REPRESENTATIVES Schuring, Ogg, Boccieri, Barrett, Brown, Lendrum, Willamowski, White, DeWine, Schneider, Hollister, Perry, Rhine, Clancy, Niehaus, Otterman, Carano, Redfern, Seitz, Driehaus, Core, Salerno, Carey, Calvert, Aslanides, Womer Benjamin, Roman, Key, DePiero, Latell, Schmidt, Britton, Young, Seaver, Reidelbach, DeBose, Flannery, Reinhard, Hughes, Olman, Gilb, Carmichael, Buehrer, Latta, Schaffer, Hagan, Fessler, D. Miller, Beatty, Fedor, Cirelli, Coates, Sferra, G. Smith, Allen

To amend sections 742.03, 742.14, 742.351, 742.37,

1

742.3716, 742.46, and 742.63; to amend, for the

2

purpose of adopting new section numbers as

3

indicated in parentheses, sections 742.43 (742.113)

4

and 742.44 (742.101); to enact new sections 742.43

5

and 742.44 and sections 742.441, 742.442, 742.443,

6

742.444, 742.445, 742.446, and 742.447 of the

7

Revised Code to provide for establishment of the

8

Ohio Police and Fire Pension Fund deferred

9

retirement option plan.

10

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

Section 1. That sections 742.03, 742.14, 742.351, 742.37,	11
742.3716, 742.46, and 742.63 be amended; sections 742.43 (742.113)	12
and 742.44 (742.101) be amended, for the purpose of adopting new	13
section numbers as indicated in parentheses; and new sections	14
742.43 and 742.44 and sections 742.441, 742.442, 742.443, 742.444,	15
742.445, 742.446, and 742.447 of the Revised Code be enacted to	16
read as follows:	17

Sec. 742.03.  (A) As used in this section and in sections	18
742.04 and 742.05 of the Revised Code:	19

(1) "Police officer" means a member of the fund who is or	20
has been an employee of a police department and is not a police	21
retirant.	22

(2) "Firefighter" means a member of the fund who is or has	23
been an employee of a fire department and is not a firefighter	24
retirant.	25

(3) "Firefighter retirant" means a member of the fund who is	26
receiving an age and service or disability benefit as a result of	27
service in a fire department or a surviving spouse of a deceased	28
member who is receiving a benefit as a result of the deceased	29
member's service in a fire department. "Firefighter retirant" does	30
not include a member of the fund who is participating in the	31
deferred retirement option plan established under section 742.43	32
of the Revised Code.	33

(4) "Police retirant" means a member of the fund who is	34
receiving an age and service or disability benefit as a result of	35
service in a police department or a surviving spouse of a deceased	36
member who is receiving a benefit as a result of the deceased	37
member's service in a police department. "Police retirant" does	38
not include a member of the fund who is participating in the	39
deferred retirement option plan established under section 742.43	40
of the Revised Code.	41

(B) The administration, control, and management of the Ohio	42
police and fire pension fund, created under section 742.02 of the	43
Revised Code, is vested in a board of trustees of the Ohio police	44
and fire pension fund, which shall consist of nine members as	45
follows:	46

(1) The attorney general;

47

(2) The auditor of state;

48

(3) The fiscal officer of a municipal corporation who shall	49
be appointed by the governor. This member's term shall be for	50
three years, commencing on the fourth day of June and ending on	51
the third day of June. The fiscal officer member shall hold	52
office from the date of appointment until the end of the term for	53
which appointed. Any fiscal officer member appointed to fill a	54
vacancy occurring prior to the expiration of the term for which	55
the fiscal officer member's predecessor was appointed shall hold	56
office for the remainder of such term. Any fiscal officer member	57
shall continue in office subsequent to the expiration date of the	58
fiscal officer member's term until such member's successor takes	59
office, or until a period of sixty days has elapsed, whichever	60
occurs first.	61

(4) Four members known as employee members.

62

Two employee members shall be police officers elected by	63
police officers. Two employee members shall be firefighters	64
elected by firefighters. Employee members of the board shall be	65
elected for terms of four years as provided by section 742.04 of	66
the Revised Code.	67

(5) One member known as the firefighter retirant member, who	68
shall be a resident of this state elected by the firefighter	69
retirants. The firefighter retirant member shall be elected for a	70
term of four years as provided by section 742.04 of the Revised	71
Code.	72

(6) One member known as the police retirant member, who	73
shall be a resident of this state elected by the police retirants.	74
The police retirant member shall be elected for a term of four	75
years as provided by section 742.04 of the Revised Code.	76

(C) No employee member of the board who retires while a	77
member of the board shall be eligible to become a retirant member	78
for three years after the date of the member's retirement.	79

Sec. 742.44.        Sec. 742.101.  The board of trustees of the Ohio	80
police and fire pension fund shall estimate annually the amount	81
required to pay its expenses for the ensuing year, and shall fix	82
the amount which shall be transferred from the guarantee fund to	83
the expense fund.	84

Sec. 742.43.        Sec. 742.113.  Except as provided in sections 742.01	85
to 742.61 of the Revised Code, no trustee and no employee of the	86
board of trustees of the Ohio police and fire pension fund shall	87
have any interest, direct or indirect, in the gains or profits of	88
any investment made by the board nor as such, directly or	89
indirectly, receive any pay or annual emolument for the trustee's	90
or employee's services. No trustee or employee of said board	91
shall, directly or indirectly, for self or as an agent or partner	92
of others, borrow any funds or deposits over which the board has	93
jurisdiction or use the same except to make such current and	94
necessary payments as are authorized by the board; nor shall any	95
member or employee of the said board become an endorser or surety	96
or become in any manner an obligor for money loaned by or borrowed	97
from the board.	98

Sec. 742.14.  (A) The board of trustees of the Ohio police	99
and fire pension fund shall have prepared annually by or under the	100
supervision of an actuary an actuarial valuation of the pension	101
assets, liabilities, and funding requirements of the Ohio police	102
and fire pension fund as established pursuant to sections 742.01	103
to 742.61 of the Revised Code. The actuary shall complete the	104
valuation in accordance with actuarial standards of practice	105
promulgated by the actuarial standards board of the American	106
academy of actuaries and prepare a report of the valuation. The	107
report shall include all of the following:	108

(1) A summary of the benefit provisions evaluated;

109

(2) A summary of the census data and financial information	110
used in the valuation;	111

(3) A description of the actuarial assumptions, actuarial	112
cost method, and asset valuation method used in the valuation,	113
including a statement of the assumed rate of payroll growth and	114
assumed rate of growth or decline in the number of members of the	115
fund contributing to the pension fund;	116

(4) A summary of findings that includes a statement of the	117
actuarial accrued pension liabilities and unfunded actuarial	118
accrued pension liabilities;	119

(5) A schedule showing the effect of any changes in the	120
benefit provisions, actuarial assumptions, or cost methods since	121
the last annual actuarial valuation;	122

(6) A statement of whether contributions to the pension fund	123
are expected to be sufficient to satisfy the funding objectives	124
established by the board.	125

The board shall submit the report to the Ohio retirement	126
study council and the standing committees of the house of	127
representatives and the senate with primary responsibility for	128
retirement legislation not later than the first day of November	129
following the year for which the valuation was made.	130

(B) The board shall annually thereafter have prepared by an	131
actuary a report showing the adequacy of the rate of the police	132
officer employers' contribution provided for by section 742.33 of	133
the Revised Code, and the adequacy of the rate of the firefighter	134
employers' contribution provided for by section 742.34 of the	135
Revised Code.	136

(C) At such times as the board determines, and at least once	137
in each quinquennial period, the board shall have prepared by or	138
under the supervision of an actuary an actuarial investigation of	139
the mortality, service, and other experience of the members of the	140
fund and of other system retirants, as defined in section 742.26	141
of the Revised Code, who are members of a police department or a	142
fire department to update the actuarial assumptions used in the	143
actuarial valuation required by division (A) of this section. The	144
actuary shall prepare a report of the actuarial investigation. The	145
report shall be prepared and any recommended changes in actuarial	146
assumptions shall be made in accordance with the actuarial	147
standards of practice promulgated by the actuarial standards board	148
of the American academy of actuaries. The report shall include	149
all of the following:	150

(1) A summary of relevant decrement and economic assumption	151
experience observed over the period of the investigation;	152

(2) Recommended changes in actuarial assumptions to be used	153
in subsequent actuarial valuations required by division (A) of	154
this section;	155

(3) A measurement of the financial effect of the recommended	156
changes in actuarial assumptions;	157

(4) If the investigation required by this division includes	158
the investigation required by division (F) of this section, a	159
report of the result of that investigation.	160

The board shall submit the report to the Ohio retirement	161
study council and the standing committees of the house of	162
representatives and the senate with primary responsibility for	163
retirement legislation not later than the first day of November	164
following the last fiscal year of the period the report covers.	165

(D) The board shall have prepared by or under the	166
supervision of an actuary an actuarial analysis of any introduced	167
legislation expected to have a measurable financial impact on the	168
pension fund. The actuarial analysis shall be completed in	169
accordance with the actuarial standards of practice promulgated by	170
the actuarial standards board of the American academy of	171
actuaries. The actuary shall prepare a report of the actuarial	172
analysis, which shall include all of the following:	173

(1) A summary of the statutory changes that are being	174
evaluated;	175

(2) A description of or reference to the actuarial	176
assumptions and actuarial cost method used in the report;	177

(3) A description of the participant group or groups	178
included in the report;	179

(4) A statement of the financial impact of the legislation,	180
including the resulting increase, if any, in the employer normal	181
cost percentage; the increase, if any, in actuarial accrued	182
liabilities; and the per cent of payroll that would be required to	183
amortize the increase in actuarial accrued liabilities as a level	184
per cent of covered payroll for all active members of the fund	185
over a period not to exceed thirty years;	186

(5) A statement of whether the scheduled contributions to	187
the system after the proposed change is enacted are expected to be	188
sufficient to satisfy the funding objectives established by the	189
board.	190

Not later than sixty days from the date of introduction of	191
the legislation, the board shall submit a copy of the actuarial	192
analysis to the legislative budget office of the legislative	193
service commission, the standing committees of the house of	194
representatives and the senate with primary responsibility for	195
retirement legislation, and the Ohio retirement study council.	196

(E) The board shall have prepared annually a report giving a	197
full accounting of the revenues and costs relating to the	198
provision of benefits under section 742.45 of the Revised Code.	199
The report shall be made as of December 31, 1997, and the	200
thirty-first day of December of each year thereafter. The report	201
shall include the following:	202

(1) A description of the statutory authority for the	203
benefits provided;	204

(2) A summary of the benefits;

205

(3) A summary of the eligibility requirements for the	206
benefits;	207

(4) A statement of the number of participants eligible for	208
the benefits;	209

(5) A description of the accounting, asset valuation, and	210
funding method used to provide the benefits;	211

(6) A statement of the net assets available for the	212
provision of the benefits as of the last day of the fiscal year;	213

(7) A statement of any changes in the net assets available	214
for the provision of benefits, including participant and employer	215
contributions, net investment income, administrative expenses, and	216
benefits provided to participants, as of the last day of the	217
fiscal year;	218

(8) For the last six consecutive fiscal years, a schedule of	219
the net assets available for the benefits, the annual cost of	220
benefits, administrative expenses incurred, and annual employer	221
contributions allocated for the provision of benefits;	222

(9) A description of any significant changes that affect the	223
comparability of the report required under this division;	224

(10) A statement of the amount paid under division (C) of	225
section 742.45 of the Revised Code.	226

The board shall submit the report to the Ohio retirement	227
study council and the standing committees of the house of	228
representatives and the senate with primary responsibility for	229
retirement legislation not later than the thirtieth day of June	230
following the year for which the report was made.	231

(F) At least once in each quinquennial period, the board	232
shall have prepared by or under the supervision of an actuary an	233
actuarial investigation of the deferred retirement option plan	234
established under section 742.43 of the Revised Code. The	235
investigation shall include an examination of the financial	236
impact, if any, on the fund of offering the plan to members.	237

The actuary shall prepare a report of the actuarial	238
investigation. The report shall include a determination of	239
whether the plan, as established or modified, has a negative	240
financial impact on the fund and, if so, recommendations on how to	241
modify the plan to eliminate the negative financial impact. If	242
the actuarial report indicates that the plan has a negative	243
financial impact on the fund, the board may modify the plan or	244
cease to allow members who have not already done so to elect to	245
participate in the plan. The firefighter and police officers	246
employers' contributions shall not be increased to offset any	247
negative financial impact of the plan.	248

If the board ceases to allow members to elect to participate	249
in the plan, the rights and obligations of members who have	250
already elected to participate shall not be altered.	251

The board may include the actuarial investigation required	252
under this division as part of the actuarial investigation	253
required under division (C) of this section. If the report of the	254
actuarial investigation required by this division is not included	255
in the report required by division (C) of this section, the board	256
shall submit the report required by this division to the Ohio	257
retirement study council and the standing committees of the house	258
of representatives and the senate with primary responsibility for	259
retirement legislation not later than the first day of November	260
following the last fiscal year of the period the report covers.	261

Sec. 742.351.  (A) On receipt of written notice of a	262
member's election to retire under division (C) of section 742.37	263
of the Revised Code or to terminate active service as described in	264
division (B) of section 742.444 of the Revised Code, the Ohio	265
police and fire pension fund shall request from the employer	266
verification of the member's termination date and any other	267
information the fund determines necessary to calculate and pay a	268
pension under that division (C) of section 742.37 of the Revised	269
Code. The request shall be on a form created by the fund and	270
specify the date by which the information must be received by the	271
fund, which shall be sixty days after the form is sent by the	272
fund.	273

(B)(1) On receipt of a request for information under	274
division (A) of this section, the employer shall complete the form	275
and return it to the fund not later than the date specified by the	276
fund.	277

(2) If the fund does not receive the completed form by the	278
specified date, the fund shall send notice by certified mail to	279
the employer that unless the completed form is received not later	280
than thirty days after the specified date a penalty will be	281
imposed.	282

(C) The fund shall assess against an employer that fails to	283
return the completed form by the end of the period described in	284
division (B)(2) of this section a penalty determined under	285
section 742.353 of the Revised Code.	286

(D) The fund shall make one or more monthly payments to a	287
member whose pension does not commence by the ninety-first day	288
after the fund sends a request for information under division (A)	289
of this section due to the employer's failure to return the	290
completed form required under this section. Payment under this	291
division shall commence on the first day of the second month	292
following a month that includes a day for which an assessment	293
against the employer is required under division (C) of this	294
section. The payment shall be an amount equal to the penalty	295
assessed under division (C) of this section less any	296
administrative costs incurred by the fund in complying with this	297
section. Payment shall continue on a monthly basis until the	298
member receives the total amount attributable to the required	299
penalty for an employer's failure to return the form that was	300
requested for that member's information.	301

Sec. 742.37.  The board of trustees of the Ohio police and	302
fire pension fund shall adopt rules for the management of the fund	303
and for the disbursement of benefits and pensions as set forth in	304
this section and section 742.39 of the Revised Code. Any payment	305
of a benefit or pension under this section is subject to the	306
provisions of section 742.461 of the Revised Code. Notwithstanding	307
any other provision of this section, no pension or benefit paid or	308
determined under division (B) or (C) of this section or section	309
742.39 of the Revised Code shall exceed the limit established by	310
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	311
2085, 26 U.S.C.A. 415, as amended.	312

(A) Persons who were receiving benefit or pension payments	313
from a police relief and pension fund established under former	314
section 741.32 of the Revised Code, or from a firemen's relief and	315
pension fund established under former section 521.02 or 741.02 of	316
the Revised Code, at the time the assets of the fund were	317
transferred to the Ohio police and fire pension fund, known at	318
that time as the police and firemen's disability and pension fund,	319
shall receive benefit and pension payments from the Ohio police	320
and fire pension fund in the same amount and subject to the same	321
conditions as such payments were being made from the former fund	322
on the date of the transfer.	323

(B) A member of the fund who, pursuant to law, elected to	324
receive benefits and pensions from a police relief and pension	325
fund established under former section 741.32 of the Revised Code,	326
or from a firemen's relief and pension fund established under	327
former section 741.02 of the Revised Code, in accordance with the	328
rules of the fund governing the granting of benefits or pensions	329
therefrom in force on April 1, 1947, shall receive benefits and	330
pensions from the Ohio police and fire pension fund in accordance	331
with such rules; provided, that any member of the fund who is not	332
receiving a benefit or pension from the fund on August 12, 1975,	333
may, upon application for a benefit or pension to be received on	334
or after August 12, 1975, elect to receive a benefit or pension in	335
accordance with division (C) of this section.	336

(C) Members of the fund who have not elected to receive	337
benefits and pensions from a police relief and pension fund or a	338
firemen's relief and pension fund in accordance with the rules of	339
the fund in force on April 1, 1947, shall receive pensions and	340
benefits in accordance with the following provisions:	341

(1) A member of the fund who has completed twenty-five years	342
of active service in a police or fire department and has attained	343
forty-eight years of age may, at the member's election, retire	344
from the police or fire department, and. Except while	345
participating in the deferred retirement option plan established	346
under section 742.43 of the Revised Code, upon notifying the board	347
in writing of the election, the member shall receive an annual	348
pension, payable in twelve monthly installments, in an amount	349
equal to a percentage of the member's average annual salary. The	350
percentage shall be the sum of two and one-half per cent for each	351
of the first twenty years the member was in the active service of	352
the department, plus two per cent for each of the twenty-first to	353
twenty-fifth years the member was in the active service of the	354
department, plus one and one-half per cent for each year in excess	355
of twenty-five years the member was in the active service of the	356
department. The annual pension shall not exceed seventy-two per	357
cent of the member's average annual salary.	358

A member who completed twenty-five years of active service,	359
has resigned or been discharged, and has left the sum deducted	360
from the member's salary on deposit in the pension fund shall,	361
upon attaining forty-eight years of age, be entitled to receive a	362
normal service pension benefit computed and paid under division	363
(C)(1) of this section.	364

(2) A member of the fund who has served fifteen or more	365
years as an active member of a police or fire department and who	366
voluntarily resigns or is discharged from the department for any	367
reason other than dishonesty, cowardice, intemperate habits, or	368
conviction of a felony, shall receive an annual pension, payable	369
in twelve monthly installments, in an amount equal to one and	370
one-half per cent of the member's average annual salary multiplied	371
by the number of full years the member was in the active service	372
of the department. The pension payments shall not commence until	373
the member has attained the age of forty-eight years and until	374
twenty-five years have elapsed from the date on which the member	375
became a full-time regular police officer or firefighter in the	376
department.	377

(3) A member of the fund who has completed fifteen or more	378
years of active service in a police or fire department and who has	379
attained sixty-two years of age, may retire from the department	380
and, upon notifying the board in writing of the election to	381
retire, shall receive an annual pension, payable in twelve monthly	382
installments, in an amount equal to a percentage of the member's	383
average annual salary. The percentage shall be the sum of two and	384
one-half per cent for each of the first twenty years the member	385
was in the active service of the department, plus two per cent for	386
each of the twenty-first to twenty-fifth years the member was in	387
the active service of the department, plus one and one-half per	388
cent for each year in excess of twenty-five years the member was	389
in the active service of the department. The annual pension shall	390
not exceed seventy-two per cent of the member's average annual	391
salary.	392

(4) With the exception of those persons who may make	393
application for benefits as provided in section 742.26 of the	394
Revised Code, no person receiving a pension or other benefit under	395
division (C) of this section on or after July 24, 1986, shall be	396
entitled to apply for any new, changed, or different benefit.	397

If a member covered by division (C) of this section or	398
section 742.38 of the Revised Code dies prior to the time the	399
member has received a payment and leaves a surviving spouse or	400
dependent child, the surviving spouse or dependent child shall	401
receive a pension under division (D) or (E) of this section.	402

(D)(1) Except as provided in division (D)(2) of this	403
section, a surviving spouse of a deceased member of the fund or a	404
surviving spouse described in division (D)(4) of this section	405
shall receive a monthly pension as follows:	406

(a) For the period beginning July 1, 1999, and ending June	407
30, 2000, five hundred fifty dollars;	408

(b) For the period beginning July 1, 2000, and the first day	409
of July of each year thereafter and continuing for the following	410
twelve months, an amount equal to the monthly amount paid during	411
the prior twelve-month period plus sixteen dollars and fifty	412
cents.	413

(2) A surviving spouse of a deceased member of the fund	414
shall receive a monthly pension of four hundred ten dollars if the	415
surviving spouse is eligible for a benefit under division (B) or	416
(D) of section 742.63 of the Revised Code. If the surviving	417
spouse ceases to be eligible for a benefit under division (B) or	418
(D) of section 742.63 of the Revised Code, the pension shall be	419
increased, effective the first day of the first month following	420
the day on which the surviving spouse ceases to be eligible for	421
the benefit, to the amount it would be under division (D)(1) of	422
this section had the spouse never been eligible for a benefit	423
under division (B) or (D) of section 742.63 of the Revised Code.	424

(3) A pension paid under this division shall continue during	425
the natural life of the surviving spouse. Benefits to a deceased	426
member's surviving spouse that were terminated under a former	427
version of this section that required termination due to	428
remarriage and were not resumed prior to September 16, 1998, shall	429
resume on the first day of the month immediately following receipt	430
by the board of an application on a form provided by the board.	431

(4) A surviving spouse of a deceased member of or contributor	432
to a fund established under former Chapter 521. or 741. of the	433
Revised Code whose benefit or pension was terminated or not paid	434
due to remarriage shall receive a monthly pension under division	435
(D)(1) of this section.	436

The pension shall commence on the first day of the month	437
immediately following receipt by the board of a completed	438
application on a form provided by the board and evidence	439
acceptable to the board that at the time of death the deceased	440
spouse was a member of or contributor to a police or firemen's	441
relief and pension fund established under former Chapter 521. or	442
741. of the Revised Code and that the surviving spouse's benefits	443
were terminated or not granted due to remarriage.	444

(E)(1) Each surviving child of a deceased member of the	445
fund shall receive a monthly pension until the child attains the	446
age of eighteen years, or marries, whichever event occurs first. A	447
pension under this division, however, shall continue to be payable	448
to a child under age twenty-two who is a student in and attending	449
an institution of learning or training pursuant to a program	450
designed to complete in each school year the equivalent of at	451
least two-thirds of the full-time curriculum requirements of the	452
institution, as determined by the board. If any surviving child,	453
regardless of age at the time of the member's death, because of	454
physical or mental disability, is totally dependent upon the	455
deceased member for support at the time of death, the child shall	456
receive a monthly pension under this division during the child's	457
natural life or until the child has recovered from the disability.	458

(2) An eligible surviving child shall receive a monthly	459
pension as follows:	460

(a) For the period beginning July 1, 2002, and ending June	461
30, 2003, one hundred sixty-three dollars and fifty cents;	462

(b) For the period beginning July 1, 2003, and the first day	463
of each July thereafter and continuing for the following twelve	464
months, an amount equal to the monthly amount paid during the	465
prior twelve-month period plus four dollars and fifty cents.	466

(F)(1) If a deceased member of the fund leaves no surviving	467
spouse or surviving children, but leaves one or two parents	468
dependent upon the deceased member for support, each parent shall	469
be paid a monthly pension. The pensions provided for in this	470
division shall be paid during the natural life of the surviving	471
parents, or until dependency ceases, or until remarriage,	472
whichever event occurs first.	473

(2) Each eligible surviving parent shall be paid a monthly	474
pension as follows:	475

(a) For the period ending June 30, 2002, one hundred six	476
dollars for each parent or two hundred twelve dollars for a sole	477
dependent parent;	478

(b) For the period beginning July 1, 2002, and ending June	479
30, 2003, one hundred nine dollars for each parent or two hundred	480
eighteen dollars for a sole dependent parent;	481

(c) For the period beginning July 1, 2003, and the first day	482
of each July thereafter and continuing for the following twelve	483
months, an amount equal to the monthly amount paid during the	484
prior twelve-month period plus three dollars for each parent or	485
six dollars for a sole dependent parent.	486

(G) Subject to the provisions of section 742.461 of the	487
Revised Code, a member of the fund who voluntarily resigns or is	488
removed from active service in a police or fire department is	489
entitled to receive an amount equal to the sums deducted from the	490
member's salary and credited to the member's account in the fund,	491
except that a member receiving a disability benefit or service	492
pension is not entitled to receive any return of contributions to	493
the fund.	494

(H) On and after January 1, 1970, all pensions shall be	495
increased in accordance with the following provisions:	496

(1) A member of the fund who retired prior to January 1,	497
1967, has attained age sixty-five on January 1, 1970, and was	498
receiving a pension on December 31, 1969, pursuant to division (B)	499
or (C)(1) of this section or former division (C)(2), (3), (4), or	500
(5) of this section, shall have the pension increased by ten per	501
cent.	502

(2) The monthly pension payable to eligible surviving	503
spouses under division (D) of this section shall be increased by	504
forty dollars for each surviving spouse receiving a pension on	505
December 31, 1969.	506

(3) The monthly pension payable to each eligible child under	507
division (E) of this section shall be increased by ten dollars for	508
each child receiving a pension on December 31, 1969.	509

(4) The monthly pension payable to each eligible dependent	510
parent under division (F) of this section shall be increased by	511
thirty dollars for each parent receiving a pension on December 31,	512
1969.	513

(5) A member of the fund, including a survivor of a member,	514
who is receiving a pension in accordance with the rules governing	515
the granting of pensions and benefits in force on April 1, 1947,	516
that provide an increase in the original pension from time to time	517
pursuant to changes in the salaries of active members, shall not	518
be eligible for the benefits provided in this division.	519

(I) On and after January 1, 1977, a member of the fund who	520
was receiving a pension or benefit on December 31, 1973, under	521
division (A), (B), (C)(1), or former division (C)(2) or (7) of	522
this section shall have the pension or benefit increased as	523
follows:	524

(1) If the member's annual pension or benefit is less than	525
two thousand seven hundred dollars, it shall be increased to three	526
thousand dollars.	527

(2) If the member's annual pension or benefit is two	528
thousand seven hundred dollars or more, it shall be increased by	529
three hundred dollars.	530

The following shall not be eligible to receive increased	531
pensions or benefits as provided in this division:	532

(a) A member of the fund who is receiving a pension or	533
benefit in accordance with the rules in force on April 1, 1947,	534
governing the granting of pensions and benefits, which provide an	535
increase in the original pension or benefit from time to time	536
pursuant to changes in the salaries of active members;	537

(b) A member of the fund who is receiving a pension or	538
benefit under division (A) or (B) of this section, based on funded	539
volunteer or funded part-time service, or off-duty disability, or	540
partial on-duty disability, or early vested service;	541

(c) A member of the fund who is receiving a pension under	542
division (C)(1) of this section, based on funded volunteer or	543
funded part-time service.	544

(J) On and after July 1, 1977, a member of the fund who was	545
receiving an annual pension or benefit on December 31, 1973,	546
pursuant to division (B) of this section, based upon partial	547
disability, off-duty disability, or early vested service, or	548
pursuant to former division (C)(3), (5), or (6) of this section,	549
shall have such annual pension or benefit increased by three	550
hundred dollars.	551

The following are not eligible to receive the increase	552
provided by this division:	553

(1) A member of the fund who is receiving a pension or	554
benefit in accordance with the rules in force on April 1, 1947,	555
governing the granting of pensions and benefits, which provide an	556
increase in the original pension or benefit from time to time	557
pursuant to changes in the salaries of active members;	558

(2) A member of the fund who is receiving a pension or	559
benefit under division (B) or (C)(2) of this section or former	560
division (C)(3), (5), or (6) of this section based on volunteer or	561
part-time service.	562

(K)(1) Except as otherwise provided in this division, every	563
person who on July 24, 1986, is receiving an age and service or	564
disability pension, allowance, or benefit pursuant to this chapter	565
in an amount less than thirteen thousand dollars a year that is	566
based upon an award made effective prior to February 28, 1984,	567
shall receive an increase of six hundred dollars a year or the	568
amount necessary to increase the pension or benefit to four	569
thousand two hundred dollars after all adjustments required by	570
this section, whichever is greater.	571

(2) Division (K)(1) of this section does not apply to the	572
following:	573

(a) A member of the fund who is receiving a pension or	574
benefit in accordance with rules in force on April 1, 1947, that	575
govern the granting of pensions and benefits and that provide an	576
increase in the original pension or benefit from time to time	577
pursuant to changes in the salaries of active members;	578

(b) A member of the fund who is receiving a pension or	579
benefit based on funded volunteer or funded part-time service.	580

(L) On and after July 24, 1986:

581

(1) The pension of each person receiving a pension under	582
division (D) of this section on July 24, 1986, shall be increased	583
to three hundred ten dollars per month.	584

(2) The pension of each person receiving a pension under	585
division (E) of this section on July 24, 1986, shall be increased	586
to ninety-three dollars per month.	587

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

588

(1) "Eligible person" means a person who meets all of the	589
following conditions:	590

(a) Has been receiving a pension or benefit under this	591
chapter for one year or more based on an award made on or after	592
July 24, 1986;	593

(b) Has not made the election provided for in division (B)	594
of this section;	595

(c) Is not the spouse or survivor of a person who has made	596
the election provided for in division (B) of this section;	597

(d) Is receiving a benefit in accordance with division (A),	598
(B), or (C) of section 742.37, division (C)(2), (3), (4), or (5)	599
of former section 742.37, section 742.3711, or section 742.39 of	600
the Revised Code.	601

(2) "Recalculated average annual salary" means the highest	602
average annual compensation of a member of the Ohio police and	603
fire pension fund during any three years of contributions,	604
including amounts included in terminal pay attributable to such	605
three years, determined by dividing the member's total earnings as	606
an employee during such years by three.	607

(B)(1) Notwithstanding section 742.37 or 742.39 of the	608
Revised Code, a member of the fund who is not receiving a pension	609
or benefit under this chapter and who on January 1, 1989, has	610
completed fifteen or more years of active service in a police or	611
fire department may elect to have any future benefit or pension	612
paid to the member or the member's spouse or survivors under this	613
chapter calculated on the basis of the member's recalculated	614
average annual salary rather than the member's average annual	615
salary. The election shall be made by the member prior to or at	616
the time of making an election under section 742.3711 of the	617
Revised Code. This division does not apply to a member of the fund	618
who has elected to participate in the deferred retirement option	619
plan established under section 742.43 of the Revised Code.	620

(2) If the member eligible to make the election under	621
division (B)(1) of this section dies prior to making the election	622
and at the time of death is eligible to retire and receive a	623
pension or benefit under division (C)(1) or (3) of section 742.37	624
of the Revised Code, the person entitled to receive a benefit	625
under section 742.3714 of the Revised Code may make the election	626
provided for in division (B)(1) of this section.	627

(3) The election under division (B)(1) or (2) of this	628
section shall be made on forms provided by the trustees of the	629
fund. Once received by the fund, the election shall be	630
irrevocable and shall bind the member and any other person who	631
receives a pension or benefit based on the member's service. No	632
person who receives a pension or benefit calculated in accordance	633
with division (B) of this section is eligible to receive a	634
cost-of-living allowance under this section. If the person making	635
the election receives a benefit under section 742.3714 of the	636
Revised Code, that person is not eligible to receive a	637
cost-of-living allowance under section 742.3711 of the Revised	638
Code.	639

(C)(1) The board of trustees of the Ohio police and fire	640
pension fund shall annually increase all benefits payable to	641
eligible persons by three per cent, except that no benefit shall	642
exceed the limit established by section 415 of the "Internal	643
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	644
amended.	645

The first increase is payable to all eligible persons who on	646
July 1, 1988, have been receiving a pension or benefit for twelve	647
months or longer. The increase is payable for the ensuing	648
twelve-month period or until the next increase is granted under	649
this section, whichever is later.	650

The date of the first increase paid under this section shall	651
be the anniversary date for future increases. The pension or	652
benefit used in the first calculation of an increase under this	653
section shall remain as the base for all future increases paid	654
under this section, unless a new base is established by law.	655

(2) Increases paid in years subsequent to the year of the	656
first increase paid under this section shall be paid to all	657
eligible persons who, on the date that the increase is authorized	658
by the board, have been receiving a pension or benefit for twelve	659
months.	660

Sec. 742.43. The board of trustees of the Ohio police and	661
fire pension fund shall establish and administer a deferred	662
retirement option plan. In establishing and administering the	663
plan, the board shall comply with sections 742.44 to 742.446 of	664
the Revised Code and may do all things necessary to meet the	665
requirements of section 401(a) of the "Internal Revenue Code of	666
1986," as amended, applicable to governmental plans.	667

The board shall adopt rules to implement this section and	668
sections 742.44 to 742.446 of the Revised Code. The rules shall	669
specify the date of initial implementation of the plan established	670
under this section. The rules may also specify a period during	671
which an election made under section 742.44 of the Revised Code	672
may be rescinded.	673

Sec. 742.44. Except as provided in section 742.14 of the	674
Revised Code, at any time prior to filing an application for	675
retirement under division (C)(1) of section 742.37 of the Revised	676
Code, a member who is eligible to retire under that division may	677
elect to participate in the deferred retirement option plan	678
established under section 742.43 of the Revised Code.	679

To make an election, an eligible member shall complete and	680
submit to the Ohio police and fire pension fund a form prescribed	681
by the fund. At this time the member may, but is not required to,	682
elect under section 742.3711 of the Revised Code to have the	683
member's monthly pension calculated as a retirement allowance	684
payable throughout the member's life or a retirement allowance	685
that continues to a surviving beneficiary. Unless rescinded	686
during a period specified in rules adopted under section 742.43 of	687
the Revised Code, the election is irrevocable from the date it is	688
received by the fund until the employee ceases to participate in	689
the plan as provided in section 742.444 of the Revised Code.	690

A member is not required to specify the number of years or	691
portion of a year the member will participate in the plan but must	692
agree to terminate active service in a police or fire department	693
and begin receiving the member's pension not later than the date	694
that is eight years after the effective date of the election to	695
participate in the plan or be subject to the forfeiture provisions	696
of division (C) of section 742.444 of the Revised Code.	697

The effective date of an election made under this section is	698
the first day of the employer's first payroll period immediately	699
following the board's receipt of the notice of election.	700

Sec. 742.441. A member who makes an election under section	701
742.44 of the Revised Code shall continue in the active service of	702
a police or fire department but shall not earn service credit	703
under this chapter for employment after the election's effective	704
date. While the member is in the active service of a police or	705
fire department, the member shall contribute to the Ohio police	706
and fire pension fund in accordance with section 742.31 of the	707
Revised Code and the employer shall contribute and report in	708
accordance with either section 742.33 or 742.34 of the Revised	709
Code.	710

Neither the member nor the member's spouse and dependents	711
are eligible for benefits under section 742.45 of the Revised Code	712
while the member is participating in the deferred retirement	713
option plan.	714

Sec. 742.442. For each member who elects to participate in	715
the deferred retirement option plan, the Ohio police and fire	716
pension fund shall determine under division (C)(1) of section	717
742.37 of the Revised Code the monthly pension amount that would	718
be payable to the member had the member elected to receive a	719
pension under that division. In determining the pension amount,	720
the fund shall use the member's total service credit and average	721
annual salary as of the last day of the employer's payroll period	722
immediately prior to the effective date of the member's election	723
to participate in the plan. The pension amount shall be	724
calculated as a retirement allowance payable for the member's	725
life, except that, if at the time of electing to participate in	726
the plan the member selected another plan of payment, the pension	727
shall be calculated using the plan of payment selected.	728

A member who participates in the plan is not eligible to make	729
an election under division (B) of section 742.3716 of the Revised	730
Code.	731

Sec. 742.443. (A) During the period beginning on the	732
effective date of an election to participate in the deferred	733
retirement option plan and ending on the date participation	734
ceases, a member's monthly pension amount determined under section	735
742.442 of the Revised Code shall accrue to the member's benefit.	736
To this amount shall be added any benefit increases the member	737
would be eligible for under division (C) of section 742.3716 of	738
the Revised Code had the member, on the effective date of the	739
member's election, retired under division (C)(1) of section 742.37	740
of the Revised Code.	741

(B)(1) The amounts contributed under section 742.31 of the	742
Revised Code by a member participating in the deferred retirement	743
option plan shall accrue to the member's benefit as follows:	744

(a) During the period beginning on the first day of the	745
first payroll period after the election's effective date and	746
ending on the earlier of the date that is two years thereafter or	747
the date the member ceases participation in the plan, fifty per	748
cent of the member's contributions for that period;	749

(b) During the period beginning on the date that is two	750
years and one day after accruals begin under this division and	751
ending on the earlier of the date that is three years thereafter	752
or the date the member ceases participation in the plan,	753
seventy-five per cent of the member's contributions for that	754
period;	755

(c) During the period beginning on the date that is three	756
years and one day after accruals begin under this section and	757
ending on the date the member ceases participation in the plan,	758
one hundred per cent of the member's contributions for that	759
period.	760

(2) The Ohio police and fire pension fund shall credit the	761
portion of a member's contributions that are not accrued to the	762
member's benefit under division (B)(1) of this section to the	763
police officers' contribution fund or firefighters' contribution	764
fund, as appropriate.	765

(C) During the period beginning on the election's effective	766
date and ending on the date the member ceases participation in the	767
plan, the amounts described in divisions (A) and (B)(1) of this	768
section shall earn interest at an annual rate established by the	769
board of trustees of the fund and compounded annually using a	770
method established by rule adopted under section 742.43 of the	771
Revised Code.	772

Sec. 742.444. (A) A member's participation in the deferred	773
retirement option plan ceases on the occurrence of the earliest of	774
the following:	775

(1) Termination of the member's active service in a police or	776
fire department;	777

(2) The last day of the eight-year period that begins on the	778
effective date of the member's election to participate in the	779
plan;	780

(3) Acceptance by the member of a disability benefit awarded	781
by the board of trustees of the Ohio police and fire pension fund,	782
unless the acceptance is revoked by the member in accordance with	783
rules adopted by the board;	784

(4) The member's death.

785

(B) If a member terminates active service in a police or	786
fire department not later than eight years after the effective	787
date of the member's election to participate in the plan, all of	788
the following apply:	789

(1) The member shall notify the Ohio police and fire pension	790
fund of the date of termination on a form prescribed by the fund.	791
The member is not eligible to make another election under section	792
742.44 of the Revised Code.	793

(2) If the member's termination of active service occurs on	794
or after the date that is the first day of the fourth year after	795
the effective date of the election to participate in the plan, the	796
entire amount that has accrued to the member's benefit under the	797
deferred retirement option plan shall be distributed to the member	798
pursuant to the member's selection under division (B)(3) of this	799
section. If the termination of active service occurs before the	800
date that is four years after the effective date of the election	801
to participate, the member shall forfeit the total amount of the	802
interest credited under division (C) of section 742.443 of the	803
Revised Code.	804

(3) The member shall select one of the following as the	805
method of distribution of the amount to be distributed to the	806
member:	807

(a) A single payment;

808

(b) Periodic payments as determined by the board.

809

The fund shall retain amounts accrued to the benefit of a	810
member under the plan until a form specifying the method of	811
distribution selected is filed with the fund by the member or an	812
authorized representative of the member.	813

The board shall afford a member who selects periodic payments	814
the opportunity at least once during each calendar year to change	815
the member's selection.	816

(4) Distribution of the amount accrued to a member's benefit	817
under the deferred retirement option plan shall not commence until	818
the date that is the first day of the fourth year after the	819
effective date of the election.	820

(5) The member shall select a plan of payment under section	821
742.3711 of the Revised Code for the pension payable to the member	822
under division (C) of section 742.37 of the Revised Code, unless	823
the member selected a plan of payment at the time of electing to	824
participate in the plan. The pension shall commence on the first	825
day of the second month following the date the employee ceases to	826
participate in the plan.	827

(C) If, at the end of the eight-year period that begins on	828
the effective date of a member's election to participate in the	829
plan, the member has failed to terminate active service in a	830
police or fire department, all of the following apply:	831

(1) No further amounts shall accrue to the member's benefit,	832
and the member shall forfeit all amounts that have accrued to the	833
member's benefit under section 742.443 of the Revised Code. The	834
amounts forfeited shall be treated as if the member had continued	835
in the active service of a police or fire department and not	836
elected to participate in the plan.	837

(2) The member shall be granted service credit for the period	838
the member was participating in the plan, and when the member's	839
pension is calculated under section 742.37 of the Revised Code,	840
the calculation shall be made as though the member had never	841
participated in the plan.	842

(3) Further contributions, and service credit for those	843
contributions, shall be credited as provided in sections 742.31	844
through 742.34 of the Revised Code.	845

Sec. 742.445. If a member ceases participation in the	846
deferred retirement option plan due to acceptance by the member of	847
a disability benefit awarded by the board of trustees of the Ohio	848
police and fire pension fund, both of the following apply:	849

(A) The member shall forfeit all amounts that have accrued	850
under section 742.443 of the Revised Code to the member's benefit	851
under the deferred retirement option plan, and those amounts shall	852
be treated as if the member had continued in the active service of	853
a police or fire department and not participated in the plan.	854

(B) The member shall be granted service credit for the	855
period the member was participating in the plan.	856

Sec. 742.446. (A) As used in this section, "killed in the	857
line of duty" has the same meaning as in section 742.63 of the	858
Revised Code.	859

(B) If a member dies while participating in the deferred	860
retirement option plan, all of the following apply:	861

(1) The amounts accrued to the member's benefit shall be	862
paid to the member's surviving spouse or, if there is no surviving	863
spouse, the beneficiary designated by the member on a form	864
provided by the Ohio police and fire pension fund. If there is no	865
surviving spouse or designated beneficiary, the amounts accrued to	866
the member's benefit shall be paid to the member's estate. A	867
surviving spouse or designated beneficiary may select a method of	868
distribution described in division (B)(3) of section 742.444 of	869
the Revised Code. Any amount payable to the member's estate shall	870
be paid in a single payment.	871

(2) The surviving spouse shall receive a pension or benefit	872
determined under division (D) of section 742.37 of the Revised	873
Code and, if the member was killed in the line of duty, division	874
(F) of section 742.63 of the Revised Code.	875

(3) If eligible, each surviving child shall receive a	876
pension or benefit determined under division (E) of section 742.37	877
of the Revised Code and, if the member was killed in the line of	878
duty, division (G) of section 742.63 of the Revised Code.	879

(4) If the member has no surviving spouse or surviving	880
children, but has a parent or parents dependent on the member for	881
support, the parent or parents shall receive a pension or benefit	882
determined under division (F) of section 742.37 of the Revised	883
Code and, if the member was killed in the line of duty, division	884
(E) of section 742.63 of the Revised Code.	885

(5) The member's surviving spouse or contingent dependent	886
beneficiary shall receive the greater of a retirement allowance	887
under section 742.3714 of the Revised Code or the retirement	888
allowance resulting from an election made by the member under	889
section 742.3711 of the Revised Code.	890

(C) A pension, benefit, or allowance described in division	891
(B) of this section is effective on the first day of the month	892
after the member's date of death. Payments shall not commence	893
until the board receives any documentation it requires pursuant to	894
rules adopted by the board.	895

Sec. 742.447. On receipt of written notice under division (B)	896
of section 742.444 of the Revised Code of a member's termination	897
of active service, the Ohio police and fire pension fund shall	898
request from the employer verification of the member's termination	899
date and any other information the fund determines necessary to	900
calculate and pay a pension under that division. The verification	901
of termination shall be filed in accordance with section 742.351	902
of the Revised Code.	903

Sec. 742.46.  The granting of a benefit or pension to any	904
person under sections 742.01 to 742.61 of the Revised Code, other	905
than a person participating in the deferred retirement option plan	906
established under section 742.43 of the Revised Code, vests a	907
right in such person to obtain and receive the amount of such	908
benefit or pension granted to the person subject to sections	909
742.01 to 742.61 of the Revised Code. Subject to section 742.444	910
of the Revised Code, a person participating in the deferred	911
retirement option plan vests in the right to obtain and receive	912
the amount accrued to the benefit of the person when the person	913
ceases participating in the plan.	914

Such right may be enforced by an action in mandamus	915
instituted in the court of common pleas in the county in which the	916
person granted such benefit or pension resides.	917

Sec. 742.63.  The board of trustees of the Ohio police and	918
fire pension fund shall adopt rules for the management of the Ohio	919
public safety officers death benefit fund and for disbursements of	920
benefits as set forth in this section.	921

(A) As used in this section:

922

(1) "Member" means all of the following:

923

(a) A member of the Ohio police and fire pension fund,	924
including a member of the fund who has elected to participate in	925
the deferred retirement option plan established under section	926
742.43 of the Revised Code or a member of or contributor to a	927
police or firemen's relief and pension fund established under	928
former Chapter 521. or 741. of the Revised Code;	929

(b) A member of the state highway patrol retirement system;

930

(c) A member of the public employees retirement system who at	931
the time of the member's death was one of the following:	932

(i) A county sheriff or deputy sheriff;

933

(ii) A full-time regular police officer in a municipal	934
corporation or township;	935

(iii) A full-time regular firefighter employed by the state,	936
an instrumentality of the state, a municipal corporation, a	937
township, a joint fire district, or another political subdivision;	938

(iv) A full-time park district ranger or patrol trooper;

939

(v) A full-time law enforcement officer of the department of	940
natural resources;	941

(vi) A full-time department of public safety enforcement	942
agent;	943

(vii) A full-time law enforcement officer of parks, waterway	944
lands, or reservoir lands under the control of a municipal	945
corporation;	946

(viii) A full-time law enforcement officer of a conservancy	947
district;	948

(ix) A correction officer at an institution under the control	949
of a county, a group of counties, a municipal corporation, or the	950
department of rehabilitation and correction;	951

(x) A state university law enforcement officer.

952

(d) A member of a retirement system operated by a municipal	953
corporation who at the time of death was a full-time law	954
enforcement officer of parks, waterway lands, or reservoir lands	955
under the control of the municipal corporation.	956

(2) Notwithstanding section 742.01 of the Revised Code,	957
"fire or police department" includes a fire department of the	958
state or an instrumentality of the state or of a municipal	959
corporation, township, joint fire district, or other political	960
subdivision, the state highway patrol, a county sheriff's office,	961
the security force of an institution under the control of the	962
department of rehabilitation and correction, the security force of	963
a jail or workhouse under the control of a county, group of	964
counties, or municipal corporation, the security force of a	965
metropolitan, county, or township park district, the security	966
force of lands under the control of the department of natural	967
resources, department of public safety enforcement agents, the	968
security force of parks, waterway lands, or reservoir lands under	969
the control of a municipal corporation, the security force of a	970
conservancy district, the police department of a township or	971
municipal corporation, and the police force of a state university.	972

(3) "Firefighter or police officer" includes a state highway	973
patrol trooper, a county sheriff or deputy sheriff, a correction	974
officer at an institution under the control of a county, a group	975
of counties, a municipal corporation, or the department of	976
rehabilitation and correction, a police officer employed by a	977
township or municipal corporation, a firefighter employed by the	978
state, an instrumentality of the state, a municipal corporation, a	979
township, a joint fire district, or another political subdivision,	980
a full-time park district ranger or patrol trooper, a full-time	981
law enforcement officer of the department of natural resources, a	982
full-time department of public safety enforcement agent, a	983
full-time law enforcement officer of parks, waterway lands, or	984
reservoir lands under the control of a municipal corporation, a	985
full-time law enforcement officer of a conservancy district, and a	986
state university law enforcement officer.	987

(4) "Correction officer" includes, in addition to any	988
correction officer, any correction corporal, sergeant, lieutenant,	989
or captain, and the equivalents of all such persons.	990

(5) "A park district ranger or patrol trooper" means a peace	991
officer commissioned to make arrests, execute warrants, and	992
preserve the peace upon lands under the control of a board of park	993
commissioners of a metropolitan, county, or township park	994
district.	995

(6) "Metropolitan, county, or township park district" means a	996
park district created under the authority of Chapter 511. or 1545.	997
of the Revised Code.	998

(7) "Conservancy district" means a conservancy district	999
created under the authority of Chapter 6101. of the Revised Code.	1000

(8) "Law enforcement officer" means an officer commissioned	1001
to make arrests, execute warrants, and preserve the peace upon	1002
lands under the control of the governmental entity granting the	1003
commission.	1004

(9) "Department of natural resources law enforcement officer"	1005
includes a forest officer designated pursuant to section 1503.29	1006
of the Revised Code, a preserve officer designated pursuant to	1007
section 1517.10 of the Revised Code, a wildlife officer designated	1008
pursuant to section 1531.13 of the Revised Code, a park officer	1009
designated pursuant to section 1541.10 of the Revised Code, and a	1010
state watercraft officer designated pursuant to section 1547.521	1011
of the Revised Code.	1012

(10) "Retirement eligibility date" means the last day of the	1013
month in which a deceased member would have first become eligible,	1014
had the member lived, for the retirement pension provided under	1015
section 145.33, Chapter 521. or 741., division (C)(1) of section	1016
742.37, or division (A)(1) of section 5505.17 of the Revised Code	1017
or provided by a retirement system operated by a municipal	1018
corporation.	1019

(11) "Death benefit amount" means an amount equal to the full	1020
monthly salary received by a deceased member prior to death, minus	1021
an amount equal to the benefit received under section 145.45,	1022
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	1023
received from a retirement system operated by a municipal	1024
corporation, plus any increases in salary that would have been	1025
granted the deceased member.	1026

(12) "Killed in the line of duty" means either of the	1027
following:	1028

(a) Death in the line of duty;

1029

(b) Death from injury sustained in the line of duty,	1030
including heart attack or other fatal injury or illness caused	1031
while in the line of duty.	1032

(B) A spouse of a deceased member shall receive a death	1033
benefit each month equal to the full death benefit amount,	1034
provided that the deceased member was a firefighter or police	1035
officer killed in the line of duty and there are no surviving	1036
children eligible for a benefit under this section. The spouse	1037
shall receive this benefit during the spouse's natural life until	1038
the deceased member's retirement eligibility date, on which date	1039
the benefit provided under this division shall terminate.	1040

(C)(1) If a member killed in the line of duty as a	1041
firefighter or police officer is survived only by a child or	1042
children, the child or children shall receive a benefit each month	1043
equal to the full death benefit amount. If there is more than one	1044
surviving child, the benefit shall be divided equally among these	1045
children.	1046

(2) If the death benefit paid under this division is divided	1047
among two or more surviving children and any of the children	1048
become ineligible to continue receiving a portion of the benefit	1049
as provided in division (H) of this section, the full death	1050
benefit amount shall be paid to the remaining eligible child or	1051
divided among the eligible children so that the benefit paid to	1052
the remaining eligible child or children equals the full death	1053
benefit amount.	1054

(3) Notwithstanding divisions (C)(1) and (2) of this	1055
section, all death benefits paid under this division shall	1056
terminate on the deceased member's retirement eligibility date.	1057

(D) If a member killed in the line of duty as a firefighter	1058
or police officer is survived by both a spouse and a child or	1059
children, the monthly benefit provided shall be as follows:	1060

(1)(a) If there is a surviving spouse and one surviving	1061
child, the spouse shall receive an amount each month equal to	1062
one-half of the full death benefit amount and the child shall	1063
receive an amount equal to one-half of the full death benefit	1064
amount.	1065

(b) If the surviving spouse dies or the child becomes	1066
ineligible as provided in division (H) of this section, the	1067
surviving spouse or child remaining eligible shall receive the	1068
full death benefit amount.	1069

(2)(a) If there is a surviving spouse and more than one	1070
child, the spouse shall receive an amount each month equal to	1071
one-third of the full death benefit amount and the children shall	1072
receive an amount, equally divided among them, equal to two-thirds	1073
of the full death benefit amount.	1074

(b) If a spouse and more than one child each are receiving a	1075
death benefit under division (D)(2)(a) of this section and the	1076
spouse dies, the children shall receive an amount each month,	1077
equally divided among them, equal to the full death benefit	1078
amount.	1079

(c) If a spouse and more than one child each are receiving a	1080
benefit under division (D)(2)(a) of this section and any of the	1081
children becomes ineligible to receive a benefit as provided in	1082
division (H) of this section, the spouse and remaining eligible	1083
child or children shall receive a death benefit as follows:	1084

(i) If there are two or more remaining eligible children,	1085
the spouse shall receive an amount each month equal to one-third	1086
of the full death benefit amount and the children shall receive an	1087
amount each month, equally divided among them, equal to two-thirds	1088
of the full death benefit amount;	1089

(ii) If there is one remaining eligible child, the spouse	1090
shall receive an amount each month equal to one-half of the full	1091
death benefit amount, and the child shall receive an amount each	1092
month equal to one-half of the full death benefit amount.	1093

(d) If a spouse and more than one child each are receiving a	1094
benefit under division (D)(2)(a) of this section and all of the	1095
children become ineligible to receive a benefit as provided in	1096
division (H) of this section, the spouse shall receive the full	1097
death benefit amount.	1098

(3) Notwithstanding divisions (D)(1) and (2) of this	1099
section, death benefits paid under this division to a surviving	1100
spouse shall terminate on the member's retirement eligibility	1101
date. Death benefits paid to a surviving child or children shall	1102
terminate on the deceased member's retirement eligibility date	1103
unless earlier terminated pursuant to division (H) of this	1104
section.	1105

(E) If a member, on or after January 1, 1980, is killed in	1106
the line of duty as a firefighter or police officer and is	1107
survived by only a parent or parents dependent upon the member for	1108
support, the parent or parents shall receive an amount each month	1109
equal to the full death benefit amount. If there is more than one	1110
surviving parent dependent upon the deceased member for support,	1111
the death benefit amount shall be divided equally among the	1112
surviving parents. On the death of one of the surviving parents,	1113
the full death benefit amount shall be paid to the other parent.	1114

(F)(1) The following shall receive a monthly death benefit	1115
under this division:	1116

(a) A surviving spouse whose benefits are terminated in	1117
accordance with division (B) or (D)(3) of this section on the	1118
deceased member's retirement eligibility date, or who would	1119
qualify for a benefit under division (B) or (D) of this section	1120
except that the deceased member reached the member's retirement	1121
eligibility date prior to the member's death;	1122

(b) A qualified surviving spouse of a deceased member of or	1123
contributor to a police or firemen's relief and pension fund	1124
established under former Chapter 521. or 741. of the Revised Code	1125
who was a firefighter or police officer killed in the line of	1126
duty.	1127

(2) The monthly death benefit shall be one-half of an amount	1128
equal to the monthly salary received by the deceased member prior	1129
to the member's death, plus any salary increases the deceased	1130
member would have received prior to the member's retirement	1131
eligibility date. The benefit shall terminate on the surviving	1132
spouse's death. A death benefit payable under this division shall	1133
be reduced by an amount equal to any allowance or benefit payable	1134
to the surviving spouse under section 742.3714 of the Revised	1135
Code.	1136

(3) A benefit granted to a surviving spouse under division	1137
(F)(1)(b) of this section shall commence on the first day of the	1138
month immediately following receipt by the board of a completed	1139
application on a form provided by the board and any evidence the	1140
board may require to establish that the deceased spouse was killed	1141
in the line of duty.	1142

(G)(1) If there is not a surviving spouse eligible to	1143
receive a death benefit under division (F) of this section or the	1144
surviving spouse receiving a death benefit under that division	1145
dies, a surviving child or children whose benefits under division	1146
(C) or (D) of this section are or have been terminated pursuant to	1147
division (C)(3) or (D)(3) of this section or who would qualify for	1148
a benefit under division (C) or (D) of this section except that	1149
the deceased member reached the member's retirement eligibility	1150
date prior to the member's death shall receive a monthly death	1151
benefit under this division. The monthly death benefit shall be	1152
one-half of an amount equal to the monthly salary received by the	1153
deceased member prior to the member's death, plus any salary	1154
increases the member would have received prior to the member's	1155
retirement eligibility date. If there is more than one surviving	1156
child, the benefit shall be divided equally among the surviving	1157
children.	1158

(2) If two or more surviving children each are receiving a	1159
benefit under this division and any of those children becomes	1160
ineligible to continue receiving a benefit as provided in division	1161
(H) of this section, the remaining eligible child or children	1162
shall receive an amount equal to one-half of the monthly salary	1163
received by the deceased member prior to death, plus any salary	1164
increases the deceased member would have received prior to the	1165
retirement eligibility date. If there is more than one remaining	1166
eligible child, the benefit shall be divided equally among the	1167
eligible children.	1168

(3) A death benefit, or portion of a death benefit, payable	1169
to a surviving child under this division shall be reduced by an	1170
amount equal to any allowance or benefit payable to that child	1171
under section 742.3714 of the Revised Code, but the reduction in	1172
that child's benefit shall not affect the amount payable to any	1173
other surviving child entitled to a portion of the death benefit.	1174

(H) A death benefit paid to a surviving child under division	1175
(C), (D), or (G) of this section shall terminate on the death of	1176
the child or, unless one of the following is the case, when the	1177
child reaches age eighteen:	1178

(1) The child, because of physical or mental disability, is	1179
unable to provide the child's own support, in which case the death	1180
benefit shall terminate when the disability is removed;	1181

(2) The child is unmarried, under age twenty-two, and a	1182
student in and attending an institution of learning or training	1183
pursuant to a program designed to complete in each school year the	1184
equivalent of at least two-thirds of the full-time curriculum	1185
requirements of the institution, as determined by the trustees of	1186
the fund.	1187

(I) Acceptance of any death benefit under this section does	1188
not prohibit a spouse or child from receiving other benefits	1189
provided under the Ohio police and fire pension fund, the state	1190
highway patrol retirement system, the public employees retirement	1191
system, or a retirement system operated by a municipal	1192
corporation.	1193

(J) No person shall receive a benefit under this section if	1194
any of the following occur:	1195

(1) The person fails to exercise the right to a monthly	1196
survivor benefit under division (A) or (B) of section 145.45,	1197
division (D), (E), or (F) of section 742.37, or division (A)(3),	1198
(4), or (7) of section 5505.17 of the Revised Code; to a monthly	1199
survivor benefit from a retirement system operated by a municipal	1200
corporation; or to a retirement allowance under section 742.3714	1201
of the Revised Code.	1202

(2) The member's accumulated contributions under this	1203
chapter or Chapter 145. or 5505. of the Revised Code are refunded	1204
unless the member had been a member of the public employees	1205
retirement system and had fewer than eighteen months of total	1206
service credit at the time of death.	1207

(3) In the case of a full-time park district ranger or	1208
patrol trooper, a full-time law enforcement officer of the	1209
department of natural resources, a full-time law enforcement	1210
officer of parks, waterway lands, or reservoir lands under the	1211
control of a municipal corporation, a full-time law enforcement	1212
officer of a conservancy district, a correction officer at an	1213
institution under the control of a county, group of counties, or	1214
municipal corporation, or a member of a retirement system operated	1215
by a municipal corporation who at the time of the member's death	1216
was a full-time law enforcement officer of parks, waterway lands,	1217
or reservoir lands under the control of the municipal corporation,	1218
the member died prior to April 9, 1981, in the case of a benefit	1219
under division (B), (C), or (D) of this section, or prior to	1220
January 1, 1980, in the case of a benefit under division (E) of	1221
this section.	1222

(4) In the case of a full-time department of public safety	1223
enforcement agent who prior to June 30, 1999, was a liquor control	1224
investigator of the department of public safety, the member died	1225
prior to December 23, 1986;	1226

(5) In the case of a full-time department of public safety	1227
enforcement agent other than an enforcement agent who, prior to	1228
June 30, 1999, was a liquor control investigator, the member died	1229
prior to June 30, 1999.	1230

(K) A surviving spouse whose benefit was terminated prior to	1231
June 30, 1999, due to remarriage shall receive a benefit under	1232
division (B), (D), or (F) of this section beginning on the first	1233
day of the month following receipt by the board of an application	1234
on a form provided by the board. The benefit amount shall be	1235
determined as of that date.	1236

(1) If the benefit will begin prior to the deceased member's	1237
retirement eligibility date, it shall be paid under division (B)	1238
or (D) of this section and shall terminate as provided in those	1239
divisions. A benefit paid to a surviving spouse under division	1240
(D) of this section shall be determined in accordance with that	1241
division, even if benefits paid to surviving children are reduced	1242
as a result.	1243

(2) If the benefit will begin on or after the deceased	1244
member's retirement eligibility date, it shall be paid under	1245
division (F) of this section and shall terminate as provided in	1246
that division. A benefit paid to a surviving spouse under	1247
division (F) of this section shall be determined in accordance	1248
with that division, even if benefits paid to surviving children	1249
are terminated as a result.	1250

Section 2. That existing sections 742.03, 742.14, 742.351,	1251
742.37, 742.3716, 742.43, 742.44, 742.46, and 742.63 of the	1252
Revised Code are hereby repealed.	1253