REPRESENTATIVES Hughes, Womer Benjamin, Jones, Willamowski, Manning, Flowers, Ogg, Hollister, Schaffer, Boccieri, Lendrum, Brown, Schuring, Schneider

To amend sections 5505.01, 5505.162, 5505.163, and

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5505.18 and to enact section 5505.178 of the

2

Revised Code to revise the law governing the State

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Highway Patrol Retirement System.

4

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

Section 1. That sections 5505.01, 5505.162, 5505.163, and	5
5505.18 be amended and section 5505.178 of the Revised Code be	6
enacted to read as follows:	7

Sec. 5505.01.  As used in this chapter:

8

(A) "Employee" means any qualified employee in the uniform	9
division of the state highway patrol, any qualified employee in	10
the radio division hired prior to November 2, 1989, and any state	11
highway patrol cadet attending training school pursuant to section	12
5503.05 of the Revised Code whose attendance at the school begins	13
on or after June 30, 1991. "Employee" includes the superintendent	14
of the state highway patrol. In all cases of doubt, the state	15
highway patrol retirement board shall determine whether any person	16
is an employee as defined in this division, and the decision of	17
the board is final.	18

(B) "Prior service" means all service rendered as an	19
employee of the state highway patrol prior to September 5, 1941,	20
to the extent credited by the board, provided that in no case	21
shall prior service include service rendered prior to November 15,	22
1933.	23

(C) "Total service" means all service rendered by an	24
employee to the extent credited by the board. Total service	25
includes all of the following:	26

(1) Contributing service rendered by the employee since last	27
becoming a member of the state highway patrol retirement system;	28

(2) All prior service credit;

29

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

30

(4) Military service credit purchased under division (D) of	31
section 5505.16 or section 5505.25 of the Revised Code;	32

(5) Credit granted under division (C) of section 5505.17 or	33
section 5505.201, 5505.40, or 5505.402 of the Revised Code;	34

(6) Credit for any period, not to exceed three years, during	35
which the member was out of service and receiving benefits under	36
Chapters 4121. and 4123. of the Revised Code.	37

(D) "Beneficiary" means any person, except a retirant, who	38
is in receipt of a pension or other benefit payable from funds of	39
the retirement system.	40

(E) "Regular interest" means interest compounded at rates	41
designated from time to time by the retirement board.	42

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

43

(G) "Retirement system" or "system" means the state highway	44
patrol retirement system created and established in the plan.	45

(H) "Contributing service" means all service rendered by a	46
member since September 4, 1941, for which deductions were made	47
from the member's salary under the plan.	48

(I) "Retirement board" or "board" means the state highway	49
patrol retirement board provided for in the plan.	50

(J) Except as provided in section 5505.18 of the Revised	51
Code, "member" means any employee included in the membership of	52
the retirement system, whether or not rendering contributing	53
service.	54

(K) "Retirant" means any member who retires with a pension	55
payable from the retirement system.	56

(L) "Accumulated contributions" means the sum of allthe	57
following credited to a member's individual account in the	58
employees' savings fund:	59

(1) All amounts deducted from the salary of athe member and	60
credited to the member's individual account in the employees'	61
savings fund;	62

(2) All amounts paid by the member to purchase state highway	63
patrol retirement system service credit pursuant to this chapter	64
or other state law.	65

(M)(1) Except as provided in division (M)(2) of this	66
section, "final average salary" means the average of the highest	67
salary paid a member during any three consecutive or	68
nonconsecutive years.	69

If a member has less than three years of contributing	70
service, the member's final average salary shall be the average of	71
the annual rates of salary paid to the member during the member's	72
total years of contributing service.	73

(2) If a member is credited with service under division	74
(C)(6) of this section or division (D) of section 5505.16 of the	75
Revised Code, the member's final average salary shall be the	76
average of the highest salary that was paid to the member or would	77
have been paid to the member, had the member been rendering	78
contributing service, during any three consecutive or	79
nonconsecutive years. If that member has less than three years of	80
total service, the member's final average salary shall be the	81
average of the annual rates of salary that were paid to the member	82
or would have been paid to the member during the member's years of	83
total service.	84

(N) "Pension" means an annual amount payable by the	85
retirement system throughout the life of a person or as otherwise	86
provided in the plan. All pensions shall be paid in equal monthly	87
installments.	88

(O) "Pension reserve" means the present value of any	89
pension, or benefit in lieu of any pension, computed upon the	90
basis of mortality and other tables of experience and interest the	91
board shall from time to time adopt.	92

(P) "Deferred pension" means a pension for which an eligible	93
member of the system has made application and which is payable as	94
provided in division (A) or (B) of section 5505.16 of the Revised	95
Code.	96

(Q) "Retirement" means termination as an employee of the	97
state highway patrol, with application having been made to the	98
system for a pension or a deferred pension.	99

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

100

(1) A person who exercises any discretionary authority or	101
control with respect to the management of the system, or with	102
respect to the management or disposition of its assets;	103

(2) A person who renders investment advice for a fee, direct	104
or indirect, with respect to money or property of the system;	105

(3) A person who has any discretionary authority or	106
responsibility in the administration of the system.	107

(S)(1) Except as otherwise provided in this division,	108
"salary" means all compensation, wages, and other earnings paid to	109
a member by reason of employment but without regard to whether any	110
of the compensation, wages, or other earnings are treated as	111
deferred income for federal income tax purposes. Salary includes	112
all of the following:	113

(a) Payments for shift differential, hazard duty,	114
professional achievement, and longevity;	115

(b) Payments for occupational injury leave, personal leave,	116
sick leave, bereavement leave, administrative leave, and vacation	117
leave used by the member;	118

(c) Payments made under a disability leave program sponsored	119
by the state for which the state is required by section 5505.151	120
of the Revised Code to make periodic employer and employee	121
contributions to the retirement system.	122

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

123

(a) Payments resulting from the conversion of accrued but	124
unused sick leave, personal leave, compensatory time, and vacation	125
leave;	126

(b) Payments made by the state to provide life insurance,	127
sickness, accident, endowment, health, medical, hospital, dental,	128
or surgical coverage, or other insurance for the member or the	129
member's family, or amounts paid by the state to the member in	130
lieu of providing that insurance;	131

(c) Payments for overtime work;

132

(d) Incidental benefits, including lodging, food, laundry,	133
parking, or services furnished by the state, use of property or	134
equipment of the state, and reimbursement for job-related expenses	135
authorized by the state including moving and travel expenses and	136
expenses related to professional development;	137

(e) Payments made to or on behalf of a member that are in	138
excess of the annual compensation that may be taken into account	139
by the retirement system under division (a)(17) of section 401 of	140
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	141
401 (a)(17), as amended;	142

(f) Payments made under division (B), (C), or (E) of section	143
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	144
No. 3 of the 119th general assembly, Section 3 of Amended	145
Substitute Senate Bill No. 164 of the 124th general assembly, or	146
Amended Substitute House Bill No. 405 of the 124th general	147
assembly.	148

(3) The retirement board shall determine by rule whether any	149
compensation, wages, or earnings not enumerated in this division	150
are salary, and its decision shall be final.	151

(T) "Actuary" means an individual who satisfies all of the	152
following requirements:	153

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

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

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(3) Has a minimum of five years' experience in providing	156
actuarial services to public retirement plans.	157

Sec. 5505.162.  (A) On application for retirement as	158
provided in section 5505.16 of the Revised Code, a member of the	159
state highway patrol retirement system may elect, on a form	160
provided by the state highway patrol retirement board, to receive	161
athe pension that the member is eligible to receive on retirement	162
under that section in one of the following forms:	163

(1) A single lifetime pension or he may elect, on a form	164
provided by the state highway patrol retirement board, to receive	165
the;	166

(2) The actuarial equivalent of thisthe single lifetime	167
pension that the member may elect under division (A)(1) of this	168
section in a lesser annual amount payable for histhe member's	169
life and continuing after histhe member's death to a surviving	170
designated beneficiary under one of the following optional plans,	171
provided the annual amount payable to the designated beneficiary	172
shall not exceed the annual amount payable to such retiring	173
member, the amount is certified by the actuary employed by the	174
system to be the actuarial equivalent of histhe member's pension,	175
and the amount is approved by the board:	176

(1)(a) Option 1. HisThe member's lesser pension shall be	177
paid for life to histhe member's sole beneficiary designated at	178
the time of retirement.	179

(2)(b) Option 2. One-half or some other portion of histhe	180
member's lesser pension shall be paid for life to histhe member's	181
sole beneficiary designated at the time of his retirement.	182

(3)(c) Option 3. Upon his death before the expiration of a	183
certain period from histhe member's retirement date as elected by	184
himthe member and approved by the board, histhe member's lesser	185
pension shall be continued for the remainder of such period to the	186
beneficiaries, and in such order, as designated by himthe member	187
in writing and filed with the board. No monthly payments shall be	188
paid to joint beneficiaries, but they may jointly receive the	189
present value of any remaining payments in a lump sum settlement.	190
If all designated beneficiaries die before the expiration of such	191
period, the present value of all the payments yet remaining in the	192
period shall be paid to the estate of the beneficiary last	193
receiving such payments.	194

(3) If the member has attained age fifty-one with at least	195
twenty-five years' total service or fifty-two with at least twenty	196
years' total service, a pension consisting of both a partial	197
benefit lump sum in an amount the member designates that	198
constitutes a portion of the single lifetime pension the member	199
may elect under division (A)(1) of this section and the actuarial	200
equivalent of the remainder of the single lifetime pension payable	201
for the member's life, provided an actuary employed by the system	202
certifies the actuarial equivalent and the board approves the	203
partial benefit lump sum payment and the amount to be paid as the	204
actuarial equivalent.	205

The amount designated by a member shall be not less than six	206
times the monthly amount that would be payable to the member as a	207
single lifetime pension under division (A)(1) of this section and	208
not more than sixty times that amount.	209

A member who has attained the age of fifty-one with	210
twenty-five years of service who elects a partial benefit lump sum	211
may designate an amount that does not exceed an amount equal to	212
one month's pension for each month of service beyond twenty-five	213
years. A member who has attained the age of fifty-two with twenty	214
years of service who elects a partial benefit lump sum may	215
designate an amount that does not exceed an amount equal to one	216
month's pension for each month of service beyond twenty years.	217

(B)(1) The death of a spouse designated as beneficiary or	218
the death of any other designated beneficiary following retirement	219
shall cancel any optional plan of payment selected under division	220
(A)(2) of this section to provide continuing lifetime benefits to	221
such designated beneficiary and return the member to the	222
equivalent of histhe member's single lifetime pension, as	223
determined by the board, to be effective the month following	224
receipt by the board of notice of the death.	225

(2) On divorce, annulment, or marriage dissolution, a member	226
receiving a pension under a plan that provides for continuation of	227
all or part of the pension after his death for the lifetime of his	228
the member's surviving spouse may, with the written consent of the	229
spouse or pursuant to an order of the court with jurisdiction over	230
the termination of the marriage, elect to cancel the plan and	231
receive the equivalent of histhe member's single lifetime pension	232
as determined by the board. The election shall be made on a form	233
provided by the board and shall be effective the month following	234
its receipt by the board.	235

(C) Following marriage or remarriage, a member may elect a	236
new optional plan of payment under division (A)(2) of this section	237
based on the actuarial equivalent of histhe member's single	238
lifetime pension as determined by the board. The plan shall	239
become effective the first day of the month following receipt by	240
the board of an application on a form approved by the board.	241

(D) A member who has elected an optional plan under division	242
(A)(2) of this section may, with the written consent of the	243
designated beneficiary, cancel the optional plan and receive the	244
single lifetime pension payable throughout his life hethat the	245
member would have received had he not elected the optional plan	246
the member elected the single lifetime pension under division	247
(A)(1) of this section, if hethe member makes a request to cancel	248
the optional plan not later than one year after the date on which	249
the member first receives a payment under the plan. Cancellation	250
of the optional plan shall be effective the month after acceptance	251
of the request by the board. No payment or adjustment shall be	252
made in the single lifetime pension payable throughout the	253
member's life to compensate for the lesser pension hethe member	254
received under the optional plan.	255

The request to cancel the optional plan shall be made on a	256
form provided by the board and shall be valid only if the	257
completed form includes a signed statement of the designated	258
beneficiary's understanding of and consent to the cancellation.	259
The designated beneficiary's signature shall be verified by the	260
board prior to its acceptance of the cancellation.	261

(E) Any option elected and payments made under division	262
(A)(2) of this section shall be in addition to any pension payable	263
to the member's surviving spouse, children, or parents under	264
section 5505.17 of the Revised Code.	265

Sec. 5505.163.  (A) A retirant who retired prior to	266
September 21, 1994, under section 5505.16 of the Revised Code may	267
elect to receive the actuarial equivalent of the retirant's	268
pension in a lesser amount payable for the remainder of the	269
retirant's life and continuing after death to the retirant's	270
surviving designated beneficiary under one of the optional plans	271
described in division (A)(1), (2), or (3)(a), (b), or (c) of	272
section 5505.162 of the Revised Code, provided the annual amount	273
payable to the designated beneficiary shall not exceed the annual	274
amount payable to the retirant, the amount is certified by the	275
actuary employed by the state highway patrol retirement system to	276
be the actuarial equivalent of the retirant's pension, and the	277
state highway patrol retirement board approves the amount.	278

(B) A retirant interested in making the election authorized	279
by division (A) of this section shall file a notice of interest	280
with the board not later than sixty days after the effective date	281
of this sectionJune30, 2000. The board shall advise the	282
retirant with respect to the choices available under the optional	283
plans and have a determination made of the monthly pension payable	284
under the optional plan elected by the member for inclusion in the	285
statement to be filed under division (C) of this section.	286

(C) To make the election authorized by division (A) of this	287
section, a retirant shall file a statement, on a form provided by	288
the board, indicating that the retirant elects to participate in	289
the optional plan specified in the statement. The form must be	290
filed with the board not later than one hundred twenty days after	291
the effective date of this sectionJune30, 2000.	292

(D) A notice or statement mailed to the board shall be	293
considered to have been filed on its postmark date.	294

(E) Any option elected and payments made under this section	295
shall be in addition to any pension payable to the retirant's	296
surviving spouse, children, or parents under section 5505.17 of	297
the Revised Code.	298

Sec. 5505.178. Except as provided in division (A)(3) of	299
section 5505.162 of the Revised Code, all pensions shall be paid	300
in equal monthly installments.	301

Sec. 5505.18.  As used in this section, "member" does not	302
include state highway patrol cadets attending training schools	303
pursuant to section 5503.05 of the Revised Code.	304

(A) Upon the application of a member of the state highway	305
patrol retirement system, a person acting on behalf of a member,	306
or the superintendent of the state highway patrol on behalf of a	307
member, a member who becomes totally and permanently incapacitated	308
for duty in the employ of the state highway patrol may be retired	309
by the board.	310

The medical or psychological examination of a member who has	311
applied for disability retirement shall be conducted by a	312
competent physicianhealth-care professional or physicians	313
professionals appointed by the board. The physicianhealth-care	314
professional or physiciansprofessionals shall file a written	315
report with the board containing the following information:	316

(1) Whether the member is totally incapacitated for duty in	317
the employ of the patrol;	318

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

319

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

320

The board shall determine whether the member qualifies for	321
disability retirement and its decision shall be final. The board	322
shall consider the written medical or psychological report,	323
opinions, statements, and other competent evidence in making its	324
determination. If the incapacity is a result of heart disease or	325
any cardiovascular disease of a chronic nature, which disease or	326
any evidence of which was not revealed by the physical examination	327
passed by the member on entry into the patrol, the member is	328
presumed to have incurred the disease in the line of duty as a	329
member of the patrol, unless the contrary is shown by competent	330
evidence.	331

(B)(1) A member whose retirement on account of disability	332
incurred in the line of duty shall receive the applicable pension	333
provided for in section 5505.17 of the Revised Code, except that	334
if the member has less than twenty-five years of contributing	335
service, the member's service credit shall be deemed to be	336
twenty-five years for the purpose of this provision. In no case	337
shall the member's disability pension be less than sixty-one and	338
one-quarter per cent or exceed the lesser of seventy-nine and	339
one-quarter per cent of the member's final average salary or the	340
limit established by section 415 of the "Internal Revenue Code of	341
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	342

(2) A member whose retirement on account of disability	343
incurred not in the line of duty shall receive the applicable	344
pension provided for in section 5505.17 of the Revised Code,	345
except that if the member has less than twenty years of	346
contributing service, the member's service credit shall be deemed	347
to be twenty years for the purpose of this provision. In no case	348
shall the member's disability pension exceed the lesser of	349
seventy-nine and one-quarter per cent of the member's final	350
average salary or the limit established by section 415 of the	351
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	352
as amended.	353

(C) The state highway patrol retirement board shall adopt	354
rules requiring a disability pension recipient, as a condition of	355
continuing to receive a disability pension, to agree in writing to	356
obtain any medical or psychological treatment recommended by the	357
board's physicianhealth-care professional and submit medical or	358
psychological reports regarding the treatment. If the board	359
determines that a disability pension recipient is not obtaining	360
the medical or psychological treatment or the board does not	361
receive a required medical or psychological report, the disability	362
pension shall be suspended until the treatment is obtained, the	363
report is received by the board, or the board's physician	364
health-care professional certifies that the treatment is no longer	365
helpful or advisable. Should the recipient's failure to obtain	366
treatment or submit a medical or psychological report continue for	367
one year, the recipient's right to the disability benefit shall be	368
terminated as of the effective date of the original suspension.	369

(D) A member placed on a disability pension who has not	370
attained the age of fifty-five years shall be subject to an annual	371
medical or psychological re-examination by physicianshealth-care	372
professionals appointed by the board, except that the board may	373
waive the medical re-examination if the board's physicians	374
health-care professionals certify that the member's disability is	375
ongoing. If any member placed on a disability pension refuses to	376
submit to a medical or psychological re-examination, the member's	377
disability pension shall be suspended until the member withdraws	378
the refusal. If the refusal continues for one year, all the	379
member's rights under and to the disability pension shall be	380
terminated as of the effective date of the original suspension.	381

(E) Each recipient of a disability pension who has not	382
attained the age of fifty-five years shall file with the board an	383
annual statement of earnings, current medical or psychological	384
information on the recipient's condition, and any other	385
information required in rules adopted by the board. The board may	386
waive the requirement that a disability benefit recipient file an	387
annual statement of earnings or current medical or psychological	388
information if the board's physicianhealth-care professional	389
certifies that the recipient's disability is ongoing.	390

The board shall annually examine the information submitted by	391
the recipient. If a recipient refuses to file the statement or	392
information, the disability pension shall be suspended until the	393
statement and information are filed. If the refusal continues for	394
one year, the right to the pension shall be terminated as of the	395
effective date of the original suspension.	396

(F)(1) Except as provided in division (F)(2) of this	397
section, a retirant who has been on disability pension, and who	398
has been physically or psychologically examined and found no	399
longer incapable of performing the retirant's duties, shall be	400
restored to the rank the retirant held at the time the retirant	401
was pensioned and all previous rights shall be restored, including	402
the retirant's civil service status, and the disability pension	403
shall terminate. Upon return to employment in the patrol, the	404
retirant shall again become a contributing member of the	405
retirement system, the total service at the time of the retirant's	406
retirement shall be restored to the retirant's credit, and the	407
retirant shall be given service credit for the period the retirant	408
was in receipt of a disability pension. The provisions of	409
division (F)(1) of this section shall be retroactive to September	410
5, 1941.	411

(2) The state highway patrol is not required to take action	412
under division (F)(1) of this section if the retirant was	413
dismissed or resigned in lieu of dismissal for dishonesty,	414
misfeasance, malfeasance, or conviction of a felony.	415

(G) The board may adopt rules to carry out this section,	416
including rules that specify the types of health-care	417
professionals the board may appoint for the purpose of this	418
section.	419

Section 2. That existing sections 5505.01, 5505.162,	420
5505.163, and 5505.18 of the Revised Code are hereby repealed.	421