As Introduced

126th General Assembly
Regular Session
2005-2006
H. B. No. 71


Representatives J. Stewart, Martin, Hartnett, Seitz, Faber, Seaver, Reidelbach, White, Taylor, D. Evans, Bubp, Barrett, C. Evans, Latta, Perry, Ujvagi, Carano 

A BILL
To amend sections 145.30, 145.301, 3307.58, 3307.751, 1
and 3309.021 of the Revised Code to permit a 2
member of the Public Employees Retirement System 3
to purchase military service credit for inactive 4
duty in the Ohio National Guard or reserves.5


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

       Section 1. That sections 145.30, 145.301, 3307.58, 3307.751, 6
and 3309.021 of the Revised Code be amended to read as follows:7

       Sec. 145.30.  (A) As used in this section and section 145.301 8
of the Revised Code:9

       (1) "Armed forces" of the United States includes the 10
following:11

       (a) Army, navy, air force, marine corps, coast guard, 12
auxiliary corps as established by congress, red cross nurse 13
serving with the army, navy, air force, or hospital service of the 14
United States, army nurse corps, navy nurse corps, full-time 15
service with the American red cross in a combat zone, and such 16
other service as may be designated by congress as included 17
therein;18

       (b) Personnel of the Ohio national guard and the reserve 19
components of any of the armed forces enumerated in division 20
(A)(1) of this section who are called to active duty pursuant to 21
an executive order issued by the president of the United States or 22
an act of congress;23

       (c) Persons on whom United States merchant marine veteran 24
status has been conferred for service aboard oceangoing merchant 25
ships in service to the United States during World War II.26

       (2) "State retirement system" means any of the following: the27
Ohio police and fire pension fund, public employees retirement 28
system, school employees retirement system, state highway patrol 29
retirement system, or the state teachers retirement system.30

       (B) Upon reemployment in the public service and completion of 31
one year of service credit as covered by a state retirement system 32
or the Cincinnati retirement system, within two years after 33
service in the armed forces that is terminated in a manner other 34
than as described in section 4304 of Title 38 of the United States 35
Code, "Uniformed Services Employment and Reemployment Rights Act 36
of 1994," 108 Stat. 3149, 38 U.S.C.A. 4304, and presentation of 37
documentation of the service and subject to rules adopted by the 38
retirement board, any member of the public employees retirement 39
system who was a member with not less than one year of payroll 40
deductions before entering active duty with the armed forces and 41
maintained membership in the public employees retirement system as 42
provided by section 145.41 of the Revised Code, and who was or is 43
out of active service as a public employee by reason of having 44
become a member of the armed forces of the United States on active 45
duty or service shall have such service, not in excess of ten46
years, considered as the equivalent of prior service. Service in 47
the armed forces as established by documentation of the service, 48
not in excess of ten years, shall also be considered prior service 49
for a person who was a public employee and who has acquired 50
service credit for five years prior to, and within the one year 51
preceding, the date of entering on active duty in the armed forces 52
of the United States if such person was reemployed in the public 53
service within one year after service in the armed forces that is 54
terminated in a manner other than as described in section 4304 of 55
Title 38 of the United States Code, "Uniformed Services Employment 56
and Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 57
4304, and established total service credit as defined in section 58
145.01 of the Revised Code of twenty years exclusive of credit for59
service in the uniformed services, as defined in section 145.302 60
of the Revised Code. This division shall not serve to cancel any 61
military service credit earned or granted prior to November 1, 62
1965.63

       (C) A member of the public employees retirement system is 64
ineligible to receive service credit under this section for any 65
year of military service credit used in the calculation of any 66
retirement benefit currently being paid to the member or payable 67
in the future under any other retirement program, except social 68
security, or used to obtain service credit pursuant to section69
145.301 or 145.302 of the Revised Code. At the time such credit is 70
requested, the member shall certify on a form supplied by the 71
retirement board that the member does and will conform to this 72
requirement. This division does not cancel any military service 73
credit earned prior to March 15, 1979.74

       Sec. 145.301.  (A) As used in this section:75

       (1) "Armed forces of the United States" includes both of the 76
following:77

       (a) Army, navy, air force, marine corps, coast guard, 78
auxiliary corps as established by congress, red cross nurse 79
serving with the army, navy, air force, or hospital service of the 80
United States, army nurse corps, navy nurse corps, full-time 81
service with the American red cross in a combat zone, and such 82
other service as may be designated by congress as included 83
therein;84

       (b) Persons on whom United States merchant marine veteran 85
status has been conferred for service aboard oceangoing merchant 86
ships in service to the United States during World War II.87

       (2) "Prisoner of war" means any regularly appointed, 88
enrolled, enlisted, or inducted member of the armed forces of the 89
United States, reserves, or Ohio national guard who was captured, 90
separated, and incarcerated by an enemy of the United States.91

       (3) "Reserves" means personnel of the reserve components of 92
any of the armed forces of the United States enumerated in 93
division (A)(1)(a) of this section.94

       (B) A member may purchase service credit that shall be 95
considered as the equivalent of Ohio service for each year of 96
service incurred by reason of having been on active duty as a 97
member of the armed forces of the United States, as defined in 98
section 145.30 of the Revised Codeor active or inactive duty as a 99
member of the reserves or Ohio national guard. The credit may be100
purchased at any time prior to receipt of a retirement allowance. 101
The number of years purchased shall not exceed five. The member 102
may choose to purchase only part of such credit in any one 103
payment, subject to public employees retirement board rules.104

       (B) For the purposes of this division, "prisoner of war"105
means any regularly appointed, enrolled, enlisted, or inducted106
member of the armed forces of the United States who was captured,107
separated, and incarcerated by an enemy of the United States.108

       (C) A member may purchase service credit that shall be109
considered as the equivalent of Ohio service for each year of110
service such member was a prisoner of war. The number of years111
purchased under this division shall not exceed five. Service112
credit may be purchased under this division for the same years of113
service used to purchase service credit under division (A)(B) of114
this section. The member may choose to purchase only part of such 115
credit in any one payment, subject to board rules.116

       (C)(D) The total number of years purchased under this section117
shall not exceed the member's total accumulated number of years of 118
Ohio service.119

       (D)(E) For each year of service purchased under division 120
(A)(B) or (B)(C) of this section, the member shall pay to the 121
public employees retirement system for credit to the member's122
accumulated account an amount specified by the retirement board 123
that shall be not less than the following:124

       (1) If the service credit is for active duty in the armed 125
forces of the United States, reserves, or Ohio national guard or 126
for service as a prisoner of war, fifty per cent of the additional 127
liability resulting from the purchase of that year of service as 128
determined by an actuary employed by the board;129

       (2) If the service credit is for inactive duty in the 130
reserves or Ohio national guard, seventy-five per cent of the 131
additional liability resulting from the purchase of that year of 132
service as determined by an actuary employed by the board.133

       (E)(F) A member is ineligible to purchase service credit134
under this section for any year of military service that was:135

       (1) Used in the calculation of any retirement benefit 136
currently being paid to the member or payable in the future under 137
any other retirement program, except social security, or for 138
retired pay for nonregular service under Chapter 1223 of Section 139
1662 of Title XVI of the "National Defense Authorization Act for 140
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 141
12739; 142

       (2) Used to obtain service credit pursuant to section 145.30 143
or 145.302 of the Revised Code. 144

       At the time the credit is purchased, the member shall certify 145
on a form furnished by the retirement board that the member does 146
and will conform to this requirement.147

       (F)(G) A member who, on March 17, 2000, is purchasing service 148
credit under this section by making installment payments to the 149
system or by a payroll deduction plan authorized under section 150
145.294 of the Revised Code may elect, on a form provided by the 151
board, to have a portion of the cost of the service credit 152
recalculated under division (D)(E) of this section as amended by 153
House Bill 186 of the 123rd general assembly. The recalculation 154
shall apply only to the amount still owed by the member as of the 155
date the election is filed with the board.156

       For each member who makes an election, the board shall do all 157
of the following:158

       (1) Determine the amount of the total cost of the service 159
credit still owed by the member as of the date the election is 160
filed with the board and the number of years or portion of a year 161
of service credit attributable to that amount;162

       (2) Recalculate under division (D)(E) of this section the 163
cost of the service credit described in division (F)(G)(1) of this 164
section;165

       (3) Notify the member of the recalculated amount.166

       If the recalculated amount is less than the amount still owed 167
by the member as of the date the election is filed, the 168
recalculated amount shall be the amount owed by the member.169

       (G)(H) Credit purchased under this section may be combined170
pursuant to section 145.37 with credit for military service171
purchased under sections 3307.751 and 3309.021, except that not172
more than an aggregate total of five years of credit purchased173
under division (A)(B) of this section, division (A) of section174
3307.751, and division (A) of section 3309.021, and not more than175
an aggregate total of five years of credit purchased under176
division (B)(C) of this section, division (B) of section 3307.751,177
and division (B) of section 3309.021 shall be used in determining178
retirement eligibility or calculating benefits under section179
145.37 of the Revised Code.180

       Sec. 3307.58.  Any member participating in the plan described181
in sections 3307.50 to 3307.79 of the Revised Code who has five182
years of service credit and has attained age sixty, or who has183
twenty-five years of service credit and has attained age184
fifty-five, or who has thirty years of service credit shall be185
granted service retirement after filing with the state teachers186
retirement board a completed application on a form approved by the187
board.188

       (A) Service retirement shall be effective on the first day of 189
the month next following the later of:190

       (1) The last day for which compensation was paid; or191

       (2) The attainment of minimum age or service credit192
eligibility for benefits provided under this section.193

       Except as provided in division (E) of this section, the194
service retirement benefit shall be the greater of the benefits195
provided in divisions (B) and (D) of this section.196

       (B) Subject to any adjustment made under division (C) of this 197
section, the annual single lifetime benefit of a member shall be 198
the greater of the amounts determined by the member's Ohio service 199
credit multiplied by one of the following:200

       (1) Eighty-six dollars;201

       (2)(a) The sum of the following amounts:202

       (i) For each of the first thirty years of Ohio service203
credit, two and two-tenths per cent of the member's final average204
salary or, subject to the limitation described in division205
(B)(2)(b) of this section, two and five-tenths per cent of the206
member's final average salary if the member has thirty-five or207
more years of service credit under section 3307.53, 3307.57,208
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or209
3307.771 of the Revised Code, division (A)(2) or (B) of former210
section 3307.513 of the Revised Code, former section 3307.514 of211
the Revised Code, section 3307.72 of the Revised Code earned after212
July 1, 1978, or any combination of service credit under those213
sections;214

       (ii) For each year or fraction of a year of Ohio service215
credit in excess of thirty years, two and two-tenths per cent of216
the member's final average salary or, subject to the limitation217
described in division (B)(2)(b) of this section, if the member has218
more than thirty years service credit under section 3307.53,219
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77,220
or 3307.771 of the Revised Code, division (A)(2) or (B) of former221
section 3307.513 of the Revised Code, former section 3307.514 of222
the Revised Code, section 3307.72 of the Revised Code earned after223
July 1, 1978, or any combination of service credit under those224
sections, the per cent of final average salary shown in the225
following schedule for each corresponding year or fraction of a226
year of service credit under those sections that is in excess of227
thirty years:228

Year Per Year Per 229
of Cent of Cent 230
Service for that Service for that 231
Credit Year Credit Year 232
30.01 - 31.00 2.5% 35.01 - 36.00 3.0% 233
31.01 - 32.00 2.6 36.01 - 37.00 3.1 234
32.01 - 33.00 2.7 37.01 - 38.00 3.2 235
33.01 - 34.00 2.8 38.01 - 39.00 3.3 236
34.01 - 35.00 2.9 237

For purposes of this schedule, years of service credit shall be238
rounded to the nearest one-hundredth of a year.239

       (b) For purposes of division (B)(2)(a) of this section, a240
percentage of final average salary in excess of two and two-tenths241
per cent shall be applied to service credit under section 3307.57242
of the Revised Code only if the service credit was established243
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,244
3309.021, 3309.022, or 3309.47 of the Revised Code or, restored245
under section 145.31 or 3309.26 of the Revised Code, purchased 246
under division (B) of section 145.301 of the Revised Code for 247
service in the active duty of the armed forces of the United 248
States, reserves, or Ohio national guard, or purchased under 249
division (C) of section 145.301 of the Revised Code.250

       (C) The annual single lifetime benefit of a member determined 251
under division (B) of this section shall be adjusted by the 252
greater per cent shown in the following schedule opposite the253
member's attained age or Ohio service credit.254

Years of Per Cent 255
Attained or Ohio Service of Base 256
Age Credit Amount 257
58 25 75% 258
59 26 80 259
60 27 85 260
61 88 261
28 90 262
62 91 263
63 94 264
29 95 265
64 97 266
65 30 or more 100 267

       Members shall vest the right to a benefit in accordance with268
the following schedule, based on the member's attained age by269
September 1, 1976:270

Per Cent 271
Attained of Base 272
Age Amount 273
66 102% 274
67 104 275
68 106 276
69 108 277
70 or more 110 278

       The annual single lifetime benefit determined under division279
(B) of this section shall not exceed the lesser of one hundred per280
cent of the final average salary or the limit established by281
section 415 of the "Internal Revenue Code of 1986," 100 Stat.282
2085, 26 U.S.C.A. 415, as amended.283

       (D) The annual single lifetime benefit of a member shall not284
exceed the lesser of the sum of the following amounts or the limit285
established by section 415 of the "Internal Revenue Code of 1986,"286
100 Stat. 2085, 26 U.S.C.A. 415, as amended:287

       (1) An annuity with a reserve equal to the member's288
accumulated contributions;289

       (2) A pension equal to the amount in division (D)(1) of this290
section;291

       (3) An additional pension of forty dollars annually292
multiplied by the number of years of prior and military service293
credit, except years of credit purchased under section 3307.751 or294
3307.752 of the Revised Code;295

       (4) An additional basic annual pension of one hundred eighty296
dollars, provided the member had ten or more years of Ohio service297
credit as of October 1, 1956, except that the additional basic298
annual pension shall not exceed the sum of the annual benefits299
provided by divisions (D)(1), (2), and (3) of this section.300

       (E) Benefits determined under this section shall be paid as301
provided in section 3307.60 of the Revised Code.302

       Sec. 3307.751.  (A) A member participating in the plan 303
described in sections 3307.50 to 3307.79 of the Revised Code may 304
purchase service credit that shall be considered as the equivalent 305
of Ohio service for each year of service incurred by reason of 306
having been on active duty as a member of the armed forces of the 307
United States, as defined in section 3307.75 of the Revised Code. 308
The credit may be purchased at any time prior to the effective 309
date of a benefit. The number of years purchased under this 310
division shall not exceed five.311

       (B) For the purposes of this division, "prisoner of war"312
means any regularly appointed, enrolled, enlisted, or inducted313
member of the armed forces of the United States who was captured,314
separated, and incarcerated by an enemy of the United States.315

       A member participating in the plan described in sections 316
3307.50 to 3307.79 of the Revised Code may purchase service credit 317
that shall be considered as the equivalent of Ohio service for 318
each year of service such member was a prisoner of war. The number 319
of years purchased under this division shall not exceed five. 320
Service credit may be purchased under this division for the same 321
years of service used to purchase service credit under division 322
(A) of this section.323

       (C) The total number of years purchased under this section324
shall not exceed the member's total accumulated number of years of 325
Ohio service.326

       (D)(1) Except as otherwise provided in division (D)(2) of327
this section, for each year of service purchased under division328
(A) or (B) of this section, the member shall pay to the state329
teachers retirement system for credit to the member's accumulated 330
account an amount determined by the member rate of contribution in 331
effect at the time the military service began multiplied by the332
member's annual compensation for full-time employment during the 333
first year of service in Ohio following termination of military 334
service. If, however, a limit on maximum salary or maximum 335
contribution was in effect at the time the military service began, 336
the limit shall be applied to the salary received during the first 337
year of service in Ohio to calculate the amount of payment. To 338
this amount shall be added an amount equal to compound interest at 339
a rate established by the state teachers retirement board from the 340
date active military service terminated to date of payment.341

       (2) For each year of service purchased under division (A) or 342
(B) of this section for military service that commenced on or343
after July 1, 1989, and, without regard to when the military344
service commenced, for each year of service purchased under345
division (A) or (B) of this section by a member who first346
established membership in the retirement system on or after July347
1, 1989, the member shall pay to the retirement system for credit348
to the member's individual account an amount specified by the 349
state teachers retirement board that shall be not less than fifty 350
per cent of the additional liability resulting from the purchase 351
of that year of service as determined by an actuary employed by 352
the board.353

       (3) A member may choose to purchase only part of the credit 354
the member is eligible to purchase under this section in any one355
payment, subject to board rules.356

       (E) A member of the state teachers retirement system is357
ineligible to purchase service credit under this section for any358
year of military service that was:359

       (1) Used in the calculation of any retirement benefit 360
currently being paid to such member or payable in the future under 361
any other retirement program, except for retired pay for 362
non-regular service under Chapter 1223 of Section 1662 of Title 363
XVI of the "National Defense Authorization Act for Fiscal Year 364
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or 365
social security;366

       (2) Used to obtain service credit pursuant to section 3307.75 367
or 3307.752 of the Revised Code. 368

       At the time the credit is purchased, the member shall certify 369
on a form furnished by the board that the member does and will 370
conform to this requirement.371

       (F) Credit(1) Subject to division (F)(2) of this section, 372
credit purchased under this section may be combined pursuant to 373
section 3307.57 of the Revised Code with credit for military 374
service purchased under sections 145.301 andsection 3309.021 of375
the Revised Code, except that not, division (B) of section 145.301 376
of the Revised Code for active duty in the armed forces of the 377
United States, reserves, or Ohio national guard, and division (C) 378
of section 145.301 of the Revised Code.379

       (2) Not more than a total of five years of credit purchased 380
under division (A) of this section, division (A)(B) of section 381
145.301 for active duty in the armed forces of the United States, 382
reserves, or Ohio national guard, and division (A) of section 383
3309.021 and not more than a total of five years of credit 384
purchased under division (B) of this section, division (B)(C) of 385
section 145.301, and division (B) of section 3309.021 of the 386
Revised Code shall be used in determining retirement eligibility 387
or calculating benefits under section 3307.57 of the Revised Code.388

       Sec. 3309.021.  (A) A member may purchase service credit that 389
shall be considered as the equivalent of Ohio service for each 390
year of service incurred by reason of having been on active duty 391
as a member of the armed forces of the United States, as defined 392
in section 3309.02 of the Revised Code. All or part of the credit 393
may be purchased at any time prior to receipt of a retirement394
allowance. The number of years purchased under this division shall 395
not exceed five.396

       (B) For the purposes of this division, "prisoner of war"397
means any regularly appointed, enrolled, enlisted, or inducted398
member of the armed forces of the United States who was captured,399
separated, and incarcerated by an enemy of the United States.400

       A member may purchase service credit that shall be considered 401
as the equivalent of Ohio service for each year of service such 402
member was a prisoner of war. The number of years purchased under 403
this division shall not exceed five. Service credit may be 404
purchased under this division for the same years of service used 405
to purchase service credit under division (A) of this section. The 406
member may choose to purchase only part of such credit in any one 407
payment, subject to board rules.408

       (C) The total number of years purchased under this section409
shall not exceed the member's total accumulated number of years of 410
Ohio service.411

       (D) For each year of service purchased under division (A) or 412
(B) of this section, the member shall pay to the school employees 413
retirement system for credit to the member's accumulated account414
an amount determined by the member rate of contribution in effect415
at the time the military service began multiplied by the annual416
compensation for full-time employment during the first year of417
service covered by the school employees retirement system, public 418
employees retirement system, or state teachers retirement system419
following termination of military service. If, however, a limit on 420
maximum salary or maximum contribution was in effect at the time 421
the military service began, the limit shall be applied to the 422
salary received during the first year of service in Ohio to 423
calculate the amount of payment. To this amount shall be added an 424
amount equal to compound interest at a rate established by the 425
school employees retirement board from the date of the member's 426
first service covered by the school employees retirement system, 427
public employees retirement system, or state teachers retirement 428
system following termination of the military service to date of 429
payment.430

       (E) A member of the school employees retirement system is431
ineligible to purchase service credit under this section for any432
year of military service that was:433

       (1) Used in the calculation of any retirement benefit 434
currently being paid to the member or payable in the future under 435
any other retirement program, except for retired pay for 436
nonregular service under Chapter 1223 of Section 1662 of Title XVI 437
of the "National Defense Authorization Act for Fiscal Year 1995,"438
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social439
security;440

       (2) Used to obtain service credit pursuant to section 3309.02 441
or 3309.022 of the Revised Code. 442

       At the time such credit is purchased, the member shall 443
certify on a form furnished by the retirement board that the 444
member does and will conform to this requirement.445

       (F) Credit(1) Subject to division (F)(2) of this section, 446
credit purchased under this section may be combined pursuant to 447
section 3309.35 of the Revised Code with credit for military 448
service purchased under sections 145.301 andsection 3307.751 of449
the Revised Code, except that not, division (B) of section 145.301 450
of the Revised Code for active duty in the armed forces of the 451
United States, reserves, or Ohio national guard, and division (C) 452
of section 145.301 of the Revised Code.453

       (2) Not more than an aggregate total of five years of credit 454
purchased under division (A) of this section, division (A)(B) of 455
section 145.301 for active duty in the armed forces of the United 456
States, reserves, or Ohio national guard, and division (A) of457
section 3307.751 of the Revised Code, and not more than an458
aggregate total of five years of credit purchased under division459
(B) of this section, division (B)(C) of section 145.301, and460
division (B) of section 3307.751 of the Revised Code shall be used 461
in determining retirement eligibility or calculating benefits 462
under section 3309.35 of the Revised Code.463

       Section 2. That existing sections 145.30, 145.301, 3307.58, 464
3307.751, and 3309.021 of the Revised Code are hereby repealed.465