316
annual salary as of the last day of the employer's payroll period	1317
immediately prior to the effective date of the member's election	1318
to participate in the plan. The pension amount shall be	1319
calculated as a retirement allowance payable for the member's	1320
life, except that, if at the time of electing to participate in	1321
the plan the member selected anotherthe plan of payment in option	1322
2 of division (A) of section 742.3711 of the Revised Code, the	1323
pension shall be calculated using thethat plan of payment	1324
selected.	1325

A member who participates in the plan is not eligible to make	1326
an election under division (B) of section 742.3716 of the Revised	1327
Code.	1328

Sec. 742.443. (A) During the period beginning on the	1329
effective date of an election to participate in the deferred	1330
retirement option plan and ending on the date participation	1331
ceases, a member's monthly pension amount determined under section	1332
742.442 of the Revised Code shall accrue to the member's benefit.	1333
To this amount shall be added any benefit increases the member	1334
would be eligible for under division (C) of section 742.3716 of	1335
the Revised Code had the member, on the effective date of the	1336
member's election, retired under division (C)(1) of section 742.37	1337
of the Revised Code.	1338

(B)(1) The amounts contributed under section 742.31 of the	1339
Revised Code by a member participating in the deferred retirement	1340
option plan shall accrue to the member's benefit as follows:	1341

(a) During the period beginning on the first day of the	1342
first payroll period after the election's effective date and	1343
ending on the earlier of the date that is two years thereafter or	1344
the date the member ceases participation in the plan, fifty per	1345
cent of the member's contributions for that period;	1346

(b) During the period beginning on the date that is two	1347
years and one day after accruals begin under this division and	1348
ending on the earlier of the date that is three years thereafter	1349
or the date the member ceases participation in the plan,	1350
seventy-five per cent of the member's contributions for that	1351
period;	1352

(c) During the period beginning on the date that is three	1353
years and one day after accruals begin under this section and	1354
ending on the date the member ceases participation in the plan,	1355
one hundred per cent of the member's contributions for that	1356
period.	1357

(2) The Ohio police and fire pension fund shall credit the	1358
portion of a member's contributions that are not accrued to the	1359
member's benefit under division (B)(1) of this section to the	1360
police officers' contribution fund or firefighters' contribution	1361
fund, as appropriate.	1362

(C) During the period beginning on the election's effective	1363
date and ending on the day before the date the member ceases	1364
participation in the plandistributions under division (B)(3) of	1365
section 742.444 of the Revised Code are completed, the amounts	1366
described in divisions (A) and (B)(1) of this section shall earn	1367
interest at an annual rate established by the board of trustees of	1368
the fund and compounded annually using a method established by	1369
rule adopted under section 742.43 of the Revised Code.	1370

Sec. 742.444. (A) A member's participation in the deferred	1371
retirement option plan ceases on the occurrence of the earliest of	1372
the following:	1373

(1) Termination of the member's active service in a police or	1374
fire department;	1375

(2) The last day of the eight-year period that begins on the	1376
effective date of the member's election to participate in the	1377
plan;	1378

(3) Acceptance by the member of a disability benefit awarded	1379
by the board of trustees of the Ohio police and fire pension fund,	1380
unless the acceptance is revoked by the member in accordance with	1381
rules adopted by the board;	1382

(4) The member's death.

1383

(B) If a member terminates active service in a police or	1384
fire department not later than eight years after the effective	1385
date of the member's election to participate in the plan, all of	1386
the following apply:	1387

(1) The member shall notify the Ohio police and fire pension	1388
fund of the date of termination on a form prescribed by the fund.	1389
The member is not eligible to make another election under section	1390
742.44 of the Revised Code.	1391

(2) If the member's termination of active service occurs on	1392
or after the date that is the first day of the fourth year after	1393
the effective date of the election to participate in the plan, the	1394
entire amount that has accrued to the member's benefit under the	1395
deferred retirement option plan shall be distributed to the member	1396
pursuant to the member's selection under division (B)(3) of this	1397
section. If the termination of active service occurs before the	1398
date that is four years after the effective date of the election	1399
to participate, the member shall forfeit the total amount of the	1400
interest credited under division (C) of section 742.443 of the	1401
Revised Code.	1402

(3) The member shall select one of the following as the	1403
method of distribution of the amount to be distributed to the	1404
member:	1405

(a) A single payment;

1406

(b) Periodic payments as determined by the board.

1407

The fund shall retain amounts accrued to the benefit of a	1408
member under the plan until a form specifying the method of	1409
distribution selected is filed with the fund by the member or an	1410
authorized representative of the member.	1411

The board shall afford a member who selects periodic payments	1412
the opportunity at least once during each calendar year to change	1413
the member's selection.	1414

(4) Distribution of the amount accrued to a member's benefit	1415
under the deferred retirement option plan shall not commence until	1416
the date that is the first day of the fourth year after the	1417
effective date of the election.	1418

(5) The member shall select a plan of payment under section	1419
742.3711 of the Revised Code for the pension payable to the member	1420
under division (C) of section 742.37 of the Revised Code, unless	1421
the member selected a plan of payment at the time of electing to	1422
participate in the plan. The pension shall commence onnot later	1423
than the first day of the second month following the date the	1424
employee ceases to participate in the plan.	1425

(C) If, at the end of the eight-year period that begins on	1426
the effective date of a member's election to participate in the	1427
plan, the member has failed to terminate active service in a	1428
police or fire department, all of the following apply:	1429

(1) No further amounts shall accrue to the member's benefit,	1430
and the member shall forfeit all amounts that have accrued to the	1431
member's benefit under section 742.443 of the Revised Code. The	1432
amounts forfeited shall be treated as if the member had continued	1433
in the active service of a police or fire department and not	1434
elected to participate in the plan.	1435

(2) The member shall be granted service credit for the period	1436
the member was participating in the plan, and when the member's	1437
pension is calculated under section 742.37 of the Revised Code,	1438
the calculation shall be made as though the member had never	1439
participated in the plan.	1440

(3) Further contributions, and service credit for those	1441
contributions, shall be credited as provided in sections 742.31	1442
through 742.34 of the Revised Code.	1443

Sec. 742.52.  (A) A member of the Ohio police and and fire	1444
pension fund who is not receiving a disability benefit or pension	1445
from the fund and is not a participant in the deferred retirement	1446
option plan established under section 742.43 of the Revised Code	1447
may purchase service credit, which shall be used in computing the	1448
member's years of service, for each year of service incurred by	1449
reason of having been on active duty, active duty for training,	1450
initial active duty for training, inactive duty training,	1451
full-time national guard duty, and a period for which a member is	1452
absent from a position of employment for the purpose of an	1453
examination to determine the fitness of the member to perform a	1454
duty, as a member of the armed forces of the United States if the	1455
member is honorably discharged. Credits which are not authorized	1456
under former sections 742.18, 742.19, 742.20, and 742.21 or	1457
section 742.521 of the Revised Code may be purchased at any time.	1458
The number of years purchased under this division shall not exceed	1459
five.	1460

(B) For the purposes of this division, "prisoner of war"	1461
means any regularly appointed, enrolled, enlisted, or inducted	1462
member of the armed forces of the United States who was captured,	1463
separated, and incarcerated by an enemy of the United States.	1464

A member who is not a participant in the deferred retirement	1465
option plan established under section 742.43 of the Revised Code	1466
may purchase service credit which shall be considered as the	1467
equivalent of Ohio service for each year of service the member was	1468
a prisoner of war. The number of years purchased under this	1469
division shall not exceed five. Service credit may be purchased	1470
under this division for the same years of service used to purchase	1471
service credit under division (A) of this section. The member may	1472
choose to purchase only part of such credit in any one payment,	1473
subject to board rules.	1474

(C) The total number of years purchased under this section	1475
shall not exceed the member's total accumulated number of years of	1476
Ohio service.	1477

(D) For each year of service purchased under division (A) or	1478
(B) of this section, the member shall pay to the fund for credit	1479
to the member's accumulated account an amount determined by the	1480
member rate of contribution in effect at the time the military	1481
service began or four per cent, whichever is greater, multiplied	1482
by the annual compensation for full-time employment during the	1483
first year of full-time service in Ohio covered by any state or	1484
municipal retirement system of this state following termination of	1485
military service. To this amount shall be added an amount equal	1486
to compound interest at a rate established by the board of	1487
trustees of the Ohio police and fire pension fund from the date	1488
active military service terminated to date of payment. For the	1489
purpose of this section, the board may define full-time service in	1490
Ohio covered by any state or municipal retirement system of this	1491
state.	1492

(E) A member is ineligible to purchase service credit under	1493
this section for any year of military service that was:	1494

(1) Used in the calculation of any retirement benefit	1495
currently being paid to the member or payable in the future under	1496
any other retirement program, except for retired pay for	1497
non-regular service under Chapter 1223. of Section 1662 of Title	1498
XVI of the "National Defense Authorization Act for Fiscal Year	1499
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or	1500
social security;	1501

(2) Used to obtain service credit under former section	1502
742.18, 742.19, 742.20, or 742.21 or section 742.521 of the	1503
Revised Code. At the time the credit is purchased the member	1504
shall certify on a form furnished by the trustees that the member	1505
does and will conform to this requirement. Any benefit paid under	1506
this section to which the member is not entitled shall be	1507
recovered by any recovery procedures available under this chapter.	1508

"Armed forces" of the United States includes army, navy, air	1509
force, marine corps, coast guard, or any reserve component of such	1510
forces; national guard; the commissioned corps of the United	1511
States public health service; the merchant marine service during	1512
wartime; auxiliary corps as established by congress; service as a	1513
red cross nurse with the army, navy, air force, hospital service	1514
of the United States, army nurse corps, navy nurse corps, or	1515
serving full-time with the American red cross in a combat zone;	1516
and such other service as may be designated by congress as	1517
included therein.	1518

A member of the fund who has purchased service credit under	1519
this section, or the member's estate, is entitled to be refunded	1520
the amount paid to purchase such credit, or a pro rata portion	1521
thereof, provided that the purchased service credit, or a portion	1522
of the purchased service credit, does not serve to increase a	1523
pension or benefit paid under section 742.37 or 742.39 or	1524
calculated under section 742.442 of the Revised Code. The refund	1525
of any amount paid to purchase credit under this section, or a pro	1526
rata portion thereof, shall cancel an equivalent amount of service	1527
credit.	1528

Sec. 5505.01.  As used in this chapter:

1529

(A) "Employee" means any qualified employee in the uniform	1530
division of the state highway patrol, any qualified employee in	1531
the radio division hired prior to November 2, 1989, and any state	1532
highway patrol cadet attending training school pursuant to section	1533
5503.05 of the Revised Code whose attendance at the school begins	1534
on or after June 30, 1991. "Employee" includes the superintendent	1535
of the state highway patrol. In all cases of doubt, the state	1536
highway patrol retirement board shall determine whether any person	1537
is an employee as defined in this division, and the decision of	1538
the board is final.	1539

(B) "Prior service" means all service rendered as an	1540
employee of the state highway patrol prior to September 5, 1941,	1541
to the extent credited by the board, provided that in no case	1542
shall prior service include service rendered prior to November 15,	1543
1933.	1544

(C) "Total service" means all service rendered by an	1545
employee to the extent credited by the board. Total service	1546
includes all of the following:	1547

(1) Contributing service rendered by the employee since last	1548
becoming a member of the state highway patrol retirement system;	1549

(2) All prior service credit;

1550

(3) Restored service credit as provided in this chapter;

1551

(4) Military service credit purchased under division (D) of	1552
section 5505.16 or section 5505.25 of the Revised Code;	1553

(5) Credit granted under division (C) of section 5505.17 or	1554
section 5505.201, 5505.40, or 5505.402 of the Revised Code;	1555

(6) Credit for any period, not to exceed three years, during	1556
which the member was out of service and receiving benefits under	1557
Chapters 4121. and 4123. of the Revised Code.	1558

(D) "Beneficiary" means any person, except a retirant, who	1559
is in receipt of a pension or other benefit payable from funds of	1560
the retirement system.	1561

(E) "Regular interest" means interest compounded at rates	1562
designated from time to time by the retirement board.	1563

(F) "Plan" means the provisions of this chapter.

1564

(G) "Retirement system" or "system" means the state highway	1565
patrol retirement system created and established in the plan.	1566

(H) "Contributing service" means all service rendered by a	1567
member since September 4, 1941, for which deductions were made	1568
from the member's salary under the plan.	1569

(I) "Retirement board" or "board" means the state highway	1570
patrol retirement board provided for in the plan.	1571

(J) Except as provided in section 5505.18 of the Revised	1572
Code, "member" means any employee included in the membership of	1573
the retirement system, whether or not rendering contributing	1574
service.	1575

(K) "Retirant" means any member who retires with a pension	1576
payable from the retirement system.	1577

(L) "Accumulated contributions" means the sum of allthe	1578
following credited to a member's individual account in the	1579
employees' savings fund:	1580

(1) All amounts deducted from the salary of athe member and	1581
credited to the member's individual account in the employees'	1582
savings fund;	1583

(2) All amounts paid by the member to purchase state highway	1584
patrol retirement system service credit pursuant to this chapter	1585
or other state law.	1586

(M)(1) Except as provided in division (M)(2) of this	1587
section, "final average salary" means the average of the highest	1588
salary paid a member during any three consecutive or	1589
nonconsecutive years.	1590

If a member has less than three years of contributing	1591
service, the member's final average salary shall be the average of	1592
the annual rates of salary paid to the member during the member's	1593
total years of contributing service.	1594

(2) If a member is credited with service under division	1595
(C)(6) of this section or division (D) of section 5505.16 of the	1596
Revised Code, the member's final average salary shall be the	1597
average of the highest salary that was paid to the member or would	1598
have been paid to the member, had the member been rendering	1599
contributing service, during any three consecutive or	1600
nonconsecutive years. If that member has less than three years of	1601
total service, the member's final average salary shall be the	1602
average of the annual rates of salary that were paid to the member	1603
or would have been paid to the member during the member's years of	1604
total service.	1605

(N) "Pension" means an annual amount payable by the	1606
retirement system throughout the life of a person or as otherwise	1607
provided in the plan. All pensions shall be paid in equal monthly	1608
installments.	1609

(O) "Pension reserve" means the present value of any	1610
pension, or benefit in lieu of any pension, computed upon the	1611
basis of mortality and other tables of experience and interest the	1612
board shall from time to time adopt.	1613

(P) "Deferred pension" means a pension for which an eligible	1614
member of the system has made application and which is payable as	1615
provided in division (A) or (B) of section 5505.16 of the Revised	1616
Code.	1617

(Q) "Retirement" means termination as an employee of the	1618
state highway patrol, with application having been made to the	1619
system for a pension or a deferred pension.	1620

(R) "Fiduciary" means any of the following:

1621

(1) A person who exercises any discretionary authority or	1622
control with respect to the management of the system, or with	1623
respect to the management or disposition of its assets;	1624

(2) A person who renders investment advice for a fee, direct	1625
or indirect, with respect to money or property of the system;	1626

(3) A person who has any discretionary authority or	1627
responsibility in the administration of the system.	1628

(S)(1) Except as otherwise provided in this division,	1629
"salary" means all compensation, wages, and other earnings paid to	1630
a member by reason of employment but without regard to whether any	1631
of the compensation, wages, or other earnings are treated as	1632
deferred income for federal income tax purposes. Salary includes	1633
all of the following:	1634

(a) Payments for shift differential, hazard duty,	1635
professional achievement, and longevity;	1636

(b) Payments for occupational injury leave, personal leave,	1637
sick leave, bereavement leave, administrative leave, and vacation	1638
leave used by the member;	1639

(c) Payments made under a disability leave program sponsored	1640
by the state for which the state is required by section 5505.151	1641
of the Revised Code to make periodic employer and employee	1642
contributions to the retirement system.	1643

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

1644

(a) Payments resulting from the conversion of accrued but	1645
unused sick leave, personal leave, compensatory time, and vacation	1646
leave;	1647

(b) Payments made by the state to provide life insurance,	1648
sickness, accident, endowment, health, medical, hospital, dental,	1649
or surgical coverage, or other insurance for the member or the	1650
member's family, or amounts paid by the state to the member in	1651
lieu of providing that insurance;	1652

(c) Payments for overtime work;

1653

(d) Incidental benefits, including lodging, food, laundry,	1654
parking, or services furnished by the state, use of property or	1655
equipment of the state, and reimbursement for job-related expenses	1656
authorized by the state including moving and travel expenses and	1657
expenses related to professional development;	1658

(e) Payments made to or on behalf of a member that are in	1659
excess of the annual compensation that may be taken into account	1660
by the retirement system under division (a)(17) of section 401 of	1661
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	1662
401 (a)(17), as amended;	1663

(f) Payments made under division (B), (C), or (E) of section	1664
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	1665
No. 3 of the 119th general assembly, Section 3 of Amended	1666
Substitute Senate Bill No. 164 of the 124th general assembly, or	1667
Amended Substitute House Bill No. 405 of the 124th general	1668
assembly.	1669

(3) The retirement board shall determine by rule whether any	1670
compensation, wages, or earnings not enumerated in this division	1671
are salary, and its decision shall be final.	1672

(T) "Actuary" means an individual who satisfies all of the	1673
following requirements:	1674

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

1675

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

1676

(3) Has a minimum of five years' experience in providing	1677
actuarial services to public retirement plans.	1678

Sec. 5505.15.  (A)(1) A member of the state highway patrol	1679
retirement system shall contribute nine and one-halften per cent	1680
of the member's annual salary to the state highway patrol	1681
retirement fund. The amount shall be deducted by the employer	1682
from the employee's salary for each payroll period.	1683

(2) The total contributions arising from deductions made	1684
prior to January 1, 1966, from the salaries of members in the	1685
employ of the state highway patrol and standing to the credit of	1686
their individual accounts in the retirement fund shall be	1687
transferred and credited to their respective individual accounts	1688
in the employees' savings fund.	1689

(B) The state shall annually pay into the employer	1690
accumulation fund, in monthly or less frequent installments as the	1691
state highway patrol retirement board requires, an amount that	1692
shall be a certain percentage of the total salaries paid	1693
contributing members and shall be known as the "employer	1694
contribution." If a member severs connection with the patrol or	1695
is dismissed, the employer contribution shall remain in the	1696
retirement system.	1697

The rate percentage of the employer contribution shall be	1698
certified by the board to the director of budget and management	1699
and shall not be lower than nine per cent of the total salaries	1700
paid contributing members and shall not exceed three times the	1701
rate percentage being deducted from the annual salaries of	1702
contributing members. The board shall prepare and submit to the	1703
director, on or before the first day of November of each	1704
even-numbered year, an estimate of the amounts necessary to pay	1705
the state's obligations accruing during the biennium beginning the	1706
first day of July of the following year. Such amounts shall be	1707
included in the budget and allocated as certified by the board.	1708

Sec. 5505.162.  (A) On application for retirement as	1709
provided in section 5505.16 of the Revised Code, a member of the	1710
state highway patrol retirement system may elect, on a form	1711
provided by the state highway patrol retirement board, to receive	1712
athe pension that the member is eligible to receive on retirement	1713
under that section in one of the following forms:	1714

(1) A single lifetime pension or he may elect, on a form	1715
provided by the state highway patrol retirement board, to receive	1716
the;	1717

(2) The actuarial equivalent of thisthe single lifetime	1718
pension that the member may elect under division (A)(1) of this	1719
section in a lesser annual amount payable for histhe member's	1720
life and continuing after histhe member's death to a surviving	1721
designated beneficiary under one of the following optional plans,	1722
provided the annual amount payable to the designated beneficiary	1723
shall not exceed the annual amount payable to such retiring	1724
member, the amount is certified by the actuary employed by the	1725
system to be the actuarial equivalent of histhe member's pension,	1726
and the amount is approved by the board:	1727

(1)(a) Option 1. HisThe member's lesser pension shall be	1728
paid for life to histhe member's sole beneficiary designated at	1729
the time of retirement.	1730

(2)(b) Option 2. One-half or some other portion of histhe	1731
member's lesser pension shall be paid for life to histhe member's	1732
sole beneficiary designated at the time of his retirement.	1733

(3)(c) Option 3. Upon his death before the expiration of a	1734
certain period from histhe member's retirement date as elected by	1735
himthe member and approved by the board, histhe member's lesser	1736
pension shall be continued for the remainder of such period to the	1737
beneficiaries, and in such order, as designated by himthe member	1738
in writing and filed with the board. No monthly payments shall be	1739
paid to joint beneficiaries, but they may jointly receive the	1740
present value of any remaining payments in a lump sum settlement.	1741
If all designated beneficiaries die before the expiration of such	1742
period, the present value of all the payments yet remaining in the	1743
period shall be paid to the estate of the beneficiary last	1744
receiving such payments.	1745

(3) If the member has attained age fifty-one with at least	1746
twenty-five years' total service or fifty-two with at least twenty	1747
years' total service, a pension consisting of both a partial	1748
benefit lump sum in an amount the member designates that	1749
constitutes a portion of the single lifetime pension the member	1750
may elect under division (A)(1) of this section and the actuarial	1751
equivalent of the remainder of the single lifetime pension payable	1752
for the member's life, provided an actuary employed by the system	1753
certifies the actuarial equivalent and the board approves the	1754
partial benefit lump sum payment and the amount to be paid as the	1755
actuarial equivalent.	1756

The amount designated by a member shall be not less than six	1757
times the monthly amount that would be payable to the member as a	1758
single lifetime pension under division (A)(1) of this section and	1759
not more than sixty times that amount.	1760

A member who has attained the age of fifty-one with	1761
twenty-five years of service who elects a partial benefit lump sum	1762
may designate an amount that does not exceed an amount equal to	1763
one month's pension for each month of service beyond twenty-five	1764
years. A member who has attained the age of fifty-two with twenty	1765
years of service who elects a partial benefit lump sum may	1766
designate an amount that does not exceed an amount equal to one	1767
month's pension for each month of service beyond twenty years.	1768

(B)(1) The death of a spouse designated as beneficiary or	1769
the death of any other designated beneficiary following retirement	1770
shall cancel any optional plan of payment selected under division	1771
(A)(2) of this section to provide continuing lifetime benefits to	1772
such designated beneficiary and return the member to the	1773
equivalent of histhe member's single lifetime pension, as	1774
determined by the board, to be effective the month following	1775
receipt by the board of notice of the death.	1776

(2) On divorce, annulment, or marriage dissolution, a member	1777
receiving a pension under a plan that provides for continuation of	1778
all or part of the pension after his death for the lifetime of his	1779
the member's surviving spouse may, with the written consent of the	1780
spouse or pursuant to an order of the court with jurisdiction over	1781
the termination of the marriage, elect to cancel the plan and	1782
receive the equivalent of histhe member's single lifetime pension	1783
as determined by the board. The election shall be made on a form	1784
provided by the board and shall be effective the month following	1785
its receipt by the board.	1786

(C) Following marriage or remarriage, a member may elect a	1787
new optional plan of payment under division (A)(2) of this section	1788
based on the actuarial equivalent of histhe member's single	1789
lifetime pension as determined by the board. The plan shall	1790
become effective the first day of the month following receipt by	1791
the board of an application on a form approved by the board.	1792

(D) A member who has elected an optional plan under division	1793
(A)(2) of this section may, with the written consent of the	1794
designated beneficiary, cancel the optional plan and receive the	1795
single lifetime pension payable throughout his life hethat the	1796
member would have received had he not elected the optional plan	1797
the member elected the single lifetime pension under division	1798
(A)(1) of this section, if hethe member makes a request to cancel	1799
the optional plan not later than one year after the date on which	1800
the member first receives a payment under the plan. Cancellation	1801
of the optional plan shall be effective the month after acceptance	1802
of the request by the board. No payment or adjustment shall be	1803
made in the single lifetime pension payable throughout the	1804
member's life to compensate for the lesser pension hethe member	1805
received under the optional plan.	1806

The request to cancel the optional plan shall be made on a	1807
form provided by the board and shall be valid only if the	1808
completed form includes a signed statement of the designated	1809
beneficiary's understanding of and consent to the cancellation.	1810
The designated beneficiary's signature shall be verified by the	1811
board prior to its acceptance of the cancellation.	1812

(E) Any option elected and payments made under division	1813
(A)(2) of this section shall be in addition to any pension payable	1814
to the member's surviving spouse, children, or parents under	1815
section 5505.17 of the Revised Code.	1816

Sec. 5505.163.  (A) A retirant who retired prior to	1817
September 21, 1994, under section 5505.16 of the Revised Code may	1818
elect to receive the actuarial equivalent of the retirant's	1819
pension in a lesser amount payable for the remainder of the	1820
retirant's life and continuing after death to the retirant's	1821
surviving designated beneficiary under one of the optional plans	1822
described in division (A)(1), (2), or (3)(a), (b), or (c) of	1823
section 5505.162 of the Revised Code, provided the annual amount	1824
payable to the designated beneficiary shall not exceed the annual	1825
amount payable to the retirant, the amount is certified by the	1826
actuary employed by the state highway patrol retirement system to	1827
be the actuarial equivalent of the retirant's pension, and the	1828
state highway patrol retirement board approves the amount.	1829

(B) A retirant interested in making the election authorized	1830
by division (A) of this section shall file a notice of interest	1831
with the board not later than sixty days after the effective date	1832
of this sectionJune30, 2000. The board shall advise the	1833
retirant with respect to the choices available under the optional	1834
plans and have a determination made of the monthly pension payable	1835
under the optional plan elected by the member for inclusion in the	1836
statement to be filed under division (C) of this section.	1837

(C) To make the election authorized by division (A) of this	1838
section, a retirant shall file a statement, on a form provided by	1839
the board, indicating that the retirant elects to participate in	1840
the optional plan specified in the statement. The form must be	1841
filed with the board not later than one hundred twenty days after	1842
the effective date of this sectionJune30, 2000.	1843

(D) A notice or statement mailed to the board shall be	1844
considered to have been filed on its postmark date.	1845

(E) Any option elected and payments made under this section	1846
shall be in addition to any pension payable to the retirant's	1847
surviving spouse, children, or parents under section 5505.17 of	1848
the Revised Code.	1849

Sec. 5505.178. Except as provided in division (A)(3) of	1850
section 5505.162 of the Revised Code, all pensions shall be paid	1851
in equal monthly installments.	1852

Sec. 5505.18.  As used in this section, "member" does not	1853
include state highway patrol cadets attending training schools	1854
pursuant to section 5503.05 of the Revised Code.	1855

(A) Upon the application of a member of the state highway	1856
patrol retirement system, a person acting on behalf of a member,	1857
or the superintendent of the state highway patrol on behalf of a	1858
member, a member who becomes totally and permanently incapacitated	1859
for duty in the employ of the state highway patrol may be retired	1860
by the board.	1861

The medical or psychological examination of a member who has	1862
applied for disability retirement shall be conducted by a	1863
competent physicianhealth-care professional or physicians	1864
professionals appointed by the board. The physicianhealth-care	1865
professional or physiciansprofessionals shall file a written	1866
report with the board containing the following information:	1867

(1) Whether the member is totally incapacitated for duty in	1868
the employ of the patrol;	1869

(2) Whether the incapacity is expected to be permanent;

1870

(3) The cause of the member's incapacity.

1871

The board shall determine whether the member qualifies for	1872
disability retirement and its decision shall be final. The board	1873
shall consider the written medical or psychological report,	1874
opinions, statements, and other competent evidence in making its	1875
determination. If the incapacity is a result of heart disease or	1876
any cardiovascular disease of a chronic nature, which disease or	1877
any evidence of which was not revealed by the physical examination	1878
passed by the member on entry into the patrol, the member is	1879
presumed to have incurred the disease in the line of duty as a	1880
member of the patrol, unless the contrary is shown by competent	1881
evidence.	1882

(B)(1) A member whose retirement on account of disability	1883
incurred in the line of duty shall receive the applicable pension	1884
provided for in section 5505.17 of the Revised Code, except that	1885
if the member has less than twenty-five years of contributing	1886
service, the member's service credit shall be deemed to be	1887
twenty-five years for the purpose of this provision. In no case	1888
shall the member's disability pension be less than sixty-one and	1889
one-quarter per cent or exceed the lesser of seventy-nine and	1890
one-quarter per cent of the member's final average salary or the	1891
limit established by section 415 of the "Internal Revenue Code of	1892
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	1893

(2) A member whose retirement on account of disability	1894
incurred not in the line of duty shall receive the applicable	1895
pension provided for in section 5505.17 of the Revised Code,	1896
except that if the member has less than twenty years of	1897
contributing service, the member's service credit shall be deemed	1898
to be twenty years for the purpose of this provision. In no case	1899
shall the member's disability pension exceed the lesser of	1900
seventy-nine and one-quarter per cent of the member's final	1901
average salary or the limit established by section 415 of the	1902
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	1903
as amended.	1904

(C) The state highway patrol retirement board shall adopt	1905
rules requiring a disability pension recipient, as a condition of	1906
continuing to receive a disability pension, to agree in writing to	1907
obtain any medical or psychological treatment recommended by the	1908
board's physicianhealth-care professional and submit medical or	1909
psychological reports regarding the treatment. If the board	1910
determines that a disability pension recipient is not obtaining	1911
the medical or psychological treatment or the board does not	1912
receive a required medical or psychological report, the disability	1913
pension shall be suspended until the treatment is obtained, the	1914
report is received by the board, or the board's physician	1915
health-care professional certifies that the treatment is no longer	1916
helpful or advisable. Should the recipient's failure to obtain	1917
treatment or submit a medical or psychological report continue for	1918
one year, the recipient's right to the disability benefit shall be	1919
terminated as of the effective date of the original suspension.	1920

(D) A member placed on a disability pension who has not	1921
attained the age of fifty-five years shall be subject to an annual	1922
medical or psychological re-examination by physicianshealth-care	1923
professionals appointed by the board, except that the board may	1924
waive the medical re-examination if the board's physicians	1925
health-care professionals certify that the member's disability is	1926
ongoing. If any member placed on a disability pension refuses to	1927
submit to a medical or psychological re-examination, the member's	1928
disability pension shall be suspended until the member withdraws	1929
the refusal. If the refusal continues for one year, all the	1930
member's rights under and to the disability pension shall be	1931
terminated as of the effective date of the original suspension.	1932

(E) Each recipient of a disability pension who has not	1933
attained the age of fifty-five years shall file with the board an	1934
annual statement of earnings, current medical or psychological	1935
information on the recipient's condition, and any other	1936
information required in rules adopted by the board. The board may	1937
waive the requirement that a disability benefit recipient file an	1938
annual statement of earnings or current medical or psychological	1939
information if the board's physicianhealth-care professional	1940
certifies that the recipient's disability is ongoing.	1941

The board shall annually examine the information submitted by	1942
the recipient. If a recipient refuses to file the statement or	1943
information, the disability pension shall be suspended until the	1944
statement and information are filed. If the refusal continues for	1945
one year, the right to the pension shall be terminated as of the	1946
effective date of the original suspension.	1947

(F)(1) Except as provided in division (F)(2) of this	1948
section, a retirant who has been on disability pension, and who	1949
has been physically or psychologically examined and found no	1950
longer incapable of performing the retirant's duties, shall be	1951
restored to the rank the retirant held at the time the retirant	1952
was pensioned and all previous rights shall be restored, including	1953
the retirant's civil service status, and the disability pension	1954
shall terminate. Upon return to employment in the patrol, the	1955
retirant shall again become a contributing member of the	1956
retirement system, the total service at the time of the retirant's	1957
retirement shall be restored to the retirant's credit, and the	1958
retirant shall be given service credit for the period the retirant	1959
was in receipt of a disability pension. The provisions of	1960
division (F)(1) of this section shall be retroactive to September	1961
5, 1941.	1962

(2) The state highway patrol is not required to take action	1963
under division (F)(1) of this section if the retirant was	1964
dismissed or resigned in lieu of dismissal for dishonesty,	1965
misfeasance, malfeasance, or conviction of a felony.	1966

(G) The board may adopt rules to carry out this section,	1967
including rules that specify the types of health-care	1968
professionals the board may appoint for the purpose of this	1969
section.	1970

Section 2. That existing sections 742.21, 742.212, 742.214,	1971
742.221, 742.23, 742.24, 742.251, 742.27, 742.37, 742.371,	1972
742.375, 742.376, 742.3711, 742.3714, 742.3716, 742.44, 742.442,	1973
742.443, 742.444, 742.52, 5505.01, 5505.15, 5505.162, 5505.163,	1974
and 5505.18 of the Revised Code are hereby repealed.	1975