As Reported by the Senate Health, Human Services and Aging Committee

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 145.301, 3307.751, 3309.021,

1

3313.16, and 5505.25 of the Revised Code to permit

2

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 and to authorize school boards to

8

grant high school diplomas to women who left high

9

school to support their families or the war effort

10

during World War II, the Korean Conflict, or the

11

Vietnam Conflict.

12

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

Section 1. That sections 145.301, 3307.751, 3309.021,	13
3313.16, and 5505.25 of the Revised Code be amended to read as	14
follows:	15

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

16

(1) "Prisoner of war" means any regularly appointed,	17
enrolled, enlisted, or inducted member of the armed forces of the	18
United States, reserves, or Ohio national guard who was captured,	19
separated, and incarcerated by an enemy of the United States.	20

(2) "Reserves" means personnel of the reserve components of	21
any of the armed forces of the United States enumerated in	22
division (A)(1)(a) of section 145.30 of the Revised Code.	23

(B)(1) A member may purchase service credit that shall be	24
considered as the equivalent of Ohio service for each year or	25
portion of a year of service incurred by reason of having been on	26
active duty as a member of the armed forces of the United States,	27
as defined in section 145.30 of the Revised Code. The	28

(2) On presentation of documentation of the service and	29
subject to public employees retirement board rules, a member may	30
purchase service credit for each year or portion of a year of	31
service incurred by reason of having been on active duty as a	32
member of the reserves or the Ohio national guard for which the	33
member is not eligible to purchase credit under division (B)(1) of	34
this section. Any credit purchased under this section shall be	35
considered as the equivalent of Ohio service credit. For purposes	36
of division (B)(2) of this section, active duty in the reserves or	37
the Ohio national guard includes assembly for drill and	38
instruction; training at encampments, maneuvers, outdoor target	39
practice, or other exercises; and any training or duty in this	40
state ordered by the governor.	41

(3) Credit shall not be granted for any period of duty during	42
which the member was contributing to the retirement system.	43

The credit may be purchased at any time prior to receipt of a	44
retirement allowance. The number of years purchased shall not	45
exceed five. The member may choose to purchase only part of such	46
credit in any one payment, subject to public employees retirement	47
board rules.	48

(B) For the purposes of this division, "prisoner of war"	49
means any regularly appointed, enrolled, enlisted, or inducted	50
member of the armed forces of the United States who was captured,	51
separated, and incarcerated by an enemy of the United States.	52

(C) A member may purchase service credit that shall be	53
considered as the equivalent of Ohio service for each year of	54
service such member was a prisoner of war. The number of years	55
purchased under this division shall not exceed five. Service	56
credit may be purchased under this division for the same years of	57
service used to purchase service credit under division (A)(B) of	58
this section. The member may choose to purchase only part of such	59
credit in any one payment, subject to board rules.	60

(C)(D) The total number of years purchased under this section	61
shall not exceed the member's total accumulated number of years of	62
Ohio service.	63

(D)(E)(1) For each year or portion of a year of service	64
purchased under division (A)(B)(1) or (B)(C) of this section, the	65
member shall pay to the public employees retirement system for	66
credit to the member's accumulated account an amount specified by	67
the retirement board that shall be not less than fifty per cent of	68
the additional liability resulting from the purchase of that year	69
or portion of a year of service as determined by an actuary	70
employed by the board.	71

(E)(2) For each year or portion of a year of service credit	72
purchased under division (B)(2) of this section, the member shall	73
pay to the public employees retirement system for credit to the	74
member's accumulated account an amount equal to one hundred per	75
cent of the additional liability resulting from the purchase of	76
that year or portion of a year of service as determined by an	77
actuary employed by the board.	78

The retirement system shall calculate the number of years or	79
portion of a year of credit the member is eligible to purchase	80
under division (B)(2) of this section by dividing the number of	81
days actually served by three hundred sixty-five.	82

(F) A member is ineligible to purchase service credit under	83
this section for any year of military service that was:	84

(1) Used in the calculation of any retirement benefit	85
currently being paid to the member or payable in the future under	86
any other retirement program, except social security, or for	87
retired pay for nonregular service under Chapter 1223 of Section	88
1662 of Title XVI of the "National Defense Authorization Act for	89
Fiscal Year 1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to	90
12739;	91

(2) Used to obtain service credit pursuant to section 145.30	92
or 145.302 of the Revised Code.	93

At the time the credit is purchased, the member shall certify	94
on a form furnished by the retirement board that the member does	95
and will conform to this requirement.	96

(F)(G) A member who, on March 17, 2000, is purchasing service	97
credit under this section by making installment payments to the	98
system or by a payroll deduction plan authorized under section	99
145.294 of the Revised Code may elect, on a form provided by the	100
board, to have a portion of the cost of the service credit	101
recalculated under division (D)(E) of this section as amended by	102
House Bill 186 of the 123rd general assembly. The recalculation	103
shall apply only to the amount still owed by the member as of the	104
date the election is filed with the board.	105

For each member who makes an election, the board shall do all	106
of the following:	107

(1) Determine the amount of the total cost of the service	108
credit still owed by the member as of the date the election is	109
filed with the board and the number of years or portion of a year	110
of service credit attributable to that amount;	111

(2) Recalculate under division (D)(E) of this section the	112
cost of the service credit described in division (F)(G)(1) of this	113
section;	114

(3) Notify the member of the recalculated amount.

115

If the recalculated amount is less than the amount still owed	116
by the member as of the date the election is filed, the	117
recalculated amount shall be the amount owed by the member.	118

(G)(H) Credit purchased under this section may be combined	119
pursuant to section 145.37 with credit for military service	120
purchased under sections 3307.751 and 3309.021, except that not	121
more than an aggregate total of five years of credit purchased	122
under division (A)(B) of this section, division (A) of section	123
3307.751, and division (A) of section 3309.021, and not more than	124
an aggregate total of five years of credit purchased under	125
division (B)(C) of this section, division (B) of section 3307.751,	126
and division (B) of section 3309.021 shall be used in determining	127
retirement eligibility or calculating benefits under section	128
145.37 of the Revised Code.	129

Sec. 3307.751.  (A)(1) A member participating in the plan	130
described in sections 3307.50 to 3307.79 of the Revised Code may	131
purchase service credit that shall be considered as the equivalent	132
of Ohio service for each year or portion of a year of service	133
incurred by reason of having been on active duty as a member of	134
the armed forces of the United States, as defined in section	135
3307.75 of the Revised Code. The	136

(2) As used in division (A)(2) of this section, "reserves"	137
means a reserve component of any of the armed forces of the United	138
States enumerated in division (A)(1) of section 3307.75 of the	139
Revised Code.	140

On presentation of documentation of the service and subject	141
to state teachers retirement board rules, a member participating	142
in the plan described in sections 3307.50 to 3307.79 of the	143
Revised Code may purchase service credit that shall be considered	144
as the equivalent of Ohio service for each year or portion of a	145
year of service incurred by reason of having been on active duty	146
as a member of the Ohio national guard or reserves for which the	147
member is not eligible to purchase credit under division (A)(1) of	148
this section. For purposes of division (A)(2) of this section,	149
active duty in the reserves or the Ohio national guard includes	150
assembly for drill and instruction; training at encampments,	151
maneuvers, outdoor target practice, or other exercises; and any	152
training or duty in this state ordered by the governor.	153

(3) Credit shall not be granted for any period of duty during	154
which the member was contributing to the retirement system.	155

The credit may be purchased at any time prior to the	156
effective date of a benefit. The number of years purchased under	157
this division shall not exceed five.	158

(B) For the purposes of this division, "prisoner of war"	159
means any regularly appointed, enrolled, enlisted, or inducted	160
member of the armed forces of the United States who was captured,	161
separated, and incarcerated by an enemy of the United States.	162

A member participating in the plan described in sections	163
3307.50 to 3307.79 of the Revised Code may purchase service credit	164
that shall be considered as the equivalent of Ohio service for	165
each year of service such member was a prisoner of war. The number	166
of years purchased under this division shall not exceed five.	167
Service credit may be purchased under this division for the same	168
years of service used to purchase service credit under division	169
(A) of this section.	170

(C) The total number of years purchased under this section	171
shall not exceed the member's total accumulated number of years of	172
Ohio service.	173

(D)(1) Except as otherwise provided in division (D)(2) or (3)	174
of this section, for each year or portion of a year of service	175
purchased under division (A) or (B) of this section, the member	176
shall pay to the state teachers retirement system for credit to	177
the member's accumulated account an amount determined by the	178
member rate of contribution in effect at the time the military	179
service began multiplied by the member's annual compensation for	180
full-time employment during the first year of service in Ohio	181
following termination of military service. If, however, a limit on	182
maximum salary or maximum contribution was in effect at the time	183
the military service began, the limit shall be applied to the	184
salary received during the first year of service in Ohio to	185
calculate the amount of payment. To this amount shall be added an	186
amount equal to compound interest at a rate established by the	187
state teachers retirement board from the date active military	188
service terminated to date of payment.	189

(2) For each year of service purchased under division (A)(1)	190
or (B) of this section for military service that commenced on or	191
after July 1, 1989, and, without regard to when the military	192
service commenced, for each year of service purchased under	193
division (A) or (B) of this section by a member who first	194
established membership in the retirement system on or after July	195
1, 1989, the member shall pay to the retirement system for credit	196
to the member's individual account an amount specified by the	197
state teachers retirement board that shall be not less than fifty	198
per cent of the additional liability resulting from the purchase	199
of that year of service as determined by an actuary employed by	200
the board.	201

(3) For each year or portion of a year of service in the	202
reserves or Ohio national guard purchased under division (A)(2) of	203
this section, the member shall pay to the retirement system for	204
credit to the member's individual account an amount equal to one	205
hundred per cent of the additional liability resulting from the	206
purchase of that year of service as determined by an actuary	207
employed by the board. The retirement system shall calculate the	208
number of years or portions of a year of credit the member is	209
eligible to purchase under division (A)(2) of this section by	210
dividing the number of days actually served by three hundred	211
sixty-five.	212

(4) A member may choose to purchase only part of the credit	213
the member is eligible to purchase under this section in any one	214
payment, subject to board rules.	215

(E) A member of the state teachers retirement system is	216
ineligible to purchase service credit under this section for any	217
year of military service that was:	218

(1) Used in the calculation of any retirement benefit	219
currently being paid to such member or payable in the future under	220
any other retirement program, except for retired pay for	221
non-regular service under Chapter 1223 of Section 1662 of Title	222
XVI of the "National Defense Authorization Act for Fiscal Year	223
1995," 108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or	224
social security;	225

(2) Used to obtain service credit pursuant to section 3307.75	226
or 3307.752 of the Revised Code.	227

At the time the credit is purchased, the member shall certify	228
on a form furnished by the board that the member does and will	229
conform to this requirement.	230

(F) Credit purchased under this section may be combined	231
pursuant to section 3307.57 of the Revised Code with credit for	232
military service purchased under sections 145.301 and 3309.021 of	233
the Revised Code, except that not more than a total of five years	234
of credit purchased under division (A) of this section, division	235
(A)(B) of section 145.301, and division (A) of section 3309.021	236
and not more than a total of five years of credit purchased under	237
division (B) of this section, division (B)(C) of section 145.301,	238
and division (B) of section 3309.021 of the Revised Code shall be	239
used in determining retirement eligibility or calculating benefits	240
under section 3307.57 of the Revised Code.	241

Sec. 3309.021.  (A)(1) A member may purchase service credit	242
that shall be considered as the equivalent of Ohio service for	243
each year or portion of a year of service incurred by reason of	244
having been on active duty as a member of the armed forces of the	245
United States, as defined in section 3309.02 of the Revised Code.	246
All	247

(2) As used in division (A)(2) of this section, "reserves"	248
means a reserve component of any of the armed forces of the United	249
States enumerated in division (A)(1) of section 3309.02 of the	250
Revised Code.	251

On presentation of documentation of the service and subject	252
to school employees retirement board rules, a member may purchase	253
service credit that shall be considered as the equivalent of Ohio	254
service for each year or portion of a year of service incurred by	255
reason of having been on active duty as a member of the Ohio	256
national guard or reserves for which the member is not eligible to	257
purchase credit under division (A)(1) of this section. For	258
purposes of division (A)(2) of this section, active duty in the	259
reserves or the Ohio national guard includes assembly for drill	260
and instruction; training at encampments, maneuvers, outdoor	261
target practice, or other exercises; and any training or duty in	262
this state ordered by the governor.	263

(3) Credit shall not be granted for any period of duty during	264
which the member was contributing to the retirement system.	265

All or part of the credit may be purchased at any time prior	266
to receipt of a retirement allowance. The number of years	267
purchased under this division shall not exceed five.	268

(B) For the purposes of this division, "prisoner of war"	269
means any regularly appointed, enrolled, enlisted, or inducted	270
member of the armed forces of the United States who was captured,	271
separated, and incarcerated by an enemy of the United States.	272

A member may purchase service credit that shall be considered	273
as the equivalent of Ohio service for each year of service such	274
member was a prisoner of war. The number of years purchased under	275
this division shall not exceed five. Service credit may be	276
purchased under this division for the same years of service used	277
to purchase service credit under division (A) of this section. The	278
member may choose to purchase only part of such credit in any one	279
payment, subject to board rules.	280

(C) The total number of years purchased under this section	281
shall not exceed the member's total accumulated number of years of	282
Ohio service.	283

(D)(1) For each year or portion of a year of service	284
purchased under division (A)(1) or (B) of this section, the member	285
shall pay to the school employees retirement system for credit to	286
the member's accumulated account an amount determined by the	287
member rate of contribution in effect at the time the military	288
service began multiplied by the annual compensation for full-time	289
employment during the first year of service covered by the school	290
employees retirement system, public employees retirement system,	291
or state teachers retirement system following termination of	292
military service. If, however, a limit on maximum salary or	293
maximum contribution was in effect at the time the military	294
service began, the limit shall be applied to the salary received	295
during the first year of service in Ohio to calculate the amount	296
of payment. To this amount shall be added an amount equal to	297
compound interest at a rate established by the school employees	298
retirement board from the date of the member's first service	299
covered by the school employees retirement system, public	300
employees retirement system, or state teachers retirement system	301
following termination of the military service to date of payment.	302

(2) For each year or portion of a year of service in the	303
reserves or Ohio national guard purchased under division (A)(2) of	304
this section, the member shall pay to the retirement system for	305
credit to the member's individual account an amount equal to one	306
hundred per cent of the additional liability resulting from the	307
purchase of that year of service as determined by an actuary	308
employed by the board. The retirement system shall calculate the	309
number of years or portions of a year of credit the member is	310
eligible to purchase under division (A)(2) of this section by	311
dividing the number of days actually served by three hundred	312
sixty-five.	313

(E) A member of the school employees retirement system is	314
ineligible to purchase service credit under this section for any	315
year of military service that was:	316

(1) Used in the calculation of any retirement benefit	317
currently being paid to the member or payable in the future under	318
any other retirement program, except for retired pay for	319
nonregular service under Chapter 1223 of Section 1662 of Title XVI	320
of the "National Defense Authorization Act for Fiscal Year 1995,"	321
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social	322
security;	323

(2) Used to obtain service credit pursuant to section 3309.02	324
or 3309.022 of the Revised Code.	325

At the time such credit is purchased, the member shall	326
certify on a form furnished by the retirement board that the	327
member does and will conform to this requirement.	328

(F) Credit purchased under this section may be combined	329
pursuant to section 3309.35 of the Revised Code with credit for	330
military service purchased under sections 145.301 and 3307.751 of	331
the Revised Code, except that not more than an aggregate total of	332
five years of credit purchased under division (A) of this section,	333
division (A)(B) of section 145.301, and division (A) of section	334
3307.751 of the Revised Code, and not more than an aggregate total	335
of five years of credit purchased under division (B) of this	336
section, division (B)(C) of section 145.301, and division (B) of	337
section 3307.751 of the Revised Code shall be used in determining	338
retirement eligibility or calculating benefits under section	339
3309.35 of the Revised Code.	340

Sec. 3313.616.  (A)(1) Notwithstanding the requirements of	341
sections 3313.61, 3313.611, and 3313.612 of the Revised Code, the	342
board of education of any city, exempted village, or local school	343
district or the governing authority of any chartered nonpublic	344
school may grant a high school diploma to any veteran of World War	345
II, the Korean conflict, or the Vietnam conflict who is a resident	346
of this state or who was previously enrolled in any high school in	347
this state if all of the following apply:	348

(a)(1) The veteran either:

349

(i)(a) Left a public or nonpublic school located in any state	350
prior to graduation in order to serve in the armed forces of the	351
United States;	352

(ii)(b) Left a public or nonpublic school located in any	353
state prior to graduation due to family circumstances and	354
subsequently entered the armed forces of the United States.	355

(b)(2) The veteran received an honorable discharge from the	356
armed forces of the United States.	357

(c)(3) The veteran has not been granted a diploma as provided	358
in section 3313.61 or 3313.612 of the Revised Code, a diploma of	359
adult education as provided in section 3313.611 of the Revised	360
Code, or a diploma under this section.	361

(2)(B) Notwithstanding the requirements of sections 3313.61,	362
3313.611, and 3313.612 of the Revised Code, the board of education	363
of any city, exempted village, or local school district or the	364
governing authority of any chartered nonpublic school may grant a	365
high school diploma to any woman who left high school during World	366
War II, the Korean conflict, or the Vietnam conflict and who is a	367
resident of this state or was previously enrolled in any high	368
school in this state, if both of the following apply:	369

(1) The woman either:

370

(a) Left a public or nonpublic school located in any state	371
prior to graduation in order to join the workforce to support her	372
family or to join the war effort;	373

(b) Left a public or nonpublic school located in any state	374
prior to graduation due to family circumstances and subsequently	375
joined the workforce or war effort.	376

(2) The woman has not been granted a diploma as provided in	377
section 3313.61 or 3313.612 of the Revised Code, a diploma of	378
adult education as provided in section 3313.611 of the Revised	379
Code, or a diploma under this section.	380

(C) If a veteranperson who would otherwise qualify for a	381
diploma under this section is deceased, the board of education of	382
any school district or the governing authority of any chartered	383
nonpublic school may award such diploma to the veteranperson	384
posthumously and may present that diploma to a living relative of	385
the veteranperson.	386

(B)(D) The governor's office of veterans' affairs, in	387
accordance with section 111.15 of the Revised Code, and with the	388
advice and consent of the veterans advisory committee established	389
under division (K) of section 5902.02 of the Revised Code, shall	390
develop and adopt rules to implement this section. Such rules	391
shall include, but not be limited to, rules establishing	392
procedures for application and verification of eligible veterans	393
persons for a diploma under this section.	394

Sec. 5505.25.  (A)(1) 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. Credits	400

(2) On presentation of documentation of the service and	401
subject to state highway patrol retirement board rules, a member	402
who is not receiving a pension from the system may purchase	403
service credit for each year or portion of a year of service	404
incurred by reason of having been on active duty as a member of	405
the Ohio national guard or a reserve component of any of the armed	406
forces for which the member is not eligible to purchase credit	407
under division (A)(1) of this section.	408

For purposes of division (A)(2) of this section, active duty	409
in the reserves or the Ohio national guard includes assembly for	410
drill and instruction; training at encampments, maneuvers, outdoor	411
target practice, or other exercises; and any training or duty in	412
this state ordered by the governor.	413

(3) Credit shall not be granted for any period of duty during	414
which the member was contributing to the retirement system.	415

Credits that are not authorized under division (D) of section	416
5505.16 of the Revised Code may be purchased at any time. The	417
number of years purchased under this division shall not exceed	418
five.	419

(B) For the purposes of this division, "prisoner of war"	420
means any regularly appointed, enrolled, enlisted, or inducted	421
member of the uniformed services of the United States who was	422
captured, separated, and incarcerated by an enemy of the United	423
States.	424

A member may purchase service credit for each year of service	425
such member was a prisoner of war. The number of years purchased	426
under this division shall not exceed five. Service credit may be	427
purchased under this division for the same years of service used	428
to purchase service credit under division (A) of this section. The	429
member may choose to purchase only part of such credit in any one	430
payment, subject to board rules.	431

(C) The total number of years purchased under this section	432
shall not exceed the member's total accumulated number of years in	433
the service of the state highway patrol.	434

Credit purchased by a member under this section shall be used	435
to determine the member's eligibility for retirement under	436
sections 5505.16 and 5505.17 of the Revised Code.	437

(D)(1) For each year or portion of a year of service	438
purchased under division (A)(1) or (B) of this section, the member	439
shall pay to the system for credit to the member's accumulated	440
account an amount determined by the member rate of contribution in	441
effect at the time the military service began multiplied by the	442
annual compensation for full-time employment during the first year	443
of service in Ohio following termination of military service. To	444
this amount shall be added an amount equal to compound interest at	445
a rate established by the state highway patrol retirement board	446
from the date active military service terminated to date of	447
payment.	448

A(2) For each year or portion of a year of service in the	449
reserves or Ohio national guard purchased under division (A)(2) of	450
this section, the member shall pay to the retirement system for	451
credit to the member's individual account an amount equal to one	452
hundred per cent of the additional liability resulting from the	453
purchase of that year of service as determined by an actuary	454
employed by the board. The retirement system shall calculate the	455
number of years or portions of a year of credit the member is	456
eligible to purchase under division (A)(2) of this section by	457
dividing the number of days actually served by three hundred	458
sixty-five.	459

(E) A member is ineligible to purchase service credit under	460
this section for any year of military service that was:	461

(1) Used in the calculation of any retirement benefit	462
currently being paid to the member or payable in the future under	463
any other retirement program, except for retired pay for	464
nonregular service under Chapter 1223 of Section 1662 of Title XVI	465
of the "National Defense Authorization Act for Fiscal Year 1995,"	466
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social	467
security;	468

(2) Used to obtain service credit pursuant to section 5505.16	469
of the Revised Code.	470

At the time the credit is purchased, the member shall certify	471
on a form furnished by the board that the member does and will	472
conform to this requirement. Any benefit paid under this section	473
to which the member is not entitled shall be recovered by any	474
recovery procedures available under this chapter.	475

As used in this section, "uniformed services" of the United	476
States has the same meaning as in division (D) of section 5505.16	477
of the Revised Code.	478

Section 2. That existing sections 145.301, 3307.751,	479
3309.021, 3313.616, and 5505.25 of the Revised Code are hereby	480
repealed.	481