As Passed by the Senate

126th General Assembly Regular Session 2005-2006

Am. S. B. No. 206

Senators Coughlin, Fedor, Armbruster, Hagan, Harris, Niehaus, Schuring, Spada, Kearney, Mumper, Fingerhut, Stivers 

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A BILL

To amend sections 742.63, 5505.12, and 5505.18 and to

1

enact sections 5505.50 to 5505.59 of the Revised

2

Code to provide for the establishment of the State

3

Highway Patrol Retirement System deferred

4

retirement option plan.

5

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

Section 1. That sections 742.63, 5505.12, and 5505.18 be	6
amended and sections 5505.50, 5505.51, 5505.52, 5505.53, 5505.54,	7
5505.55, 5505.56, 5505.57, 5505.58, and 5505.59 of the Revised	8
Code be enacted to read as follows:	9

Sec. 742.63.  The board of trustees of the Ohio police and	10
fire pension fund shall adopt rules for the management of the Ohio	11
public safety officers death benefit fund and for disbursements of	12
benefits as set forth in this section.	13

(A) As used in this section:

14

(1) "Member" means all of the following:

15

(a) A member of the Ohio police and fire pension fund,	16
including a member of the fund who has elected to participate in	17
the deferred retirement option plan established under section	18
742.43 of the Revised Code or a member of or contributor to a	19
police or firemen's relief and pension fund established under	20
former Chapter 521. or 741. of the Revised Code;	21

(b) A member of the state highway patrol retirement system,	22
including a member who is participating in the deferred retirement	23
option plan established under section 5505.50 of the Revised Code;	24

(c) A member of the public employees retirement system who at	25
the time of the member's death was one of the following:	26

(i) A county sheriff or deputy sheriff;

27

(ii) A full-time regular police officer in a municipal	28
corporation or township;	29

(iii) A full-time regular firefighter employed by the state,	30
an instrumentality of the state, a municipal corporation, a	31
township, a joint fire district, or another political subdivision;	32

(iv) A full-time park district ranger or patrol trooper;

33

(v) A full-time law enforcement officer of the department of	34
natural resources;	35

(vi) A full-time department of public safety enforcement	36
agent;	37

(vii) A full-time law enforcement officer of parks, waterway	38
lands, or reservoir lands under the control of a municipal	39
corporation;	40

(viii) A full-time law enforcement officer of a conservancy	41
district;	42

(ix) A correction officer at an institution under the control	43
of a county, a group of counties, a municipal corporation, or the	44
department of rehabilitation and correction;	45

(x) A state university law enforcement officer.

46

(d) A member of a retirement system operated by a municipal	47
corporation who at the time of death was a full-time law	48
enforcement officer of parks, waterway lands, or reservoir lands	49
under the control of the municipal corporation.	50

(2) Notwithstanding section 742.01 of the Revised Code, "fire	51
or police department" includes a fire department of the state or	52
an instrumentality of the state or of a municipal corporation,	53
township, joint fire district, or other political subdivision, the	54
state highway patrol, a county sheriff's office, the security	55
force of an institution under the control of the department of	56
rehabilitation and correction, the security force of a jail or	57
workhouse under the control of a county, group of counties, or	58
municipal corporation, the security force of a metropolitan,	59
county, or township park district, the security force of lands	60
under the control of the department of natural resources,	61
department of public safety enforcement agents, the security force	62
of parks, waterway lands, or reservoir lands under the control of	63
a municipal corporation, the security force of a conservancy	64
district, the police department of a township or municipal	65
corporation, and the police force of a state university.	66

(3) "Firefighter or police officer" includes a state highway	67
patrol trooper, a county sheriff or deputy sheriff, a correction	68
officer at an institution under the control of a county, a group	69
of counties, a municipal corporation, or the department of	70
rehabilitation and correction, a police officer employed by a	71
township or municipal corporation, a firefighter employed by the	72
state, an instrumentality of the state, a municipal corporation, a	73
township, a joint fire district, or another political subdivision,	74
a full-time park district ranger or patrol trooper, a full-time	75
law enforcement officer of the department of natural resources, a	76
full-time department of public safety enforcement agent, a	77
full-time law enforcement officer of parks, waterway lands, or	78
reservoir lands under the control of a municipal corporation, a	79
full-time law enforcement officer of a conservancy district, and a	80
state university law enforcement officer.	81

(4) "Correction officer" includes, in addition to any	82
correction officer, any correction corporal, sergeant, lieutenant,	83
or captain, and the equivalents of all such persons.	84

(5) "A park district ranger or patrol trooper" means a peace	85
officer commissioned to make arrests, execute warrants, and	86
preserve the peace upon lands under the control of a board of park	87
commissioners of a metropolitan, county, or township park	88
district.	89

(6) "Metropolitan, county, or township park district" means a	90
park district created under the authority of Chapter 511. or 1545.	91
of the Revised Code.	92

(7) "Conservancy district" means a conservancy district	93
created under the authority of Chapter 6101. of the Revised Code.	94

(8) "Law enforcement officer" means an officer commissioned	95
to make arrests, execute warrants, and preserve the peace upon	96
lands under the control of the governmental entity granting the	97
commission.	98

(9) "Department of natural resources law enforcement officer"	99
includes a forest officer designated pursuant to section 1503.29	100
of the Revised Code, a preserve officer designated pursuant to	101
section 1517.10 of the Revised Code, a wildlife officer designated	102
pursuant to section 1531.13 of the Revised Code, a park officer	103
designated pursuant to section 1541.10 of the Revised Code, and a	104
state watercraft officer designated pursuant to section 1547.521	105
of the Revised Code.	106

(10) "Retirement eligibility date" means the last day of the	107
month in which a deceased member would have first become eligible,	108
had the member lived, for the retirement pension provided under	109
section 145.33, Chapter 521. or 741., division (C)(1) of section	110
742.37, or division (A)(1) of section 5505.17 of the Revised Code	111
or provided by a retirement system operated by a municipal	112
corporation.	113

(11) "Death benefit amount" means an amount equal to the full	114
monthly salary received by a deceased member prior to death, minus	115
an amount equal to the benefit received under section 145.45,	116
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	117
received from a retirement system operated by a municipal	118
corporation, plus any increases in salary that would have been	119
granted the deceased member.	120

(12) "Killed in the line of duty" means either of the	121
following:	122

(a) Death in the line of duty;

123

(b) Death from injury sustained in the line of duty,	124
including heart attack or other fatal injury or illness caused	125
while in the line of duty.	126

(B) A spouse of a deceased member shall receive a death	127
benefit each month equal to the full death benefit amount,	128
provided that the deceased member was a firefighter or police	129
officer killed in the line of duty and there are no surviving	130
children eligible for a benefit under this section. The spouse	131
shall receive this benefit during the spouse's natural life until	132
the deceased member's retirement eligibility date, on which date	133
the benefit provided under this division shall terminate.	134

(C)(1) If a member killed in the line of duty as a	135
firefighter or police officer is survived only by a child or	136
children, the child or children shall receive a benefit each month	137
equal to the full death benefit amount. If there is more than one	138
surviving child, the benefit shall be divided equally among these	139
children.	140

(2) If the death benefit paid under this division is divided	141
among two or more surviving children and any of the children	142
become ineligible to continue receiving a portion of the benefit	143
as provided in division (H) of this section, the full death	144
benefit amount shall be paid to the remaining eligible child or	145
divided among the eligible children so that the benefit paid to	146
the remaining eligible child or children equals the full death	147
benefit amount.	148

(3) Notwithstanding divisions (C)(1) and (2) of this section,	149
all death benefits paid under this division shall terminate on the	150
deceased member's retirement eligibility date.	151

(D) If a member killed in the line of duty as a firefighter	152
or police officer is survived by both a spouse and a child or	153
children, the monthly benefit provided shall be as follows:	154

(1)(a) If there is a surviving spouse and one surviving	155
child, the spouse shall receive an amount each month equal to	156
one-half of the full death benefit amount and the child shall	157
receive an amount equal to one-half of the full death benefit	158
amount.	159

(b) If the surviving spouse dies or the child becomes	160
ineligible as provided in division (H) of this section, the	161
surviving spouse or child remaining eligible shall receive the	162
full death benefit amount.	163

(2)(a) If there is a surviving spouse and more than one	164
child, the spouse shall receive an amount each month equal to	165
one-third of the full death benefit amount and the children shall	166
receive an amount, equally divided among them, equal to two-thirds	167
of the full death benefit amount.	168

(b) If a spouse and more than one child each are receiving a	169
death benefit under division (D)(2)(a) of this section and the	170
spouse dies, the children shall receive an amount each month,	171
equally divided among them, equal to the full death benefit	172
amount.	173

(c) If a spouse and more than one child each are receiving a	174
benefit under division (D)(2)(a) of this section and any of the	175
children becomes ineligible to receive a benefit as provided in	176
division (H) of this section, the spouse and remaining eligible	177
child or children shall receive a death benefit as follows:	178

(i) If there are two or more remaining eligible children, the	179
spouse shall receive an amount each month equal to one-third of	180
the full death benefit amount and the children shall receive an	181
amount each month, equally divided among them, equal to two-thirds	182
of the full death benefit amount;	183

(ii) If there is one remaining eligible child, the spouse	184
shall receive an amount each month equal to one-half of the full	185
death benefit amount, and the child shall receive an amount each	186
month equal to one-half of the full death benefit amount.	187

(d) If a spouse and more than one child each are receiving a	188
benefit under division (D)(2)(a) of this section and all of the	189
children become ineligible to receive a benefit as provided in	190
division (H) of this section, the spouse shall receive the full	191
death benefit amount.	192

(3) Notwithstanding divisions (D)(1) and (2) of this section,	193
death benefits paid under this division to a surviving spouse	194
shall terminate on the member's retirement eligibility date. Death	195
benefits paid to a surviving child or children shall terminate on	196
the deceased member's retirement eligibility date unless earlier	197
terminated pursuant to division (H) of this section.	198

(E) If a member, on or after January 1, 1980, is killed in	199
the line of duty as a firefighter or police officer and is	200
survived by only a parent or parents dependent upon the member for	201
support, the parent or parents shall receive an amount each month	202
equal to the full death benefit amount. If there is more than one	203
surviving parent dependent upon the deceased member for support,	204
the death benefit amount shall be divided equally among the	205
surviving parents. On the death of one of the surviving parents,	206
the full death benefit amount shall be paid to the other parent.	207

(F)(1) The following shall receive a monthly death benefit	208
under this division:	209

(a) A surviving spouse whose benefits are terminated in	210
accordance with division (B) or (D)(3) of this section on the	211
deceased member's retirement eligibility date, or who would	212
qualify for a benefit under division (B) or (D) of this section	213
except that the deceased member reached the member's retirement	214
eligibility date prior to the member's death;	215

(b) A qualified surviving spouse of a deceased member of or	216
contributor to a police or firemen's relief and pension fund	217
established under former Chapter 521. or 741. of the Revised Code	218
who was a firefighter or police officer killed in the line of	219
duty.	220

(2) The monthly death benefit shall be one-half of an amount	221
equal to the monthly salary received by the deceased member prior	222
to the member's death, plus any salary increases the deceased	223
member would have received prior to the member's retirement	224
eligibility date. The benefit shall terminate on the surviving	225
spouse's death. A death benefit payable under this division shall	226
be reduced by an amount equal to any allowance or benefit payable	227
to the surviving spouse under section 742.3714 of the Revised	228
Code.	229

(3) A benefit granted to a surviving spouse under division	230
(F)(1)(b) of this section shall commence on the first day of the	231
month immediately following receipt by the board of a completed	232
application on a form provided by the board and any evidence the	233
board may require to establish that the deceased spouse was killed	234
in the line of duty.	235

(G)(1) If there is not a surviving spouse eligible to receive	236
a death benefit under division (F) of this section or the	237
surviving spouse receiving a death benefit under that division	238
dies, a surviving child or children whose benefits under division	239
(C) or (D) of this section are or have been terminated pursuant to	240
division (C)(3) or (D)(3) of this section or who would qualify for	241
a benefit under division (C) or (D) of this section except that	242
the deceased member reached the member's retirement eligibility	243
date prior to the member's death shall receive a monthly death	244
benefit under this division. The monthly death benefit shall be	245
one-half of an amount equal to the monthly salary received by the	246
deceased member prior to the member's death, plus any salary	247
increases the member would have received prior to the member's	248
retirement eligibility date. If there is more than one surviving	249
child, the benefit shall be divided equally among the surviving	250
children.	251

(2) If two or more surviving children each are receiving a	252
benefit under this division and any of those children becomes	253
ineligible to continue receiving a benefit as provided in division	254
(H) of this section, the remaining eligible child or children	255
shall receive an amount equal to one-half of the monthly salary	256
received by the deceased member prior to death, plus any salary	257
increases the deceased member would have received prior to the	258
retirement eligibility date. If there is more than one remaining	259
eligible child, the benefit shall be divided equally among the	260
eligible children.	261

(3) A death benefit, or portion of a death benefit, payable	262
to a surviving child under this division shall be reduced by an	263
amount equal to any allowance or benefit payable to that child	264
under section 742.3714 of the Revised Code, but the reduction in	265
that child's benefit shall not affect the amount payable to any	266
other surviving child entitled to a portion of the death benefit.	267

(H) A death benefit paid to a surviving child under division	268
(C), (D), or (G) of this section shall terminate on the death of	269
the child or, unless one of the following is the case, when the	270
child reaches age eighteen:	271

(1) The child, because of physical or mental disability, is	272
unable to provide the child's own support, in which case the death	273
benefit shall terminate when the disability is removed;	274

(2) The child is unmarried, under age twenty-two, and a	275
student in and attending an institution of learning or training	276
pursuant to a program designed to complete in each school year the	277
equivalent of at least two-thirds of the full-time curriculum	278
requirements of the institution, as determined by the trustees of	279
the fund.	280

(I) Acceptance of any death benefit under this section does	281
not prohibit a spouse or child from receiving other benefits	282
provided under the Ohio police and fire pension fund, the state	283
highway patrol retirement system, the public employees retirement	284
system, or a retirement system operated by a municipal	285
corporation.	286

(J) No person shall receive a benefit under this section if	287
any of the following occur:	288

(1) The person fails to exercise the right to a monthly	289
survivor benefit under division (A) or (B) of section 145.45,	290
division (D), (E), or (F) of section 742.37, or division (A)(3),	291
(4), or (7) of section 5505.17 of the Revised Code; to a monthly	292
survivor benefit from a retirement system operated by a municipal	293
corporation; or to a retirement allowance under section 742.3714	294
of the Revised Code.	295

(2) The member's accumulated contributions under this chapter	296
or Chapter 145. or 5505. of the Revised Code are refunded unless	297
the member had been a member of the public employees retirement	298
system and had fewer than eighteen months of total service credit	299
at the time of death.	300

(3) In the case of a full-time park district ranger or patrol	301
trooper, a full-time law enforcement officer of the department of	302
natural resources, a full-time law enforcement officer of parks,	303
waterway lands, or reservoir lands under the control of a	304
municipal corporation, a full-time law enforcement officer of a	305
conservancy district, a correction officer at an institution under	306
the control of a county, group of counties, or municipal	307
corporation, or a member of a retirement system operated by a	308
municipal corporation who at the time of the member's death was a	309
full-time law enforcement officer of parks, waterway lands, or	310
reservoir lands under the control of the municipal corporation,	311
the member died prior to April 9, 1981, in the case of a benefit	312
under division (B), (C), or (D) of this section, or prior to	313
January 1, 1980, in the case of a benefit under division (E) of	314
this section.	315

(4) In the case of a full-time department of public safety	316
enforcement agent who prior to June 30, 1999, was a liquor control	317
investigator of the department of public safety, the member died	318
prior to December 23, 1986;	319

(5) In the case of a full-time department of public safety	320
enforcement agent other than an enforcement agent who, prior to	321
June 30, 1999, was a liquor control investigator, the member died	322
prior to June 30, 1999.	323

(K) A surviving spouse whose benefit was terminated prior to	324
June 30, 1999, due to remarriage shall receive a benefit under	325
division (B), (D), or (F) of this section beginning on the first	326
day of the month following receipt by the board of an application	327
on a form provided by the board. The benefit amount shall be	328
determined as of that date.	329

(1) If the benefit will begin prior to the deceased member's	330
retirement eligibility date, it shall be paid under division (B)	331
or (D) of this section and shall terminate as provided in those	332
divisions. A benefit paid to a surviving spouse under division (D)	333
of this section shall be determined in accordance with that	334
division, even if benefits paid to surviving children are reduced	335
as a result.	336

(2) If the benefit will begin on or after the deceased	337
member's retirement eligibility date, it shall be paid under	338
division (F) of this section and shall terminate as provided in	339
that division. A benefit paid to a surviving spouse under division	340
(F) of this section shall be determined in accordance with that	341
division, even if benefits paid to surviving children are	342
terminated as a result.	343

Sec. 5505.12.  (A) The state highway patrol retirement board	344
shall have prepared annually by or under the supervision of an	345
actuary an actuarial valuation of the pension assets, liabilities,	346
and funding requirements of the state highway patrol retirement	347
system as established pursuant to this chapter. The actuary shall	348
complete the valuation in accordance with actuarial standards of	349
practice promulgated by the actuarial standards board of the	350
American academy of actuaries and prepare a report of the	351
valuation. The report shall include all of the following:	352

(1) A summary of the benefit provisions evaluated;

353

(2) A summary of the census data and financial information	354
used in the valuation;	355

(3) A description of the actuarial assumptions, actuarial	356
cost method, and asset valuation method used in the valuation,	357
including a statement of the assumed rate of payroll growth and	358
assumed rate of growth or decline in the number of members	359
contributing to the retirement system;	360

(4) A summary of findings that includes a statement of the	361
actuarial accrued pension liabilities and unfunded actuarial	362
accrued pension liabilities;	363

(5) A schedule showing the effect of any changes in the	364
benefit provisions, actuarial assumptions, or cost methods since	365
the last annual actuarial valuation;	366

(6) A statement of whether contributions to the retirement	367
system are expected to be sufficient to satisfy the funding	368
objectives established by the board.	369

The board shall submit the report to the Ohio retirement	370
study council and the standing committees of the house of	371
representatives and the senate with primary responsibility for	372
retirement legislation not later than the first day of July	373
following the year for which the valuation was made.	374

(B) At such times as the state highway patrol retirement	375
board determines, and at least once in each five-year period after	376
January 1, 1966, the board shall have prepared by or under the	377
supervision of an actuary an actuarial investigation of the	378
mortality, service, and other experience of the members,	379
retirants, and beneficiaries to update the actuarial assumptions	380
used in the actuarial valuation required by division (A) of this	381
section. The actuary shall prepare a report of the actuarial	382
investigation. The report shall be prepared and any recommended	383
changes in actuarial assumptions shall be made in accordance with	384
the actuarial standards of practice promulgated by the actuarial	385
standards board of the American academy of actuaries. The report	386
shall include all of the following:	387

(1) A summary of relevant decrement and economic assumption	388
experience observed over the period of the investigation;	389

(2) Recommended changes in actuarial assumptions to be used	390
in subsequent actuarial valuations required by division (A) of	391
this section;	392

(3) A measurement of the financial effect of the recommended	393
changes in actuarial assumptions;	394

(4) If the investigation required by this division includes	395
the investigation required by division (F) of this section, a	396
report of the result of that investigation.	397

The board shall submit the report to the Ohio retirement	398
study council and the standing committees of the house of	399
representatives and the senate with primary responsibility for	400
retirement legislation not later than the first day of November	401
following the last fiscal year of the period the report covers.	402

(C) The board may at any time request the actuary to make any	403
studies or actuarial valuations to determine the adequacy of the	404
rates of contributions provided by section 5505.15 of the Revised	405
Code.	406

(D) The board shall have prepared by or under the supervision	407
of an actuary an actuarial analysis of any introduced legislation	408
expected to have a measurable financial impact on the retirement	409
system. The actuarial analysis shall be completed in accordance	410
with the actuarial standards of practice promulgated by the	411
actuarial standards board of the American academy of actuaries.	412
The actuary shall prepare a report of the actuarial analysis,	413
which shall include all of the following:	414

(1) A summary of the statutory changes that are being	415
evaluated;	416

(2) A description of or reference to the actuarial	417
assumptions and actuarial cost method used in the report;	418

(3) A description of the participant group or groups included	419
in the report;	420

(4) A statement of the financial impact of the legislation,	421
including the resulting increase, if any, in the employer normal	422
cost percentage; the increase, if any, in actuarial accrued	423
liabilities; and the per cent of payroll that would be required to	424
amortize the increase in actuarial accrued liabilities as a level	425
per cent of covered payroll for all active members over a period	426
not to exceed thirty years;	427

(5) A statement of whether the scheduled contributions to the	428
system after the proposed change is enacted are expected to be	429
sufficient to satisfy the funding objectives established by the	430
board.	431

Not later than sixty days from the date of introduction of	432
the legislation, the board shall submit a copy of the actuarial	433
analysis to the legislative service commission, the standing	434
committees of the house of representatives and the senate with	435
primary responsibility for retirement legislation, and the Ohio	436
retirement study council.	437

(E) The board shall have prepared annually a report giving a	438
full accounting of the revenues and costs relating to the	439
provision of benefits under section 5505.28 of the Revised Code.	440
The report shall be made as of December 31, 1997, and the	441
thirty-first day of December of each year thereafter. The report	442
shall include the following:	443

(1) A description of the statutory authority for the benefits	444
provided;	445

(2) A summary of the benefits;

446

(3) A summary of the eligibility requirements for the	447
benefits;	448

(4) A statement of the number of participants eligible for	449
the benefits;	450

(5) A description of the accounting, asset valuation, and	451
funding method used to provide the benefits;	452

(6) A statement of the net assets available for the provision	453
of the benefits as of the last day of the fiscal year;	454

(7) A statement of any changes in the net assets available	455
for the provision of benefits, including participant and employer	456
contributions, net investment income, administrative expenses, and	457
benefits provided to participants, as of the last day of the	458
fiscal year;	459

(8) For the last six consecutive fiscal years, a schedule of	460
the net assets available for the benefits, the annual cost of	461
benefits, administrative expenses incurred, and annual employer	462
contributions allocated for the provision of benefits;	463

(9) A description of any significant changes that affect the	464
comparability of the report required under this division;	465

(10) A statement of the amount paid under division (B) of	466
section 5505.28 of the Revised Code.	467

The board shall submit the report to the Ohio retirement	468
study council and the standing committees of the house of	469
representatives and the senate with primary responsibility for	470
retirement legislation not later than the thirtieth day of June	471
following the year for which the report was made.	472

(F) At least once in each five-year period, the board shall	473
have prepared by or under the supervision of an actuary an	474
actuarial investigation of the deferred retirement option plan	475
established under section 5505.50 of the Revised Code. The	476
investigation shall include an examination of the financial	477
impact, if any, on the retirement system of offering the plan to	478
members.	479

The actuary shall prepare a report of the actuarial	480
investigation. The report shall include a determination of whether	481
the plan, as established or modified, has a negative financial	482
impact on the retirement system and, if so, recommendations on how	483
to modify the plan to eliminate the negative financial impact. If	484
the actuarial report indicates that the plan has a negative	485
financial impact on the retirement system, the board shall modify	486
the plan. If the board modifies the plan, the rights and	487
obligations of members who have already elected to participate	488
shall not be altered.	489

The state's contributions to the employer accumulation fund	490
shall not be increased to offset any negative financial impact of	491
the deferred retirement option plan.	492

The board may include the actuarial investigation required	493
under this division as part of the actuarial investigation	494
required under division (B) of this section. If the report of the	495
actuarial investigation required by this division is not included	496
in the report required by division (B) of this section, the board	497
shall submit the report required by this division to the Ohio	498
retirement study council and the standing committees of the house	499
of representatives and the senate with primary responsibility for	500
retirement legislation not later than the first day of November	501
following the last fiscal year of the period the report covers.	502

Sec. 5505.18.  As used in this section, "member" does not	503
include state highway patrol cadets attending training schools	504
pursuant to section 5503.05 of the Revised Code.	505

(A) Upon the application of a member of the state highway	506
patrol retirement system, a person acting on behalf of a member,	507
or the superintendent of the state highway patrol on behalf of a	508
member, a member who becomes totally and permanently incapacitated	509
for duty in the employ of the state highway patrol may be retired	510
by the board.	511

The medical or psychological examination of a member who has	512
applied for disability retirement shall be conducted by a	513
competent health-care professional or professionals appointed by	514
the board. The health-care professional or professionals shall	515
file a written report with the board containing the following	516
information:	517

(1) Whether the member is totally incapacitated for duty in	518
the employ of the patrol;	519

(2) Whether the incapacity is expected to be permanent;

520

(3) The cause of the member's incapacity.

521

The board shall determine whether the member qualifies for	522
disability retirement and its decision shall be final. The board	523
shall consider the written medical or psychological report,	524
opinions, statements, and other competent evidence in making its	525
determination. If the incapacity is a result of heart disease or	526
any cardiovascular disease of a chronic nature, which disease or	527
any evidence of which was not revealed by the physical examination	528
passed by the member on entry into the patrol, the member is	529
presumed to have incurred the disease in the line of duty as a	530
member of the patrol, unless the contrary is shown by competent	531
evidence.	532

(B)(1) AExcept as provided under division (A) of section	533
5505.58 of the Revised Code, a member whose retirement on account	534
of disability incurred in the line of duty shall receive the	535
applicable pension provided for in section 5505.17 of the Revised	536
Code, except that if the member has less than twenty-five years of	537
contributing service, the member's service credit shall be deemed	538
to be twenty-five years for the purpose of this provision. In no	539
case shall the member's disability pension be less than sixty-one	540
and one-quarter per cent or exceed the lesser of seventy-nine and	541
one-quarter per cent of the member's final average salary or the	542
limit established by section 415 of the "Internal Revenue Code of	543
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	544

(2) AExcept as provided under division (B) of section	545
5505.58 of the Revised Code, a member whose retirement on account	546
of disability incurred not in the line of duty shall receive the	547
applicable pension provided for in section 5505.17 of the Revised	548
Code, except that if the member has less than twenty years of	549
contributing service, the member's service credit shall be deemed	550
to be twenty years for the purpose of this provision. In no case	551
shall the member's disability pension exceed the lesser of	552
seventy-nine and one-quarter per cent of the member's final	553
average salary or the limit established by section 415 of the	554
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	555
as amended.	556

(C) The state highway patrol retirement board shall adopt	557
rules requiring a disability pension recipient, as a condition of	558
continuing to receive a disability pension, to agree in writing to	559
obtain any medical or psychological treatment recommended by the	560
board's health-care professional and submit medical or	561
psychological reports regarding the treatment. If the board	562
determines that a disability pension recipient is not obtaining	563
the medical or psychological treatment or the board does not	564
receive a required medical or psychological report, the disability	565
pension shall be suspended until the treatment is obtained, the	566
report is received by the board, or the board's health-care	567
professional certifies that the treatment is no longer helpful or	568
advisable. Should the recipient's failure to obtain treatment or	569
submit a medical or psychological report continue for one year,	570
the recipient's right to the disability benefit shall be	571
terminated as of the effective date of the original suspension.	572

(D) A member placed on a disability pension who has not	573
attained the age of fifty-fivesixty years shall be subject to an	574
annual medical or psychological re-examination by health-care	575
professionals appointed by the board, except that the board may	576
waive the re-examination if the board's health-care professionals	577
certify that the member's disability is ongoing. If any member	578
placed on a disability pension refuses to submit to a medical or	579
psychological re-examination, the member's disability pension	580
shall be suspended until the member withdraws the refusal. If the	581
refusal continues for one year, all the member's rights under and	582
to the disability pension shall be terminated as of the effective	583
date of the original suspension.	584

(E) Each recipient of a disability pension who has not	585
attained the age of fifty-fivesixty years shall file with the	586
board an annual statement of earnings, current medical or	587
psychological information on the recipient's condition, and any	588
other information required in rules adopted by the board. The	589
board may waive the requirement that a disability benefit	590
recipient file an annual statement of earnings or current medical	591
or psychological information if the board's health-care	592
professional certifies that the recipient's disability is ongoing.	593

The board shall annually examine the information submitted by	594
the recipient. If a recipient refuses to file the statement or	595
information, the disability pension shall be suspended until the	596
statement and information are filed. If the refusal continues for	597
one year, the right to the pension shall be terminated as of the	598
effective date of the original suspension.	599

(F)(1) Except as provided in division (F)(2) of this section,	600
a retirant who has been on disability pension, and who has been	601
physically or psychologically examined and found no longer	602
incapable of performing the retirant's duties, shall be restored	603
to the rank the retirant held at the time the retirant was	604
pensioned and all previous rights shall be restored, including the	605
retirant's civil service status, and the disability pension shall	606
terminate. Upon return to employment in the patrol, the retirant	607
shall again become a contributing member of the retirement system,	608
the total service at the time of the retirant's retirement shall	609
be restored to the retirant's credit, and the retirant shall be	610
given service credit for the period the retirant was in receipt of	611
a disability pension. The provisions of division (F)(1) of this	612
section shall be retroactive to September 5, 1941.	613

(2) The state highway patrol is not required to take action	614
under division (F)(1) of this section if the retirant was	615
dismissed or resigned in lieu of dismissal for dishonesty,	616
misfeasance, malfeasance, or conviction of a felony.	617

(G) The board may adopt rules to carry out this section,	618
including rules that specify the types of health-care	619
professionals the board may appoint for the purpose of this	620
section.	621

Sec. 5505.50.  The state highway patrol retirement board	622
shall establish and administer a deferred retirement option plan.	623
In establishing and administering the plan, the board shall comply	624
with sections 5505.51 to 5505.59 of the Revised Code and may do	625
all things necessary to meet the requirements of section 401(a) of	626
the "Internal Revenue Code of 1986," (26 U.S.C. 401(a)) as	627
amended, applicable to governmental plans.	628

The board shall adopt rules to implement this section and	629
sections 5505.51 to 5505.59 of the Revised Code. The rules shall	630
specify the date of initial implementation of the plan established	631
under this section. The rules may also specify a period during	632
which an election made under section 5505.51 of the Revised Code	633
may be rescinded.	634

Sec. 5505.51. A state highway patrol retirement system member	635
who meets the following requirements may, at any time prior to	636
applying for a pension under section 5505.16 of the Revised Code,	637
elect to participate in the deferred retirement option plan	638
established under section 5505.50 of the Revised Code:	639

(1) The member is younger than fifty-eight years of age.

640

(2) The member is eligible to apply for a pension under	641
section 5505.16 of the Revised Code, unless the pension is a	642
reduced pension as described in division (B) of that section.	643

The member shall make the election by filing with the	644
retirement system an election form provided by the system. The	645
election is effective on the day the member files the election	646
form.	647

At the time of making the election to participate in the	648
deferred retirement option plan, the member also shall make an	649
election under section 5505.162 of the Revised Code. Except as	650
provided in that section, the election under section 5505.162 of	651
the Revised Code is irrevocable from the date it is received by	652
the retirement system.	653

A member electing to participate in the deferred retirement	654
option plan must agree to terminate active service in the state	655
highway patrol and begin receiving the member's pension not later	656
than the earlier of the member's sixtieth birthday or the date	657
that is eight years after the effective date of the election to	658
participate in the plan. If the member refuses or neglects to	659
terminate active service in accordance with the agreement, the	660
state highway patrol retirement board shall deem the member's	661
service terminated.	662

A member electing to participate in the deferred retirement	663
option plan is a retirant for the purposes of rules adopted by the	664
state highway patrol retirement board.	665

Sec. 5505.52. (A) A member who makes an election under	666
section 5505.51 of the Revised Code shall continue in the active	667
service of the state highway patrol but shall not earn service	668
credit under this chapter for employment after the election's	669
effective date. While the member is in the active service of the	670
state highway patrol, the member shall contribute, and the state	671
shall contribute and report, to the state highway patrol	672
retirement system in accordance with section 5505.15 of the	673
Revised Code.	674

On and after the effective date of the member's election to	675
participate in the deferred retirement option plan, the member is	676
ineligible to purchase service credit under this chapter.	677

Neither the member nor the member's spouse and dependents are	678
eligible for any benefit under section 5505.28 of the Revised Code	679
while the member is participating in the deferred retirement	680
option plan.	681

(B) A member participating in the deferred retirement option	682
plan is eligible to vote in elections for the retirant members of	683
the state highway patrol retirement system board, but not eligible	684
to vote in elections for the employee members of the board.	685

Sec. 5505.53.  For each member who elects to participate in	686
the deferred retirement option plan, the state highway patrol	687
retirement system shall determine the member's pension amount	688
under section 5505.17 of the Revised Code. In determining the	689
pension amount, the retirement system shall use the member's total	690
service credit and final average salary as of the last day of the	691
employer's payroll period immediately prior to the effective date	692
of the member's election to participate in the plan. The pension	693
amount shall be calculated using the election made by the member	694
under section 5505.162 of the Revised Code.	695

Sec. 5505.54.  (A) During the period beginning on the	696
effective date of an election to participate in the deferred	697
retirement option plan and ending on the date participation	698
ceases, a member's monthly pension amount determined under section	699
5505.53 of the Revised Code shall accrue to the member's benefit.	700
To this amount shall be added any benefit increases the member	701
would be eligible for under section 5505.174 of the Revised Code	702
had the member, on the effective date of the member's election,	703
retired under section 5505.16 of the Revised Code.	704

(B)(1) The amounts contributed under section 5505.15 of the	705
Revised Code by a member participating in the deferred retirement	706
option plan shall accrue to the member's benefit.	707

(2) The state highway patrol retirement system shall credit	708
to the employer's accumulation fund the amounts contributed by the	709
state under section 5505.15 of the Revised Code on behalf of a	710
member participating in the deferred retirement option plan.	711

(C) During the period beginning on the election's effective	712
date and ending on the date the member ceases participation in the	713
plan, the amounts described in divisions (A) and (B)(1) of this	714
section shall earn interest at an annual rate established by the	715
state highway patrol retirement board and compounded annually	716
using a method established by rule adopted under section 5505.50	717
of the Revised Code.	718

Sec. 5505.55.  A member's participation in the deferred	719
retirement option plan ceases on the occurrence of the earliest of	720
the following:	721

(A) Termination of the member's active service in the state	722
highway patrol;	723

(B) The last day of the eight-year period that begins on the	724
effective date of the member's election to participate in the	725
plan;	726

(C) The member's sixtieth birthday;

727

(D) Acceptance by the member of a disability benefit awarded	728
by the state highway patrol retirement board under section 5505.18	729
of the Revised Code;	730

(E) The member's death.

731

Sec. 5505.56. (A) A member participating in the deferred	732
retirement option plan who terminates active service in the state	733
highway patrol shall notify the state highway patrol retirement	734
system of the date of termination on a form prescribed by the	735
retirement system. The member is not eligible to make another	736
election under section 5505.51 of the Revised Code.	737

(B)(1) With regard to a member who was younger than age	738
fifty-two on the effective date of the election to participate in	739
the plan, if the date of termination of the member's active	740
service occurs on or after the first day of the fourth year after	741
the effective date of the election, the entire amount that has	742
accrued to the member's benefit under the deferred retirement	743
option plan shall be distributed to the member pursuant to the	744
member's selection under section 5505.57 of the Revised Code.	745

If the date of termination occurs earlier than four years	746
after the effective date of the election to participate, the	747
member shall forfeit the interest credited under division (C) of	748
section 5505.54 of the Revised Code.	749

(2) With regard to a member who, on the effective date of the	750
election to participate in the plan, was age fifty-two or older,	751
if the date of termination of the member's active service occurs	752
on or after the first day of the third year after the effective	753
date of the election, the entire amount that has accrued to the	754
member's benefit under the deferred retirement option plan shall	755
be distributed to the member pursuant to the member's selection	756
under section 5505.57 of the Revised Code.	757

If the termination of active service occurs earlier than	758
three years after the effective date of the election to	759
participate, the member shall forfeit the interest credited under	760
division (C) of section 5505.54 of the Revised Code.	761

(C) Once a member ceases participation in the deferred	762
retirement option plan as described in division (A), (B), or (C)	763
of section 5505.55 of the Revised Code, the member's monthly	764
pension amount determined under section 5505.53 of the Revised	765
Code shall be paid to the member, commencing the day following the	766
member's last day of active service in the state highway patrol.	767

Sec. 5505.57. (A) On ceasing participation in the deferred	768
retirement option plan as described in division (A), (B), or (C)	769
of section 5505.55 of the Revised Code, a member shall select as	770
the method of distribution of the amount accrued to the member	771
under the plan one of the distribution options provided under	772
section 401(a) of the "Internal Revenue Code of 1986," (26 U.S.C.	773
401(a)) as amended, applicable to governmental plans.	774

(B) The retirement system shall distribute the amount accrued	775
to a member's benefit under the deferred retirement option plan as	776
follows:	777

(1) For a member who was younger than fifty-two years of age	778
on the date of the election to participate in the plan,	779
distribution shall not commence until the first day of the fourth	780
year after the effective date of the member's election to	781
participate in the plan.	782

(2) For a member who was fifty-two years of age or older on	783
the date of the election to participate in the plan, distribution	784
shall not commence until the first day of the third year after the	785
effective date of the member's election to participate in the	786
plan.	787

Sec. 5505.58. (A) A member participating in the deferred	788
retirement option plan who qualifies for disability retirement	789
under division (B)(1) of section 5505.18 of the Revised Code shall	790
elect to receive one of the following:	791

(1) The applicable pension provided for in section 5505.53 of	792
the Revised Code, plus any amounts that have accrued under section	793
5505.54 of the Revised Code to the member's benefit under the	794
deferred retirement option plan.	795

(2) The disability pension provided for by division (B)(1) of	796
section 5505.18 of the Revised Code. Acceptance of a disability	797
pension requires forfeiture of all amounts accrued under section	798
5505.54 of the Revised Code to the member's benefit under the	799
deferred retirement option plan, and those amounts shall be	800
treated as if the member had continued in the active service of	801
the state highway patrol and not participated in the plan. The	802
member shall be granted service credit for the period the member	803
was participating in the plan.	804

(B) A member participating in the deferred retirement option	805
plan who qualifies for disability retirement under division (B)(2)	806
of section 5505.18 of the Revised Code shall receive the	807
applicable pension provided for in section 5505.53 of the Revised	808
Code, plus any amounts that have accrued under section 5505.54 of	809
the Revised Code to the member's benefit under the deferred	810
retirement option plan.	811

Sec. 5505.59. If a member dies while participating in the	812
deferred retirement option plan, all of the following apply:	813

(A) The amounts accrued to the member's benefit shall be paid	814
to the member's surviving spouse or, if there is no surviving	815
spouse, the beneficiary designated by the member on a form	816
provided by the state highway patrol retirement system. If there	817
is no surviving spouse or designated beneficiary, the amounts	818
accrued to the member's benefit shall be paid to the member's	819
estate.	820

Any payment made under this division shall be made in the	821
form of a single lump sum payment.	822

(B) The surviving spouse and, if eligible, each surviving	823
child, shall receive a pension as described in division	824
(A)(3)(b)(iii) or (4) of section 5505.17 of the Revised Code,	825
utilizing the pension amount calculated under section 5505.53 of	826
the Revised Code.	827

(C) If the member has no surviving spouse or surviving	828
children, but has a parent or parents dependent on the member for	829
support, the parent or parents shall receive a pension determined	830
under division (A)(7) of section 5505.17 of the Revised Code.	831

(D) The lump sum payment described in section 5505.30 of the	832
Revised Code shall be paid to the member's surviving spouse or, if	833
there is no surviving spouse, to the member's estate.	834

Section 2. That existing sections 742.63, 5505.12, and	835
5505.18 of the Revised Code are hereby repealed.	836