REPRESENTATIVES Seitz, Calvert, Collier, Carano, Aslanides, Webster, Setzer, Buehrer, Clancy, D. Evans, McGregor, Schneider, Gibbs, Slaby, Allen

To amend sections 145.384 and 145.385 of the Revised

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Code to allow a retirant re-employed in a position

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covered by the Public Employees Retirement System

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to receive a refund of the retirant's

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contributions in lieu of a benefit for the period

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of re-employment.

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

Section 1.  That sections 145.384 and 145.385 of the Revised	7
Code be amended to read as follows:	8

Sec. 145.384. (A) As used in this section, "PERS retirant"	9
means a PERS retirant who is not subject to division (C) of	10
section 145.38 of the Revised Code. For purposes of this section,	11
"PERS retirant" also includes both of the following:	12

(1) A member who retired under section 145.383 of the Revised	13
Code;	14

(2) A retirant whose retirement allowance resumed under	15
section 145.385 of the Revised Code.	16

(B)(1) An other system retirant or PERS retirant who has made	17
contributions under section 145.38 or 145.383 of the Revised Code	18
or, in the case of a retirant described in division (A)(2) of this	19
section, section 145.47 of the Revised Code may file an	20
application with the public employees retirement system forto	21
receive either a benefit under, as provided in division (B)(2) of	22
this section, or payment of the retirant's contributions made	23
under those sections, as provided in division (H) of this section.	24
The	25

(2) A benefit under this section shall consist of an annuity	26
having a reserve equal to the amount of the retirant's accumulated	27
contributions for the period of employment, other than the	28
contributions excluded pursuant to division (B)(4)(a) or (b) of	29
section 145.38 of the Revised Code, and an equal amount of the	30
employer's contributions. The	31

(a) Unless the application is accompanied by a statement of	32
the spouse's consent to another form of payment, a PERS retirant	33
or other system retirant who is married at the time of application	34
for a benefit under this section shall receive the benefit as a	35
monthly annuity under which the actuarial equivalent of the	36
retirant's single life annuity is paid in a lesser amount for life	37
and one-half of the lesser amount continues after the retirant's	38
death to the surviving spouse.	39

(b) A PERS retirant or other system retirant who is not	40
subject to division (B)(2)(a) of this section shall elect either	41
to receive the benefit as a monthly annuity or a lump sum payment	42
discounted to the present value using the current actuarial	43
assumption rate of interest, except that if the monthly annuity	44
would be less than twenty-five dollars per month, the retirant	45
shall receive a lump sum payment. A retirant who elects to receive	46
a monthly annuity shall select one of the following as the plan of	47
payment:	48

(1)(i) The retirant's single life annuity;

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(2)(ii) The actuarial equivalent of the retirant's single	50
life annuity in aan equal or lesser amount for life and	51
continuing after death to a surviving beneficiary designated at	52
the time the plan of payment is selected.	53

If a retirant who is eligible to select a plan of payment	54
under division (B)(2)(b) of this section fails to do so, the	55
benefit shall be paid as a monthly annuity under the plan of	56
payment specified in rules adopted by the public employees	57
retirement board.	58

(c) Notwithstanding divisions (B)(2)(a) and (b) of this	59
section, if a monthly annuity would be less than twenty-five	60
dollars per month, the retirant shall receive a lump sum payment.	61

(C)(1) The death of a spouse or other designated beneficiary	62
following selection ofunder a plan of payment underdescribed in	63
division (B)(2) of this section cancels that plan of payment. The	64
PERS retirant or other system retirant shall receive the	65
equivalent of the retirant's single life annuity, as determined by	66
the public employees retirement board, effective the first day of	67
the month following receipt by the board of notice of the death.	68

(2) On divorce, annulment, or marriage dissolution, a PERS	69
retirant or other system retirant receiving a benefit under	70
described in division (B)(2) of this section under which the	71
beneficiary is the spouse may, with the written consent of the	72
spouse or pursuant to an order of the court with jurisdiction over	73
the termination of the marriage, elect to cancel the plan and	74
receive the equivalent of the member'sretirant's single life	75
annuity as determined by the retirement board. The election shall	76
be made on a form provided by the board and shall be effective the	77
month following its receipt by the board.	78

(D) Following a marriage or remarriage, a PERS retirant or	79
other system retirant who is receiving a benefit underdescribed	80
in division (B)(1)(2)(b)(i) of this section may elect a new plan	81
of payment under division (B)(2)(b) of this section based on the	82
actuarial equivalent of the retirant's single life annuity as	83
determined by the board. The plan shall be effective the first day	84
of the month following receipt by the board of an application on a	85
form approved by the board.	86

(E) A benefit payable under division (B)(2) of this section	87
shall commence on the latest of the following:	88

(1) The last day for which compensation for all employment	89
subject to section 145.38, 145.383, or 145.385 of the Revised Code	90
was paid;	91

(2) Attainment by the PERS retirant or other system retirant	92
of age sixty-five;	93

(3) If the PERS retirant or other system retirant was	94
previously employed under section 145.38, 145.383, or 145.385 of	95
the Revised Code and is receiving or previously received a benefit	96
under this section, completion of a period of twelve months since	97
the effective date of the last benefit under this section.	98

(F)(1) If a PERS retirant or other system retirant dies while	99
employed in employment subject to section 145.38, 145.383, or	100
145.385 of the Revised Code, a lump sum payment calculated in	101
accordance with division (B)(2) of this section shall be paid to	102
the retirant's beneficiary under division (G) of this section.	103

(2) If at the time of death a PERS retirant or other system	104
retirant receiving a monthly annuity has received less than the	105
retirant would have received as a lump sum payment, the difference	106
between the amount received and the amount that would have been	107
received as a lump sum payment shall be paid to the retirant's	108
beneficiary under division (G) of this section.	109

(3) If a beneficiary receiving a monthly annuity under	110
division (B)(2) of this section dies and, at the time of the	111
beneficiary's death, the total of the amounts paid to the retirant	112
and beneficiary are less than the amount the retirant would have	113
received as a lump sum payment, the difference between the total	114
of the amounts received by the retirant and beneficiary and the	115
amount that the retirant would have been received as a lump sum	116
payment shall be paid to the beneficiary's estate.	117

(G) A PERS retirant or other system retirant employed under	118
section 145.38, 145.383, or 145.385 of the Revised Code may	119
designate one or more persons as beneficiary to receive any	120
benefits payable under division (B)(2)(b) of this section due to	121
death. The designation shall be in writing duly executed on a form	122
provided by the public employees retirement board, signed by the	123
PERS retirant or other system retirant, and filed with the board	124
prior to death. The last designation of a beneficiary revokes all	125
previous designations. The PERS retirant's or other system	126
retirant's marriage, divorce, marriage dissolution, legal	127
separation, withdrawal of account, birth of a child, or adoption	128
of a child revokes all previous designations. If there is no	129
designated beneficiary, the beneficiary is the beneficiary	130
determined under division (D) of section 145.43 of the Revised	131
Code. If any benefit payable under this section due to the death	132
of a PERS retirant or other system retirant is not claimed by a	133
beneficiary within five years after the death, the amount payable	134
shall be transferred to the income fund and thereafter paid to the	135
beneficiary or the estate of the PERS retirant or other system	136
retirant on application to the board.	137

(H)(1) A PERS retirant or other system retirant who applies	138
under division (B)(1) of this section for payment of the	139
retirant's contributions and is unmarried or includes with the	140
application a statement of the spouse's consent to the payment	141
shall be paid the contributions made under section 145.38 or	142
145.383 of the Revised Code or, in the case of a retirant	143
described in division (A)(2) of this section, section 145.47 of	144
the Revised Code, plus interest as provided in section 145.471 of	145
the Revised Code, if the following conditions are met:	146

(a) The retirant has not attained sixty-five years of age and	147
has terminated employment subject to section 145.38, 145.383, or	148
145.385 of the Revised Code for any cause other than death or the	149
receipt of a benefit under this section.	150

(b) Three months have elapsed since the termination of the	151
retirant's employment subject to section 145.38, 145.383, or	152
145.385 of the Revised Code, other than employment exempted from	153
contribution pursuant to section 145.03 of the Revised Code.	154

(c) The retirant has not returned to public service, other	155
than service exempted from contribution pursuant to section 145.03	156
of the Revised Code, during the three-month period.	157

(2) Payment of a retirant's contributions cancels the	158
retirant's right to a benefit under division (B)(2) of this	159
section.	160

(I) A statement of a spouse's consent under division (B)(2)	161
of this section to the form of a benefit or under division (H) of	162
this section to a payment of contributions is valid only if signed	163
by the spouse and witnessed by a notary public. The board may	164
waive the requirement of spousal consent if the spouse is	165
incapacitated or cannot be located, or for any other reason	166
specified by the board. Consent or waiver is effective only with	167
regard to the spouse who is the subject of the consent or waiver.	168

(J) No amount received under this section shall be included	169
in determining an additional benefit under section 145.323 of the	170
Revised Code or any other post-retirement benefit increase.	171

Sec. 145.385. (A) A PERS retirant who made an election under	172
former section 145.381 of the Revised Code under which the annuity	173
portion of the retirant's retirement allowance was suspended and	174
the pension portion forfeited may have the entire retirement	175
allowance resume by giving notice to the public employees	176
retirement system. The notice must be given not later than ninety	177
days after the effective date of this sectionOctober 1, 2002.	178

(B) The retirement allowance shall resume on the first day of	179
the month following receipt of notice by the retirement system.	180

(C) The annuity portion of the retirement allowance that has	181
accumulated to the retirant's credit shall be paid as a single	182
payment on the first day of the month following receipt of notice	183
by the retirement system.	184

(D) Contributions made by the retirant and employer during	185
the period of forfeiture and contributions made after the	186
retirement allowance resumes shall be left on deposit with the	187
system and, except in the case of a retirant who elects, under	188
division (H) of section 145.384 of the Revised Code, to receive a	189
payment of the retirant contributions, shall be used in the	190
calculation of a benefit under section 145.384 of the Revised	191
Code.	192

Section 2.  That existing sections 145.384 and 145.385 of the	193
Revised Code are hereby repealed.	194