As Passed by the House

126th General Assembly Regular Session 2005-2006

Sub. 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, Coley, G. Smith, Wagoner, T. Patton, Hagan, Gibbs, Widener, Blessing, Brown, Calvert, Cassell, Chandler, Collier, Combs, Core, DeBose, Distel, Domenick, Fende, Flowers, Garrison, Hughes, Key, Luckie, Mason, McGregor, J., Oelslager, Otterman, Sayre, Schaffer, Schlichter, Schneider, Stewart, D., Webster, Widowfield, Williams, Yuko, Driehaus 

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A BILL

To amend sections 145.30, 145.301, 3307.751,

1

3309.021, and 5505.25 of the Revised Code to

2

permit a member of the Public Employees Retirement

3

System, State Teachers Retirement System, School

4

Employees Retirement System, or State Highway

5

Patrol Retirement System to purchase military

6

service credit for duty in the Ohio National Guard

7

or reserves.

8

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

Section 1. That sections 145.30, 145.301, 3307.751, 3309.021,	9
and 5505.25 of the Revised Code be amended to read as follows:	10

Sec. 145.30.  (A) As used in this section and section 145.301	11
of the Revised Code:	12

(1) "Armed forces" of the United States includes the	13
following:	14

(a) Army, navy, air force, marine corps, coast guard,	15
auxiliary corps as established by congress, red cross nurse	16
serving with the army, navy, air force, or hospital service of the	17
United States, army nurse corps, navy nurse corps, full-time	18
service with the American red cross in a combat zone, and such	19
other service as may be designated by congress as included	20
therein;	21

(b) Personnel of the Ohio national guard and the reserve	22
components of any of the armed forces enumerated in division	23
(A)(1) of this section who are called to active duty pursuant to	24
an executive order issued by the president of the United States or	25
an act of congress;	26

(c) Persons on whom United States merchant marine veteran	27
status has been conferred for service aboard oceangoing merchant	28
ships in service to the United States during World War II.	29

(2) "State retirement system" means any of the following: the	30
Ohio police and fire pension fund, public employees retirement	31
system, school employees retirement system, state highway patrol	32
retirement system, or the state teachers retirement system.	33

(B) Upon reemployment in the public service and completion of	34
one year of service credit as covered by a state retirement system	35
or the Cincinnati retirement system, within two years after	36
service in the armed forces that is terminated in a manner other	37
than as described in section 4304 of Title 38 of the United States	38
Code, "Uniformed Services Employment and Reemployment Rights Act	39
of 1994," 108 Stat. 3149, 38 U.S.C.A. 4304, and presentation of	40
documentation of the service and subject to rules adopted by the	41
retirement board, any member of the public employees retirement	42
system who was a member with not less than one year of payroll	43
deductions before entering active duty with the armed forces and	44
maintained membership in the public employees retirement system as	45
provided by section 145.41 of the Revised Code, and who was or is	46
out of active service as a public employee by reason of having	47
become a member of the armed forces of the United States on active	48
duty or service shall have such service, not in excess of ten	49
years, considered as the equivalent of prior service. Service in	50
the armed forces as established by documentation of the service,	51
not in excess of ten years, shall also be considered prior service	52
for a person who was a public employee and who has acquired	53
service credit for five years prior to, and within the one year	54
preceding, the date of entering on active duty in the armed forces	55
of the United States if such person was reemployed in the public	56
service within one year after service in the armed forces that is	57
terminated in a manner other than as described in section 4304 of	58
Title 38 of the United States Code, "Uniformed Services Employment	59
and Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A.	60
4304, and established total service credit as defined in section	61
145.01 of the Revised Code of twenty years exclusive of credit for	62
service in the uniformed services, as defined in section 145.302	63
of the Revised Code. This division shall not serve to cancel any	64
military service credit earned or granted prior to November 1,	65
1965.	66

(C) A member of the public employees retirement system is	67
ineligible to receive service credit under this section for any	68
year of military service credit used in the calculation of any	69
retirement benefit currently being paid to the member or payable	70
in the future under any other retirement program, except social	71
security, or used to obtain service credit pursuant to section	72
145.301 or 145.302 of the Revised Code. At the time such credit is	73
requested, the member shall certify on a form supplied by the	74
retirement board that the member does and will conform to this	75
requirement. This division does not cancel any military service	76
credit earned prior to March 15, 1979.	77

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

78

(1) "Armed forces of the United States" includes both of the	79
following:	80

(a) Army, navy, air force, marine corps, coast guard,	81
auxiliary corps as established by congress, red cross nurse	82
serving with the army, navy, air force, or hospital service of the	83
United States, army nurse corps, navy nurse corps, full-time	84
service with the American red cross in a combat zone, and such	85
other service as may be designated by congress as included	86
therein;	87

(b) Persons on whom United States merchant marine veteran	88
status has been conferred for service aboard oceangoing merchant	89
ships in service to the United States during World War II.	90

(2) "Prisoner of war" means any regularly appointed,	91
enrolled, enlisted, or inducted member of the armed forces of the	92
United States, reserves, or Ohio national guard who was captured,	93
separated, and incarcerated by an enemy of the United States.	94

(3) "Reserves" means personnel of the reserve components of	95
any of the armed forces of the United States enumerated in	96
division (A)(1)(a) of this section.	97

(B) A member may purchase service credit that shall be	98
considered as the equivalent of Ohio service for each year or	99
portion of a year of service incurred by reason of having been on	100
active duty as a member of the armed forces of the United States,	101
as defined in section 145.30 of the Revised Codea member of the	102
reserves, or a member of the Ohio national guard on presentation	103
of documentation of the service and subject to public employees	104
retirement board rules. TheFor purposes of this section, active	105
duty in the reserves or the Ohio national guard includes assembly	106
for drill and instruction; training at encampments, maneuvers,	107
outdoor target practice, or other exercises; and any training or	108
duty in this state ordered by the governor.	109

Credit shall not be granted for any period of duty during	110
which the member was contributing to the retirement system. The	111
credit may be purchased at any time prior to receipt of a	112
retirement allowance. The number of years purchased shall not	113
exceed five. The member may choose to purchase only part of such	114
credit in any one payment, subject to public employees retirement	115
board rules.	116

(B) For the purposes of this division, "prisoner of war"	117
means any regularly appointed, enrolled, enlisted, or inducted	118
member of the armed forces of the United States who was captured,	119
separated, and incarcerated by an enemy of the United States.	120

(C) A member may purchase service credit that shall be	121
considered as the equivalent of Ohio service for each year of	122
service such member was a prisoner of war. The number of years	123
purchased under this division shall not exceed five. Service	124
credit may be purchased under this division for the same years of	125
service used to purchase service credit under division (A)(B) of	126
this section. The member may choose to purchase only part of such	127
credit in any one payment, subject to board rules.	128

(C)(D) The total number of years purchased under this section	129
shall not exceed the member's total accumulated number of years of	130
Ohio service.	131

(D)(E) For each year or portion of a year of service	132
purchased under division (A)(B) or (B)(C) of this section, the	133
member shall pay to the public employees retirement system for	134
credit to the member's accumulated account an amount specified by	135
the retirement board that shall be not less than the following:	136

(1) Except as provided in division (E)(2) of this section, if	137
the service credit is for active duty in the armed forces of the	138
United States or for service as a prisoner of war, fifty per cent	139
of the additional liability resulting from the purchase of that	140
year of service as determined by an actuary employed by the board;	141

(2) If the service credit is for active duty in the reserves	142
or Ohio national guard that consists of assembly for drill and	143
instruction; training at encampments, maneuvers, outdoor target	144
practice, or other exercises; or any training or duty in this	145
state ordered by the governor, one hundred per cent of the	146
additional liability resulting from the purchase of that year of	147
service as determined by an actuary employed by the board. The	148
retirement system shall calculate the number of years or portions	149
of a year of credit the member is eligible to purchase under	150
division (E)(2) of this section by dividing the number of days	151
actually served by three hundred sixty-five.	152

(E)(F) A member is ineligible to purchase service credit	153
under this section for any year of military service that was:	154

(1) Used in the calculation of any retirement benefit	155
currently being paid to the member or payable in the future under	156
any other retirement program, except social security, or for	157
retired pay for nonregular service under Chapter 1223 of Section	158
1662 of Title XVI of the "National Defense Authorization Act for	159
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to	160
12739;	161

(2) Used to obtain service credit pursuant to section 145.30	162
or 145.302 of the Revised Code.	163

At the time the credit is purchased, the member shall certify	164
on a form furnished by the retirement board that the member does	165
and will conform to this requirement.	166

(F)(G) A member who, on March 17, 2000, is purchasing service	167
credit under this section by making installment payments to the	168
system or by a payroll deduction plan authorized under section	169
145.294 of the Revised Code may elect, on a form provided by the	170
board, to have a portion of the cost of the service credit	171
recalculated under division (D)(E) of this section as amended by	172
House Bill 186 of the 123rd general assembly. The recalculation	173
shall apply only to the amount still owed by the member as of the	174
date the election is filed with the board.	175

For each member who makes an election, the board shall do all	176
of the following:	177

(1) Determine the amount of the total cost of the service	178
credit still owed by the member as of the date the election is	179
filed with the board and the number of years or portion of a year	180
of service credit attributable to that amount;	181

(2) Recalculate under division (D)(E) of this section the	182
cost of the service credit described in division (F)(G)(1) of this	183
section;	184

(3) Notify the member of the recalculated amount.

185

If the recalculated amount is less than the amount still owed	186
by the member as of the date the election is filed, the	187
recalculated amount shall be the amount owed by the member.	188

(G)(H) Credit purchased under this section may be combined	189
pursuant to section 145.37 with credit for military service	190
purchased under sections 3307.751 and 3309.021, except that not	191
more than an aggregate total of five years of credit purchased	192
under division (A)(B) of this section, division (A) of section	193
3307.751, and division (A) of section 3309.021, and not more than	194
an aggregate total of five years of credit purchased under	195
division (B)(C) of this section, division (B) of section 3307.751,	196
and division (B) of section 3309.021 shall be used in determining	197
retirement eligibility or calculating benefits under section	198
145.37 of the Revised Code.	199

Sec. 3307.751.  (A) A member participating in the plan	200
described in sections 3307.50 to 3307.79 of the Revised Code may	201
purchase service credit that shall be considered as the equivalent	202
of Ohio service for each year or portion of a year of service	203
incurred by reason of having been on active duty as a member of	204
the armed forces of the United States, as defined in section	205
3307.75 of the Revised Code. TheFor purposes of this section,	206
active duty in the reserves or the Ohio national guard includes	207
assembly for drill and instruction; training at encampments,	208
maneuvers, outdoor target practice, or other exercises; and any	209
training or duty in this state ordered by the governor.	210

Credit shall not be granted for any period of duty during	211
which the member was contributing to the retirement system.	212

The credit may be purchased at any time prior to the	213
effective date of a benefit. The number of years purchased under	214
this division shall not exceed five.	215

(B) For the purposes of this division, "prisoner of war"	216
means any regularly appointed, enrolled, enlisted, or inducted	217
member of the armed forces of the United States who was captured,	218
separated, and incarcerated by an enemy of the United States.	219

A member participating in the plan described in sections	220
3307.50 to 3307.79 of the Revised Code may purchase service credit	221
that shall be considered as the equivalent of Ohio service for	222
each year of service such member was a prisoner of war. The number	223
of years purchased under this division shall not exceed five.	224
Service credit may be purchased under this division for the same	225
years of service used to purchase service credit under division	226
(A) of this section.	227

(C) The total number of years purchased under this section	228
shall not exceed the member's total accumulated number of years of	229
Ohio service.	230

(D)(1) Except as otherwise provided in division (D)(2) or (3)	231
of this section, for each year or portion of a year of service	232
purchased under division (A) or (B) of this section, the member	233
shall pay to the state teachers retirement system for credit to	234
the member's accumulated account an amount determined by the	235
member rate of contribution in effect at the time the military	236
service began multiplied by the member's annual compensation for	237
full-time employment during the first year of service in Ohio	238
following termination of military service. If, however, a limit on	239
maximum salary or maximum contribution was in effect at the time	240
the military service began, the limit shall be applied to the	241
salary received during the first year of service in Ohio to	242
calculate the amount of payment. To this amount shall be added an	243
amount equal to compound interest at a rate established by the	244
state teachers retirement board from the date active military	245
service terminated to date of payment.	246

(2) For each year of service purchased under division (A) or	247
(B) of this section for military service that commenced on or	248
after July 1, 1989, and, without regard to when the military	249
service commenced, for each year of service purchased under	250
division (A) or (B) of this section by a member who first	251
established membership in the retirement system on or after July	252
1, 1989, the member shall pay to the retirement system for credit	253
to the member's individual account an amount specified by the	254
state teachers retirement board that shall be not less than fifty	255
per cent of the additional liability resulting from the purchase	256
of that year of service as determined by an actuary employed by	257
the board.	258

(3) For each year or portion of a year of service in the	259
reserves or Ohio national guard purchased under division (A) of	260
this section that consists of assembly for drill and instruction;	261
training at encampments, maneuvers, outdoor target practice, or	262
other exercises; or any training or duty in this state ordered by	263
the governor, the member shall pay to the retirement system for	264
credit to the member's individual account an amount specified by	265
the state teachers retirement board that shall not be less than	266
one hundred per cent of the additional liability resulting from	267
the purchase of that year of service as determined by an actuary	268
employed by the board. The retirement system shall calculate the	269
number of years or portions of a year of credit the member is	270
eligible to purchase under division (D)(3) of this section by	271
dividing the number of days actually served by three hundred	272
sixty-five.	273

(4) A member may choose to purchase only part of the credit	274
the member is eligible to purchase under this section in any one	275
payment, subject to board rules.	276

(E) A member of the state teachers retirement system is	277
ineligible to purchase service credit under this section for any	278
year of military service that was:	279

(1) Used in the calculation of any retirement benefit	280
currently being paid to such member or payable in the future under	281
any other retirement program, except for retired pay for	282
non-regular service under Chapter 1223 of Section 1662 of Title	283
XVI of the "National Defense Authorization Act for Fiscal Year	284
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or	285
social security;	286

(2) Used to obtain service credit pursuant to section 3307.75	287
or 3307.752 of the Revised Code.	288

At the time the credit is purchased, the member shall certify	289
on a form furnished by the board that the member does and will	290
conform to this requirement.	291

(F) Credit purchased under this section may be combined	292
pursuant to section 3307.57 of the Revised Code with credit for	293
military service purchased under sections 145.301 and 3309.021 of	294
the Revised Code, except that not more than a total of five years	295
of credit purchased under division (A) of this section, division	296
(A)(B) of section 145.301, and division (A) of section 3309.021	297
and not more than a total of five years of credit purchased under	298
division (B) of this section, division (B)(C) of section 145.301,	299
and division (B) of section 3309.021 of the Revised Code shall be	300
used in determining retirement eligibility or calculating benefits	301
under section 3307.57 of the Revised Code.	302

Sec. 3309.021.  (A) A member may purchase service credit that	303
shall be considered as the equivalent of Ohio service for each	304
year or portion of a year of service incurred by reason of having	305
been on active duty as a member of the armed forces of the United	306
States, as defined in section 3309.02 of the Revised Code. AllFor	307
purposes of this section, active duty in the reserves or the Ohio	308
national guard includes assembly for drill and instruction;	309
training at encampments, maneuvers, outdoor target practice, or	310
other exercises; and any training or duty in this state ordered by	311
the governor.	312

Credit shall not be granted for any period of duty during	313
which the member was contributing to the retirement system.	314

All or part of the credit may be purchased at any time prior	315
to receipt of a retirement allowance. The number of years	316
purchased under this division shall not exceed five.	317

(B) For the purposes of this division, "prisoner of war"	318
means any regularly appointed, enrolled, enlisted, or inducted	319
member of the armed forces of the United States who was captured,	320
separated, and incarcerated by an enemy of the United States.	321

A member may purchase service credit that shall be considered	322
as the equivalent of Ohio service for each year of service such	323
member was a prisoner of war. The number of years purchased under	324
this division shall not exceed five. Service credit may be	325
purchased under this division for the same years of service used	326
to purchase service credit under division (A) of this section. The	327
member may choose to purchase only part of such credit in any one	328
payment, subject to board rules.	329

(C) The total number of years purchased under this section	330
shall not exceed the member's total accumulated number of years of	331
Ohio service.	332

(D) For(1) Except as provided in division (D)(2) of this	333
section, for each year or portion of a year of service purchased	334
under division (A) or (B) of this section, the member shall pay to	335
the school employees retirement system for credit to the member's	336
accumulated account an amount determined by the member rate of	337
contribution in effect at the time the military service began	338
multiplied by the annual compensation for full-time employment	339
during the first year of service covered by the school employees	340
retirement system, public employees retirement system, or state	341
teachers retirement system following termination of military	342
service. If, however, a limit on maximum salary or maximum	343
contribution was in effect at the time the military service began,	344
the limit shall be applied to the salary received during the first	345
year of service in Ohio to calculate the amount of payment. To	346
this amount shall be added an amount equal to compound interest at	347
a rate established by the school employees retirement board from	348
the date of the member's first service covered by the school	349
employees retirement system, public employees retirement system,	350
or state teachers retirement system following termination of the	351
military service to date of payment.	352

(2) For each year or portion of a year of service in the	353
reserves or Ohio national guard purchased under division (A) of	354
this section that consists of assembly for drill and instruction;	355
training at encampments, maneuvers, outdoor target practice, or	356
other exercises; or any training or duty in this state ordered by	357
the governor, the member shall pay to the retirement system for	358
credit to the member's individual account an amount specified by	359
the school employees retirement board that shall not be less than	360
one hundred per cent of the additional liability resulting from	361
the purchase of that year of service as determined by an actuary	362
employed by the board. The retirement system shall calculate the	363
number of years or portions of a year of credit the member is	364
eligible to purchase under division (D)(2) of this section by	365
dividing the number of days actually served by three hundred	366
sixty-five.	367

(E) A member of the school employees retirement system is	368
ineligible to purchase service credit under this section for any	369
year of military service that was:	370

(1) Used in the calculation of any retirement benefit	371
currently being paid to the member or payable in the future under	372
any other retirement program, except for retired pay for	373
nonregular service under Chapter 1223 of Section 1662 of Title XVI	374
of the "National Defense Authorization Act for Fiscal Year 1995,"	375
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social	376
security;	377

(2) Used to obtain service credit pursuant to section 3309.02	378
or 3309.022 of the Revised Code.	379

At the time such credit is purchased, the member shall	380
certify on a form furnished by the retirement board that the	381
member does and will conform to this requirement.	382

(F) Credit purchased under this section may be combined	383
pursuant to section 3309.35 of the Revised Code with credit for	384
military service purchased under sections 145.301 and 3307.751 of	385
the Revised Code, except that not more than an aggregate total of	386
five years of credit purchased under division (A) of this section,	387
division (A)(B) of section 145.301, and division (A) of section	388
3307.751 of the Revised Code, and not more than an aggregate total	389
of five years of credit purchased under division (B) of this	390
section, division (B)(C) of section 145.301, and division (B) of	391
section 3307.751 of the Revised Code shall be used in determining	392
retirement eligibility or calculating benefits under section	393
3309.35 of the Revised Code.	394

Sec. 5505.25.  (A) A member of the state highway patrol	395
retirement system who is not receiving a pension from the system	396
may purchase service credit for each year or portion of a year of	397
service incurred by reason of having been on active duty as a	398
member of the uniformed services of the United States if the	399
member is honorably discharged. For purposes of this section,	400
active duty in the reserves or the Ohio national guard includes	401
assembly for drill and instruction; training at encampments,	402
maneuvers, outdoor target practice, or other exercises; and any	403
training or duty in this state ordered by the governor.	404

Credit shall not be granted for any period of duty during	405
which the member was contributing to the retirement system.	406
Credits that are not authorized under division (D) of section	407
5505.16 of the Revised Code may be purchased at any time. The	408
number of years purchased under this division shall not exceed	409
five.	410

(B) For the purposes of this division, "prisoner of war"	411
means any regularly appointed, enrolled, enlisted, or inducted	412
member of the uniformed services of the United States who was	413
captured, separated, and incarcerated by an enemy of the United	414
States.	415

A member may purchase service credit for each year of service	416
such member was a prisoner of war. The number of years purchased	417
under this division shall not exceed five. Service credit may be	418
purchased under this division for the same years of service used	419
to purchase service credit under division (A) of this section. The	420
member may choose to purchase only part of such credit in any one	421
payment, subject to board rules.	422

(C) The total number of years purchased under this section	423
shall not exceed the member's total accumulated number of years in	424
the service of the state highway patrol.	425

Credit purchased by a member under this section shall be used	426
to determine the member's eligibility for retirement under	427
sections 5505.16 and 5505.17 of the Revised Code.	428

(D) For(1) Except as provided in division (D)(2) of this	429
section, for each year or portion of a year of service purchased	430
under division (A) or (B) of this section, the member shall pay to	431
the system for credit to the member's accumulated account an	432
amount determined by the member rate of contribution in effect at	433
the time the military service began multiplied by the annual	434
compensation for full-time employment during the first year of	435
service in Ohio following termination of military service. To this	436
amount shall be added an amount equal to compound interest at a	437
rate established by the state highway patrol retirement board from	438
the date active military service terminated to date of payment.	439

A(2) For each year or portion of a year of service in the	440
reserves or Ohio national guard purchased under division (A) of	441
this section that consists of assembly for drill and instruction;	442
training at encampments, maneuvers, outdoor target practice, or	443
other exercises; or any training or duty in this state ordered by	444
the governor, the member shall pay to the retirement system for	445
credit to the member's individual account an amount specified by	446
the state highway patrol retirement board that shall not be less	447
than one hundred per cent of the additional liability resulting	448
from the purchase of that year of service as determined by an	449
actuary employed by the board. The retirement system shall	450
calculate the number of years or portions of a year of credit the	451
member is eligible to purchase under division (D)(2) of this	452
section by dividing the number of days actually served by three	453
hundred sixty-five.	454

(E) A member is ineligible to purchase service credit under	455
this section for any year of military service that was:	456

(1) Used in the calculation of any retirement benefit	457
currently being paid to the member or payable in the future under	458
any other retirement program, except for retired pay for	459
nonregular service under Chapter 1223 of Section 1662 of Title XVI	460
of the "National Defense Authorization Act for Fiscal Year 1995,"	461
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social	462
security;	463

(2) Used to obtain service credit pursuant to section 5505.16	464
of the Revised Code.	465

At the time the credit is purchased, the member shall certify	466
on a form furnished by the board that the member does and will	467
conform to this requirement. Any benefit paid under this section	468
to which the member is not entitled shall be recovered by any	469
recovery procedures available under this chapter.	470

As used in this section, "uniformed services" of the United	471
States has the same meaning as in division (D) of section 5505.16	472
of the Revised Code.	473

Section 2. That existing sections 145.30, 145.301, 3307.751,	474
3309.021, and 5505.25 of the Revised Code are hereby repealed.	475