REPRESENTATIVES Ogg, Flowers, Barrett, Brown, Schaffer, Lendrum, Schuring, Reidelbach, Patton, Distel, Core, Flannery, D. Miller, Cirelli, G. Smith, Hughes, Collier, Seitz, Clancy, Salerno, Fedor, Hagan, Wolpert, Carmichael, Niehaus, Kearns, Fessler, Evans, Cates, Webster, Britton, R. Miller, Beatty, Calvert, Strahorn, Hartnett, Key, DeBose, Woodard, Driehaus, Redfern, Olman, Metzger, Rhine, Carey, Womer Benjamin, Manning, S. Smith

To amend sections 145.01, 145.04, 145.05, 145.091,

1

145.19, 145.191, 145.192, 145.20, 145.22, 145.23,

2

145.27, 145.35, 145.38, 145.384, 145.40, 145.45,

3

145.46, 145.56, 145.58, 145.80, 145.81, 145.811,

4

145.812, 145.813, 145.82, 145.85, 145.86, 145.87,

5

145.88, 145.91, 145.92, 145.95, 145.97, 742.14,

6

742.37, 742.372, 742.45, 3105.80, 3307.01, 3307.39,

7

3307.51, 3307.56, 3307.561, 3307.563, 3307.58,

8

3307.60, 3307.761, 3307.763, 3307.764, 3307.87,

9

3309.21, 3309.43, 3309.45, 3309.46, 3309.69,

10

5505.12, and 5505.28; to amend, for the purpose of

11

adopting a new section number as indicated in

12

parentheses, section 742.372 (742.371); to enact

13

sections 145.193, 145.385, 145.402, 145.814, and

14

145.83; and to repeal sections 742.371 and 742.373

15

of the Revised Code to create in the State Teachers

16

Retirement System (STRS), School Employees

17

Retirement System, and Public Employees Retirement

18

System (PERS) the option of receiving retirement

19

benefits as a partial lump sum followed by a

20

reduced monthly allowance, to make other changes to

21

the law governing STRS to make changes to the Ohio

22

Police and Fire Pension Fund (OP&F) cost of living

23

increase, to eliminate a health maintenance

24

organization requirement for public pension system

25

retirees, to permit certain PERS reemployed

26

retirants to elect resumption of a retirement

27

allowance, to make permissive the redeposit of

28

contributions previously withdrawn from OP&F by

29

firefighters and police officers returning to the

30

same employer after a period of absence, and to

31

alter provisions governing the PERS defined

32

contribution retirement plan.

33

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

Section 1. That sections 145.01, 145.04, 145.05, 145.091,	34
145.19, 145.191, 145.192, 145.20, 145.22, 145.23, 145.27, 145.35,	35
145.38, 145.384, 145.40, 145.45, 145.46, 145.56, 145.58, 145.80,	36
145.81, 145.811, 145.812, 145.813, 145.82, 145.85, 145.86, 145.87,	37
145.88, 145.91, 145.92, 145.95, 145.97, 742.14, 742.37, 742.372,	38
742.45, 3105.80, 3307.01, 3307.39, 3307.51, 3307.56, 3307.561,	39
3307.563, 3307.58, 3307.60, 3307.761, 3307.763, 3307.764, 3307.87,	40
3309.21, 3309.43, 3309.45, 3309.46, 3309.69, 5505.12, and 5505.28	41
be amended, and section 742.372 (742.371) be amended for the	42
purpose of adopting a new section number, and sections 145.193,	43
145.385, 145.402, 145.814, and 145.83 of the Revised Code be	44
enacted to read as follows:	45

Sec. 145.01.  As used in this chapter:

46

(A) "Public employee" means:

47

(1) Any person holding an office, not elective, under the	48
state or any county, township, municipal corporation, park	49
district, conservancy district, sanitary district, health	50
district, metropolitan housing authority, state retirement board,	51
Ohio historical society, public library, county law library, union	52
cemetery, joint hospital, institutional commissary, state	53
university, or board, bureau, commission, council, committee,	54
authority, or administrative body as the same are, or have been,	55
created by action of the general assembly or by the legislative	56
authority of any of the units of local government named in	57
division (A)(1) of this section, or employed and paid in whole or	58
in part by the state or any of the authorities named in division	59
(A)(1) of this section in any capacity not covered by section	60
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	61

(2) A person who is a member of the public employees	62
retirement system and who continues to perform the same or similar	63
duties under the direction of a contractor who has contracted to	64
take over what before the date of the contract was a publicly	65
operated function. The governmental unit with which the contract	66
has been made shall be deemed the employer for the purposes of	67
administering this chapter.	68

(3) Any person who is an employee of a public employer,	69
notwithstanding that the person's compensation for that employment	70
is derived from funds of a person or entity other than the	71
employer. Credit for such service shall be included as total	72
service credit, provided that the employee makes the payments	73
required by this chapter, and the employer makes the payments	74
required by sections 145.48 and 145.51 of the Revised Code.	75

(4) A person who elects in accordance with section 145.015	76
of the Revised Code to remain a contributing member of the public	77
employees retirement system.	78

In all cases of doubt, the public employees retirement board	79
shall determine whether any person is a public employee, and its	80
decision is final.	81

(B) "Member" means any public employee, other than a public	82
employee excluded or exempted from membership in the retirement	83
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	84
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	85
retirant who becomes a member under division (C) of section 145.38	86
of the Revised Code. "Member" also includes a disability benefit	87
recipient.	88

(C) "Head of the department" means the elective or	89
appointive head of the several executive, judicial, and	90
administrative departments, institutions, boards, and commissions	91
of the state and local government as the same are created and	92
defined by the laws of this state or, in case of a charter	93
government, by that charter.	94

(D) "Employer" or "public employer" means the state or any	95
county, township, municipal corporation, park district,	96
conservancy district, sanitary district, health district,	97
metropolitan housing authority, state retirement board, Ohio	98
historical society, public library, county law library, union	99
cemetery, joint hospital, institutional commissary, state medical	100
college, state university, or board, bureau, commission, council,	101
committee, authority, or administrative body as the same are, or	102
have been, created by action of the general assembly or by the	103
legislative authority of any of the units of local government	104
named in this division not covered by section 742.01, 3307.01,	105
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	106
means the employer of any public employee.	107

(E) "Prior service" means all service as a public employee	108
rendered before January 1, 1935, and all service as an employee of	109
any employer who comes within the state teachers retirement system	110
or of the school employees retirement system or of any other	111
retirement system established under the laws of this state	112
rendered prior to January 1, 1935, provided that if the employee	113
claiming the service was employed in any capacity covered by that	114
other system after that other system was established, credit for	115
the service may be allowed by the public employees retirement	116
system only when the employee has made payment, to be computed on	117
the salary earned from the date of appointment to the date	118
membership was established in the public employees retirement	119
system, at the rate in effect at the time of payment, and the	120
employer has made payment of the corresponding full liability as	121
provided by section 145.44 of the Revised Code. "Prior service"	122
also means all service credited for active duty with the armed	123
forces of the United States as provided in section 145.30 of the	124
Revised Code.	125

If an employee who has been granted prior service credit by	126
the public employees retirement system for service rendered prior	127
to January 1, 1935, as an employee of a board of education	128
establishes, before retirement, one year or more of contributing	129
service in the state teachers retirement system or school	130
employees retirement system, then the prior service ceases to be	131
the liability of this system.	132

If the board determines that a position of any member in any	133
calendar year prior to January 1, 1935, was a part-time position,	134
the board shall determine what fractional part of a year's credit	135
shall be allowed by the following formula:	136

(1) When the member has been either elected or appointed to	137
an office the term of which was two or more years and for which an	138
annual salary is established, the fractional part of the year's	139
credit shall be computed as follows:	140

First, when the member's annual salary is one thousand	141
dollars or less, the service credit for each such calendar year	142
shall be forty per cent of a year.	143

Second, for each full one hundred dollars of annual salary	144
above one thousand dollars, the member's service credit for each	145
such calendar year shall be increased by two and one-half per	146
cent.	147

(2) When the member is paid on a per diem basis, the service	148
credit for any single year of the service shall be determined by	149
using the number of days of service for which the compensation was	150
received in any such year as a numerator and using two hundred	151
fifty days as a denominator.	152

(3) When the member is paid on an hourly basis, the service	153
credit for any single year of the service shall be determined by	154
using the number of hours of service for which the compensation	155
was received in any such year as a numerator and using two	156
thousand hours as a denominator.	157

(F) "Contributor" means any person who has an account in the	158
employees' savings fund created by section 145.23 of the Revised	159
Code. When used in the sections listed in division (B) of section	160
145.82 of the Revised Code, "contributor" includes any person	161
participating in a PERS defined contribution plan established	162
under section 145.81 of the Revised Code.	163

(G) "Beneficiary" or "beneficiaries" means the estate or a	164
person or persons who, as the result of the death of a member,	165
contributor, or retirant, qualify for or are receiving some right	166
or benefit under this chapter.	167

(H)(1) "Total service credit," except as provided in section	168
145.37 of the Revised Code, means all service credited to a member	169
of the retirement system since last becoming a member, including	170
restored service credit as provided by section 145.31 of the	171
Revised Code; credit purchased under sections 145.293 and 145.299	172
of the Revised Code; all the member's prior service credit; all	173
the member's military service credit computed as provided in this	174
chapter; all service credit established pursuant to section	175
145.297 of the Revised Code; and any other service credited under	176
this chapter. In addition, "total service credit" includes any	177
period, not in excess of three years, during which a member was	178
out of service and receiving benefits under Chapters 4121. and	179
4123. of the Revised Code. For the exclusive purpose of	180
satisfying the service credit requirement and of determining	181
eligibility for benefits under sections 145.32, 145.33, 145.331,	182
145.35, 145.36, and 145.361 of the Revised Code, "five or more	183
years of total service credit" means sixty or more calendar months	184
of contributing service in this system.	185

(2) "One and one-half years of contributing service credit,"	186
as used in division (B) of section 145.45 of the Revised Code,	187
also means eighteen or more calendar months of employment by a	188
municipal corporation that formerly operated its own retirement	189
plan for its employees or a part of its employees, provided that	190
all employees of that municipal retirement plan who have eighteen	191
or more months of such employment, upon establishing membership in	192
the public employees retirement system, shall make a payment of	193
the contributions they would have paid had they been members of	194
this system for the eighteen months of employment preceding the	195
date membership was established. When that payment has been made	196
by all such employee members, a corresponding payment shall be	197
paid into the employers' accumulation fund by that municipal	198
corporation as the employer of the employees.	199

(3) Where a member also is a member of the state teachers	200
retirement system or the school employees retirement system, or	201
both, except in cases of retirement on a combined basis pursuant	202
to section 145.37 of the Revised Code or as provided in section	203
145.383 of the Revised Code, service credit for any period shall	204
be credited on the basis of the ratio that contributions to the	205
public employees retirement system bear to total contributions in	206
all state retirement systems.	207

(4) Not more than one year of credit may be given for any	208
period of twelve months.	209

(5) "Ohio service credit" means credit for service that was	210
rendered to the state or any of its political subdivisions or any	211
employer.	212

(I) "Regular interest" means interest at any rates for the	213
respective funds and accounts as the public employees retirement	214
board may determine from time to time.	215

(J) "Accumulated contributions" means the sum of all amounts	216
credited to a contributor's individual account in the employees'	217
savings fund together with any interest credited to the	218
contributor's account under section 145.471 or 145.472 of the	219
Revised Code.	220

(K)(1) "Final average salary" means the quotient obtained by	221
dividing by three the sum of the three full calendar years of	222
contributing service in which the member's earnable salary was	223
highest, except that if the member has a partial year of	224
contributing service in the year the member's employment	225
terminates and the member's earnable salary for the partial year	226
is higher than for any comparable period in the three years, the	227
member's earnable salary for the partial year shall be substituted	228
for the member's earnable salary for the comparable period during	229
the three years in which the member's earnable salary was lowest.	230

(2) If a member has less than three years of contributing	231
service, the member's final average salary shall be the member's	232
total earnable salary divided by the total number of years,	233
including any fraction of a year, of the member's contributing	234
service.	235

(3) For the purpose of calculating benefits payable to a	236
member qualifying for service credit under division (Z) of this	237
section, "final average salary" means the total earnable salary on	238
which contributions were made divided by the total number of years	239
during which contributions were made, including any fraction of a	240
year. If contributions were made for less than twelve months,	241
"final average salary" means the member's total earnable salary.	242

(L) "Annuity" means payments for life derived from	243
contributions made by a contributor and paid from the annuity and	244
pension reserve fund as provided in this chapter. All annuities	245
shall be paid in twelve equal monthly installments.	246

(M) "Annuity reserve" means the present value, computed upon	247
the basis of the mortality and other tables adopted by the board,	248
of all payments to be made on account of any annuity, or benefit	249
in lieu of any annuity, granted to a retirant as provided in this	250
chapter.	251

(N)(1) "Disability retirement" means retirement as provided	252
in section 145.36 of the Revised Code.	253

(2) "Disability allowance" means an allowance paid on	254
account of disability under section 145.361 of the Revised Code.	255

(3) "Disability benefit" means a benefit paid as disability	256
retirement under section 145.36 of the Revised Code, as a	257
disability allowance under section 145.361 of the Revised Code, or	258
as a disability benefit under section 145.37 of the Revised Code.	259

(4) "Disability benefit recipient" means a member who is	260
receiving a disability benefit.	261

(O) "Age and service retirement" means retirement as	262
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and	263
145.46 of the Revised Code.	264

(P) "Pensions" means annual payments for life derived from	265
contributions made by the employer that at the time of retirement	266
are credited into the annuity and pension reserve fund from the	267
employers' accumulation fund and paid from the annuity and pension	268
reserve fund as provided in this chapter. All pensions shall be	269
paid in twelve equal monthly installments.	270

(Q) "Retirement allowance" means the pension plus that	271
portion of the benefit derived from contributions made by the	272
member.	273

(R)(1) Except as otherwise provided in division (R) of this	274
section, "earnable salary" means all salary, wages, and other	275
earnings paid to a contributor by reason of employment in a	276
position covered by the retirement system. The salary, wages, and	277
other earnings shall be determined prior to determination of the	278
amount required to be contributed to the employees' savings fund	279
under section 145.47 of the Revised Code and without regard to	280
whether any of the salary, wages, or other earnings are treated as	281
deferred income for federal income tax purposes. "Earnable	282
salary" includes the following:	283

(a) Payments made by the employer in lieu of salary, wages,	284
or other earnings for sick leave, personal leave, or vacation used	285
by the contributor;	286

(b) Payments made by the employer for the conversion of sick	287
leave, personal leave, and vacation leave accrued, but not used if	288
the payment is made during the year in which the leave is accrued,	289
except that payments made pursuant to section 124.383 or 124.386	290
of the Revised Code are not earnable salary;	291

(c) Allowances paid by the employer for full maintenance,	292
consisting of housing, laundry, and meals, as certified to the	293
retirement board by the employer or the head of the department	294
that employs the contributor;	295

(d) Fees and commissions paid under section 507.09 of the	296
Revised Code;	297

(e) Payments that are made under a disability leave program	298
sponsored by the employer and for which the employer is required	299
by section 145.296 of the Revised Code to make periodic employer	300
and employee contributions;	301

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	302
this section.	303

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

304

(a) Fees and commissions, other than those paid under	305
section 507.09 of the Revised Code, paid as sole compensation for	306
personal services and fees and commissions for special services	307
over and above services for which the contributor receives a	308
salary;	309

(b) Amounts paid by the employer to provide life insurance,	310
sickness, accident, endowment, health, medical, hospital, dental,	311
or surgical coverage, or other insurance for the contributor or	312
the contributor's family, or amounts paid by the employer to the	313
contributor in lieu of providing the insurance;	314

(c) Incidental benefits, including lodging, food, laundry,	315
parking, or services furnished by the employer, or use of the	316
employer's property or equipment, or amounts paid by the employer	317
to the contributor in lieu of providing the incidental benefits;	318

(d) Reimbursement for job-related expenses authorized by the	319
employer, including moving and travel expenses and expenses	320
related to professional development;	321

(e) Payments for accrued but unused sick leave, personal	322
leave, or vacation that are made at any time other than in the	323
year in which the sick leave, personal leave, or vacation was	324
accrued;	325

(f) Payments made to or on behalf of a contributor that are	326
in excess of the annual compensation that may be taken into	327
account by the retirement system under division (a)(17) of section	328
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	329
U.S.C.A. 401(a)(17), as amended;	330

(g) Payments made under division (B), (C), or (E) of section	331
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	332
No. 3 of the 119th general assembly, Section 3 of Amended	333
Substitute Senate Bill No. 164 of the 124th general assembly, or	334
Amended Substitute House Bill No. 405 of the 124th general	335
assembly;	336

(h) Anything of value received by the contributor that is	337
based on or attributable to retirement or an agreement to retire,	338
except that payments made on or before January 1, 1989, that are	339
based on or attributable to an agreement to retire shall be	340
included in earnable salary if both of the following apply:	341

(i) The payments are made in accordance with contract	342
provisions that were in effect prior to January 1, 1986;	343

(ii) The employer pays the retirement system an amount	344
specified by the retirement board equal to the additional	345
liability resulting from the payments.	346

(3) The retirement board shall determine by rule whether any	347
compensation not enumerated in division (R) of this section is	348
earnable salary, and its decision shall be final.	349

(S) "Pension reserve" means the present value, computed upon	350
the basis of the mortality and other tables adopted by the board,	351
of all payments to be made on account of any retirement allowance	352
or benefit in lieu of any retirement allowance, granted to a	353
member or beneficiary under this chapter.	354

(T)(1) "Contributing service" means all service credited to	355
a member of the system since January 1, 1935, for which	356
contributions are made as required by sections 145.47, 145.48, and	357
145.483 of the Revised Code. In any year subsequent to 1934,	358
credit for any service shall be allowed by the following formula:	359

(a) For each month for which the member's earnable salary is	360
two hundred fifty dollars or more, allow one month's credit.	361

(b) For each month for which the member's earnable salary is	362
less than two hundred fifty dollars, allow a fraction of a month's	363
credit. The numerator of this fraction shall be the earnable	364
salary during the month, and the denominator shall be two hundred	365
fifty dollars, except that if the member's annual earnable salary	366
is less than six hundred dollars, the member's credit shall not be	367
reduced below twenty per cent of a year for a calendar year of	368
employment during which the member worked each month. Division	369
(T)(1)(b) of this section shall not reduce any credit earned	370
before January 1, 1985.	371

(2) Notwithstanding division (T)(1) of this section, an	372
elected official who prior to January 1, 1980, was granted a full	373
year of credit for each year of service as an elected official	374
shall be considered to have earned a full year of credit for each	375
year of service regardless of whether the service was full-time or	376
part-time. The public employees retirement board has no authority	377
to reduce the credit.	378

(U) "State retirement board" means the public employees	379
retirement board, the school employees retirement board, or the	380
state teachers retirement board.	381

(V) "Retirant" means any former member who retires and is	382
receiving a monthly allowance as provided in sections 145.32,	383
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	384

(W) "Employer contribution" means the amount paid by an	385
employer as determined under section 145.48 of the Revised Code.	386

(X) "Public service terminates" means the last day for which	387
a public employee is compensated for services performed for an	388
employer or the date of the employee's death, whichever occurs	389
first.	390

(Y) When a member has been elected or appointed to an	391
office, the term of which is two or more years, for which an	392
annual salary is established, and in the event that the salary of	393
the office is increased and the member is denied the additional	394
salary by reason of any constitutional provision prohibiting an	395
increase in salary during a term of office, the member may elect	396
to have the amount of the member's contributions calculated upon	397
the basis of the increased salary for the office. At the member's	398
request, the board shall compute the total additional amount the	399
member would have contributed, or the amount by which each of the	400
member's contributions would have increased, had the member	401
received the increased salary for the office the member holds. If	402
the member elects to have the amount by which the member's	403
contribution would have increased withheld from the member's	404
salary, the member shall notify the employer, and the employer	405
shall make the withholding and transmit it to the retirement	406
system. A member who has not elected to have that amount withheld	407
may elect at any time to make a payment to the retirement system	408
equal to the additional amount the member's contribution would	409
have increased, plus interest on that contribution, compounded	410
annually at a rate established by the board and computed from the	411
date on which the last contribution would have been withheld from	412
the member's salary to the date of payment. A member may make a	413
payment for part of the period for which the increased	414
contribution was not withheld, in which case the interest shall be	415
computed from the date the last contribution would have been	416
withheld for the period for which the payment is made. Upon the	417
payment of the increased contributions as provided in this	418
division, the increased annual salary as provided by law for the	419
office for the period for which the member paid increased	420
contributions thereon shall be used in determining the member's	421
earnable salary for the purpose of computing the member's final	422
average salary.	423

(Z) "Five years of service credit," for the exclusive	424
purpose of satisfying the service credit requirements and of	425
determining eligibility for benefits under section 145.33 of the	426
Revised Code, means employment covered under this chapter or under	427
a former retirement plan operated, recognized, or endorsed by the	428
employer prior to coverage under this chapter or under a	429
combination of the coverage.	430

(AA) "Deputy sheriff" means any person who is commissioned	431
and employed as a full-time peace officer by the sheriff of any	432
county, and has been so employed since on or before December 31,	433
1965, and whose primary duties are to preserve the peace, to	434
protect life and property, and to enforce the laws of this state;	435
any person who is or has been commissioned and employed as a peace	436
officer by the sheriff of any county since January 1, 1966, and	437
who has received a certificate attesting to the person's	438
satisfactory completion of the peace officer training school as	439
required by section 109.77 of the Revised Code and whose primary	440
duties are to preserve the peace, protect life and property, and	441
enforce the laws of this state; or any person deputized by the	442
sheriff of any county and employed pursuant to section 2301.12 of	443
the Revised Code as a criminal bailiff or court constable who has	444
received a certificate attesting to the person's satisfactory	445
completion of the peace officer training school as required by	446
section 109.77 of the Revised Code and whose primary duties are to	447
preserve the peace, protect life and property, and enforce the	448
laws of this state.	449

(BB) "Township constable or police officer in a township	450
police department or district" means any person who is	451
commissioned and employed as a full-time peace officer pursuant to	452
Chapter 505. or 509. of the Revised Code, who has received a	453
certificate attesting to the person's satisfactory completion of	454
the peace officer training school as required by section 109.77 of	455
the Revised Code, and whose primary duties are to preserve the	456
peace, protect life and property, and enforce the laws of this	457
state.	458

(CC) "Drug agent" means any person who is either of the	459
following:	460

(1) Employed full-time as a narcotics agent by a county	461
narcotics agency created pursuant to section 307.15 of the Revised	462
Code and has received a certificate attesting to the satisfactory	463
completion of the peace officer training school as required by	464
section 109.77 of the Revised Code;	465

(2) Employed full-time as an undercover drug agent as	466
defined in section 109.79 of the Revised Code and is in compliance	467
with section 109.77 of the Revised Code.	468

(DD) "Department of public safety enforcement agent" means a	469
full-time employee of the department of public safety who is	470
designated under section 5502.14 of the Revised Code as an	471
enforcement agent and who is in compliance with section 109.77 of	472
the Revised Code.	473

(EE) "Natural resources law enforcement staff officer" means	474
a full-time employee of the department of natural resources who is	475
designated a natural resources law enforcement staff officer under	476
section 1501.013 of the Revised Code and is in compliance with	477
section 109.77 of the Revised Code.	478

(FF) "Park officer" means a full-time employee of the	479
department of natural resources who is designated a park officer	480
under section 1541.10 of the Revised Code and is in compliance	481
with section 109.77 of the Revised Code.	482

(GG) "Forest officer" means a full-time employee of the	483
department of natural resources who is designated a forest officer	484
under section 1503.29 of the Revised Code and is in compliance	485
with section 109.77 of the Revised Code.	486

(HH) "Preserve officer" means a full-time employee of the	487
department of natural resources who is designated a preserve	488
officer under section 1517.10 of the Revised Code and is in	489
compliance with section 109.77 of the Revised Code.	490

(II) "Wildlife officer" means a full-time employee of the	491
department of natural resources who is designated a wildlife	492
officer under section 1531.13 of the Revised Code and is in	493
compliance with section 109.77 of the Revised Code.	494

(JJ) "State watercraft officer" means a full-time employee	495
of the department of natural resources who is designated a state	496
watercraft officer under section 1547.521 of the Revised Code and	497
is in compliance with section 109.77 of the Revised Code.	498

(KK) "Park district police officer" means a full-time	499
employee of a park district who is designated pursuant to section	500
511.232 or 1545.13 of the Revised Code and is in compliance with	501
section 109.77 of the Revised Code.	502

(LL) "Conservancy district officer" means a full-time	503
employee of a conservancy district who is designated pursuant to	504
section 6101.75 of the Revised Code and is in compliance with	505
section 109.77 of the Revised Code.	506

(MM) "Municipal police officer" means a member of the	507
organized police department of a municipal corporation who is	508
employed full-time, is in compliance with section 109.77 of the	509
Revised Code, and is not a member of the Ohio police and fire	510
pension fund.	511

(NN) "Ohio veterans' home police officer" means any person	512
who is employed at the Ohio veterans' home as a police officer	513
pursuant to section 5907.02 of the Revised Code and is in	514
compliance with section 109.77 of the Revised Code.	515

(OO) "Special police officer for a mental health	516
institution" means any person who is designated as such pursuant	517
to section 5119.14 of the Revised Code and is in compliance with	518
section 109.77 of the Revised Code.	519

(PP) "Special police officer for an institution for the	520
mentally retarded and developmentally disabled" means any person	521
who is designated as such pursuant to section 5123.13 of the	522
Revised Code and is in compliance with section 109.77 of the	523
Revised Code.	524

(QQ) "State university law enforcement officer" means any	525
person who is employed full-time as a state university law	526
enforcement officer pursuant to section 3345.04 of the Revised	527
Code and who is in compliance with section 109.77 of the Revised	528
Code.	529

(RR) "House sergeant at arms" means any person appointed by	530
the speaker of the house of representatives under division (B)(1)	531
of section 101.311 of the Revised Code who has arrest authority	532
under division (E)(1) of that section.	533

(SS) "Assistant house sergeant at arms" means any person	534
appointed by the house sergeant at arms under division (C)(1) of	535
section 101.311 of the Revised Code.	536

(TT) "Regional transit authority police officer" means a	537
person who is employed full time as a regional transit authority	538
police officer under division (Y) of section 306.35 of the Revised	539
Code and is in compliance with section 109.77 of the Revised Code.	540

(UU) "State highway patrol police officer" means a special	541
police officer employed full time and designated by the	542
superintendent of the state highway patrol pursuant to section	543
5503.09 of the Revised Code or a person serving full time as a	544
special police officer pursuant to that section on a permanent	545
basis on October 21, 1997, who is in compliance with section	546
109.77 of the Revised Code.	547

(VV) Notwithstanding section 2901.01 of the Revised Code,	548
"PERS law enforcement officer" means a sheriff, deputy sheriff,	549
township constable or police officer in a township police	550
department or district, drug agent, department of public safety	551
enforcement agent, natural resources law enforcement staff	552
officer, park officer, forest officer, preserve officer, wildlife	553
officer, state watercraft officer, park district police officer,	554
conservancy district officer, Ohio veterans' home police officer,	555
special police officer for a mental health institution, special	556
police officer for an institution for the mentally retarded and	557
developmentally disabled, state university law enforcement	558
officer, municipal police officer, house sergeant at arms,	559
assistant house sergeant at arms, regional transit authority	560
police officer, or state highway patrol police officer.	561

(WW) "Hamilton county municipal court bailiff" means a person	562
appointed by the clerk of courts of the Hamilton county municipal	563
court under division (A)(3) of section 1901.32 of the Revised Code	564
who is employed full time as a bailiff or deputy bailiff, who has	565
received a certificate attesting to the person's satisfactory	566
completion of the peace officer basic training described in	567
division (D)(1) of section 109.77 of the Revised Code, and whose	568
primary duties are to preserve the peace, to protect life and	569
property, and to enforce the laws of this state.	570

(XX) "Fiduciary" means a person who does any of the	571
following:	572

(1) Exercises any discretionary authority or control with	573
respect to the management of the system or with respect to the	574
management or disposition of its assets;	575

(2) Renders investment advice for a fee, direct or indirect,	576
with respect to money or property of the system;	577

(3) Has any discretionary authority or responsibility in the	578
administration of the system.	579

(YY) "Actuary" means an individual who satisfies all of the	580
following requirements:	581

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

582

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

583

(3) Has a minimum of five years' experience in providing	584
actuarial services to public retirement plans.	585

(ZZ) "PERS defined benefit plan" means the plan described in	586
sections 145.201 to 145.79 of the Revised Code.	587

(AAA) "PERS defined contribution plans" means the plan or	588
plans established under section 145.81 of the Revised Code.	589

Sec. 145.04.  The general administration and management of	590
the public employees retirement system and the making effective of	591
Chapter 145. of the Revised Code, are hereby vested in a board to	592
be known as the "public employees retirement board," which shall	593
consist of nine members as follows:	594

(A) The attorney general;

595

(B) The auditor of state;

596

(C) The director of administrative services;

597

(D) Five members, known as employee members, one of whom	598
shall be a state employee member of the system, who shall be	599
elected by ballot by the state employee members of the system from	600
among their number; another of whom shall be a county employee	601
member of the system, who shall be elected by ballot by the county	602
employee members of the system from among their number; another of	603
whom shall be a municipal employee member of the system, who shall	604
be elected by ballot by the municipal employee members of the	605
system from among their number; another of whom shall be a	606
university or college employee member of the system, who shall be	607
elected by ballot by the university and college employee members	608
of the system from among their number; and another of whom shall	609
be a park district, conservancy district, sanitary district,	610
health district, public library, township, metropolitan housing	611
authority, union cemetery, joint hospital, or institutional	612
commissary employee member of the system, who shall be elected by	613
ballot by the park district, conservancy district, sanitary	614
district, health district, metropolitan housing authority,	615
township, public library, union cemetery, joint hospital, and	616
institutional commissary employee members of the system from among	617
their number, in a manner to be approved by the board. Members of	618
the system who are receiving a disability benefit under this	619
chapter are ineligible for membership on the board as employee	620
members.	621

(E) One member, known as the retirant member, who shall be a	622
former member of the public employees retirement system who is a	623
resident of this state and a recipient of age and service	624
retirement, a disability benefit, or benefits paid under a PERS	625
defined contribution plan established under section 145.81 of the	626
Revised Code. The retirant member shall be elected by ballot by	627
former members of the system who are receiving age and service	628
retirement, a disability benefit, or benefits paid under a PERS	629
defined contribution plan established under section 145.81 of the	630
Revised Code.	631

Sec. 145.05.  (A) The terms of office of employee members of	632
the public employees retirement board shall be for four years each	633
beginning on the first day of January following election. The	634
election of the county employee member of the board and the	635
employee member of the board representing public library, health	636
district, park district, conservancy district, sanitary district,	637
township, metropolitan housing authority, union cemetery, joint	638
hospital, and institutional commissary employees shall be held on	639
the first Monday in October, 1945, and on the first Monday in	640
October in each fourth year thereafter. The election of the state	641
employee member of the board and the municipal employee member of	642
the board shall be held on the first Monday in October, 1946, and	643
on the first Monday in October in each fourth year thereafter. The	644
election of the initial university-college employee member of the	645
board shall be held on the first Monday in October, 1978, and	646
elections for subsequent university-college employee members of	647
the board shall be held on the first Monday in October in each	648
fourth year thereafter.	649

(B) The term of office of the retirant member of the public	650
employees retirement board shall be for four years beginning on	651
the first day of January following the election. The election of	652
the initial retirant member of the board shall be held on the	653
first Monday in October, 1978, and elections for subsequent	654
retirant members of the board shall be held on the first Monday in	655
October in each fourth year thereafter.	656

(C) All elections for employee members of the public	657
employees retirement board shall be held under the direction of	658
the board. Any member of the public employees retirement system,	659
except a member who is receiving a disability benefit under this	660
chapter, is eligible for election as an employee member of the	661
board to represent the employee group that includes the member,	662
provided that the member has been nominated by a petition signed	663
by at least five hundred members of the employee group to be	664
represented and further provided that there shall be not less than	665
twenty such signers from each of at least ten counties of the	666
state. The name of any member so nominated shall be placed upon	667
the ballot by the board as a regular candidate. Names of other	668
eligible candidates may, at any election, be substituted for the	669
regular candidates by writing such names upon the ballots. The	670
candidate who receives the highest number of votes for a	671
particular employee member position on the board shall be elected	672
to that office.	673

(D) All elections for the retirant member of the public	674
employees retirement board shall be held under the direction of	675
the board. Any former member of the public employees retirement	676
system who is described in division (E) of section 145.04 of the	677
Revised Code is eligible for election as the retirant member of	678
the board to represent recipients of age and service retirement, a	679
disability benefit, or benefits paid under a PERS defined	680
contribution plan established under section 145.81 of the Revised	681
Code, provided that such person has been nominated by a petition	682
signed by at least two hundred fifty former members of the system	683
who are recipients of age and service retirement, a disability	684
benefit, or benefits paid under a PERS defined contribution plan	685
established under section 145.81 of the Revised Code, or any	686
combination of such recipients that totals two hundred fifty. The	687
petition shall contain the signatures of at least ten such	688
recipients from each of at least five counties wherein recipients	689
of benefits from the system reside.	690

The name of any person nominated in this manner shall be	691
placed upon the ballot by the board as a regular candidate. Names	692
of other eligible candidates may, at any election for the retirant	693
member of the board, be substituted for the regular candidates by	694
writing the names of such persons upon the ballot. The candidate	695
who receives the highest number of votes for any term as the	696
retirant member of the board shall be elected to office.	697

Sec. 145.091.  The public employees retirement system shall	698
administer the PERS defined benefit plan described in sections	699
145.201 to 145.70 of the Revised Code and the plan orPERS defined	700
contribution plans established under section 145.81 of the Revised	701
Code.	702

Sec. 145.19.  (A) Except as provided in division (D) of this	703
section, an individual who becomes employed in a member of the	704
public employees retirement systemposition subject to this	705
chapter on or after the date on which the public employees	706
retirement board first establishes a PERS defined contribution	707
plan under section 145.81 of the Revised Code shall make an	708
election under this section. Not later than one hundred eighty	709
days after the date on which employment begins, the individual	710
shall elect to participate either in the PERS defined benefit plan	711
described in sections 145.201 to 145.79 of the Revised Code or one	712
of the plans established under section 145.81 of the Revised Code	713
a PERS defined contribution plan. If a form evidencing an	714
election under this section is not on file withreceived by the	715
employer at the end ofpublic employees retirement system not	716
later than the last day of the one-hundred-eighty-day period, the	717
individual is deemed to have elected to participate in the PERS	718
defined benefit plan described in sections 145.201 to 145.79 of	719
the Revised Code.	720

(B) An election under this section shall be made in writing	721
on a form provided by the retirement system and filed with the	722
employer's personnel officer. Not later than ten days after	723
receiving the form evidencing the election, the employer shall	724
transmit to the system a copy that includes a statement certifying	725
that it is a true and accurate copy of the originalsystem.	726

(C) An election under this section shall take effect on the	727
date employment began and, except as provided in section 145.814	728
of the Revised Code or rules governing the PERS defined benefit	729
plan, is irrevocable on receipt by the employersystem.	730

(D) An individual is ineligible to make an election under	731
this section if one of the following applies:	732

(1) At the time employment begins, the individual is already	733
a member or contributor participating in the plan described in	734
sections 145.201 to 145.79 of the Revised Code or a PERS retirant	735
or other system retirant, as those terms are defined in section	736
145.38 of the Revised Code, or is retired under section 145.383 of	737
the Revised Code.	738

(2) An election to participateThe individual is	739
participating or has elected to participate in an alternative	740
retirement plan under section 3305.05 of the Revised Code is in	741
effect for employment covered by the systemand the employment is	742
in a position that is subject to division (E) of that section.	743

(3) The individual is a contributor who, as of the last day	744
of the month prior to the date employment begins, has five or more	745
years of total service credit.	746

(4) The individual is employed in a position covered under	747
this chapter to which section 145.193 of the Revised Code applies.	748

(5) The individual is a PERS law enforcement officer or	749
Hamilton county municipal court bailiff.	750

Sec. 145.191.  (A) A member of theExcept as provided in	751
division (E) of this section, a public employees retirement	752
system, other than a member who is a PERS law enforcement officer,	753
member or contributor who, as of the last day of the month	754
immediately preceding the date on which the systempublic	755
employees retirement board first establishes a PERS defined	756
contribution plan under section 145.81 of the Revised Code, has	757
less than five years of total service credit is eligible to make	758
an election under this section. A member or contributor who is	759
employed in more than one position subject to this chapter is	760
eligible to make only one election. The election applies to all	761
positions subject to this chapter.	762

Not later than one hundred eighty days after the day the	763
board first establishes one or more plans under section 145.81 of	764
the Revised Codea PERS defined contribution plan, an eligible	765
member or contributor may elect to participate in a PERS defined	766
contribution plan established under that section. If a form	767
evidencing an election is not madereceived by the system not	768
later than the last day of the one-hundred-eighty-day period, a	769
member or contributor to whom this section applies is deemed to	770
have elected to continue participating in the PERS defined benefit	771
plan described in sections 145.201 to 145.79 of the Revised Code.	772

(B) An election under this section shall be made in writing	773
on a form provided by the system and filed with the system.	774

(C) On receipt of an election under this section, the system	775
shall do both of the following:	776

(1) Credit to the account of the member in the defined	777
contribution fund the accumulated contributions standing to the	778
member's credit in the employees' savings fund;plan elected both	779
of the following:	780

(a) Any employer contributions attributable to the member	781
for the period beginning on the day the board first established a	782
PERS defined contribution plan;	783

(b) All accumulated contributions attributable to the member	784
or contributor.	785

(2) Cancel all service credit and eligibility for any	786
payment, benefit, or right under the PERS defined benefit plan	787
described in sections 145.201 to 145.79 of the Revised Code.	788

(D) An election under this section shall beis effective as	789
of the date the board first established a PERS defined	790
contribution plan and, except as provided in section 145.814 of	791
the Revised Code or rules governing the PERS defined benefit plan,	792
is irrevocable on receipt by the system.	793

(E) An election may not be made under this section by a	794
member or contributor who is either of the following:	795

(1) A PERS retirant who is a member under division (C) of	796
section 145.38 of the Revised Code;	797

(2) A PERS law enforcement officer or a Hamilton county	798
municipal court bailiff.	799

Sec. 145.192. AExcept as provided in section 145.814 and in	800
division (C) of section 145.82 of the Revised Code, a member of	801
the public employees retirement system who elects to participate	802
in a PERS defined contribution plan established under section	803
145.81 of the Revised Code shall be ineligible for any benefit or	804
payment under sections 145.201 to 145.79 of the Revised Codethe	805
PERS defined benefit plan and shall be forever barred from	806
claiming or purchasing service credit with the system or any other	807
Ohio state retirement system, as defined in section 145.30 of the	808
Revised Code, for service covered by the election.	809

Sec. 145.193. Except as provided in division (E) of section	810
3305.05 of the Revised Code, an election made or deemed to have	811
been made under section 145.19 or 145.191 of the Revised Code	812
applies to all positions subject to this chapter for which the	813
member is contributing under section 145.47 or 145.85 of the	814
Revised Code. A member who terminates employment in all positions	815
subject to this chapter and later becomes employed in a position	816
subject to this chapter may make an election under section 145.19	817
of the Revised Code as provided by that section.	818

Sec. 145.20. (A) Any elective official of the state of Ohio	819
or of any political subdivision thereof having employees in the	820
public employees retirement system shall be considered as an	821
employee of the state or such political subdivision, and may	822
become a member of the system upon application to the public	823
employees retirement board, with all the rights, privileges, and	824
obligations of membership. ServiceAn elective official who	825
becomes a member of the system on or after the date the public	826
employees retirement board first establishes a PERS defined	827
contribution plan shall make an election pursuant to section	828
145.19 of the Revised Code not later than one hundred eighty days	829
after applying for membership in the system. The election is	830
effective as of the date the official applies for membership and	831
is irrevocable on receipt by the system. If a form evidencing an	832
election is not received by the system not later than the last day	833
of the one-hundred-eighty-day period, the official is deemed to	834
have elected to participate in the PERS defined benefit plan.	835

(B) Service as any such elective official by any member of	836
the system rendered prior to January 1, 1935, shall be included as	837
prior service, provided the member has completeddoes both of the	838
following:	839

(1) Completes three years of contributing service, or the	840
equivalent thereof, in the public employees retirement system	841
subsequent to the date that membership is established;	842

(2) Participates in the PERS defined benefit plan or a PERS	843
defined contribution plan with definitely determinable benefits.	844

(C) Credit for service between January 1, 1935, and the date	845
that membership is established, except service as an elective	846
official that was subject to the tax on wages imposed by the	847
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26	848
U.S.C.A. 3101, as amended, may be secured by the elective official	849
provided the elective official paysdoes all of the following:	850

(1) Pays into the employees' savings fund an amount	851
determined by applying the member contribution rate in effect at	852
the time of payment to the earnable salary of the member during	853
all periods of service after January 1, 1935, covered by this	854
chapter, for which contributions have not been paid, plus interest	855
on such amount compounded annually at a rate to be determined by	856
the board, and completes;	857

(2) Completes one and one-half years of contributing	858
membership in the public employees retirement system subsequent to	859
the date membership was established. The;	860

(3) Participates in the PERS defined benefit plan or a PERS	861
defined contribution plan with definitely determinable benefits.	862

A member may choose to purchase in any one payment only part	863
of suchthe credit in any one paymentthe member is eligible to	864
purchase. The public employees retirement board shall determine	865
the amount and manner of payment of such contributions. In the	866
event of death or withdrawal from service, the payment into the	867
employees' savings fund for such service credit shall be	868
considered as accumulated contributions of the member.	869

Sec. 145.22.  (A) The public employees retirement board	870
shall have prepared annually by or under the supervision of an	871
actuary an actuarial valuation of the pension assets, liabilities,	872
and funding requirements of the public employees retirement system	873
as established pursuant to this chapter. The actuary shall	874
complete the valuation in accordance with actuarial standards of	875
practice promulgated by the actuarial standards board of the	876
American academy of actuaries and prepare a report of the	877
valuation. The report shall include all of the following:	878

(1) A summary of the benefit provisions evaluated;

879

(2) A summary of the census data and financial information	880
used in the valuation;	881

(3) A description of the actuarial assumptions, actuarial	882
cost method, and asset valuation method used in the valuation,	883
including a statement of the assumed rate of payroll growth and	884
assumed rate of growth or decline in the number of members	885
contributing to the retirement system;	886

(4) A summary of findings that includes a statement of the	887
actuarial accrued pension liabilities and unfunded actuarial	888
accrued pension liabilities;	889

(5) A schedule showing the effect of any changes in the	890
benefit provisions, actuarial assumptions, or cost methods since	891
the last annual actuarial valuation;	892

(6) A statement of whether contributions to the retirement	893
system are expected to be sufficient to satisfy the funding	894
objectives established by the board.	895

The board shall submit the report to the Ohio retirement	896
study council and the standing committees of the house of	897
representatives and the senate with primary responsibility for	898
retirement legislation not later than the first day of September	899
following the year for which the valuation was made.	900

(B) At such time as the public employees retirement board	901
determines, and at least once in each five-year period, the board	902
shall have prepared by or under the supervision of an actuary an	903
actuarial investigation of the mortality, service, and other	904
experience of the members, retirants, contributors, and	905
beneficiaries of the system to update the actuarial assumptions	906
used in the actuarial valuation required by division (A) of this	907
section. The actuary shall prepare a report of the actuarial	908
investigation. The report shall be prepared and any recommended	909
changes in actuarial assumptions shall be made in accordance with	910
the actuarial standards of practice promulgated by the actuarial	911
standards board of the American academy of actuaries. The report	912
shall include all of the following:	913

(1) A summary of relevant decrement and economic assumption	914
experience observed over the period of the investigation;	915

(2) Recommended changes in actuarial assumptions to be used	916
in subsequent actuarial valuations required by division (A) of	917
this section;	918

(3) A measurement of the financial effect of the recommended	919
changes in actuarial assumptions.	920

The board shall submit the report to the Ohio retirement	921
study council and the standing committees of the house of	922
representatives and the senate with primary responsibility for	923
retirement legislation not later than the first day of November	924
following the last fiscal year of the period the report covers.	925

(C) The board may at any time request the actuary to make	926
any studies or actuarial valuations to determine the adequacy of	927
the contribution rate determined under section 145.48 of the	928
Revised Code, and those rates may be adjusted by the board, as	929
recommended by the actuary, effective as of the first of any year	930
thereafter.	931

(D) The board shall have prepared by or under the	932
supervision of an actuary an actuarial analysis of any introduced	933
legislation expected to have a measurable financial impact on the	934
retirement system. The actuarial analysis shall be completed in	935
accordance with the actuarial standards of practice promulgated by	936
the actuarial standards board of the American academy of	937
actuaries. The actuary shall prepare a report of the actuarial	938
analysis, which shall include all of the following:	939

(1) A summary of the statutory changes that are being	940
evaluated;	941

(2) A description of or reference to the actuarial	942
assumptions and actuarial cost method used in the report;	943

(3) A description of the participant group or groups	944
included in the report;	945

(4) A statement of the financial impact of the legislation,	946
including the resulting increase, if any, in the employer normal	947
cost percentage; the increase, if any, in actuarial accrued	948
liabilities; and the per cent of payroll that would be required to	949
amortize the increase in actuarial accrued liabilities as a level	950
per cent of covered payroll for all active members over a period	951
not to exceed thirty years;	952

(5) A statement of whether the scheduled contributions to	953
the system after the proposed change is enacted are expected to be	954
sufficient to satisfy the funding objectives established by the	955
board.	956

Not later than sixty days from the date of introduction of	957
the legislation, the board shall submit a copy of the actuarial	958
analysis to the legislative budget office of the legislative	959
service commission, the standing committees of the house of	960
representatives and the senate with primary responsibility for	961
retirement legislation, and the Ohio retirement study council.	962

(E) The board shall have prepared annually a report giving a	963
full accounting of the revenues and costs relating to the	964
provision of benefits under sections 145.325 and 145.58 of the	965
Revised Code. The report shall be made as of December 31, 1997,	966
and the thirty-first day of December of each year thereafter. The	967
report shall include the following:	968

(1) A description of the statutory authority for the	969
benefits provided;	970

(2) A summary of the benefits;

971

(3) A summary of the eligibility requirements for the	972
benefits;	973

(4) A statement of the number of participants eligible for	974
the benefits;	975

(5) A description of the accounting, asset valuation, and	976
funding method used to provide the benefits;	977

(6) A statement of the net assets available for the	978
provision of the benefits as of the last day of the fiscal year;	979

(7) A statement of any changes in the net assets available	980
for the provision of benefits, including participant and employer	981
contributions, net investment income, administrative expenses, and	982
benefits provided to participants, as of the last day of the	983
fiscal year;	984

(8) For the last six consecutive fiscal years, a schedule of	985
the net assets available for the benefits, the annual cost of	986
benefits, administrative expenses incurred, and annual employer	987
contributions allocated for the provision of benefits;	988

(9) A description of any significant changes that affect the	989
comparability of the report required under this division;	990

(10) A statement of the amount paid under division (D)(C) of	991
section 145.58 of the Revised Code.	992

The board shall submit the report to the Ohio retirement	993
study council and the standing committees of the house of	994
representatives and the senate with primary responsibility for	995
retirement legislation not later than the thirtieth day of June	996
following the year for which the report was made.	997

Sec. 145.23.  The funds hereby created are the employees'	998
savings fund, the employers' accumulation fund, the annuity and	999
pension reserve fund, the income fund, the survivors' benefit	1000
fund, the defined contribution fund, and the expense fund.	1001

(A) The employees' savings fund is the fund in which shall	1002
be accumulated contributions from the earnable salaries of	1003
contributors for the purchase of annuities or retirement	1004
allowances.	1005

The accumulated contributions of a contributor returned to	1006
the contributor upon withdrawal, or paid to the contributor's	1007
estate or designated beneficiary in the event of death, shall be	1008
paid from the employees' savings fund. Any accumulated	1009
contributions forfeited by failure of a member, or a member's	1010
estate, to claim the same, shall be transferred from the	1011
employees' savings fund to the income fund. The accumulated	1012
contributions of a contributor shall be transferred from the	1013
employees' savings fund to the annuity and pension reserve fund in	1014
the event of the contributor's retirement.	1015

(B) The employers' accumulation fund is the fund in which	1016
shall be accumulated the reserves for the payment of all pensions	1017
and disability benefits payable as provided in this chapter. The	1018
amounts paid by any employer under section 145.48 of the Revised	1019
Code shall be credited to the employers' accumulation fund.	1020

Any payments made into the employers' accumulation fund by a	1021
member as provided in section 145.31 of the Revised Code shall be	1022
refunded to such member under the conditions specified in section	1023
145.40 of the Revised Code.	1024

Upon the retirement of a contributor, the full amount of the	1025
contributor's pension reserve shall be transferred from the	1026
employers' accumulation fund to the annuity and pension reserve	1027
fund.	1028

(C) The annuity and pension reserve fund is the fund from	1029
which shall be paid all pensions, disability benefits, annuities,	1030
and benefits in lieu thereof, because of which reserves have been	1031
transferred from the employees' savings fund and the employers'	1032
accumulation fund.	1033

Any contributormember participating in the PERS defined	1034
benefit plan may deposit in the employees' savings fund, subject	1035
to rules established by the public employees retirement system,	1036
additional amounts, and, at the time of age and service	1037
retirement, shall receive in return therefor, at the contributor's	1038
participant's option, either an annuity having a reserve equal to	1039
the amount deposited or a cash refund of such amounts together	1040
with such interest as may have been allowed by the board. Such	1041
deposits for additional annuity together with such interest as may	1042
have been allowed by the board at the end of each calendar year	1043
shall be refunded in the event of death prior to retirement or	1044
withdrawal of accumulated contributions as provided in sections	1045
145.40 and 145.43 of the Revised Code or upon application of the	1046
contributor prior to age and service retirement.	1047

Any additional deposits that were made under this section by	1048
a member who elects under section 145.191 of the Revised Code to	1049
participate in a PERS defined contribution plan shall be credited	1050
to the defined contribution plan elected by the member under that	1051
section.	1052

For deposits received in a calendar year, interest shall be	1053
earned beginning on the first day of the calendar year next	1054
following and ending on the last day of that year, except that in	1055
the case of a payment under this division made prior to the last	1056
day of a year, interest shall be earned ending on the last day of	1057
the month prior to the date of payment. The board shall credit	1058
interest at the end of the calendar year in which it is earned.	1059

(D) The income fund is the fund from which interest is	1060
transferred and credited on the amounts in the funds described in	1061
divisions (B), (C), and (F) of this section, and is a contingent	1062
fund from which the special requirements of the funds may be paid	1063
by transfer from this fund. All income derived from the	1064
investment of the funds of the system, together with all gifts and	1065
bequests, or the income therefrom, shall be paid into this fund.	1066

Any deficit occurring in any other fund that will not be	1067
covered by payments to that fund, as otherwise provided in Chapter	1068
145. of the Revised Code, shall be paid by transfers of amounts	1069
from the income fund to such fund or funds. If the amount in the	1070
income fund is insufficient at any time to meet the amounts	1071
payable to the funds described in divisions (C) and (F) of this	1072
section, the amount of the deficiency shall be transferred from	1073
the employers' accumulation fund.	1074

The system may accept gifts and bequests. Any gifts or	1075
bequests, any funds which may be transferred from the employees'	1076
savings fund by reason of lack of a claimant, any surplus in any	1077
fund created by this section, or any other funds whose disposition	1078
is not otherwise provided for, shall be credited to the income	1079
fund.	1080

(E) The expense fund is the fund from which shall be paid	1081
the expenses of the administration of this chapter, exclusive of	1082
amounts payable as retirement allowances and as other benefits.	1083

(F) The survivors' benefit fund is the fund from which shall	1084
be paid dependent survivor benefits provided by section 145.45 of	1085
the Revised Code.	1086

(G) The defined contribution fund is the fund in which shall	1087
be accumulated the contributions deducted from the earnable salary	1088
of members participating in a PERS defined contribution plan	1089
established under section 145.81 of the Revised Code, as provided	1090
in section 145.85 of the Revised Code, together with any earnings	1091
and employer contributions, as provided in section 145.86 of the	1092
Revised Code, credited thereon. The defined contribution fund is	1093
the fund from which shall be paid all benefits provided under a	1094
PERS defined contribution plan established under section 145.81 of	1095
the Revised Code.	1096

Sec. 145.27.  (A)(1) As used in this division, "personal	1097
history record" means information maintained by the public	1098
employees retirement board on an individual who is a member,	1099
former member, contributor, former contributor, retirant, or	1100
beneficiary that includes the address, telephone number, social	1101
security number, record of contributions, correspondence with the	1102
public employees retirement system, or other information the board	1103
determines to be confidential.	1104

(2) The records of the board shall be open to public	1105
inspection, except forthat the following, which shall be	1106
excluded, except with the written authorization of the individual	1107
concerned:	1108

(a) The individual's statement of previous service and other	1109
information as provided for in section 145.16 of the Revised Code;	1110

(b) The amount of a monthly allowance or benefit paid to the	1111
individual;	1112

(c) The individual's personal history record.

1113

(B) All medical reports and recommendations required by this	1114
chapter are privileged, except that copies of such medical reports	1115
or recommendations shall be made available to the personal	1116
physician, attorney, or authorized agent of the individual	1117
concerned upon written release from the individual or the	1118
individual's agent, or when necessary for the proper	1119
administration of the fund, to the board assigned physician.	1120

(C) Any person who is a member or contributor of the system	1121
shall be furnished with a statement of the amount to the credit of	1122
the individual's account upon written request. The board is not	1123
required to answer more than one such request of a person in any	1124
one year. The board may issue annual statements of accounts to	1125
members and contributors.	1126

(D) Notwithstanding the exceptions to public inspection in	1127
division (A)(2) of this section, the board may furnish the	1128
following information:	1129

(1) If a member, former member, contributor, former	1130
contributor, or retirant is subject to an order issued under	1131
section 2907.15 of the Revised Code or is convicted of or pleads	1132
guilty to a violation of section 2921.41 of the Revised Code, on	1133
written request of a prosecutor as defined in section 2935.01 of	1134
the Revised Code, the board shall furnish to the prosecutor the	1135
information requested from the individual's personal history	1136
record.	1137

(2) Pursuant to a court or administrative order issued	1138
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised	1139
Code, the board shall furnish to a court or child support	1140
enforcement agency the information required under that section.	1141

(3) At the written request of any person, the board shall	1142
provide to the person a list of the names and addresses of	1143
members, former members, contributors, former contributors,	1144
retirants, or beneficiaries. The costs of compiling, copying, and	1145
mailing the list shall be paid by such person.	1146

(4) Within fourteen days after receiving from the director	1147
of job and family services a list of the names and social security	1148
numbers of recipients of public assistance pursuant to section	1149
5101.181 of the Revised Code, the board shall inform the auditor	1150
of state of the name, current or most recent employer address, and	1151
social security number of each member whose name and social	1152
security number are the same as that of a person whose name or	1153
social security number was submitted by the director. The board	1154
and its employees shall, except for purposes of furnishing the	1155
auditor of state with information required by this section,	1156
preserve the confidentiality of recipients of public assistance in	1157
compliance with division (A) of section 5101.181 of the Revised	1158
Code.	1159

(5) The system shall comply with orders issued under section	1160
3105.87 of the Revised Code.	1161

On the written request of an alternate payee, as defined in	1162
section 3105.80 of the Revised Code, the system shall furnish to	1163
the alternate payee information on the amount and status of any	1164
amounts payable to the alternate payee under an order issued under	1165
section 3105.171 or 3105.65 of the Revised Code.	1166

(E) A statement that contains information obtained from the	1167
system's records that is signed by the executive director or an	1168
officer of the system and to which the system's official seal is	1169
affixed, or copies of the system's records to which the signature	1170
and seal are attached, shall be received as true copies of the	1171
system's records in any court or before any officer of this state.	1172

Sec. 145.35.  (A) As used in this section, "on-duty illness	1173
or injury" means an illness or injury that occurred during or	1174
resulted from performance of duties under the direct supervision	1175
of a member's appointing authority.	1176

(B) The public employees retirement system shall provide	1177
disability coverage to each member who has at least five years of	1178
total service credit and disability coverage for on-duty illness	1179
or injury to each member who is a PERS law enforcement officer or	1180
Hamilton county municipal court bailiff, regardless of length of	1181
service.	1182

Not later than October 16, 1992, the public employees	1183
retirement board shall give each person who is a member on July	1184
29, 1992, the opportunity to elect disability coverage either	1185
under section 145.36 of the Revised Code or under section 145.361	1186
of the Revised Code. The board shall mail notice of the election,	1187
accompanied by an explanation of the coverage under each of the	1188
Revised Code sections and a form on which the election is to be	1189
made, to each member at the member's last known address. The	1190
board shall also provide the explanation and form to any member on	1191
request.	1192

Regardless of whether the member actually receives notice of	1193
the right to make an election, a member who fails to file a valid	1194
election under this section shall be considered to have elected	1195
disability coverage under section 145.36 of the Revised Code. To	1196
be valid, an election must be made on the form provided by the	1197
retirement board, signed by the member, and filed with the board	1198
not later than one hundred eighty days after the date the notice	1199
was mailed, or, in the case of a form provided at the request of a	1200
member, a date specified by rule of the retirement board. Once	1201
made, an election is irrevocable, but if the member ceases to be a	1202
member of the retirement system, the election is void. If a	1203
person who makes an election under this section also makes an	1204
election under section 3307.62 or 3309.39 of the Revised Code, the	1205
election made for the system that pays a disability benefit to	1206
that person shall govern the benefit.	1207

Disability coverage shall be provided under section 145.361	1208
of the Revised Code for persons who become members after July 29,	1209
1992, and for members who elect under this division to be covered	1210
under section 145.361 of the Revised Code.	1211

The retirement board may adopt rules governing elections made	1212
under this division.	1213

(C) Application for a disability benefit may be made by a	1214
member, by a person acting in the member's behalf, or by the	1215
member's employer, provided the member has disability coverage	1216
under section 145.36 or 145.361 of the Revised Code and is not	1217
receiving a disability benefit under any other Ohio state or	1218
municipal retirement program. Application must be made within two	1219
years from the date the member's contributing service terminated	1220
or the date the member ceased to make contributions to the PERS	1221
defined benefit plan under section 145.814 of the Revised Code,	1222
unless the retirement board determines that the member's medical	1223
records demonstrate conclusively that at the time the two-year	1224
period expired, the member was physically or mentally	1225
incapacitated for duty and unable to make an application.	1226
Application may not be made by or for any person receiving age and	1227
service retirement benefits under section 145.33, 145.331, 145.34,	1228
or 145.37 of the Revised Code or any person who, pursuant to	1229
section 145.40 of the Revised Code, has been paid the accumulated	1230
contributions standing to the credit of the person's individual	1231
account in the employees' savings fund. The application shall be	1232
made on a form provided by the retirement board.	1233

(D) The benefit payable to any member who is approved for a	1234
disability benefit shall become effective on the first day of the	1235
month immediately following the later of the following:	1236

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

1237

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

1238

(E) Medical examination of a member who has applied for a	1239
disability benefit shall be conducted by a competent disinterested	1240
physician or physicians selected by the board to determine whether	1241
the member is mentally or physically incapacitated for the	1242
performance of duty by a disabling condition either permanent or	1243
presumed to be permanent. The disability must have occurred since	1244
last becoming a member or have increased since last becoming a	1245
member to such extent as to make the disability permanent or	1246
presumed to be permanent. A disability is presumed to be	1247
permanent if it is expected to last for a continuous period of not	1248
less than twelve months following the filing of the application.	1249

If the physician or physicians determine that the member	1250
qualifies for a disability benefit, the board concurs with the	1251
determination, and the member agrees to medical treatment as	1252
specified in division (F) of this section, the member shall	1253
receive a disability benefit under section 145.36 or 145.361 of	1254
the Revised Code. The action of the board shall be final.	1255

(F) The public employees retirement board shall adopt rules	1256
requiring a disability benefit recipient, as a condition of	1257
continuing to receive a disability benefit, to agree in writing to	1258
obtain any medical treatment recommended by the board's physician	1259
and submit medical reports regarding the treatment. If the board	1260
determines that a disability benefit recipient is not obtaining	1261
the medical treatment or the board does not receive a required	1262
medical report, the disability benefit shall be suspended until	1263
the treatment is obtained, the report is received by the board, or	1264
the board's physician certifies that the treatment is no longer	1265
helpful or advisable. Should the recipient's failure to obtain	1266
treatment or submit a medical report continue for one year, the	1267
recipient's right to the disability benefit shall be terminated as	1268
of the effective date of the original suspension.	1269

(G) In the event an employer files an application for a	1270
disability benefit as a result of a member having been separated	1271
from service because the member is considered to be mentally or	1272
physically incapacitated for the performance of the member's	1273
present duty, and the physician or physicians selected by the	1274
board reports to the board that the member is physically and	1275
mentally capable of performing service similar to that from which	1276
the member was separated and the board concurs in the report, the	1277
board shall so certify to the employer and the employer shall	1278
restore the member to the member's previous position and salary or	1279
to a similar position and salary.	1280

Sec. 145.38.  (A) As used in this section and section	1281
145.384 of the Revised Code:	1282

(1) "PERS retirant" means a former member of the public	1283
employees retirement system who is receiving one of the following:	1284

(a) Age and service retirement benefits under section	1285
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code;	1286

(b) Age and service retirement benefits paid by the public	1287
employees retirement system under section 145.37 of the Revised	1288
Code;	1289

(c) Any benefit paid by the system under a PERS defined	1290
contribution plan established under section 145.81 of the Revised	1291
Code.	1292

(2) "Other system retirant" means both of the following:

1293

(a) A member or former member of the Ohio police and fire	1294
pension fund, state teachers retirement system, school employees	1295
retirement system, state highway patrol retirement system, or	1296
Cincinnati retirement system who is receiving age and service or	1297
commuted age and service retirement benefits or a disability	1298
benefit from a system of which the person is a member or former	1299
member;	1300

(b) A member or former member of the public employees	1301
retirement system who is receiving age and service retirement	1302
benefits or a disability benefit under section 145.37 of the	1303
Revised Code paid by the school employees retirement system or the	1304
state teachers retirement system.	1305

(B)(1) Subject to this section, a PERS retirant or other	1306
system retirant may be employed by a public employer. If so	1307
employed, the PERS retirant or other system retirant shall	1308
contribute to the public employees retirement system in accordance	1309
with section 145.47 of the Revised Code, and the employer shall	1310
make contributions in accordance with section 145.48 of the	1311
Revised Code.	1312

(2) A public employer that employs a PERS retirant or other	1313
system retirant, or enters into a contract for services as an	1314
independent contractor with a PERS retirant shall notify the	1315
retirement board of the employment or contract not later than the	1316
end of the month in which the employment or contract commences.	1317
Any overpayment of benefits to a PERS retirant by the retirement	1318
system resulting from delay or failure of the employer to give the	1319
notice shall be repaid to the retirement system by the employer.	1320

(3) On receipt of notice from a public employer that a	1321
person who is an other system retirant has been employed, the	1322
retirement system shall notify the retirement system of which the	1323
other system retirant was a member of such employment.	1324

(4)(a) A PERS retirant who has received a retirement	1325
allowance for less than two months when employment subject to this	1326
section commences shall forfeit the retirement allowance for any	1327
month the PERS retirant is employed prior to the expiration of the	1328
two-month period. Service and contributions for that period shall	1329
not be included in calculation of any benefits payable to the PERS	1330
retirant and those contributions shall be refunded on the	1331
retirant's death or termination of the employment.	1332

(b) An other system retirant who has received a retirement	1333
allowance or disability benefit for less than two months when	1334
employment subject to this section commences shall forfeit the	1335
retirement allowance or disability benefit for any month the other	1336
system retirant is employed prior to the expiration of the	1337
two-month period. Service and contributions for that period shall	1338
not be included in the calculation of any benefits payable to the	1339
other system retirant and those contributions shall be refunded on	1340
the retirant's death or termination of the employment.	1341

(c) Contributions made on compensation earned after the	1342
expiration of the two-month period shall be used in the	1343
calculation of the benefit or payment due under section 145.384 of	1344
the Revised Code.	1345

(5) On receipt of notice from the Ohio police and fire	1346
pension fund, school employees retirement system, or state	1347
teachers retirement system of the re-employment of a PERS	1348
retirant, the public employees retirement system shall not pay, or	1349
if paid, shall recover, the amount to be forfeited by the PERS	1350
retirant in accordance with section 742.26, 3307.35, or 3309.341	1351
of the Revised Code.	1352

(6) A PERS retirant who enters into a contract to provide	1353
services as an independent contractor to the employer by which the	1354
retirant was employed at the time of retirement or, less than two	1355
months after the retirement allowance commences, begins providing	1356
services as an independent contractor pursuant to a contract with	1357
another public employer, shall forfeit the pension portion of the	1358
retirement benefit for the period beginning the first day of the	1359
month following the month in which the services begin and ending	1360
on the first day of the month following the month in which the	1361
services end. The annuity portion of the retirement allowance	1362
shall be suspended on the day services under the contract begin	1363
and shall accumulate to the credit of the retirant to be paid in a	1364
single payment after services provided under the contract	1365
terminate. A PERS retirant subject to division (B)(6) of this	1366
section shall not contribute to the retirement system and shall	1367
not become a member of the system.	1368

(7) As used in this division, "employment" includes service	1369
for which a PERS retirant or other system retirant, the retirant's	1370
employer, or both, have waived any earnable salary for the	1371
service.	1372

(C)(1) Except as provided in division (C)(3) of this	1373
section, this division applies to both of the following:	1374

(a) A PERS retirant who, prior to September 14, 2000, was	1375
subject to division (C)(1)(b) of this section as that division	1376
existed immediately prior to September 14, 2000, and has not	1377
elected pursuant to Am. Sub. S.B. 144 of the 123rd general	1378
assembly to cease to be subject to that division;	1379

(b) A PERS retirant to whom both of the following apply:

1380

(i) The retirant held elective office in this state, or in	1381
any municipal corporation, county, or other political subdivision	1382
of this state at the time of retirement under this chapter.	1383

(ii) The retirant was elected or appointed to the same	1384
office for the remainder of the term or the term immediately	1385
following the term during which the retirement occurred.	1386

(2) A PERS retirant who is subject to this division is a	1387
member of the public employees retirement system with all the	1388
rights, privileges, and obligations of membership, except that the	1389
membership does not include survivor benefits provided pursuant to	1390
section 145.45 of the Revised Code or, beginning on the ninetieth	1391
day after September 14, 2000, any amount calculated under section	1392
145.401 of the Revised Code. The pension portion of the PERS	1393
retirant's retirement allowance shall be forfeited until the first	1394
day of the first month following termination of the employment.	1395
The annuity portion of the retirement allowance shall accumulate	1396
to the credit of the PERS retirant to be paid in a single payment	1397
after termination of the employment. The retirement allowance	1398
shall resume on the first day of the first month following	1399
termination of the employment. On termination of the employment,	1400
the PERS retirant shall elect to receive either a refund of the	1401
retirant's contributions to the retirement system during the	1402
period of employment subject to this section or a supplemental	1403
retirement allowance based on the retirant's contributions and	1404
service credit for that period of employment.	1405

(3) This division does not apply to any of the following:

1406

(a) A PERS retirant elected to office who, at the time of	1407
the election for the retirant's current term, was not retired but,	1408
not less than ninety days prior to the election for the term,	1409
filed a written declaration of intent to retire before the end of	1410
the term with the board of elections of the county in which	1411
petitions for nomination or election to the office were filed;	1412

(b) A PERS retirant elected to office who, at the time of	1413
the election for the retirant's current term, was a retirant and	1414
had been retired for not less than ninety days;	1415

(c) A PERS retirant appointed to office who, at the time of	1416
appointment to the retirant's current term, notified the person or	1417
entity making the appointment that the retirant was already	1418
retired or intended to retire before the end of the term.	1419

(D)(1) Except as provided in division (C) of this section,	1420
a PERS retirant or other system retirant subject to this section	1421
is not a member of the public employees retirement system, and,	1422
except as specified in this section does not have any of the	1423
rights, privileges, or obligations of membership. Except as	1424
specified in division (D)(2) of this section, the retirant is not	1425
eligible to receive health, medical, hospital, or surgical	1426
benefits under section 145.58 of the Revised Code for employment	1427
subject to this section.	1428

(2) A PERS retirant subject to this section shall receive	1429
primary health, medical, hospital, or surgical insurance coverage	1430
from the retirant's employer, if the employer provides coverage to	1431
other employees performing comparable work. Neither the employer	1432
nor the PERS retirant may waive the employer's coverage, except	1433
that the PERS retirant may waive the employer's coverage if the	1434
retirant has coverage comparable to that provided by the employer	1435
from a source other than the employer or the public employees	1436
retirement system. If a claim is made, the employer's coverage	1437
shall be the primary coverage and shall pay first. The benefits	1438
provided under section 145.58 of the Revised Code shall pay only	1439
those medical expenses not paid through the employer's coverage or	1440
coverage the PERS retirant receives through a source other than	1441
the retirement system.	1442

(E) If the disability benefit of an other system retirant	1443
employed under this section is terminated, the retirant shall	1444
become a member of the public employees retirement system,	1445
effective on the first day of the month next following the	1446
termination with all the rights, privileges, and obligations of	1447
membership. If such person, after the termination of the	1448
disability benefit, earns two years of service credit under this	1449
system or under the Ohio police and fire pension fund, state	1450
teachers retirement system, school employees retirement system, or	1451
state highway patrol retirement system, the person's prior	1452
contributions as an other system retirant under this section shall	1453
be included in the person's total service credit as a public	1454
employees retirement system member, and the person shall forfeit	1455
all rights and benefits of this section. Not more than one year	1456
of credit may be given for any period of twelve months.	1457

(F) This section does not affect the receipt of benefits by	1458
or eligibility for benefits of any person who on August 20, 1976,	1459
was receiving a disability benefit or service retirement pension	1460
or allowance from a state or municipal retirement system in Ohio	1461
and was a member of any other state or municipal retirement system	1462
of this state.	1463

(G) The public employees retirement board may adopt rules to	1464
carry out this section.	1465

Sec. 145.384. (A) As used in this section, "PERS retirant"	1466
means a PERS retirant who is not subject to division (C) of	1467
section 145.38 of the Revised Code. For purposes of this section,	1468
"PERS retirant" also includes aboth of the following:	1469

(1) A member who retired under section 145.383 of the Revised	1470
Code;	1471

(2) A retirant whose retirement allowance resumed under	1472
section 145.385 of the Revised Code.	1473

(A)(B) An other system retirant or PERS retirant who has	1474
made contributions under section 145.38 or 145.383 of the Revised	1475
Code or, in the case of a retirant described in division (A)(2) of	1476
this section, section 145.47 of the Revised Code may file an	1477
application with the public employees retirement system for a	1478
benefit under this section. The benefit shall consist of a single	1479
lifean annuity having a reserve equal to the amount of the	1480
retirant's accumulated contributions for the period of employment,	1481
other than the contributions excluded pursuant to division	1482
(B)(4)(a) or (b) of section 145.38 of the Revised Code, and an	1483
equal amount of the employer's contributions. The PERS retirant	1484
or other system retirant shall elect either to receive the benefit	1485
as a monthly annuity for life or a lump sum payment discounted to	1486
the present value using the current actuarial assumption rate of	1487
interest, except that if the monthly annuity would be less than	1488
twenty-five dollars per month, the retirant shall receive a lump	1489
sum payment. A retirant who elects to receive a monthly annuity	1490
shall select one of the following as the plan of payment:	1491

(1) The retirant's single life annuity;

1492

(2) The actuarial equivalent of the retirant's single life	1493
annuity in a lesser amount for life and continuing after death to	1494
a surviving beneficiary designated at the time the plan of payment	1495
is selected.	1496

(B)(C)(1) The death of a spouse or other designated	1497
beneficiary following selection of a plan of payment under	1498
division (B)(2) of this section cancels that plan of payment. The	1499
PERS retirant or other system retirant shall receive the	1500
equivalent of the retirant's single life annuity, as determined by	1501
the public employees retirement board, effective the first day of	1502
the month following receipt by the board of notice of the death.	1503

(2) On divorce, annulment, or marriage dissolution, a PERS	1504
retirant or other system retirant receiving a benefit under	1505
division (B)(2) of this section under which the beneficiary is the	1506
spouse may, with the written consent of the spouse or pursuant to	1507
an order of the court with jurisdiction over the termination of	1508
the marriage, elect to cancel the plan and receive the equivalent	1509
of the member's single life annuity as determined by the	1510
retirement board. The election shall be made on a form provided	1511
by the board and shall be effective the month following its	1512
receipt by the board.	1513

(D) Following a marriage or remarriage, a PERS retirant or	1514
other system retirant who is receiving a benefit under division	1515
(B)(1) of this section may elect a new plan of payment under this	1516
section based on the actuarial equivalent of the retirant's single	1517
life annuity as determined by the board. The plan shall be	1518
effective the first day of the month following receipt by the	1519
board of an application on a form approved by the board.	1520

(E) A benefit payable under this section shall commence on	1521
the latest of the following:	1522

(1) The last day for which compensation for all employment	1523
subject to section 145.38 or, 145.383, or 145.385 of the Revised	1524
Code was paid;	1525

(2) Attainment by the PERS retirant or other system retirant	1526
of age sixty-five;	1527

(3) If the PERS retirant or other system retirant was	1528
previously employed under section 145.38 or, 145.383, or 145.385	1529
of the Revised Code and is receiving or previously received a	1530
benefit under this section, completion of a period of twelve	1531
months since the effective date of the last benefit under this	1532
section.	1533

(C)(F)(1) If a PERS retirant or other system retirant dies	1534
while employed in employment subject to section 145.38 or,	1535
145.383, or 145.385 of the Revised Code, a lump sum payment	1536
calculated in accordance with division (A)(B) of this section	1537
shall be paid to the retirant's beneficiary under division (D)(G)	1538
of this section.	1539

(2) If at the time of death a PERS retirant or other system	1540
retirant receiving a monthly annuity has received less than the	1541
retirant would have received as a lump sum payment, the difference	1542
between the amount received and the amount that would have been	1543
received as a lump sum payment shall be paid to the retirant's	1544
beneficiary under division (D)(G) of this section.	1545

(D)(G) A PERS retirant or other system retirant employed	1546
under section 145.38 or, 145.383, or 145.385 of the Revised Code	1547
may designate one or more persons as beneficiary to receive any	1548
benefits payable under this section due to death. The designation	1549
shall be in writing duly executed on a form provided by the public	1550
employees retirement board, signed by the PERS retirant or other	1551
system retirant, and filed with the board prior to death. The	1552
last designation of a beneficiary revokes all previous	1553
designations. The PERS retirant's or other system retirant's	1554
marriage, divorce, marriage dissolution, legal separation,	1555
withdrawal of account, birth of a child, or adoption of a child	1556
revokes all previous designations. If there is no designated	1557
beneficiary, the beneficiary is the beneficiary determined under	1558
division (D) of section 145.43 of the Revised Code. If any	1559
benefit payable under this section due to the death of a PERS	1560
retirant or other system retirant is not claimed by a beneficiary	1561
within five years after the death, the amount payable shall be	1562
transferred to the income fund and thereafter paid to the	1563
beneficiary or the estate of the PERS retirant or other system	1564
retirant on application to the board.	1565

(E)(H) No amount received under this section shall be	1566
included in determining an additional benefit under section	1567
145.323 of the Revised Code or any other post-retirement benefit	1568
increase.	1569

Sec. 145.385. (A) A PERS retirant who made an election under	1570
former section 145.381 of the Revised Code under which the annuity	1571
portion of the retirant's retirement allowance was suspended and	1572
the pension portion forfeited may have the entire retirement	1573
allowance resume by giving notice to the public employees	1574
retirement system. The notice must be given not later than ninety	1575
days after the effective date of this section.	1576

(B) The retirement allowance shall resume on the first day	1577
of the month following receipt of notice by the retirement system.	1578

(C) The annuity portion of the retirement allowance that has	1579
accumulated to the retirant's credit shall be paid as a single	1580
payment on the first day of the month following receipt of notice	1581
by the retirement system.	1582

(D) Contributions made by the retirant and employer during	1583
the period of forfeiture and contributions made after the	1584
retirement allowance resumes shall be left on deposit with the	1585
system and used in the calculation of a benefit under section	1586
145.384 of the Revised Code.	1587

Sec. 145.40.  (A)(1) Subject to the provisions of section	1588
145.57 of the Revised Code and except as provided in section	1589
145.402 of the Revised Code and division (B) of this section, if a	1590
member elects to become exempt from contribution to the public	1591
employees retirement system pursuant to section 145.03 of the	1592
Revised Code or ceases to be a public employee for any cause other	1593
than death, retirement, receipt of a disability benefit, or	1594
current employment in a position in which the member has elected	1595
to participate in an alternative retirement plan under section	1596
3305.05 of the Revised Code, upon application the public employees	1597
retirement board shall pay the member the member's accumulated	1598
contributions, plus any applicable amount calculated under	1599
section 145.401 of the Revised Code, provided that allboth the	1600
following apply:	1601

(a) Three months have elapsed since the member's public	1602
service subject to this chapter, other than service exempted from	1603
contribution pursuant to section 145.03 of the Revised Code, was	1604
terminated;	1605

(b) The member has not returned to public service subject to	1606
this chapter, other than service exempted from contribution	1607
pursuant to section 145.03 of the Revised Code, during that	1608
three-month period;	1609

(c) The member is not a member of the school employees	1610
retirement system or the state teachers retirement system.	1611

The payment of such accumulated contributions shall cancel	1612
the total service credit of such member in the public employees	1613
retirement system.	1614

(2) A member described in division (A)(1) of this section	1615
who is married at the time of application for payment and is	1616
eligible for age and service retirement under section 145.32,	1617
145.33, 145.331, or 145.34 of the Revised Code shall submit with	1618
the application a written statement by the member's spouse	1619
attesting that the spouse consents to the payment of the member's	1620
accumulated contributions. Consent shall be valid only if it is	1621
signed and witnessed by a notary public.	1622

The board may waive the requirement of consent if the spouse	1623
is incapacitated or cannot be located, or for any other reason	1624
specified by the board. Consent or waiver is effective only with	1625
regard to the spouse who is the subject of the consent or waiver.	1626

(B) This division applies to any member who is employed in a	1627
position in which the member has made an election under section	1628
3305.05 of the Revised Code and due to the election ceases to be a	1629
public employee for purposes of that position.	1630

Subject to section 145.57 of the Revised Code, the public	1631
employees retirement system shall do the following:	1632

(1) On receipt of a certified copy of a form evidencing an	1633
election under section 3305.05 of the Revised Code, pay to the	1634
appropriate provider, in accordance with section 3305.051 of the	1635
Revised Code, the amount described in section 3305.051 of the	1636
Revised Code;	1637

(2) If a member has accumulated contributions, in addition	1638
to those subject to division (B)(1) of this section, standing to	1639
the credit of the member's individual account and is not otherwise	1640
employed in a position in which the member is considered a public	1641
employee for the purposes of that position, pay, to the provider	1642
the member selected pursuant to section 3305.05 of the Revised	1643
Code, the member's accumulated contributions. The payment shall	1644
be made on the member's application.	1645

(C) Payment of a member's accumulated contributions under	1646
division (B) of this section cancels the member's total service	1647
credit in the public employees retirement system. A member whose	1648
accumulated contributions are paid to a provider pursuant to	1649
division (B) of this section is forever barred from claiming or	1650
purchasing service credit under the public employees retirement	1651
system for the period of employment attributable to those	1652
contributions.	1653

Sec. 145.402. (A) Except as provided in division (B) of this	1654
section, a member of the public employees retirement system who	1655
has ceased to be a public employee under this chapter and is also	1656
a member of either the state teachers retirement system or the	1657
school employees retirement system, or both, may not withdraw the	1658
member's accumulated contributions.	1659

(B) On application, the public employees retirement board	1660
shall pay a member described in division (A) of this section the	1661
member's accumulated contributions if either of the following	1662
applies:	1663

(1) The member also withdraws the member's contributions	1664
from the other system or systems.	1665

(2) The member is a participant in a plan established under	1666
section 3307.81 or 3309.81 of the Revised Code and has withdrawn	1667
the member's contributions under plans described in sections	1668
3307.50 to 3307.79 and 3309.18 to 3309.70 of the Revised Code.	1669

Sec. 145.45.  Except as provided in division (C)(1) of this	1670
section, in lieu of accepting the payment of the accumulated	1671
account of a member who dies before service retirement, a	1672
beneficiary, as determined in this section or section 145.43 of	1673
the Revised Code, may elect to forfeit the accumulated	1674
contributions and to substitute certain other benefits under	1675
division (A) or (B) of this section.	1676

(A)(1) If a deceased member was eligible for a service	1677
retirement benefit as provided in section 145.33, 145.331, or	1678
145.34 of the Revised Code, a surviving spouse or other sole	1679
dependent beneficiary may elect to receive a monthly benefit	1680
computed as the joint-survivor benefit designated as "plan D" in	1681
section 145.46 of the Revised Code, which the member would have	1682
received had the member retired on the last day of the month of	1683
death and had the member at that time selected such joint-survivor	1684
plan. Payment shall begin with the month subsequent to the	1685
member's death, except that a surviving spouse who is less than	1686
sixty-five years old may defer receipt of such benefit. Upon	1687
receipt, the benefit shall be calculated based upon the spouse's	1688
age at the time of first payment, and shall accrue regular	1689
interest during the time of deferral.	1690

(2) Beginning on a date selected by the public employees	1691
retirement board, which shall be not later than July 1, 2004, a	1692
surviving spouse or other sole dependent beneficiary may elect, in	1693
lieu of a monthly payment under division (A)(1) of this section, a	1694
plan of payment consisting of both of the following:	1695

(a) A lump sum in an amount the surviving spouse or other	1696
sole dependent beneficiary designates that constitutes a portion	1697
of the allowance that would be payable under division (A)(1) of	1698
this section;	1699

(b) The remainder of that allowance in monthly payments.

1700

The total amount paid as a lump sum and a monthly benefit	1701
shall be the actuarial equivalent of the amount that would have	1702
been paid had the lump sum not been selected.	1703

The lump sum amount designated by the surviving spouse or	1704
other sole dependent beneficiary under division (A)(2)(a) of this	1705
section shall be not less than six times and not more than	1706
thirty-six times the monthly amount that would be payable to the	1707
surviving spouse or other sole dependent beneficiary under	1708
division (A)(1) of this section and shall not result in a monthly	1709
payment that is less than fifty per cent of that monthly amount.	1710

(B) If a deceased member had, except as provided in division	1711
(B)(7) of this section, at least one and one-half years of	1712
contributing service credit, with, except as provided in division	1713
(B)(7) of this section, at least one-quarter year of contributing	1714
service credit within the two and one-half years prior to the date	1715
of death, or was receiving at the time of death a disability	1716
benefit as provided in section 145.36, 145.361, or 145.37 of the	1717
Revised Code, qualified survivors who elect to receive monthly	1718
benefits shall receive the greater of the benefits provided in	1719
division (B)(1)(a) or (b) and (4) of this section as allocated in	1720
accordance with division (B)(5) of this section.	1721

(2) Benefits shall begin as qualified survivors meet	1745
eligibility requirements as follows:	1746

(a) A qualified spouse is the surviving spouse of the	1747
deceased member, who is age sixty-two, or regardless of age if the	1748
deceased member had ten or more years of Ohio service credit, or	1749
regardless of age if caring for a qualified child, or regardless	1750
of age if adjudged physically or mentally incompetent. A spouse	1751
of a member who died prior to August 27, 1970, whose eligibility	1752
was determined at the member's death, and who is physically or	1753
mentally incompetent on or after August 20, 1976, shall be paid	1754
the monthly benefit which that person would otherwise receive when	1755
qualified by age.	1756

(b) A qualified child is any child of the deceased member	1757
who has never been married and to whom one of the following	1758
applies:	1759

(i) Is under age eighteen, or under age twenty-two if the	1760
child is attending an institution of learning or training pursuant	1761
to a program designed to complete in each school year the	1762
equivalent of at least two-thirds of the full-time curriculum	1763
requirements of such institution and as further determined by	1764
board policy;	1765

(ii) Regardless of age, is adjudged physically or mentally	1766
incompetent at the time of the member's death.	1767

(c) A qualified parent is a dependent parent aged sixty-five	1768
or older or regardless of age if physically or mentally	1769
incompetent, a dependent parent whose eligibility was determined	1770
by the member's death prior to August 20, 1976, and who is	1771
physically or mentally incompetent on or after August 20, 1976,	1772
shall be paid the monthly benefit for which that person would	1773
otherwise qualify.	1774

(3) "Physically or mentally incompetent" as used in this	1775
section may be determined by a court of jurisdiction, or by a	1776
physician appointed by the retirement board. Incapability of	1777
making a living because of a physically or mentally disabling	1778
condition shall meet the qualifications of this division.	1779

(4) Benefits to a qualified survivor shall terminate upon	1780
ceasing to meet eligibility requirements as provided in this	1781
division, a first marriage, abandonment, adoption, or during	1782
active military service. Benefits to a deceased member's	1783
surviving spouse that were terminated under a former version of	1784
this section that required termination due to remarriage and were	1785
not resumed prior to September 16, 1998, shall resume on the first	1786
day of the month immediately following receipt by the board of an	1787
application on a form provided by the board.	1788

Upon the death of any subsequent spouse who was a member of	1789
the public employees retirement system, state teachers retirement	1790
system, or school employees retirement system, the surviving	1791
spouse of such member may elect to continue receiving benefits	1792
under this division, or to receive survivor's benefits, based upon	1793
the subsequent spouse's membership in one or more of the systems,	1794
for which such surviving spouse is eligible under this section or	1795
section 3307.66 or 3309.45 of the Revised Code. If the surviving	1796
spouse elects to continue receiving benefits under this division,	1797
such election shall not preclude the payment of benefits under	1798
this division to any other qualified survivor.	1799

Benefits shall begin or resume on the first day of the month	1800
following the attainment of eligibility and shall terminate on the	1801
first day of the month following loss of eligibility.	1802

(5)(a) If a benefit is payable under division (B)(1)(a) of	1803
this section, benefits to a qualified spouse shall be paid in the	1804
amount determined for the first qualifying survivor in division	1805
(B)(1)(a) of this section. All other qualifying survivors shall	1806
share equally in the benefit or remaining portion thereof.	1807

(b) All qualifying survivors shall share equally in a	1808
benefit payable under division (B)(1)(b) of this section, except	1809
that if there is a surviving spouse, the surviving spouse shall	1810
receive not less than the amount determined for the first	1811
qualifying survivor in division (B)(1)(a) of this section.	1812

(6) The beneficiary of a member who is also a member of the	1813
state teachers retirement system or of the school employees	1814
retirement system, must forfeit the member's accumulated	1815
contributions in those systems and in the public employees	1816
retirement system, if the beneficiary takes a survivor benefit.	1817
Such benefit shall be exclusively governed by section 145.37 of	1818
the Revised Code.	1819

(7) The restriction that the deceased member have at least	1820
one and one-half years of contributing service credit, with at	1821
least one-quarter year of contributing service within the two and	1822
one-half years prior to the date of death, does not apply if the	1823
deceased member was contributing toward benefits under division	1824
(B) or (C) of section 145.33 of the Revised Code at the time of	1825
death.	1826

(C)(1) Regardless of whether the member is survived by a	1827
spouse or designated beneficiary, if the public employees	1828
retirement system receives notice that a deceased member described	1829
in division (A) or (B) of this section has one or more qualified	1830
children, all persons who are qualified survivors under division	1831
(B) of this section shall receive monthly benefits as provided in	1832
division (B) of this section.	1833

If, after determining the monthly benefits to be paid under	1834
division (B) of this section, the system receives notice that	1835
there is a qualified survivor who was not considered when the	1836
determination was made, the system shall, notwithstanding section	1837
145.561 of the Revised Code, recalculate the monthly benefits with	1838
that qualified survivor included, even if the benefits to	1839
qualified survivors already receiving benefits are reduced as a	1840
result. The benefits shall be calculated as if the qualified	1841
survivor who is the subject of the notice became eligible on the	1842
date the notice was received and shall be paid to qualified	1843
survivors effective on the first day of the first month following	1844
the system's receipt of the notice.	1845

If the retirement system did not receive notice that a	1846
deceased member has one or more qualified children prior to making	1847
payment under section 145.43 of the Revised Code to a beneficiary	1848
as determined by the retirement system, the payment is a full	1849
discharge and release of the system from any future claims under	1850
this section or section 145.43 of the Revised Code.	1851

(2) If benefits under division (C)(1) of this section to all	1852
persons, or to all persons other than a surviving spouse or other	1853
sole beneficiary, terminate, there are no children under the age	1854
of twenty-two years, and the surviving spouse or beneficiary	1855
qualifies for benefits under division (A) of this section, the	1856
surviving spouse or beneficiary may elect to receive benefits	1857
under division (A) of this section. The benefits shall be	1858
effective on the first day of the month immediately following the	1859
termination.	1860

(D) The final average salary used in the calculation of a	1861
benefit payable pursuant to division (A) or (B) of this section to	1862
a survivor or beneficiary of a disability benefit recipient shall	1863
be adjusted for each year between the disability benefit's	1864
effective date and the recipient's date of death by the lesser of	1865
three per cent or the actual average percentage increase in the	1866
consumer price index prepared by the United States bureau of labor	1867
statistics (U.S. city average for urban wage earners and clerical	1868
workers: "all items 1982-84=100").	1869

(E) If the survivor benefits due and paid under this section	1870
are in a total amount less than the member's accumulated account	1871
that was transferred from the public employees' savings fund to	1872
the survivors' benefit fund, then the difference between the total	1873
amount of the benefits paid shall be paid to the beneficiary under	1874
section 145.43 of the Revised Code.	1875

Sec. 145.46.  (A) A retirement allowance calculated under	1876
section 145.33, 145.331, or 145.34 of the Revised Code shall be	1877
paid as provided in this section. If the member is eligible to	1878
elect a plan of payment under this section, the election shall be	1879
made on a form provided by the public employees retirement board.	1880
A plan of payment elected under this section shall be effective	1881
only if approved by the board, which shall approve it only if it	1882
is certified by an actuary engaged by the board to be the	1883
actuarial equivalent of the retirement allowance calculated under	1884
section 145.33, 145.331, or 145.34 of the Revised Code.	1885

(B)(1) Unless the member is eligible to elect another plan	1886
of payment, a member who retires under section 145.32, 145.331, or	1887
145.34 of the Revised Code shall receive a retirement allowance	1888
under "plan A," which shall consist of the actuarial equivalent of	1889
the member's retirement allowance determined under section 145.33,	1890
145.331, or 145.34 of the Revised Code in a lesser amount payable	1891
for life and one-half of such allowance continuing after death to	1892
the member's surviving spouse for the life of the spouse.	1893

A member may elect to receive the member's retirement	1894
allowance under a plan of payment other than "plan A" if the	1895
member is not married or either the member's spouse consents in	1896
writing to the member's election of a plan of payment other than	1897
"plan A" or the board waives the requirement that the spouse	1898
consent. An application for retirement shall include an	1899
explanation of all of the following:	1900

(a) That, if the member is married, unless the spouse	1901
consents to another plan of payment, the member's retirement	1902
allowance will be paid under "plan A," which consists of the	1903
actuarial equivalent of the member's retirement allowance in a	1904
lesser amount payable for life and one-half of the allowance	1905
continuing after death to the surviving spouse for the life of the	1906
spouse;	1907

(b) A description of the alternative plans of payment,	1908
including all plans described in divisions (B)(2) and (3) of this	1909
section, available with the consent of the spouse;	1910

(c) That the spouse may consent to another plan of payment	1911
and the procedure for giving consent;	1912

(d) That consent is irrevocable once notice of consent is	1913
filed with the board.	1914

Consent shall be valid only if it is signed, in writing, and	1915
witnessed by a notary public. The board may waive the requirement	1916
of consent if the spouse is incapacitated or cannot be located or	1917
for any other reason specified by the board. Consent or waiver is	1918
effective only with regard to the spouse who is the subject of the	1919
consent or waiver.	1920

(2) A member eligible to elect to receive the member's	1921
retirement allowance under a plan of payment other than "plan A"	1922
shall receive the member's retirement allowance under the plan	1923
described in division (B)(3) of this section or one of the	1924
following plans elected at the time the member makes application	1925
for retirement:	1926

(a) "Plan B," which shall consist of an allowance determined	1927
under section 145.33, 145.331, or 145.34 of the Revised Code;	1928

(b) "Plan C," which shall consist of the actuarial	1929
equivalent of the member's retirement allowance determined under	1930
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	1931
amount payable for life and one-half or some other portion of the	1932
allowance continuing after death to the member's sole surviving	1933
beneficiary designated at the time of the member's retirement,	1934
provided that the amount payable to the beneficiary does not	1935
exceed the amount payable to the member;	1936

(c) "Plan D," which shall consist of the actuarial	1937
equivalent of the member's retirement allowance determined under	1938
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	1939
amount payable for life and continuing after death to a surviving	1940
beneficiary designated at the time of the member's retirement;	1941

(d) "Plan E," which shall consist of the actuarial	1942
equivalent of the member's retirement allowance determined under	1943
section 145.33, 145.331, or 145.34 of the Revised Code in a lesser	1944
amount payable for a certain period from the member's retirement	1945
date as elected by the member and approved by the retirement	1946
board, and on the member's death before the expiration of that	1947
certain period the member's lesser retirement allowance payable	1948
for the remainder of that period to the member's surviving	1949
designated beneficiary nominated by written designation filed with	1950
the retirement board.	1951

Should the nominated beneficiary designated in writing die	1952
prior to the expiration of the guarantee period, then for the	1953
purpose of completing payment for the remainder of the guarantee	1954
period, the present value of such payments shall be paid to the	1955
estate of the beneficiary last receiving.	1956

(3)(a) Beginning on a date selected by the retirement board,	1957
which shall be not later than July 1, 2004, a member may elect to	1958
receive a retirement allowance under a plan of payment consisting	1959
of both a lump sum in an amount the member designates that	1960
constitutes a portion of the member's retirement allowance under a	1961
plan described in division (B) of this section and the remainder	1962
as a monthly allowance under that plan.	1963

The total amount paid as a lump sum and a monthly benefit	1964
shall be the actuarial equivalent of the amount that would have	1965
been paid had the lump sum not been selected.	1966

(b) The lump sum designated by a member shall be not less	1967
than six times and not more than thirty-six times the monthly	1968
amount that would be payable to the member under the plan of	1969
payment elected under division (B)(3)(a) of this section had the	1970
lump sum not been elected and shall not result in a monthly	1971
allowance that is less than fifty per cent of that monthly amount.	1972

(4) An election under division (B)(2) or (3) of this section	1973
shall be made at the time the member makes application for	1974
retirement.	1975

(5) A member eligible to elect to receive the member's	1976
retirement allowance under a plan of payment other than "plan A"	1977
because the member is unmarried who fails to make an election on	1978
retirement shall receive the member's retirement allowance under	1979
"plan B."	1980

(C) If the retirement allowances, as a single life annuity	1981
or payment plan as provided in this section, due and paid are in a	1982
total amount less than (1) the accumulated contributions, and (2)	1983
other deposits made by the member as provided by this chapter,	1984
standing to the credit of the member at the time of retirement,	1985
then the difference between the total amount of the allowances	1986
paid and the accumulated contributions and other deposits shall be	1987
paid to the beneficiary provided under division (D) of section	1988
145.43 of the Revised Code.	1989

(D)(1) The death of a spouse or any designated beneficiary	1990
following retirement shall cancel any plan of payment to provide	1991
continuing lifetime benefits to the spouse or beneficiary and	1992
return the retirant to the retirant's single lifetime benefit	1993
equivalent, as determined by the board, to be effective the month	1994
following receipt by the board of notice of the death.	1995

(2) On divorce, annulment, or marriage dissolution, a	1996
retirant receiving a retirement allowance under a plan that	1997
provides for continuation of all or part of the allowance after	1998
death for the lifetime of the retirant's surviving spouse may,	1999
with the written consent of the spouse or pursuant to an order of	2000
the court with jurisdiction over the termination of the marriage,	2001
elect to cancel the plan and receive the member's single lifetime	2002
benefit equivalent as determined by the retirement board. The	2003
election shall be made on a form provided by the board and shall	2004
be effective the month following its receipt by the board.	2005

(E) Following a marriage or remarriage, a retirant who is	2006
receiving the retirant's retirement allowance under "plan B" may	2007
elect a new plan of payment under division (B)(1), (2)(b), or	2008
(2)(c) of this section based on the actuarial equivalent of the	2009
retirant's single lifetime benefit as determined by the board. The	2010
plan shall become effective the first day of the month following	2011
receipt by the board of an application on a form approved by the	2012
board.	2013

(F) Any person who, prior to July 24, 1990, selected an	2014
optional plan of payment at retirement that provided for a return	2015
to the single life benefit after the designated beneficiary's	2016
death shall have the retirant's benefit adjusted to the optional	2017
plan equivalent without such provision.	2018

(G) A retirant's receipt of the first month's retirement	2019
allowance constitutes the retirant's final acceptance of the plan	2020
of payment and may be changed only as provided in this chapter.	2021

Sec. 145.56.  The right of an individual to a pension, an	2022
annuity, or a retirement allowance itself, the right of an	2023
individual to any optional benefit, any other right accrued or	2024
accruing to any individual, under this chapter, or under any	2025
municipal retirement system established subject to this chapter	2026
under the laws of this state or any charter, the various funds	2027
created by this chapter, or under such municipal retirement	2028
system, and all moneys, investments, and income from moneys or	2029
investments are exempt from any state tax, except the tax imposed	2030
by section 5747.02 of the Revised Code and are exempt from any	2031
county, municipal, or other local tax, except taxes imposed	2032
pursuant to section 5748.02 or 5748.08 of the Revised Code and,	2033
except as provided in sectionsections 145.57, 3105.171, 3105.65,	2034
and 3115.32 and Chapters 3119., 3121., 3123., and 3125. of the	2035
Revised Code, shall not be subject to execution, garnishment,	2036
attachment, the operation of bankruptcy or insolvency laws, or	2037
other process of law whatsoever, and shall be unassignable except	2038
as specifically provided in this chapter and sections 3105.171,	2039
3105.65,,, and 3115.32 and Chapters 3119., 3121., 3123., and 3125.	2040
of the Revised Code.	2041

Sec. 145.58.  (A) As used in this section, "ineligible	2042
individual" means all of the following:	2043

(1) A former member receiving benefits pursuant to section	2044
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code for	2045
whom eligibility is established more than five years after June	2046
13, 1981, and who, at the time of establishing eligibility, has	2047
accrued less than ten years' service credit, exclusive of credit	2048
obtained pursuant to section 145.297 or 145.298 of the Revised	2049
Code, credit obtained after January 29, 1981, pursuant to section	2050
145.293 or 145.301 of the Revised Code, and credit obtained after	2051
May 4, 1992, pursuant to section 145.28 of the Revised Code;	2052

(2) The spouse of the former member;

2053

(3) The beneficiary of the former member receiving benefits	2054
pursuant to section 145.46 of the Revised Code.	2055

(B) The public employees retirement board may enter into	2056
agreements with insurance companies, health insuring corporations,	2057
or government agencies authorized to do business in the state for	2058
issuance of a policy or contract of health, medical, hospital, or	2059
surgical benefits, or any combination thereof, for those	2060
individuals receiving age and service retirement or a disability	2061
or survivor benefit subscribing to the plan, or for PERS retirants	2062
employed under section 145.38 of the Revised Code, for coverage of	2063
benefits in accordance with division (D)(2) of section 145.38 of	2064
the Revised Code. Notwithstanding any other provision of this	2065
chapter, the policy or contract may also include coverage for any	2066
eligible individual's spouse and dependent children and for any of	2067
the individual's sponsored dependents as the board determines	2068
appropriate. If all or any portion of the policy or contract	2069
premium is to be paid by any individual receiving age and service	2070
retirement or a disability or survivor benefit, the individual	2071
shall, by written authorization, instruct the board to deduct the	2072
premium agreed to be paid by the individual to the company,	2073
corporation, or agency.	2074

The board may contract for coverage on the basis of part or	2075
all of the cost of the coverage to be paid from appropriate funds	2076
of the public employees retirement system. The cost paid from the	2077
funds of the system shall be included in the employer's	2078
contribution rate provided by sections 145.48 and 145.51 of the	2079
Revised Code. The board may by rule provide coverage to	2080
ineligible individuals if the coverage is provided at no cost to	2081
the retirement system. The board shall not pay or reimburse the	2082
cost for coverage under this section or section 145.325 of the	2083
Revised Code for any ineligible individual.	2084

The board may provide for self-insurance of risk or level of	2085
risk as set forth in the contract with the companies,	2086
corporations, or agencies, and may provide through the	2087
self-insurance method specific benefits as authorized by rules of	2088
the board.	2089

(C) If the board provides health, medical, hospital, or	2090
surgical benefits through any means other than a health insuring	2091
corporation, it shall offer to each individual eligible for the	2092
benefits the alternative of receiving benefits through enrollment	2093
in a health insuring corporation, if all of the following apply:	2094

(1) The health insuring corporation provides services in the	2095
geographical area in which the individual lives;	2096

(2) The eligible individual was receiving health care	2097
benefits through a health maintenance organization or a health	2098
insuring corporation before retirement;	2099

(3) The rate and coverage provided by the health insuring	2100
corporation to eligible individuals is comparable to that	2101
currently provided by the board under division (B) of this	2102
section. If the rate or coverage provided by the health insuring	2103
corporation is not comparable to that currently provided by the	2104
board under division (B) of this section, the board may deduct the	2105
additional cost from the eligible individual's monthly benefit.	2106

The health insuring corporation shall accept as an enrollee	2107
any eligible individual who requests enrollment.	2108

The board shall permit each eligible individual to change	2109
from one plan to another at least once a year at a time determined	2110
by the board.	2111

(D) The board shall, beginning the month following receipt	2112
of satisfactory evidence of the payment for coverage, pay monthly	2113
to each recipient of service retirement, or a disability or	2114
survivor benefit under the public employees retirement system who	2115
is eligible for medical insurance coverage under part B of Title	2116
XVIII of "The Social Security Act," 79 Stat. 301 (1965), 42	2117
U.S.C.A. 1395j, as amended, an amount equal to the basic premium	2118
for such coverage, except that the board shall make no such	2119
payment to any ineligible individual.	2120

(E)(D) The board shall establish by rule requirements for	2121
the coordination of any coverage, payment, or benefit provided	2122
under this section or section 145.325 of the Revised Code with any	2123
similar coverage, payment, or benefit made available to the same	2124
individual by the Ohio police and fire pension fund, state	2125
teachers retirement system, school employees retirement system, or	2126
state highway patrol retirement system.	2127

(F)(E) The board shall make all other necessary rules	2128
pursuant to the purpose and intent of this section.	2129

Sec. 145.80.  The public employees retirement board shall	2130
adopt rules to implement each PERS defined contribution plan	2131
established under section 145.81 of the Revised Code.	2132

Sec. 145.81.  The public employees retirement board shall	2133
establish the PERS defined contribution plans, which shall be one	2134
or more plans consisting of benefit options that provide for an	2135
individual account for each participating member and under which	2136
benefits are based solely on the amounts that have accumulated in	2137
the account. The plans may include options under which a member	2138
participating in a plan may receive definitely determinable	2139
benefits.	2140

Each plan established under this section shall meet the	2141
requirements of sections 145.81 to 145.98 of the Revised Code and	2142
any rules adopted in accordance with section 145.80 of the Revised	2143
Code. It may include life insurance, annuities, variable	2144
annuities, regulated investment trusts, pooled investment funds,	2145
or other forms of investment. Each plan may also permit a	2146
participant to transfer participation to another plan created	2147
under this chapter. Transfers must be made in accordance with	2148
section 145.814 of the Revised Code.	2149

The board may administer the plans, enter into contracts with	2150
other entities to administer the plans, or both.	2151

Sec. 145.811.  Each PERS defined contribution plan	2152
established under section 145.81 of the Revised Code shall qualify	2153
as a governmental plan under section 414(d) of the "Internal	2154
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 414(d), as	2155
amended, and meet the requirements of section 401(a), of the	2156
"Internal Revenue Code of 1986," 26 U.S.C.A. 401(a), as amended,	2157
applicable to governmental plans.	2158

Sec. 145.812.  Each PERS defined contribution plan	2159
established under section 145.81 of the Revised Code shall meet	2160
the requirements necessary to qualify as a retirement system	2161
maintained by a state or local government entity under section	2162
3121(b)(7)(F) of the "Internal Revenue Code of 1986," 100 Stat.	2163
2085, 26 U.S.C.A. 3121(b)(7)(F), as amended. Each participant in a	2164
plan shall qualify as a member of that system.	2165

Sec. 145.813.  Each PERS defined contribution plan	2166
established under section 145.81 of the Revised Code shall require	2167
the public employees retirement board, or the entity administering	2168
the plan pursuant to a contract with the board, to cause an	2169
individual account to be maintained for each member participating	2170
in the plan. A plan may include deposits to the defined	2171
contribution fundAmounts to be credited to an individual account	2172
may be deposited into any of the funds created under section	2173
145.23 of the Revised Code or deposits under division (C) of that	2174
section to the employees' savings fundmay be transferred to the	2175
entity administering the plan for deposit into the member's	2176
individual account.	2177

Sec. 145.814. (A) As used in this section:

2178

(1) "Additional liability" means an amount that, when added	2179
to the amount on deposit, will provide the remaining portion of	2180
the pension reserve for the period of service that corresponds to	2181
the contributions made by or on behalf of a member.	2182

(2) "Amount on deposit" means the sum of a member's employee	2183
and employer contributions and, if applicable, any earnings or	2184
losses on those contributions.	2185

(3) "Eligible member" means a member who was eligible to make	2186
an election under section 145.19 or 145.191 of the Revised Code,	2187
regardless of whether the member elected to participate in a PERS	2188
defined contribution plan.	2189

(B) If permitted to do so by the plan documents for a PERS	2190
defined contribution plan or rules governing the PERS defined	2191
benefit plan, an eligible member may elect, at intervals specified	2192
by the plan document or rules, to participate in a different	2193
defined contribution plan or in the PERS defined benefit plan. The	2194
election is subject to this section and rules adopted by the	2195
public employees retirement board under sections 145.09 and 145.80	2196
of the Revised Code. An election to participate in a different	2197
plan shall be made in writing on a form provided by the public	2198
employees retirement system and filed with the system. The	2199
election shall take effect on the first day of the month following	2200
the date the election is filed and, except as provided in the plan	2201
documents or rules governing the PERS defined benefit plan, is	2202
irrevocable on receipt by the system.	2203

(C)(1) Except as provided in division (C)(2) of this	2204
section, an election to participate in a different plan shall	2205
apply only to employee and employer contributions made and, if	2206
applicable, service credit earned after the effective date of the	2207
election.	2208

(2) An eligible member may elect to have the member's amount	2209
on deposit and, if applicable, service credit earned prior to the	2210
effective date of the election deposited and credited in	2211
accordance with the member's new plan if one of the following	2212
applies:	2213

(a) The member, by an election under this section, will	2214
cease participation in a PERS defined contribution plan that does	2215
not include definitely determinable benefits.	2216

(b) The member, by an election under division (A) of this	2217
section, will begin participating in the PERS defined benefit	2218
plan.	2219

(3) If a member described in division (C)(2) of this	2220
section makes the election described in that division, the	2221
board's actuary shall determine the additional liability to the	2222
system, if any. If the actuary determines that there is an	2223
additional liability, the member shall elect one of the following:	2224

(a) To receive the total amount of service credit that the	2225
member would have received had the member been participating in	2226
the new plan, pay to the system an amount equal to the additional	2227
liability;	2228

(b) Receive an amount of service credit that corresponds to	2229
the amount on deposit.	2230

For each member who makes the election described in division	2231
(C)(2) of this section, the system shall deposit and credit to the	2232
new plan the amount on deposit and, if applicable, the amount paid	2233
by the member.	2234

Sec. 145.82.  (A) Except as provided in divisiondivisions	2235
(B) and (C) of this section, sections 145.201 to 145.70 of the	2236
Revised Code do not apply to a PERS defined contribution plan	2237
established under section 145.81 of the Revised Code, except that	2238
a PERS defined contribution plan may incorporate provisions of	2239
those sections as specified in the plan document.	2240

(B) The following sections of Chapter 145. of the Revised	2241
Code apply to a PERS defined contribution plan established under	2242
section 145.81 of the Revised Code: 145.22, 145.221, 145.23,	2243
145.25, 145.26, 145.27, 145.296, 145.38, 145.382, 145.383,	2244
145.384, 145.391, 145.47, 145.471, 145.48, 145.483, 145.49,	2245
145.51, 145.54, 145.55, 145.56, 145.561, 145.563, 145.57, 145.571,	2246
145.69, and 145.70 of the Revised Code.	2247

(C) A PERS defined contribution plan that includes definitely	2248
determinable benefits may incorporate by reference all or part of	2249
sections 145.201 to 145.79 of the Revised Code to allow a member	2250
participating in the plan to purchase service credit or to be	2251
eligible for any of the following:	2252

(1) Retirement, disability, survivor, or death benefits;

2253

(2) Health or long-term care insurance or any other type of	2254
health care benefit;	2255

(3) Additional increases under section 145.323 of the	2256
Revised Code;	2257

(4) A refund of contributions made by or on behalf of a	2258
member.	2259

With respect to the benefits described in division (C)(1) of	2260
this section, the public employees retirement board may establish	2261
eligibility requirements and benefit formulas or amounts that	2262
differ from those of members participating in the PERS defined	2263
benefit plan. With respect to the purchase of service credit by a	2264
member participating in a PERS defined contribution plan, the	2265
board may reduce the cost of the service credit to reflect the	2266
different benefit formula established for the member.	2267

Sec. 145.83. A PERS defined contribution plan may include a	2268
program under which a participating member is required to	2269
accumulate a portion of the amount contributed under section	2270
145.86 of the Revised Code for the purpose of providing funds to	2271
the member for the payment of health, medical, hospital, surgical,	2272
dental, or vision care expenses, including insurance premiums,	2273
deductible amounts, or copayments. The program may be a voluntary	2274
employees' beneficiary association, as described in section	2275
501(c)(9) of the "Internal Revenue Code of 1986," 100 Stat. 2085,	2276
26 U.S.C.A. 501(c)(9), as amended; a medical savings account; or a	2277
similar type of program under which an individual may accumulate	2278
funds for the purpose of paying such expenses. To implement the	2279
program, the public employees retirement board may enter into	2280
agreements with insurance companies or other entities authorized	2281
to conduct business in this state.	2282

If a PERS defined contribution plan includes a program	2283
described in this section, the board shall adopt rules to	2284
establish and administer the program. The rules shall specify the	2285
length of time during which the member will vest in amounts	2286
accumulated on the member's behalf and may provide for a minimum	2287
annual distribution from the accumulated amount after the member	2288
terminates employment in positions subject to this chapter.	2289

Sec. 145.85.  Each member participating in a PERS defined	2290
contribution plan established under section 145.81 of the Revised	2291
Code shall contribute a per cent of the member's earnable salary	2292
to the public employees retirement system as required in section	2293
145.47 of the Revised Code. Contributions made under this section	2294
shall not exceed the limits established by section 415 of the	2295
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	2296
as amended.	2297

Sec. 145.86.  For each member participating in a PERS defined	2298
contribution plan established under section 145.81 of the Revised	2299
Code, the employer shall contribute a per cent of the member's	2300
earnable salary to the public employees retirement system as	2301
required in section 145.48 of the Revised Code, less the	2302
percentage required under section 145.87 of the Revised Code.	2303

Sec. 145.87.  For each member participating in a PERS defined	2304
contribution plan established under section 145.81 of the Revised	2305
Code, the public employees retirement system shall transfer to the	2306
employers' accumulation fund a portion of the employer	2307
contribution required under section 145.48 of the Revised Code.	2308
The portion shall equal the percentage of earnable salary of	2309
members for whom the contributions are being made that is	2310
determined by an actuary appointed by the public employees	2311
retirement board to be necessary to mitigate any negative	2312
financial impact on the system of members' participation in a	2313
plan.	2314

The board shall have prepared annually an actuarial study to	2315
determine whether the percentage transferred under this section	2316
should be changed to reflect a change in the level of negative	2317
financial impact resulting from members' participation in a plan.	2318
The percentage transferred shall be increased or decreased to	2319
reflect the amount needed to mitigate the negative financial	2320
impact, if any, on the system, as determined by the study. A	2321
change shall take effect on the first day of the year following	2322
the date the conclusions of the study are reported to the board.	2323

The system shall make the transfer required under this	2324
section until the unfunded actuarial accrued liability for all	2325
benefits, except health care benefits provided under section	2326
145.325 or 145.58 of the Revised Code and benefit increases to	2327
members and former members participating in the PERS defined	2328
benefit plan described in sections 145.201 to 145.70 of the	2329
Revised Code granted after the effective date of this section	2330
September21, 2000, is fully amortized, as determined by the	2331
annual actuarial valuation prepared under section 145.22 of the	2332
Revised Code.	2333

Sec. 145.88.  Amounts contributed under sections 145.85 and	2334
145.86 of the Revised Code, and any earnings on those amounts,	2335
shall be deposited and credited in accordance with the PERS	2336
defined contribution plan established under section 145.81 of the	2337
Revised Code that is selected by the member. The plan may include	2338
provisions authorizing the public employees retirement system to	2339
do either of the following:	2340

(A) Withhold from the amounts contributed under section	2341
145.85 of the Revised Code a percentage of earnable salary that is	2342
determined by an actuary appointed by the public employees	2343
retirement board to be necessary to administer the plan;	2344

(B) Withhold from the amounts contributed under section	2345
145.86 of the Revised Code a percentage of earnable salary for the	2346
purpose of funding health care insurance coverage or any other	2347
type of health care benefit for a member participating in the	2348
plan.	2349

Sec. 145.91.  The right of each member participating in a	2350
PERS defined contribution plan established under section 145.81 of	2351
the Revised Code to a retirement, disability, survivor, or death	2352
benefit, to health or long-term care insurance or any other type	2353
of health care benefit, or to a withdrawal of any amounts that	2354
have accumulated on the member's behalf shall be governed	2355
exclusively by the plan selected by the member.	2356

Sec. 145.92.  If a member participating in a PERS defined	2357
contribution plan established under section 145.81 of the Revised	2358
Code is married at the time benefits under the plan are to	2359
commence, before making any payment the public employees	2360
retirement system, or the entity administering the plan pursuant	2361
to a contract with the public employees retirement board, shall	2362
obtain the consent of the member's spouse to the form of payment	2363
selected by the memberunless the spouse consents to another plan	2364
of payment, the member's retirement allowance under the plan shall	2365
be paid in a lesser amount payable for life and one-half of the	2366
allowance continuing after death to the surviving spouse for the	2367
life of the spouse.	2368

A plan established under section 145.81 of the Revised Code	2369
shall include requirements for consent under this section that are	2370
the same as the requirements specified in section 417(a)(2) of the	2371
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	2372
417(a)(2), as amended.Consent is valid only if it is evidenced by	2373
a written document signed by the member and the signature is	2374
witnessed by a notary public. A plan may waive the requirement of	2375
consent if the spouse is incapacitated or cannot be located or for	2376
any other reason specified by the plan or in the regulations	2377
adopted under that sectionrules adopted by the public employees	2378
retirement board.	2379

Consent or waiver is effective only with regard to the spouse	2380
who is the subject of the consent or waiver.	2381

Sec. 145.95.  Subject to sections 145.38, 145.56, and 145.57	2382
of the Revised Code, the right of a member participating in a PERS	2383
defined contribution plan established under section 145.81 of the	2384
Revised Code to any payment or benefit accruing from contributions	2385
made by or on behalf of the member under sections 145.85 and	2386
145.86 of the Revised Code shall vest in accordance with this	2387
section.	2388

A member's right to any payment or benefit that is based on	2389
the member's contributions is nonforfeitable.	2390

A member's right to any payment or benefit that is based on	2391
contributions by the member's employer is nonforfeitable as	2392
specified by the plan selected by the member.	2393

Sec. 145.97.  Each PERS defined contribution plan established	2394
under section 145.81 of the Revised Code shall permit a member	2395
participating in the plan to do all of the following:	2396

(A) Maintain on deposit with the public employees retirement	2397
system, or the entity administering the plan pursuant to a	2398
contract with the public employees retirement board, any amounts	2399
that have accumulated on behalf of the member;	2400

(B) If the member has withdrawn the amounts described in	2401
division (A) of this section, redeposit withreturns to employment	2402
covered under this chapter, and is participating in a plan that	2403
includes definitely determinable benefits, pay to the system or	2404
the entity administering the plan the amounts withdrawn in	2405
accordance with section 145.31 of the Revised Code;	2406

(C) Make additional deposits as permitted by the "Internal	2407
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2408

Sec. 742.14.  (A) The board of trustees of the Ohio police	2409
and fire pension fund shall have prepared annually by or under the	2410
supervision of an actuary an actuarial valuation of the pension	2411
assets, liabilities, and funding requirements of the Ohio police	2412
and fire pension fund as established pursuant to sections 742.01	2413
to 742.61 of the Revised Code. The actuary shall complete the	2414
valuation in accordance with actuarial standards of practice	2415
promulgated by the actuarial standards board of the American	2416
academy of actuaries and prepare a report of the valuation. The	2417
report shall include all of the following:	2418

(1) A summary of the benefit provisions evaluated;

2419

(2) A summary of the census data and financial information	2420
used in the valuation;	2421

(3) A description of the actuarial assumptions, actuarial	2422
cost method, and asset valuation method used in the valuation,	2423
including a statement of the assumed rate of payroll growth and	2424
assumed rate of growth or decline in the number of members of the	2425
fund contributing to the pension fund;	2426

(4) A summary of findings that includes a statement of the	2427
actuarial accrued pension liabilities and unfunded actuarial	2428
accrued pension liabilities;	2429

(5) A schedule showing the effect of any changes in the	2430
benefit provisions, actuarial assumptions, or cost methods since	2431
the last annual actuarial valuation;	2432

(6) A statement of whether contributions to the pension fund	2433
are expected to be sufficient to satisfy the funding objectives	2434
established by the board.	2435

The board shall submit the report to the Ohio retirement	2436
study council and the standing committees of the house of	2437
representatives and the senate with primary responsibility for	2438
retirement legislation not later than the first day of November	2439
following the year for which the valuation was made.	2440

(B) The board shall annually thereafter have prepared by an	2441
actuary a report showing the adequacy of the rate of the police	2442
officer employers' contribution provided for by section 742.33 of	2443
the Revised Code, and the adequacy of the rate of the firefighter	2444
employers' contribution provided for by section 742.34 of the	2445
Revised Code.	2446

(C) At such times as the board determines, and at least once	2447
in each quinquennial period, the board shall have prepared by or	2448
under the supervision of an actuary an actuarial investigation of	2449
the mortality, service, and other experience of the members of the	2450
fund and of other system retirants, as defined in section 742.26	2451
of the Revised Code, who are members of a police department or a	2452
fire department to update the actuarial assumptions used in the	2453
actuarial valuation required by division (A) of this section. The	2454
actuary shall prepare a report of the actuarial investigation. The	2455
report shall be prepared and any recommended changes in actuarial	2456
assumptions shall be made in accordance with the actuarial	2457
standards of practice promulgated by the actuarial standards board	2458
of the American academy of actuaries. The report shall include	2459
all of the following:	2460

(1) A summary of relevant decrement and economic assumption	2461
experience observed over the period of the investigation;	2462

(2) Recommended changes in actuarial assumptions to be used	2463
in subsequent actuarial valuations required by division (A) of	2464
this section;	2465

(3) A measurement of the financial effect of the recommended	2466
changes in actuarial assumptions;	2467

(4) If the investigation required by this division includes	2468
the investigation required by division (F) of this section, a	2469
report of the result of that investigation.	2470

The board shall submit the report to the Ohio retirement	2471
study council and the standing committees of the house of	2472
representatives and the senate with primary responsibility for	2473
retirement legislation not later than the first day of November	2474
following the last fiscal year of the period the report covers.	2475

(D) The board shall have prepared by or under the	2476
supervision of an actuary an actuarial analysis of any introduced	2477
legislation expected to have a measurable financial impact on the	2478
pension fund. The actuarial analysis shall be completed in	2479
accordance with the actuarial standards of practice promulgated by	2480
the actuarial standards board of the American academy of	2481
actuaries. The actuary shall prepare a report of the actuarial	2482
analysis, which shall include all of the following:	2483

(1) A summary of the statutory changes that are being	2484
evaluated;	2485

(2) A description of or reference to the actuarial	2486
assumptions and actuarial cost method used in the report;	2487

(3) A description of the participant group or groups	2488
included in the report;	2489

(4) A statement of the financial impact of the legislation,	2490
including the resulting increase, if any, in the employer normal	2491
cost percentage; the increase, if any, in actuarial accrued	2492
liabilities; and the per cent of payroll that would be required to	2493
amortize the increase in actuarial accrued liabilities as a level	2494
per cent of covered payroll for all active members of the fund	2495
over a period not to exceed thirty years;	2496

(5) A statement of whether the scheduled contributions to	2497
the system after the proposed change is enacted are expected to be	2498
sufficient to satisfy the funding objectives established by the	2499
board.	2500

Not later than sixty days from the date of introduction of	2501
the legislation, the board shall submit a copy of the actuarial	2502
analysis to the legislative service commission, the standing	2503
committees of the house of representatives and the senate with	2504
primary responsibility for retirement legislation, and the Ohio	2505
retirement study council.	2506

(E) The board shall have prepared annually a report giving a	2507
full accounting of the revenues and costs relating to the	2508
provision of benefits under section 742.45 of the Revised Code.	2509
The report shall be made as of December 31, 1997, and the	2510
thirty-first day of December of each year thereafter. The report	2511
shall include the following:	2512

(1) A description of the statutory authority for the	2513
benefits provided;	2514

(2) A summary of the benefits;

2515

(3) A summary of the eligibility requirements for the	2516
benefits;	2517

(4) A statement of the number of participants eligible for	2518
the benefits;	2519

(5) A description of the accounting, asset valuation, and	2520
funding method used to provide the benefits;	2521

(6) A statement of the net assets available for the	2522
provision of the benefits as of the last day of the fiscal year;	2523

(7) A statement of any changes in the net assets available	2524
for the provision of benefits, including participant and employer	2525
contributions, net investment income, administrative expenses, and	2526
benefits provided to participants, as of the last day of the	2527
fiscal year;	2528

(8) For the last six consecutive fiscal years, a schedule of	2529
the net assets available for the benefits, the annual cost of	2530
benefits, administrative expenses incurred, and annual employer	2531
contributions allocated for the provision of benefits;	2532

(9) A description of any significant changes that affect the	2533
comparability of the report required under this division;	2534

(10) A statement of the amount paid under division (C)(B) of	2535
section 742.45 of the Revised Code.	2536

The board shall submit the report to the Ohio retirement	2537
study council and the standing committees of the house of	2538
representatives and the senate with primary responsibility for	2539
retirement legislation not later than the thirtieth day of June	2540
following the year for which the report was made.	2541

(F) At least once in each quinquennial period, the board	2542
shall have prepared by or under the supervision of an actuary an	2543
actuarial investigation of the deferred retirement option plan	2544
established under section 742.43 of the Revised Code. The	2545
investigation shall include an examination of the financial	2546
impact, if any, on the fund of offering the plan to members.	2547

The actuary shall prepare a report of the actuarial	2548
investigation. The report shall include a determination of	2549
whether the plan, as established or modified, has a negative	2550
financial impact on the fund and, if so, recommendations on how to	2551
modify the plan to eliminate the negative financial impact. If	2552
the actuarial report indicates that the plan has a negative	2553
financial impact on the fund, the board may modify the plan or	2554
cease to allow members who have not already done so to elect to	2555
participate in the plan. The firefighter and police officers	2556
employers' contributions shall not be increased to offset any	2557
negative financial impact of the plan.	2558

If the board ceases to allow members to elect to participate	2559
in the plan, the rights and obligations of members who have	2560
already elected to participate shall not be altered.	2561

The board may include the actuarial investigation required	2562
under this division as part of the actuarial investigation	2563
required under division (C) of this section. If the report of the	2564
actuarial investigation required by this division is not included	2565
in the report required by division (C) of this section, the board	2566
shall submit the report required by this division to the Ohio	2567
retirement study council and the standing committees of the house	2568
of representatives and the senate with primary responsibility for	2569
retirement legislation not later than the first day of November	2570
following the last fiscal year of the period the report covers.	2571

Sec. 742.37.  The board of trustees of the Ohio police and	2572
fire pension fund shall adopt rules for the management of the fund	2573
and for the disbursement of benefits and pensions as set forth in	2574
this section and section 742.39 of the Revised Code. Any payment	2575
of a benefit or pension under this section is subject to the	2576
provisions of section 742.461 of the Revised Code. Notwithstanding	2577
any other provision of this section, no pension or benefit paid or	2578
determined under division (B) or (C) of this section or section	2579
742.39 of the Revised Code shall exceed the limit established by	2580
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	2581
2085, 26 U.S.C.A. 415, as amended.	2582

(A) Persons who were receiving benefit or pension payments	2583
from a police relief and pension fund established under former	2584
section 741.32 of the Revised Code, or from a firemen's relief and	2585
pension fund established under former section 521.02 or 741.02 of	2586
the Revised Code, at the time the assets of the fund were	2587
transferred to the Ohio police and fire pension fund, known at	2588
that time as the police and firemen's disability and pension fund,	2589
shall receive benefit and pension payments from the Ohio police	2590
and fire pension fund in the same amount and subject to the same	2591
conditions as such payments were being made from the former fund	2592
on the date of the transfer.	2593

(B) A member of the fund who, pursuant to law, elected to	2594
receive benefits and pensions from a police relief and pension	2595
fund established under former section 741.32 of the Revised Code,	2596
or from a firemen's relief and pension fund established under	2597
former section 741.02 of the Revised Code, in accordance with the	2598
rules of the fund governing the granting of benefits or pensions	2599
therefrom in force on April 1, 1947, shall receive benefits and	2600
pensions from the Ohio police and fire pension fund in accordance	2601
with such rules; provided, that any member of the fund who is not	2602
receiving a benefit or pension from the fund on August 12, 1975,	2603
may, upon application for a benefit or pension to be received on	2604
or after August 12, 1975, elect to receive a benefit or pension in	2605
accordance with division (C) of this section.	2606

(C) Members of the fund who have not elected to receive	2607
benefits and pensions from a police relief and pension fund or a	2608
firemen's relief and pension fund in accordance with the rules of	2609
the fund in force on April 1, 1947, shall receive pensions and	2610
benefits in accordance with the following provisions:	2611

(1) A member of the fund who has completed twenty-five years	2612
of active service in a police or fire department and has attained	2613
forty-eight years of age may, at the member's election, retire	2614
from the police or fire department. Except while participating in	2615
the deferred retirement option plan established under section	2616
742.43 of the Revised Code, upon notifying the board in writing of	2617
the election, the member shall receive an annual pension, payable	2618
in twelve monthly installments, in an amount equal to a percentage	2619
of the member's average annual salary. The percentage shall be	2620
the sum of two and one-half per cent for each of the first twenty	2621
years the member was in the active service of the department, plus	2622
two per cent for each of the twenty-first to twenty-fifth years	2623
the member was in the active service of the department, plus one	2624
and one-half per cent for each year in excess of twenty-five years	2625
the member was in the active service of the department. The	2626
annual pension shall not exceed seventy-two per cent of the	2627
member's average annual salary.	2628

A member who completed twenty-five years of active service,	2629
has resigned or been discharged, and has left the sum deducted	2630
from the member's salary on deposit in the pension fund shall,	2631
upon attaining forty-eight years of age, be entitled to receive a	2632
normal service pension benefit computed and paid under division	2633
(C)(1) of this section.	2634

(2) A member of the fund who has served fifteen or more	2635
years as an active member of a police or fire department and who	2636
voluntarily resigns or is discharged from the department for any	2637
reason other than dishonesty, cowardice, intemperate habits, or	2638
conviction of a felony, shall receive an annual pension, payable	2639
in twelve monthly installments, in an amount equal to one and	2640
one-half per cent of the member's average annual salary multiplied	2641
by the number of full years the member was in the active service	2642
of the department. The pension payments shall not commence until	2643
the member has attained the age of forty-eight years and until	2644
twenty-five years have elapsed from the date on which the member	2645
became a full-time regular police officer or firefighter in the	2646
department.	2647

(3) A member of the fund who has completed fifteen or more	2648
years of active service in a police or fire department and who has	2649
attained sixty-two years of age, may retire from the department	2650
and, upon notifying the board in writing of the election to	2651
retire, shall receive an annual pension, payable in twelve monthly	2652
installments, in an amount equal to a percentage of the member's	2653
average annual salary. The percentage shall be the sum of two and	2654
one-half per cent for each of the first twenty years the member	2655
was in the active service of the department, plus two per cent for	2656
each of the twenty-first to twenty-fifth years the member was in	2657
the active service of the department, plus one and one-half per	2658
cent for each year in excess of twenty-five years the member was	2659
in the active service of the department. The annual pension shall	2660
not exceed seventy-two per cent of the member's average annual	2661
salary.	2662

(4) With the exception of those persons who may make	2663
application for benefits as provided in section 742.26 of the	2664
Revised Code, no person receiving a pension or other benefit under	2665
division (C) of this section on or after July 24, 1986, shall be	2666
entitled to apply for any new, changed, or different benefit.	2667

If a member covered by division (C) of this section or	2668
section 742.38 of the Revised Code dies prior to the time the	2669
member has received a payment and leaves a surviving spouse or	2670
dependent child, the surviving spouse or dependent child shall	2671
receive a pension under division (D) or (E) of this section.	2672

(D)(1) Except as provided in division (D)(2) of this	2673
section, a surviving spouse of a deceased member of the fund or a	2674
surviving spouse described in division (D)(4) of this section	2675
shall receive a monthly pension as follows:	2676

(a) For the period beginning July 1, 1999, and ending June	2677
30, 2000, five hundred fifty dollars;	2678

(b) For the period beginning July 1, 2000, and ending June	2679
30, 2002, five hundred fifty dollars plus an amount determined by	2680
multiplying five hundred fifty dollars by the average percentage	2681
change in the consumer price index, not exceeding three per cent,	2682
as determined by the board under former section 742.3716 of the	2683
Revised Code;	2684

(c) For the period beginning July 1, 2002, and the period	2685
beginning the first day of July of each year thereafter and	2686
continuing for the following twelve months, an amount equal to the	2687
monthly amount paid during the prior twelve-month period plus	2688
sixteen dollars and fifty cents.	2689

(2) A surviving spouse of a deceased member of the fund	2690
shall receive a monthly pension of four hundred ten dollars if the	2691
surviving spouse is eligible for a benefit under division (B) or	2692
(D) of section 742.63 of the Revised Code. If the surviving	2693
spouse ceases to be eligible for a benefit under division (B) or	2694
(D) of section 742.63 of the Revised Code, the pension shall be	2695
increased, effective the first day of the first month following	2696
the day on which the surviving spouse ceases to be eligible for	2697
the benefit, to the amount it would be under division (D)(1) of	2698
this section had the spouse never been eligible for a benefit	2699
under division (B) or (D) of section 742.63 of the Revised Code.	2700

(3) A pension paid under this division shall continue during	2701
the natural life of the surviving spouse. Benefits to a deceased	2702
member's surviving spouse that were terminated under a former	2703
version of this section that required termination due to	2704
remarriage and were not resumed prior to September 16, 1998, shall	2705
resume on the first day of the month immediately following receipt	2706
by the board of an application on a form provided by the board.	2707

(4) A surviving spouse of a deceased member of or contributor	2708
to a fund established under former Chapter 521. or 741. of the	2709
Revised Code whose benefit or pension was terminated or not paid	2710
due to remarriage shall receive a monthly pension under division	2711
(D)(1) of this section.	2712

The pension shall commence on the first day of the month	2713
immediately following receipt by the board of a completed	2714
application on a form provided by the board and evidence	2715
acceptable to the board that at the time of death the deceased	2716
spouse was a member of or contributor to a police or firemen's	2717
relief and pension fund established under former Chapter 521. or	2718
741. of the Revised Code and that the surviving spouse's benefits	2719
were terminated or not granted due to remarriage.	2720

(E)(1) Each surviving child of a deceased member of the	2721
fund shall receive a monthly pension until the child attains the	2722
age of eighteen years, or marries, whichever event occurs first. A	2723
pension under this division, however, shall continue to be payable	2724
to a child under age twenty-two who is a student in and attending	2725
an institution of learning or training pursuant to a program	2726
designed to complete in each school year the equivalent of at	2727
least two-thirds of the full-time curriculum requirements of the	2728
institution, as determined by the board. If any surviving child,	2729
regardless of age at the time of the member's death, because of	2730
physical or mental disability, is totally dependent upon the	2731
deceased member for support at the time of death, the child shall	2732
receive a monthly pension under this division during the child's	2733
natural life or until the child has recovered from the disability.	2734

(2) An eligible surviving child shall receive a monthly	2735
pension as follows:	2736

(a) For the period beginning July 1, 2001, and ending June	2737
30, 2002, a monthly pension of one hundred fifty dollars plus the	2738
cost of living increase provided for in former section 742.3720 of	2739
the Revised Code;	2740

(b) For the period beginning July 1, 2002, and ending June	2741
30, 2003, one hundred sixty-three dollars and fifty cents;	2742

(b)(c) For the period beginning July 1, 2003, and the period	2743
beginning the first day of each July thereafter and continuing for	2744
the following twelve months, an amount equal to the monthly amount	2745
paid during the prior twelve-month period plus four dollars and	2746
fifty cents.	2747

(F)(1) If a deceased member of the fund leaves no surviving	2748
spouse or surviving children, but leaves one or two parents	2749
dependent upon the deceased member for support, each parent shall	2750
be paid a monthly pension. The pensions provided for in this	2751
division shall be paid during the natural life of the surviving	2752
parents, or until dependency ceases, or until remarriage,	2753
whichever event occurs first.	2754

(2) Each eligible surviving parent shall be paid a monthly	2755
pension as follows:	2756

(a) For the period ending June 30, 2002, one hundred six	2757
dollars for each parent or two hundred twelve dollars for a sole	2758
dependent parent;	2759

(b) For the period beginning July 1, 2002, and ending June	2760
30, 2003, one hundred nine dollars for each parent or two hundred	2761
eighteen dollars for a sole dependent parent;	2762

(c) For the period beginning July 1, 2003, and the first day	2763
of each July thereafter and continuing for the following twelve	2764
months, an amount equal to the monthly amount paid during the	2765
prior twelve-month period plus three dollars for each parent or	2766
six dollars for a sole dependent parent.	2767

(G) Subject to the provisions of section 742.461 of the	2768
Revised Code, a member of the fund who voluntarily resigns or is	2769
removed from active service in a police or fire department is	2770
entitled to receive an amount equal to the sums deducted from the	2771
member's salary and credited to the member's account in the fund,	2772
except that a member receiving a disability benefit or service	2773
pension is not entitled to receive any return of contributions to	2774
the fund.	2775

(H) On and after January 1, 1970, all pensions shall be	2776
increased in accordance with the following provisions:	2777

(1) A member of the fund who retired prior to January 1,	2778
1967, has attained age sixty-five on January 1, 1970, and was	2779
receiving a pension on December 31, 1969, pursuant to division (B)	2780
or (C)(1) of this section or former division (C)(2), (3), (4), or	2781
(5) of this section, shall have the pension increased by ten per	2782
cent.	2783

(2) The monthly pension payable to eligible surviving	2784
spouses under division (D) of this section shall be increased by	2785
forty dollars for each surviving spouse receiving a pension on	2786
December 31, 1969.	2787

(3) The monthly pension payable to each eligible child under	2788
division (E) of this section shall be increased by ten dollars for	2789
each child receiving a pension on December 31, 1969.	2790

(4) The monthly pension payable to each eligible dependent	2791
parent under division (F) of this section shall be increased by	2792
thirty dollars for each parent receiving a pension on December 31,	2793
1969.	2794

(5) A member of the fund, including a survivor of a member,	2795
who is receiving a pension in accordance with the rules governing	2796
the granting of pensions and benefits in force on April 1, 1947,	2797
that provide an increase in the original pension from time to time	2798
pursuant to changes in the salaries of active members, shall not	2799
be eligible for the benefits provided in this division.	2800

(I) On and after January 1, 1977, a member of the fund who	2801
was receiving a pension or benefit on December 31, 1973, under	2802
division (A), (B), (C)(1), or former division (C)(2) or (7) of	2803
this section shall have the pension or benefit increased as	2804
follows:	2805

(1) If the member's annual pension or benefit is less than	2806
two thousand seven hundred dollars, it shall be increased to three	2807
thousand dollars.	2808

(2) If the member's annual pension or benefit is two	2809
thousand seven hundred dollars or more, it shall be increased by	2810
three hundred dollars.	2811

The following shall not be eligible to receive increased	2812
pensions or benefits as provided in this division:	2813

(a) A member of the fund who is receiving a pension or	2814
benefit in accordance with the rules in force on April 1, 1947,	2815
governing the granting of pensions and benefits, which provide an	2816
increase in the original pension or benefit from time to time	2817
pursuant to changes in the salaries of active members;	2818

(b) A member of the fund who is receiving a pension or	2819
benefit under division (A) or (B) of this section, based on funded	2820
volunteer or funded part-time service, or off-duty disability, or	2821
partial on-duty disability, or early vested service;	2822

(c) A member of the fund who is receiving a pension under	2823
division (C)(1) of this section, based on funded volunteer or	2824
funded part-time service.	2825

(J) On and after July 1, 1977, a member of the fund who was	2826
receiving an annual pension or benefit on December 31, 1973,	2827
pursuant to division (B) of this section, based upon partial	2828
disability, off-duty disability, or early vested service, or	2829
pursuant to former division (C)(3), (5), or (6) of this section,	2830
shall have such annual pension or benefit increased by three	2831
hundred dollars.	2832

The following are not eligible to receive the increase	2833
provided by this division:	2834

(1) A member of the fund who is receiving a pension or	2835
benefit in accordance with the rules in force on April 1, 1947,	2836
governing the granting of pensions and benefits, which provide an	2837
increase in the original pension or benefit from time to time	2838
pursuant to changes in the salaries of active members;	2839

(2) A member of the fund who is receiving a pension or	2840
benefit under division (B) or (C)(2) of this section or former	2841
division (C)(3), (5), or (6) of this section based on volunteer or	2842
part-time service.	2843

(K)(1) Except as otherwise provided in this division, every	2844
person who on July 24, 1986, is receiving an age and service or	2845
disability pension, allowance, or benefit pursuant to this chapter	2846
in an amount less than thirteen thousand dollars a year that is	2847
based upon an award made effective prior to February 28, 1984,	2848
shall receive an increase of six hundred dollars a year or the	2849
amount necessary to increase the pension or benefit to four	2850
thousand two hundred dollars after all adjustments required by	2851
this section, whichever is greater.	2852

(2) Division (K)(1) of this section does not apply to the	2853
following:	2854

(a) A member of the fund who is receiving a pension or	2855
benefit in accordance with rules in force on April 1, 1947, that	2856
govern the granting of pensions and benefits and that provide an	2857
increase in the original pension or benefit from time to time	2858
pursuant to changes in the salaries of active members;	2859

(b) A member of the fund who is receiving a pension or	2860
benefit based on funded volunteer or funded part-time service.	2861

(L) On and after July 24, 1986:

2862

(1) The pension of each person receiving a pension under	2863
division (D) of this section on July 24, 1986, shall be increased	2864
to three hundred ten dollars per month.	2865

(2) The pension of each person receiving a pension under	2866
division (E) of this section on July 24, 1986, shall be increased	2867
to ninety-three dollars per month.	2868

Sec. 742.372.        Sec. 742.371.  A member of the fund who is in the	2869
active service of a police or fire department and is not receiving	2870
a pension or benefit payment from the Ohio police and fire pension	2871
fund shall, in computing years of active service in such	2872
department under division (C) of section 742.37 or section 742.39	2873
of the Revised Code, be given credit for the time previously	2874
served in the active full-time service of anotheran Ohio police	2875
or fire department, provided both of the following occur:	2876

(A) The member was a member of a police or firemen's relief	2877
and pension fund or the Ohio police and fire pension fund during	2878
the full timeentire period for which such active service credit	2879
is claimed.	2880

(B) The member pays into the Ohio police and fire pension	2881
fund the amount received by the member under division (I) of	2882
former section 521.11, division (I) of former section 741.18,	2883
division (I) of former section 741.49, or division (G) of section	2884
742.37 of the Revised Code, with interest compounded annually	2885
thereon at a rate to be determined by the board of trustees of the	2886
Ohio police and fire pension fund, from the date of such receipt	2887
to the date of such deposit, or there is to the member's credit in	2888
the police officers' contribution fund an amount equal to the sums	2889
contributed by the member to such police or firemen's relief and	2890
pension fund or to the Ohio police and fire pension fund for the	2891
full time for which such active service credit is claimed.	2892

Subject to board rules, a member may choose to purchase in	2893
any one payment only part of the credit that may be purchased	2894
under this section.	2895

At the request of the fund, the employer shall certify to the	2896
board the dates the member was in the active service of the police	2897
or fire department.	2898

Sec. 742.45.  (A) The board of trustees of the Ohio police	2899
and fire pension fund may enter into an agreement with insurance	2900
companies, health insuring corporations, or government agencies	2901
authorized to do business in the state for issuance of a policy or	2902
contract of health, medical, hospital, or surgical benefits, or	2903
any combination thereof, for those individuals receiving service	2904
or disability pensions or survivor benefits subscribing to the	2905
plan. Notwithstanding any other provision of this chapter, the	2906
policy or contract may also include coverage for any eligible	2907
individual's spouse and dependent children and for any of the	2908
eligible individual's sponsored dependents as the board considers	2909
appropriate.	2910

If all or any portion of the policy or contract premium is to	2911
be paid by any individual receiving a service, disability, or	2912
survivor pension or benefit, the individual shall, by written	2913
authorization, instruct the board to deduct from the individual's	2914
benefit the premium agreed to be paid by the individual to the	2915
company, corporation, or agency.	2916

The board may contract for coverage on the basis of part or	2917
all of the cost of the coverage to be paid from appropriate funds	2918
of the Ohio police and fire pension fund. The cost paid from the	2919
funds of the Ohio police and fire pension fund shall be included	2920
in the employer's contribution rates provided by sections 742.33	2921
and 742.34 of the Revised Code.	2922

The board may provide for self-insurance of risk or level of	2923
risk as set forth in the contract with the companies,	2924
corporations, or agencies, and may provide through the	2925
self-insurance method specific benefits as authorized by the rules	2926
of the board.	2927

(B) If the board provides health, medical, hospital, or	2928
surgical benefits through any means other than a health insuring	2929
corporation, it shall offer to each individual eligible for the	2930
benefits the alternative of receiving benefits through enrollment	2931
in a health insuring corporation, if all of the following apply:	2932

(1) The health insuring corporation provides health care	2933
services in the geographical area in which the individual lives;	2934

(2) The eligible individual was receiving health care	2935
benefits through a health or a health insuring corporation before	2936
retirement;	2937

(3) The rate and coverage provided by the health insuring	2938
corporation to eligible individuals is comparable to that	2939
currently provided by the board under division (A) of this	2940
section. If the rate or coverage provided by the health insuring	2941
corporation is not comparable to that currently provided by the	2942
board under division (A) of this section, the board may deduct the	2943
additional cost from the eligible individual's monthly benefit.	2944

The health insuring corporation shall accept as an enrollee	2945
any eligible individual who requests enrollment.	2946

The board shall permit each eligible individual to change	2947
from one plan to another at least once a year at a time determined	2948
by the board.	2949

(C) The board shall, beginning the month following receipt	2950
of satisfactory evidence of the payment for coverage, pay monthly	2951
to each recipient of service, disability, or survivor benefits	2952
under the Ohio police and fire pension fund who is eligible for	2953
medical insurance coverage under part B of "The Social Security	2954
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1395j, as amended,	2955
an amount equal to the basic premiums for such coverage.	2956

(D)(C) The board shall establish by rule requirements for	2957
the coordination of any coverage, payment, or benefit provided	2958
under this section with any similar coverage, payment, or benefit	2959
made available to the same individual by the public employees	2960
retirement system, state teachers retirement system, school	2961
employees retirement system, or state highway patrol retirement	2962
system.	2963

(E)(D) The board shall make all other necessary rules	2964
pursuant to the purpose and intent of this section.	2965

Sec. 3105.80.  As used in this section and sections 3105.81	2966
to 3105.90 of the Revised Code:	2967

(A) "Alternate payee" means a party in an action for	2968
divorce, legal separation, annulment, or dissolution of marriage	2969
who is to receive one or more payments from a benefit or lump sum	2970
payment under an order issued under section 3105.171 or 3105.65 of	2971
the Revised Code that is in compliance with sections 3105.81 to	2972
3105.90 of the Revised Code.	2973

(B) "Benefit" means a periodic payment under a pension,	2974
annuity, allowance, or other type of benefit, other than a	2975
survivor benefit, that has been or may be granted to a participant	2976
under sections 742.01 to 742.61 or Chapter 145., 3307., 3309., or	2977
5505. of the Revised Code or any payment that is to be made under	2978
a contract a participant has entered into for the purposes of an	2979
alternative retirement plan. "Benefit" also includes all amounts	2980
received or to be received under a plan of payment elected under	2981
division (B)(3) of section 145.46, division (B) of section	2982
3307.60, or division (B)(3) of section 3309.46 of the Revised	2983
Code.	2984

(C) "Lump sum payment" means a payment of accumulated	2985
contributions standing to a participant's credit under sections	2986
742.01 to 742.61 or Chapter 145., 3307., 3309., or 5505. of the	2987
Revised Code or pursuant to a contract a participant has entered	2988
into for the purposes of an alternative retirement plan and any	2989
other payment made or that may be made to a participant under	2990
those sections or chapters on withdrawal of a participant's	2991
contributions. "Lump sum payment" includes a lump sum payment	2992
under section 145.384, 742.26, 3307.352, or 3309.344 of the	2993
Revised Code.	2994

(D) "Participant" means a member, contributor, retirant, or	2995
disability benefit recipient who is or will be entitled to a	2996
benefit or lump sum payment under sections 742.01 to 742.61 or	2997
Chapter 145., 3307., 3309., or 5505. of the Revised Code or an	2998
academic or administrative employee who elects to participate in	2999
an alternative retirement plan under Chapter 3305. of the Revised	3000
Code.	3001

(E) "Personal history record" has the same meaning as in	3002
section 145.27, 742.41, 3305.20, 3307.20, 3309.22, and 5505.04 of	3003
the Revised Code.	3004

(F) "Public retirement program" means the public employees	3005
retirement system, Ohio police and fire pension fund, school	3006
employees retirement system, state teachers retirement system,	3007
state highway patrol retirement system, or an entity providing an	3008
alternative retirement plan under Chapter 3305. of the Revised	3009
Code.	3010

Sec. 3307.01.  As used in this chapter:

3011

(A) "Employer" means the board of education, school	3012
district, governing authority of any community school established	3013
under Chapter 3314. of the Revised Code, college, university,	3014
institution, or other agency within the state by which a teacher	3015
is employed and paid.	3016

(B) "Teacher" means all of the following:

3017

(1) Any person paid from public funds and employed in the	3018
public schools of the state under any type of contract described	3019
in section 3319.08 of the Revised Code in a position for which the	3020
person is required to have a license issued pursuant to sections	3021
3319.22 to 3319.31 of the Revised Code;	3022

(2) Any person employed as a teacher by a community school	3023
pursuant to Chapter 3314. of the Revised Code;	3024

(3) Any person holding an internship certificate issued	3025
under section 3319.28 of the Revised Code and employed in a public	3026
school in this state;	3027

(4) Any person having a license issued pursuant to sections	3028
3319.22 to 3319.31 of the Revised Code and employed in a public	3029
school in this state in an educational position, as determined by	3030
the state board of education, under programs provided for by	3031
federal acts or regulations and financed in whole or in part from	3032
federal funds, but for which no licensure requirements for the	3033
position can be made under the provisions of such federal acts or	3034
regulations;	3035

(5) Any other teacher or faculty member employed in any	3036
school, college, university, institution, or other agency wholly	3037
controlled and managed, and supported in whole or in part, by the	3038
state or any political subdivision thereof, including Central	3039
state university, Cleveland state university, the university of	3040
Toledo, and the medical college of Ohio at Toledo;	3041

(6) The educational employees of the department of	3042
education, as determined by the state superintendent of public	3043
instruction.	3044

In all cases of doubt, the state teachers retirement board	3045
shall determine whether any person is a teacher, and its decision	3046
shall be final.	3047

"Teacher" does not include any academic or administrative	3048
employee of a public institution of higher education, as defined	3049
in section 3305.01 of the Revised Code, who participates in an	3050
alternative retirement plan established under Chapter 3305. of the	3051
Revised Code.	3052

(C) "Member" means any person included in the membership of	3053
the state teachers retirement system, which shall consist of all	3054
teachers and contributors as defined in divisions (B) and (D) of	3055
this section and all disability benefit recipients, as defined in	3056
section 3307.50 of the Revised Code. However, for purposes of	3057
this chapter, the following persons shall not be considered	3058
members:	3059

(1) A student, intern, or resident who is not a member while	3060
employed part-time by a school, college, or university at which	3061
the student, intern, or resident is regularly attending classes;	3062

(2) A person denied membership pursuant to section 3307.24	3063
of the Revised Code;	3064

(3) An other system retirant, as defined in section 3307.35	3065
of the Revised Code, or a superannuate;	3066

(4) An individual employed in a program established pursuant	3067
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29	3068
U.S.C.A. 1501.	3069

(D) "Contributor" means any person who has an account in the	3070
teachers' savings fund or defined contribution fund.	3071

(E) "Beneficiary" means any person eligible to receive, or	3072
in receipt of, a retirement allowance or other benefit provided by	3073
this chapter.	3074

(F) "Year" means the year beginning the first day of July	3075
and ending with the thirtieth day of June next following, except	3076
that for the purpose of determining final average salary under the	3077
plan described in sections 3307.50 to 3307.79 of the Revised Code,	3078
"year" may mean the contract year.	3079

(G) "Local district pension system" means any school	3080
teachers pension fund created in any school district of the state	3081
in accordance with the laws of the state prior to September 1,	3082
1920.	3083

(H) "Employer contribution" means the amount paid by an	3084
employer, as determined by the employer rate, including the normal	3085
and deficiency rates, contributions, and funds wherever used in	3086
this chapter.	3087

(I) "Five years of service credit" means employment covered	3088
under this chapter and employment covered under a former	3089
retirement plan operated, recognized, or endorsed by a college,	3090
institute, university, or political subdivision of this state	3091
prior to coverage under this chapter.	3092

(J) "Actuary" means the actuarial consultant to the state	3093
teachers retirement board, who shall be either of the following:	3094

(1) A member of the American academy of actuaries;

3095

(2) A firm, partnership, or corporation of which at least	3096
one person is a member of the American academy of actuaries.	3097

(K) "Fiduciary" means a person who does any of the	3098
following:	3099

(1) Exercises any discretionary authority or control with	3100
respect to the management of the system, or with respect to the	3101
management or disposition of its assets;	3102

(2) Renders investment advice for a fee, direct or indirect,	3103
with respect to money or property of the system;	3104

(3) Has any discretionary authority or responsibility in the	3105
administration of the system.	3106

(L)(1) Except as provided in this division, "compensation"	3107
means all salary, wages, and other earnings paid to a teacher by	3108
reason of the teacher's employment, including compensation paid	3109
pursuant to a supplemental contract. The salary, wages, and other	3110
earnings shall be determined prior to determination of the amount	3111
required to be contributed to the teachers' savings fund or	3112
defined contribution fund under section 3307.26 of the Revised	3113
Code and without regard to whether any of the salary, wages, or	3114
other earnings are treated as deferred income for federal income	3115
tax purposes.	3116

(2) Compensation does not include any of the following:

3117

(a) Payments for accrued but unused sick leave or personal	3118
leave, including payments made under a plan established pursuant	3119
to section 124.39 of the Revised Code or any other plan	3120
established by the employer;	3121

(b) Payments made for accrued but unused vacation leave,	3122
including payments made pursuant to section 124.13 of the Revised	3123
Code or a plan established by the employer;	3124

(c) Payments made for vacation pay covering concurrent	3125
periods for which other salary, compensation, or benefits under	3126
this chapter are paid;	3127

(d) Amounts paid by the employer to provide life insurance,	3128
sickness, accident, endowment, health, medical, hospital, dental,	3129
or surgical coverage, or other insurance for the teacher or the	3130
teacher's family, or amounts paid by the employer to the teacher	3131
in lieu of providing the insurance;	3132

(e) Incidental benefits, including lodging, food, laundry,	3133
parking, or services furnished by the employer, use of the	3134
employer's property or equipment, and reimbursement for	3135
job-related expenses authorized by the employer, including moving	3136
and travel expenses and expenses related to professional	3137
development;	3138

(f) Payments made by the employer in exchange for a member's	3139
waiver of a right to receive any payment, amount, or benefit	3140
described in division (L)(2) of this section;	3141

(g) Payments by the employer for services not actually	3142
rendered;	3143

(h) Any amount paid by the employer as a retroactive	3144
increase in salary, wages, or other earnings, unless the increase	3145
is one of the following:	3146

(i) A retroactive increase paid to a member employed by a	3147
school district board of education in a position that requires a	3148
license designated for teaching and not designated for being an	3149
administrator issued under section 3319.22 of the Revised Code	3150
that is paid in accordance with uniform criteria applicable to all	3151
members employed by the board in positions requiring the licenses;	3152

(ii) A retroactive increase paid to a member employed by a	3153
school district board of education in a position that requires a	3154
license designated for being an administrator issued under section	3155
3319.22 of the Revised Code that is paid in accordance with	3156
uniform criteria applicable to all members employed by the board	3157
in positions requiring the licenses;	3158

(iii) A retroactive increase paid to a member employed by a	3159
school district board of education as a superintendent that is	3160
also paid as described in division (L)(2)(h)(i) of this section;	3161

(iv) A retroactive increase paid to a member employed by an	3162
employer other than a school district board of education in	3163
accordance with uniform criteria applicable to all members	3164
employed by the employer.	3165

(i) Payments made to or on behalf of a teacher that are in	3166
excess of the annual compensation that may be taken into account	3167
by the retirement system under division (a)(17) of section 401 of	3168
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	3169
401(a)(17), as amended. For a teacher who first establishes	3170
membership before July 1, 1996, the annual compensation that may	3171
be taken into account by the retirement system shall be determined	3172
under division (d)(3) of section 13212 of the "Omnibus Budget	3173
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.	3174

(j) Payments made under division (B), (C), or (E) of section	3175
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	3176
No. 3 of the 119th general assembly, Section 3 of Amended	3177
Substitute Senate Bill No. 164 of the 124th general assembly, or	3178
Amended Substitute House Bill No. 405 of the 124th general	3179
assembly;	3180

(k) Anything of value received by the teacher that is based	3181
on or attributable to retirement or an agreement to retire.	3182

(3) The retirement board shall determine by rule both of the	3183
following:	3184

(a) Whether particular forms of earnings are included in any	3185
of the categories enumerated in this division;	3186

(b) Whether any form of earnings not enumerated in this	3187
division is to be included in compensation.	3188

Decisions of the board made under this division shall be	3189
final.	3190

(M) "Superannuate" means both of the following:

3191

(1) A former teacher receiving from the system a retirement	3192
allowance under section 3307.58 or 3307.59 of the Revised Code;	3193

(2) A former teacher receiving anya benefit from the system	3194
under a plan established under section 3307.81 of the Revised	3195
Code, except that "superannuate" does not include a former teacher	3196
who is receiving a benefit based on disability under a plan	3197
established under section 3307.81 of the Revised Code.	3198

For purposes of section 3307.35 of the Revised Code,	3199
"superannuate" also means a former teacher receiving from the	3200
system a combined service retirement benefit paid in accordance	3201
with section 3307.57 of the Revised Code, regardless of which	3202
retirement system is paying the benefit.	3203

Sec. 3307.39.  (A) The state teachers retirement board may	3204
enter into an agreement with insurance companies, health insuring	3205
corporations, or government agencies authorized to do business in	3206
the state for issuance of a policy or contract of health, medical,	3207
hospital, or surgical benefits, or any combination thereof, for	3208
those individuals receiving, under the plan described in sections	3209
3307.50 to 3307.79 of the Revised Code, service retirement or a	3210
disability or survivor benefit who subscribe to the plan.	3211
Notwithstanding any other provision of this chapter, the policy or	3212
contract may also include coverage for any eligible individual's	3213
spouse and dependent children and for any of the individual's	3214
sponsored dependents as the board considers appropriate. If all	3215
or any portion of the policy or contract premium is to be paid by	3216
any individual receiving service retirement or a disability or	3217
survivor benefit, the individual shall, by written authorization,	3218
instruct the board to deduct the premium agreed to be paid by the	3219
individual to the companies, corporations, or agencies.	3220

The board may contract for coverage on the basis of part or	3221
all of the cost of the coverage to be paid from appropriate funds	3222
of the state teachers retirement system. The cost paid from the	3223
funds of the system shall be included in the employer's	3224
contribution rate provided by section 3307.28 of the Revised Code.	3225

The board may enter into an agreement under this division for	3226
coverage of recipients of benefits under a plan established under	3227
section 3307.81 of the Revised Code if the plan selected includes	3228
health, medical, hospital, or surgical benefits, or any	3229
combination thereof. The board may contract for coverage on the	3230
basis that the cost of the coverage will be paid by the recipient	3231
or by the plan to which the recipient contributed under this	3232
chapter. The board may offer to recipients plans that provide for	3233
different levels of coverage or for prepayment of the cost of	3234
coverage.	3235

The board may provide for self-insurance of risk or level of	3236
risk as set forth in the contract with the companies,	3237
corporations, or agencies, and may provide through the	3238
self-insurance method specific benefits as authorized by the rules	3239
of the board.	3240

(B) If the board provides health, medical, hospital, or	3241
surgical benefits through any means other than a health insuring	3242
corporation, it shall offer to each individual eligible for the	3243
benefits the alternative of receiving benefits through enrollment	3244
in a health insuring corporation, if all of the following apply:	3245

(1) The health insuring corporation provides health care	3246
services in the geographical area in which the individual lives;	3247

(2) The eligible individual was receiving health care	3248
benefits through a health maintenance organization or a health	3249
insuring corporation before retirement;	3250

(3) The rate and coverage provided by the health insuring	3251
corporation to eligible individuals is comparable to that	3252
currently provided by the board under division (A) of this	3253
section. If the rate or coverage provided by the health insuring	3254
corporation is not comparable to that currently provided by the	3255
board under division (A) of this section, the board may deduct the	3256
additional cost from the eligible individual's monthly benefit.	3257

The health insuring corporation shall accept as an enrollee	3258
any eligible individual who requests enrollment.	3259

The board shall permit each eligible individual to change	3260
from one plan to another at least once a year at a time determined	3261
by the board.	3262

(C) The board shall make a monthly payment to each recipient	3263
of service retirement, or a disability or survivor benefit under	3264
the plan described in sections 3307.50 to 3307.79 of the Revised	3265
Code who is eligible for insurance coverage under part B of "The	3266
Social Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A.	3267
1395j, as amended, and may make a monthly payment to a recipient	3268
of benefits under a plan established under section 3307.81 of the	3269
Revised Code who is eligible for that insurance coverage if the	3270
monthly payments are funded through the plan selected by the	3271
recipient. The payment shall be the greater of the following:	3272

(1) Twenty-nine dollars and ninety cents;

3273

(2) An amount determined by multiplying the basic premium	3274
for the coverage by a percentage, not exceeding ninety per cent,	3275
determined by multiplying the years of service used in calculating	3276
the service retirement or benefit or, in the case of a recipient	3277
of benefits under a plan established under section 3307.81 of the	3278
Revised Code, the participant's years of service by a percentage	3279
determined by the board not exceeding three per cent.	3280

The board shall make all payments under this division	3281
beginning the month following receipt of satisfactory evidence of	3282
the payment for the coverage.	3283

(D)(C) The board shall establish by rule requirements for	3284
the coordination of any coverage, payment, or benefit provided	3285
under this section or section 3307.61 of the Revised Code with any	3286
similar coverage, payment, or benefit made available to the same	3287
individual by the public employees retirement system, Ohio police	3288
and fire pension fund, school employees retirement system, or	3289
state highway patrol retirement system.	3290

(E)(D) The board shall make all other necessary rules	3291
pursuant to the purpose and intent of this section.	3292

Sec. 3307.51.  (A) The state teachers retirement board shall	3293
have prepared annually by or under the supervision of an actuary	3294
an actuarial valuation of the pension assets, liabilities, and	3295
funding requirements of the plan described in sections 3307.50 to	3296
3307.79 of the Revised Code. The actuary shall complete the	3297
valuation in accordance with actuarial standards of practice	3298
promulgated by the actuarial standards board of the American	3299
academy of actuaries and prepare a report of the valuation. The	3300
report shall include all of the following:	3301

(1) A summary of the benefit provisions evaluated;

3302

(2) A summary of the census data and financial information	3303
used in the valuation;	3304

(3) A description of the actuarial assumptions, actuarial	3305
cost method, and asset valuation method used in the valuation,	3306
including a statement of the assumed rate of payroll growth and	3307
assumed rate of growth or decline in the number of members	3308
contributing to the retirement system;	3309

(4) A summary of findings that includes a statement of the	3310
actuarial accrued pension liabilities and unfunded actuarial	3311
accrued pension liabilities;	3312

(5) A schedule showing the effect of any changes in the	3313
benefit provisions, actuarial assumptions, or cost methods since	3314
the last annual actuarial valuation;	3315

(6) A statement of whether contributions to the retirement	3316
system are expected to be sufficient to satisfy the funding	3317
objectives established by the board.	3318

The board shall submit the report to the Ohio retirement	3319
study council and the standing committees of the house of	3320
representatives and the senate with primary responsibility for	3321
retirement legislation not later than the first day of January	3322
following the year for which the valuation was made.	3323

(B) At such times as the state teachers retirement board	3324
determines, and at least once in each quinquennial period, the	3325
board shall have prepared by or under the supervision of an	3326
actuary an actuarial investigation of the mortality, service, and	3327
other experience of the members, retirants, and beneficiaries of	3328
the system, and other system retirants as defined in section	3329
3307.35 of the Revised Code to update the actuarial assumptions	3330
used in the actuarial valuation required by division (A) of this	3331
section. The actuary shall prepare a report of the actuarial	3332
investigation. The report shall be prepared and any recommended	3333
changes in actuarial assumptions shall be made in accordance with	3334
the actuarial standards of practice promulgated by the actuarial	3335
standards board of the American academy of actuaries. The report	3336
shall include all of the following:	3337

(1) A summary of relevant decrement and economic assumption	3338
experience observed over the period of the investigation;	3339

(2) Recommended changes in actuarial assumptions to be used	3340
in subsequent actuarial valuations required by division (A) of	3341
this section;	3342

(3) A measurement of the financial effect of the recommended	3343
changes in actuarial assumptions.	3344

The board shall submit the report to the Ohio retirement	3345
study council and the standing committees of the house of	3346
representatives and the senate with primary responsibility for	3347
retirement legislation not later than the first day of May	3348
following the last fiscal year of the period the report covers.	3349

(C) The board may at any time request the actuary to make	3350
any other studies or actuarial valuations to determine the	3351
adequacy of the normal and deficiency rates of contribution	3352
provided by section 3307.28 of the Revised Code, and those rates	3353
may be adjusted by the board, as recommended by the actuary,	3354
effective as of the first of any year thereafter.	3355

(D) The board shall have prepared by or under the	3356
supervision of an actuary an actuarial analysis of any introduced	3357
legislation expected to have a measurable financial impact on the	3358
retirement system. The actuarial analysis shall be completed in	3359
accordance with the actuarial standards of practice promulgated by	3360
the actuarial standards board of the American academy of	3361
actuaries. The actuary shall prepare a report of the actuarial	3362
analysis, which shall include all of the following:	3363

(1) A summary of the statutory changes that are being	3364
evaluated;	3365

(2) A description of or reference to the actuarial	3366
assumptions and actuarial cost method used in the report;	3367

(3) A description of the participant group or groups	3368
included in the report;	3369

(4) A statement of the financial impact of the legislation,	3370
including the resulting increase, if any, in the employer normal	3371
cost percentage; the increase, if any, in actuarial accrued	3372
liabilities; and the per cent of payroll that would be required to	3373
amortize the increase in actuarial accrued liabilities as a level	3374
per cent of covered payroll for all active members over a period	3375
not to exceed thirty years;	3376

(5) A statement of whether the scheduled contributions to	3377
the system after the proposed change is enacted are expected to be	3378
sufficient to satisfy the funding objectives established by the	3379
board.	3380

Not later than sixty days from the date of introduction of	3381
the legislation, the board shall submit a copy of the actuarial	3382
analysis to the legislative budget office of the legislative	3383
service commission, the standing committees of the house of	3384
representatives and the senate with primary responsibility for	3385
retirement legislation, and the Ohio retirement study council.	3386

(E) The board shall have prepared annually a report giving a	3387
full accounting of the revenues and costs relating to the	3388
provision of benefits under sections 3307.39 and 3307.61 of the	3389
Revised Code. The report shall be made as of June 30, 1997, and	3390
the thirtieth day of June of each year thereafter. The report	3391
shall include the following:	3392

(1) A description of the statutory authority for the	3393
benefits provided;	3394

(2) A summary of the benefits;

3395

(3) A summary of the eligibility requirements for the	3396
benefits;	3397

(4) A statement of the number of participants eligible for	3398
the benefits;	3399

(5) A description of the accounting, asset valuation, and	3400
funding method used to provide the benefits;	3401

(6) A statement of the net assets available for the	3402
provisions of benefits as of the last day of the fiscal year;	3403

(7) A statement of any changes in the net assets available	3404
for the provision of benefits, including participant and employer	3405
contributions, net investment income, administrative expenses, and	3406
benefits provided to participants, as of the last day of the	3407
fiscal year;	3408

(8) For the last six consecutive fiscal years, a schedule of	3409
the net assets available for the benefits, the annual cost of	3410
benefits, administrative expenses incurred, and annual employer	3411
contributions allocated for the provision of benefits;	3412

(9) A description of any significant changes that affect the	3413
comparability of the report required under this division;	3414

(10) A statement of the amount paid under division (C)(B) of	3415
section 3307.39 of the Revised Code.	3416

The board shall submit the report to the Ohio retirement	3417
study council and the standing committees of the house of	3418
representatives and the senate with primary responsibility for	3419
retirement legislation not later than the thirty-first day of	3420
December following the year for which the report was made.	3421

Sec. 3307.56.  (A)(1) Subject to sections 3307.37 and	3422
3307.561 of the Revised Code and except as provided in division	3423
(B)(2) of this section, a member participating in the plan	3424
described in sections 3307.50 to 3307.79 of the Revised Code who	3425
ceases to be a teacher for any cause other than death, retirement,	3426
receipt of a disability benefit, or current employment in a	3427
position in which the member has elected to participate in an	3428
alternative retirement plan under section 3305.05 of the Revised	3429
Code, upon application, shall be paid the accumulated	3430
contributions standing to the credit of the member's individual	3431
account in the teachers' savings fund plus an amount calculated in	3432
accordance with section 3307.563 of the Revised Code. If the	3433
member or the member's legal representative cannot be found within	3434
ten years after the member ceased making contributions pursuant to	3435
section 3307.26 of the Revised Code, the accumulated contributions	3436
may be transferred to the guarantee fund and thereafter paid to	3437
the member, to the member's beneficiaries, or to the member's	3438
estate, upon proper application.	3439

(2) A member described in division (A)(1) of this section	3440
who is married at the time of application for payment and is	3441
eligible for age and service retirement under section 3307.58 or	3442
3307.59 of the Revised Code shall submit with the application a	3443
written statement by the member's spouse attesting that the spouse	3444
consents to the payment of the member's accumulated contributions.	3445
Consent shall be valid only if it is signed and witnessed by a	3446
notary public. If the statement is not submitted under this	3447
division, the application shall be considered an application for	3448
service retirement and shall be subject to division (F)(G)(1) of	3449
section 3307.60 of the Revised Code.	3450

The state teachers retirement board may waive the requirement	3451
of consent if the spouse is incapacitated or cannot be located, or	3452
for any other reason specified by the board. Consent or waiver is	3453
effective only with regard to the spouse who is the subject of the	3454
consent or waiver.	3455

(B) This division applies to any member who is employed in a	3456
position in which the member has elected under section 3305.05 of	3457
the Revised Code to participate in an alternative retirement plan	3458
and due to the election ceases to be a teacher for the purposes	3459
of that position.	3460

Subject to sections 3307.37 and 3307.561 of the Revised Code,	3461
the state teachers retirement system shall do the following:	3462

(1) On receipt of a certified copy of an election under	3463
section 3305.05 of the Revised Code, pay, in accordance with	3464
section 3305.051 of the Revised Code, the amount described in that	3465
section to the appropriate provider;	3466

(2) If a member has accumulated contributions, in addition	3467
to those subject to division (B)(1) of this section, standing to	3468
the credit of a member's individual account and is not otherwise	3469
in a position in which the member is considered a teacher for the	3470
purposes of that position, pay, to the provider the member	3471
selected pursuant to section 3305.05 of the Revised Code, the	3472
accumulated contributions standing to the credit of the member's	3473
individual account in the teachers' saving fund plus an amount	3474
calculated in accordance with section 3307.80 of the Revised Code.	3475
The payment shall be made on the member's application.	3476

(C) Payment of a member's accumulated contributions under	3477
division (B) of this section cancels the member's total service	3478
credit in the state teachers retirement system. A member whose	3479
accumulated contributions are paid to a provider pursuant to	3480
division (B) of this section is forever barred from claiming or	3481
purchasing service credit under the state teachers retirement	3482
system for the period of employment attributable to those	3483
contributions.	3484

Sec. 3307.561. A(A) Except as provided in division (B) of	3485
this section, a member of the state teachers retirement system	3486
participating in the plan described in sections 3307.50 to 3307.79	3487
of the Revised Code who has ceased to be a teacher, and who is	3488
also a member of either the public employees retirement system or	3489
school employees retirement system, or both, may not withdraw the	3490
member's accumulated contributions unless the.	3491

(B) On application, the state teachers retirement board	3492
shall pay a member described in division (A) of this section the	3493
member's accumulated contributions if either of the following	3494
applies:	3495

(1) The member also withdraws the member's contributions	3496
from the other systems.	3497

(2) The member is a participant in a plan established under	3498
section 145.81 or 3309.81 of the Revised Code and has withdrawn	3499
the member's contributions under plans described in sections	3500
145.201 to 145.79 and 3309.18 to 3309.70 of the Revised Code.	3501

Sec. 3307.563.  For the purposes of this section, "service	3502
credit" includes only service credit obtained pursuant to sections	3503
3307.53, 3307.71, 3307.72, and 3307.77 of the Revised Code.	3504

(A) The state teachers retirement system shall add to a	3505
member's accumulated contributions to be paid under section	3506
3307.56 or 3307.562 of the Revised Code an amount paid from the	3507
employers' trust fund equal to one of the following:	3508

(1) If the member has less than three full years of service	3509
credit, an amount equal to interest on the member's accumulated	3510
contributions, compounded annually, at a rate not greater than	3511
four per cent established by the board;	3512

(2) If the member has three or more full years of service	3513
credit, but less than five full years, an amount equal to interest	3514
on the member's accumulated contributions, compounded annually, at	3515
a rate not greater than six per cent established by the board;	3516

(3) If the member has five or more full years of service	3517
credit, the sum of the following amounts:	3518

(a) An amount equal to interest on the member's accumulated	3519
contributions, compounded annually, at a rate not greater than six	3520
per cent established by the board;	3521

(b) An amount equal to fifty per cent of the sum of the	3522
member's contributions under section 3307.26 and division (C) of	3523
section 3307.77 of the Revised Code plus interest on that amount	3524
at a rate not greater than six per cent established by the board.	3525

Interest for each year included in the calculation under this	3526
section shall be calculated from the first day of the following	3527
year to the last day of the month preceding payment under section	3528
3307.56 or 3307.562 of the Revised Code.	3529

(B) Notwithstanding sections 3307.56 and 3307.562 of the	3530
Revised Code, neither the beneficiaries, survivors, nor estate of	3531
a deceased member who was granted disability benefits prior to	3532
death is eligible for the payment of any amount calculated under	3533
this section.	3534

Sec. 3307.58.  Any member participating in the plan described	3535
in sections 3307.50 to 3307.79 of the Revised Code who has five	3536
years of service credit and has attained age sixty, or who has	3537
twenty-five years of service credit and has attained age	3538
fifty-five, or who has thirty years of service credit shall be	3539
granted service retirement after filing with the state teachers	3540
retirement board a completed application on a form approved by the	3541
board.	3542

(A) Service retirement shall be effective on the first day	3543
of the month next following the later of:	3544

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

3545

(2) The attainment of minimum age or service credit	3546
eligibility for benefits provided under this section.	3547

Except as provided in division (E) of this section, the	3548
service retirement benefit shall be the greater of the benefits	3549
provided in divisions (B) and (D) of this section.	3550

(B) Subject to any adjustment made under division (C) of	3551
this section, the annual single lifetime benefit of a member shall	3552
be the greater of the amounts determined by the member's Ohio	3553
service credit multiplied by one of the following:	3554

(1) Eighty-six dollars;

3555

(2)(a) The sum of the following amounts:

3556

(i) For each of the first thirty years of Ohio service	3557
credit, two and two-tenths per cent of the member's final average	3558
salary or, subject to the limitation described in division	3559
(B)(2)(b) of this section, two and five-tenths per cent of the	3560
member's final average salary if the member has thirty-five or	3561
more years of service credit under section 3307.53, 3307.57,	3562
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or	3563
3307.771 of the Revised Code, division (A)(2) or (B) of former	3564
section 3307.513 of the Revised Code, former section 3307.514 of	3565
the Revised Code, section 3307.72 of the Revised Code earned after	3566
July 1, 1978, or any combination of service credit under those	3567
sections;	3568

(ii) For each year or fraction of a year of Ohio service	3569
credit in excess of thirty years, two and two-tenths per cent of	3570
the member's final average salary or, subject to the limitation	3571
described in division (B)(2)(b) of this section, if the member has	3572
more than thirty years service credit under section 3307.53,	3573
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77,	3574
or 3307.771 of the Revised Code, division (A)(2) or (B) of former	3575
section 3307.513 of the Revised Code, former section 3307.514 of	3576
the Revised Code, section 3307.72 of the Revised Code earned after	3577
July 1, 1978, or any combination of service credit under those	3578
sections, the per cent of final average salary shown in the	3579
following schedule for each corresponding year or fraction of a	3580
year of service credit under those sections that is in excess of	3581
thirty years:	3582

For purposes of this schedule, years of service credit shall be	3592
rounded to the nearest one-hundredth of a year.	3593

(b) For purposes of division (B)(2)(a) of this section, a	3594
percentage of final average salary in excess of two and two-tenths	3595
per cent shall be applied to service credit under section 3307.57	3596
of the Revised Code only if the service credit was established	3597
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3598
3309.021, 3309.022, or 3309.47, or of the Revised Code or restored	3599
under section 145.31 or 3309.26 of the Revised Code.	3600

(C) The annual single lifetime benefit of a member	3601
determined under division (B) of this section shall be adjusted by	3602
the greater per cent shown in the following schedule opposite the	3603
member's attained age or Ohio service credit.	3604

Members shall vest the right to a benefit in accordance with	3618
the following schedule, based on the member's attained age by	3619
September 1, 1976:	3620

The annual single lifetime benefit determined under division	3629
(B) of this section shall not exceed the lesser of one hundred per	3630
cent of the final average salary or the limit established by	3631
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	3632
2085, 26 U.S.C.A. 415, as amended.	3633

(D) The annual single lifetime benefit of a member shall not	3634
exceed the lesser of the sum of the following amounts or the limit	3635
established by section 415 of the "Internal Revenue Code of 1986,"	3636
100 Stat. 2085, 26 U.S.C.A. 415, as amended:	3637

(1) An annuity with a reserve equal to the member's	3638
accumulated contributions;	3639

(2) A pension equal to the amount in division (D)(1) of this	3640
section;	3641

(3) An additional pension of forty dollars annually	3642
multiplied by the number of years of prior and military service	3643
credit, except years of credit purchased under section 3307.751 or	3644
3307.752 of the Revised Code;	3645

(4) An additional basic annual pension of one hundred eighty	3646
dollars, provided the member had ten or more years of Ohio service	3647
credit as of October 1, 1956, except that the additional basic	3648
annual pension shall not exceed the sum of the annual benefits	3649
provided by divisions (D)(1), (2), and (3) of this section.	3650

(E) Benefits determined under this section shall be paid as	3651
provided in section 3307.60 of the Revised Code.	3652

Sec. 3307.60.  (A) Upon application for retirement as	3653
provided in section 3307.58 or 3307.59 of the Revised Code, the	3654
retirant may elect a plan of payment under this division or, on	3655
and after the date specified in division (B) of this section, a	3656
plan of payment under that division. Under this division, the	3657
retirant may elect to receive a single lifetime benefit, or may	3658
elect to receive the actuarial equivalent of the retirant's	3659
benefit in a lesser amount, payable for life, and continuing after	3660
death to a beneficiary under one of the following optional plans:	3661

(1) Option 1. The retirant's lesser benefit shall be paid	3662
for life to the sole beneficiary named at retirement.	3663

(2) Option 2. Some other portion of the retirant's benefit	3664
shall be paid for life to the sole beneficiary named at	3665
retirement. The beneficiary's monthly amount shall not exceed the	3666
monthly amount payable to the retirant during the retirant's	3667
lifetime.	3668

(3) Option 3. The retirant's lesser benefit established as	3669
provided under option 1 or option 2 shall be paid for life to the	3670
sole beneficiary named at retirement, except that in the event of	3671
the death of the sole beneficiary or termination of a marital	3672
relationship between the retirant and the sole beneficiary the	3673
retirant may elect to return to a single lifetime benefit	3674
equivalent as determined by the state teachers retirement board,	3675
if, in the case of termination of a marital relationship, the	3676
election is made with the written consent of the beneficiary or	3677
pursuant to an order of the court with jurisdiction over	3678
termination of the marital relationship.	3679

(4) Option 4. Upon the retirant's death before the	3680
expiration of a certain period from the retirement date and	3681
elected by the retirant, and approved by the board, the retirant's	3682
benefit shall be continued for the remainder of such period to the	3683
beneficiary. Monthly benefits shall not be paid to joint	3684
beneficiaries, but they may receive the present value of any	3685
remaining payments in a lump sum settlement. If all beneficiaries	3686
die before the expiration of the certain period, the present value	3687
of all payments yet remaining in such period shall be paid to the	3688
estate of the beneficiary last receiving.	3689

(5) Option 5. A plan of payment established by the state	3690
teachers retirement board combining any of the features of options	3691
1, 2, and 4.	3692

(B) Beginning on a date selected by the state teachers	3693
retirement board, which shall be not later than July 1, 2004, a	3694
retirant may elect, in lieu of a plan of payment under division	3695
(A) of this section, a plan consisting of both of the following:	3696

(1) A lump sum in an amount the member designates that	3697
constitutes a portion of the member's single lifetime benefit;	3698

(2) Either of the following:

3699

(a) The remainder of the retirant's single lifetime benefit;

3700

(b) The actuarial equivalent of the remainder of the	3701
retirant's benefit in a lesser amount, payable for life, and	3702
continuing after death to a beneficiary under one of the options	3703
described in divisions (A)(1) to (5) of this section.	3704

In the event of the death of the sole beneficiary or	3705
termination of a marital relationship between the retirant and the	3706
sole beneficiary, the retirant may elect to receive the actuarial	3707
equivalent of the remainder of the retirant's single lifetime	3708
benefit except that, in the case of termination of a marital	3709
relationship, the election may be made only with the written	3710
consent of the beneficiary or pursuant to an order of the court	3711
with jurisdiction over termination of the marital relationship.	3712

The amount designated by the member under division (B)(1) of	3713
this section shall be not less than six times and not more than	3714
thirty-six times the monthly amount that would be payable to the	3715
member as a single lifetime benefit and shall not result in a	3716
monthly allowance that is less than fifty per cent of that amount.	3717

(C) Until the first payment is made to a former member under	3718
section 3307.58 or 3307.59 of the Revised Code, the former member	3719
may change the selection of a plan of payment. If death occurs	3720
prior to an election of a plan of payment	3721

(D)(1) If a deceased member was eligible for but had not yet	3722
been awarded a service retirement benefit under section 3307.58 or	3723
3307.59 of the Revised Code at the time of death, option 1 as	3724
provided for in division (A)(1) of this section shall be paid to	3725
the spouse or other sole dependent beneficiary.	3726

(2) Beginning on a date selected by the board, which shall be	3727
not later than July 1, 2004, the spouse or sole beneficiary may	3728
elect, in lieu of option 1, a plan of payment consisting of both	3729
of the following:	3730

(a) A lump sum in an amount the spouse or other sole	3731
dependent beneficiary designates that constitutes a portion of the	3732
retirant's single life annuity;	3733

(b) The actuarial equivalent of the remainder of the	3734
retirant's single life annuity paid in a lesser amount for life to	3735
the spouse or other sole dependent beneficiary.	3736

The amount designated by the spouse or other sole dependent	3737
beneficiary under division (D)(2)(a) of this section shall be not	3738
less than six times and not more than thirty-six times the monthly	3739
amount that would be payable as the retirant's single life annuity	3740
and shall not result in a monthly allowance that is less than	3741
fifty per cent of that monthly amount.	3742

(C)(E) If the total benefit paid under this section is less	3743
than the balance in the teachers' savings fund, the difference	3744
shall be paid to the beneficiary provided under division (D) of	3745
section 3307.562 of the Revised Code.	3746

(D)(F) In the case of a retirant who elected an optional	3747
plan prior to September 15, 1989:	3748

(1) The death of the spouse or other designated beneficiary	3749
following retirement shall, at the election of the retirant,	3750
cancel any optional plan selected at retirement to provide	3751
continuing lifetime benefits to the spouse or other beneficiary	3752
and return the retirant to a single lifetime benefit equivalent as	3753
determined by the board.	3754

(2) A divorce, annulment, or marriage dissolution shall, at	3755
the election of the retirant, cancel any optional plan selected at	3756
retirement to provide continuing lifetime benefits to the spouse	3757
as designated beneficiary and return the retirant to a single	3758
lifetime benefit equivalent as determined by the board if the	3759
election is made with the written consent of the beneficiary or	3760
pursuant to an order of a court of common pleas or the court of	3761
another state with jurisdiction over the termination of the	3762
marriage.	3763

(E)(G) Following marriage or remarriage, a retirant may	3764
elect a new optional plan of payment based on the actuarial	3765
equivalent of the retirant's single lifetime benefit, as	3766
determined by the board, except that if the retirant is receiving	3767
a retirement allowance under an optional plan that provides for	3768
continuation of benefits after death to a former spouse, the	3769
retirant may elect a new optional plan of payment only with the	3770
written consent of the former spouse or pursuant to an order of	3771
the court with jurisdiction over the termination of the marriage.	3772
Such plan shall become effective the first of the month following	3773
an application on a form approved by the board.	3774

(F)(H)(1) Unless one of the following occurs, an application	3775
for service retirement made pursuant to section 3307.58 or 3307.59	3776
of the Revised Code by a married person shall be considered an	3777
election of a benefit under option 2 as provided for in division	3778
(A)(2) of this section under which one-half of the lesser benefit	3779
payable during the life of the retirant will be paid after death	3780
to the retirant's spouse for life as sole beneficiary:	3781

(a) The retirant selects an optional plan under division (A)	3782
of this section providing for payment after death to the	3783
retirant's spouse for life as sole beneficiary of more than	3784
one-half of the lesser benefit payable during the life of the	3785
retirant.	3786

(b) The retirant submits to the retirement board a written	3787
statement signed by the spouse attesting that the spouse consents	3788
to the retirant's election to receive a single lifetime annuity or	3789
a payment under an optional benefit plan under which after the	3790
death of the retirant the surviving spouse will receive less than	3791
one-half of the lesser benefit payable during the life of the	3792
retirant.	3793

(2) An application for retirement shall include an	3794
explanation of all of the following:	3795

(a) That, if the member is married, unless the spouse	3796
consents to another plan of payment, the member's retirement	3797
allowance will be paid under "option 2" as provided for in	3798
division (A)(2) of this section and consist of the actuarial	3799
equivalent of the member's retirement allowance in a lesser amount	3800
payable for life and one-half of the lesser allowance continuing	3801
after death to the surviving spouse for the life of the spouse;	3802

(b) A description of the alternative plans of payment	3803
available with the consent of the spouse;	3804

(c) That the spouse may consent to another plan of payment	3805
and the procedure for giving consent;	3806

(d) That consent is irrevocable once notice of consent is	3807
filed with the board.	3808

Consent shall be valid only if it is signed, in writing, and	3809
witnessed by a notary public.	3810

(3) If the retirant does not select an optional plan of	3811
payment as described in division (F)(H)(1)(a) of this section and	3812
the board does not receive the written statement provided for in	3813
division (F)(H)(1)(b) of this section, it shall determine and pay	3814
the retirement allowance in accordance with this division, except	3815
that the board may provide by rule for waiver by the board of the	3816
statement and payment of the benefits other than in accordance	3817
with this division or payment under section 3307.56 of the Revised	3818
Code if the retirant is unable to obtain the statement due to	3819
absence or incapacity of the spouse or other cause specified by	3820
the board.	3821

(G)(I) For the purpose of determining actuarial equivalence	3822
under this section, on the advice of an actuary employed by the	3823
board, the board shall adopt mortality tables that may take into	3824
consideration the membership experience of the state teachers	3825
retirement system and may also include the membership experience	3826
of the public employees retirement system and the school employees	3827
retirement system.	3828

Sec. 3307.761.  (A) As used in this section and section	3829
3307.765 of the Revised Code:	3830

(1) "Uniform retirement system" or "uniform system" means	3831
the Ohio police and fire pension fund or state highway patrol	3832
retirement system.	3833

(2) "Military service credit" means credit purchased or	3834
obtained under this chapter or Chapter 742. or 5505. of the	3835
Revised Code for service in the armed forces of the United States.	3836

(B) A member of the state teachers retirement system	3837
participating in the plan described in sections 3307.50 to 3307.79	3838
of the Revised Code who has contributions on deposit with a	3839
uniform retirement system shall, in computing years of total	3840
service, be given full credit for service credit earned under	3841
Chapter 742. or 5505. of the Revised Code or for military service	3842
credit if a transfer to the state teachers retirement system is	3843
made under this division. At the request of the member, the	3844
uniform system shall transfer to the state teachers retirement	3845
system, for each year of service, the sum of the following:	3846

(1) An amount equal to the member's accumulated	3847
contributions to the uniform system and any payments by the	3848
member for military service credit;	3849

(2) An amount equal to the lesser of the employer's	3850
contributions to the uniform system or the amount that would have	3851
been contributed by the employer for the service had the member	3852
been a member of the state teachers retirement system at the time	3853
the credit was earned;	3854

(3) Interest, determined as provided in division (F) of this	3855
section, on the amounts specified in divisions (B)(1) and (2) of	3856
this section from the last day of the year for which the service	3857
credit in the uniform system was earned or in which payment was	3858
made for military service credit was purchased or obtained to the	3859
date the transfer is made.	3860

(C) A member participating in the plan described in sections	3861
3307.50 to 3307.79 of the Revised Code who has at least eighteen	3862
monthsone and one-half years of contributing service with the	3863
state teachers retirement system, is a former member of a uniform	3864
retirement system, and has received a refund of contributions to	3865
that uniform system shall, in computing years of total service,	3866
be given full credit for service credit earned under Chapter 742.	3867
or 5505. of the Revised Code or for military service credit if,	3868
for each year of service, the state teachers retirement system	3869
receives the sum of the following:	3870

(1) An amount, which shall be paid by the member, equal to	3871
the amount refunded by the uniform system to the member for that	3872
year for accumulated contributions and payments for military	3873
service credit, with interest at a rate established by the state	3874
teachers retirement board on that amount from the date of the	3875
refund to the date of the payment;	3876

(2) Interest, which shall be transferred by the uniform	3877
system, on the amount refunded to the member that is attributable	3878
to the year of service from the last day of the year for which the	3879
service credit was earned or in which payment was made for	3880
military service credit to the date the refund was made;	3881

(3) An amount, which shall be transferred by the uniform	3882
system, equal to the lesser of the employer's contributions to	3883
the uniform system or the amount that would have been	3884
contributed by the employer for the service had the member been a	3885
member of the state teachers retirement system at the time the	3886
credit was earned, with interest on that amount from the last day	3887
of the year for which the service credit was earned or in which	3888
payment was made for military service to the date of the	3889
transfer.	3890

On receipt of payment from the member, the state teachers	3891
retirement system shall notify the uniform system, which, on	3892
receipt of the notice, shall make the transfer required by this	3893
division. Interest shall be determined as provided in division	3894
(F) of this section.	3895

A member may choose to purchase only part of the credit the	3896
member is eligible to purchase under this division in any one	3897
payment, subject to rules of the state teachers retirement board.	3898

(D) A member is ineligible to obtain credit under this	3899
section for service that is used in the calculation of any	3900
retirement benefit currently being paid or payable in the future	3901
under any other retirement program or for service credit that may	3902
be transferred under section 3307.765 of the Revised Code.	3903

(E) If a member of the state teachers retirement system who	3904
is not a current contributor elects to obtain credit under section	3905
742.21 or 5505.40 of the Revised Code for service for which the	3906
member contributed to the system or purchased for military	3907
service credit, the system shall transfer to the uniform	3908
retirement system, as applicable, the amount specified in division	3909
(D) of section 742.21 or division (B)(2) of section 5505.40 of	3910
the Revised Code.	3911

(F) Interest charged under this section shall be calculated	3912
separately for each year of service credit. Unless otherwise	3913
specified in this section it shall be calculated at the lesser of	3914
the actuarial assumption rate for that year of the state teachers	3915
retirement system or of the uniform retirement system in which	3916
the credit was earned. The interest shall be compounded annually.	3917

(G) The state teachers retirement board shall credit to a	3918
member's account in the teachers' savings fund the amounts	3919
described in divisions (B)(1) and (C)(1) of this section, except	3920
that the interest paid by the member under division (C)(1) of this	3921
section shall be credited to the employers' trust fund. The board	3922
shall credit to the employers' trust fund the amounts described in	3923
divisions (B)(2) and (3) and (C)(2) and (3) of this section.	3924

(H) At the request of the state teachers retirement system,	3925
the Ohio police and fire pension fund or state highway patrol	3926
retirement system shall certify to the state teachers retirement	3927
system a copy of the records of the service and contributions of a	3928
state teachers retirement system member who seeks service credit	3929
under this section.	3930

Sec. 3307.763.  (A) If the conditions described in division	3931
(B) of section 3307.762 of the Revised Code are met, a member of	3932
the state teachers retirement system who is not receiving a	3933
pension or benefit from the state teachers retirement system is	3934
eligible to obtain credit for service as a member of the	3935
Cincinnati retirement system under this section.	3936

(B) A member of the state teachers retirement system	3937
participating in the plan described in sections 3307.50 to 3307.79	3938
of the Revised Code who has contributions on deposit with, but is	3939
no longer contributing to, the Cincinnati retirement system shall,	3940
in computing years of service credit, be given credit for service	3941
credit earned under the Cincinnati retirement system or purchased	3942
or obtained as military service credit if, for each year of	3943
service, the Cincinnati retirement system transfers to the state	3944
teachers retirement system the sum of the following:	3945

(1) The amount contributed by the member, or, in the case of	3946
military service credit, paid by the member, that is attributable	3947
to the year of service;	3948

(2) An amount equal to the lesser of the employer's	3949
contributions to the Cincinnati retirement system or the amount	3950
that would have been contributed by the employer for the service	3951
had the member been a member of the state teachers retirement	3952
system at the time the credit was earned;	3953

(3) Interest on the amounts specified in divisions (B)(1)	3954
and (2) of this section from the last day of the year for which	3955
service credit was earned or in which payment was made for	3956
military service credit to the date the transfer is made.	3957

(C) A member of the state teachers retirement system with at	3958
least eighteen monthsone and one-half years of contributing	3959
service credit with the state teachers retirement system who has	3960
received a refund of the member's contributions to the Cincinnati	3961
retirement system shall, in computing years of service, be given	3962
credit for service credit earned under the Cincinnati retirement	3963
system or purchased or obtained as military service credit if, for	3964
each year of service, the state teachers retirement system	3965
receives the sum of the following:	3966

(1) An amount, paid by the member, equal to the sum of the	3967
following:	3968

(a) The amount refunded by the Cincinnati retirement system	3969
to the member for that year for contributions and payments for	3970
military service credit, with interest at a rate established by	3971
the state teachers retirement board on that amount from the date	3972
of the refund to the date of payment;	3973

(b) The amount of interest, if any, the member received when	3974
the refund was made that is attributable to the year of service.	3975

(2) An amount, transferred by the Cincinnati retirement	3976
system to the state teachers retirement system, equal to the sum	3977
of the following:	3978

(a) Interest on the amount refunded to the member that is	3979
attributable to the year of service from the last day of the year	3980
for which the service credit was earned or in which payment was	3981
made for military service credit to the date the refund was made;	3982

(b) An amount equal to the lesser of the employer's	3983
contributions to the Cincinnati retirement system or the amount	3984
that would have been contributed by the employer for the service	3985
had the member been a member of the state teachers retirement	3986
system at the time the credit was earned, with interest on that	3987
amount from the last day of the year for which the service credit	3988
was earned to the date of the transfer.	3989

(D) The amount transferred under division (C)(2)(a) of this	3990
section shall not include any amount of interest the Cincinnati	3991
retirement system paid to the person when it made the refund.	3992

(E) On receipt of payment from the member under division	3993
(C)(1) of this section, the state teachers retirement system shall	3994
notify the Cincinnati retirement system. On receipt of the	3995
notice, the Cincinnati retirement system shall transfer the amount	3996
described in division (C)(2) of this section.	3997

(F) Interest charged under this section shall be calculated	3998
separately for each year of service credit. Unless otherwise	3999
specified in this section, it shall be calculated at the lesser of	4000
the actuarial assumption rate for that year of the state teachers	4001
retirement system or the Cincinnati retirement system. The	4002
interest shall be compounded annually.	4003

(G) At the request of the state teachers retirement system,	4004
the Cincinnati retirement system shall certify to the state	4005
teachers retirement system a copy of the records of the service	4006
and contributions of a state teachers retirement system member who	4007
seeks service credit under this section.	4008

(H) A member may choose to purchase only part of the credit	4009
the member is eligible to purchase under division (C) of this	4010
section in any one payment, subject to rules of the state teachers	4011
retirement board.	4012

(I) A member is ineligible to obtain credit under this	4013
section for service that is used in the calculation of any	4014
retirement benefit currently being paid or payable in the future.	4015

(J) The state teachers retirement board shall credit to the	4016
member's account in the teachers' savings fund the amounts	4017
described in divisions (B)(1) and (C)(1)(a) of this section,	4018
except that interest paid by the member under division (C)(1)(a)	4019
of this section shall be credited to the employers' trust fund.	4020
The board shall credit to the employers' trust fund the amounts	4021
described in divisions (B)(2), (B)(3), (C)(1)(b), and (C)(2) of	4022
this section.	4023

Sec. 3307.764.  (A) If the conditions described in division	4024
(B) of section 3307.762 of the Revised Code are met and a person	4025
who is a member or former member of the state teachers retirement	4026
system through participation in the plan described in sections	4027
3307.50 to 3307.79 of the Revised Code, but is not a current	4028
contributor and who is not receiving a pension or benefit from the	4029
state teachers retirement system elects to receive credit under	4030
the Cincinnati retirement system for service for which the person	4031
contributed to the state teachers retirement system or purchased	4032
or obtained as military service credit, the state teachers	4033
retirement system shall transfer the amounts specified in division	4034
(B) or (C) of this section to the Cincinnati retirement system.	4035

(B) If the person has contributions on deposit with the	4036
state teachers retirement system, the retirement system shall, for	4037
each year of service credit, transfer to the Cincinnati retirement	4038
system the sum of the following:	4039

(1) An amount equal to the person's contributions to the	4040
state teachers retirement system and payments made by the member	4041
for military service credit;	4042

(2) An amount equal to the lesser of the employer's	4043
contributions to the state teachers retirement system or the	4044
amount that would have been contributed by the employer for the	4045
service had the person been a member of the Cincinnati retirement	4046
system at the time the credit was earned;	4047

(3) Interest on the amounts specified in divisions (B)(1)	4048
and (2) of this section for the period from the last day of the	4049
year for which the service credit was earned or in which payment	4050
was made for military service credit to the date the transfer was	4051
made.	4052

(C)(1) If the person has received a refund of accumulated	4053
contributions to the state teachers retirement system, the state	4054
teachers retirement system shall, for each year of service credit,	4055
transfer to the Cincinnati retirement system the sum of the	4056
following:	4057

(a) Interest on the amount refunded to the former member	4058
that is attributable to the year of service from the last day of	4059
the year for which the service credit was earned or in which	4060
payment was made for military service credit to the date the	4061
refund was made;	4062

(b) An amount equal to the lesser of the employer's	4063
contributions to the state teachers retirement system or the	4064
amount that would have been contributed by the employer for the	4065
service had the person been a member of the Cincinnati retirement	4066
system at the time the credit was earned, with interest on that	4067
amount from the last day of the year for which the service credit	4068
was earned to the date of the transfer.	4069

(2) The amount transferred under division (C)(1) of this	4070
section shall not include any amount added to the member's	4071
accumulated contributions under section 3307.563 of the Revised	4072
Code and paid under section 3307.56 or 3307.562 of the Revised	4073
Code.	4074

(3) On receipt of notice from the Cincinnati retirement	4075
system that the Cincinnati retirement system has received payment	4076
from a person described in division (C)(1) of this section, the	4077
state teachers retirement system shall transfer the amount	4078
described in that division.	4079

(D) Interest charged under this section shall be calculated	4080
separately for each year of service credit. Unless otherwise	4081
specified in this section, it shall be calculated at the lesser of	4082
the actuarial assumption rate for that year of the state teachers	4083
retirement system or the Cincinnati retirement system. The	4084
interest shall be compounded annually.	4085

(E) The transfer of any amount under this section cancels an	4086
equivalent amount of service credit.	4087

(F) At the request of the Cincinnati retirement system, the	4088
state teachers retirement system shall certify to the Cincinnati	4089
retirement system a copy of the records of the service and	4090
contributions of a member or former member of the state teachers	4091
retirement system who elects to receive service credit under the	4092
Cincinnati retirement system.	4093

Sec. 3307.87.  (A)(1) If a member participating in a plan	4094
established under section 3307.81 of the Revised Code is married	4095
at the time any benefits under the plan commence, benefits shall	4096
be paid in accordance with division (A)(2) of this section, unless	4097
the spouse has consented under division (C) of this section to a	4098
different form of payment.	4099

(2) The benefits described in division (A)(1) of this	4100
section shall be paid in the form of an annuity, which shall	4101
consist of the actuarial equivalent of the member's benefits, in	4102
an amount that is payable for the life of the member and one-half	4103
of the amount continuing after the member's death to the spouse	4104
for the life of the spouse.	4105

(B) If a member participating in a plan established under	4106
section 3307.81 of the Revised Code is married at the time of the	4107
member's death, any benefits that are payable to the member shall	4108
be paid to the member's spouse, unless the spouse has consented	4109
under division (C) of this section to the designation of a	4110
different beneficiary.	4111

(C) A plan established under section 3307.81 of the Revised	4112
Code shall include requirements for consent under this section	4113
that are the same as the requirements specified in division (a)(2)	4114
of section 417 of the Internal Revenue Code, 26 U.S.C.A.	4115
417(a)(2), as amended.Consent is valid only if it is evidenced by	4116
a signed statement that is witnessed by a notary public. Each	4117
plan may waive the requirement of consent if the spouse is	4118
incapacitated or cannot be located or for any other reason	4119
specified by the plan or in the regulations adopted under that	4120
sectionrules adopted by the state teachers retirement board.	4121

Consent or waiver is effective only with regard to the spouse	4122
who is the subject of the consent or waiver.	4123

Sec. 3309.21.  (A) The school employees retirement board	4124
shall have prepared annually by or under the supervision of an	4125
actuary an actuarial valuation of the pension assets, liabilities,	4126
and funding requirements of the school employees retirement system	4127
as established pursuant to this chapter. The actuary shall	4128
complete the valuation in accordance with actuarial standards of	4129
practice promulgated by the actuarial standards board of the	4130
American academy of actuaries and prepare a report of the	4131
valuation. The report shall include all of the following:	4132

(1) A summary of the benefit provisions evaluated;

4133

(2) A summary of the census data and financial information	4134
used in the valuation;	4135

(3) A description of the actuarial assumptions, actuarial	4136
cost method, and asset valuation method used in the valuation,	4137
including a statement of the assumed rate of payroll growth and	4138
assumed rate of growth or decline in the number of members	4139
contributing to the retirement system;	4140

(4) A summary of findings that includes a statement of the	4141
actuarial accrued pension liabilities and unfunded actuarial	4142
accrued pension liabilities;	4143

(5) A schedule showing the effect of any changes in the	4144
benefit provisions, actuarial assumptions, or cost methods since	4145
the last annual actuarial valuation;	4146

(6) A statement of whether contributions to the retirement	4147
system are expected to be sufficient to satisfy the funding	4148
objectives established by the board.	4149

The board shall submit the report to the Ohio retirement	4150
study commissioncouncil and the standing committees of the house	4151
of representatives and the senate with primary responsibility for	4152
retirement legislation not later than the first day of May	4153
following the year for which the valuation was made.	4154

(B) At such times as the school employees retirement board	4155
determines, and at least once in each quinquennial period, the	4156
board shall have prepared by or under the supervision of an	4157
actuary an actuarial investigation of the mortality, service, and	4158
other experience of the members, retirants, and beneficiaries of	4159
the retirement system, and SERS retirants and other system	4160
retirants as defined in section 3309.341 of the Revised Code to	4161
update the actuarial assumptions used in the actuarial valuation	4162
required by division (A) of this section. The actuary shall	4163
prepare a report of the actuarial investigation. The report shall	4164
be prepared and any recommended changes in actuarial assumptions	4165
shall be made in accordance with the actuarial standards of	4166
practice promulgated by the actuarial standards board of the	4167
American academy of actuaries. The report shall include all of	4168
the following:	4169

(1) A summary of relevant decrement and economic assumption	4170
experience observed over the period of the investigation;	4171

(2) Recommended changes in actuarial assumptions to be used	4172
in subsequent actuarial valuations required by division (A) of	4173
this section;	4174

(3) A measurement of the financial effect of the recommended	4175
changes in actuarial assumptions.	4176

The board shall submit the report to the Ohio retirement	4177
study commissioncouncil and the standing committees of the house	4178
of representatives and the senate with primary responsibility for	4179
retirement legislation not later than the first day of May	4180
following the last fiscal year of the period the report covers.	4181

(C) The board may at any time request the actuary to make	4182
any studies or actuarial valuations to determine the adequacy of	4183
the rates of contribution as provided by section 3309.49 of the	4184
Revised Code, and those rates may be adjusted by the board, as	4185
recommended by the actuary, effective as of the first of any year	4186
thereafter.	4187

(D) The board shall have prepared by or under the	4188
supervision of an actuary an actuarial analysis of any introduced	4189
legislation expected to have a measurable financial impact on the	4190
retirement system. The actuarial analysis shall be completed in	4191
accordance with the actuarial standards of practice promulgated by	4192
the actuarial standards board of the American academy of	4193
actuaries. The actuary shall prepare a report of the actuarial	4194
analysis, which shall include all of the following:	4195

(1) A summary of the statutory changes that are being	4196
evaluated;	4197

(2) A description of or reference to the actuarial	4198
assumptions and actuarial cost method used in the report;	4199

(3) A description of the participant group or groups	4200
included in the report;	4201

(4) A statement of the financial impact of the legislation,	4202
including the resulting increase, if any, in the employer normal	4203
cost percentage; the increase, if any, in actuarial accrued	4204
liabilities; and the per cent of payroll that would be required to	4205
amortize the increase in actuarial accrued liabilities as a level	4206
per cent of covered payroll for all active members over a period	4207
not to exceed thirty years;	4208

(5) A statement of whether the scheduled contributions to	4209
the system after the proposed change is enacted are expected to be	4210
sufficient to satisfy the funding objectives established by the	4211
board.	4212

Not later than sixty days from the date of introduction of	4213
the legislation, the board shall submit a copy of the actuarial	4214
analysis to the legislative budget office of the legislative	4215
service commission, the standing committees of the house of	4216
representatives and the senate with primary responsibility for	4217
retirement legislation, and the Ohio retirement study commission	4218
council.	4219

(E) The board shall have prepared annually a report giving a	4220
full accounting of the revenues and costs relating to the	4221
provision of benefits under sections 3309.375 and 3309.69 of the	4222
Revised Code. The report shall be made as of June 30, 1997, and	4223
the thirtieth day of June of each year thereafter. The report	4224
shall include the following:	4225

(1) A description of the statutory authority for the	4226
benefits provided;	4227

(2) A summary of the benefits;

4228

(3) A summary of the eligibility requirements for the	4229
benefits;	4230

(4) A statement of the number of participants eligible for	4231
the benefits;	4232

(5) A description of the accounting, asset valuation, and	4233
funding method used to provide the benefits;	4234

(6) A statement of the net assets available for the	4235
provision of the benefits as of the last day of the fiscal year;	4236

(7) A statement of any changes in the net assets available	4237
for the provision of benefits, including participant and employer	4238
contributions, net investment income, administrative expenses, and	4239
benefits provided to participants, as of the last day of the	4240
fiscal year;	4241

(8) For the last six consecutive fiscal years, a schedule of	4242
the net assets available for the benefits, the annual cost of	4243
benefits, administrative expenses incurred, and annual employer	4244
contributions allocated for the provision of benefits;	4245

(9) A description of any significant changes that affect the	4246
comparability of the report required under this division;	4247

(10) A statement of the amount paid under division (D)(C) of	4248
section 3309.69 of the Revised Code.	4249

The board shall submit the report to the Ohio retirement	4250
study commissioncouncil and the standing committees of the house	4251
of representatives and the senate with primary responsibility for	4252
retirement legislation not later than the thirty-first day of	4253
December following the year for which the report was made.	4254

Sec. 3309.43. A(A) Except as provided in division (B) of	4255
this section, a member of the school employees retirement system	4256
who has ceased to be an employee, and who is also a member of	4257
either the public employees retirement system or the state	4258
teachers retirement system, or both, may not withdraw histhe	4259
member's accumulated contributions, unless he.	4260

(B) On application, the school employees retirement board	4261
shall pay a member described in division (A) of this section the	4262
member's accumulated contributions if either of the following	4263
applies:	4264

(1) The member also withdraws histhe member's contributions	4265
from such other systems. The	4266

(2) The member is a participant in a plan established under	4267
section 145.81 or 3307.81 of the Revised Code and has withdrawn	4268
the member's contributions under plans described in sections	4269
145.201 to 145.79 and 3307.50 to 3307.79 of the Revised Code.	4270

The school employees retirement board may waive the annual	4271
expense fee where a member is contributing to another state	4272
retirement system provided such member is not at the same time	4273
contributing to the school employees retirement system.	4274

Sec. 3309.45.  Except as provided in division (C)(1) of this	4275
section, in lieu of accepting the payment of the accumulated	4276
account of a member who dies before service retirement, the	4277
beneficiary, as determined in section 3309.44 of the Revised Code,	4278
may elect to forfeit the accumulated account and to substitute	4279
certain other benefits either under division (A) or (B) of this	4280
section.	4281

(A)(1) If a deceased member was eligible for a service	4282
retirement allowance as provided in section 3309.36, 3309.38, or	4283
3309.381 of the Revised Code, a surviving spouse or other sole	4284
dependent beneficiary may elect to receive a monthly benefit	4285
computed as the joint-survivor allowance designated as "plan D" in	4286
section 3309.46 of the Revised Code, which the member would have	4287
received had the member retired on the last day of the month of	4288
death and had the member at that time selected such joint-survivor	4289
plan. Payment shall begin with the month subsequent to the	4290
member's death.	4291

(2) Beginning on a date selected by the school employees	4292
retirement board, which shall be not later than July 1, 2004, a	4293
surviving spouse or other sole dependent beneficiary may elect, in	4294
lieu of a monthly payment under division (A)(1) of this section, a	4295
plan of payment consisting of both of the following:	4296

(a) A lump sum in an amount the surviving spouse or other	4297
sole dependent beneficiary designates that constitutes a portion	4298
of the allowance that would be payable under division (A)(1) of	4299
this section;	4300

(b) The remainder of that allowance in monthly payments.

4301

The total amount paid as a lump sum and a monthly benefit	4302
shall be the actuarial equivalent of the amount that would have	4303
been paid had the lump sum not been selected.	4304

The lump sum amount designated by the surviving spouse or	4305
other sole dependent beneficiary under division (A)(2)(a) of this	4306
section shall be not less than six times and not more than	4307
thirty-six times the monthly amount that would be payable to the	4308
surviving spouse or other sole dependent beneficiary under	4309
division (A)(1) of this section and shall not result in a monthly	4310
benefit that is less than fifty per cent of that monthly amount.	4311

(B) If the deceased member had completed at least one and	4312
one-half years of credit for Ohio service, with at least	4313
one-quarter year of Ohio contributing service credit within the	4314
two and one-half years prior to the date of death, or was	4315
receiving at the time of death a disability benefit as provided in	4316
section 3309.40 or 3309.401 of the Revised Code, qualified	4317
survivors who elect to receive monthly benefits shall receive the	4318
greater of the benefits provided in division (B)(1)(a) or (b) as	4319
allocated in accordance with division (B)(5) of this section.	4320

(2) Benefits shall begin as qualified survivors meet	4342
eligibility requirements as follows:	4343

(a) A qualified spouse is the surviving spouse of the	4344
deceased member who is age sixty-two, or regardless of age if the	4345
deceased member had ten or more years of Ohio service credit, or	4346
regardless of age if caring for a surviving child, or regardless	4347
of age if adjudged physically or mentally incompetent.	4348

(b) A qualified child is any child of the deceased member	4349
who has never been married and to whom one of the following	4350
applies:	4351

(i) Is under age eighteen, or under age twenty-two if the	4352
child is attending an institution of learning or training pursuant	4353
to a program designed to complete in each school year the	4354
equivalent of at least two-thirds of the full-time curriculum	4355
requirements of such institution and as further determined by	4356
board policy;	4357

(ii) Regardless of age, is adjudged physically or mentally	4358
incompetent if the incompetence existed prior to the member's	4359
death and prior to the child attaining age eighteen, or age	4360
twenty-two if attending an institution described in division	4361
(B)(2)(b)(i) of this section.	4362

(c) A qualified parent is a dependent parent aged sixty-five	4363
or older.	4364

(3) "Physically or mentally incompetent" as used in this	4365
section may be determined by a court of jurisdiction, or by a	4366
physician appointed by the retirement board. Incapability of	4367
earning a living because of a physically or mentally disabling	4368
condition shall meet the qualifications of this division.	4369

(4) Benefits to a qualified survivor shall terminate upon a	4370
first marriage, abandonment, adoption, or during active military	4371
service. Benefits to a deceased member's surviving spouse that	4372
were terminated under a former version of this section that	4373
required termination due to remarriage and were not resumed prior	4374
to September 16, 1998, shall resume on the first day of the month	4375
immediately following receipt by the board of an application on a	4376
form provided by the board.	4377

Upon the death of any subsequent spouse who was a member of	4378
the public employees retirement system, state teachers retirement	4379
system, or school employees retirement system, the surviving	4380
spouse of such member may elect to continue receiving benefits	4381
under this division, or to receive survivor's benefits, based upon	4382
the subsequent spouse's membership in one or more of the systems,	4383
for which such surviving spouse is eligible under this section or	4384
section 145.45 or 3307.66 of the Revised Code. If the surviving	4385
spouse elects to continue receiving benefits under this division,	4386
such election shall not preclude the payment of benefits under	4387
this division to any other qualified survivor.	4388

Benefits shall begin or resume on the first day of the month	4389
following the attainment of eligibility and shall terminate on the	4390
first day of the month following loss of eligibility.	4391

(5)(a) If a benefit is payable under division (B)(1)(a) of	4392
this section, benefits to a qualified spouse shall be paid in the	4393
amount determined for the first qualifying survivor in division	4394
(B)(1)(a) of this section, but shall not be less than one hundred	4395
six dollars per month if the deceased member had ten or more years	4396
of Ohio service credit. All other qualifying survivors shall	4397
share equally in the benefit or remaining portion thereof.	4398

(b) All qualifying survivors shall share equally in a	4399
benefit payable under division (B)(1)(b) of this section, except	4400
that if there is a surviving spouse, the surviving spouse shall	4401
receive no less than the greater of the amount determined for the	4402
first qualifying survivor in division (B)(1)(a) of this section or	4403
one hundred six dollars per month.	4404

(6) The beneficiary of a member who is also a member of the	4405
public employees retirement system, or of the state teachers	4406
retirement system, must forfeit the member's accumulated	4407
contributions in those systems, if the beneficiary takes a	4408
survivor benefit. Such benefit shall be exclusively governed by	4409
section 3309.35 of the Revised Code.	4410

(C)(1) Regardless of whether the member is survived by a	4411
spouse or designated beneficiary, if the school employees	4412
retirement system receives notice that a deceased member described	4413
in division (A) or (B) of this section has one or more qualified	4414
children, all persons who are qualified survivors under Division	4415
division (B) of this section shall receive monthly benefits as	4416
provided in division (B) of this section.	4417

If, after determining the monthly benefits to be paid under	4418
division (B) of this section, the system receives notice that	4419
there is a qualified survivor who was not considered when the	4420
determination was made, the system shall, notwithstanding section	4421
3309.661 of the Revised Code, recalculate the monthly benefits	4422
with that qualified survivor included, even if the benefits to	4423
qualified survivors already receiving benefits are reduced as a	4424
result. The benefits shall be calculated as if the qualified	4425
survivor who is the subject of the notice became eligible on the	4426
date the notice was received and shall be paid to qualified	4427
survivors effective on the first day of the first month following	4428
the system's receipt of the notice.	4429

If the retirement system did not receive notice that a	4430
deceased member has one or more qualified children prior to making	4431
payment under section 3309.44 of the Revised Code to a beneficiary	4432
as determined by the retirement system, the payment is a full	4433
discharge and release of the system from any future claims under	4434
this section or section 3309.44 of the Revised Code.	4435

(2) If benefits under division (C)(1) of this section to all	4436
persons, or to all persons other than a surviving spouse or other	4437
sole beneficiary, terminate, there are no children under the age	4438
of twenty-two years, and the surviving spouse or beneficiary	4439
qualifies for benefits under division (A) of this section, the	4440
surviving spouse or beneficiary may elect to receive benefits	4441
under division (A) of this section. Benefits shall be effective	4442
on the first day of the month following receipt by the board of an	4443
application for benefits under division (A) of this section.	4444

(D) The final average salary used in the calculation of a	4445
benefit payable pursuant to division (A) or (B) of this section to	4446
a survivor or beneficiary of a disability benefit recipient shall	4447
be adjusted for each year between the disability benefit's	4448
effective date and the recipient's date of death by the lesser of	4449
three per cent or the actual average percentage increase in the	4450
consumer price index prepared by the United States bureau of labor	4451
statistics (U.S. City Average for Urban Wage Earners and Clerical	4452
Workers: "All Items 1982-84=100").	4453

(E) If the survivor benefits due and paid under this section	4454
are in a total amount less than the member's accumulated account	4455
that was transferred from the employees' savings fund, the state	4456
teachers retirement fund, and the public employees retirement fund	4457
to the survivors' benefit fund, then the difference between the	4458
total amount of the benefits paid shall be paid to the beneficiary	4459
under section 3309.44 of the Revised Code.	4460

Sec. 3309.46.  (A) The retirement allowance calculated under	4461
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be	4462
paid as provided in this section. If the member is eligible to	4463
elect a plan of payment under this section, the election shall be	4464
made on the application for retirement. A plan of payment elected	4465
under this section shall be effective only if it is certified by	4466
the actuary engaged by the school employees retirement board to be	4467
the actuarial equivalent of the member's retirement allowance and	4468
is approved by the retirement board.	4469

(B)(1) Unless the member is eligible to elect another plan	4470
of payment, a member who retires under section 3309.36, 3309.38,	4471
or 3309.381 of the Revised Code shall receive a retirement	4472
allowance under "plan A," which shall consist of the actuarial	4473
equivalent of the member's retirement allowance determined under	4474
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4475
lesser amount payable for life and one-half of such allowance	4476
continuing after death to the member's surviving spouse for the	4477
life of the spouse.	4478

A member may elect to receive a retirement allowance under a	4479
plan of payment other than "plan A" if the member is not married	4480
or either the member's spouse consents in writing to the member's	4481
election to a plan of payment other than "plan A" or the board	4482
waives the requirement that the spouse consent.	4483

An application for retirement shall include an explanation of	4484
all of the following:	4485

(a) That, if the member is married, unless the spouse	4486
consents to another plan of payment, the member's retirement	4487
allowance will be paid under "plan A," which consists of the	4488
actuarial equivalent of the member's retirement allowance in a	4489
lesser amount payable for life and one-half of the allowance	4490
continuing after death to the surviving spouse for the life of the	4491
spouse;	4492

(b) A description of the alternative plans of payment,	4493
including all plans described in divisions (B)(2) and (3) of this	4494
section, available with the consent of the spouse;	4495

(c) That the spouse may consent to another plan of payment	4496
and the procedure for giving consent;	4497

(d) That consent is irrevocable once notice of consent is	4498
filed with the board.	4499

Consent shall be valid only if it is in writing, signed by	4500
the spouse, and witnessed by an employee of the school employees	4501
retirement system or a notary public. The board may waive the	4502
requirement of consent if the spouse is incapacitated or cannot be	4503
located or for any other reason specified by the board. Consent	4504
or waiver is effective only with regard to the spouse who is the	4505
subject of the consent or waiver.	4506

(2) A member eligible to elect to receive a retirement	4507
allowance under a plan of payment other than "plan A" shall	4508
receive the retirement allowance under the plan described in	4509
division (B)(3) of this section or one of the following plans	4510
elected at the time the member makes application for retirement:	4511

(a) "Plan B," which shall consist of an allowance determined	4512
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;	4513

(b) "Plan C," which shall consist of the actuarial	4514
equivalent of the member's retirement allowance determined under	4515
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4516
lesser amount payable for life and one-half or some other portion	4517
of the allowance continuing after death to the member's sole	4518
surviving beneficiary designated at the time of the member's	4519
retirement, provided that the amount payable to the beneficiary	4520
does not exceed the amount payable to the member;	4521

(c) "Plan D," which shall consist of the actuarial	4522
equivalent of the member's retirement allowance determined under	4523
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4524
lesser amount payable for life and continuing after death to a	4525
surviving designated beneficiary designated at the time of the	4526
member's retirement;	4527

(d) "Plan E," which shall consist of the actuarial	4528
equivalent of the member's retirement allowance determined under	4529
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4530
lesser amount payable for a certain period from the member's	4531
retirement date as elected by the member and approved by the	4532
retirement board, and on the member's death before the expiration	4533
of that certain period, the member's lesser retirement allowance	4534
continued for the remainder of that period to, and in such order,	4535
the beneficiaries as the member has nominated by written	4536
designation and filed with the retirement board.	4537

Monthly benefits shall not be paid to joint beneficiaries,	4538
but they may receive the present value of any remaining payments	4539
in a lump sum settlement. If all beneficiaries die before the	4540
expiration of the certain period, the present value of all such	4541
payments yet remaining in such period shall be paid to the estate	4542
of the beneficiary last receiving.	4543

(3)(a) Beginning on a date selected by the board, which shall	4544
be not later than July 1, 2004, a member may elect, in lieu of a	4545
plan of payment under division (B)(1) or (2) of this section, a	4546
plan consisting of both a lump sum in an amount the member	4547
designates that constitutes a portion of the retirement allowance	4548
payable under a plan described in division (B)(1) or (2) of this	4549
section and the remainder of the allowance payable under that plan	4550
in monthly payments.	4551

The total amount paid as a lump sum and a monthly benefit	4552
shall be the actuarial equivalent of the amount that would have	4553
been paid had the lump sum not been selected.	4554

(b) The lump sum amount designated by the member shall be not	4555
less than six times and not more than thirty-six times the monthly	4556
amount that would be payable to the member under the plan of	4557
payment elected under this section had the lump sum not been	4558
elected and shall not result in a monthly benefit that is less	4559
than fifty per cent of that amount.	4560

(4) An election under division (B)(2) or (3) of this section	4561
shall be made at the time the member makes application for	4562
retirement.	4563

(5) A member eligible to elect to receive a retirement	4564
allowance under a plan of payment other than "plan A" because the	4565
member is unmarried who fails to make an election on retirement	4566
shall receive a retirement allowance under "plan B."	4567

(C) Until the first payment of any retirement allowance is	4568
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the	4569
Revised Code, a member may change the member's election of a	4570
payment plan if the election is made in accordance with and is	4571
consistent with division (B) of this section.	4572

(D) If the retirement allowances due and paid under the	4573
above provisions of this section are in a total amount less than	4574
(1) the accumulated contributions, (2) the deposits for additional	4575
credit as provided by section 3309.31 of the Revised Code, (3) the	4576
deposits for additional annuities as provided by section 3309.47	4577
of the Revised Code, (4) the deposits for repurchase of service	4578
credit as provided by section 3309.26 of the Revised Code, (5) the	4579
accumulated contributions provided by section 3309.65 of the	4580
Revised Code, (6) the deposits for purchase of military service	4581
credit provided by section 3309.021 or 3309.022 of the Revised	4582
Code, and (7) the deposits for the purchase of service credit	4583
provided by section 3309.73 of the Revised Code, standing to the	4584
credit of the member at the time of retirement, then the	4585
difference between the total amount of the allowances paid and the	4586
accumulated contributions and other deposits shall be paid to the	4587
beneficiary provided under division (D) of section 3309.44 of the	4588
Revised Code.	4589

(E)(1) The death of a spouse or any other designated	4590
beneficiary following the member's retirement shall cancel any	4591
plan of payment to provide continuing lifetime benefits to the	4592
spouse or designated beneficiary and the retirant shall receive	4593
the retirant's single lifetime retirement allowance equivalent as	4594
determined by the board.	4595

(2) On divorce, annulment, or marriage dissolution, a	4596
retirant receiving a retirement allowance under a plan of payment	4597
that provides for continuation of all or part of the allowance	4598
after death for the lifetime of the member's surviving spouse may	4599
elect to cancel the plan and receive the member's single lifetime	4600
retirement allowance equivalent as determined by the retirement	4601
board, except that in the case of a member who retires on or after	4602
July 24, 1990, the election may be made only with the written	4603
consent of the spouse or pursuant to an order of the court with	4604
jurisdiction over the termination of the marriage. The election	4605
shall be made on a form provided by the board and shall be	4606
effective the month following its receipt by the board.	4607

(3) Following marriage or remarriage, a retirant who is	4608
receiving a benefit pursuant to "plan B" may elect a new plan of	4609
payment under division (B)(1), (2)(b), or (2)(c) of this section	4610
based on the actuarial equivalent of the member's single lifetime	4611
retirement allowance as determined by the board. The plan shall	4612
become effective the first day of the month following receipt by	4613
the board of an application on a form approved by the board.	4614

Sec. 3309.69.  (A) As used in this section, "ineligible	4615
individual" means all of the following:	4616

(1) A former member receiving benefits pursuant to section	4617
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised	4618
Code for whom eligibility is established more than five years	4619
after June 13, 1981, and who, at the time of establishing	4620
eligibility, has accrued less than ten years of service credit,	4621
exclusive of credit obtained after January 29, 1981, pursuant to	4622
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised	4623
Code;	4624

(2) The spouse of the former member;

4625

(3) The beneficiary of the former member receiving benefits	4626
pursuant to section 3309.46 of the Revised Code.	4627

(B) The school employees retirement board may enter into an	4628
agreement with insurance companies, health insuring corporations,	4629
or government agencies authorized to do business in the state for	4630
issuance of a policy or contract of health, medical, hospital, or	4631
surgical benefits, or any combination thereof, for those	4632
individuals receiving service retirement or a disability or	4633
survivor benefit subscribing to the plan and their eligible	4634
dependents.	4635

If all or any portion of the policy or contract premium is to	4636
be paid by any individual receiving service retirement or a	4637
disability or survivor benefit, the person shall, by written	4638
authorization, instruct the board to deduct the premiums agreed to	4639
be paid by the individual to the companies, corporations, or	4640
agencies.	4641

The board may contract for coverage on the basis of part or	4642
all of the cost of the coverage to be paid from appropriate funds	4643
of the school employees retirement system. The cost paid from the	4644
funds of the system shall be included in the employer's	4645
contribution rate provided by sections 3309.49 and 3309.491 of the	4646
Revised Code. The board shall not pay or reimburse the cost for	4647
health care under this section or section 3309.375 of the Revised	4648
Code for any ineligible individual.	4649

The board may provide for self-insurance of risk or level of	4650
risk as set forth in the contract with the companies,	4651
corporations, or agencies, and may provide through the	4652
self-insurance method specific benefits as authorized by the rules	4653
of the board.	4654

(C) If the board provides health, medical, hospital, or	4655
surgical benefits through any means other than a health insuring	4656
corporation, it shall offer to each individual eligible for the	4657
benefits the alternative of receiving benefits through enrollment	4658
in a health insuring corporation, if all of the following apply:	4659

(1) The health insuring corporation provides health care	4660
services in the geographical area in which the individual lives;	4661

(2) The eligible individual was receiving health care	4662
benefits through a health maintenance organization or a health	4663
insuring corporation before retirement;	4664

(3) The rate and coverage provided by the health insuring	4665
corporation to eligible individuals is comparable to that	4666
currently provided by the board under division (B) of this	4667
section. If the rate or coverage provided by the health insuring	4668
corporation is not comparable to that currently provided by the	4669
board under division (B) of this section, the board may deduct the	4670
additional cost from the eligible individual's monthly benefit.	4671

The health insuring corporation shall accept as an enrollee	4672
any eligible individual who requests enrollment.	4673

The board shall permit each eligible individual to change	4674
from one plan to another at least once a year at a time determined	4675
by the board.	4676

(D) The board shall, beginning the month following receipt	4677
of satisfactory evidence of the payment for coverage, make a	4678
monthly payment to each recipient of service retirement, or a	4679
disability or survivor benefit under the school employees	4680
retirement system who is eligible for insurance coverage under	4681
part B of "The Social Security Amendments of 1965," 79 Stat. 301,	4682
42 U.S.C.A. 1395j, as amended, except that the board shall make no	4683
such payment to any ineligible individual. Effective on the first	4684
day of the month after the effective date of this amendmentApril	4685
9, 2001, the amount of the payment shall be the lesser of an	4686
amount equal to the basic premium for such coverage, or an amount	4687
equal to the basic premium in effect on January 1, 1999.	4688

(E)(D) The board shall establish by rule requirements for	4689
the coordination of any coverage, payment, or benefit provided	4690
under this section or section 3309.375 of the Revised Code with	4691
any similar coverage, payment, or benefit made available to the	4692
same individual by the public employees retirement system, Ohio	4693
police and fire pension fund, state teachers retirement system, or	4694
state highway patrol retirement system.	4695

(F)(E) The board shall make all other necessary rules	4696
pursuant to the purpose and intent of this section.	4697

Sec. 5505.12.  (A) The state highway patrol retirement board	4698
shall have prepared annually by or under the supervision of an	4699
actuary an actuarial valuation of the pension assets, liabilities,	4700
and funding requirements of the state highway patrol retirement	4701
system as established pursuant to this chapter. The actuary shall	4702
complete the valuation in accordance with actuarial standards of	4703
practice promulgated by the actuarial standards board of the	4704
American academy of actuaries and prepare a report of the	4705
valuation. The report shall include all of the following:	4706

(1) A summary of the benefit provisions evaluated;

4707

(2) A summary of the census data and financial information	4708
used in the valuation;	4709

(3) A description of the actuarial assumptions, actuarial	4710
cost method, and asset valuation method used in the valuation,	4711
including a statement of the assumed rate of payroll growth and	4712
assumed rate of growth or decline in the number of members	4713
contributing to the retirement system;	4714

(4) A summary of findings that includes a statement of the	4715
actuarial accrued pension liabilities and unfunded actuarial	4716
accrued pension liabilities;	4717

(5) A schedule showing the effect of any changes in the	4718
benefit provisions, actuarial assumptions, or cost methods since	4719
the last annual actuarial valuation;	4720

(6) A statement of whether contributions to the retirement	4721
system are expected to be sufficient to satisfy the funding	4722
objectives established by the board.	4723

The board shall submit the report to the Ohio retirement	4724
study council and the standing committees of the house of	4725
representatives and the senate with primary responsibility for	4726
retirement legislation not later than the first day of July	4727
following the year for which the valuation was made.	4728

(B) At such times as the state highway patrol retirement	4729
board determines, and at least once in each five-year period after	4730
January 1, 1966, the board shall have prepared by or under the	4731
supervision of an actuary an actuarial investigation of the	4732
mortality, service, and other experience of the members,	4733
retirants, and beneficiaries to update the actuarial assumptions	4734
used in the actuarial valuation required by division (A) of this	4735
section. The actuary shall prepare a report of the actuarial	4736
investigation. The report shall be prepared and any recommended	4737
changes in actuarial assumptions shall be made in accordance with	4738
the actuarial standards of practice promulgated by the actuarial	4739
standards board of the American academy of actuaries. The report	4740
shall include all of the following:	4741

(1) A summary of relevant decrement and economic assumption	4742
experience observed over the period of the investigation;	4743

(2) Recommended changes in actuarial assumptions to be used	4744
in subsequent actuarial valuations required by division (A) of	4745
this section;	4746

(3) A measurement of the financial effect of the recommended	4747
changes in actuarial assumptions.	4748

The board shall submit the report to the Ohio retirement	4749
study council and the standing committees of the house of	4750
representatives and the senate with primary responsibility for	4751
retirement legislation not later than the first day of November	4752
following the last fiscal year of the period the report covers.	4753

(C) The board may at any time request the actuary to make	4754
any studies or actuarial valuations to determine the adequacy of	4755
the rates of contributions provided by section 5505.15 of the	4756
Revised Code.	4757

(D) The board shall have prepared by or under the	4758
supervision of an actuary an actuarial analysis of any introduced	4759
legislation expected to have a measurable financial impact on the	4760
retirement system. The actuarial analysis shall be completed in	4761
accordance with the actuarial standards of practice promulgated by	4762
the actuarial standards board of the American academy of	4763
actuaries. The actuary shall prepare a report of the actuarial	4764
analysis, which shall include all of the following:	4765

(1) A summary of the statutory changes that are being	4766
evaluated;	4767

(2) A description of or reference to the actuarial	4768
assumptions and actuarial cost method used in the report;	4769

(3) A description of the participant group or groups	4770
included in the report;	4771

(4) A statement of the financial impact of the legislation,	4772
including the resulting increase, if any, in the employer normal	4773
cost percentage; the increase, if any, in actuarial accrued	4774
liabilities; and the per cent of payroll that would be required to	4775
amortize the increase in actuarial accrued liabilities as a level	4776
per cent of covered payroll for all active members over a period	4777
not to exceed thirty years;	4778

(5) A statement of whether the scheduled contributions to	4779
the system after the proposed change is enacted are expected to be	4780
sufficient to satisfy the funding objectives established by the	4781
board.	4782

Not later than sixty days from the date of introduction of	4783
the legislation, the board shall submit a copy of the actuarial	4784
analysis to the legislative budget office of the legislative	4785
service commission, the standing committees of the house of	4786
representatives and the senate with primary responsibility for	4787
retirement legislation, and the Ohio retirement study council.	4788

(E) The board shall have prepared annually a report giving a	4789
full accounting of the revenues and costs relating to the	4790
provision of benefits under section 5505.28 of the Revised Code.	4791
The report shall be made as of December 31, 1997, and the	4792
thirty-first day of December of each year thereafter. The report	4793
shall include the following:	4794

(1) A description of the statutory authority for the	4795
benefits provided;	4796

(2) A summary of the benefits;

4797

(3) A summary of the eligibility requirements for the	4798
benefits;	4799

(4) A statement of the number of participants eligible for	4800
the benefits;	4801

(5) A description of the accounting, asset valuation, and	4802
funding method used to provide the benefits;	4803

(6) A statement of the net assets available for the	4804
provision of the benefits as of the last day of the fiscal year;	4805

(7) A statement of any changes in the net assets available	4806
for the provision of benefits, including participant and employer	4807
contributions, net investment income, administrative expenses, and	4808
benefits provided to participants, as of the last day of the	4809
fiscal year;	4810

(8) For the last six consecutive fiscal years, a schedule of	4811
the net assets available for the benefits, the annual cost of	4812
benefits, administrative expenses incurred, and annual employer	4813
contributions allocated for the provision of benefits;	4814

(9) A description of any significant changes that affect the	4815
comparability of the report required under this division;	4816

(10) A statement of the amount paid under division (C)(B) of	4817
section 5505.28 of the Revised Code.	4818

The board shall submit the report to the Ohio retirement	4819
study council and the standing committees of the house of	4820
representatives and the senate with primary responsibility for	4821
retirement legislation not later than the thirtieth day of June	4822
following the year for which the report was made.	4823

Sec. 5505.28.  (A) The state highway patrol retirement board	4824
may enter into an agreement with insurance companies, health	4825
insuring corporations, or government agencies authorized to do	4826
business in the state for issuance of a policy or contract of	4827
health, medical, hospital, or surgical benefits, or any	4828
combination thereof, for those persons receiving pensions and	4829
subscribing to the plan. Notwithstanding any other provision of	4830
this chapter, the policy or contract may also include coverage for	4831
any eligible individual's spouse and dependent children and for	4832
any of the individual's sponsored dependents as the board	4833
considers appropriate.	4834

If all or any portion of the policy or contract premium is to	4835
be paid by any individual receiving a service, disability, or	4836
survivor pension or benefit, the individual shall, by written	4837
authorization, instruct the board to deduct from the individual's	4838
pension or benefit the premium agreed to be paid by the individual	4839
to the company, corporation, or agency.	4840

The board may contract for coverage on the basis of part or	4841
all of the cost of the coverage to be paid from appropriate funds	4842
of the state highway patrol retirement system. The cost paid from	4843
the funds of the system shall be included in the employer's	4844
contribution rate as provided by section 5505.15 of the Revised	4845
Code.	4846

(B) If the board provides health, medical, hospital, or	4847
surgical benefits through any means other than a health insuring	4848
corporation, it shall offer to each individual eligible for the	4849
benefits the alternative of receiving benefits through enrollment	4850
in a health insuring corporation, if all of the following apply:	4851

(1) The health insuring corporation provides health care	4852
services in the geographical area in which the individual lives;	4853

(2) The eligible individual was receiving health care	4854
benefits through a health maintenance organization or a health	4855
insuring corporation before retirement;	4856

(3) The rate and coverage provided by the health insuring	4857
corporation to eligible individuals is comparable to that	4858
currently provided by the board under division (A) of this	4859
section. If the rate or coverage provided by the health insuring	4860
corporation is not comparable to that currently provided by the	4861
board under division (A) of this section, the board may deduct the	4862
additional cost from the eligible individual's monthly benefit.	4863

The health insuring corporation shall accept as an enrollee	4864
any eligible individual who requests enrollment.	4865

The board shall permit each eligible individual to change	4866
from one plan to another at least once a year at a time determined	4867
by the board.	4868

(C) The board shall, beginning the month following receipt	4869
of satisfactory evidence of the payment for coverage, pay monthly	4870
to each recipient of a pension under the state highway patrol	4871
retirement system who is eligible for medical insurance coverage	4872
under part B of "The Social Security Amendments of 1965," 79 Stat.	4873
301, 42 U.S.C.A. 1395j, as amended, an amount established by board	4874
rule not exceeding the basic premium for such coverage.	4875

(D)(C) The board shall establish by rule requirements for	4876
the coordination of any coverage, payment, or benefit provided	4877
under this section with any similar coverage, payment, or benefit	4878
made available to the same individual by the public employees	4879
retirement system, Ohio police and fire pension fund, state	4880
teachers retirement system, or school employees retirement system.	4881

(E)(D) The board shall make all other necessary rules	4882
pursuant to the purpose and intent of this section.	4883

Section 2. That existing sections 145.01, 145.04, 145.05,	4884
145.091, 145.19, 145.191, 145.192, 145.20, 145.22, 145.23, 145.27,	4885
145.35, 145.38, 145.384, 145.40, 145.45, 145.46, 145.56, 145.58,	4886
145.80, 145.81, 145.811, 145.812, 145.813, 145.82, 145.85, 145.86,	4887
145.87, 145.88, 145.91, 145.92, 145.95, 145.97, 742.14, 742.37,	4888
742.372, 742.45, 3105.80, 3307.01, 3307.39, 3307.51, 3307.56,	4889
3307.561, 3307.563, 3307.58, 3307.60, 3307.761, 3307.763,	4890
3307.764, 3307.87, 3309.21, 3309.43, 3309.45, 3309.46, 3309.69,	4891
5505.12, and 5505.28 and sections 742.371 and 742.373 of the	4892
Revised Code are hereby repealed.	4893

Section 3. Section 145.01 of the Revised Code is presented in	4894
this act as a composite of the section as amended by Sub. H.B.	4895
158, Am. Sub. H.B. 405, and Am. Sub. S.B. 164 of the 124th General	4896
Assembly. Section 145.27 of the Revised Code is presented in this	4897
act as a composite of the section as amended by both Sub. H.B.	4898
535 and Am. Sub. S.B. 180 of the 123rd General Assembly. Section	4899
145.56 of the Revised Code is presented in this act as a composite	4900
of the section as amended by both Sub. H.B. 535 and Am. Sub. S.B.	4901
180 of the 123rd General Assembly. Section 3307.58 of the Revised	4902
Code is presented in this act as a composite of the section as	4903
amended by both Sub. H.B. 535 and Sub. S.B. 270 of the 123rd	4904
General Assembly. The General Assembly, applying the principle	4905
stated in division (B) of section 1.52 of the Revised Code that	4906
amendments are to be harmonized if reasonably capable of	4907
simultaneous operation, finds that the composite is the resulting	4908
version of the section in effect prior to the effective date of	4909
the section as presented in this act.	4910