Sub. S. B. No. 267 As Reported by the House Financial Institutions, Real Estate and Securities Committee

As Reported by the House Financial Institutions, Real Estate and Securities Committee

127th General Assembly

Regular Session

2007-2008

Sub. S. B. No. 267

Senator Faber

Cosponsors: Senators Seitz, Cates, Coughlin, Fedor, Harris, Kearney, Miller, D., Niehaus, Wilson, Spada, Miller, R., Wagoner, Stivers, Schuler, Mumper, Mason, Smith, Amstutz, Padgett
Representatives Stewart, D., Hite, Zehringer

A BILL

To amend sections 145.01, 145.19, 145.191, 145.33,

145.35, 145.49, 145.58, and 742.45 and to enact

section 145.2914 of the Revised Code regarding

the Public Employees Retirement System (PERS)

law enforcement division and reimbursement by

PERS and the Ohio Police and Fire Pension Fund for

Medicare Part B premiums.

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

Section 1. That sections 145.01, 145.19, 145.191, 145.33,	8
145.35, 145.49, 145.58, 742.45 be amended and section 145.2914 of	9
the Revised Code be enacted to read as follows:	10

Sec. 145.01. As used in this chapter:

(A) "Public employee" means:

(1) Any person holding an office, not elective, under the	13
state or any county, township, municipal corporation, park	14
district, conservancy district, sanitary district, health	15
district, metropolitan housing authority, state retirement board,	16
Ohio historical society, public library, county law library, union	17
cemetery, joint hospital, institutional commissary, state	18
university, or board, bureau, commission, council, committee,	19
authority, or administrative body as the same are, or have been,	20
created by action of the general assembly or by the legislative	21
authority of any of the units of local government named in	22
division (A)(1) of this section, or employed and paid in whole or	23
in part by the state or any of the authorities named in division	24
(A)(1) of this section in any capacity not covered by section	25
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	26

(2) A person who is a member of the public employees	27
retirement system and who continues to perform the same or similar	28
duties under the direction of a contractor who has contracted to	29
take over what before the date of the contract was a publicly	30
operated function. The governmental unit with which the contract	31
has been made shall be deemed the employer for the purposes of	32
administering this chapter.	33

(3) Any person who is an employee of a public employer,	34
notwithstanding that the person's compensation for that employment	35
is derived from funds of a person or entity other than the	36
employer. Credit for such service shall be included as total	37
service credit, provided that the employee makes the payments	38
required by this chapter, and the employer makes the payments	39
required by sections 145.48 and 145.51 of the Revised Code.	40

(4) A person who elects in accordance with section 145.015 of	41
the Revised Code to remain a contributing member of the public	42
employees retirement system.	43

In all cases of doubt, the public employees retirement board	44
shall determine whether any person is a public employee, and its	45
decision is final.	46

(B) "Member" means any public employee, other than a public	47
employee excluded or exempted from membership in the retirement	48
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	49
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	50
retirant who becomes a member under division (C) of section 145.38	51
of the Revised Code. "Member" also includes a disability benefit	52
recipient.	53

(C) "Head of the department" means the elective or appointive	54
head of the several executive, judicial, and administrative	55
departments, institutions, boards, and commissions of the state	56
and local government as the same are created and defined by the	57
laws of this state or, in case of a charter government, by that	58
charter.	59

(D) "Employer" or "public employer" means the state or any	60
county, township, municipal corporation, park district,	61
conservancy district, sanitary district, health district,	62
metropolitan housing authority, state retirement board, Ohio	63
historical society, public library, county law library, union	64
cemetery, joint hospital, institutional commissary, state medical	65
college, state university, or board, bureau, commission, council,	66
committee, authority, or administrative body as the same are, or	67
have been, created by action of the general assembly or by the	68
legislative authority of any of the units of local government	69
named in this division not covered by section 742.01, 3307.01,	70
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	71
means the employer of any public employee.	72

(E) "Prior service" means all service as a public employee	73
rendered before January 1, 1935, and all service as an employee of	74
any employer who comes within the state teachers retirement system	75
or of the school employees retirement system or of any other	76
retirement system established under the laws of this state	77
rendered prior to January 1, 1935, provided that if the employee	78
claiming the service was employed in any capacity covered by that	79
other system after that other system was established, credit for	80
the service may be allowed by the public employees retirement	81
system only when the employee has made payment, to be computed on	82
the salary earned from the date of appointment to the date	83
membership was established in the public employees retirement	84
system, at the rate in effect at the time of payment, and the	85
employer has made payment of the corresponding full liability as	86
provided by section 145.44 of the Revised Code. "Prior service"	87
also means all service credited for active duty with the armed	88
forces of the United States as provided in section 145.30 of the	89
Revised Code.	90

If an employee who has been granted prior service credit by	91
the public employees retirement system for service rendered prior	92
to January 1, 1935, as an employee of a board of education	93
establishes, before retirement, one year or more of contributing	94
service in the state teachers retirement system or school	95
employees retirement system, then the prior service ceases to be	96
the liability of this system.	97

If the board determines that a position of any member in any	98
calendar year prior to January 1, 1935, was a part-time position,	99
the board shall determine what fractional part of a year's credit	100
shall be allowed by the following formula:	101

(1) When the member has been either elected or appointed to	102
an office the term of which was two or more years and for which an	103
annual salary is established, the fractional part of the year's	104
credit shall be computed as follows:	105

First, when the member's annual salary is one thousand	106
dollars or less, the service credit for each such calendar year	107
shall be forty per cent of a year.	108

Second, for each full one hundred dollars of annual salary	109
above one thousand dollars, the member's service credit for each	110
such calendar year shall be increased by two and one-half per	111
cent.	112

(2) When the member is paid on a per diem basis, the service	113
credit for any single year of the service shall be determined by	114
using the number of days of service for which the compensation was	115
received in any such year as a numerator and using two hundred	116
fifty days as a denominator.	117

(3) When the member is paid on an hourly basis, the service	118
credit for any single year of the service shall be determined by	119
using the number of hours of service for which the compensation	120
was received in any such year as a numerator and using two	121
thousand hours as a denominator.	122

(F) "Contributor" means any person who has an account in the	123
employees' savings fund created by section 145.23 of the Revised	124
Code. When used in the sections listed in division (B) of section	125
145.82 of the Revised Code, "contributor" includes any person	126
participating in a PERS defined contribution plan.	127

(G) "Beneficiary" or "beneficiaries" means the estate or a	128
person or persons who, as the result of the death of a member,	129
contributor, or retirant, qualify for or are receiving some right	130
or benefit under this chapter.	131

(H)(1) "Total service credit," except as provided in section	132
145.37 of the Revised Code, means all service credited to a member	133
of the retirement system since last becoming a member, including	134
restored service credit as provided by section 145.31 of the	135
Revised Code; credit purchased under sections 145.293 and 145.299	136
of the Revised Code; all the member's prior service credit; all	137
the member's military service credit computed as provided in this	138
chapter; all service credit established pursuant to section	139
145.297 of the Revised Code; and any other service credited under	140
this chapter. In addition, "total service credit" includes any	141
period, not in excess of three years, during which a member was	142
out of service and receiving benefits under Chapters 4121. and	143
4123. of the Revised Code. For the exclusive purpose of satisfying	144
the service credit requirement and of determining eligibility for	145
benefits under sections 145.32, 145.33, 145.331, 145.35, 145.36,	146
and 145.361 of the Revised Code, "five or more years of total	147
service credit" means sixty or more calendar months of	148
contributing service in this system.	149

(2) "One and one-half years of contributing service credit,"	150
as used in division (B) of section 145.45 of the Revised Code,	151
also means eighteen or more calendar months of employment by a	152
municipal corporation that formerly operated its own retirement	153
plan for its employees or a part of its employees, provided that	154
all employees of that municipal retirement plan who have eighteen	155
or more months of such employment, upon establishing membership in	156
the public employees retirement system, shall make a payment of	157
the contributions they would have paid had they been members of	158
this system for the eighteen months of employment preceding the	159
date membership was established. When that payment has been made	160
by all such employee members, a corresponding payment shall be	161
paid into the employers' accumulation fund by that municipal	162
corporation as the employer of the employees.	163

(3) Where a member also is a member of the state teachers	164
retirement system or the school employees retirement system, or	165
both, except in cases of retirement on a combined basis pursuant	166
to section 145.37 of the Revised Code or as provided in section	167
145.383 of the Revised Code, service credit for any period shall	168
be credited on the basis of the ratio that contributions to the	169
public employees retirement system bear to total contributions in	170
all state retirement systems.	171

(4) Not more than one year of credit may be given for any	172
period of twelve months.	173

(5) "Ohio service credit" means credit for service that was	174
rendered to the state or any of its political subdivisions or any	175
employer.	176

(I) "Regular interest" means interest at any rates for the	177
respective funds and accounts as the public employees retirement	178
board may determine from time to time.	179

(J) "Accumulated contributions" means the sum of all amounts	180
credited to a contributor's individual account in the employees'	181
savings fund together with any interest credited to the	182
contributor's account under section 145.471 or 145.472 of the	183
Revised Code.	184

(K)(1) "Final average salary" means the quotient obtained by	185
dividing by three the sum of the three full calendar years of	186
contributing service in which the member's earnable salary was	187
highest, except that if the member has a partial year of	188
contributing service in the year the member's employment	189
terminates and the member's earnable salary for the partial year	190
is higher than for any comparable period in the three years, the	191
member's earnable salary for the partial year shall be substituted	192
for the member's earnable salary for the comparable period during	193
the three years in which the member's earnable salary was lowest.	194

(2) If a member has less than three years of contributing	195
service, the member's final average salary shall be the member's	196
total earnable salary divided by the total number of years,	197
including any fraction of a year, of the member's contributing	198
service.	199

(3) For the purpose of calculating benefits payable to a	200
member qualifying for service credit under division (Z) of this	201
section, "final average salary" means the total earnable salary on	202
which contributions were made divided by the total number of years	203
during which contributions were made, including any fraction of a	204
year. If contributions were made for less than twelve months,	205
"final average salary" means the member's total earnable salary.	206

(L) "Annuity" means payments for life derived from	207
contributions made by a contributor and paid from the annuity and	208
pension reserve fund as provided in this chapter. All annuities	209
shall be paid in twelve equal monthly installments.	210

(M) "Annuity reserve" means the present value, computed upon	211
the basis of the mortality and other tables adopted by the board,	212
of all payments to be made on account of any annuity, or benefit	213
in lieu of any annuity, granted to a retirant as provided in this	214
chapter.	215

(N)(1) "Disability retirement" means retirement as provided	216
in section 145.36 of the Revised Code.	217

(2) "Disability allowance" means an allowance paid on account	218
of disability under section 145.361 of the Revised Code.	219

(3) "Disability benefit" means a benefit paid as disability	220
retirement under section 145.36 of the Revised Code, as a	221
disability allowance under section 145.361 of the Revised Code, or	222
as a disability benefit under section 145.37 of the Revised Code.	223

(4) "Disability benefit recipient" means a member who is	224
receiving a disability benefit.	225

(O) "Age and service retirement" means retirement as provided	226
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of	227
the Revised Code.	228

(P) "Pensions" means annual payments for life derived from	229
contributions made by the employer that at the time of retirement	230
are credited into the annuity and pension reserve fund from the	231
employers' accumulation fund and paid from the annuity and pension	232
reserve fund as provided in this chapter. All pensions shall be	233
paid in twelve equal monthly installments.	234

(Q) "Retirement allowance" means the pension plus that	235
portion of the benefit derived from contributions made by the	236
member.	237

(R)(1) Except as otherwise provided in division (R) of this	238
section, "earnable salary" means all salary, wages, and other	239
earnings paid to a contributor by reason of employment in a	240
position covered by the retirement system. The salary, wages, and	241
other earnings shall be determined prior to determination of the	242
amount required to be contributed to the employees' savings fund	243
under section 145.47 of the Revised Code and without regard to	244
whether any of the salary, wages, or other earnings are treated as	245
deferred income for federal income tax purposes. "Earnable salary"	246
includes the following:	247

(a) Payments made by the employer in lieu of salary, wages,	248
or other earnings for sick leave, personal leave, or vacation used	249
by the contributor;	250

(b) Payments made by the employer for the conversion of sick	251
leave, personal leave, and vacation leave accrued, but not used if	252
the payment is made during the year in which the leave is accrued,	253
except that payments made pursuant to section 124.383 or 124.386	254
of the Revised Code are not earnable salary;	255

(c) Allowances paid by the employer for full maintenance,	256
consisting of housing, laundry, and meals, as certified to the	257
retirement board by the employer or the head of the department	258
that employs the contributor;	259

(d) Fees and commissions paid under section 507.09 of the	260
Revised Code;	261

(e) Payments that are made under a disability leave program	262
sponsored by the employer and for which the employer is required	263
by section 145.296 of the Revised Code to make periodic employer	264
and employee contributions;	265

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	266
this section.	267

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

268

(a) Fees and commissions, other than those paid under section	269
507.09 of the Revised Code, paid as sole compensation for personal	270
services and fees and commissions for special services over and	271
above services for which the contributor receives a salary;	272

(b) Amounts paid by the employer to provide life insurance,	273
sickness, accident, endowment, health, medical, hospital, dental,	274
or surgical coverage, or other insurance for the contributor or	275
the contributor's family, or amounts paid by the employer to the	276
contributor in lieu of providing the insurance;	277

(c) Incidental benefits, including lodging, food, laundry,	278
parking, or services furnished by the employer, or use of the	279
employer's property or equipment, or amounts paid by the employer	280
to the contributor in lieu of providing the incidental benefits;	281

(d) Reimbursement for job-related expenses authorized by the	282
employer, including moving and travel expenses and expenses	283
related to professional development;	284

(e) Payments for accrued but unused sick leave, personal	285
leave, or vacation that are made at any time other than in the	286
year in which the sick leave, personal leave, or vacation was	287
accrued;	288

(f) Payments made to or on behalf of a contributor that are	289
in excess of the annual compensation that may be taken into	290
account by the retirement system under division (a)(17) of section	291
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	292
U.S.C.A. 401(a)(17), as amended;	293

(g) Payments made under division (B), (C), or (E) of section	294
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	295
No. 3 of the 119th general assembly, Section 3 of Amended	296
Substitute Senate Bill No. 164 of the 124th general assembly, or	297
Amended Substitute House Bill No. 405 of the 124th general	298
assembly;	299

(h) Anything of value received by the contributor that is	300
based on or attributable to retirement or an agreement to retire,	301
except that payments made on or before January 1, 1989, that are	302
based on or attributable to an agreement to retire shall be	303
included in earnable salary if both of the following apply:	304

(i) The payments are made in accordance with contract	305
provisions that were in effect prior to January 1, 1986;	306

(ii) The employer pays the retirement system an amount	307
specified by the retirement board equal to the additional	308
liability resulting from the payments.	309

(3) The retirement board shall determine by rule whether any	310
compensation not enumerated in division (R) of this section is	311
earnable salary, and its decision shall be final.	312

(S) "Pension reserve" means the present value, computed upon	313
the basis of the mortality and other tables adopted by the board,	314
of all payments to be made on account of any retirement allowance	315
or benefit in lieu of any retirement allowance, granted to a	316
member or beneficiary under this chapter.	317

(T)(1) "Contributing service" means all service credited to a	318
member of the system since January 1, 1935, for which	319
contributions are made as required by sections 145.47, 145.48, and	320
145.483 of the Revised Code. In any year subsequent to 1934,	321
credit for any service shall be allowed by the following formula:	322

(a) For each month for which the member's earnable salary is	323
two hundred fifty dollars or more, allow one month's credit.	324

(b) For each month for which the member's earnable salary is	325
less than two hundred fifty dollars, allow a fraction of a month's	326
credit. The numerator of this fraction shall be the earnable	327
salary during the month, and the denominator shall be two hundred	328
fifty dollars, except that if the member's annual earnable salary	329
is less than six hundred dollars, the member's credit shall not be	330
reduced below twenty per cent of a year for a calendar year of	331
employment during which the member worked each month. Division	332
(T)(1)(b) of this section shall not reduce any credit earned	333
before January 1, 1985.	334

(2) Notwithstanding division (T)(1) of this section, an	335
elected official who prior to January 1, 1980, was granted a full	336
year of credit for each year of service as an elected official	337
shall be considered to have earned a full year of credit for each	338
year of service regardless of whether the service was full-time or	339
part-time. The public employees retirement board has no authority	340
to reduce the credit.	341

(U) "State retirement board" means the public employees	342
retirement board, the school employees retirement board, or the	343
state teachers retirement board.	344

(V) "Retirant" means any former member who retires and is	345
receiving a monthly allowance as provided in sections 145.32,	346
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	347

(W) "Employer contribution" means the amount paid by an	348
employer as determined under section 145.48 of the Revised Code.	349

(X) "Public service terminates" means the last day for which	350
a public employee is compensated for services performed for an	351
employer or the date of the employee's death, whichever occurs	352
first.	353

(Y) When a member has been elected or appointed to an office,	354
the term of which is two or more years, for which an annual salary	355
is established, and in the event that the salary of the office is	356
increased and the member is denied the additional salary by reason	357
of any constitutional provision prohibiting an increase in salary	358
during a term of office, the member may elect to have the amount	359
of the member's contributions calculated upon the basis of the	360
increased salary for the office. At the member's request, the	361
board shall compute the total additional amount the member would	362
have contributed, or the amount by which each of the member's	363
contributions would have increased, had the member received the	364
increased salary for the office the member holds. If the member	365
elects to have the amount by which the member's contribution would	366
have increased withheld from the member's salary, the member shall	367
notify the employer, and the employer shall make the withholding	368
and transmit it to the retirement system. A member who has not	369
elected to have that amount withheld may elect at any time to make	370
a payment to the retirement system equal to the additional amount	371
the member's contribution would have increased, plus interest on	372
that contribution, compounded annually at a rate established by	373
the board and computed from the date on which the last	374
contribution would have been withheld from the member's salary to	375
the date of payment. A member may make a payment for part of the	376
period for which the increased contribution was not withheld, in	377
which case the interest shall be computed from the date the last	378
contribution would have been withheld for the period for which the	379
payment is made. Upon the payment of the increased contributions	380
as provided in this division, the increased annual salary as	381
provided by law for the office for the period for which the member	382
paid increased contributions thereon shall be used in determining	383
the member's earnable salary for the purpose of computing the	384
member's final average salary.	385

(Z) "Five years of service credit," for the exclusive purpose	386
of satisfying the service credit requirements and of determining	387
eligibility for benefits under section 145.33 of the Revised Code,	388
means employment covered under this chapter or under a former	389
retirement plan operated, recognized, or endorsed by the employer	390
prior to coverage under this chapter or under a combination of the	391
coverage.	392

(AA) "Deputy sheriff" means any person who is commissioned	393
and employed as a full-time peace officer by the sheriff of any	394
county, and has been so employed since on or before December 31,	395
1965~~, and whose primary duties are to preserve the peace, to~~	396
~~protect life and property, and to enforce the laws of this state~~;	397
any person who is or has been commissioned and employed as a peace	398
officer by the sheriff of any county since January 1, 1966, and	399
who has received a certificate attesting to the person's	400
satisfactory completion of the peace officer training school as	401
required by section 109.77 of the Revised Code ~~and whose primary~~	402
~~duties are to preserve the peace, protect life and property, and~~	403
~~enforce the laws of this state~~; or any person deputized by the	404
sheriff of any county and employed pursuant to section 2301.12 of	405
the Revised Code as a criminal bailiff or court constable who has	406
received a certificate attesting to the person's satisfactory	407
completion of the peace officer training school as required by	408
section 109.77 of the Revised Code ~~and whose primary duties are to~~	409
~~preserve the peace, protect life and property, and enforce the~~	410
~~laws of this state~~.	411

(BB) "Township constable or police officer in a township	412
police department or district" means any person who is	413
commissioned and employed as a full-time peace officer pursuant to	414
Chapter 505. or 509. of the Revised Code, who has received a	415
certificate attesting to the person's satisfactory completion of	416
the peace officer training school as required by section 109.77 of	417
the Revised Code~~, and whose primary duties are to preserve the~~	418
~~peace, protect life and property, and enforce the laws of this~~	419
~~state~~.	420

(CC) "Drug agent" means any person who is either of the	421
following:	422

(1) Employed ~~full-time~~full time as a narcotics agent by a	423
county narcotics agency created pursuant to section 307.15 of the	424
Revised Code and has received a certificate attesting to the	425
satisfactory completion of the peace officer training school as	426
required by section 109.77 of the Revised Code;	427

(2) Employed ~~full-time~~full time as an undercover drug agent	428
as defined in section 109.79 of the Revised Code and is in	429
compliance with section 109.77 of the Revised Code.	430

(DD) "Department of public safety enforcement agent" means a	431
full-time employee of the department of public safety who is	432
designated under section 5502.14 of the Revised Code as an	433
enforcement agent and who is in compliance with section 109.77 of	434
the Revised Code.	435

(EE) "Natural resources law enforcement staff officer" means	436
a full-time employee of the department of natural resources who is	437
designated a natural resources law enforcement staff officer under	438
section 1501.013 of the Revised Code and is in compliance with	439
section 109.77 of the Revised Code.	440

(FF) "Park officer" means a full-time employee of the	441
department of natural resources who is designated a park officer	442
under section 1541.10 of the Revised Code and is in compliance	443
with section 109.77 of the Revised Code.	444

(GG) "Forest officer" means a full-time employee of the	445
department of natural resources who is designated a forest officer	446
under section 1503.29 of the Revised Code and is in compliance	447
with section 109.77 of the Revised Code.	448

(HH) "Preserve officer" means a full-time employee of the	449
department of natural resources who is designated a preserve	450
officer under section 1517.10 of the Revised Code and is in	451
compliance with section 109.77 of the Revised Code.	452

(II) "Wildlife officer" means a full-time employee of the	453
department of natural resources who is designated a wildlife	454
officer under section 1531.13 of the Revised Code and is in	455
compliance with section 109.77 of the Revised Code.	456

(JJ) "State watercraft officer" means a full-time employee of	457
the department of natural resources who is designated a state	458
watercraft officer under section 1547.521 of the Revised Code and	459
is in compliance with section 109.77 of the Revised Code.	460

(KK) "Park district police officer" means a full-time	461
employee of a park district who is designated pursuant to section	462
511.232 or 1545.13 of the Revised Code and is in compliance with	463
section 109.77 of the Revised Code.	464

(LL) "Conservancy district officer" means a full-time	465
employee of a conservancy district who is designated pursuant to	466
section 6101.75 of the Revised Code and is in compliance with	467
section 109.77 of the Revised Code.	468

(MM) "Municipal police officer" means a member of the	469
organized police department of a municipal corporation who is	470
employed ~~full-time~~full time, is in compliance with section 109.77	471
of the Revised Code, and is not a member of the Ohio police and	472
fire pension fund.	473

(NN) "Veterans' home police officer" means any person who is	474
employed at a veterans' home as a police officer pursuant to	475
section 5907.02 of the Revised Code and is in compliance with	476
section 109.77 of the Revised Code.	477

(OO) "Special police officer for a mental health institution"	478
means any person who is designated as such pursuant to section	479
5119.14 of the Revised Code and is in compliance with section	480
109.77 of the Revised Code.	481

(PP) "Special police officer for an institution for the	482
mentally retarded and developmentally disabled" means any person	483
who is designated as such pursuant to section 5123.13 of the	484
Revised Code and is in compliance with section 109.77 of the	485
Revised Code.	486

(QQ) "State university law enforcement officer" means any	487
person who is employed ~~full-time~~full time as a state university	488
law enforcement officer pursuant to section 3345.04 of the Revised	489
Code and who is in compliance with section 109.77 of the Revised	490
Code.	491

(RR) "House sergeant at arms" means any person appointed by	492
the speaker of the house of representatives under division (B)(1)	493
of section 101.311 of the Revised Code who has arrest authority	494
under division (E)(1) of that section.	495

(SS) "Assistant house sergeant at arms" means any person	496
appointed by the house sergeant at arms under division (C)(1) of	497
section 101.311 of the Revised Code.	498

(TT) "Regional transit authority police officer" means a	499
person who is employed full time as a regional transit authority	500
police officer under division (Y) of section 306.35 of the Revised	501
Code and is in compliance with section 109.77 of the Revised Code.	502

(UU) "State highway patrol police officer" means a special	503
police officer employed full time and designated by the	504
superintendent of the state highway patrol pursuant to section	505
5503.09 of the Revised Code or a person serving full time as a	506
special police officer pursuant to that section on a permanent	507
basis on October 21, 1997, who is in compliance with section	508
109.77 of the Revised Code.	509

(VV) "Municipal public safety director" means a person who	510
serves ~~full-time~~full time as the public safety director of a	511
municipal corporation with the duty of directing the activities of	512
the municipal corporation's police department and fire department.	513

(WW) Notwithstanding section 2901.01 of the Revised Code,	514
"PERS law enforcement officer" means a sheriff,or any of the	515
following whose primary duties are to preserve the peace, protect	516
life and property, and enforce the laws of this state: a deputy	517
sheriff, 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. PERS law enforcement officer also	530
includes a person serving as a municipal public safety director at	531
any time during the period from September 29, 2005 to the	532
effective date of this amendment, if the duties of that service	533
were to preserve the peace, protect life and property, and enforce	534
the laws of this state.	535

(XX) "Hamilton county municipal court bailiff" means a person	536
appointed by the clerk of courts of the Hamilton county municipal	537
court under division (A)(3) of section 1901.32 of the Revised Code	538
who is employed full time as a bailiff or deputy bailiff, who has	539
received a certificate attesting to the person's satisfactory	540
completion of the peace officer basic training described in	541
division (D)(1) of section 109.77 of the Revised Code~~, and whose~~	542
~~primary duties are to preserve the peace, to protect life and~~	543
~~property, and to enforce the laws of this state~~.	544

(YY) "PERS public safety officer" means a Hamilton county	545
municipal court bailiff, or any of the following whose primary	546
duties are other than to preserve the peace, protect life and	547
property, and enforce the laws of this state: a deputy sheriff,	548
township constable or police officer in a township police	549
department or district, drug agent, department of public safety	550
enforcement agent, natural resources law enforcement staff	551
officer, park officer, forest officer, preserve officer, wildlife	552
officer, state watercraft officer, park district police officer,	553
conservancy district officer, veterans' home police officer,	554
special police officer for a mental health institution, special	555
police officer for an institution for the mentally retarded and	556
developmentally disabled, state university law enforcement	557
officer, municipal police officer, house sergeant at arms,	558
assistant house sergeant at arms, regional transit authority	559
police officer, or state highway patrol police officer. PERS	560
public safety officer also includes a person serving as a	561
municipal public safety director at any time during the period	562
from September 29, 2005 to the effective date of this amendment,	563
if the duties of that service were other than to preserve the	564
peace, protect life and property, and enforce the laws of this	565
state.	566

(ZZ) "Fiduciary" means a person who does any of the	567
following:	568

(1) Exercises any discretionary authority or control with	569
respect to the management of the system or with respect to the	570
management or disposition of its assets;	571

(2) Renders investment advice for a fee, direct or indirect,	572
with respect to money or property of the system;	573

(3) Has any discretionary authority or responsibility in the	574
administration of the system.	575

~~(ZZ)~~(AAA) "Actuary" means an individual who satisfies all of	576
the following requirements:	577

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

578

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

579

(3) Has a minimum of five years' experience in providing	580
actuarial services to public retirement plans.	581

~~(AAA)~~(BBB) "PERS defined benefit plan" means the plan	582
described in sections 145.201 to 145.79 of the Revised Code.	583

~~(BBB)~~(CCC) "PERS defined contribution plans" means the plan	584
or plans established under section 145.81 of the Revised Code.	585

Sec. 145.19. (A) Except as provided in division (D) of this	586
section, an individual who becomes employed in a position subject	587
to this chapter on or after the date on which the public employees	588
retirement board first establishes a PERS defined contribution	589
plan shall make an election under this section. Not later than one	590
hundred eighty days after the date on which employment begins, the	591
individual shall elect to participate either in the PERS defined	592
benefit plan or a PERS defined contribution plan. If a form	593
evidencing an election under this section is not received by the	594
public employees retirement system not later than the last day of	595
the one-hundred-eighty-day period, the individual is deemed to	596
have elected to participate in the PERS defined benefit plan.	597

(B) An election under this section shall be made in writing	598
on a form provided by the system and filed with the system.	599

(C) An election under this section shall take effect on the	600
date employment began and, except as provided in section 145.814	601
of the Revised Code or rules governing the PERS defined benefit	602
plan, is irrevocable on receipt by the system.	603

(D) An individual is ineligible to make an election under	604
this section if one of the following applies:	605

(1) At the time employment begins, the individual is a PERS	606
retirant or other system retirant, as those terms are defined in	607
section 145.38 of the Revised Code, or is retired under section	608
145.383 of the Revised Code.	609

(2) The individual is participating or has elected to	610
participate in an alternative retirement plan under section	611
3305.05 or 3305.051 of the Revised Code and the employment is in a	612
position that is subject to division (C)(4) of section 3305.05 or	613
division (F) of section 3305.051 of the Revised Code.	614

(3) The individual is a contributor who, as of the last day	615
of the month prior to the date employment begins, has five or more	616
years of total service credit.	617

(4) The individual is employed in a position covered under	618
this chapter to which section 145.193 of the Revised Code applies.	619

(5) The individual is a PERS law enforcement officer or	620
~~Hamilton county municipal court bailiff~~PERS public safety	621
officer.	622

Sec. 145.191. (A) Except as provided in division (E) of this	623
section, a public employees retirement system member or	624
contributor who, as of the last day of the month immediately	625
preceding the date on which the public employees retirement board	626
first establishes a PERS defined contribution plan, has less than	627
five years of total service credit is eligible to make an election	628
under this section. A member or contributor who is employed in	629
more than one position subject to this chapter is eligible to make	630
only one election. The election applies to all positions subject	631
to this chapter.	632

Not later than one hundred eighty days after the day the	633
board first establishes a PERS defined contribution plan, an	634
eligible member or contributor may elect to participate in a PERS	635
defined contribution plan. If a form evidencing an election is not	636
received by the system not later than the last day of the	637
one-hundred-eighty-day period, a member or contributor to whom	638
this section applies is deemed to have elected to continue	639
participating in the PERS defined benefit plan.	640

(B) An election under this section shall be made in writing	641
on a form provided by the system and filed with the system.	642

(C) On receipt of an election under this section, the system	643
shall do both of the following:	644

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

645

(a) Any employer contributions attributable to the member for	646
the period beginning on the day the board first established a PERS	647
defined contribution plan;	648

(b) All accumulated contributions attributable to the member	649
or contributor.	650

(2) Cancel all service credit and eligibility for any	651
payment, benefit, or right under the PERS defined benefit plan.	652

(D) An election under this section is effective as of the	653
date the board first established a PERS defined contribution plan	654
and, except as provided in section 145.814 of the Revised Code or	655
rules governing the PERS defined benefit plan, is irrevocable on	656
receipt by the system.	657

(E) An election may not be made under this section by a	658
member or contributor who is either of the following:	659

(1) A PERS retirant who is a member under division (C) of	660
section 145.38 of the Revised Code;	661

(2) A PERS law enforcement officer or a ~~Hamilton county~~	662
~~municipal court bailiff~~PERS public safety officer.	663

Sec. 145.2914. (A) The public employees retirement board may	664
adopt rules in accordance with section 145.09 of the Revised Code	665
to establish a program under which service credit earned under	666
division (A) or (B)(2)(b) of section 145.33 of the Revised Code is	667
treated as service credit earned under division (B)(2)(a) of that	668
section if the member makes payment to the public employees	669
retirement system in accordance with the rules.	670

(B) If the board adopts rules under division (A) of this	671
section, all of the following apply:	672

(1) For each year or portion of a year of service credit	673
earned under division (A) or (B)(2)(b) of section 145.33 of the	674
Revised Code that is to be treated as service credit earned under	675
division (B)(2)(a) of that section, the member shall pay to the	676
retirement system an amount specified by the retirement board	677
that is not less than one hundred per cent of the additional	678
liability resulting from the purchase of that year, or portion of	679
a year, of service.	680

(2) The number of years of service credit earned under	681
division (A) or (B)(2)(b) of section 145.33 of the Revised Code	682
that may be treated as service credit earned under division	683
(B)(2)(a) of that section shall not exceed five.	684

(3) Any amounts paid under this section shall be credited to	685
the employees' savings fund.	686

(4) The amounts paid by the member under this section are	687
subject to the limits established by division (n) of section 415	688
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	689
415(n), as amended.	690

(C) A member may make payments authorized by this section if	691
the member is eligible to retire under this chapter or will	692
become eligible to retire as a result of the payment. The member	693
shall agree to retire not later than ninety days after receiving	694
notice of the additional liability specified under division	695
(B)(1) of this section. Payment shall be made in full for any	696
credit earned under division (A) or (B)(2)(b) of section 145.33	697
of the Revised Code that is to be treated as service credit	698
earned under division (B)(2)(a) of that section, but the member	699
may choose to make payment for only part of the credit for which	700
the member is eligible.	701

(D) If the member does not retire not later than ninety days	702
after making the payment authorized by this section, the system	703
shall refund the payment and shall not treat the credit for which	704
payment was made as service credit earned under division	705
(B)(2)(a) of section 145.33 of the Revised Code.	706

(E) The board's rules may deal with any other matter	707
necessary to implement this section.	708

Sec. 145.33. (A) Except as provided in division (B) or (C)	709
of this section, a member with at least five years of total	710
service credit who has attained age sixty, or who has thirty years	711
of total Ohio service credit, may apply for age and service	712
retirement, which shall consist of:	713

(1) An annuity having a reserve equal to the amount of the	714
member's accumulated contributions at that time;	715

(2) A pension equal to the annuity provided by division	716
(A)(1) of this section;	717

(3) An additional pension, if the member can qualify for	718
prior service, equal to forty dollars multiplied by the number of	719
years, and fraction thereof, of such prior and military service	720
credit;	721

(4) A basic annual pension equal to one hundred eighty	722
dollars if the member has ten or more years of total service	723
credit as of October 1, 1956, except that the basic annual pension	724
shall not exceed the sum of the annual benefits provided by	725
divisions (A)(1), (2), and (3) of this section.	726

(5) When a member retires on age and service retirement, the	727
member's total annual single lifetime allowance, including the	728
allowances provided in divisions (A)(1), (2), (3), and (4) of this	729
section, shall be not less than a base amount adjusted in	730
accordance with division (A)(5) of this section and determined by	731
multiplying the member's total service credit by the greater of	732
the following:	733

(a) Eighty-six dollars;

734

(b) Two and two-tenths per cent of the member's final average	735
salary for each of the first thirty years of service plus two and	736
one-half per cent of the member's final average salary for each	737
subsequent year of service.	738

The allowance shall be adjusted by the factors of attained	739
age or years of service to provide the greater amount as	740
determined by the following schedule:	741

		Years of	Percentage	742
Attained	or	Total Service	of	743
Birthday		Credit	Base Amount	744

58	25	75	745
59	26	80	746
60	27	85	747
61		88	748
	28	90	749
62		91	750
63		94	751
	29	95	752
64		97	753
65	30 or more	100	754

Members shall vest the right to a benefit in accordance with	755
the following schedule, based on the member's attained age by	756
September 1, 1976:	757

	Percentage	758
Attained	of	759
Birthday	Base Amount	760
66	102	761
67	104	762
68	106	763
69	108	764
70 or more	110	765

(6) The total annual single lifetime allowance that a member	766
shall receive under division (A)(5) of this section shall not	767
exceed the lesser of one hundred per cent of the member's final	768
average salary or the limit established by section 415 of the	769
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	770
as amended.	771

(B)(1) For the purposes of divisions (B) to (G) of this	772
section, "total service credit as a PERS law enforcement officer"	773
and "total service credit as a ~~Hamilton county municipal court~~	774
~~bailiff~~PERS public safety officer" include credit for military	775
service to the extent permitted by division (E)(2) of this section	776
and credit for service as a police officer or state highway patrol	777
trooper to the extent permitted by divisions (E)(3) and (4) of	778
this section.	779

(2) A member who meets the conditions in division (B)(2)(a),	780
(b), or (c)~~, or (d)~~ of this section may apply for an age and	781
service retirement benefit under this division:	782

(a) The member has attained age forty-eight and has at least	783
twenty-five years of total service credit as a PERS law	784
enforcement officer ~~whose primary duties were to preserve the~~	785
~~peace, protect life and property, and enforce the laws in the~~	786
~~member's jurisdiction~~;	787

(b) The member has attained age fifty-two, and has at least	788
twenty-five years of total service credit as a PERS ~~law~~	789
~~enforcement~~public safety officer~~, but the member's primary duties~~	790
~~were other than to preserve the peace, protect life and property,~~	791
~~and enforce the laws in the member's jurisdiction~~or has service	792
as a PERS public safety officer and service as a PERS law	793
enforcement officer that when combined equal at least twenty-five	794
years of total service credit;	795

(c) ~~The member has attained age fifty-two and has at least~~	796
~~twenty-five years of total service as a Hamilton county municipal~~	797
~~court bailiff;~~	798

~~(d)~~ The member has attained age sixty-two and has at least	799
fifteen years of total service credit as either of the following:	800

(i) A PERS law enforcement officer;

801

(ii) A ~~Hamilton county municipal court bailiff~~PERS public	802
safety officer.	803

(3) A benefit paid under division (B)(2) of this section	804
shall consist of an annual single lifetime allowance equal to the	805
sum of two and one-half per cent of the member's final average	806
salary multiplied by the first twenty-five years of the member's	807
total service plus two and one-tenth per cent of the member's	808
final average salary multiplied by the number of years of the	809
member's total service credit in excess of twenty-five years.	810

(4) A member with at least fifteen years of total service	811
credit as a PERS law enforcement officer or ~~Hamilton county~~	812
~~municipal court bailiff~~PERS public safety officer who voluntarily	813
resigns or is discharged for any reason except death, dishonesty,	814
cowardice, intemperate habits, or conviction of a felony may apply	815
for an age and service retirement benefit, which shall consist of	816
an annual single lifetime allowance equal to one and one-half per	817
cent of the member's final average salary multiplied by the number	818
of years of the member's total service credit. The allowance shall	819
commence on the first day of the calendar month following the	820
month in which the application is filed with the public employees	821
retirement board on or after the attainment by the applicant of	822
age fifty-two.	823

(C)(1) A member with at least twenty-five years of total	824
service credit who would be eligible to retire under division	825
(B)(2)(b) ~~or (c)~~ of this section had the member attained age	826
fifty-two and who voluntarily resigns or is discharged for any	827
reason except death, dishonesty, cowardice, intemperate habits, or	828
conviction of a felony, on or after the date of attaining	829
forty-eight years of age, but before the date of attaining	830
fifty-two years of age, may elect to receive a reduced benefit as	831
determined by the following schedule:	832

Attained Age

Reduced Benefit

833

48	75% of the benefit payable under	834
	division (B)(3) of this section	835
49	80% of the benefit payable under	836
	division (B)(3) of this section	837
50	86% of the benefit payable under	838
	division (B)(3) of this section	839
51	93% of the benefit payable under	840
	division (B)(3) of this section	841

(2) If a member elects to receive a reduced benefit after	842
attaining age forty-eight the reduced benefit is payable from the	843
later of the date of the member's most recent birthday or the date	844
the member becomes eligible to receive the reduced benefit.	845

(3) Once a member elects to receive a reduced benefit	846
determined by the schedule in division (C)(1) of this section and	847
has received a payment, the member may not reelect to change that	848
election.	849

(4) If a member who has resigned or been discharged has left	850
on deposit the member's accumulated contributions in the	851
employees' savings fund and has not elected to receive a reduced	852
benefit determined by the schedule in division (C)(1) of this	853
section, upon attaining fifty-two years of age, the member shall	854
be entitled to receive a benefit computed and paid under division	855
(B)(3) of this section.	856

(D) A benefit paid under division (B) or (C) of this section	857
shall not exceed the lesser of ninety per cent of the member's	858
final average salary or the limit established by section 415 of	859
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	860
415, as amended.	861

(E)(1) A member with service credit as a PERS law enforcement	862
officer or a ~~Hamilton county municipal court bailiff~~PERS public	863
safety officer and other service credit under this chapter may	864
elect one of the following:	865

(a) To have all the member's service credit under this	866
chapter, including credit for service as a PERS law enforcement	867
officer or ~~Hamilton county municipal court bailiff~~PERS public	868
safety officer, used in calculating a retirement allowance under	869
division (A) of this section if the member qualifies for an	870
allowance under that division;	871

(b) If the member qualifies for an allowance under division	872
(B)(2)(a) of this section, to have the member's service credit as	873
a PERS law enforcement officer used in calculating a benefit under	874
that division and the member's credit for all service other than	875
PERS law enforcement service used in calculating a benefit	876
consisting of a single life annuity having a reserve equal to the	877
amount of the member's accumulated contributions for all service	878
other than PERS law enforcement service and an equal amount of	879
employer contributions.	880

(c) If the member qualifies for an allowance under division	881
(B)(2)(b) or (c), (B)(4), or (C) of this section, to have the	882
member's service credit as a PERS law enforcement officer or	883
~~Hamilton county municipal court bailiff~~PERS public safety officer	884
used in calculating a benefit under the appropriate division and	885
the member's credit for all service other than PERS law	886
enforcement service or service as a ~~Hamilton county municipal~~	887
~~court bailiff~~PERS public safety officer under this chapter used	888
in calculating a benefit consisting of a single life annuity	889
having a reserve equal to the amount of the member's accumulated	890
contributions for all service other than PERS law enforcement	891
service or PERS public safety officer service and an equal amount	892
of the employer's contributions.	893

(2) Notwithstanding sections 145.01 and 145.30 of the Revised	894
Code, no more than four years of military service credit granted	895
under section 145.30 of the Revised Code and five years of	896
military service credit purchased under section 145.301 or 145.302	897
of the Revised Code shall be used in calculating service as a PERS	898
law enforcement officer or ~~Hamilton county municipal court bailiff~~	899
PERS public safety officer or the total service credit of that	900
person.	901

(3) Only credit for the member's service as a PERS law	902
enforcement officer, PERS public safety officer, or service credit	903
obtained as a police officer or state highway patrol trooper shall	904
be used in computing the benefit of a member who qualifies for a	905
benefit under division (B)~~(2)(a), (b), or (d)(ii) or (4)~~ or	906
~~division~~ (C) of this section for the following:	907

(a) Any person who originally is commissioned and employed as	908
a deputy sheriff by the sheriff of any county, or who originally	909
is elected sheriff, on or after January 1, 1975;	910

(b) Any deputy sheriff who originally is employed as a	911
criminal bailiff or court constable on or after April 16, 1993;	912

(c) Any person who originally is appointed as a township	913
constable or police officer in a township police department or	914
district on or after January 1, 1981;	915

(d) Any person who originally is employed as a county	916
narcotics agent on or after September 26, 1984;	917

(e) Any person who originally is employed as an undercover	918
drug agent as defined in section 109.79 of the Revised Code,	919
department of public safety enforcement agent who prior to June	920
30, 1999, was a liquor control investigator, park officer, forest	921
officer, wildlife officer, state watercraft officer, park district	922
police officer, conservancy district officer, veterans' home	923
police officer, special police officer for a mental health	924
institution, special police officer for an institution for the	925
mentally retarded and developmentally disabled, or municipal	926
police officer on or after December 15, 1988;	927

(f) Any person who originally is employed as a state	928
university law enforcement officer on or after November 6, 1996;	929

(g) Any person who is originally employed as a state	930
university law enforcement officer by the university of Akron on	931
or after September 16, 1998;	932

(h) Any person who originally is employed as a preserve	933
officer on or after March 18, 1999;	934

(i) Any person who originally is employed as a natural	935
resources law enforcement staff officer on or after March 18,	936
1999;	937

(j) Any person who is originally employed as a department of	938
public safety enforcement agent on or after June 30, 1999;	939

(k) Any person who is originally employed as a house sergeant	940
at arms or assistant house sergeant at arms on or after September	941
5, 2001;	942

(l) Any person who is originally appointed as a regional	943
transit authority police officer or state highway patrol police	944
officer on or after February 1, 2002;	945

(m) Any person who is originally employed as a municipal	946
public safety director on or after ~~the effective date of this~~	947
~~amendment~~September 29, 2005, but not later than the effective	948
date of this amendment.	949

(4) Only credit for a member's service as a ~~Hamilton county~~	950
~~municipal court bailiff~~PERS public safety officer or service	951
credit obtained as a PERS law enforcement officer, police officer,	952
or state highway patrol trooper shall be used in computing the	953
benefit of a member who qualifies for a benefit under division	954
(B)(2)(b) or (c) ~~or (d)~~(ii) or (4) or division (C) of this section	955
for any person who originally is employed as a Hamilton county	956
municipal court bailiff on or after November 6, 1996.	957

(F) Retirement allowances determined under this section shall	958
be paid as provided in section 145.46 of the Revised Code.	959

(G) For the purposes of this section, service prior to June	960
30, 1999, as a food stamp trafficking agent under former section	961
5502.14 of the Revised Code shall be considered service as a law	962
enforcement officer.	963

Sec. 145.35. (A) As used in this section, "on-duty illness	964
or injury" means an illness or injury that occurred during or	965
resulted from performance of duties under the direct supervision	966
of a member's appointing authority.	967

(B) The public employees retirement system shall provide	968
disability coverage to each member who has at least five years of	969
total service credit and disability coverage for on-duty illness	970
or injury to each member who is a PERS law enforcement officer or	971
~~Hamilton county municipal court bailiff~~PERS public safety	972
officer, regardless of length of service.	973

Not later than October 16, 1992, the public employees	974
retirement board shall give each person who is a member on July	975
29, 1992, the opportunity to elect disability coverage either	976
under section 145.36 of the Revised Code or under section 145.361	977
of the Revised Code. The board shall mail notice of the election,	978
accompanied by an explanation of the coverage under each of the	979
Revised Code sections and a form on which the election is to be	980
made, to each member at the member's last known address. The board	981
shall also provide the explanation and form to any member on	982
request.	983

Regardless of whether the member actually receives notice of	984
the right to make an election, a member who fails to file a valid	985
election under this section shall be considered to have elected	986
disability coverage under section 145.36 of the Revised Code. To	987
be valid, an election must be made on the form provided by the	988
retirement board, signed by the member, and filed with the board	989
not later than one hundred eighty days after the date the notice	990
was mailed, or, in the case of a form provided at the request of a	991
member, a date specified by rule of the retirement board. Once	992
made, an election is irrevocable, but if the member ceases to be a	993
member of the retirement system, the election is void. If a person	994
who makes an election under this section also makes an election	995
under section 3307.62 or 3309.39 of the Revised Code, the election	996
made for the system that pays a disability benefit to that person	997
shall govern the benefit.	998

Disability coverage shall be provided under section 145.361	999
of the Revised Code for persons who become members after July 29,	1000
1992, and for members who elect under this division to be covered	1001
under section 145.361 of the Revised Code.	1002

The retirement board may adopt rules governing elections made	1003
under this division.	1004

(C) Application for a disability benefit may be made by a	1005
member, by a person acting in the member's behalf, or by the	1006
member's employer, provided the member has disability coverage	1007
under section 145.36 or 145.361 of the Revised Code and is not	1008
receiving a disability benefit under any other Ohio state or	1009
municipal retirement program. Application must be made within two	1010
years from the date the member's contributing service terminated	1011
or the date the member ceased to make contributions to the PERS	1012
defined benefit plan under section 145.814 of the Revised Code,	1013
unless the retirement board determines that the member's medical	1014
records demonstrate conclusively that at the time the two-year	1015
period expired, the member was physically or mentally	1016
incapacitated for duty and unable to make an application.	1017
Application may not be made by or for any person receiving age and	1018
service retirement benefits under section 145.33, 145.331, 145.34,	1019
or 145.37 of the Revised Code or any person who, pursuant to	1020
section 145.40 of the Revised Code, has been paid the accumulated	1021
contributions standing to the credit of the person's individual	1022
account in the employees' savings fund. The application shall be	1023
made on a form provided by the retirement board.	1024

(D) The benefit payable to any member who is approved for a	1025
disability benefit shall become effective on the first day of the	1026
month immediately following the later of the following:	1027

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

1028

(2) The attainment of eligibility for a disability benefit.

1029

(E) Medical examination of a member who has applied for a	1030
disability benefit shall be conducted by a competent disinterested	1031
physician or physicians selected by the board to determine whether	1032
the member is mentally or physically incapacitated for the	1033
performance of duty by a disabling condition either permanent or	1034
presumed to be permanent. The disability must have occurred since	1035
last becoming a member or have increased since last becoming a	1036
member to such extent as to make the disability permanent or	1037
presumed to be permanent. A disability is presumed to be permanent	1038
if it is expected to last for a continuous period of not less than	1039
twelve months following the filing of the application.	1040

If the physician or physicians determine that the member	1041
qualifies for a disability benefit, the board concurs with the	1042
determination, and the member agrees to medical treatment as	1043
specified in division (F) of this section, the member shall	1044
receive a disability benefit under section 145.36 or 145.361 of	1045
the Revised Code. The action of the board shall be final.	1046

(F) The public employees retirement board shall adopt rules	1047
requiring a disability benefit recipient, as a condition of	1048
continuing to receive a disability benefit, to agree in writing to	1049
obtain any medical treatment recommended by the board's physician	1050
and submit medical reports regarding the treatment. If the board	1051
determines that a disability benefit recipient is not obtaining	1052
the medical treatment or the board does not receive a required	1053
medical report, the disability benefit shall be suspended until	1054
the treatment is obtained, the report is received by the board, or	1055
the board's physician certifies that the treatment is no longer	1056
helpful or advisable. Should the recipient's failure to obtain	1057
treatment or submit a medical report continue for one year, the	1058
recipient's right to the disability benefit shall be terminated as	1059
of the effective date of the original suspension.	1060

(G) In the event an employer files an application for a	1061
disability benefit as a result of a member having been separated	1062
from service because the member is considered to be mentally or	1063
physically incapacitated for the performance of the member's	1064
present duty, and the physician or physicians selected by the	1065
board reports to the board that the member is physically and	1066
mentally capable of performing service similar to that from which	1067
the member was separated and the board concurs in the report, the	1068
board shall so certify to the employer and the employer shall	1069
restore the member to the member's previous position and salary or	1070
to a similar position and salary.	1071

Sec. 145.49. (A) Notwithstanding section 145.47 of the	1072
Revised Code:	1073

(1) The public employees retirement system shall be	1074
authorized to calculate the employee contribution rates separately	1075
for those public employees contributing toward benefits as PERS	1076
public safety officers under ~~division (B)(2)(b), (c), or (d) of~~	1077
section 145.33 of the Revised Code.	1078

(2) Each public employee contributing toward benefits as	1079
PERS law enforcement officers under ~~division (B)(2)(a) of~~ section	1080
145.33 of the Revised Code shall contribute to the employees'	1081
savings fund ~~ten and one-tenth~~the rate determined under division	1082
(A)(1) of this section plus an additional percentage specified by	1083
the public employees retirement board, which shall initially be	1084
one per cent of the employee's earnable salary and shall not be	1085
increased to more than two per cent of the employee's earnable	1086
salary.	1087

(B) Notwithstanding section 145.48 of the Revised Code, the	1088
public employees retirement system shall be authorized to	1089
calculate the employer contribution rates separately for those	1090
public employees contributing toward benefits as PERS public	1091
safety officers under ~~division (B)(2)(a) of~~ section 145.33 of the	1092
Revised Code or as PERS law enforcement officers under ~~division~~	1093
~~(B)(2)(b), (c), or (d) of~~ that section, except that the employer	1094
contribution rate shall not exceed eighteen and one-tenth per cent	1095
of the earnable salaries of those employees.	1096

Sec. 145.58. (A) As used in this section, "ineligible	1097
individual" means all of the following:	1098

(1) A former member receiving benefits pursuant to section	1099
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code for	1100
whom eligibility is established more than five years after June	1101
13, 1981, and who, at the time of establishing eligibility, has	1102
accrued less than ten years' service credit, exclusive of credit	1103
obtained pursuant to section 145.297 or 145.298 of the Revised	1104
Code, credit obtained after January 29, 1981, pursuant to section	1105
145.293 or 145.301 of the Revised Code, and credit obtained after	1106
May 4, 1992, pursuant to section 145.28 of the Revised Code;	1107

(2) The spouse of the former member;

1108

(3) The beneficiary of the former member receiving benefits	1109
pursuant to section 145.46 of the Revised Code.	1110

(B) The public employees retirement board may enter into	1111
agreements with insurance companies, health insuring corporations,	1112
or government agencies authorized to do business in the state for	1113
issuance of a policy or contract of health, medical, hospital, or	1114
surgical benefits, or any combination thereof, for those	1115
individuals receiving age and service retirement or a disability	1116
or survivor benefit subscribing to the plan, or for PERS retirants	1117
employed under section 145.38 of the Revised Code, for coverage of	1118
benefits in accordance with division (D)(2) of section 145.38 of	1119
the Revised Code. Notwithstanding any other provision of this	1120
chapter, the policy or contract may also include coverage for any	1121
eligible individual's spouse and dependent children and for any of	1122
the individual's sponsored dependents as the board determines	1123
appropriate. If all or any portion of the policy or contract	1124
premium is to be paid by any individual receiving age and service	1125
retirement or a disability or survivor benefit, the individual	1126
shall, by written authorization, instruct the board to deduct the	1127
premium agreed to be paid by the individual to the company,	1128
corporation, or agency.	1129

The board may contract for coverage on the basis of part or	1130
all of the cost of the coverage to be paid from appropriate funds	1131
of the public employees retirement system. The cost paid from the	1132
funds of the system shall be included in the employer's	1133
contribution rate provided by sections 145.48 and 145.51 of the	1134
Revised Code. The board may by rule provide coverage to ineligible	1135
individuals if the coverage is provided at no cost to the	1136
retirement system. The board shall not pay or reimburse the cost	1137
for coverage under this section or section 145.325 of the Revised	1138
Code for any ineligible individual.	1139

The board may provide for self-insurance of risk or level of	1140
risk as set forth in the contract with the companies,	1141
corporations, or agencies, and may provide through the	1142
self-insurance method specific benefits as authorized by rules of	1143
the board.	1144

(C) The board shall, beginning the month following receipt of	1145
satisfactory evidence of the payment for coverage, pay monthly to	1146
each recipient of service retirement, or a disability or survivor	1147
benefit under the public employees retirement system who is	1148
eligible for medical insurance coverage under part B of Title	1149
XVIII of "The Social Security Act," 79 Stat. 301 (1965), 42	1150
U.S.C.A. 1395j, as amended, an amount ~~equal to the basic premium~~	1151
determined by the board for such coverage that is not less than	1152
ninety-six dollars and forty cents, except that the board shall	1153
make no such payment to any ineligible individual or pay an amount	1154
that exceeds the amount paid by the recipient for the coverage.	1155

At the request of the board, the recipient shall certify to	1156
the retirement system the amount paid by the recipient for	1157
coverage described in this division.	1158

(D) The board shall establish by rule requirements for the	1159
coordination of any coverage, payment, or benefit provided under	1160
this section or section 145.325 of the Revised Code with any	1161
similar coverage, payment, or benefit made available to the same	1162
individual by the Ohio police and fire pension fund, state	1163
teachers retirement system, school employees retirement system, or	1164
state highway patrol retirement system.	1165

(E) The board shall make all other necessary rules pursuant	1166
to the purpose and intent of this section.	1167

Sec. 742.45. (A) The board of trustees of the Ohio police	1168
and fire pension fund may enter into an agreement with insurance	1169
companies, health insuring corporations, or government agencies	1170
authorized to do business in the state for issuance of a policy or	1171
contract of health, medical, hospital, or surgical benefits, or	1172
any combination thereof, for those individuals receiving service	1173
or disability pensions or survivor benefits subscribing to the	1174
plan. Notwithstanding any other provision of this chapter, the	1175
policy or contract may also include coverage for any eligible	1176
individual's spouse and dependent children and for any of the	1177
eligible individual's sponsored dependents as the board considers	1178
appropriate.	1179

If all or any portion of the policy or contract premium is to	1180
be paid by any individual receiving a service, disability, or	1181
survivor pension or benefit, the individual shall, by written	1182
authorization, instruct the board to deduct from the individual's	1183
benefit the premium agreed to be paid by the individual to the	1184
company, corporation, or agency.	1185

The board may contract for coverage on the basis of part or	1186
all of the cost of the coverage to be paid from appropriate funds	1187
of the Ohio police and fire pension fund. The cost paid from the	1188
funds of the Ohio police and fire pension fund shall be included	1189
in the employer's contribution rates provided by sections 742.33	1190
and 742.34 of the Revised Code.	1191

The board may provide for self-insurance of risk or level of	1192
risk as set forth in the contract with the companies,	1193
corporations, or agencies, and may provide through the	1194
self-insurance method specific benefits as authorized by the rules	1195
of the board.	1196

(B) ~~The~~Except as otherwise provided in this division, the	1197
board shall, beginning the month following receipt of satisfactory	1198
evidence of the payment for coverage, pay monthly to each	1199
recipient of service, disability, or survivor benefits under the	1200
Ohio police and fire pension fund who is eligible for medical	1201
insurance coverage under part B of "The Social Security Amendments	1202
of 1965," 79 Stat. 301, 42 U.S.C.A. 1395j, as amended, an amount	1203
~~equal to the basic premiums~~specified by the board or determined	1204
pursuant to a formula established by the board that is not less	1205
than ninety-six dollars and forty cents, for such coverage, except	1206
that the board shall not pay an amount that exceeds the amount	1207
paid by the recipient for the coverage.	1208

The board shall pay not more than one monthly premium under	1209
this division to an eligible benefit recipient even if the	1210
recipient is receiving more than one monthly benefit from the	1211
fund. The board shall not pay a monthly premium under this	1212
division to an eligible benefit recipient who is receiving	1213
reimbursement for the premium from any other source.	1214

(C) The board shall establish by rule requirements for the	1215
coordination of any coverage, payment, or benefit provided under	1216
this section with any similar coverage, payment, or benefit made	1217
available to the same individual by the public employees	1218
retirement system, state teachers retirement system, school	1219
employees retirement system, or state highway patrol retirement	1220
system.	1221

(D) The board shall make all other necessary rules pursuant	1222
to the purpose and intent of this section.	1223

Section 2. That existing sections 145.01, 145.19, 145.191,	1224
145.33, 145.35, 145.49, 145.58, and 742.45 of the Revised Code are	1225
hereby repealed.	1226

Section 3. The intent of the General Assembly in the	1227
amendments made in this act to divisions (WW) and (YY) of section	1228
145.01 and division (E)(3)(m) of section 145.33 of the Revised	1229
Code is to provide that service as a municipal public safety	1230
director earned on or after the effective date of this section	1231
shall not be used in calculation of benefits under divisions (B)	1232
to (E) of section 145.33 of the Revised Code. The amendments are	1233
not intended to prohibit the use of such service for calculation	1234
of benefits under those divisions for service prior to the	1235
effective date of this section.	1236