As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 270

Representative Schneider 

Cosponsors: Representatives Adams, Latta, Fessler, McGregor, J., Setzer, Webster, Collier 

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A BILL

To amend sections 145.01, 145.191, 145.38, 145.384,

1

145.473, 145.58, 742.26, 3307.35, and 3309.341 of

2

the Revised Code to provide that a member of the

3

Public Employees Retirement System, Ohio Police

4

and Fire Pension Fund, State Teachers Retirement

5

System, or School Employees Retirement System who

6

retires and then returns to public employment in

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the same position will not receive a pension while

8

earning a salary for that employment.

9

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

Section 1. That sections 145.01, 145.191, 145.38, 145.384,	10
145.473, 145.58, 742.26, 3307.35, and 3309.341 of the Revised Code	11
be amended to read as follows:	12

Sec. 145.01.  As used in this chapter:

13

(A) "Public employee" means:

14

(1) Any person holding an office, not elective, under the	15
state or any county, township, municipal corporation, park	16
district, conservancy district, sanitary district, health	17
district, metropolitan housing authority, state retirement board,	18
Ohio historical society, public library, county law library, union	19
cemetery, joint hospital, institutional commissary, state	20
university, or board, bureau, commission, council, committee,	21
authority, or administrative body as the same are, or have been,	22
created by action of the general assembly or by the legislative	23
authority of any of the units of local government named in	24
division (A)(1) of this section, or employed and paid in whole or	25
in part by the state or any of the authorities named in division	26
(A)(1) of this section in any capacity not covered by section	27
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	28

(2) A person who is a member of the public employees	29
retirement system and who continues to perform the same or similar	30
duties under the direction of a contractor who has contracted to	31
take over what before the date of the contract was a publicly	32
operated function. The governmental unit with which the contract	33
has been made shall be deemed the employer for the purposes of	34
administering this chapter.	35

(3) Any person who is an employee of a public employer,	36
notwithstanding that the person's compensation for that employment	37
is derived from funds of a person or entity other than the	38
employer. Credit for such service shall be included as total	39
service credit, provided that the employee makes the payments	40
required by this chapter, and the employer makes the payments	41
required by sections 145.48 and 145.51 of the Revised Code.	42

(4) A person who elects in accordance with section 145.015 of	43
the Revised Code to remain a contributing member of the public	44
employees retirement system.	45

In all cases of doubt, the public employees retirement board	46
shall determine whether any person is a public employee, and its	47
decision is final.	48

(B) "Member" means any public employee, other than a public	49
employee excluded or exempted from membership in the retirement	50
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	51
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	52
retirant who becomes a member under division (C) of section 145.38	53
of the Revised Code. "Member" also includes a disability benefit	54
recipient.	55

(C) "Head of the department" means the elective or appointive	56
head of the several executive, judicial, and administrative	57
departments, institutions, boards, and commissions of the state	58
and local government as the same are created and defined by the	59
laws of this state or, in case of a charter government, by that	60
charter.	61

(D) "Employer" or "public employer" means the state or any	62
county, township, municipal corporation, park district,	63
conservancy district, sanitary district, health district,	64
metropolitan housing authority, state retirement board, Ohio	65
historical society, public library, county law library, union	66
cemetery, joint hospital, institutional commissary, state medical	67
college, state university, or board, bureau, commission, council,	68
committee, authority, or administrative body as the same are, or	69
have been, created by action of the general assembly or by the	70
legislative authority of any of the units of local government	71
named in this division not covered by section 742.01, 3307.01,	72
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	73
means the employer of any public employee.	74

(E) "Prior service" means all service as a public employee	75
rendered before January 1, 1935, and all service as an employee of	76
any employer who comes within the state teachers retirement system	77
or of the school employees retirement system or of any other	78
retirement system established under the laws of this state	79
rendered prior to January 1, 1935, provided that if the employee	80
claiming the service was employed in any capacity covered by that	81
other system after that other system was established, credit for	82
the service may be allowed by the public employees retirement	83
system only when the employee has made payment, to be computed on	84
the salary earned from the date of appointment to the date	85
membership was established in the public employees retirement	86
system, at the rate in effect at the time of payment, and the	87
employer has made payment of the corresponding full liability as	88
provided by section 145.44 of the Revised Code. "Prior service"	89
also means all service credited for active duty with the armed	90
forces of the United States as provided in section 145.30 of the	91
Revised Code.	92

If an employee who has been granted prior service credit by	93
the public employees retirement system for service rendered prior	94
to January 1, 1935, as an employee of a board of education	95
establishes, before retirement, one year or more of contributing	96
service in the state teachers retirement system or school	97
employees retirement system, then the prior service ceases to be	98
the liability of this system.	99

If the board determines that a position of any member in any	100
calendar year prior to January 1, 1935, was a part-time position,	101
the board shall determine what fractional part of a year's credit	102
shall be allowed by the following formula:	103

(1) When the member has been either elected or appointed to	104
an office the term of which was two or more years and for which an	105
annual salary is established, the fractional part of the year's	106
credit shall be computed as follows:	107

First, when the member's annual salary is one thousand	108
dollars or less, the service credit for each such calendar year	109
shall be forty per cent of a year.	110

Second, for each full one hundred dollars of annual salary	111
above one thousand dollars, the member's service credit for each	112
such calendar year shall be increased by two and one-half per	113
cent.	114

(2) When the member is paid on a per diem basis, the service	115
credit for any single year of the service shall be determined by	116
using the number of days of service for which the compensation was	117
received in any such year as a numerator and using two hundred	118
fifty days as a denominator.	119

(3) When the member is paid on an hourly basis, the service	120
credit for any single year of the service shall be determined by	121
using the number of hours of service for which the compensation	122
was received in any such year as a numerator and using two	123
thousand hours as a denominator.	124

(F) "Contributor" means any person who has an account in the	125
employees' savings fund created by section 145.23 of the Revised	126
Code. When used in the sections listed in division (B) of section	127
145.82 of the Revised Code, "contributor" includes any person	128
participating in a PERS defined contribution plan.	129

(G) "Beneficiary" or "beneficiaries" means the estate or a	130
person or persons who, as the result of the death of a member,	131
contributor, or retirant, qualify for or are receiving some right	132
or benefit under this chapter.	133

(H)(1) "Total service credit," except as provided in section	134
145.37 of the Revised Code, means all service credited to a member	135
of the retirement system since last becoming a member, including	136
restored service credit as provided by section 145.31 of the	137
Revised Code; credit purchased under sections 145.293 and 145.299	138
of the Revised Code; all the member's prior service credit; all	139
the member's military service credit computed as provided in this	140
chapter; all service credit established pursuant to section	141
145.297 of the Revised Code; and any other service credited under	142
this chapter. In addition, "total service credit" includes any	143
period, not in excess of three years, during which a member was	144
out of service and receiving benefits under Chapters 4121. and	145
4123. of the Revised Code. For the exclusive purpose of satisfying	146
the service credit requirement and of determining eligibility for	147
benefits under sections 145.32, 145.33, 145.331, 145.35, 145.36,	148
and 145.361 of the Revised Code, "five or more years of total	149
service credit" means sixty or more calendar months of	150
contributing service in this system.	151

(2) "One and one-half years of contributing service credit,"	152
as used in division (B) of section 145.45 of the Revised Code,	153
also means eighteen or more calendar months of employment by a	154
municipal corporation that formerly operated its own retirement	155
plan for its employees or a part of its employees, provided that	156
all employees of that municipal retirement plan who have eighteen	157
or more months of such employment, upon establishing membership in	158
the public employees retirement system, shall make a payment of	159
the contributions they would have paid had they been members of	160
this system for the eighteen months of employment preceding the	161
date membership was established. When that payment has been made	162
by all such employee members, a corresponding payment shall be	163
paid into the employers' accumulation fund by that municipal	164
corporation as the employer of the employees.	165

(3) Where a member also is a member of the state teachers	166
retirement system or the school employees retirement system, or	167
both, except in cases of retirement on a combined basis pursuant	168
to section 145.37 of the Revised Code or as provided in section	169
145.383 of the Revised Code, service credit for any period shall	170
be credited on the basis of the ratio that contributions to the	171
public employees retirement system bear to total contributions in	172
all state retirement systems.	173

(4) Not more than one year of credit may be given for any	174
period of twelve months.	175

(5) "Ohio service credit" means credit for service that was	176
rendered to the state or any of its political subdivisions or any	177
employer.	178

(I) "Regular interest" means interest at any rates for the	179
respective funds and accounts as the public employees retirement	180
board may determine from time to time.	181

(J) "Accumulated contributions" means the sum of all amounts	182
credited to a contributor's individual account in the employees'	183
savings fund together with any interest credited to the	184
contributor's account under section 145.471 or 145.472 of the	185
Revised Code.	186

(K)(1) "Final average salary" means the quotient obtained by	187
dividing by three the sum of the three full calendar years of	188
contributing service in which the member's earnable salary was	189
highest, except that if the member has a partial year of	190
contributing service in the year the member's employment	191
terminates and the member's earnable salary for the partial year	192
is higher than for any comparable period in the three years, the	193
member's earnable salary for the partial year shall be substituted	194
for the member's earnable salary for the comparable period during	195
the three years in which the member's earnable salary was lowest.	196

(2) If a member has less than three years of contributing	197
service, the member's final average salary shall be the member's	198
total earnable salary divided by the total number of years,	199
including any fraction of a year, of the member's contributing	200
service.	201

(3) For the purpose of calculating benefits payable to a	202
member qualifying for service credit under division (Z) of this	203
section, "final average salary" means the total earnable salary on	204
which contributions were made divided by the total number of years	205
during which contributions were made, including any fraction of a	206
year. If contributions were made for less than twelve months,	207
"final average salary" means the member's total earnable salary.	208

(L) "Annuity" means payments for life derived from	209
contributions made by a contributor and paid from the annuity and	210
pension reserve fund as provided in this chapter. All annuities	211
shall be paid in twelve equal monthly installments.	212

(M) "Annuity reserve" means the present value, computed upon	213
the basis of the mortality and other tables adopted by the board,	214
of all payments to be made on account of any annuity, or benefit	215
in lieu of any annuity, granted to a retirant as provided in this	216
chapter.	217

(N)(1) "Disability retirement" means retirement as provided	218
in section 145.36 of the Revised Code.	219

(2) "Disability allowance" means an allowance paid on account	220
of disability under section 145.361 of the Revised Code.	221

(3) "Disability benefit" means a benefit paid as disability	222
retirement under section 145.36 of the Revised Code, as a	223
disability allowance under section 145.361 of the Revised Code, or	224
as a disability benefit under section 145.37 of the Revised Code.	225

(4) "Disability benefit recipient" means a member who is	226
receiving a disability benefit.	227

(O) "Age and service retirement" means retirement as provided	228
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of	229
the Revised Code.	230

(P) "Pensions" means annual payments for life derived from	231
contributions made by the employer that at the time of retirement	232
are credited into the annuity and pension reserve fund from the	233
employers' accumulation fund and paid from the annuity and pension	234
reserve fund as provided in this chapter. All pensions shall be	235
paid in twelve equal monthly installments.	236

(Q) "Retirement allowance" means the pension plus that	237
portion of the benefit derived from contributions made by the	238
member.	239

(R)(1) Except as otherwise provided in division (R) of this	240
section, "earnable salary" means all salary, wages, and other	241
earnings paid to a contributor by reason of employment in a	242
position covered by the retirement system. The salary, wages, and	243
other earnings shall be determined prior to determination of the	244
amount required to be contributed to the employees' savings fund	245
under section 145.47 of the Revised Code and without regard to	246
whether any of the salary, wages, or other earnings are treated as	247
deferred income for federal income tax purposes. "Earnable salary"	248
includes the following:	249

(a) Payments made by the employer in lieu of salary, wages,	250
or other earnings for sick leave, personal leave, or vacation used	251
by the contributor;	252

(b) Payments made by the employer for the conversion of sick	253
leave, personal leave, and vacation leave accrued, but not used if	254
the payment is made during the year in which the leave is accrued,	255
except that payments made pursuant to section 124.383 or 124.386	256
of the Revised Code are not earnable salary;	257

(c) Allowances paid by the employer for full maintenance,	258
consisting of housing, laundry, and meals, as certified to the	259
retirement board by the employer or the head of the department	260
that employs the contributor;	261

(d) Fees and commissions paid under section 507.09 of the	262
Revised Code;	263

(e) Payments that are made under a disability leave program	264
sponsored by the employer and for which the employer is required	265
by section 145.296 of the Revised Code to make periodic employer	266
and employee contributions;	267

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	268
this section.	269

(2) "Earnable salary" does not include any of the following:

270

(a) Fees and commissions, other than those paid under section	271
507.09 of the Revised Code, paid as sole compensation for personal	272
services and fees and commissions for special services over and	273
above services for which the contributor receives a salary;	274

(b) Amounts paid by the employer to provide life insurance,	275
sickness, accident, endowment, health, medical, hospital, dental,	276
or surgical coverage, or other insurance for the contributor or	277
the contributor's family, or amounts paid by the employer to the	278
contributor in lieu of providing the insurance;	279

(c) Incidental benefits, including lodging, food, laundry,	280
parking, or services furnished by the employer, or use of the	281
employer's property or equipment, or amounts paid by the employer	282
to the contributor in lieu of providing the incidental benefits;	283

(d) Reimbursement for job-related expenses authorized by the	284
employer, including moving and travel expenses and expenses	285
related to professional development;	286

(e) Payments for accrued but unused sick leave, personal	287
leave, or vacation that are made at any time other than in the	288
year in which the sick leave, personal leave, or vacation was	289
accrued;	290

(f) Payments made to or on behalf of a contributor that are	291
in excess of the annual compensation that may be taken into	292
account by the retirement system under division (a)(17) of section	293
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	294
U.S.C.A. 401(a)(17), as amended;	295

(g) Payments made under division (B), (C), or (E) of section	296
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	297
No. 3 of the 119th general assembly, Section 3 of Amended	298
Substitute Senate Bill No. 164 of the 124th general assembly, or	299
Amended Substitute House Bill No. 405 of the 124th general	300
assembly;	301

(h) Anything of value received by the contributor that is	302
based on or attributable to retirement or an agreement to retire,	303
except that payments made on or before January 1, 1989, that are	304
based on or attributable to an agreement to retire shall be	305
included in earnable salary if both of the following apply:	306

(i) The payments are made in accordance with contract	307
provisions that were in effect prior to January 1, 1986;	308

(ii) The employer pays the retirement system an amount	309
specified by the retirement board equal to the additional	310
liability resulting from the payments.	311

(3) The retirement board shall determine by rule whether any	312
compensation not enumerated in division (R) of this section is	313
earnable salary, and its decision shall be final.	314

(S) "Pension reserve" means the present value, computed upon	315
the basis of the mortality and other tables adopted by the board,	316
of all payments to be made on account of any retirement allowance	317
or benefit in lieu of any retirement allowance, granted to a	318
member or beneficiary under this chapter.	319

(T)(1) "Contributing service" means all service credited to a	320
member of the system since January 1, 1935, for which	321
contributions are made as required by sections 145.47, 145.48, and	322
145.483 of the Revised Code. In any year subsequent to 1934,	323
credit for any service shall be allowed by the following formula:	324

(a) For each month for which the member's earnable salary is	325
two hundred fifty dollars or more, allow one month's credit.	326

(b) For each month for which the member's earnable salary is	327
less than two hundred fifty dollars, allow a fraction of a month's	328
credit. The numerator of this fraction shall be the earnable	329
salary during the month, and the denominator shall be two hundred	330
fifty dollars, except that if the member's annual earnable salary	331
is less than six hundred dollars, the member's credit shall not be	332
reduced below twenty per cent of a year for a calendar year of	333
employment during which the member worked each month. Division	334
(T)(1)(b) of this section shall not reduce any credit earned	335
before January 1, 1985.	336

(2) Notwithstanding division (T)(1) of this section, an	337
elected official who prior to January 1, 1980, was granted a full	338
year of credit for each year of service as an elected official	339
shall be considered to have earned a full year of credit for each	340
year of service regardless of whether the service was full-time or	341
part-time. The public employees retirement board has no authority	342
to reduce the credit.	343

(U) "State retirement board" means the public employees	344
retirement board, the school employees retirement board, or the	345
state teachers retirement board.	346

(V) "Retirant" means any former member who retires and is	347
receiving a monthly allowance as provided in sections 145.32,	348
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	349

(W) "Employer contribution" means the amount paid by an	350
employer as determined under section 145.48 of the Revised Code.	351

(X) "Public service terminates" means the last day for which	352
a public employee is compensated for services performed for an	353
employer or the date of the employee's death, whichever occurs	354
first.	355

(Y) When a member has been elected or appointed to an office,	356
the term of which is two or more years, for which an annual salary	357
is established, and in the event that the salary of the office is	358
increased and the member is denied the additional salary by reason	359
of any constitutional provision prohibiting an increase in salary	360
during a term of office, the member may elect to have the amount	361
of the member's contributions calculated upon the basis of the	362
increased salary for the office. At the member's request, the	363
board shall compute the total additional amount the member would	364
have contributed, or the amount by which each of the member's	365
contributions would have increased, had the member received the	366
increased salary for the office the member holds. If the member	367
elects to have the amount by which the member's contribution would	368
have increased withheld from the member's salary, the member shall	369
notify the employer, and the employer shall make the withholding	370
and transmit it to the retirement system. A member who has not	371
elected to have that amount withheld may elect at any time to make	372
a payment to the retirement system equal to the additional amount	373
the member's contribution would have increased, plus interest on	374
that contribution, compounded annually at a rate established by	375
the board and computed from the date on which the last	376
contribution would have been withheld from the member's salary to	377
the date of payment. A member may make a payment for part of the	378
period for which the increased contribution was not withheld, in	379
which case the interest shall be computed from the date the last	380
contribution would have been withheld for the period for which the	381
payment is made. Upon the payment of the increased contributions	382
as provided in this division, the increased annual salary as	383
provided by law for the office for the period for which the member	384
paid increased contributions thereon shall be used in determining	385
the member's earnable salary for the purpose of computing the	386
member's final average salary.	387

(Z) "Five years of service credit," for the exclusive purpose	388
of satisfying the service credit requirements and of determining	389
eligibility for benefits under section 145.33 of the Revised Code,	390
means employment covered under this chapter or under a former	391
retirement plan operated, recognized, or endorsed by the employer	392
prior to coverage under this chapter or under a combination of the	393
coverage.	394

(AA) "Deputy sheriff" means any person who is commissioned	395
and employed as a full-time peace officer by the sheriff of any	396
county, and has been so employed since on or before December 31,	397
1965, and whose primary duties are to preserve the peace, to	398
protect life and property, and to enforce the laws of this state;	399
any person who is or has been commissioned and employed as a peace	400
officer by the sheriff of any county since January 1, 1966, and	401
who has received a certificate attesting to the person's	402
satisfactory completion of the peace officer training school as	403
required by section 109.77 of the Revised Code and whose primary	404
duties are to preserve the peace, protect life and property, and	405
enforce the laws of this state; or any person deputized by the	406
sheriff of any county and employed pursuant to section 2301.12 of	407
the Revised Code as a criminal bailiff or court constable who has	408
received a certificate attesting to the person's satisfactory	409
completion of the peace officer training school as required by	410
section 109.77 of the Revised Code and whose primary duties are to	411
preserve the peace, protect life and property, and enforce the	412
laws of this state.	413

(BB) "Township constable or police officer in a township	414
police department or district" means any person who is	415
commissioned and employed as a full-time peace officer pursuant to	416
Chapter 505. or 509. of the Revised Code, who has received a	417
certificate attesting to the person's satisfactory completion of	418
the peace officer training school as required by section 109.77 of	419
the Revised Code, and whose primary duties are to preserve the	420
peace, protect life and property, and enforce the laws of this	421
state.	422

(CC) "Drug agent" means any person who is either of the	423
following:	424

(1) Employed full-timefull time as a narcotics agent by a	425
county narcotics agency created pursuant to section 307.15 of the	426
Revised Code and has received a certificate attesting to the	427
satisfactory completion of the peace officer training school as	428
required by section 109.77 of the Revised Code;	429

(2) Employed full-timefull time as an undercover drug agent	430
as defined in section 109.79 of the Revised Code and is in	431
compliance with section 109.77 of the Revised Code.	432

(DD) "Department of public safety enforcement agent" means a	433
full-time employee of the department of public safety who is	434
designated under section 5502.14 of the Revised Code as an	435
enforcement agent and who is in compliance with section 109.77 of	436
the Revised Code.	437

(EE) "Natural resources law enforcement staff officer" means	438
a full-time employee of the department of natural resources who is	439
designated a natural resources law enforcement staff officer under	440
section 1501.013 of the Revised Code and is in compliance with	441
section 109.77 of the Revised Code.	442

(FF) "Park officer" means a full-time employee of the	443
department of natural resources who is designated a park officer	444
under section 1541.10 of the Revised Code and is in compliance	445
with section 109.77 of the Revised Code.	446

(GG) "Forest officer" means a full-time employee of the	447
department of natural resources who is designated a forest officer	448
under section 1503.29 of the Revised Code and is in compliance	449
with section 109.77 of the Revised Code.	450

(HH) "Preserve officer" means a full-time employee of the	451
department of natural resources who is designated a preserve	452
officer under section 1517.10 of the Revised Code and is in	453
compliance with section 109.77 of the Revised Code.	454

(II) "Wildlife officer" means a full-time employee of the	455
department of natural resources who is designated a wildlife	456
officer under section 1531.13 of the Revised Code and is in	457
compliance with section 109.77 of the Revised Code.	458

(JJ) "State watercraft officer" means a full-time employee of	459
the department of natural resources who is designated a state	460
watercraft officer under section 1547.521 of the Revised Code and	461
is in compliance with section 109.77 of the Revised Code.	462

(KK) "Park district police officer" means a full-time	463
employee of a park district who is designated pursuant to section	464
511.232 or 1545.13 of the Revised Code and is in compliance with	465
section 109.77 of the Revised Code.	466

(LL) "Conservancy district officer" means a full-time	467
employee of a conservancy district who is designated pursuant to	468
section 6101.75 of the Revised Code and is in compliance with	469
section 109.77 of the Revised Code.	470

(MM) "Municipal police officer" means a member of the	471
organized police department of a municipal corporation who is	472
employed full-timefull time, is in compliance with section 109.77	473
of the Revised Code, and is not a member of the Ohio police and	474
fire pension fund.	475

(NN) "Veterans' home police officer" means any person who is	476
employed at a veterans' home as a police officer pursuant to	477
section 5907.02 of the Revised Code and is in compliance with	478
section 109.77 of the Revised Code.	479

(OO) "Special police officer for a mental health institution"	480
means any person who is designated as such pursuant to section	481
5119.14 of the Revised Code and is in compliance with section	482
109.77 of the Revised Code.	483

(PP) "Special police officer for an institution for the	484
mentally retarded and developmentally disabled" means any person	485
who is designated as such pursuant to section 5123.13 of the	486
Revised Code and is in compliance with section 109.77 of the	487
Revised Code.	488

(QQ) "State university law enforcement officer" means any	489
person who is employed full-timefull time as a state university	490
law enforcement officer pursuant to section 3345.04 of the Revised	491
Code and who is in compliance with section 109.77 of the Revised	492
Code.	493

(RR) "House sergeant at arms" means any person appointed by	494
the speaker of the house of representatives under division (B)(1)	495
of section 101.311 of the Revised Code who has arrest authority	496
under division (E)(1) of that section.	497

(SS) "Assistant house sergeant at arms" means any person	498
appointed by the house sergeant at arms under division (C)(1) of	499
section 101.311 of the Revised Code.	500

(TT) "Regional transit authority police officer" means a	501
person who is employed full time as a regional transit authority	502
police officer under division (Y) of section 306.35 of the Revised	503
Code and is in compliance with section 109.77 of the Revised Code.	504

(UU) "State highway patrol police officer" means a special	505
police officer employed full time and designated by the	506
superintendent of the state highway patrol pursuant to section	507
5503.09 of the Revised Code or a person serving full time as a	508
special police officer pursuant to that section on a permanent	509
basis on October 21, 1997, who is in compliance with section	510
109.77 of the Revised Code.	511

(VV) "Municipal public safety director" means a person who	512
serves full-timefull time as the public safety director of a	513
municipal corporation with the duty of directing the activities of	514
the municipal corporation's police department and fire department.	515

(WW) Notwithstanding section 2901.01 of the Revised Code,	516
"PERS law enforcement officer" means a sheriff, deputy sheriff,	517
township constable or police officer in a township police	518
department or district, drug agent, municipal public safety	519
director, department of public safety enforcement agent, natural	520
resources law enforcement staff officer, park officer, forest	521
officer, preserve officer, wildlife officer, state watercraft	522
officer, park district police officer, conservancy district	523
officer, veterans' home police officer, special police officer for	524
a mental health institution, special police officer for an	525
institution for the mentally retarded and developmentally	526
disabled, state university law enforcement officer, municipal	527
police officer, house sergeant at arms, assistant house sergeant	528
at arms, regional transit authority police officer, or state	529
highway patrol police officer.	530

(XX) "Hamilton county municipal court bailiff" means a person	531
appointed by the clerk of courts of the Hamilton county municipal	532
court under division (A)(3) of section 1901.32 of the Revised Code	533
who is employed full time as a bailiff or deputy bailiff, who has	534
received a certificate attesting to the person's satisfactory	535
completion of the peace officer basic training described in	536
division (D)(1) of section 109.77 of the Revised Code, and whose	537
primary duties are to preserve the peace, to protect life and	538
property, and to enforce the laws of this state.	539

(YY) "Fiduciary" means a person who does any of the	540
following:	541

(1) Exercises any discretionary authority or control with	542
respect to the management of the system or with respect to the	543
management or disposition of its assets;	544

(2) Renders investment advice for a fee, direct or indirect,	545
with respect to money or property of the system;	546

(3) Has any discretionary authority or responsibility in the	547
administration of the system.	548

(ZZ) "Actuary" means an individual who satisfies all of the	549
following requirements:	550

(1) Is a member of the American academy of actuaries;

551

(2) Is an associate or fellow of the society of actuaries;

552

(3) Has a minimum of five years' experience in providing	553
actuarial services to public retirement plans.	554

(AAA) "PERS defined benefit plan" means the plan described in	555
sections 145.201 to 145.79 of the Revised Code.	556

(BBB) "PERS defined contribution plans" means the plan or	557
plans established under section 145.81 of the Revised Code.	558

Sec. 145.191.  (A) Except as provided in division (E) of this	559
section, a public employees retirement system member or	560
contributor who, as of the last day of the month immediately	561
preceding the date on which the public employees retirement board	562
first establishes a PERS defined contribution plan, has less than	563
five years of total service credit is eligible to make an election	564
under this section. A member or contributor who is employed in	565
more than one position subject to this chapter is eligible to make	566
only one election. The election applies to all positions subject	567
to this chapter.	568

Not later than one hundred eighty days after the day the	569
board first establishes a PERS defined contribution plan, an	570
eligible member or contributor may elect to participate in a PERS	571
defined contribution plan. If a form evidencing an election is not	572
received by the system not later than the last day of the	573
one-hundred-eighty-day period, a member or contributor to whom	574
this section applies is deemed to have elected to continue	575
participating in the PERS defined benefit plan.	576

(B) An election under this section shall be made in writing	577
on a form provided by the system and filed with the system.	578

(C) On receipt of an election under this section, the system	579
shall do both of the following:	580

(1) Credit to the plan elected both of the following:

581

(a) Any employer contributions attributable to the member for	582
the period beginning on the day the board first established a PERS	583
defined contribution plan;	584

(b) All accumulated contributions attributable to the member	585
or contributor.	586

(2) Cancel all service credit and eligibility for any	587
payment, benefit, or right under the PERS defined benefit plan.	588

(D) An election under this section is effective as of the	589
date the board first established a PERS defined contribution plan	590
and, except as provided in section 145.814 of the Revised Code or	591
rules governing the PERS defined benefit plan, is irrevocable on	592
receipt by the system.	593

(E) An election may not be made under this section by a	594
member or contributor who is either of the following:	595

(1) A PERS retirant who is a member under division (C) of	596
section 145.38 of the Revised Code;	597

(2) Aa PERS law enforcement officer or a Hamilton county	598
municipal court bailiff.	599

Sec. 145.38.  (A) As used in this section and sections	600
145.381 and 145.384 of the Revised Code:	601

(1) "PERS retirant" means a former member of the public	602
employees retirement system who is receiving oneeither of the	603
following:	604

(a) AgeAn age and service retirement benefitsallowance paid	605
under section 145.32, 145.33, 145.331, 145.34, or 145.46 of the	606
Revised Code;	607

(b) Age and service retirement benefitsor paid by the public	608
employees retirement system underas a consequence of section	609
145.37 of the Revised Code;	610

(c)(b) Any benefit paiddistribution under a PERS defined	611
contribution plan made by virtue of the former member's	612
retirement.	613

(2) "Other system retirant" means bothall of the following:

614

(a) A member or former member of the Ohio police and fire	615
pension fund, state teachers retirement system, school employees	616
retirement system, state highway patrol retirement system, or	617
Cincinnati retirement system who is receiving an age and service	618
or commuted age and service retirement benefitsallowance or a	619
disability benefit from a system of which the person is a member	620
or former member;	621

(b) A member or former member of the public employees	622
retirement system who is receiving an age and service retirement	623
benefitsallowance or a disability benefit underas a consequence	624
of section 145.37 of the Revised Code paid by the school employees	625
retirement system or the state teachers retirement system;	626

(c) A former member of the state teachers retirement system	627
or school employees retirement system who is receiving a	628
distribution under a plan established under section 3307.81 or	629
3309.81 of the Revised Code by virtue of the former member's	630
retirement.	631

(3) "Retirement benefit" means an age and service retirement	632
allowance or a distribution by virtue of retirement as described	633
in division (A)(1) or (2) of this section.	634

(4) Notwithstanding the definitions of "pension" and	635
"annuity" in section 145.01 of the Revised Code, in the case of a	636
PERS retirant or other system retirant who is retired under the	637
PERS defined contribution plan or a plan established under section	638
3307.81 or 3309.81 of the Revised Code:	639

(a) "Pension portion of the retirement benefit" means the	640
portion of the retirement benefit that is derived from	641
contributions made by the employer and is paid in monthly or less	642
frequent installments.	643

(b) "Annuity portion of the retirement benefit" means the	644
portion of the retirement benefit that is derived from	645
contributions made by the former member and is paid in monthly or	646
less frequent installments.	647

(B)(1) Subject to this section and section 145.381 of the	648
Revised Code, a PERS retirant or other system retirant may be	649
employed by a public employer. If so employed, the PERS retirant	650
or other system retirant shall contribute to the public employees	651
retirement system in accordance with section 145.47 of the Revised	652
Code, and the employer shall make contributions in accordance with	653
section 145.48 of the Revised Code.	654

(2) A public employer that employs a PERS retirant or other	655
system retirant, or enters into a contract for services as an	656
independent contractor with a PERS retirant, shall notify the	657
retirement board of the employment or contract not later than the	658
end of the month in which the employment or contract commences.	659
Any overpayment of benefits to a PERS retirant by the retirement	660
system resulting from delay or failure of the employer to give the	661
notice shall be repaid to the retirement system by the employer.	662

(3) On receipt of notice from a public employer that a person	663
who is an other system retirant has been employed, the retirement	664
system shall notify the retirement system of which the other	665
system retirant was a member of such employment.	666

(4)(a) A PERS retirant who has received a retirement	667
allowancebenefit for less than two months when employment subject	668
to this section commences shall forfeit the retirement allowance	669
benefit for any month the PERS retirant is employed prior to the	670
expiration of the two-month period. Service and contributions for	671
that period shall not be included in calculation of any benefits	672
payable to the PERS retirant, and those contributions shall be	673
refunded on the retirant's death or termination of the employment.	674

(b) An other system retirant who has received a retirement	675
allowancebenefit or disability benefit for less than two months	676
when employment subject to this section commences shall forfeit	677
the retirement allowancebenefit or disability benefit for any	678
month the other system retirant is employed prior to the	679
expiration of the two-month period. Service and contributions for	680
that period shall not be included in the calculation of any	681
benefits payable to the other system retirant, and those	682
contributions shall be refunded on the retirant's death or	683
termination of the employment.	684

(c) Contributions made on compensation earned after the	685
expiration of the two-month period shall be used in the	686
calculation of the benefit or payment due under section 145.384 of	687
the Revised Code.	688

(5) On receipt of notice from the Ohio police and fire	689
pension fund, school employees retirement system, or state	690
teachers retirement system of the re-employment of a PERS	691
retirant, the public employees retirement system shall not pay, or	692
if paid, shall recover, the amount to be forfeited by the PERS	693
retirant in accordance with section 742.26, 3307.35, or 3309.341	694
of the Revised Code.	695

(6) A PERS retirant who, less than one hundred eighty days	696
after the retirement benefit commences, returns to employment in	697
the same position or a position in which the duties are the same	698
or substantially equivalent with the public employer by which the	699
retirant was employed at the time of retirement shall forfeit the	700
pension portion of the retirement benefit for the period beginning	701
on the day on which the employment commences and ending on the	702
first day of the month following the month in which the employment	703
ends. The annuity portion of the retirement benefit shall be	704
suspended on the day the employment under this section commences	705
and shall accumulate to the credit of the retirant to be paid in a	706
single payment following termination of the employment.	707

In all cases of doubt, the public employees retirement board	708
shall determine whether the duties of the position are the same or	709
substantially equivalent. Its decision is final.	710

Payment of the retirement benefit shall resume on the first	711
day of the month following termination of the employment. On	712
termination of the employment, the PERS retirant shall receive a	713
refund of the retirant's contributions to the retirement system	714
during the period of employment subject to this section.	715

(7) A PERS retirant who enters into a contract to provide	716
services as an independent contractor to the employer by which the	717
retirant was employed at the time of retirement or, less than two	718
months after the retirement allowancebenefit commences, begins	719
providing services as an independent contractor pursuant to a	720
contract with another public employer, shall forfeit the pension	721
portion of the retirement benefit for the period beginning the	722
first day of the month following the month in which the services	723
begin and ending on the first day of the month following the month	724
in which the services end. The annuity portion of the retirement	725
allowancebenefit shall be suspended on the day services under the	726
contract begin and shall accumulate to the credit of the retirant	727
to be paid in a single payment after services provided under the	728
contract terminate. A PERS retirant subject to division (B)(6)(7)	729
of this section shall not contribute to the retirement system and	730
shall not become a member of the system.	731

(7)(8) As used in this division, "employment" includes	732
service for which a PERS retirant or other system retirant, the	733
retirant's employer, or both, have waived any earnable salary for	734
the service.	735

(C)(1) Except as provided in division (C)(3) of this section,	736
this division applies to both of the following:	737

(a) A PERS retirant who, prior to September 14, 2000, was	738
subject to division (C)(1)(b) of this section as that division	739
existed immediately prior to September 14, 2000, and has not	740
elected pursuant to Am. Sub. S.B. 144 of the 123rd general	741
assembly to cease to be subject to that division;	742

(b) A PERS retirant to whom both of the following apply:

743

(i) The retirant held elective office in this state, or in	744
any municipal corporation, county, or other political subdivision	745
of this state at the time of retirement under this chapter.	746

(ii) The retirant was elected or appointed to the same office	747
for the remainder of the term or the term immediately following	748
the term during which the retirement occurred.	749

(2) A PERS retirant who is subject to this division is a	750
member of the public employees retirement system with all the	751
rights, privileges, and obligations of membership, except that the	752
membership does not include survivor benefits provided pursuant to	753
section 145.45 of the Revised Code or, beginning on the ninetieth	754
day after September 14, 2000, any amount calculated under section	755
145.401 of the Revised Code. The pension portion of the PERS	756
retirant's retirement allowance shall be forfeited until the first	757
day of the first month following termination of the employment.	758
The annuity portion of the retirement allowance shall accumulate	759
to the credit of the PERS retirant to be paid in a single payment	760
after termination of the employment. The retirement allowance	761
shall resume on the first day of the first month following	762
termination of the employment. On termination of the employment,	763
the PERS retirant shall elect to receive either a refund of the	764
retirant's contributions to the retirement system during the	765
period of employment subject to this section or a supplemental	766
retirement allowance based on the retirant's contributions and	767
service credit for that period of employment.	768

(3) This division does not apply to any of the following:

769

(a) A PERS retirant elected to office who, at the time of the	770
election for the retirant's current term, was not retired but, not	771
less than ninety days prior to the primary election for the term	772
or the date on which a primary for the term would have been held,	773
filed a written declaration of intent to retire before the end of	774
the term with the director of the board of elections of the county	775
in which petitions for nomination or election to the office are	776
filed;	777

(b) A PERS retirant elected to office who, at the time of the	778
election for the retirant's current term, was a retirant and had	779
been retired for not less than ninety days;	780

(c) A PERS retirant appointed to office who, at the time of	781
appointment to the retirant's current term, notified the person or	782
entity making the appointment that the retirant was already	783
retired or intended to retire before the end of the term.	784

(D)(1) Except as provided in division (C) of this section, a	785
A PERS retirant or other system retirant subject to this section	786
is not a member of the public employees retirement system, and,	787
except as specified in this section does not have any of the	788
rights, privileges, or obligations of membership. Except as	789
specified in division (D)(C)(2) of this section, the retirant is	790
not eligible to receive health, medical, hospital, or surgical	791
benefits under section 145.58 of the Revised Code for employment	792
subject to this section.	793

(2) A PERS retirant subject to this section shall receive	794
primary health, medical, hospital, or surgical insurance coverage	795
from the retirant's employer, if the employer provides coverage to	796
other employees performing comparable work. Neither the employer	797
nor the PERS retirant may waive the employer's coverage, except	798
that the PERS retirant may waive the employer's coverage if the	799
retirant has coverage comparable to that provided by the employer	800
from a source other than the employer or the public employees	801
retirement system. If a claim is made, the employer's coverage	802
shall be the primary coverage and shall pay first. The benefits	803
provided under section 145.58 of the Revised Code shall pay only	804
those medical expenses not paid through the employer's coverage or	805
coverage the PERS retirant receives through a source other than	806
the retirement system.	807

(E)(D) If the disability benefit of an other system retirant	808
employed under this section is terminated, the retirant shall	809
become a member of the public employees retirement system and	810
participate in the PERS defined benefit plan, effective on the	811
first day of the month next following the termination with all the	812
rights, privileges, and obligations of membership. If such person,	813
after the termination of the disability benefit, earns two years	814
of service credit under this systemthe PERS defined benefit plan	815
or under the Ohio police and fire pension fund, state teachers	816
retirement system, school employees retirement system, or state	817
highway patrol retirement system, the person's prior contributions	818
as an other system retirant under this section shall be included	819
in the person's total service credit as a public employees	820
retirement system member, and the person shall forfeit all rights	821
and benefits of this section. Not more than one year of credit may	822
be given for any period of twelve months.	823

(F)(E) This section does not affect the receipt of benefits	824
by or eligibility for benefits of any person who on August 20,	825
1976, was receiving a disability benefit or service retirement	826
pension or allowance from a state or municipal retirement system	827
in Ohio and was a member of any other state or municipal	828
retirement system of this state.	829

(G)(F) The public employees retirement board may adopt rules	830
to carry out this section.	831

Sec. 145.384. (A) As used in this section, "PERS retirant"	832
means a PERS retirant who is not subject to division (C) of	833
section 145.38 of the Revised Code. For purposes of this section,	834
"PERS retirant" also includes both of the following:	835

(1) A member who retired under section 145.383 of the Revised	836
Code;	837

(2) A retirant whose retirement allowance resumed under	838
section 145.385 of the Revised Code.	839

(B)(1) An other system retirant or PERS retirant who has made	840
contributions under section 145.38 or 145.383 of the Revised Code	841
or, in the case of a retirant described in division (A)(2) of this	842
section, section 145.47 of the Revised Code may file an	843
application with the public employees retirement system to receive	844
either a benefit, as provided in division (B)(2) of this section,	845
or payment of the retirant's contributions made under those	846
sections, as provided in division (H) of this section.	847

(2) A benefit under this section shall consist of an annuity	848
having a reserve equal to the amount of the retirant's accumulated	849
contributions for the period of employment, other than the	850
contributions excluded pursuant to division (B)(4)(a) or (b) of	851
section 145.38 of the Revised Code, and an amount of the	852
employer's contributions determined by the board.	853

(a) Unless, as described in division (I) of this section, the	854
application is accompanied by a statement of the spouse's consent	855
to another form of payment or the board waives the requirement of	856
spousal consent, a PERS retirant or other system retirant who is	857
married at the time of application for a benefit under this	858
section shall receive a monthly annuity under which the actuarial	859
equivalent of the retirant's single life annuity is paid in a	860
lesser amount for life and one-half of the lesser amount continues	861
after the retirant's death to the surviving spouse.	862

(b) A PERS retirant or other system retirant who is not	863
subject to division (B)(2)(a) of this section shall elect either	864
to receive the benefit as a monthly annuity or a lump sum payment	865
discounted to the present value using a rate of interest	866
determined by the board. A retirant who elects to receive a	867
monthly annuity shall select one of the following as the plan of	868
payment:	869

(i) The retirant's single life annuity;

870

(ii) The actuarial equivalent of the retirant's single life	871
annuity in an equal or lesser amount for life and continuing after	872
death to a surviving beneficiary designated at the time the plan	873
of payment is selected.	874

If a retirant who is eligible to select a plan of payment	875
under division (B)(2)(b) of this section fails to do so, the	876
benefit shall be paid as a monthly annuity under the plan of	877
payment specified in rules adopted by the public employees	878
retirement board.	879

(c) Notwithstanding divisions (B)(2)(a) and (b) of this	880
section, if a monthly annuity would be less than twenty-five	881
dollars per month, the retirant shall receive a lump sum payment.	882

(C)(1) The death of a spouse or other designated beneficiary	883
under a plan of payment described in division (B)(2) of this	884
section cancels that plan of payment. The PERS retirant or other	885
system retirant shall receive the equivalent of the retirant's	886
single life annuity, as determined by the board, effective the	887
first day of the month following receipt by the board of notice of	888
the death.	889

(2) On divorce, annulment, or marriage dissolution, a PERS	890
retirant or other system retirant receiving a benefit described in	891
division (B)(2) of this section under which the beneficiary is the	892
spouse may, with the written consent of the spouse or pursuant to	893
an order of the court with jurisdiction over the termination of	894
the marriage, elect to cancel the plan and receive the equivalent	895
of the retirant's single life annuity as determined by the board.	896
The election shall be made on a form provided by the board and	897
shall be effective the month following its receipt by the board.	898

(D) Following a marriage or remarriage, a PERS retirant or	899
other system retirant who is receiving a benefit described in	900
division (B)(2)(b)(i) of this section may elect a new plan of	901
payment under division (B)(2)(b) of this section based on the	902
actuarial equivalent of the retirant's single life annuity as	903
determined by the board.	904

If the marriage or remarriage occurs on or after the	905
effective date of this amendmentJune 6, 2005, the election must	906
be made not later than one year after the date of the marriage or	907
remarriage.	908

The plan elected under this division shall be effective on	909
the date of receipt by the board of an application on a form	910
approved by the board, but any change in the amount of the benefit	911
shall commence on the first day of the month following the	912
effective date of the plan.	913

(E) A benefit payable under division (B)(2) of this section	914
shall commence on the latest of the following:	915

(1) The last day for which compensation for all employment	916
subject to section 145.38, 145.383, or 145.385 of the Revised Code	917
was paid;	918

(2) Attainment by the PERS retirant or other system retirant	919
of age sixty-five;	920

(3) If the PERS retirant or other system retirant was	921
previously employed under section 145.38, 145.383, or 145.385 of	922
the Revised Code and is receiving or previously received a benefit	923
under this section, completion of a period of twelve months since	924
the effective date of the last benefit under this section;	925

(4) A date specified by the retirant.

926

(F)(1) If a PERS retirant or other system retirant dies while	927
employed in employment subject to section 145.38, 145.383, or	928
145.385 of the Revised Code, a lump sum payment calculated in	929
accordance with division (B)(2) of this section shall be paid to	930
the retirant's beneficiary under division (G) of this section.	931

(2) If at the time of death a PERS retirant or other system	932
retirant receiving a monthly annuity under division (B)(2)(b)(i)	933
of this section has received less than the retirant would have	934
received as a lump sum payment, the difference between the amount	935
received and the amount that would have been received as a lump	936
sum payment shall be paid to the retirant's beneficiary under	937
division (G) of this section.	938

(3) If a beneficiary receiving a monthly annuity under	939
division (B)(2) of this section dies and, at the time of the	940
beneficiary's death, the total of the amounts paid to the retirant	941
and beneficiary are less than the amount the retirant would have	942
received as a lump sum payment, the difference between the total	943
of the amounts received by the retirant and beneficiary and the	944
amount that the retirant would have received as a lump sum payment	945
shall be paid to the beneficiary's estate.	946

(G) A PERS retirant or other system retirant employed under	947
section 145.38, 145.383, or 145.385 of the Revised Code may	948
designate one or more persons as beneficiary to receive any	949
benefits payable under division (B)(2)(b) of this section due to	950
death. The designation shall be in writing duly executed on a form	951
provided by the public employees retirement board, signed by the	952
PERS retirant or other system retirant, and filed with the board	953
prior to death. The last designation of a beneficiary revokes all	954
previous designations. The PERS retirant's or other system	955
retirant's marriage, divorce, marriage dissolution, legal	956
separation, withdrawal of account, birth of a child, or adoption	957
of a child revokes all previous designations. If there is no	958
designated beneficiary, the beneficiary is the beneficiary	959
determined under division (D) of section 145.43 of the Revised	960
Code. If any benefit payable under this section due to the death	961
of a PERS retirant or other system retirant is not claimed by a	962
beneficiary within five years after the death, the amount payable	963
shall be transferred to the income fund and thereafter paid to the	964
beneficiary or the estate of the PERS retirant or other system	965
retirant on application to the board.	966

(H)(1) A PERS retirant or other system retirant who applies	967
under division (B)(1) of this section for payment of the	968
retirant's contributions and is unmarried or is married and,	969
unless the board has waived the requirement of spousal consent,	970
includes with the application a statement of the spouse's consent	971
to the payment, shall be paid the contributions made under section	972
145.38 or 145.383 of the Revised Code or, in the case of a	973
retirant described in division (A)(2) of this section, section	974
145.47 of the Revised Code, plus interest as provided in section	975
145.471 of the Revised Code, if the following conditions are met:	976

(a) The retirant has not attained sixty-five years of age and	977
has terminated employment subject to section 145.38, 145.383, or	978
145.385 of the Revised Code for any cause other than death or the	979
receipt of a benefit under this section.	980

(b) Three months have elapsed since the termination of the	981
retirant's employment subject to section 145.38, 145.383, or	982
145.385 of the Revised Code, other than employment exempted from	983
contribution pursuant to section 145.03 of the Revised Code.	984

(c) The retirant has not returned to public service, other	985
than service exempted from contribution pursuant to section 145.03	986
of the Revised Code, during the three-month period.	987

(2) Payment of a retirant's contributions cancels the	988
retirant's right to a benefit under division (B)(2) of this	989
section.	990

(I) A statement of a spouse's consent under division (B)(2)	991
of this section to the form of a benefit or under division (H) of	992
this section to a payment of contributions is valid only if signed	993
by the spouse and witnessed by a notary public. The board may	994
waive the requirement of spousal consent if the spouse is	995
incapacitated or cannot be located, or for any other reason	996
specified by the board. Consent or waiver is effective only with	997
regard to the spouse who is the subject of the consent or waiver.	998

(J) No amount received under this section shall be included	999
in determining an additional benefit under section 145.323 of the	1000
Revised Code or any other post-retirement benefit increase.	1001

Sec. 145.473.  (A) Except as provided in division (C) of this	1002
section, the rate of interest credited to individual accounts of	1003
contributors under sections 145.471 and 145.472 of the Revised	1004
Code shall be as follows:	1005

(1) Four per cent per annum, compounded annually, to and	1006
including December 31, 1955;	1007

(2) Three per cent per annum, compounded annually, from	1008
January 1, 1956, to and including December 31, 1963;	1009

(3) Three and one-quarter per cent per annum, compounded	1010
annually, from January 1, 1964, to and including December 31,	1011
1969;	1012

(4) Four per cent per annum, compounded annually, from	1013
January 1, 1970, to and including the day before December 13,	1014
2000;	1015

(5) An amount determined by the public employees retirement	1016
board that is not greater than six per cent per annum, compounded	1017
annually, on and after December 13, 2000.	1018

(B) Except as provided in division (C) of this section, for	1019
the purpose of determining the reserve value of a contributor's	1020
annuity, the rate of interest shall be as follows:	1021

(1) Four per cent per annum, compounded annually, for	1022
contributors retiring before October 1, 1956;	1023

(2) Three per cent per annum, compounded annually, for	1024
contributors retiring on or after October 1, 1956, but before	1025
January 1, 1964;	1026

(3) Three and one-quarter per cent per annum, compounded	1027
annually, for contributors retiring on or after January 1, 1964,	1028
but before January 1, 1970;	1029

(4) Four per cent per annum, compounded annually, for	1030
contributors retiring on or after January 1, 1970, but before	1031
December 13, 2000;	1032

(5) An amount determined by the board based on the	1033
recommendation of the board's actuary, compounded annually, for	1034
contributors retiring on or after December 13, 2000.	1035

(C) For a PERS retirant who is not subject to division (C)	1036
of section 145.38 of the Revised Code or an other system retirant,	1037
as those terms arethat term is defined in section 145.38 of the	1038
Revised Code, or a member of the public employees retirement	1039
system who retires in accordance with section 145.383 of the	1040
Revised Code, the rate of interest shall be the current actuarial	1041
assumption rate of interest, as determined by the board's actuary,	1042
for the purposes described in divisions (A) and (B) of this	1043
section.	1044

Sec. 145.58.  (A) As used in this section, "ineligible	1045
individual" means all of the following:	1046

(1) A former member receiving benefits pursuant to section	1047
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code for	1048
whom eligibility is established more than five years after June	1049
13, 1981, and who, at the time of establishing eligibility, has	1050
accrued less than ten years' service credit, exclusive of credit	1051
obtained pursuant to section 145.297 or 145.298 of the Revised	1052
Code, credit obtained after January 29, 1981, pursuant to section	1053
145.293 or 145.301 of the Revised Code, and credit obtained after	1054
May 4, 1992, pursuant to section 145.28 of the Revised Code;	1055

(2) The spouse of the former member;

1056

(3) The beneficiary of the former member receiving benefits	1057
pursuant to section 145.46 of the Revised Code.	1058

(B) The public employees retirement board may enter into	1059
agreements with insurance companies, health insuring corporations,	1060
or government agencies authorized to do business in the state for	1061
issuance of a policy or contract of health, medical, hospital, or	1062
surgical benefits, or any combination thereof, for those	1063
individuals receiving age and service retirement or a disability	1064
or survivor benefit subscribing to the plan, or for PERS retirants	1065
employed under section 145.38 of the Revised Code, for coverage of	1066
benefits in accordance with division (D)(C)(2) of section 145.38	1067
of the Revised Code. Notwithstanding any other provision of this	1068
chapter, the policy or contract may also include coverage for any	1069
eligible individual's spouse and dependent children and for any of	1070
the individual's sponsored dependents as the board determines	1071
appropriate. If all or any portion of the policy or contract	1072
premium is to be paid by any individual receiving age and service	1073
retirement or a disability or survivor benefit, the individual	1074
shall, by written authorization, instruct the board to deduct the	1075
premium agreed to be paid by the individual to the company,	1076
corporation, or agency.	1077

The board may contract for coverage on the basis of part or	1078
all of the cost of the coverage to be paid from appropriate funds	1079
of the public employees retirement system. The cost paid from the	1080
funds of the system shall be included in the employer's	1081
contribution rate provided by sections 145.48 and 145.51 of the	1082
Revised Code. The board may by rule provide coverage to ineligible	1083
individuals if the coverage is provided at no cost to the	1084
retirement system. The board shall not pay or reimburse the cost	1085
for coverage under this section or section 145.325 of the Revised	1086
Code for any ineligible individual.	1087

The board may provide for self-insurance of risk or level of	1088
risk as set forth in the contract with the companies,	1089
corporations, or agencies, and may provide through the	1090
self-insurance method specific benefits as authorized by rules of	1091
the board.	1092

(C) The board shall, beginning the month following receipt of	1093
satisfactory evidence of the payment for coverage, pay monthly to	1094
each recipient of service retirement, or a disability or survivor	1095
benefit under the public employees retirement system who is	1096
eligible for medical insurance coverage under part B of Title	1097
XVIII of "The Social Security Act," 79 Stat. 301 (1965), 42	1098
U.S.C.A. 1395j, as amended, an amount equal to the basic premium	1099
for such coverage, except that the board shall make no such	1100
payment to any ineligible individual.	1101

(D) The board shall establish by rule requirements for the	1102
coordination of any coverage, payment, or benefit provided under	1103
this section or section 145.325 of the Revised Code with any	1104
similar coverage, payment, or benefit made available to the same	1105
individual by the Ohio police and fire pension fund, state	1106
teachers retirement system, school employees retirement system, or	1107
state highway patrol retirement system.	1108

(E) The board shall make all other necessary rules pursuant	1109
to the purpose and intent of this section.	1110

Sec. 742.26.  (A) As used in this section:

1111

(1) "Actuarial present value" means the calculation under	1112
which the probability of occurrence, based on a specified	1113
mortality table, and the discount for future monetary growth at a	1114
specified interest rate are considered by an actuary to determine	1115
the value of an annuity.	1116

(2) "Other system retirant" means a former member of the	1117
public employees retirement system, state teachers retirement	1118
system, school employees retirement system, state highway patrol	1119
retirement system, or Cincinnati retirement system who is	1120
receiving a disability benefit or an age and service or commuted	1121
age and service retirement benefit or allowance from a system of	1122
which the person is a former member.	1123

(3) "OPFPF retirant" means any person who is receiving a	1124
retirement allowance, other than a disability benefit, from the	1125
Ohio police and fire pension fund.	1126

(4) "Annuity portion of a retirement allowance" means the	1127
portion of a retirement allowance that is derived from	1128
contributions made by the retirant and is paid in monthly or less	1129
frequent installments;	1130

(5) "Pension portion of a retirement allowance" means the	1131
portion of a retirement allowance that is derived from	1132
contributions made by the employer and is paid in monthly or less	1133
frequent installments.	1134

(B) The mortality table and interest rate used in determining	1135
actuarial present value shall be determined by the board of	1136
trustees of the fund based on the recommendations of an actuary	1137
employed by the board.	1138

(C)(1) An OPFPF retirant or other system retirant may be	1139
employed as a member of a police or fire department. If so	1140
employed, the retirant shall make contributions to the fund in	1141
accordance with section 742.31 of the Revised Code, and the	1142
employer shall make contributions in accordance with sections	1143
742.33 and 742.34 of the Revised Code.	1144

(2) An employer that employs an OPFPF retirant or other	1145
system retirant shall notify the board of trustees of the fund of	1146
the employment not later than the end of the month in which the	1147
employment commences. On receipt of notice from an employer that a	1148
person who is an other system retirant has been employed, the fund	1149
shall notify the retirement system of which the other system	1150
retirant was a member of such employment.	1151

(D)(1) An OPFPF retirant or other system retirant who has	1152
received a retirement allowance or benefit for less than two	1153
months when employment subject to this section commences shall	1154
forfeit the retirement allowance or benefit for the period that	1155
begins on the date the employment commences and ends on the	1156
earlier of the date the employment terminates or the date that is	1157
two months after the date on which the retirement allowance or	1158
benefit commenced. Service and contributions for that period shall	1159
not be included in the calculation of any benefits payable under	1160
this section, and those contributions shall be refunded on the	1161
retirant's death or termination of the employment.	1162

(2) An OPFPF retirant who, less than one hundred eighty days	1163
after the retirement allowance commences, returns to employment in	1164
the same position or a position in which the duties are the same	1165
or substantially equivalent with the police or fire department by	1166
which the retirant was employed at the time of retirement shall	1167
forfeit the pension portion of the retirement allowance for the	1168
period beginning on the day on which the employment commences and	1169
ending on the first day of the month following the month in which	1170
the employment ends. The annuity portion of the retirement	1171
allowance shall be suspended on the day the employment under this	1172
section commences and shall accumulate to the credit of the	1173
retirant to be paid in a single payment following termination of	1174
the employment.	1175

In all cases of doubt, the board of trustees of the fund	1176
shall determine whether the duties of the position are the same or	1177
substantially equivalent. Its decision is final.	1178

Payment of the retirement allowance shall resume on the first	1179
day of the month following termination of the employment. On	1180
termination of the employment, the OPFPF retirant shall receive a	1181
refund of the retirant's contributions to the pension fund during	1182
the period of employment subject to this section.	1183

(E) On receipt of notice from the public employees retirement	1184
system, school employees retirement system, or state teachers	1185
retirement system of the re-employment of an OPFPF retirant, the	1186
Ohio police and fire pension fund shall not pay, or if paid shall	1187
recover, the amount to be forfeited by the OPFPF retirant in	1188
accordance with section 145.38, 3307.35, or 3309.341 of the	1189
Revised Code.	1190

(F)(1) On termination of employment under this section, an	1191
OPFPF retirant or other system retirant may file an application	1192
with the board of trustees of the fund to receive either a	1193
benefit, as provided in division (F)(2) of this section, or	1194
payment of the retirant's contributions made under this section,	1195
as provided in division (H) of this section.	1196

(2) A benefit under this section shall consist of an annuity	1197
the actuarial present value of which is equal to two times the sum	1198
of all amounts deducted from the salary of the OPFPF retirant or	1199
other system retirant and credited to the retirant's individual	1200
account in the fund, other than contributions excluded pursuant to	1201
division (D) of this section, together with interest credited	1202
thereon at the rate determined by the board.	1203

(a) Unless, as described in division (I) of this section, the	1204
application is accompanied by a statement of the spouse's consent	1205
to another form of payment or the board of trustees waives the	1206
requirement of spousal consent, a retirant who is married at the	1207
time of application under this division shall receive a monthly	1208
annuity under which the actuarial equivalent of the retirant's	1209
single life annuity is paid in a lesser amount for life and	1210
one-half of the lesser amount continues after the retirant's death	1211
to the surviving spouse.	1212

(b) A retirant who is not subject to division (F)(2)(a) of	1213
this section shall elect to receive either a monthly annuity or a	1214
lump-sumlump sum payment. If the retirant fails to elect a plan	1215
of payment, the annuity shall be paid as a monthly annuity under	1216
the plan of payment specified in rules adopted by the board of	1217
trustees of the fund.	1218

A retirant who elects to receive a monthly annuity shall	1219
select one of the following as the plan of payment:	1220

(i) The retirant's single life annuity;

1221

(ii) The actuarial equivalent of the retirant's single life	1222
annuity in an equal or lesser amount for life and continuing after	1223
death to a surviving beneficiary designated at the time the plan	1224
of payment is selected.	1225

(c) Notwithstanding divisions (F)(2)(a) and (b) of this	1226
section, if a monthly annuity would be less than twenty-five	1227
dollars per month, the retirant shall receive a lump sum payment.	1228

(3) Interest shall be credited to accounts only at the time	1229
of calculation of a benefit payable under division (F)(2) of this	1230
section.	1231

(4) A benefit payable under this division shall commence on	1232
the first day of the month immediately after the latest of the	1233
following:	1234

(a) The last day for which compensation for employment	1235
subject to this section was paid;	1236

(b) Attainment by the OPFPF retirant or other system retirant	1237
of age sixty;	1238

(c) If the OPFPF retirant or other system retirant was	1239
previously employed under this section and is receiving or	1240
previously received a benefit under this division, completion of a	1241
period of twelve months since the last benefit paid under this	1242
section commenced.	1243

(5) No amount received under this division shall be included	1244
in determining an additional benefit under section 742.3711,	1245
742.3716, or 742.3717 of the Revised Code or any other	1246
post-retirement benefit increase.	1247

(G)(1) If an OPFPF retirant or other system retirant dies	1248
while employed in employment subject to this section, a lump-sum	1249
lump sum payment calculated in accordance with division (F)(2) of	1250
this section shall be paid to the retirant's surviving spouse, or	1251
if there is no surviving spouse, to the retirant's estate.	1252

(2) If at the time of death an OPFPF retirant or other system	1253
retirant receiving a monthly annuity under division (F)(2) of this	1254
section has received less than would have been received as a	1255
lump-sumlump sum payment under division (F)(2) of this section,	1256
the difference between the amount received and the amount that	1257
would have been received as a lump-sumlump sum payment shall be	1258
paid to the retirant's surviving spouse, or if there is no	1259
surviving spouse, to the retirant's estate.	1260

(3) If a beneficiary receiving a monthly annuity under	1261
division (F)(2) of this section dies and, at the time of the	1262
beneficiary's death, the total of the amounts paid to the retirant	1263
and beneficiary are less than the amount the retirant would have	1264
received as a lump sum payment, the difference between the total	1265
of the amounts received by the retirant and beneficiary and the	1266
amount that the retirant would have received as a lump sum payment	1267
shall be paid to the beneficiary's estate.	1268

(H)(1) An OPFPF retirant or other system retirant who applies	1269
under division (F)(1) of this section for payment of the	1270
retirant's contributions and is unmarried or is married and,	1271
unless the board of trustees has waived the requirement of spousal	1272
consent, includes with the application a statement of the spouse's	1273
consent to the payment shall be paid the contributions made under	1274
division (C) of this section, plus interest, if the following	1275
conditions are met:	1276

(a) The retirant has not attained sixty years of age and has	1277
terminated employment subject to this section for any cause other	1278
than death or the receipt of a benefit under division (F) of this	1279
section.	1280

(b) Three months have elapsed since the termination of	1281
employment subject to this section.	1282

(c) The retirant has not returned to service subject to this	1283
chapter or Chapter 145., 3307., or 3309. of the Revised Code,	1284
other than service exempted from contribution to the public	1285
employees retirement system pursuant to section 145.03 of the	1286
Revised Code, during the three-month period.	1287

(2) Payment of a retirant's contributions cancels the	1288
retirant's right to a benefit under division (F) of this section.	1289

(I) A statement of a spouse's consent under division (F) of	1290
this section to the form of a benefit or under division (H) of	1291
this section to a payment of contributions is valid only if signed	1292
by the spouse and witnessed by a notary public. The board of	1293
trustees may waive the requirement of spousal consent if the	1294
spouse is incapacitated or cannot be located, or for any other	1295
reason specified by the board. Consent or waiver is effective only	1296
with regard to the spouse who is the subject of the consent or	1297
waiver.	1298

(J) An other system retirant subject to this section is not a	1299
member of the Ohio police and fire pension fund, does not have any	1300
of the rights, privileges, or obligations of membership, except as	1301
specified in this section, and is not eligible to receive health,	1302
medical, hospital, or surgical benefits under section 742.45 of	1303
the Revised Code for employment subject to this section.	1304

(K) If any payment is made by the Ohio police and fire	1305
pension fund to an OPFPF retirant or other system retirant to	1306
which the retirant is not entitled, the retirant shall repay it to	1307
the fund. If the retirant fails to make the repayment, the fund	1308
shall withhold the amount due from any allowances or other amounts	1309
due the OPFPF retirant or other system retirant.	1310

(L) An OPFPF retirant who is employed under this section is	1311
not eligible to receive any benefits under section 742.37 of the	1312
Revised Code for the employment under this section.	1313

(M) This section does not affect the receipt of benefits by	1314
or eligibility for benefits of any person who on August 20, 1976,	1315
was receiving a disability benefit or service retirement pension	1316
or allowance from a state or municipal retirement system in Ohio	1317
and was a member of any other state or municipal retirement system	1318
of this state.	1319

(N) The board of trustees of the fund may adopt rules to	1320
carry out this section.	1321

Sec. 3307.35.  (A) As used in this section and section	1322
3307.352 of the Revised Code, "other:	1323

(1) "Other system retirant" means a member or former member	1324
of the public employees retirement system, Ohio police and fire	1325
pension fund, school employees retirement system, state highway	1326
patrol retirement system, or Cincinnati retirement system who is	1327
receiving age and service or commuted age and service retirement,	1328
or a disability benefit from a system of which the retirant is a	1329
member or former member.	1330

(2) Notwithstanding the definitions of "annuity" and	1331
"pension" in section 3307.50 of the Revised Code, in the case of a	1332
superannuate employed under this section:	1333

(a) "Annuity portion" means the portion of a retirement	1334
allowance or benefit that is derived from contributions made by	1335
the superannuate or retirant and is paid in monthly or less	1336
frequent installments;	1337

(b) "Pension portion" means the portion of a retirement	1338
allowance or benefit that is derived from contributions made by	1339
the employer and is paid in monthly or less frequent installments.	1340

(B) Subject to this section and section 3307.353 of the	1341
Revised Code, a superannuate or other system retirant may be	1342
employed as a teacher.	1343

(C) A superannuate or other system retirant employed in	1344
accordance with this section shall contribute to the state	1345
teachers retirement system in accordance with section 3307.26 of	1346
the Revised Code and the employer shall contribute in accordance	1347
with sections 3307.28 and 3307.31 of the Revised Code. Such	1348
contributions shall be received as specified in section 3307.14 of	1349
the Revised Code. A superannuate or other system retirant employed	1350
as a teacher is not a member of the state teachers retirement	1351
system, does not have any of the rights, privileges, or	1352
obligations of membership, except as provided in this section, and	1353
is not eligible to receive health, medical, hospital, or surgical	1354
benefits under section 3307.39 of the Revised Code for employment	1355
subject to this section.	1356

(D) The employer that employs a superannuate or other system	1357
retirant shall notify the state teachers retirement board of the	1358
employment not later than the end of the month in which the	1359
employment commences. Any overpayment of benefits to a	1360
superannuate by the retirement system resulting from an employer's	1361
failure to give timely notice may be charged to the employer and	1362
may be certified and deducted as provided in section 3307.31 of	1363
the Revised Code.	1364

(E) On receipt of notice from an employer that a person who	1365
is an other system retirant has been employed, the state teachers	1366
retirement system shall notify the state retirement system of	1367
which the other system retirant was a member of such employment.	1368

(F)(1) A superannuate or other system retirant who has	1369
received an allowance or benefit for less than two months when	1370
employment subject to this section commences shall forfeit the	1371
allowance or benefit for any month the superannuate or retirant is	1372
employed prior to the expiration of such period. Contributions	1373
shall be made to the retirement system from the first day of such	1374
employment, but service and contributions for that period shall	1375
not be used in the calculation of any benefit payable to the	1376
superannuate or other system retirant, and those contributions	1377
shall be refunded on the superannuate's or retirant's death or	1378
termination of the employment. Contributions made on compensation	1379
earned after the expiration of such period shall be used in	1380
calculation of the benefit or payment due under section 3307.352	1381
of the Revised Code.	1382

(2) A superannuate who, less than one hundred eighty days	1383
after the retirement allowance or benefit commences, returns to	1384
employment in the same position or a position in which the duties	1385
are the same or substantially equivalent with the employer by	1386
which the retirant was employed at the time of retirement shall	1387
forfeit the pension portion of the superannuate's retirement	1388
allowance or benefit for the period beginning on the day on which	1389
the employment commences and ending on the first day of the month	1390
following the month in which the employment ends. The annuity	1391
portion of the retirement allowance or benefit shall be suspended	1392
on the day the employment under this section commences and shall	1393
accumulate to the credit of the superannuate to be paid in a	1394
single payment following termination of the employment.	1395

In all cases of doubt, the state teachers retirement board	1396
shall determine whether the duties of the position are the same or	1397
substantially equivalent. Its decision is final.	1398

Payment of the retirement allowance or benefit shall resume	1399
on the first day of the month following termination of the	1400
employment. On termination of the employment, the superannuate	1401
shall receive a refund of the superannuate's contributions to the	1402
retirement system during the period of employment subject to this	1403
section.	1404

(G) On receipt of notice from the Ohio police and fire	1405
pension fund, public employees retirement system, or school	1406
employees retirement system of the re-employment of a	1407
superannuate, the state teachers retirement system shall not pay,	1408
or if paid shall recover, the amount to be forfeited by the	1409
superannuate in accordance with section 145.38, 742.26, or	1410
3309.341 of the Revised Code.	1411

(H) If the disability benefit of an other system retirant	1412
employed under this section is terminated, the retirant shall	1413
become a member of the state teachers retirement system, effective	1414
on the first day of the month next following the termination, with	1415
all the rights, privileges, and obligations of membership. If such	1416
person, after the termination of the retirant's disability	1417
benefit, earns two years of service credit under this retirement	1418
system or under the public employees retirement system, Ohio	1419
police and fire pension fund, school employees retirement system,	1420
or state highway patrol retirement system, the retirant's prior	1421
contributions as an other system retirant under this section shall	1422
be included in the retirant's total service credit, as defined in	1423
section 3307.50 of the Revised Code, as a state teachers	1424
retirement system member, and the retirant shall forfeit all	1425
rights and benefits of this section. Not more than one year of	1426
credit may be given for any period of twelve months.	1427

(I) This section does not affect the receipt of benefits by	1428
or eligibility for benefits of any person who on August 20, 1976,	1429
was receiving a disability benefit or service retirement pension	1430
or allowance from a state or municipal retirement system in Ohio	1431
and was a member of any other state or municipal retirement system	1432
of this state.	1433

(J) The state teachers retirement board may make the	1434
necessary rules to carry into effect this section and to prevent	1435
the abuse of the rights and privileges thereunder.	1436

Sec. 3309.341.  (A) As used in this section and section	1437
3309.344 of the Revised Code:	1438

(1) "SERS retirant" means any person who is receiving a	1439
retirement allowance from the school employees retirement system	1440
under section 3309.36, 3309.38, or 3309.381 of the Revised Code or	1441
any benefit paid under a plan established under section 3309.81 of	1442
the Revised Code.	1443

(2) "Other system retirant" means a member or former member	1444
of the public employees retirement system, Ohio police and fire	1445
pension fund, state teachers retirement system, state highway	1446
patrol retirement system, or Cincinnati retirement system who is	1447
receiving age and service or commuted age and service retirement,	1448
or a disability benefit from a system of which the retirant is a	1449
member or former member.	1450

(3) "Annuity portion of a retirement allowance" means the	1451
portion of a retirement allowance that is derived from	1452
contributions made by the retirant and is paid in monthly or less	1453
frequent installments.	1454

(4) "Pension portion of a retirement allowance" means the	1455
portion of a retirement allowance that is derived from	1456
contributions made by the employer and is paid in monthly or less	1457
frequent installments.	1458

(B)(1) Subject to this section and section 3309.345 of the	1459
Revised Code, an SERS retirant or other system retirant may be	1460
employed by a public employer. If so employed, the SERS retirant	1461
or other system retirant shall contribute to the school employees	1462
retirement system in accordance with section 3309.47 of the	1463
Revised Code, and the employer shall make contributions in	1464
accordance with section 3309.49 of the Revised Code.	1465

(2) An employer that employs an SERS retirant or other system	1466
retirant shall notify the retirement board of the employment not	1467
later than the end of the month in which the employment commences.	1468
On receipt of notice from an employer that a person who is an	1469
other system retirant has been employed, the school employees	1470
retirement system shall notify the state retirement system of	1471
which the other system retirant was a member of such employment.	1472

(C)(1) An SERS retirant or other system retirant who has	1473
received a retirement allowance or disability benefit for less	1474
than two months when employment subject to this section commences	1475
shall forfeit the retirement allowance or disability benefit for	1476
any month the SERS retirant or other system retirant is employed	1477
prior to the expiration of the two-month period. Service and	1478
contributions for that period shall not be included in the	1479
calculation of any benefits payable to the SERS retirant or other	1480
system retirant, and those contributions shall be refunded on	1481
death or termination of the employment. Contributions made on	1482
compensation earned after the expiration of such period shall be	1483
used in the calculation of the benefit or payment due under	1484
section 3309.344 of the Revised Code.	1485

(2) An SERS retirant who, less than one hundred eighty days	1486
after the retirement allowance commences, returns to employment in	1487
the same position or a position in which the duties are the same	1488
or substantially equivalent with the public employer by which the	1489
retirant was employed at the time of retirement shall forfeit the	1490
pension portion of the retirement allowance for the period	1491
beginning on the day on which the employment commences and ending	1492
on the first day of the month following the month in which the	1493
employment ends. The annuity portion of the retirement allowance	1494
shall be suspended on the day the employment under this section	1495
commences and shall accumulate to the credit of the retirant to be	1496
paid in a single payment following termination of the employment.	1497

In all cases of doubt, the school employees retirement board	1498
shall determine whether the duties of the position are the same or	1499
substantially equivalent. Its decision is final.	1500

Payment of the retirement allowance shall resume on the first	1501
day of the month following termination of the employment. On	1502
termination of the employment, the SERS retirant shall receive a	1503
refund of the retirant's contributions to the retirement system	1504
during the period of employment subject to this section.	1505

(D) On receipt of notice from the Ohio police and fire	1506
pension fund, public employees retirement system, or state	1507
teachers retirement system of the re-employment of an SERS	1508
retirant, the school employees retirement system shall not pay, or	1509
if paid shall recover, the amount to be forfeited by the SERS	1510
retirant in accordance with section 145.38, 742.26, or 3307.35 of	1511
the Revised Code.	1512

(E) An SERS retirant or other system retirant subject to this	1513
section is not a member of the school employees retirement system;	1514
does not have any of the rights, privileges, or obligations of	1515
membership, except as specified in this section; and is not	1516
eligible to receive health, medical, hospital, or surgical	1517
benefits under section 3309.69 of the Revised Code for employment	1518
subject to this section.	1519

(F) If the disability benefit of an other system retirant	1520
employed under this section is terminated, the retirant shall	1521
become a member of the school employees retirement system,	1522
effective on the first day of the month next following the	1523
termination, with all the rights, privileges, and obligations of	1524
membership. If the retirant, after the termination of the	1525
disability benefit, earns two years of service credit under this	1526
retirement system or under the public employees retirement system,	1527
Ohio police and fire pension fund, state teachers retirement	1528
system, or state highway patrol retirement system, the retirant's	1529
prior contributions as an other system retirant under this section	1530
shall be included in the retirant's total service credit as a	1531
school employees retirement system member, and the retirant shall	1532
forfeit all rights and benefits of this section. Not more than one	1533
year of credit may be given for any period of twelve months.	1534

(G) This section does not affect the receipt of benefits by	1535
or eligibility for benefits of any person who on August 29, 1976,	1536
was receiving a disability benefit or service retirement pension	1537
or allowance from a state or municipal retirement system in Ohio	1538
and was a member of any other state or municipal retirement system	1539
of this state.	1540

(H) The school employees retirement board may adopt rules to	1541
carry out this section.	1542

Section 2. That existing sections 145.01, 145.191, 145.38,	1543
145.384, 145.473, 145.58, 742.26, 3307.35, and 3309.341 of the	1544
Revised Code are hereby repealed.	1545