SENATOR Blessing

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, 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

16

Teachers Retirement System (STRS), School

17

Employees Retirement System, and Public Employees

18

Retirement System (PERS) the option of receiving

19

retirement benefits as a partial lump sum followed

20

by a reduced monthly allowance, to make other

21

changes to the law governing STRS to make changes

22

to the Ohio Police and Fire Pension Fund (OP&F)

23

cost of living increase, to eliminate a health

24

maintenance organization requirement for public

25

pension system retirees, to permit certain PERS

26

reemployed retirants to elect resumption of a

27

retirement allowance, to make permissive the

28

redeposit of contributions previously withdrawn

29

from OP&F by firefighters and police officers

30

returning to the same employer after a period of

31

absence, and to alter provisions governing the

32

PERS defined 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, 3307.01, 3307.39, 3307.51, 3307.56, 3307.561, 3307.563,	39
3307.58, 3307.60, 3307.761, 3307.763, 3307.764, 3307.87, 3309.21,	40
3309.43, 3309.45, 3309.46, 3309.69, 5505.12, and 5505.28 be	41
amended, and section 742.372 (742.371) be amended for the purpose	42
of adopting a new section number, and sections 145.193, 145.385,	43
145.402, 145.814, and 145.83 of the Revised Code be enacted to	44
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 in an alternative retirement plan under section	740
3305.05 of the Revised Code is in effect for employment covered by	741
the systemand the employment is in a position that is subject to	742
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, the board shall have prepared by or under	2448
the supervision of an actuary an actuarial investigation of the	2449
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

The board shall submit the report to the Ohio retirement	2468
study council and the standing committees of the house of	2469
representatives and the senate with primary responsibility for	2470
retirement legislation not later than the first day of November	2471
following the last fiscal year of the period the report covers.	2472

(D) The board shall have prepared by or under the	2473
supervision of an actuary an actuarial analysis of any introduced	2474
legislation expected to have a measurable financial impact on the	2475
pension fund. The actuarial analysis shall be completed in	2476
accordance with the actuarial standards of practice promulgated by	2477
the actuarial standards board of the American academy of	2478
actuaries. The actuary shall prepare a report of the actuarial	2479
analysis, which shall include all of the following:	2480

(1) A summary of the statutory changes that are being	2481
evaluated;	2482

(2) A description of or reference to the actuarial	2483
assumptions and actuarial cost method used in the report;	2484

(3) A description of the participant group or groups	2485
included in the report;	2486

(4) A statement of the financial impact of the legislation,	2487
including the resulting increase, if any, in the employer normal	2488
cost percentage; the increase, if any, in actuarial accrued	2489
liabilities; and the per cent of payroll that would be required to	2490
amortize the increase in actuarial accrued liabilities as a level	2491
per cent of covered payroll for all active members of the fund	2492
over a period not to exceed thirty years;	2493

(5) A statement of whether the scheduled contributions to	2494
the system after the proposed change is enacted are expected to be	2495
sufficient to satisfy the funding objectives established by the	2496
board.	2497

Not later than sixty days from the date of introduction of	2498
the legislation, the board shall submit a copy of the actuarial	2499
analysis to the legislative budget office of the legislative	2500
service commission, the standing committees of the house of	2501
representatives and the senate with primary responsibility for	2502
retirement legislation, and the Ohio retirement study council.	2503

(E) The board shall have prepared annually a report giving a	2504
full accounting of the revenues and costs relating to the	2505
provision of benefits under section 742.45 of the Revised Code.	2506
The report shall be made as of December 31, 1997, and the	2507
thirty-first day of December of each year thereafter. The report	2508
shall include the following:	2509

(1) A description of the statutory authority for the	2510
benefits provided;	2511

(2) A summary of the benefits;

2512

(3) A summary of the eligibility requirements for the	2513
benefits;	2514

(4) A statement of the number of participants eligible for	2515
the benefits;	2516

(5) A description of the accounting, asset valuation, and	2517
funding method used to provide the benefits;	2518

(6) A statement of the net assets available for the	2519
provision of the benefits as of the last day of the fiscal year;	2520

(7) A statement of any changes in the net assets available	2521
for the provision of benefits, including participant and employer	2522
contributions, net investment income, administrative expenses, and	2523
benefits provided to participants, as of the last day of the	2524
fiscal year;	2525

(8) For the last six consecutive fiscal years, a schedule of	2526
the net assets available for the benefits, the annual cost of	2527
benefits, administrative expenses incurred, and annual employer	2528
contributions allocated for the provision of benefits;	2529

(9) A description of any significant changes that affect the	2530
comparability of the report required under this division;	2531

(10) A statement of the amount paid under division (C)(B) of	2532
section 742.45 of the Revised Code.	2533

The board shall submit the report to the Ohio retirement	2534
study council and the standing committees of the house of	2535
representatives and the senate with primary responsibility for	2536
retirement legislation not later than the thirtieth day of June	2537
following the year for which the report was made.	2538

Sec. 742.37.  The board of trustees of the Ohio police and	2539
fire pension fund shall adopt rules for the management of the fund	2540
and for the disbursement of benefits and pensions as set forth in	2541
this section and section 742.39 of the Revised Code. Any payment	2542
of a benefit or pension under this section is subject to the	2543
provisions of section 742.461 of the Revised Code. Notwithstanding	2544
any other provision of this section, no pension or benefit paid or	2545
determined under division (B) or (C) of this section or section	2546
742.39 of the Revised Code shall exceed the limit established by	2547
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	2548
2085, 26 U.S.C.A. 415, as amended.	2549

(A) Persons who were receiving benefit or pension payments	2550
from a police relief and pension fund established under former	2551
section 741.32 of the Revised Code, or from a firemen's relief and	2552
pension fund established under former section 521.02 or 741.02 of	2553
the Revised Code, at the time the assets of the fund were	2554
transferred to the Ohio police and fire pension fund, known at	2555
that time as the police and firemen's disability and pension fund,	2556
shall receive benefit and pension payments from the Ohio police	2557
and fire pension fund in the same amount and subject to the same	2558
conditions as such payments were being made from the former fund	2559
on the date of the transfer.	2560

(B) A member of the fund who, pursuant to law, elected to	2561
receive benefits and pensions from a police relief and pension	2562
fund established under former section 741.32 of the Revised Code,	2563
or from a firemen's relief and pension fund established under	2564
former section 741.02 of the Revised Code, in accordance with the	2565
rules of the fund governing the granting of benefits or pensions	2566
therefrom in force on April 1, 1947, shall receive benefits and	2567
pensions from the Ohio police and fire pension fund in accordance	2568
with such rules; provided, that any member of the fund who is not	2569
receiving a benefit or pension from the fund on August 12, 1975,	2570
may, upon application for a benefit or pension to be received on	2571
or after August 12, 1975, elect to receive a benefit or pension in	2572
accordance with division (C) of this section.	2573

(C) Members of the fund who have not elected to receive	2574
benefits and pensions from a police relief and pension fund or a	2575
firemen's relief and pension fund in accordance with the rules of	2576
the fund in force on April 1, 1947, shall receive pensions and	2577
benefits in accordance with the following provisions:	2578

(1) A member of the fund who has completed twenty-five years	2579
of active service in a police or fire department and has attained	2580
forty-eight years of age may, at the member's election, retire	2581
from the police or fire department, and upon notifying the board	2582
in writing of the election, shall receive an annual pension,	2583
payable in twelve monthly installments, in an amount equal to a	2584
percentage of the member's average annual salary. The percentage	2585
shall be the sum of two and one-half per cent for each of the	2586
first twenty years the member was in the active service of the	2587
department, plus two per cent for each of the twenty-first to	2588
twenty-fifth years the member was in the active service of the	2589
department, plus one and one-half per cent for each year in excess	2590
of twenty-five years the member was in the active service of the	2591
department. The annual pension shall not exceed seventy-two per	2592
cent of the member's average annual salary.	2593

A member who completed twenty-five years of active service,	2594
has resigned or been discharged, and has left the sum deducted	2595
from the member's salary on deposit in the pension fund shall,	2596
upon attaining forty-eight years of age, be entitled to receive a	2597
normal service pension benefit computed and paid under division	2598
(C)(1) of this section.	2599

(2) A member of the fund who has served fifteen or more	2600
years as an active member of a police or fire department and who	2601
voluntarily resigns or is discharged from the department for any	2602
reason other than dishonesty, cowardice, intemperate habits, or	2603
conviction of a felony, shall receive an annual pension, payable	2604
in twelve monthly installments, in an amount equal to one and	2605
one-half per cent of the member's average annual salary multiplied	2606
by the number of full years the member was in the active service	2607
of the department. The pension payments shall not commence until	2608
the member has attained the age of forty-eight years and until	2609
twenty-five years have elapsed from the date on which the member	2610
became a full-time regular police officer or firefighter in the	2611
department.	2612

(3) A member of the fund who has completed fifteen or more	2613
years of active service in a police or fire department and who has	2614
attained sixty-two years of age, may retire from the department	2615
and, upon notifying the board in writing of the election to	2616
retire, shall receive an annual pension, payable in twelve monthly	2617
installments, in an amount equal to a percentage of the member's	2618
average annual salary. The percentage shall be the sum of two and	2619
one-half per cent for each of the first twenty years the member	2620
was in the active service of the department, plus two per cent for	2621
each of the twenty-first to twenty-fifth years the member was in	2622
the active service of the department, plus one and one-half per	2623
cent for each year in excess of twenty-five years the member was	2624
in the active service of the department. The annual pension shall	2625
not exceed seventy-two per cent of the member's average annual	2626
salary.	2627

(4) With the exception of those persons who may make	2628
application for benefits as provided in section 742.26 of the	2629
Revised Code, no person receiving a pension or other benefit under	2630
division (C) of this section on or after July 24, 1986, shall be	2631
entitled to apply for any new, changed, or different benefit.	2632

If a member covered by division (C) of this section or	2633
section 742.38 of the Revised Code dies prior to the time the	2634
member has received a payment and leaves a surviving spouse or	2635
dependent child, the surviving spouse or dependent child shall	2636
receive a pension under division (D) or (E) of this section.	2637

(D)(1) Except as provided in division (D)(2) of this	2638
section, a surviving spouse of a deceased member of the fund or a	2639
surviving spouse described in division (D)(4) of this section	2640
shall receive a monthly pension as follows:	2641

(a) For the period beginning July 1, 1999, and ending June	2642
30, 2000, five hundred fifty dollars;	2643

(b) For the period beginning July 1, 2000, and ending June	2644
30, 2002, five hundred fifty dollars plus an amount determined by	2645
multiplying five hundred fifty dollars by the average percentage	2646
change in the consumer price index, not exceeding three per cent,	2647
as determined by the board under former section 742.3716 of the	2648
Revised Code;	2649

(c) For the period beginning July 1, 2002, and the period	2650
beginning the first day of July of each year thereafter and	2651
continuing for the following twelve months, an amount equal to the	2652
monthly amount paid during the prior twelve-month period plus	2653
sixteen dollars and fifty cents.	2654

(2) A surviving spouse of a deceased member of the fund	2655
shall receive a monthly pension of four hundred ten dollars if the	2656
surviving spouse is eligible for a benefit under division (B) or	2657
(D) of section 742.63 of the Revised Code. If the surviving	2658
spouse ceases to be eligible for a benefit under division (B) or	2659
(D) of section 742.63 of the Revised Code, the pension shall be	2660
increased, effective the first day of the first month following	2661
the day on which the surviving spouse ceases to be eligible for	2662
the benefit, to the amount it would be under division (D)(1) of	2663
this section had the spouse never been eligible for a benefit	2664
under division (B) or (D) of section 742.63 of the Revised Code.	2665

(3) A pension paid under this division shall continue during	2666
the natural life of the surviving spouse. Benefits to a deceased	2667
member's surviving spouse that were terminated under a former	2668
version of this section that required termination due to	2669
remarriage and were not resumed prior to September 16, 1998, shall	2670
resume on the first day of the month immediately following receipt	2671
by the board of an application on a form provided by the board.	2672

(4) A surviving spouse of a deceased member of or contributor	2673
to a fund established under former Chapter 521. or 741. of the	2674
Revised Code whose benefit or pension was terminated or not paid	2675
due to remarriage shall receive a monthly pension under division	2676
(D)(1) of this section.	2677

The pension shall commence on the first day of the month	2678
immediately following receipt by the board of a completed	2679
application on a form provided by the board and evidence	2680
acceptable to the board that at the time of death the deceased	2681
spouse was a member of or contributor to a police or firemen's	2682
relief and pension fund established under former Chapter 521. or	2683
741. of the Revised Code and that the surviving spouse's benefits	2684
were terminated or not granted due to remarriage.	2685

(E)(1) Each surviving child of a deceased member of the	2686
fund shall receive a monthly pension until the child attains the	2687
age of eighteen years, or marries, whichever event occurs first. A	2688
pension under this division, however, shall continue to be payable	2689
to a child under age twenty-two who is a student in and attending	2690
an institution of learning or training pursuant to a program	2691
designed to complete in each school year the equivalent of at	2692
least two-thirds of the full-time curriculum requirements of the	2693
institution, as determined by the board. If any surviving child,	2694
regardless of age at the time of the member's death, because of	2695
physical or mental disability, is totally dependent upon the	2696
deceased member for support at the time of death, the child shall	2697
receive a monthly pension under this division during the child's	2698
natural life or until the child has recovered from the disability.	2699

(2) An eligible surviving child shall receive a monthly	2700
pension as follows:	2701

(a) For the period beginning July 1, 2001, and ending June	2702
30, 2002, a monthly pension of one hundred fifty dollars plus the	2703
cost of living increase provided for in former section 743.3720 of	2704
the Revised Code;	2705

(b) For the period beginning July 1, 2002, and ending June	2706
30, 2003, one hundred sixty-three dollars and fifty cents;	2707

(b)(c) For the period beginning July 1, 2003, and the period	2708
beginning the first day of each July thereafter and continuing for	2709
the following twelve months, an amount equal to the monthly amount	2710
paid during the prior twelve-month period plus four dollars and	2711
fifty cents.	2712

(F)(1) If a deceased member of the fund leaves no surviving	2713
spouse or surviving children, but leaves one or two parents	2714
dependent upon the deceased member for support, each parent shall	2715
be paid a monthly pension. The pensions provided for in this	2716
division shall be paid during the natural life of the surviving	2717
parents, or until dependency ceases, or until remarriage,	2718
whichever event occurs first.	2719

(2) Each eligible surviving parent shall be paid a monthly	2720
pension as follows:	2721

(a) For the period ending June 30, 2002, one hundred six	2722
dollars for each parent or two hundred twelve dollars for a sole	2723
dependent parent;	2724

(b) For the period beginning July 1, 2002, and ending June	2725
30, 2003, one hundred nine dollars for each parent or two hundred	2726
eighteen dollars for a sole dependent parent;	2727

(c) For the period beginning July 1, 2003, and the first day	2728
of each July thereafter and continuing for the following twelve	2729
months, an amount equal to the monthly amount paid during the	2730
prior twelve-month period plus three dollars for each parent or	2731
six dollars for a sole dependent parent.	2732

(G) Subject to the provisions of section 742.461 of the	2733
Revised Code, a member of the fund who voluntarily resigns or is	2734
removed from active service in a police or fire department is	2735
entitled to receive an amount equal to the sums deducted from the	2736
member's salary and credited to the member's account in the fund,	2737
except that a member receiving a disability benefit or service	2738
pension is not entitled to receive any return of contributions to	2739
the fund.	2740

(H) On and after January 1, 1970, all pensions shall be	2741
increased in accordance with the following provisions:	2742

(1) A member of the fund who retired prior to January 1,	2743
1967, has attained age sixty-five on January 1, 1970, and was	2744
receiving a pension on December 31, 1969, pursuant to division (B)	2745
or (C)(1) of this section or former division (C)(2), (3), (4), or	2746
(5) of this section, shall have the pension increased by ten per	2747
cent.	2748

(2) The monthly pension payable to eligible surviving	2749
spouses under division (D) of this section shall be increased by	2750
forty dollars for each surviving spouse receiving a pension on	2751
December 31, 1969.	2752

(3) The monthly pension payable to each eligible child under	2753
division (E) of this section shall be increased by ten dollars for	2754
each child receiving a pension on December 31, 1969.	2755

(4) The monthly pension payable to each eligible dependent	2756
parent under division (F) of this section shall be increased by	2757
thirty dollars for each parent receiving a pension on December 31,	2758
1969.	2759

(5) A member of the fund, including a survivor of a member,	2760
who is receiving a pension in accordance with the rules governing	2761
the granting of pensions and benefits in force on April 1, 1947,	2762
that provide an increase in the original pension from time to time	2763
pursuant to changes in the salaries of active members, shall not	2764
be eligible for the benefits provided in this division.	2765

(I) On and after January 1, 1977, a member of the fund who	2766
was receiving a pension or benefit on December 31, 1973, under	2767
division (A), (B), (C)(1), or former division (C)(2) or (7) of	2768
this section shall have the pension or benefit increased as	2769
follows:	2770

(1) If the member's annual pension or benefit is less than	2771
two thousand seven hundred dollars, it shall be increased to three	2772
thousand dollars.	2773

(2) If the member's annual pension or benefit is two	2774
thousand seven hundred dollars or more, it shall be increased by	2775
three hundred dollars.	2776

The following shall not be eligible to receive increased	2777
pensions or benefits as provided in this division:	2778

(a) A member of the fund who is receiving a pension or	2779
benefit in accordance with the rules in force on April 1, 1947,	2780
governing the granting of pensions and benefits, which provide an	2781
increase in the original pension or benefit from time to time	2782
pursuant to changes in the salaries of active members;	2783

(b) A member of the fund who is receiving a pension or	2784
benefit under division (A) or (B) of this section, based on funded	2785
volunteer or funded part-time service, or off-duty disability, or	2786
partial on-duty disability, or early vested service;	2787

(c) A member of the fund who is receiving a pension under	2788
division (C)(1) of this section, based on funded volunteer or	2789
funded part-time service.	2790

(J) On and after July 1, 1977, a member of the fund who was	2791
receiving an annual pension or benefit on December 31, 1973,	2792
pursuant to division (B) of this section, based upon partial	2793
disability, off-duty disability, or early vested service, or	2794
pursuant to former division (C)(3), (5), or (6) of this section,	2795
shall have such annual pension or benefit increased by three	2796
hundred dollars.	2797

The following are not eligible to receive the increase	2798
provided by this division:	2799

(1) A member of the fund who is receiving a pension or	2800
benefit in accordance with the rules in force on April 1, 1947,	2801
governing the granting of pensions and benefits, which provide an	2802
increase in the original pension or benefit from time to time	2803
pursuant to changes in the salaries of active members;	2804

(2) A member of the fund who is receiving a pension or	2805
benefit under division (B) or (C)(2) of this section or former	2806
division (C)(3), (5), or (6) of this section based on volunteer or	2807
part-time service.	2808

(K)(1) Except as otherwise provided in this division, every	2809
person who on July 24, 1986, is receiving an age and service or	2810
disability pension, allowance, or benefit pursuant to this chapter	2811
in an amount less than thirteen thousand dollars a year that is	2812
based upon an award made effective prior to February 28, 1984,	2813
shall receive an increase of six hundred dollars a year or the	2814
amount necessary to increase the pension or benefit to four	2815
thousand two hundred dollars after all adjustments required by	2816
this section, whichever is greater.	2817

(2) Division (K)(1) of this section does not apply to the	2818
following:	2819

(a) A member of the fund who is receiving a pension or	2820
benefit in accordance with rules in force on April 1, 1947, that	2821
govern the granting of pensions and benefits and that provide an	2822
increase in the original pension or benefit from time to time	2823
pursuant to changes in the salaries of active members;	2824

(b) A member of the fund who is receiving a pension or	2825
benefit based on funded volunteer or funded part-time service.	2826

(L) On and after July 24, 1986:

2827

(1) The pension of each person receiving a pension under	2828
division (D) of this section on July 24, 1986, shall be increased	2829
to three hundred ten dollars per month.	2830

(2) The pension of each person receiving a pension under	2831
division (E) of this section on July 24, 1986, shall be increased	2832
to ninety-three dollars per month.	2833

Sec. 742.372.        Sec. 742.371.  A member of the fund who is in the	2834
active service of a police or fire department and is not receiving	2835
a pension or benefit payment from the Ohio police and fire pension	2836
fund shall, in computing years of active service in such	2837
department under division (C) of section 742.37 or section 742.39	2838
of the Revised Code, be given credit for the time previously	2839
served in the active full-time service of anotheran Ohio police	2840
or fire department, provided both of the following occur:	2841

(A) The member was a member of a police or firemen's relief	2842
and pension fund or the Ohio police and fire pension fund during	2843
the full timeentire period for which such active service credit	2844
is claimed.	2845

(B) The member pays into the Ohio police and fire pension	2846
fund the amount received by the member under division (I) of	2847
former section 521.11, division (I) of former section 741.18,	2848
division (I) of former section 741.49, or division (G) of section	2849
742.37 of the Revised Code, with interest compounded annually	2850
thereon at a rate to be determined by the board of trustees of the	2851
Ohio police and fire pension fund, from the date of such receipt	2852
to the date of such deposit, or there is to the member's credit in	2853
the police officers' contribution fund an amount equal to the sums	2854
contributed by the member to such police or firemen's relief and	2855
pension fund or to the Ohio police and fire pension fund for the	2856
full time for which such active service credit is claimed.	2857

Subject to board rules, a member may choose to purchase in	2858
any one payment only part of the credit that may be purchased	2859
under this section.	2860

At the request of the fund, the employer shall certify to the	2861
board the dates the member was in the active service of the police	2862
or fire department.	2863

Sec. 742.45.  (A) The board of trustees of the Ohio police	2864
and fire pension fund may enter into an agreement with insurance	2865
companies, health insuring corporations, or government agencies	2866
authorized to do business in the state for issuance of a policy or	2867
contract of health, medical, hospital, or surgical benefits, or	2868
any combination thereof, for those individuals receiving service	2869
or disability pensions or survivor benefits subscribing to the	2870
plan. Notwithstanding any other provision of this chapter, the	2871
policy or contract may also include coverage for any eligible	2872
individual's spouse and dependent children and for any of the	2873
eligible individual's sponsored dependents as the board considers	2874
appropriate.	2875

If all or any portion of the policy or contract premium is to	2876
be paid by any individual receiving a service, disability, or	2877
survivor pension or benefit, the individual shall, by written	2878
authorization, instruct the board to deduct from the individual's	2879
benefit the premium agreed to be paid by the individual to the	2880
company, corporation, or agency.	2881

The board may contract for coverage on the basis of part or	2882
all of the cost of the coverage to be paid from appropriate funds	2883
of the Ohio police and fire pension fund. The cost paid from the	2884
funds of the Ohio police and fire pension fund shall be included	2885
in the employer's contribution rates provided by sections 742.33	2886
and 742.34 of the Revised Code.	2887

The board may provide for self-insurance of risk or level of	2888
risk as set forth in the contract with the companies,	2889
corporations, or agencies, and may provide through the	2890
self-insurance method specific benefits as authorized by the rules	2891
of the board.	2892

(B) If the board provides health, medical, hospital, or	2893
surgical benefits through any means other than a health insuring	2894
corporation, it shall offer to each individual eligible for the	2895
benefits the alternative of receiving benefits through enrollment	2896
in a health insuring corporation, if all of the following apply:	2897

(1) The health insuring corporation provides health care	2898
services in the geographical area in which the individual lives;	2899

(2) The eligible individual was receiving health care	2900
benefits through a health or a health insuring corporation before	2901
retirement;	2902

(3) The rate and coverage provided by the health insuring	2903
corporation to eligible individuals is comparable to that	2904
currently provided by the board under division (A) of this	2905
section. If the rate or coverage provided by the health insuring	2906
corporation is not comparable to that currently provided by the	2907
board under division (A) of this section, the board may deduct the	2908
additional cost from the eligible individual's monthly benefit.	2909

The health insuring corporation shall accept as an enrollee	2910
any eligible individual who requests enrollment.	2911

The board shall permit each eligible individual to change	2912
from one plan to another at least once a year at a time determined	2913
by the board.	2914

(C) The board shall, beginning the month following receipt	2915
of satisfactory evidence of the payment for coverage, pay monthly	2916
to each recipient of service, disability, or survivor benefits	2917
under the Ohio police and fire pension fund who is eligible for	2918
medical insurance coverage under part B of "The Social Security	2919
Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1395j, as amended,	2920
an amount equal to the basic premiums for such coverage.	2921

(D)(C) The board shall establish by rule requirements for	2922
the coordination of any coverage, payment, or benefit provided	2923
under this section with any similar coverage, payment, or benefit	2924
made available to the same individual by the public employees	2925
retirement system, state teachers retirement system, school	2926
employees retirement system, or state highway patrol retirement	2927
system.	2928

(E)(D) The board shall make all other necessary rules	2929
pursuant to the purpose and intent of this section.	2930

Sec. 3307.01.  As used in this chapter:

2931

(A) "Employer" means the board of education, school	2932
district, governing authority of any community school established	2933
under Chapter 3314. of the Revised Code, college, university,	2934
institution, or other agency within the state by which a teacher	2935
is employed and paid.	2936

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

2937

(1) Any person paid from public funds and employed in the	2938
public schools of the state under any type of contract described	2939
in section 3319.08 of the Revised Code in a position for which the	2940
person is required to have a license issued pursuant to sections	2941
3319.22 to 3319.31 of the Revised Code;	2942

(2) Any person employed as a teacher by a community school	2943
pursuant to Chapter 3314. of the Revised Code;	2944

(3) Any person holding an internship certificate issued	2945
under section 3319.28 of the Revised Code and employed in a public	2946
school in this state;	2947

(4) Any person having a license issued pursuant to sections	2948
3319.22 to 3319.31 of the Revised Code and employed in a public	2949
school in this state in an educational position, as determined by	2950
the state board of education, under programs provided for by	2951
federal acts or regulations and financed in whole or in part from	2952
federal funds, but for which no licensure requirements for the	2953
position can be made under the provisions of such federal acts or	2954
regulations;	2955

(5) Any other teacher or faculty member employed in any	2956
school, college, university, institution, or other agency wholly	2957
controlled and managed, and supported in whole or in part, by the	2958
state or any political subdivision thereof, including Central	2959
state university, Cleveland state university, the university of	2960
Toledo, and the medical college of Ohio at Toledo;	2961

(6) The educational employees of the department of	2962
education, as determined by the state superintendent of public	2963
instruction.	2964

In all cases of doubt, the state teachers retirement board	2965
shall determine whether any person is a teacher, and its decision	2966
shall be final.	2967

"Teacher" does not include any academic or administrative	2968
employee of a public institution of higher education, as defined	2969
in section 3305.01 of the Revised Code, who participates in an	2970
alternative retirement plan established under Chapter 3305. of the	2971
Revised Code.	2972

(C) "Member" means any person included in the membership of	2973
the state teachers retirement system, which shall consist of all	2974
teachers and contributors as defined in divisions (B) and (D) of	2975
this section and all disability benefit recipients, as defined in	2976
section 3307.50 of the Revised Code. However, for purposes of	2977
this chapter, the following persons shall not be considered	2978
members:	2979

(1) A student, intern, or resident who is not a member while	2980
employed part-time by a school, college, or university at which	2981
the student, intern, or resident is regularly attending classes;	2982

(2) A person denied membership pursuant to section 3307.24	2983
of the Revised Code;	2984

(3) An other system retirant, as defined in section 3307.35	2985
of the Revised Code, or a superannuate;	2986

(4) An individual employed in a program established pursuant	2987
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29	2988
U.S.C.A. 1501.	2989

(D) "Contributor" means any person who has an account in the	2990
teachers' savings fund or defined contribution fund.	2991

(E) "Beneficiary" means any person eligible to receive, or	2992
in receipt of, a retirement allowance or other benefit provided by	2993
this chapter.	2994

(F) "Year" means the year beginning the first day of July	2995
and ending with the thirtieth day of June next following, except	2996
that for the purpose of determining final average salary under the	2997
plan described in sections 3307.50 to 3307.79 of the Revised Code,	2998
"year" may mean the contract year.	2999

(G) "Local district pension system" means any school	3000
teachers pension fund created in any school district of the state	3001
in accordance with the laws of the state prior to September 1,	3002
1920.	3003

(H) "Employer contribution" means the amount paid by an	3004
employer, as determined by the employer rate, including the normal	3005
and deficiency rates, contributions, and funds wherever used in	3006
this chapter.	3007

(I) "Five years of service credit" means employment covered	3008
under this chapter and employment covered under a former	3009
retirement plan operated, recognized, or endorsed by a college,	3010
institute, university, or political subdivision of this state	3011
prior to coverage under this chapter.	3012

(J) "Actuary" means the actuarial consultant to the state	3013
teachers retirement board, who shall be either of the following:	3014

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

3015

(2) A firm, partnership, or corporation of which at least	3016
one person is a member of the American academy of actuaries.	3017

(K) "Fiduciary" means a person who does any of the	3018
following:	3019

(1) Exercises any discretionary authority or control with	3020
respect to the management of the system, or with respect to the	3021
management or disposition of its assets;	3022

(2) Renders investment advice for a fee, direct or indirect,	3023
with respect to money or property of the system;	3024

(3) Has any discretionary authority or responsibility in the	3025
administration of the system.	3026

(L)(1) Except as provided in this division, "compensation"	3027
means all salary, wages, and other earnings paid to a teacher by	3028
reason of the teacher's employment, including compensation paid	3029
pursuant to a supplemental contract. The salary, wages, and other	3030
earnings shall be determined prior to determination of the amount	3031
required to be contributed to the teachers' savings fund or	3032
defined contribution fund under section 3307.26 of the Revised	3033
Code and without regard to whether any of the salary, wages, or	3034
other earnings are treated as deferred income for federal income	3035
tax purposes.	3036

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

3037

(a) Payments for accrued but unused sick leave or personal	3038
leave, including payments made under a plan established pursuant	3039
to section 124.39 of the Revised Code or any other plan	3040
established by the employer;	3041

(b) Payments made for accrued but unused vacation leave,	3042
including payments made pursuant to section 124.13 of the Revised	3043
Code or a plan established by the employer;	3044

(c) Payments made for vacation pay covering concurrent	3045
periods for which other salary, compensation, or benefits under	3046
this chapter are paid;	3047

(d) Amounts paid by the employer to provide life insurance,	3048
sickness, accident, endowment, health, medical, hospital, dental,	3049
or surgical coverage, or other insurance for the teacher or the	3050
teacher's family, or amounts paid by the employer to the teacher	3051
in lieu of providing the insurance;	3052

(e) Incidental benefits, including lodging, food, laundry,	3053
parking, or services furnished by the employer, use of the	3054
employer's property or equipment, and reimbursement for	3055
job-related expenses authorized by the employer, including moving	3056
and travel expenses and expenses related to professional	3057
development;	3058

(f) Payments made by the employer in exchange for a member's	3059
waiver of a right to receive any payment, amount, or benefit	3060
described in division (L)(2) of this section;	3061

(g) Payments by the employer for services not actually	3062
rendered;	3063

(h) Any amount paid by the employer as a retroactive	3064
increase in salary, wages, or other earnings, unless the increase	3065
is one of the following:	3066

(i) A retroactive increase paid to a member employed by a	3067
school district board of education in a position that requires a	3068
license designated for teaching and not designated for being an	3069
administrator issued under section 3319.22 of the Revised Code	3070
that is paid in accordance with uniform criteria applicable to all	3071
members employed by the board in positions requiring the licenses;	3072

(ii) A retroactive increase paid to a member employed by a	3073
school district board of education in a position that requires a	3074
license designated for being an administrator issued under section	3075
3319.22 of the Revised Code that is paid in accordance with	3076
uniform criteria applicable to all members employed by the board	3077
in positions requiring the licenses;	3078

(iii) A retroactive increase paid to a member employed by a	3079
school district board of education as a superintendent that is	3080
also paid as described in division (L)(2)(h)(i) of this section;	3081

(iv) A retroactive increase paid to a member employed by an	3082
employer other than a school district board of education in	3083
accordance with uniform criteria applicable to all members	3084
employed by the employer.	3085

(i) Payments made to or on behalf of a teacher that are in	3086
excess of the annual compensation that may be taken into account	3087
by the retirement system under division (a)(17) of section 401 of	3088
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	3089
401(a)(17), as amended. For a teacher who first establishes	3090
membership before July 1, 1996, the annual compensation that may	3091
be taken into account by the retirement system shall be determined	3092
under division (d)(3) of section 13212 of the "Omnibus Budget	3093
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.	3094

(j) Payments made under division (B), (C), or (E) of section	3095
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	3096
No. 3 of the 119th general assembly, Section 3 of Amended	3097
Substitute Senate Bill No. 164 of the 124th general assembly, or	3098
Amended Substitute House Bill No. 405 of the 124th general	3099
assembly;	3100

(k) Anything of value received by the teacher that is based	3101
on or attributable to retirement or an agreement to retire.	3102

(3) The retirement board shall determine by rule both of the	3103
following:	3104

(a) Whether particular forms of earnings are included in any	3105
of the categories enumerated in this division;	3106

(b) Whether any form of earnings not enumerated in this	3107
division is to be included in compensation.	3108

Decisions of the board made under this division shall be	3109
final.	3110

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

3111

(1) A former teacher receiving from the system a retirement	3112
allowance under section 3307.58 or 3307.59 of the Revised Code;	3113

(2) A former teacher receiving anya benefit from the system	3114
under a plan established under section 3307.81 of the Revised	3115
Code, except that "superannuate" does not include a former teacher	3116
who is receiving a benefit based on disability under a plan	3117
established under section 3307.81 of the Revised Code.	3118

For purposes of section 3307.35 of the Revised Code,	3119
"superannuate" also means a former teacher receiving from the	3120
system a combined service retirement benefit paid in accordance	3121
with section 3307.57 of the Revised Code, regardless of which	3122
retirement system is paying the benefit.	3123

Sec. 3307.39.  (A) The state teachers retirement board may	3124
enter into an agreement with insurance companies, health insuring	3125
corporations, or government agencies authorized to do business in	3126
the state for issuance of a policy or contract of health, medical,	3127
hospital, or surgical benefits, or any combination thereof, for	3128
those individuals receiving, under the plan described in sections	3129
3307.50 to 3307.79 of the Revised Code, service retirement or a	3130
disability or survivor benefit who subscribe to the plan.	3131
Notwithstanding any other provision of this chapter, the policy or	3132
contract may also include coverage for any eligible individual's	3133
spouse and dependent children and for any of the individual's	3134
sponsored dependents as the board considers appropriate. If all	3135
or any portion of the policy or contract premium is to be paid by	3136
any individual receiving service retirement or a disability or	3137
survivor benefit, the individual shall, by written authorization,	3138
instruct the board to deduct the premium agreed to be paid by the	3139
individual to the companies, corporations, or agencies.	3140

The board may contract for coverage on the basis of part or	3141
all of the cost of the coverage to be paid from appropriate funds	3142
of the state teachers retirement system. The cost paid from the	3143
funds of the system shall be included in the employer's	3144
contribution rate provided by section 3307.28 of the Revised Code.	3145

The board may enter into an agreement under this division for	3146
coverage of recipients of benefits under a plan established under	3147
section 3307.81 of the Revised Code if the plan selected includes	3148
health, medical, hospital, or surgical benefits, or any	3149
combination thereof. The board may contract for coverage on the	3150
basis that the cost of the coverage will be paid by the recipient	3151
or by the plan to which the recipient contributed under this	3152
chapter. The board may offer to recipients plans that provide for	3153
different levels of coverage or for prepayment of the cost of	3154
coverage.	3155

The board may provide for self-insurance of risk or level of	3156
risk as set forth in the contract with the companies,	3157
corporations, or agencies, and may provide through the	3158
self-insurance method specific benefits as authorized by the rules	3159
of the board.	3160

(B) If the board provides health, medical, hospital, or	3161
surgical benefits through any means other than a health insuring	3162
corporation, it shall offer to each individual eligible for the	3163
benefits the alternative of receiving benefits through enrollment	3164
in a health insuring corporation, if all of the following apply:	3165

(1) The health insuring corporation provides health care	3166
services in the geographical area in which the individual lives;	3167

(2) The eligible individual was receiving health care	3168
benefits through a health maintenance organization or a health	3169
insuring corporation before retirement;	3170

(3) The rate and coverage provided by the health insuring	3171
corporation to eligible individuals is comparable to that	3172
currently provided by the board under division (A) of this	3173
section. If the rate or coverage provided by the health insuring	3174
corporation is not comparable to that currently provided by the	3175
board under division (A) of this section, the board may deduct the	3176
additional cost from the eligible individual's monthly benefit.	3177

The health insuring corporation shall accept as an enrollee	3178
any eligible individual who requests enrollment.	3179

The board shall permit each eligible individual to change	3180
from one plan to another at least once a year at a time determined	3181
by the board.	3182

(C) The board shall make a monthly payment to each recipient	3183
of service retirement, or a disability or survivor benefit under	3184
the plan described in sections 3307.50 to 3307.79 of the Revised	3185
Code who is eligible for insurance coverage under part B of "The	3186
Social Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A.	3187
1395j, as amended, and may make a monthly payment to a recipient	3188
of benefits under a plan established under section 3307.81 of the	3189
Revised Code who is eligible for that insurance coverage if the	3190
monthly payments are funded through the plan selected by the	3191
recipient. The payment shall be the greater of the following:	3192

(1) Twenty-nine dollars and ninety cents;

3193

(2) An amount determined by multiplying the basic premium	3194
for the coverage by a percentage, not exceeding ninety per cent,	3195
determined by multiplying the years of service used in calculating	3196
the service retirement or benefit or, in the case of a recipient	3197
of benefits under a plan established under section 3307.81 of the	3198
Revised Code, the participant's years of service by a percentage	3199
determined by the board not exceeding three per cent.	3200

The board shall make all payments under this division	3201
beginning the month following receipt of satisfactory evidence of	3202
the payment for the coverage.	3203

(D)(C) The board shall establish by rule requirements for	3204
the coordination of any coverage, payment, or benefit provided	3205
under this section or section 3307.61 of the Revised Code with any	3206
similar coverage, payment, or benefit made available to the same	3207
individual by the public employees retirement system, Ohio police	3208
and fire pension fund, school employees retirement system, or	3209
state highway patrol retirement system.	3210

(E)(D) The board shall make all other necessary rules	3211
pursuant to the purpose and intent of this section.	3212

Sec. 3307.51.  (A) The state teachers retirement board shall	3213
have prepared annually by or under the supervision of an actuary	3214
an actuarial valuation of the pension assets, liabilities, and	3215
funding requirements of the plan described in sections 3307.50 to	3216
3307.79 of the Revised Code. The actuary shall complete the	3217
valuation in accordance with actuarial standards of practice	3218
promulgated by the actuarial standards board of the American	3219
academy of actuaries and prepare a report of the valuation. The	3220
report shall include all of the following:	3221

(1) A summary of the benefit provisions evaluated;

3222

(2) A summary of the census data and financial information	3223
used in the valuation;	3224

(3) A description of the actuarial assumptions, actuarial	3225
cost method, and asset valuation method used in the valuation,	3226
including a statement of the assumed rate of payroll growth and	3227
assumed rate of growth or decline in the number of members	3228
contributing to the retirement system;	3229

(4) A summary of findings that includes a statement of the	3230
actuarial accrued pension liabilities and unfunded actuarial	3231
accrued pension liabilities;	3232

(5) A schedule showing the effect of any changes in the	3233
benefit provisions, actuarial assumptions, or cost methods since	3234
the last annual actuarial valuation;	3235

(6) A statement of whether contributions to the retirement	3236
system are expected to be sufficient to satisfy the funding	3237
objectives established by the board.	3238

The board shall submit the report to the Ohio retirement	3239
study council and the standing committees of the house of	3240
representatives and the senate with primary responsibility for	3241
retirement legislation not later than the first day of January	3242
following the year for which the valuation was made.	3243

(B) At such times as the state teachers retirement board	3244
determines, and at least once in each quinquennial period, the	3245
board shall have prepared by or under the supervision of an	3246
actuary an actuarial investigation of the mortality, service, and	3247
other experience of the members, retirants, and beneficiaries of	3248
the system, and other system retirants as defined in section	3249
3307.35 of the Revised Code to update the actuarial assumptions	3250
used in the actuarial valuation required by division (A) of this	3251
section. The actuary shall prepare a report of the actuarial	3252
investigation. The report shall be prepared and any recommended	3253
changes in actuarial assumptions shall be made in accordance with	3254
the actuarial standards of practice promulgated by the actuarial	3255
standards board of the American academy of actuaries. The report	3256
shall include all of the following:	3257

(1) A summary of relevant decrement and economic assumption	3258
experience observed over the period of the investigation;	3259

(2) Recommended changes in actuarial assumptions to be used	3260
in subsequent actuarial valuations required by division (A) of	3261
this section;	3262

(3) A measurement of the financial effect of the recommended	3263
changes in actuarial assumptions.	3264

The board shall submit the report to the Ohio retirement	3265
study council and the standing committees of the house of	3266
representatives and the senate with primary responsibility for	3267
retirement legislation not later than the first day of May	3268
following the last fiscal year of the period the report covers.	3269

(C) The board may at any time request the actuary to make	3270
any other studies or actuarial valuations to determine the	3271
adequacy of the normal and deficiency rates of contribution	3272
provided by section 3307.28 of the Revised Code, and those rates	3273
may be adjusted by the board, as recommended by the actuary,	3274
effective as of the first of any year thereafter.	3275

(D) The board shall have prepared by or under the	3276
supervision of an actuary an actuarial analysis of any introduced	3277
legislation expected to have a measurable financial impact on the	3278
retirement system. The actuarial analysis shall be completed in	3279
accordance with the actuarial standards of practice promulgated by	3280
the actuarial standards board of the American academy of	3281
actuaries. The actuary shall prepare a report of the actuarial	3282
analysis, which shall include all of the following:	3283

(1) A summary of the statutory changes that are being	3284
evaluated;	3285

(2) A description of or reference to the actuarial	3286
assumptions and actuarial cost method used in the report;	3287

(3) A description of the participant group or groups	3288
included in the report;	3289

(4) A statement of the financial impact of the legislation,	3290
including the resulting increase, if any, in the employer normal	3291
cost percentage; the increase, if any, in actuarial accrued	3292
liabilities; and the per cent of payroll that would be required to	3293
amortize the increase in actuarial accrued liabilities as a level	3294
per cent of covered payroll for all active members over a period	3295
not to exceed thirty years;	3296

(5) A statement of whether the scheduled contributions to	3297
the system after the proposed change is enacted are expected to be	3298
sufficient to satisfy the funding objectives established by the	3299
board.	3300

Not later than sixty days from the date of introduction of	3301
the legislation, the board shall submit a copy of the actuarial	3302
analysis to the legislative budget office of the legislative	3303
service commission, the standing committees of the house of	3304
representatives and the senate with primary responsibility for	3305
retirement legislation, and the Ohio retirement study council.	3306

(E) The board shall have prepared annually a report giving a	3307
full accounting of the revenues and costs relating to the	3308
provision of benefits under sections 3307.39 and 3307.61 of the	3309
Revised Code. The report shall be made as of June 30, 1997, and	3310
the thirtieth day of June of each year thereafter. The report	3311
shall include the following:	3312

(1) A description of the statutory authority for the	3313
benefits provided;	3314

(2) A summary of the benefits;

3315

(3) A summary of the eligibility requirements for the	3316
benefits;	3317

(4) A statement of the number of participants eligible for	3318
the benefits;	3319

(5) A description of the accounting, asset valuation, and	3320
funding method used to provide the benefits;	3321

(6) A statement of the net assets available for the	3322
provisions of benefits as of the last day of the fiscal year;	3323

(7) A statement of any changes in the net assets available	3324
for the provision of benefits, including participant and employer	3325
contributions, net investment income, administrative expenses, and	3326
benefits provided to participants, as of the last day of the	3327
fiscal year;	3328

(8) For the last six consecutive fiscal years, a schedule of	3329
the net assets available for the benefits, the annual cost of	3330
benefits, administrative expenses incurred, and annual employer	3331
contributions allocated for the provision of benefits;	3332

(9) A description of any significant changes that affect the	3333
comparability of the report required under this division;	3334

(10) A statement of the amount paid under division (C)(B) of	3335
section 3307.39 of the Revised Code.	3336

The board shall submit the report to the Ohio retirement	3337
study council and the standing committees of the house of	3338
representatives and the senate with primary responsibility for	3339
retirement legislation not later than the thirty-first day of	3340
December following the year for which the report was made.	3341

Sec. 3307.56.  (A)(1) Subject to sections 3307.37 and	3342
3307.561 of the Revised Code and except as provided in division	3343
(B)(2) of this section, a member participating in the plan	3344
described in sections 3307.50 to 3307.79 of the Revised Code who	3345
ceases to be a teacher for any cause other than death, retirement,	3346
receipt of a disability benefit, or current employment in a	3347
position in which the member has elected to participate in an	3348
alternative retirement plan under section 3305.05 of the Revised	3349
Code, upon application, shall be paid the accumulated	3350
contributions standing to the credit of the member's individual	3351
account in the teachers' savings fund plus an amount calculated in	3352
accordance with section 3307.563 of the Revised Code. If the	3353
member or the member's legal representative cannot be found within	3354
ten years after the member ceased making contributions pursuant to	3355
section 3307.26 of the Revised Code, the accumulated contributions	3356
may be transferred to the guarantee fund and thereafter paid to	3357
the member, to the member's beneficiaries, or to the member's	3358
estate, upon proper application.	3359

(2) A member described in division (A)(1) of this section	3360
who is married at the time of application for payment and is	3361
eligible for age and service retirement under section 3307.58 or	3362
3307.59 of the Revised Code shall submit with the application a	3363
written statement by the member's spouse attesting that the spouse	3364
consents to the payment of the member's accumulated contributions.	3365
Consent shall be valid only if it is signed and witnessed by a	3366
notary public. If the statement is not submitted under this	3367
division, the application shall be considered an application for	3368
service retirement and shall be subject to division (F)(G)(1) of	3369
section 3307.60 of the Revised Code.	3370

The state teachers retirement board may waive the requirement	3371
of consent if the spouse is incapacitated or cannot be located, or	3372
for any other reason specified by the board. Consent or waiver is	3373
effective only with regard to the spouse who is the subject of the	3374
consent or waiver.	3375

(B) This division applies to any member who is employed in a	3376
position in which the member has elected under section 3305.05 of	3377
the Revised Code to participate in an alternative retirement plan	3378
and due to the election ceases to be a teacher for the purposes	3379
of that position.	3380

Subject to sections 3307.37 and 3307.561 of the Revised Code,	3381
the state teachers retirement system shall do the following:	3382

(1) On receipt of a certified copy of an election under	3383
section 3305.05 of the Revised Code, pay, in accordance with	3384
section 3305.051 of the Revised Code, the amount described in that	3385
section to the appropriate provider;	3386

(2) If a member has accumulated contributions, in addition	3387
to those subject to division (B)(1) of this section, standing to	3388
the credit of a member's individual account and is not otherwise	3389
in a position in which the member is considered a teacher for the	3390
purposes of that position, pay, to the provider the member	3391
selected pursuant to section 3305.05 of the Revised Code, the	3392
accumulated contributions standing to the credit of the member's	3393
individual account in the teachers' saving fund plus an amount	3394
calculated in accordance with section 3307.80 of the Revised Code.	3395
The payment shall be made on the member's application.	3396

(C) Payment of a member's accumulated contributions under	3397
division (B) of this section cancels the member's total service	3398
credit in the state teachers retirement system. A member whose	3399
accumulated contributions are paid to a provider pursuant to	3400
division (B) of this section is forever barred from claiming or	3401
purchasing service credit under the state teachers retirement	3402
system for the period of employment attributable to those	3403
contributions.	3404

Sec. 3307.561. A(A) Except as provided in division (B) of	3405
this section, a member of the state teachers retirement system	3406
participating in the plan described in sections 3307.50 to 3307.79	3407
of the Revised Code who has ceased to be a teacher, and who is	3408
also a member of either the public employees retirement system or	3409
school employees retirement system, or both, may not withdraw the	3410
member's accumulated contributions unless the.	3411

(B) On application, the state teachers retirement board	3412
shall pay a member described in division (A) of this section the	3413
member's accumulated contributions if either of the following	3414
applies:	3415

(1) The member also withdraws the member's contributions	3416
from the other systems.	3417

(2) The member is a participant in a plan established under	3418
section 145.81 or 3309.81 of the Revised Code and has withdrawn	3419
the member's contributions under plans described in sections	3420
145.201 to 145.79 and 3309.18 to 3309.70 of the Revised Code.	3421

Sec. 3307.563.  For the purposes of this section, "service	3422
credit" includes only service credit obtained pursuant to sections	3423
3307.53, 3307.71, 3307.72, and 3307.77 of the Revised Code.	3424

(A) The state teachers retirement system shall add to a	3425
member's accumulated contributions to be paid under section	3426
3307.56 or 3307.562 of the Revised Code an amount paid from the	3427
employers' trust fund equal to one of the following:	3428

(1) If the member has less than three full years of service	3429
credit, an amount equal to interest on the member's accumulated	3430
contributions, compounded annually, at a rate not greater than	3431
four per cent established by the board;	3432

(2) If the member has three or more full years of service	3433
credit, but less than five full years, an amount equal to interest	3434
on the member's accumulated contributions, compounded annually, at	3435
a rate not greater than six per cent established by the board;	3436

(3) If the member has five or more full years of service	3437
credit, the sum of the following amounts:	3438

(a) An amount equal to interest on the member's accumulated	3439
contributions, compounded annually, at a rate not greater than six	3440
per cent established by the board;	3441

(b) An amount equal to fifty per cent of the sum of the	3442
member's contributions under section 3307.26 and division (C) of	3443
section 3307.77 of the Revised Code plus interest on that amount	3444
at a rate not greater than six per cent established by the board.	3445

Interest for each year included in the calculation under this	3446
section shall be calculated from the first day of the following	3447
year to the last day of the month preceding payment under section	3448
3307.56 or 3307.562 of the Revised Code.	3449

(B) Notwithstanding sections 3307.56 and 3307.562 of the	3450
Revised Code, neither the beneficiaries, survivors, nor estate of	3451
a deceased member who was granted disability benefits prior to	3452
death is eligible for the payment of any amount calculated under	3453
this section.	3454

Sec. 3307.58.  Any member participating in the plan described	3455
in sections 3307.50 to 3307.79 of the Revised Code who has five	3456
years of service credit and has attained age sixty, or who has	3457
twenty-five years of service credit and has attained age	3458
fifty-five, or who has thirty years of service credit shall be	3459
granted service retirement after filing with the state teachers	3460
retirement board a completed application on a form approved by the	3461
board.	3462

(A) Service retirement shall be effective on the first day	3463
of the month next following the later of:	3464

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

3465

(2) The attainment of minimum age or service credit	3466
eligibility for benefits provided under this section.	3467

Except as provided in division (E) of this section, the	3468
service retirement benefit shall be the greater of the benefits	3469
provided in divisions (B) and (D) of this section.	3470

(B) Subject to any adjustment made under division (C) of	3471
this section, the annual single lifetime benefit of a member shall	3472
be the greater of the amounts determined by the member's Ohio	3473
service credit multiplied by one of the following:	3474

(1) Eighty-six dollars;

3475

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

3476

(i) For each of the first thirty years of Ohio service	3477
credit, two and two-tenths per cent of the member's final average	3478
salary or, subject to the limitation described in division	3479
(B)(2)(b) of this section, two and five-tenths per cent of the	3480
member's final average salary if the member has thirty-five or	3481
more years of service credit under section 3307.53, 3307.57,	3482
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or	3483
3307.771 of the Revised Code, division (A)(2) or (B) of former	3484
section 3307.513 of the Revised Code, former section 3307.514 of	3485
the Revised Code, section 3307.72 of the Revised Code earned after	3486
July 1, 1978, or any combination of service credit under those	3487
sections;	3488

(ii) For each year or fraction of a year of Ohio service	3489
credit in excess of thirty years, two and two-tenths per cent of	3490
the member's final average salary or, subject to the limitation	3491
described in division (B)(2)(b) of this section, if the member has	3492
more than thirty years service credit under section 3307.53,	3493
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77,	3494
or 3307.771 of the Revised Code, division (A)(2) or (B) of former	3495
section 3307.513 of the Revised Code, former section 3307.514 of	3496
the Revised Code, section 3307.72 of the Revised Code earned after	3497
July 1, 1978, or any combination of service credit under those	3498
sections, the per cent of final average salary shown in the	3499
following schedule for each corresponding year or fraction of a	3500
year of service credit under those sections that is in excess of	3501
thirty years:	3502

For purposes of this schedule, years of service credit shall be	3512
rounded to the nearest one-hundredth of a year.	3513

(b) For purposes of division (B)(2)(a) of this section, a	3514
percentage of final average salary in excess of two and two-tenths	3515
per cent shall be applied to service credit under section 3307.57	3516
of the Revised Code only if the service credit was established	3517
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3518
3309.021, 3309.022, or 3309.47, or of the Revised Code or restored	3519
under section 145.31 or 3309.26 of the Revised Code.	3520

(C) The annual single lifetime benefit of a member	3521
determined under division (B) of this section shall be adjusted by	3522
the greater per cent shown in the following schedule opposite the	3523
member's attained age or Ohio service credit.	3524

Members shall vest the right to a benefit in accordance with	3538
the following schedule, based on the member's attained age by	3539
September 1, 1976:	3540

The annual single lifetime benefit determined under division	3549
(B) of this section shall not exceed the lesser of one hundred per	3550
cent of the final average salary or the limit established by	3551
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	3552
2085, 26 U.S.C.A. 415, as amended.	3553

(D) The annual single lifetime benefit of a member shall not	3554
exceed the lesser of the sum of the following amounts or the limit	3555
established by section 415 of the "Internal Revenue Code of 1986,"	3556
100 Stat. 2085, 26 U.S.C.A. 415, as amended:	3557

(1) An annuity with a reserve equal to the member's	3558
accumulated contributions;	3559

(2) A pension equal to the amount in division (D)(1) of this	3560
section;	3561

(3) An additional pension of forty dollars annually	3562
multiplied by the number of years of prior and military service	3563
credit, except years of credit purchased under section 3307.751 or	3564
3307.752 of the Revised Code;	3565

(4) An additional basic annual pension of one hundred eighty	3566
dollars, provided the member had ten or more years of Ohio service	3567
credit as of October 1, 1956, except that the additional basic	3568
annual pension shall not exceed the sum of the annual benefits	3569
provided by divisions (D)(1), (2), and (3) of this section.	3570

(E) Benefits determined under this section shall be paid as	3571
provided in section 3307.60 of the Revised Code.	3572

Sec. 3307.60.  (A) Upon application for retirement as	3573
provided in section 3307.58 or 3307.59 of the Revised Code, the	3574
retirant may elect a plan of payment under this division or, on	3575
and after the date specified in division (B) of this section, a	3576
plan of payment under that division. Under this division, the	3577
retirant may elect to receive a single lifetime benefit, or may	3578
elect to receive the actuarial equivalent of the retirant's	3579
benefit in a lesser amount, payable for life, and continuing after	3580
death to a beneficiary under one of the following optional plans:	3581

(1) Option 1. The retirant's lesser benefit shall be paid	3582
for life to the sole beneficiary named at retirement.	3583

(2) Option 2. Some other portion of the retirant's benefit	3584
shall be paid for life to the sole beneficiary named at	3585
retirement. The beneficiary's monthly amount shall not exceed the	3586
monthly amount payable to the retirant during the retirant's	3587
lifetime.	3588

(3) Option 3. The retirant's lesser benefit established as	3589
provided under option 1 or option 2 shall be paid for life to the	3590
sole beneficiary named at retirement, except that in the event of	3591
the death of the sole beneficiary or termination of a marital	3592
relationship between the retirant and the sole beneficiary the	3593
retirant may elect to return to a single lifetime benefit	3594
equivalent as determined by the state teachers retirement board,	3595
if, in the case of termination of a marital relationship, the	3596
election is made with the written consent of the beneficiary or	3597
pursuant to an order of the court with jurisdiction over	3598
termination of the marital relationship.	3599

(4) Option 4. Upon the retirant's death before the	3600
expiration of a certain period from the retirement date and	3601
elected by the retirant, and approved by the board, the retirant's	3602
benefit shall be continued for the remainder of such period to the	3603
beneficiary. Monthly benefits shall not be paid to joint	3604
beneficiaries, but they may receive the present value of any	3605
remaining payments in a lump sum settlement. If all beneficiaries	3606
die before the expiration of the certain period, the present value	3607
of all payments yet remaining in such period shall be paid to the	3608
estate of the beneficiary last receiving.	3609

(5) Option 5. A plan of payment established by the state	3610
teachers retirement board combining any of the features of options	3611
1, 2, and 4.	3612

(B) Beginning on a date selected by the state teachers	3613
retirement board, which shall be not later than July 1, 2004, a	3614
retirant may elect, in lieu of a plan of payment under division	3615
(A) of this section, a plan consisting of both of the following:	3616

(1) A lump sum in an amount the member designates that	3617
constitutes a portion of the member's single lifetime benefit;	3618

(2) Either of the following:

3619

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

3620

(b) The actuarial equivalent of the remainder of the	3621
retirant's benefit in a lesser amount, payable for life, and	3622
continuing after death to a beneficiary under one of the options	3623
described in divisions (A)(1) to (5) of this section.	3624

In the event of the death of the sole beneficiary or	3625
termination of a marital relationship between the retirant and the	3626
sole beneficiary, the retirant may elect to receive the actuarial	3627
equivalent of the remainder of the retirant's single lifetime	3628
benefit except that, in the case of termination of a marital	3629
relationship, the election may be made only with the written	3630
consent of the beneficiary or pursuant to an order of the court	3631
with jurisdiction over termination of the marital relationship.	3632

The amount designated by the member under division (B)(1) of	3633
this section shall be not less than six times and not more than	3634
thirty-six times the monthly amount that would be payable to the	3635
member as a single lifetime benefit and shall not result in a	3636
monthly allowance that is less than fifty per cent of that amount.	3637

(C) Until the first payment is made to a former member under	3638
section 3307.58 or 3307.59 of the Revised Code, the former member	3639
may change the selection of a plan of payment. If death occurs	3640
prior to an election of a plan of payment	3641

(D)(1) If a deceased member was eligible for but had not yet	3642
been awarded a service retirement benefit under section 3307.58 or	3643
3307.59 of the Revised Code at the time of death, option 1 as	3644
provided for in division (A)(1) of this section shall be paid to	3645
the spouse or other sole dependent beneficiary.	3646

(2) Beginning on a date selected by the board, which shall be	3647
not later than July 1, 2004, the spouse or sole beneficiary may	3648
elect, in lieu of option 1, a plan of payment consisting of both	3649
of the following:	3650

(a) A lump sum in an amount the spouse or other sole	3651
dependent beneficiary designates that constitutes a portion of the	3652
retirant's single life annuity;	3653

(b) The actuarial equivalent of the remainder of the	3654
retirant's single life annuity paid in a lesser amount for life to	3655
the spouse or other sole dependent beneficiary.	3656

The amount designated by the spouse or other sole dependent	3657
beneficiary under division (D)(2)(a) of this section shall be not	3658
less than six times and not more than thirty-six times the monthly	3659
amount that would be payable as the retirant's single life annuity	3660
and shall not result in a monthly allowance that is less than	3661
fifty per cent of that monthly amount.	3662

(C)(E) If the total benefit paid under this section is less	3663
than the balance in the teachers' savings fund, the difference	3664
shall be paid to the beneficiary provided under division (D) of	3665
section 3307.562 of the Revised Code.	3666

(D)(F) In the case of a retirant who elected an optional	3667
plan prior to September 15, 1989:	3668

(1) The death of the spouse or other designated beneficiary	3669
following retirement shall, at the election of the retirant,	3670
cancel any optional plan selected at retirement to provide	3671
continuing lifetime benefits to the spouse or other beneficiary	3672
and return the retirant to a single lifetime benefit equivalent as	3673
determined by the board.	3674

(2) A divorce, annulment, or marriage dissolution shall, at	3675
the election of the retirant, cancel any optional plan selected at	3676
retirement to provide continuing lifetime benefits to the spouse	3677
as designated beneficiary and return the retirant to a single	3678
lifetime benefit equivalent as determined by the board if the	3679
election is made with the written consent of the beneficiary or	3680
pursuant to an order of a court of common pleas or the court of	3681
another state with jurisdiction over the termination of the	3682
marriage.	3683

(E)(G) Following marriage or remarriage, a retirant may	3684
elect a new optional plan of payment based on the actuarial	3685
equivalent of the retirant's single lifetime benefit, as	3686
determined by the board, except that if the retirant is receiving	3687
a retirement allowance under an optional plan that provides for	3688
continuation of benefits after death to a former spouse, the	3689
retirant may elect a new optional plan of payment only with the	3690
written consent of the former spouse or pursuant to an order of	3691
the court with jurisdiction over the termination of the marriage.	3692
Such plan shall become effective the first of the month following	3693
an application on a form approved by the board.	3694

(F)(H)(1) Unless one of the following occurs, an application	3695
for service retirement made pursuant to section 3307.58 or 3307.59	3696
of the Revised Code by a married person shall be considered an	3697
election of a benefit under option 2 as provided for in division	3698
(A)(2) of this section under which one-half of the lesser benefit	3699
payable during the life of the retirant will be paid after death	3700
to the retirant's spouse for life as sole beneficiary:	3701

(a) The retirant selects an optional plan under division (A)	3702
of this section providing for payment after death to the	3703
retirant's spouse for life as sole beneficiary of more than	3704
one-half of the lesser benefit payable during the life of the	3705
retirant.	3706

(b) The retirant submits to the retirement board a written	3707
statement signed by the spouse attesting that the spouse consents	3708
to the retirant's election to receive a single lifetime annuity or	3709
a payment under an optional benefit plan under which after the	3710
death of the retirant the surviving spouse will receive less than	3711
one-half of the lesser benefit payable during the life of the	3712
retirant.	3713

(2) An application for retirement shall include an	3714
explanation of all of the following:	3715

(a) That, if the member is married, unless the spouse	3716
consents to another plan of payment, the member's retirement	3717
allowance will be paid under "option 2" as provided for in	3718
division (A)(2) of this section and consist of the actuarial	3719
equivalent of the member's retirement allowance in a lesser amount	3720
payable for life and one-half of the lesser allowance continuing	3721
after death to the surviving spouse for the life of the spouse;	3722

(b) A description of the alternative plans of payment	3723
available with the consent of the spouse;	3724

(c) That the spouse may consent to another plan of payment	3725
and the procedure for giving consent;	3726

(d) That consent is irrevocable once notice of consent is	3727
filed with the board.	3728

Consent shall be valid only if it is signed, in writing, and	3729
witnessed by a notary public.	3730

(3) If the retirant does not select an optional plan of	3731
payment as described in division (F)(H)(1)(a) of this section and	3732
the board does not receive the written statement provided for in	3733
division (F)(H)(1)(b) of this section, it shall determine and pay	3734
the retirement allowance in accordance with this division, except	3735
that the board may provide by rule for waiver by the board of the	3736
statement and payment of the benefits other than in accordance	3737
with this division or payment under section 3307.56 of the Revised	3738
Code if the retirant is unable to obtain the statement due to	3739
absence or incapacity of the spouse or other cause specified by	3740
the board.	3741

(G)(I) For the purpose of determining actuarial equivalence	3742
under this section, on the advice of an actuary employed by the	3743
board, the board shall adopt mortality tables that may take into	3744
consideration the membership experience of the state teachers	3745
retirement system and may also include the membership experience	3746
of the public employees retirement system and the school employees	3747
retirement system.	3748

Sec. 3307.761.  (A) As used in this section and section	3749
3307.765 of the Revised Code:	3750

(1) "Uniform retirement system" or "uniform system" means	3751
the Ohio police and fire pension fund or state highway patrol	3752
retirement system.	3753

(2) "Military service credit" means credit purchased or	3754
obtained under this chapter or Chapter 742. or 5505. of the	3755
Revised Code for service in the armed forces of the United States.	3756

(B) A member of the state teachers retirement system	3757
participating in the plan described in sections 3307.50 to 3307.79	3758
of the Revised Code who has contributions on deposit with a	3759
uniform retirement system shall, in computing years of total	3760
service, be given full credit for service credit earned under	3761
Chapter 742. or 5505. of the Revised Code or for military service	3762
credit if a transfer to the state teachers retirement system is	3763
made under this division. At the request of the member, the	3764
uniform system shall transfer to the state teachers retirement	3765
system, for each year of service, the sum of the following:	3766

(1) An amount equal to the member's accumulated	3767
contributions to the uniform system and any payments by the	3768
member for military service credit;	3769

(2) An amount equal to the lesser of the employer's	3770
contributions to the uniform system or the amount that would have	3771
been contributed by the employer for the service had the member	3772
been a member of the state teachers retirement system at the time	3773
the credit was earned;	3774

(3) Interest, determined as provided in division (F) of this	3775
section, on the amounts specified in divisions (B)(1) and (2) of	3776
this section from the last day of the year for which the service	3777
credit in the uniform system was earned or in which payment was	3778
made for military service credit was purchased or obtained to the	3779
date the transfer is made.	3780

(C) A member participating in the plan described in sections	3781
3307.50 to 3307.79 of the Revised Code who has at least eighteen	3782
monthsone and one-half years of contributing service with the	3783
state teachers retirement system, is a former member of a uniform	3784
retirement system, and has received a refund of contributions to	3785
that uniform system shall, in computing years of total service,	3786
be given full credit for service credit earned under Chapter 742.	3787
or 5505. of the Revised Code or for military service credit if,	3788
for each year of service, the state teachers retirement system	3789
receives the sum of the following:	3790

(1) An amount, which shall be paid by the member, equal to	3791
the amount refunded by the uniform system to the member for that	3792
year for accumulated contributions and payments for military	3793
service credit, with interest at a rate established by the state	3794
teachers retirement board on that amount from the date of the	3795
refund to the date of the payment;	3796

(2) Interest, which shall be transferred by the uniform	3797
system, on the amount refunded to the member that is attributable	3798
to the year of service from the last day of the year for which the	3799
service credit was earned or in which payment was made for	3800
military service credit to the date the refund was made;	3801

(3) An amount, which shall be transferred by the uniform	3802
system, equal to the lesser of the employer's contributions to	3803
the uniform system or the amount that would have been	3804
contributed by the employer for the service had the member been a	3805
member of the state teachers retirement system at the time the	3806
credit was earned, with interest on that amount from the last day	3807
of the year for which the service credit was earned or in which	3808
payment was made for military service to the date of the	3809
transfer.	3810

On receipt of payment from the member, the state teachers	3811
retirement system shall notify the uniform system, which, on	3812
receipt of the notice, shall make the transfer required by this	3813
division. Interest shall be determined as provided in division	3814
(F) of this section.	3815

A member may choose to purchase only part of the credit the	3816
member is eligible to purchase under this division in any one	3817
payment, subject to rules of the state teachers retirement board.	3818

(D) A member is ineligible to obtain credit under this	3819
section for service that is used in the calculation of any	3820
retirement benefit currently being paid or payable in the future	3821
under any other retirement program or for service credit that may	3822
be transferred under section 3307.765 of the Revised Code.	3823

(E) If a member of the state teachers retirement system who	3824
is not a current contributor elects to obtain credit under section	3825
742.21 or 5505.40 of the Revised Code for service for which the	3826
member contributed to the system or purchased for military	3827
service credit, the system shall transfer to the uniform	3828
retirement system, as applicable, the amount specified in division	3829
(D) of section 742.21 or division (B)(2) of section 5505.40 of	3830
the Revised Code.	3831

(F) Interest charged under this section shall be calculated	3832
separately for each year of service credit. Unless otherwise	3833
specified in this section it shall be calculated at the lesser of	3834
the actuarial assumption rate for that year of the state teachers	3835
retirement system or of the uniform retirement system in which	3836
the credit was earned. The interest shall be compounded annually.	3837

(G) The state teachers retirement board shall credit to a	3838
member's account in the teachers' savings fund the amounts	3839
described in divisions (B)(1) and (C)(1) of this section, except	3840
that the interest paid by the member under division (C)(1) of this	3841
section shall be credited to the employers' trust fund. The board	3842
shall credit to the employers' trust fund the amounts described in	3843
divisions (B)(2) and (3) and (C)(2) and (3) of this section.	3844

(H) At the request of the state teachers retirement system,	3845
the Ohio police and fire pension fund or state highway patrol	3846
retirement system shall certify to the state teachers retirement	3847
system a copy of the records of the service and contributions of a	3848
state teachers retirement system member who seeks service credit	3849
under this section.	3850

Sec. 3307.763.  (A) If the conditions described in division	3851
(B) of section 3307.762 of the Revised Code are met, a member of	3852
the state teachers retirement system who is not receiving a	3853
pension or benefit from the state teachers retirement system is	3854
eligible to obtain credit for service as a member of the	3855
Cincinnati retirement system under this section.	3856

(B) A member of the state teachers retirement system	3857
participating in the plan described in sections 3307.50 to 3307.79	3858
of the Revised Code who has contributions on deposit with, but is	3859
no longer contributing to, the Cincinnati retirement system shall,	3860
in computing years of service credit, be given credit for service	3861
credit earned under the Cincinnati retirement system or purchased	3862
or obtained as military service credit if, for each year of	3863
service, the Cincinnati retirement system transfers to the state	3864
teachers retirement system the sum of the following:	3865

(1) The amount contributed by the member, or, in the case of	3866
military service credit, paid by the member, that is attributable	3867
to the year of service;	3868

(2) An amount equal to the lesser of the employer's	3869
contributions to the Cincinnati retirement system or the amount	3870
that would have been contributed by the employer for the service	3871
had the member been a member of the state teachers retirement	3872
system at the time the credit was earned;	3873

(3) Interest on the amounts specified in divisions (B)(1)	3874
and (2) of this section from the last day of the year for which	3875
service credit was earned or in which payment was made for	3876
military service credit to the date the transfer is made.	3877

(C) A member of the state teachers retirement system with at	3878
least eighteen monthsone and one-half years of contributing	3879
service credit with the state teachers retirement system who has	3880
received a refund of the member's contributions to the Cincinnati	3881
retirement system shall, in computing years of service, be given	3882
credit for service credit earned under the Cincinnati retirement	3883
system or purchased or obtained as military service credit if, for	3884
each year of service, the state teachers retirement system	3885
receives the sum of the following:	3886

(1) An amount, paid by the member, equal to the sum of the	3887
following:	3888

(a) The amount refunded by the Cincinnati retirement system	3889
to the member for that year for contributions and payments for	3890
military service credit, with interest at a rate established by	3891
the state teachers retirement board on that amount from the date	3892
of the refund to the date of payment;	3893

(b) The amount of interest, if any, the member received when	3894
the refund was made that is attributable to the year of service.	3895

(2) An amount, transferred by the Cincinnati retirement	3896
system to the state teachers retirement system, equal to the sum	3897
of the following:	3898

(a) Interest on the amount refunded to the member that is	3899
attributable to the year of service from the last day of the year	3900
for which the service credit was earned or in which payment was	3901
made for military service credit to the date the refund was made;	3902

(b) An amount equal to the lesser of the employer's	3903
contributions to the Cincinnati retirement system or the amount	3904
that would have been contributed by the employer for the service	3905
had the member been a member of the state teachers retirement	3906
system at the time the credit was earned, with interest on that	3907
amount from the last day of the year for which the service credit	3908
was earned to the date of the transfer.	3909

(D) The amount transferred under division (C)(2)(a) of this	3910
section shall not include any amount of interest the Cincinnati	3911
retirement system paid to the person when it made the refund.	3912

(E) On receipt of payment from the member under division	3913
(C)(1) of this section, the state teachers retirement system shall	3914
notify the Cincinnati retirement system. On receipt of the	3915
notice, the Cincinnati retirement system shall transfer the amount	3916
described in division (C)(2) of this section.	3917

(F) Interest charged under this section shall be calculated	3918
separately for each year of service credit. Unless otherwise	3919
specified in this section, it shall be calculated at the lesser of	3920
the actuarial assumption rate for that year of the state teachers	3921
retirement system or the Cincinnati retirement system. The	3922
interest shall be compounded annually.	3923

(G) At the request of the state teachers retirement system,	3924
the Cincinnati retirement system shall certify to the state	3925
teachers retirement system a copy of the records of the service	3926
and contributions of a state teachers retirement system member who	3927
seeks service credit under this section.	3928

(H) A member may choose to purchase only part of the credit	3929
the member is eligible to purchase under division (C) of this	3930
section in any one payment, subject to rules of the state teachers	3931
retirement board.	3932

(I) A member is ineligible to obtain credit under this	3933
section for service that is used in the calculation of any	3934
retirement benefit currently being paid or payable in the future.	3935

(J) The state teachers retirement board shall credit to the	3936
member's account in the teachers' savings fund the amounts	3937
described in divisions (B)(1) and (C)(1)(a) of this section,	3938
except that interest paid by the member under division (C)(1)(a)	3939
of this section shall be credited to the employers' trust fund.	3940
The board shall credit to the employers' trust fund the amounts	3941
described in divisions (B)(2), (B)(3), (C)(1)(b), and (C)(2) of	3942
this section.	3943

Sec. 3307.764.  (A) If the conditions described in division	3944
(B) of section 3307.762 of the Revised Code are met and a person	3945
who is a member or former member of the state teachers retirement	3946
system through participation in the plan described in sections	3947
3307.50 to 3307.79 of the Revised Code, but is not a current	3948
contributor and who is not receiving a pension or benefit from the	3949
state teachers retirement system elects to receive credit under	3950
the Cincinnati retirement system for service for which the person	3951
contributed to the state teachers retirement system or purchased	3952
or obtained as military service credit, the state teachers	3953
retirement system shall transfer the amounts specified in division	3954
(B) or (C) of this section to the Cincinnati retirement system.	3955

(B) If the person has contributions on deposit with the	3956
state teachers retirement system, the retirement system shall, for	3957
each year of service credit, transfer to the Cincinnati retirement	3958
system the sum of the following:	3959

(1) An amount equal to the person's contributions to the	3960
state teachers retirement system and payments made by the member	3961
for military service credit;	3962

(2) An amount equal to the lesser of the employer's	3963
contributions to the state teachers retirement system or the	3964
amount that would have been contributed by the employer for the	3965
service had the person been a member of the Cincinnati retirement	3966
system at the time the credit was earned;	3967

(3) Interest on the amounts specified in divisions (B)(1)	3968
and (2) of this section for the period from the last day of the	3969
year for which the service credit was earned or in which payment	3970
was made for military service credit to the date the transfer was	3971
made.	3972

(C)(1) If the person has received a refund of accumulated	3973
contributions to the state teachers retirement system, the state	3974
teachers retirement system shall, for each year of service credit,	3975
transfer to the Cincinnati retirement system the sum of the	3976
following:	3977

(a) Interest on the amount refunded to the former member	3978
that is attributable to the year of service from the last day of	3979
the year for which the service credit was earned or in which	3980
payment was made for military service credit to the date the	3981
refund was made;	3982

(b) An amount equal to the lesser of the employer's	3983
contributions to the state teachers retirement system or the	3984
amount that would have been contributed by the employer for the	3985
service had the person been a member of the Cincinnati 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

(2) The amount transferred under division (C)(1) of this	3990
section shall not include any amount added to the member's	3991
accumulated contributions under section 3307.563 of the Revised	3992
Code and paid under section 3307.56 or 3307.562 of the Revised	3993
Code.	3994

(3) On receipt of notice from the Cincinnati retirement	3995
system that the Cincinnati retirement system has received payment	3996
from a person described in division (C)(1) of this section, the	3997
state teachers retirement system shall transfer the amount	3998
described in that division.	3999

(D) Interest charged under this section shall be calculated	4000
separately for each year of service credit. Unless otherwise	4001
specified in this section, it shall be calculated at the lesser of	4002
the actuarial assumption rate for that year of the state teachers	4003
retirement system or the Cincinnati retirement system. The	4004
interest shall be compounded annually.	4005

(E) The transfer of any amount under this section cancels an	4006
equivalent amount of service credit.	4007

(F) At the request of the Cincinnati retirement system, the	4008
state teachers retirement system shall certify to the Cincinnati	4009
retirement system a copy of the records of the service and	4010
contributions of a member or former member of the state teachers	4011
retirement system who elects to receive service credit under the	4012
Cincinnati retirement system.	4013

Sec. 3307.87.  (A)(1) If a member participating in a plan	4014
established under section 3307.81 of the Revised Code is married	4015
at the time any benefits under the plan commence, benefits shall	4016
be paid in accordance with division (A)(2) of this section, unless	4017
the spouse has consented under division (C) of this section to a	4018
different form of payment.	4019

(2) The benefits described in division (A)(1) of this	4020
section shall be paid in the form of an annuity, which shall	4021
consist of the actuarial equivalent of the member's benefits, in	4022
an amount that is payable for the life of the member and one-half	4023
of the amount continuing after the member's death to the spouse	4024
for the life of the spouse.	4025

(B) If a member participating in a plan established under	4026
section 3307.81 of the Revised Code is married at the time of the	4027
member's death, any benefits that are payable to the member shall	4028
be paid to the member's spouse, unless the spouse has consented	4029
under division (C) of this section to the designation of a	4030
different beneficiary.	4031

(C) A plan established under section 3307.81 of the Revised	4032
Code shall include requirements for consent under this section	4033
that are the same as the requirements specified in division (a)(2)	4034
of section 417 of the Internal Revenue Code, 26 U.S.C.A.	4035
417(a)(2), as amended.Consent is valid only if it is evidenced by	4036
a signed statement that is witnessed by a notary public. Each	4037
plan may waive the requirement of consent if the spouse is	4038
incapacitated or cannot be located or for any other reason	4039
specified by the plan or in the regulations adopted under that	4040
sectionrules adopted by the state teachers retirement board.	4041

Consent or waiver is effective only with regard to the spouse	4042
who is the subject of the consent or waiver.	4043

Sec. 3309.21.  (A) The school employees retirement board	4044
shall have prepared annually by or under the supervision of an	4045
actuary an actuarial valuation of the pension assets, liabilities,	4046
and funding requirements of the school employees retirement system	4047
as established pursuant to this chapter. The actuary shall	4048
complete the valuation in accordance with actuarial standards of	4049
practice promulgated by the actuarial standards board of the	4050
American academy of actuaries and prepare a report of the	4051
valuation. The report shall include all of the following:	4052

(1) A summary of the benefit provisions evaluated;

4053

(2) A summary of the census data and financial information	4054
used in the valuation;	4055

(3) A description of the actuarial assumptions, actuarial	4056
cost method, and asset valuation method used in the valuation,	4057
including a statement of the assumed rate of payroll growth and	4058
assumed rate of growth or decline in the number of members	4059
contributing to the retirement system;	4060

(4) A summary of findings that includes a statement of the	4061
actuarial accrued pension liabilities and unfunded actuarial	4062
accrued pension liabilities;	4063

(5) A schedule showing the effect of any changes in the	4064
benefit provisions, actuarial assumptions, or cost methods since	4065
the last annual actuarial valuation;	4066

(6) A statement of whether contributions to the retirement	4067
system are expected to be sufficient to satisfy the funding	4068
objectives established by the board.	4069

The board shall submit the report to the Ohio retirement	4070
study commissioncouncil and the standing committees of the house	4071
of representatives and the senate with primary responsibility for	4072
retirement legislation not later than the first day of May	4073
following the year for which the valuation was made.	4074

(B) At such times as the school employees retirement board	4075
determines, and at least once in each quinquennial period, the	4076
board shall have prepared by or under the supervision of an	4077
actuary an actuarial investigation of the mortality, service, and	4078
other experience of the members, retirants, and beneficiaries of	4079
the retirement system, and SERS retirants and other system	4080
retirants as defined in section 3309.341 of the Revised Code to	4081
update the actuarial assumptions used in the actuarial valuation	4082
required by division (A) of this section. The actuary shall	4083
prepare a report of the actuarial investigation. The report shall	4084
be prepared and any recommended changes in actuarial assumptions	4085
shall be made in accordance with the actuarial standards of	4086
practice promulgated by the actuarial standards board of the	4087
American academy of actuaries. The report shall include all of	4088
the following:	4089

(1) A summary of relevant decrement and economic assumption	4090
experience observed over the period of the investigation;	4091

(2) Recommended changes in actuarial assumptions to be used	4092
in subsequent actuarial valuations required by division (A) of	4093
this section;	4094

(3) A measurement of the financial effect of the recommended	4095
changes in actuarial assumptions.	4096

The board shall submit the report to the Ohio retirement	4097
study commissioncouncil and the standing committees of the house	4098
of representatives and the senate with primary responsibility for	4099
retirement legislation not later than the first day of May	4100
following the last fiscal year of the period the report covers.	4101

(C) The board may at any time request the actuary to make	4102
any studies or actuarial valuations to determine the adequacy of	4103
the rates of contribution as provided by section 3309.49 of the	4104
Revised Code, and those rates may be adjusted by the board, as	4105
recommended by the actuary, effective as of the first of any year	4106
thereafter.	4107

(D) The board shall have prepared by or under the	4108
supervision of an actuary an actuarial analysis of any introduced	4109
legislation expected to have a measurable financial impact on the	4110
retirement system. The actuarial analysis shall be completed in	4111
accordance with the actuarial standards of practice promulgated by	4112
the actuarial standards board of the American academy of	4113
actuaries. The actuary shall prepare a report of the actuarial	4114
analysis, which shall include all of the following:	4115

(1) A summary of the statutory changes that are being	4116
evaluated;	4117

(2) A description of or reference to the actuarial	4118
assumptions and actuarial cost method used in the report;	4119

(3) A description of the participant group or groups	4120
included in the report;	4121

(4) A statement of the financial impact of the legislation,	4122
including the resulting increase, if any, in the employer normal	4123
cost percentage; the increase, if any, in actuarial accrued	4124
liabilities; and the per cent of payroll that would be required to	4125
amortize the increase in actuarial accrued liabilities as a level	4126
per cent of covered payroll for all active members over a period	4127
not to exceed thirty years;	4128

(5) A statement of whether the scheduled contributions to	4129
the system after the proposed change is enacted are expected to be	4130
sufficient to satisfy the funding objectives established by the	4131
board.	4132

Not later than sixty days from the date of introduction of	4133
the legislation, the board shall submit a copy of the actuarial	4134
analysis to the legislative budget office of the legislative	4135
service commission, the standing committees of the house of	4136
representatives and the senate with primary responsibility for	4137
retirement legislation, and the Ohio retirement study commission	4138
council.	4139

(E) The board shall have prepared annually a report giving a	4140
full accounting of the revenues and costs relating to the	4141
provision of benefits under sections 3309.375 and 3309.69 of the	4142
Revised Code. The report shall be made as of June 30, 1997, and	4143
the thirtieth day of June of each year thereafter. The report	4144
shall include the following:	4145

(1) A description of the statutory authority for the	4146
benefits provided;	4147

(2) A summary of the benefits;

4148

(3) A summary of the eligibility requirements for the	4149
benefits;	4150

(4) A statement of the number of participants eligible for	4151
the benefits;	4152

(5) A description of the accounting, asset valuation, and	4153
funding method used to provide the benefits;	4154

(6) A statement of the net assets available for the	4155
provision of the benefits as of the last day of the fiscal year;	4156

(7) A statement of any changes in the net assets available	4157
for the provision of benefits, including participant and employer	4158
contributions, net investment income, administrative expenses, and	4159
benefits provided to participants, as of the last day of the	4160
fiscal year;	4161

(8) For the last six consecutive fiscal years, a schedule of	4162
the net assets available for the benefits, the annual cost of	4163
benefits, administrative expenses incurred, and annual employer	4164
contributions allocated for the provision of benefits;	4165

(9) A description of any significant changes that affect the	4166
comparability of the report required under this division;	4167

(10) A statement of the amount paid under division (D)(C) of	4168
section 3309.69 of the Revised Code.	4169

The board shall submit the report to the Ohio retirement	4170
study commissioncouncil and the standing committees of the house	4171
of representatives and the senate with primary responsibility for	4172
retirement legislation not later than the thirty-first day of	4173
December following the year for which the report was made.	4174

Sec. 3309.43. A(A) Except as provided in division (B) of	4175
this section, a member of the school employees retirement system	4176
who has ceased to be an employee, and who is also a member of	4177
either the public employees retirement system or the state	4178
teachers retirement system, or both, may not withdraw histhe	4179
member's accumulated contributions, unless he.	4180

(B) On application, the school employees retirement board	4181
shall pay a member described in division (A) of this section the	4182
member's accumulated contributions if either of the following	4183
applies:	4184

(1) The member also withdraws histhe member's contributions	4185
from such other systems. The	4186

(2) The member is a participant in a plan established under	4187
section 145.81 or 3307.81 of the Revised Code and has withdrawn	4188
the member's contributions under plans described in sections	4189
145.201 to 145.79 and 3307.50 to 3307.79 of the Revised Code.	4190

The school employees retirement board may waive the annual	4191
expense fee where a member is contributing to another state	4192
retirement system provided such member is not at the same time	4193
contributing to the school employees retirement system.	4194

Sec. 3309.45.  Except as provided in division (C)(1) of this	4195
section, in lieu of accepting the payment of the accumulated	4196
account of a member who dies before service retirement, the	4197
beneficiary, as determined in section 3309.44 of the Revised Code,	4198
may elect to forfeit the accumulated account and to substitute	4199
certain other benefits either under division (A) or (B) of this	4200
section.	4201

(A)(1) If a deceased member was eligible for a service	4202
retirement allowance as provided in section 3309.36, 3309.38, or	4203
3309.381 of the Revised Code, a surviving spouse or other sole	4204
dependent beneficiary may elect to receive a monthly benefit	4205
computed as the joint-survivor allowance designated as "plan D" in	4206
section 3309.46 of the Revised Code, which the member would have	4207
received had the member retired on the last day of the month of	4208
death and had the member at that time selected such joint-survivor	4209
plan. Payment shall begin with the month subsequent to the	4210
member's death.	4211

(2) Beginning on a date selected by the school employees	4212
retirement board, which shall be not later than July 1, 2004, a	4213
surviving spouse or other sole dependent beneficiary may elect, in	4214
lieu of a monthly payment under division (A)(1) of this section, a	4215
plan of payment consisting of both of the following:	4216

(a) A lump sum in an amount the surviving spouse or other	4217
sole dependent beneficiary designates that constitutes a portion	4218
of the allowance that would be payable under division (A)(1) of	4219
this section;	4220

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

4221

The total amount paid as a lump sum and a monthly benefit	4222
shall be the actuarial equivalent of the amount that would have	4223
been paid had the lump sum not been selected.	4224

The lump sum amount designated by the surviving spouse or	4225
other sole dependent beneficiary under division (A)(2)(a) of this	4226
section shall be not less than six times and not more than	4227
thirty-six times the monthly amount that would be payable to the	4228
surviving spouse or other sole dependent beneficiary under	4229
division (A)(1) of this section and shall not result in a monthly	4230
benefit that is less than fifty per cent of that monthly amount.	4231

(B) If the deceased member had completed at least one and	4232
one-half years of credit for Ohio service, with at least	4233
one-quarter year of Ohio contributing service credit within the	4234
two and one-half years prior to the date of death, or was	4235
receiving at the time of death a disability benefit as provided in	4236
section 3309.40 or 3309.401 of the Revised Code, qualified	4237
survivors who elect to receive monthly benefits shall receive the	4238
greater of the benefits provided in division (B)(1)(a) or (b) as	4239
allocated in accordance with division (B)(5) of this section.	4240

(2) Benefits shall begin as qualified survivors meet	4262
eligibility requirements as follows:	4263

(a) A qualified spouse is the surviving spouse of the	4264
deceased member who is age sixty-two, or regardless of age if the	4265
deceased member had ten or more years of Ohio service credit, or	4266
regardless of age if caring for a surviving child, or regardless	4267
of age if adjudged physically or mentally incompetent.	4268

(b) A qualified child is any child of the deceased member	4269
who has never been married and to whom one of the following	4270
applies:	4271

(i) Is under age eighteen, or under age twenty-two if the	4272
child is attending an institution of learning or training pursuant	4273
to a program designed to complete in each school year the	4274
equivalent of at least two-thirds of the full-time curriculum	4275
requirements of such institution and as further determined by	4276
board policy;	4277

(ii) Regardless of age, is adjudged physically or mentally	4278
incompetent if the incompetence existed prior to the member's	4279
death and prior to the child attaining age eighteen, or age	4280
twenty-two if attending an institution described in division	4281
(B)(2)(b)(i) of this section.	4282

(c) A qualified parent is a dependent parent aged sixty-five	4283
or older.	4284

(3) "Physically or mentally incompetent" as used in this	4285
section may be determined by a court of jurisdiction, or by a	4286
physician appointed by the retirement board. Incapability of	4287
earning a living because of a physically or mentally disabling	4288
condition shall meet the qualifications of this division.	4289

(4) Benefits to a qualified survivor shall terminate upon a	4290
first marriage, abandonment, adoption, or during active military	4291
service. Benefits to a deceased member's surviving spouse that	4292
were terminated under a former version of this section that	4293
required termination due to remarriage and were not resumed prior	4294
to September 16, 1998, shall resume on the first day of the month	4295
immediately following receipt by the board of an application on a	4296
form provided by the board.	4297

Upon the death of any subsequent spouse who was a member of	4298
the public employees retirement system, state teachers retirement	4299
system, or school employees retirement system, the surviving	4300
spouse of such member may elect to continue receiving benefits	4301
under this division, or to receive survivor's benefits, based upon	4302
the subsequent spouse's membership in one or more of the systems,	4303
for which such surviving spouse is eligible under this section or	4304
section 145.45 or 3307.66 of the Revised Code. If the surviving	4305
spouse elects to continue receiving benefits under this division,	4306
such election shall not preclude the payment of benefits under	4307
this division to any other qualified survivor.	4308

Benefits shall begin or resume on the first day of the month	4309
following the attainment of eligibility and shall terminate on the	4310
first day of the month following loss of eligibility.	4311

(5)(a) If a benefit is payable under division (B)(1)(a) of	4312
this section, benefits to a qualified spouse shall be paid in the	4313
amount determined for the first qualifying survivor in division	4314
(B)(1)(a) of this section, but shall not be less than one hundred	4315
six dollars per month if the deceased member had ten or more years	4316
of Ohio service credit. All other qualifying survivors shall	4317
share equally in the benefit or remaining portion thereof.	4318

(b) All qualifying survivors shall share equally in a	4319
benefit payable under division (B)(1)(b) of this section, except	4320
that if there is a surviving spouse, the surviving spouse shall	4321
receive no less than the greater of the amount determined for the	4322
first qualifying survivor in division (B)(1)(a) of this section or	4323
one hundred six dollars per month.	4324

(6) The beneficiary of a member who is also a member of the	4325
public employees retirement system, or of the state teachers	4326
retirement system, must forfeit the member's accumulated	4327
contributions in those systems, if the beneficiary takes a	4328
survivor benefit. Such benefit shall be exclusively governed by	4329
section 3309.35 of the Revised Code.	4330

(C)(1) Regardless of whether the member is survived by a	4331
spouse or designated beneficiary, if the school employees	4332
retirement system receives notice that a deceased member described	4333
in division (A) or (B) of this section has one or more qualified	4334
children, all persons who are qualified survivors under Division	4335
division (B) of this section shall receive monthly benefits as	4336
provided in division (B) of this section.	4337

If, after determining the monthly benefits to be paid under	4338
division (B) of this section, the system receives notice that	4339
there is a qualified survivor who was not considered when the	4340
determination was made, the system shall, notwithstanding section	4341
3309.661 of the Revised Code, recalculate the monthly benefits	4342
with that qualified survivor included, even if the benefits to	4343
qualified survivors already receiving benefits are reduced as a	4344
result. The benefits shall be calculated as if the qualified	4345
survivor who is the subject of the notice became eligible on the	4346
date the notice was received and shall be paid to qualified	4347
survivors effective on the first day of the first month following	4348
the system's receipt of the notice.	4349

If the retirement system did not receive notice that a	4350
deceased member has one or more qualified children prior to making	4351
payment under section 3309.44 of the Revised Code to a beneficiary	4352
as determined by the retirement system, the payment is a full	4353
discharge and release of the system from any future claims under	4354
this section or section 3309.44 of the Revised Code.	4355

(2) If benefits under division (C)(1) of this section to all	4356
persons, or to all persons other than a surviving spouse or other	4357
sole beneficiary, terminate, there are no children under the age	4358
of twenty-two years, and the surviving spouse or beneficiary	4359
qualifies for benefits under division (A) of this section, the	4360
surviving spouse or beneficiary may elect to receive benefits	4361
under division (A) of this section. Benefits shall be effective	4362
on the first day of the month following receipt by the board of an	4363
application for benefits under division (A) of this section.	4364

(D) The final average salary used in the calculation of a	4365
benefit payable pursuant to division (A) or (B) of this section to	4366
a survivor or beneficiary of a disability benefit recipient shall	4367
be adjusted for each year between the disability benefit's	4368
effective date and the recipient's date of death by the lesser of	4369
three per cent or the actual average percentage increase in the	4370
consumer price index prepared by the United States bureau of labor	4371
statistics (U.S. City Average for Urban Wage Earners and Clerical	4372
Workers: "All Items 1982-84=100").	4373

(E) If the survivor benefits due and paid under this section	4374
are in a total amount less than the member's accumulated account	4375
that was transferred from the employees' savings fund, the state	4376
teachers retirement fund, and the public employees retirement fund	4377
to the survivors' benefit fund, then the difference between the	4378
total amount of the benefits paid shall be paid to the beneficiary	4379
under section 3309.44 of the Revised Code.	4380

Sec. 3309.46.  (A) The retirement allowance calculated under	4381
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be	4382
paid as provided in this section. If the member is eligible to	4383
elect a plan of payment under this section, the election shall be	4384
made on the application for retirement. A plan of payment elected	4385
under this section shall be effective only if it is certified by	4386
the actuary engaged by the school employees retirement board to be	4387
the actuarial equivalent of the member's retirement allowance and	4388
is approved by the retirement board.	4389

(B)(1) Unless the member is eligible to elect another plan	4390
of payment, a member who retires under section 3309.36, 3309.38,	4391
or 3309.381 of the Revised Code shall receive a retirement	4392
allowance under "plan A," which shall consist of the actuarial	4393
equivalent of the member's retirement allowance determined under	4394
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4395
lesser amount payable for life and one-half of such allowance	4396
continuing after death to the member's surviving spouse for the	4397
life of the spouse.	4398

A member may elect to receive a retirement allowance under a	4399
plan of payment other than "plan A" if the member is not married	4400
or either the member's spouse consents in writing to the member's	4401
election to a plan of payment other than "plan A" or the board	4402
waives the requirement that the spouse consent.	4403

An application for retirement shall include an explanation of	4404
all of the following:	4405

(a) That, if the member is married, unless the spouse	4406
consents to another plan of payment, the member's retirement	4407
allowance will be paid under "plan A," which consists of the	4408
actuarial equivalent of the member's retirement allowance in a	4409
lesser amount payable for life and one-half of the allowance	4410
continuing after death to the surviving spouse for the life of the	4411
spouse;	4412

(b) A description of the alternative plans of payment,	4413
including all plans described in divisions (B)(2) and (3) of this	4414
section, available with the consent of the spouse;	4415

(c) That the spouse may consent to another plan of payment	4416
and the procedure for giving consent;	4417

(d) That consent is irrevocable once notice of consent is	4418
filed with the board.	4419

Consent shall be valid only if it is in writing, signed by	4420
the spouse, and witnessed by an employee of the school employees	4421
retirement system or a notary public. The board may waive the	4422
requirement of consent if the spouse is incapacitated or cannot be	4423
located or for any other reason specified by the board. Consent	4424
or waiver is effective only with regard to the spouse who is the	4425
subject of the consent or waiver.	4426

(2) A member eligible to elect to receive a retirement	4427
allowance under a plan of payment other than "plan A" shall	4428
receive the retirement allowance under the plan described in	4429
division (B)(3) of this section or one of the following plans	4430
elected at the time the member makes application for retirement:	4431

(a) "Plan B," which shall consist of an allowance determined	4432
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;	4433

(b) "Plan C," which shall consist of the actuarial	4434
equivalent of the member's retirement allowance determined under	4435
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4436
lesser amount payable for life and one-half or some other portion	4437
of the allowance continuing after death to the member's sole	4438
surviving beneficiary designated at the time of the member's	4439
retirement, provided that the amount payable to the beneficiary	4440
does not exceed the amount payable to the member;	4441

(c) "Plan D," which shall consist of the actuarial	4442
equivalent of the member's retirement allowance determined under	4443
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4444
lesser amount payable for life and continuing after death to a	4445
surviving designated beneficiary designated at the time of the	4446
member's retirement;	4447

(d) "Plan E," which shall consist of the actuarial	4448
equivalent of the member's retirement allowance determined under	4449
section 3309.36, 3309.38, or 3309.381 of the Revised Code in a	4450
lesser amount payable for a certain period from the member's	4451
retirement date as elected by the member and approved by the	4452
retirement board, and on the member's death before the expiration	4453
of that certain period, the member's lesser retirement allowance	4454
continued for the remainder of that period to, and in such order,	4455
the beneficiaries as the member has nominated by written	4456
designation and filed with the retirement board.	4457

Monthly benefits shall not be paid to joint beneficiaries,	4458
but they may receive the present value of any remaining payments	4459
in a lump sum settlement. If all beneficiaries die before the	4460
expiration of the certain period, the present value of all such	4461
payments yet remaining in such period shall be paid to the estate	4462
of the beneficiary last receiving.	4463

(3)(a) Beginning on a date selected by the board, which shall	4464
be not later than July 1, 2004, a member may elect, in lieu of a	4465
plan of payment under division (B)(1) or (2) of this section, a	4466
plan consisting of both a lump sum in an amount the member	4467
designates that constitutes a portion of the retirement allowance	4468
payable under a plan described in division (B)(1) or (2) of this	4469
section and the remainder of the allowance payable under that plan	4470
in monthly payments.	4471

The total amount paid as a lump sum and a monthly benefit	4472
shall be the actuarial equivalent of the amount that would have	4473
been paid had the lump sum not been selected.	4474

(b) The lump sum amount designated by the member shall be not	4475
less than six times and not more than thirty-six times the monthly	4476
amount that would be payable to the member under the plan of	4477
payment elected under this section had the lump sum not been	4478
elected and shall not result in a monthly benefit that is less	4479
than fifty per cent of that amount.	4480

(4) An election under division (B)(2) or (3) of this section	4481
shall be made at the time the member makes application for	4482
retirement.	4483

(5) A member eligible to elect to receive a retirement	4484
allowance under a plan of payment other than "plan A" because the	4485
member is unmarried who fails to make an election on retirement	4486
shall receive a retirement allowance under "plan B."	4487

(C) Until the first payment of any retirement allowance is	4488
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the	4489
Revised Code, a member may change the member's election of a	4490
payment plan if the election is made in accordance with and is	4491
consistent with division (B) of this section.	4492

(D) If the retirement allowances due and paid under the	4493
above provisions of this section are in a total amount less than	4494
(1) the accumulated contributions, (2) the deposits for additional	4495
credit as provided by section 3309.31 of the Revised Code, (3) the	4496
deposits for additional annuities as provided by section 3309.47	4497
of the Revised Code, (4) the deposits for repurchase of service	4498
credit as provided by section 3309.26 of the Revised Code, (5) the	4499
accumulated contributions provided by section 3309.65 of the	4500
Revised Code, (6) the deposits for purchase of military service	4501
credit provided by section 3309.021 or 3309.022 of the Revised	4502
Code, and (7) the deposits for the purchase of service credit	4503
provided by section 3309.73 of the Revised Code, standing to the	4504
credit of the member at the time of retirement, then the	4505
difference between the total amount of the allowances paid and the	4506
accumulated contributions and other deposits shall be paid to the	4507
beneficiary provided under division (D) of section 3309.44 of the	4508
Revised Code.	4509

(E)(1) The death of a spouse or any other designated	4510
beneficiary following the member's retirement shall cancel any	4511
plan of payment to provide continuing lifetime benefits to the	4512
spouse or designated beneficiary and the retirant shall receive	4513
the retirant's single lifetime retirement allowance equivalent as	4514
determined by the board.	4515

(2) On divorce, annulment, or marriage dissolution, a	4516
retirant receiving a retirement allowance under a plan of payment	4517
that provides for continuation of all or part of the allowance	4518
after death for the lifetime of the member's surviving spouse may	4519
elect to cancel the plan and receive the member's single lifetime	4520
retirement allowance equivalent as determined by the retirement	4521
board, except that in the case of a member who retires on or after	4522
July 24, 1990, the election may be made only with the written	4523
consent of the spouse or pursuant to an order of the court with	4524
jurisdiction over the termination of the marriage. The election	4525
shall be made on a form provided by the board and shall be	4526
effective the month following its receipt by the board.	4527

(3) Following marriage or remarriage, a retirant who is	4528
receiving a benefit pursuant to "plan B" may elect a new plan of	4529
payment under division (B)(1), (2)(b), or (2)(c) of this section	4530
based on the actuarial equivalent of the member's single lifetime	4531
retirement allowance as determined by the board. The plan shall	4532
become effective the first day of the month following receipt by	4533
the board of an application on a form approved by the board.	4534

Sec. 3309.69.  (A) As used in this section, "ineligible	4535
individual" means all of the following:	4536

(1) A former member receiving benefits pursuant to section	4537
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 of the Revised	4538
Code for whom eligibility is established more than five years	4539
after June 13, 1981, and who, at the time of establishing	4540
eligibility, has accrued less than ten years of service credit,	4541
exclusive of credit obtained after January 29, 1981, pursuant to	4542
sections 3309.021, 3309.301, 3309.31, and 3309.33 of the Revised	4543
Code;	4544

(2) The spouse of the former member;

4545

(3) The beneficiary of the former member receiving benefits	4546
pursuant to section 3309.46 of the Revised Code.	4547

(B) The school employees retirement board may enter into an	4548
agreement with insurance companies, health insuring corporations,	4549
or government agencies authorized to do business in the state for	4550
issuance of a policy or contract of health, medical, hospital, or	4551
surgical benefits, or any combination thereof, for those	4552
individuals receiving service retirement or a disability or	4553
survivor benefit subscribing to the plan and their eligible	4554
dependents.	4555

If all or any portion of the policy or contract premium is to	4556
be paid by any individual receiving service retirement or a	4557
disability or survivor benefit, the person shall, by written	4558
authorization, instruct the board to deduct the premiums agreed to	4559
be paid by the individual to the companies, corporations, or	4560
agencies.	4561

The board may contract for coverage on the basis of part or	4562
all of the cost of the coverage to be paid from appropriate funds	4563
of the school employees retirement system. The cost paid from the	4564
funds of the system shall be included in the employer's	4565
contribution rate provided by sections 3309.49 and 3309.491 of the	4566
Revised Code. The board shall not pay or reimburse the cost for	4567
health care under this section or section 3309.375 of the Revised	4568
Code for any ineligible individual.	4569

The board may provide for self-insurance of risk or level of	4570
risk as set forth in the contract with the companies,	4571
corporations, or agencies, and may provide through the	4572
self-insurance method specific benefits as authorized by the rules	4573
of the board.	4574

(C) If the board provides health, medical, hospital, or	4575
surgical benefits through any means other than a health insuring	4576
corporation, it shall offer to each individual eligible for the	4577
benefits the alternative of receiving benefits through enrollment	4578
in a health insuring corporation, if all of the following apply:	4579

(1) The health insuring corporation provides health care	4580
services in the geographical area in which the individual lives;	4581

(2) The eligible individual was receiving health care	4582
benefits through a health maintenance organization or a health	4583
insuring corporation before retirement;	4584

(3) The rate and coverage provided by the health insuring	4585
corporation to eligible individuals is comparable to that	4586
currently provided by the board under division (B) of this	4587
section. If the rate or coverage provided by the health insuring	4588
corporation is not comparable to that currently provided by the	4589
board under division (B) of this section, the board may deduct the	4590
additional cost from the eligible individual's monthly benefit.	4591

The health insuring corporation shall accept as an enrollee	4592
any eligible individual who requests enrollment.	4593

The board shall permit each eligible individual to change	4594
from one plan to another at least once a year at a time determined	4595
by the board.	4596

(D) The board shall, beginning the month following receipt	4597
of satisfactory evidence of the payment for coverage, make a	4598
monthly payment to each recipient of service retirement, or a	4599
disability or survivor benefit under the school employees	4600
retirement system who is eligible for insurance coverage under	4601
part B of "The Social Security Amendments of 1965," 79 Stat. 301,	4602
42 U.S.C.A. 1395j, as amended, except that the board shall make no	4603
such payment to any ineligible individual. Effective on the first	4604
day of the month after the effective date of this amendmentApril	4605
9, 2001, the amount of the payment shall be the lesser of an	4606
amount equal to the basic premium for such coverage, or an amount	4607
equal to the basic premium in effect on January 1, 1999.	4608

(E)(D) The board shall establish by rule requirements for	4609
the coordination of any coverage, payment, or benefit provided	4610
under this section or section 3309.375 of the Revised Code with	4611
any similar coverage, payment, or benefit made available to the	4612
same individual by the public employees retirement system, Ohio	4613
police and fire pension fund, state teachers retirement system, or	4614
state highway patrol retirement system.	4615

(F)(E) The board shall make all other necessary rules	4616
pursuant to the purpose and intent of this section.	4617

Sec. 5505.12.  (A) The state highway patrol retirement board	4618
shall have prepared annually by or under the supervision of an	4619
actuary an actuarial valuation of the pension assets, liabilities,	4620
and funding requirements of the state highway patrol retirement	4621
system as established pursuant to this chapter. The actuary shall	4622
complete the valuation in accordance with actuarial standards of	4623
practice promulgated by the actuarial standards board of the	4624
American academy of actuaries and prepare a report of the	4625
valuation. The report shall include all of the following:	4626

(1) A summary of the benefit provisions evaluated;

4627

(2) A summary of the census data and financial information	4628
used in the valuation;	4629

(3) A description of the actuarial assumptions, actuarial	4630
cost method, and asset valuation method used in the valuation,	4631
including a statement of the assumed rate of payroll growth and	4632
assumed rate of growth or decline in the number of members	4633
contributing to the retirement system;	4634

(4) A summary of findings that includes a statement of the	4635
actuarial accrued pension liabilities and unfunded actuarial	4636
accrued pension liabilities;	4637

(5) A schedule showing the effect of any changes in the	4638
benefit provisions, actuarial assumptions, or cost methods since	4639
the last annual actuarial valuation;	4640

(6) A statement of whether contributions to the retirement	4641
system are expected to be sufficient to satisfy the funding	4642
objectives established by the board.	4643

The board shall submit the report to the Ohio retirement	4644
study council and the standing committees of the house of	4645
representatives and the senate with primary responsibility for	4646
retirement legislation not later than the first day of July	4647
following the year for which the valuation was made.	4648

(B) At such times as the state highway patrol retirement	4649
board determines, and at least once in each five-year period after	4650
January 1, 1966, the board shall have prepared by or under the	4651
supervision of an actuary an actuarial investigation of the	4652
mortality, service, and other experience of the members,	4653
retirants, and beneficiaries to update the actuarial assumptions	4654
used in the actuarial valuation required by division (A) of this	4655
section. The actuary shall prepare a report of the actuarial	4656
investigation. The report shall be prepared and any recommended	4657
changes in actuarial assumptions shall be made in accordance with	4658
the actuarial standards of practice promulgated by the actuarial	4659
standards board of the American academy of actuaries. The report	4660
shall include all of the following:	4661

(1) A summary of relevant decrement and economic assumption	4662
experience observed over the period of the investigation;	4663

(2) Recommended changes in actuarial assumptions to be used	4664
in subsequent actuarial valuations required by division (A) of	4665
this section;	4666

(3) A measurement of the financial effect of the recommended	4667
changes in actuarial assumptions.	4668

The board shall submit the report to the Ohio retirement	4669
study council and the standing committees of the house of	4670
representatives and the senate with primary responsibility for	4671
retirement legislation not later than the first day of November	4672
following the last fiscal year of the period the report covers.	4673

(C) The board may at any time request the actuary to make	4674
any studies or actuarial valuations to determine the adequacy of	4675
the rates of contributions provided by section 5505.15 of the	4676
Revised Code.	4677

(D) The board shall have prepared by or under the	4678
supervision of an actuary an actuarial analysis of any introduced	4679
legislation expected to have a measurable financial impact on the	4680
retirement system. The actuarial analysis shall be completed in	4681
accordance with the actuarial standards of practice promulgated by	4682
the actuarial standards board of the American academy of	4683
actuaries. The actuary shall prepare a report of the actuarial	4684
analysis, which shall include all of the following:	4685

(1) A summary of the statutory changes that are being	4686
evaluated;	4687

(2) A description of or reference to the actuarial	4688
assumptions and actuarial cost method used in the report;	4689

(3) A description of the participant group or groups	4690
included in the report;	4691

(4) A statement of the financial impact of the legislation,	4692
including the resulting increase, if any, in the employer normal	4693
cost percentage; the increase, if any, in actuarial accrued	4694
liabilities; and the per cent of payroll that would be required to	4695
amortize the increase in actuarial accrued liabilities as a level	4696
per cent of covered payroll for all active members over a period	4697
not to exceed thirty years;	4698

(5) A statement of whether the scheduled contributions to	4699
the system after the proposed change is enacted are expected to be	4700
sufficient to satisfy the funding objectives established by the	4701
board.	4702

Not later than sixty days from the date of introduction of	4703
the legislation, the board shall submit a copy of the actuarial	4704
analysis to the legislative budget office of the legislative	4705
service commission, the standing committees of the house of	4706
representatives and the senate with primary responsibility for	4707
retirement legislation, and the Ohio retirement study council.	4708

(E) The board shall have prepared annually a report giving a	4709
full accounting of the revenues and costs relating to the	4710
provision of benefits under section 5505.28 of the Revised Code.	4711
The report shall be made as of December 31, 1997, and the	4712
thirty-first day of December of each year thereafter. The report	4713
shall include the following:	4714

(1) A description of the statutory authority for the	4715
benefits provided;	4716

(2) A summary of the benefits;

4717

(3) A summary of the eligibility requirements for the	4718
benefits;	4719

(4) A statement of the number of participants eligible for	4720
the benefits;	4721

(5) A description of the accounting, asset valuation, and	4722
funding method used to provide the benefits;	4723

(6) A statement of the net assets available for the	4724
provision of the benefits as of the last day of the fiscal year;	4725

(7) A statement of any changes in the net assets available	4726
for the provision of benefits, including participant and employer	4727
contributions, net investment income, administrative expenses, and	4728
benefits provided to participants, as of the last day of the	4729
fiscal year;	4730

(8) For the last six consecutive fiscal years, a schedule of	4731
the net assets available for the benefits, the annual cost of	4732
benefits, administrative expenses incurred, and annual employer	4733
contributions allocated for the provision of benefits;	4734

(9) A description of any significant changes that affect the	4735
comparability of the report required under this division;	4736

(10) A statement of the amount paid under division (C)(B) of	4737
section 5505.28 of the Revised Code.	4738

The board shall submit the report to the Ohio retirement	4739
study council and the standing committees of the house of	4740
representatives and the senate with primary responsibility for	4741
retirement legislation not later than the thirtieth day of June	4742
following the year for which the report was made.	4743

Sec. 5505.28.  (A) The state highway patrol retirement board	4744
may enter into an agreement with insurance companies, health	4745
insuring corporations, or government agencies authorized to do	4746
business in the state for issuance of a policy or contract of	4747
health, medical, hospital, or surgical benefits, or any	4748
combination thereof, for those persons receiving pensions and	4749
subscribing to the plan. Notwithstanding any other provision of	4750
this chapter, the policy or contract may also include coverage for	4751
any eligible individual's spouse and dependent children and for	4752
any of the individual's sponsored dependents as the board	4753
considers appropriate.	4754

If all or any portion of the policy or contract premium is to	4755
be paid by any individual receiving a service, disability, or	4756
survivor pension or benefit, the individual shall, by written	4757
authorization, instruct the board to deduct from the individual's	4758
pension or benefit the premium agreed to be paid by the individual	4759
to the company, corporation, or agency.	4760

The board may contract for coverage on the basis of part or	4761
all of the cost of the coverage to be paid from appropriate funds	4762
of the state highway patrol retirement system. The cost paid from	4763
the funds of the system shall be included in the employer's	4764
contribution rate as provided by section 5505.15 of the Revised	4765
Code.	4766

(B) If the board provides health, medical, hospital, or	4767
surgical benefits through any means other than a health insuring	4768
corporation, it shall offer to each individual eligible for the	4769
benefits the alternative of receiving benefits through enrollment	4770
in a health insuring corporation, if all of the following apply:	4771

(1) The health insuring corporation provides health care	4772
services in the geographical area in which the individual lives;	4773

(2) The eligible individual was receiving health care	4774
benefits through a health maintenance organization or a health	4775
insuring corporation before retirement;	4776

(3) The rate and coverage provided by the health insuring	4777
corporation to eligible individuals is comparable to that	4778
currently provided by the board under division (A) of this	4779
section. If the rate or coverage provided by the health insuring	4780
corporation is not comparable to that currently provided by the	4781
board under division (A) of this section, the board may deduct the	4782
additional cost from the eligible individual's monthly benefit.	4783

The health insuring corporation shall accept as an enrollee	4784
any eligible individual who requests enrollment.	4785

The board shall permit each eligible individual to change	4786
from one plan to another at least once a year at a time determined	4787
by the board.	4788

(C) The board shall, beginning the month following receipt	4789
of satisfactory evidence of the payment for coverage, pay monthly	4790
to each recipient of a pension under the state highway patrol	4791
retirement system who is eligible for medical insurance coverage	4792
under part B of "The Social Security Amendments of 1965," 79 Stat.	4793
301, 42 U.S.C.A. 1395j, as amended, an amount established by board	4794
rule not exceeding the basic premium for such coverage.	4795

(D)(C) The board shall establish by rule requirements for	4796
the coordination of any coverage, payment, or benefit provided	4797
under this section with any similar coverage, payment, or benefit	4798
made available to the same individual by the public employees	4799
retirement system, Ohio police and fire pension fund, state	4800
teachers retirement system, or school employees retirement system.	4801

(E)(D) The board shall make all other necessary rules	4802
pursuant to the purpose and intent of this section.	4803

Section 2. That existing sections 145.01, 145.04, 145.05,	4804
145.091, 145.19, 145.191, 145.192, 145.20, 145.22, 145.23, 145.27,	4805
145.35, 145.38, 145.384, 145.40, 145.45, 145.46, 145.56, 145.58,	4806
145.80, 145.81, 145.811, 145.812, 145.813, 145.82, 145.85, 145.86,	4807
145.87, 145.88, 145.91, 145.92, 145.95, 145.97, 742.14, 742.37,	4808
742.372, 742.45, 3307.01, 3307.39, 3307.51, 3307.56, 3307.561,	4809
3307.563, 3307.58, 3307.60, 3307.761, 3307.763, 3307.764, 3307.87,	4810
3309.21, 3309.43, 3309.45, 3309.46, 3309.69, 5505.12, and 5505.28	4811
and sections 742.371 and 742.373 of the Revised Code are hereby	4812
repealed.	4813

Section 3. Section 145.01 of the Revised Code is presented in	4814
this act as a composite of the section as amended by Sub. H.B.	4815
158, Am. Sub. H.B. 405, and Am. Sub. S.B. 164 of the 124th General	4816
Assembly. Section 145.27 of the Revised Code is presented in this	4817
act as a composite of the section as amended by both Sub. H.B.	4818
535 and Am. Sub. S.B. 180 of the 123rd General Assembly. Section	4819
145.56 of the Revised Code is presented in this act as a composite	4820
of the section as amended by both Sub. H.B. 535 and Am. Sub. S.B.	4821
180 of the 123rd General Assembly. Section 3307.58 of the Revised	4822
Code is presented in this act as a composite of the section as	4823
amended by both Sub. H.B. 535 and Sub. S.B. 270 of the 123rd	4824
General Assembly. The General Assembly, applying the principle	4825
stated in division (B) of section 1.52 of the Revised Code that	4826
amendments are to be harmonized if reasonably capable of	4827
simultaneous operation, finds that the composite is the resulting	4828
version of the section in effect prior to the effective date of	4829
the section as presented in this act.	4830