Sub. S. B. No. 267 As Reported by the Senate Health, Human Services and Aging Committee

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

127th General Assembly

Regular Session

2007-2008

Sub. S. B. No. 267

Senator Faber

Cosponsor: Senator Seitz

A BILL

To amend sections 145.01, 145.19, 145.191, 145.33,

1

145.35, 145.47, and 145.49 and to enact section

2

145.2914 of the Revised Code regarding the Public

3

Employees Retirement System law enforcement

4

division and late penalties assessed by the

5

retirement system.

6

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

Section 1. That sections 145.01, 145.19, 145.191, 145.33,	7
145.35, 145.47, and 145.49 be amended and section 145.2914 of the	8
Revised Code be enacted to read as follows:	9

Sec. 145.01. As used in this chapter:

10

(A) "Public employee" means:

11

(1) Any person holding an office, not elective, under the	12
state or any county, township, municipal corporation, park	13
district, conservancy district, sanitary district, health	14
district, metropolitan housing authority, state retirement board,	15
Ohio historical society, public library, county law library, union	16
cemetery, joint hospital, institutional commissary, state	17
university, or board, bureau, commission, council, committee,	18
authority, or administrative body as the same are, or have been,	19
created by action of the general assembly or by the legislative	20
authority of any of the units of local government named in	21
division (A)(1) of this section, or employed and paid in whole or	22
in part by the state or any of the authorities named in division	23
(A)(1) of this section in any capacity not covered by section	24
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	25

(2) A person who is a member of the public employees	26
retirement system and who continues to perform the same or similar	27
duties under the direction of a contractor who has contracted to	28
take over what before the date of the contract was a publicly	29
operated function. The governmental unit with which the contract	30
has been made shall be deemed the employer for the purposes of	31
administering this chapter.	32

(3) Any person who is an employee of a public employer,	33
notwithstanding that the person's compensation for that employment	34
is derived from funds of a person or entity other than the	35
employer. Credit for such service shall be included as total	36
service credit, provided that the employee makes the payments	37
required by this chapter, and the employer makes the payments	38
required by sections 145.48 and 145.51 of the Revised Code.	39

(4) A person who elects in accordance with section 145.015 of	40
the Revised Code to remain a contributing member of the public	41
employees retirement system.	42

In all cases of doubt, the public employees retirement board	43
shall determine whether any person is a public employee, and its	44
decision is final.	45

(B) "Member" means any public employee, other than a public	46
employee excluded or exempted from membership in the retirement	47
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	48
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	49
retirant who becomes a member under division (C) of section 145.38	50
of the Revised Code. "Member" also includes a disability benefit	51
recipient.	52

(C) "Head of the department" means the elective or appointive	53
head of the several executive, judicial, and administrative	54
departments, institutions, boards, and commissions of the state	55
and local government as the same are created and defined by the	56
laws of this state or, in case of a charter government, by that	57
charter.	58

(D) "Employer" or "public employer" means the state or any	59
county, township, municipal corporation, park district,	60
conservancy district, sanitary district, health district,	61
metropolitan housing authority, state retirement board, Ohio	62
historical society, public library, county law library, union	63
cemetery, joint hospital, institutional commissary, state medical	64
college, state university, or board, bureau, commission, council,	65
committee, authority, or administrative body as the same are, or	66
have been, created by action of the general assembly or by the	67
legislative authority of any of the units of local government	68
named in this division not covered by section 742.01, 3307.01,	69
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	70
means the employer of any public employee.	71

(E) "Prior service" means all service as a public employee	72
rendered before January 1, 1935, and all service as an employee of	73
any employer who comes within the state teachers retirement system	74
or of the school employees retirement system or of any other	75
retirement system established under the laws of this state	76
rendered prior to January 1, 1935, provided that if the employee	77
claiming the service was employed in any capacity covered by that	78
other system after that other system was established, credit for	79
the service may be allowed by the public employees retirement	80
system only when the employee has made payment, to be computed on	81
the salary earned from the date of appointment to the date	82
membership was established in the public employees retirement	83
system, at the rate in effect at the time of payment, and the	84
employer has made payment of the corresponding full liability as	85
provided by section 145.44 of the Revised Code. "Prior service"	86
also means all service credited for active duty with the armed	87
forces of the United States as provided in section 145.30 of the	88
Revised Code.	89

If an employee who has been granted prior service credit by	90
the public employees retirement system for service rendered prior	91
to January 1, 1935, as an employee of a board of education	92
establishes, before retirement, one year or more of contributing	93
service in the state teachers retirement system or school	94
employees retirement system, then the prior service ceases to be	95
the liability of this system.	96

If the board determines that a position of any member in any	97
calendar year prior to January 1, 1935, was a part-time position,	98
the board shall determine what fractional part of a year's credit	99
shall be allowed by the following formula:	100

(1) When the member has been either elected or appointed to	101
an office the term of which was two or more years and for which an	102
annual salary is established, the fractional part of the year's	103
credit shall be computed as follows:	104

First, when the member's annual salary is one thousand	105
dollars or less, the service credit for each such calendar year	106
shall be forty per cent of a year.	107

Second, for each full one hundred dollars of annual salary	108
above one thousand dollars, the member's service credit for each	109
such calendar year shall be increased by two and one-half per	110
cent.	111

(2) When the member is paid on a per diem basis, the service	112
credit for any single year of the service shall be determined by	113
using the number of days of service for which the compensation was	114
received in any such year as a numerator and using two hundred	115
fifty days as a denominator.	116

(3) When the member is paid on an hourly basis, the service	117
credit for any single year of the service shall be determined by	118
using the number of hours of service for which the compensation	119
was received in any such year as a numerator and using two	120
thousand hours as a denominator.	121

(F) "Contributor" means any person who has an account in the	122
employees' savings fund created by section 145.23 of the Revised	123
Code. When used in the sections listed in division (B) of section	124
145.82 of the Revised Code, "contributor" includes any person	125
participating in a PERS defined contribution plan.	126

(G) "Beneficiary" or "beneficiaries" means the estate or a	127
person or persons who, as the result of the death of a member,	128
contributor, or retirant, qualify for or are receiving some right	129
or benefit under this chapter.	130

(H)(1) "Total service credit," except as provided in section	131
145.37 of the Revised Code, means all service credited to a member	132
of the retirement system since last becoming a member, including	133
restored service credit as provided by section 145.31 of the	134
Revised Code; credit purchased under sections 145.293 and 145.299	135
of the Revised Code; all the member's prior service credit; all	136
the member's military service credit computed as provided in this	137
chapter; all service credit established pursuant to section	138
145.297 of the Revised Code; and any other service credited under	139
this chapter. In addition, "total service credit" includes any	140
period, not in excess of three years, during which a member was	141
out of service and receiving benefits under Chapters 4121. and	142
4123. of the Revised Code. For the exclusive purpose of satisfying	143
the service credit requirement and of determining eligibility for	144
benefits under sections 145.32, 145.33, 145.331, 145.35, 145.36,	145
and 145.361 of the Revised Code, "five or more years of total	146
service credit" means sixty or more calendar months of	147
contributing service in this system.	148

(2) "One and one-half years of contributing service credit,"	149
as used in division (B) of section 145.45 of the Revised Code,	150
also means eighteen or more calendar months of employment by a	151
municipal corporation that formerly operated its own retirement	152
plan for its employees or a part of its employees, provided that	153
all employees of that municipal retirement plan who have eighteen	154
or more months of such employment, upon establishing membership in	155
the public employees retirement system, shall make a payment of	156
the contributions they would have paid had they been members of	157
this system for the eighteen months of employment preceding the	158
date membership was established. When that payment has been made	159
by all such employee members, a corresponding payment shall be	160
paid into the employers' accumulation fund by that municipal	161
corporation as the employer of the employees.	162

(3) Where a member also is a member of the state teachers	163
retirement system or the school employees retirement system, or	164
both, except in cases of retirement on a combined basis pursuant	165
to section 145.37 of the Revised Code or as provided in section	166
145.383 of the Revised Code, service credit for any period shall	167
be credited on the basis of the ratio that contributions to the	168
public employees retirement system bear to total contributions in	169
all state retirement systems.	170

(4) Not more than one year of credit may be given for any	171
period of twelve months.	172

(5) "Ohio service credit" means credit for service that was	173
rendered to the state or any of its political subdivisions or any	174
employer.	175

(I) "Regular interest" means interest at any rates for the	176
respective funds and accounts as the public employees retirement	177
board may determine from time to time.	178

(J) "Accumulated contributions" means the sum of all amounts	179
credited to a contributor's individual account in the employees'	180
savings fund together with any interest credited to the	181
contributor's account under section 145.471 or 145.472 of the	182
Revised Code.	183

(K)(1) "Final average salary" means the quotient obtained by	184
dividing by three the sum of the three full calendar years of	185
contributing service in which the member's earnable salary was	186
highest, except that if the member has a partial year of	187
contributing service in the year the member's employment	188
terminates and the member's earnable salary for the partial year	189
is higher than for any comparable period in the three years, the	190
member's earnable salary for the partial year shall be substituted	191
for the member's earnable salary for the comparable period during	192
the three years in which the member's earnable salary was lowest.	193

(2) If a member has less than three years of contributing	194
service, the member's final average salary shall be the member's	195
total earnable salary divided by the total number of years,	196
including any fraction of a year, of the member's contributing	197
service.	198

(3) For the purpose of calculating benefits payable to a	199
member qualifying for service credit under division (Z) of this	200
section, "final average salary" means the total earnable salary on	201
which contributions were made divided by the total number of years	202
during which contributions were made, including any fraction of a	203
year. If contributions were made for less than twelve months,	204
"final average salary" means the member's total earnable salary.	205

(L) "Annuity" means payments for life derived from	206
contributions made by a contributor and paid from the annuity and	207
pension reserve fund as provided in this chapter. All annuities	208
shall be paid in twelve equal monthly installments.	209

(M) "Annuity reserve" means the present value, computed upon	210
the basis of the mortality and other tables adopted by the board,	211
of all payments to be made on account of any annuity, or benefit	212
in lieu of any annuity, granted to a retirant as provided in this	213
chapter.	214

(N)(1) "Disability retirement" means retirement as provided	215
in section 145.36 of the Revised Code.	216

(2) "Disability allowance" means an allowance paid on account	217
of disability under section 145.361 of the Revised Code.	218

(3) "Disability benefit" means a benefit paid as disability	219
retirement under section 145.36 of the Revised Code, as a	220
disability allowance under section 145.361 of the Revised Code, or	221
as a disability benefit under section 145.37 of the Revised Code.	222

(4) "Disability benefit recipient" means a member who is	223
receiving a disability benefit.	224

(O) "Age and service retirement" means retirement as provided	225
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of	226
the Revised Code.	227

(P) "Pensions" means annual payments for life derived from	228
contributions made by the employer that at the time of retirement	229
are credited into the annuity and pension reserve fund from the	230
employers' accumulation fund and paid from the annuity and pension	231
reserve fund as provided in this chapter. All pensions shall be	232
paid in twelve equal monthly installments.	233

(Q) "Retirement allowance" means the pension plus that	234
portion of the benefit derived from contributions made by the	235
member.	236

(R)(1) Except as otherwise provided in division (R) of this	237
section, "earnable salary" means all salary, wages, and other	238
earnings paid to a contributor by reason of employment in a	239
position covered by the retirement system. The salary, wages, and	240
other earnings shall be determined prior to determination of the	241
amount required to be contributed to the employees' savings fund	242
under section 145.47 of the Revised Code and without regard to	243
whether any of the salary, wages, or other earnings are treated as	244
deferred income for federal income tax purposes. "Earnable salary"	245
includes the following:	246

(a) Payments made by the employer in lieu of salary, wages,	247
or other earnings for sick leave, personal leave, or vacation used	248
by the contributor;	249

(b) Payments made by the employer for the conversion of sick	250
leave, personal leave, and vacation leave accrued, but not used if	251
the payment is made during the year in which the leave is accrued,	252
except that payments made pursuant to section 124.383 or 124.386	253
of the Revised Code are not earnable salary;	254

(c) Allowances paid by the employer for full maintenance,	255
consisting of housing, laundry, and meals, as certified to the	256
retirement board by the employer or the head of the department	257
that employs the contributor;	258

(d) Fees and commissions paid under section 507.09 of the	259
Revised Code;	260

(e) Payments that are made under a disability leave program	261
sponsored by the employer and for which the employer is required	262
by section 145.296 of the Revised Code to make periodic employer	263
and employee contributions;	264

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	265
this section.	266

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

267

(a) Fees and commissions, other than those paid under section	268
507.09 of the Revised Code, paid as sole compensation for personal	269
services and fees and commissions for special services over and	270
above services for which the contributor receives a salary;	271

(b) Amounts paid by the employer to provide life insurance,	272
sickness, accident, endowment, health, medical, hospital, dental,	273
or surgical coverage, or other insurance for the contributor or	274
the contributor's family, or amounts paid by the employer to the	275
contributor in lieu of providing the insurance;	276

(c) Incidental benefits, including lodging, food, laundry,	277
parking, or services furnished by the employer, or use of the	278
employer's property or equipment, or amounts paid by the employer	279
to the contributor in lieu of providing the incidental benefits;	280

(d) Reimbursement for job-related expenses authorized by the	281
employer, including moving and travel expenses and expenses	282
related to professional development;	283

(e) Payments for accrued but unused sick leave, personal	284
leave, or vacation that are made at any time other than in the	285
year in which the sick leave, personal leave, or vacation was	286
accrued;	287

(f) Payments made to or on behalf of a contributor that are	288
in excess of the annual compensation that may be taken into	289
account by the retirement system under division (a)(17) of section	290
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	291
U.S.C.A. 401(a)(17), as amended;	292

(g) Payments made under division (B), (C), or (E) of section	293
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	294
No. 3 of the 119th general assembly, Section 3 of Amended	295
Substitute Senate Bill No. 164 of the 124th general assembly, or	296
Amended Substitute House Bill No. 405 of the 124th general	297
assembly;	298

(h) Anything of value received by the contributor that is	299
based on or attributable to retirement or an agreement to retire,	300
except that payments made on or before January 1, 1989, that are	301
based on or attributable to an agreement to retire shall be	302
included in earnable salary if both of the following apply:	303

(i) The payments are made in accordance with contract	304
provisions that were in effect prior to January 1, 1986;	305

(ii) The employer pays the retirement system an amount	306
specified by the retirement board equal to the additional	307
liability resulting from the payments.	308

(3) The retirement board shall determine by rule whether any	309
compensation not enumerated in division (R) of this section is	310
earnable salary, and its decision shall be final.	311

(S) "Pension reserve" means the present value, computed upon	312
the basis of the mortality and other tables adopted by the board,	313
of all payments to be made on account of any retirement allowance	314
or benefit in lieu of any retirement allowance, granted to a	315
member or beneficiary under this chapter.	316

(T)(1) "Contributing service" means all service credited to a	317
member of the system since January 1, 1935, for which	318
contributions are made as required by sections 145.47, 145.48, and	319
145.483 of the Revised Code. In any year subsequent to 1934,	320
credit for any service shall be allowed by the following formula:	321

(a) For each month for which the member's earnable salary is	322
two hundred fifty dollars or more, allow one month's credit.	323

(b) For each month for which the member's earnable salary is	324
less than two hundred fifty dollars, allow a fraction of a month's	325
credit. The numerator of this fraction shall be the earnable	326
salary during the month, and the denominator shall be two hundred	327
fifty dollars, except that if the member's annual earnable salary	328
is less than six hundred dollars, the member's credit shall not be	329
reduced below twenty per cent of a year for a calendar year of	330
employment during which the member worked each month. Division	331
(T)(1)(b) of this section shall not reduce any credit earned	332
before January 1, 1985.	333

(2) Notwithstanding division (T)(1) of this section, an	334
elected official who prior to January 1, 1980, was granted a full	335
year of credit for each year of service as an elected official	336
shall be considered to have earned a full year of credit for each	337
year of service regardless of whether the service was full-time or	338
part-time. The public employees retirement board has no authority	339
to reduce the credit.	340

(U) "State retirement board" means the public employees	341
retirement board, the school employees retirement board, or the	342
state teachers retirement board.	343

(V) "Retirant" means any former member who retires and is	344
receiving a monthly allowance as provided in sections 145.32,	345
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	346

(W) "Employer contribution" means the amount paid by an	347
employer as determined under section 145.48 of the Revised Code.	348

(X) "Public service terminates" means the last day for which	349
a public employee is compensated for services performed for an	350
employer or the date of the employee's death, whichever occurs	351
first.	352

(Y) When a member has been elected or appointed to an office,	353
the term of which is two or more years, for which an annual salary	354
is established, and in the event that the salary of the office is	355
increased and the member is denied the additional salary by reason	356
of any constitutional provision prohibiting an increase in salary	357
during a term of office, the member may elect to have the amount	358
of the member's contributions calculated upon the basis of the	359
increased salary for the office. At the member's request, the	360
board shall compute the total additional amount the member would	361
have contributed, or the amount by which each of the member's	362
contributions would have increased, had the member received the	363
increased salary for the office the member holds. If the member	364
elects to have the amount by which the member's contribution would	365
have increased withheld from the member's salary, the member shall	366
notify the employer, and the employer shall make the withholding	367
and transmit it to the retirement system. A member who has not	368
elected to have that amount withheld may elect at any time to make	369
a payment to the retirement system equal to the additional amount	370
the member's contribution would have increased, plus interest on	371
that contribution, compounded annually at a rate established by	372
the board and computed from the date on which the last	373
contribution would have been withheld from the member's salary to	374
the date of payment. A member may make a payment for part of the	375
period for which the increased contribution was not withheld, in	376
which case the interest shall be computed from the date the last	377
contribution would have been withheld for the period for which the	378
payment is made. Upon the payment of the increased contributions	379
as provided in this division, the increased annual salary as	380
provided by law for the office for the period for which the member	381
paid increased contributions thereon shall be used in determining	382
the member's earnable salary for the purpose of computing the	383
member's final average salary.	384

(Z) "Five years of service credit," for the exclusive purpose	385
of satisfying the service credit requirements and of determining	386
eligibility for benefits under section 145.33 of the Revised Code,	387
means employment covered under this chapter or under a former	388
retirement plan operated, recognized, or endorsed by the employer	389
prior to coverage under this chapter or under a combination of the	390
coverage.	391

(AA) "Deputy sheriff" means any person who is commissioned	392
and employed as a full-time peace officer by the sheriff of any	393
county, and has been so employed since on or before December 31,	394
1965~~, and whose primary duties are to preserve the peace, to~~	395
~~protect life and property, and to enforce the laws of this state~~;	396
any person who is or has been commissioned and employed as a peace	397
officer by the sheriff of any county since January 1, 1966, and	398
who has received a certificate attesting to the person's	399
satisfactory completion of the peace officer training school as	400
required by section 109.77 of the Revised Code ~~and whose primary~~	401
~~duties are to preserve the peace, protect life and property, and~~	402
~~enforce the laws of this state~~; or any person deputized by the	403
sheriff of any county and employed pursuant to section 2301.12 of	404
the Revised Code as a criminal bailiff or court constable who has	405
received a certificate attesting to the person's satisfactory	406
completion of the peace officer training school as required by	407
section 109.77 of the Revised Code ~~and whose primary duties are to~~	408
~~preserve the peace, protect life and property, and enforce the~~	409
~~laws of this state~~.	410

(BB) "Township constable or police officer in a township	411
police department or district" means any person who is	412
commissioned and employed as a full-time peace officer pursuant to	413
Chapter 505. or 509. of the Revised Code, who has received a	414
certificate attesting to the person's satisfactory completion of	415
the peace officer training school as required by section 109.77 of	416
the Revised Code~~, and whose primary duties are to preserve the~~	417
~~peace, protect life and property, and enforce the laws of this~~	418
~~state~~.	419

(CC) "Drug agent" means any person who is either of the	420
following:	421

(1) Employed ~~full-time~~full time as a narcotics agent by a	422
county narcotics agency created pursuant to section 307.15 of the	423
Revised Code and has received a certificate attesting to the	424
satisfactory completion of the peace officer training school as	425
required by section 109.77 of the Revised Code;	426

(2) Employed ~~full-time~~full time as an undercover drug agent	427
as defined in section 109.79 of the Revised Code and is in	428
compliance with section 109.77 of the Revised Code.	429

(DD) "Department of public safety enforcement agent" means a	430
full-time employee of the department of public safety who is	431
designated under section 5502.14 of the Revised Code as an	432
enforcement agent and who is in compliance with section 109.77 of	433
the Revised Code.	434

(EE) "Natural resources law enforcement staff officer" means	435
a full-time employee of the department of natural resources who is	436
designated a natural resources law enforcement staff officer under	437
section 1501.013 of the Revised Code and is in compliance with	438
section 109.77 of the Revised Code.	439

(FF) "Park officer" means a full-time employee of the	440
department of natural resources who is designated a park officer	441
under section 1541.10 of the Revised Code and is in compliance	442
with section 109.77 of the Revised Code.	443

(GG) "Forest officer" means a full-time employee of the	444
department of natural resources who is designated a forest officer	445
under section 1503.29 of the Revised Code and is in compliance	446
with section 109.77 of the Revised Code.	447

(HH) "Preserve officer" means a full-time employee of the	448
department of natural resources who is designated a preserve	449
officer under section 1517.10 of the Revised Code and is in	450
compliance with section 109.77 of the Revised Code.	451

(II) "Wildlife officer" means a full-time employee of the	452
department of natural resources who is designated a wildlife	453
officer under section 1531.13 of the Revised Code and is in	454
compliance with section 109.77 of the Revised Code.	455

(JJ) "State watercraft officer" means a full-time employee of	456
the department of natural resources who is designated a state	457
watercraft officer under section 1547.521 of the Revised Code and	458
is in compliance with section 109.77 of the Revised Code.	459

(KK) "Park district police officer" means a full-time	460
employee of a park district who is designated pursuant to section	461
511.232 or 1545.13 of the Revised Code and is in compliance with	462
section 109.77 of the Revised Code.	463

(LL) "Conservancy district officer" means a full-time	464
employee of a conservancy district who is designated pursuant to	465
section 6101.75 of the Revised Code and is in compliance with	466
section 109.77 of the Revised Code.	467

(MM) "Municipal police officer" means a member of the	468
organized police department of a municipal corporation who is	469
employed ~~full-time~~full time, is in compliance with section 109.77	470
of the Revised Code, and is not a member of the Ohio police and	471
fire pension fund.	472

(NN) "Veterans' home police officer" means any person who is	473
employed at a veterans' home as a police officer pursuant to	474
section 5907.02 of the Revised Code and is in compliance with	475
section 109.77 of the Revised Code.	476

(OO) "Special police officer for a mental health institution"	477
means any person who is designated as such pursuant to section	478
5119.14 of the Revised Code and is in compliance with section	479
109.77 of the Revised Code.	480

(PP) "Special police officer for an institution for the	481
mentally retarded and developmentally disabled" means any person	482
who is designated as such pursuant to section 5123.13 of the	483
Revised Code and is in compliance with section 109.77 of the	484
Revised Code.	485

(QQ) "State university law enforcement officer" means any	486
person who is employed ~~full-time~~full time as a state university	487
law enforcement officer pursuant to section 3345.04 of the Revised	488
Code and who is in compliance with section 109.77 of the Revised	489
Code.	490

(RR) "House sergeant at arms" means any person appointed by	491
the speaker of the house of representatives under division (B)(1)	492
of section 101.311 of the Revised Code who has arrest authority	493
under division (E)(1) of that section.	494

(SS) "Assistant house sergeant at arms" means any person	495
appointed by the house sergeant at arms under division (C)(1) of	496
section 101.311 of the Revised Code.	497

(TT) "Regional transit authority police officer" means a	498
person who is employed full time as a regional transit authority	499
police officer under division (Y) of section 306.35 of the Revised	500
Code and is in compliance with section 109.77 of the Revised Code.	501

(UU) "State highway patrol police officer" means a special	502
police officer employed full time and designated by the	503
superintendent of the state highway patrol pursuant to section	504
5503.09 of the Revised Code or a person serving full time as a	505
special police officer pursuant to that section on a permanent	506
basis on October 21, 1997, who is in compliance with section	507
109.77 of the Revised Code.	508

(VV) "Municipal public safety director" means a person who	509
serves ~~full-time~~full time as the public safety director of a	510
municipal corporation with the duty of directing the activities of	511
the municipal corporation's police department and fire department.	512

(WW) Notwithstanding section 2901.01 of the Revised Code,	513
"PERS law enforcement officer" means a sheriff,or any of the	514
following whose primary duties are to preserve the peace, protect	515
life and property, and enforce the laws of this state: a deputy	516
sheriff, township constable or police officer in a township police	517
department or district, drug agent, municipal public safety	518
director, department of public safety enforcement agent, natural	519
resources law enforcement staff officer, park officer, forest	520
officer, preserve officer, wildlife officer, state watercraft	521
officer, park district police officer, conservancy district	522
officer, veterans' home police officer, special police officer for	523
a mental health institution, special police officer for an	524
institution for the mentally retarded and developmentally	525
disabled, state university law enforcement officer, municipal	526
police officer, house sergeant at arms, assistant house sergeant	527
at arms, regional transit authority police officer, or state	528
highway patrol police officer.	529

(XX) "Hamilton county municipal court bailiff" means a person	530
appointed by the clerk of courts of the Hamilton county municipal	531
court under division (A)(3) of section 1901.32 of the Revised Code	532
who is employed full time as a bailiff or deputy bailiff, who has	533
received a certificate attesting to the person's satisfactory	534
completion of the peace officer basic training described in	535
division (D)(1) of section 109.77 of the Revised Code~~, and whose~~	536
~~primary duties are to preserve the peace, to protect life and~~	537
~~property, and to enforce the laws of this state~~.	538

(YY) "PERS public safety officer" means a Hamilton county	539
municipal court bailiff, or any of the following whose primary	540
duties are other than to preserve the peace, protect life and	541
property, and enforce the laws of this state: a deputy sheriff,	542
township constable or police officer in a township police	543
department or district, drug agent, department of public safety	544
enforcement agent, natural resources law enforcement staff	545
officer, park officer, forest officer, preserve officer, wildlife	546
officer, state watercraft officer, park district police officer,	547
conservancy district officer, veterans' home police officer,	548
special police officer for a mental health institution, special	549
police officer for an institution for the mentally retarded and	550
developmentally disabled, state university law enforcement	551
officer, municipal police officer, house sergeant at arms,	552
assistant house sergeant at arms, regional transit authority	553
police officer, or state highway patrol police officer.	554

(ZZ) "Fiduciary" means a person who does any of the	555
following:	556

(1) Exercises any discretionary authority or control with	557
respect to the management of the system or with respect to the	558
management or disposition of its assets;	559

(2) Renders investment advice for a fee, direct or indirect,	560
with respect to money or property of the system;	561

(3) Has any discretionary authority or responsibility in the	562
administration of the system.	563

~~(ZZ)~~(AAA) "Actuary" means an individual who satisfies all of	564
the following requirements:	565

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

566

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

567

(3) Has a minimum of five years' experience in providing	568
actuarial services to public retirement plans.	569

~~(AAA)~~(BBB) "PERS defined benefit plan" means the plan	570
described in sections 145.201 to 145.79 of the Revised Code.	571

~~(BBB)~~(CCC) "PERS defined contribution plans" means the plan	572
or plans established under section 145.81 of the Revised Code.	573

Sec. 145.19. (A) Except as provided in division (D) of this	574
section, an individual who becomes employed in a position subject	575
to this chapter on or after the date on which the public employees	576
retirement board first establishes a PERS defined contribution	577
plan shall make an election under this section. Not later than one	578
hundred eighty days after the date on which employment begins, the	579
individual shall elect to participate either in the PERS defined	580
benefit plan or a PERS defined contribution plan. If a form	581
evidencing an election under this section is not received by the	582
public employees retirement system not later than the last day of	583
the one-hundred-eighty-day period, the individual is deemed to	584
have elected to participate in the PERS defined benefit plan.	585

(B) An election under this section shall be made in writing	586
on a form provided by the system and filed with the system.	587

(C) An election under this section shall take effect on the	588
date employment began and, except as provided in section 145.814	589
of the Revised Code or rules governing the PERS defined benefit	590
plan, is irrevocable on receipt by the system.	591

(D) An individual is ineligible to make an election under	592
this section if one of the following applies:	593

(1) At the time employment begins, the individual is a PERS	594
retirant or other system retirant, as those terms are defined in	595
section 145.38 of the Revised Code, or is retired under section	596
145.383 of the Revised Code.	597

(2) The individual is participating or has elected to	598
participate in an alternative retirement plan under section	599
3305.05 or 3305.051 of the Revised Code and the employment is in a	600
position that is subject to division (C)(4) of section 3305.05 or	601
division (F) of section 3305.051 of the Revised Code.	602

(3) The individual is a contributor who, as of the last day	603
of the month prior to the date employment begins, has five or more	604
years of total service credit.	605

(4) The individual is employed in a position covered under	606
this chapter to which section 145.193 of the Revised Code applies.	607

(5) The individual is a PERS law enforcement officer or	608
~~Hamilton county municipal court bailiff~~PERS public safety	609
officer.	610

Sec. 145.191. (A) Except as provided in division (E) of this	611
section, a public employees retirement system member or	612
contributor who, as of the last day of the month immediately	613
preceding the date on which the public employees retirement board	614
first establishes a PERS defined contribution plan, has less than	615
five years of total service credit is eligible to make an election	616
under this section. A member or contributor who is employed in	617
more than one position subject to this chapter is eligible to make	618
only one election. The election applies to all positions subject	619
to this chapter.	620

Not later than one hundred eighty days after the day the	621
board first establishes a PERS defined contribution plan, an	622
eligible member or contributor may elect to participate in a PERS	623
defined contribution plan. If a form evidencing an election is not	624
received by the system not later than the last day of the	625
one-hundred-eighty-day period, a member or contributor to whom	626
this section applies is deemed to have elected to continue	627
participating in the PERS defined benefit plan.	628

(B) An election under this section shall be made in writing	629
on a form provided by the system and filed with the system.	630

(C) On receipt of an election under this section, the system	631
shall do both of the following:	632

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

633

(a) Any employer contributions attributable to the member for	634
the period beginning on the day the board first established a PERS	635
defined contribution plan;	636

(b) All accumulated contributions attributable to the member	637
or contributor.	638

(2) Cancel all service credit and eligibility for any	639
payment, benefit, or right under the PERS defined benefit plan.	640

(D) An election under this section is effective as of the	641
date the board first established a PERS defined contribution plan	642
and, except as provided in section 145.814 of the Revised Code or	643
rules governing the PERS defined benefit plan, is irrevocable on	644
receipt by the system.	645

(E) An election may not be made under this section by a	646
member or contributor who is either of the following:	647

(1) A PERS retirant who is a member under division (C) of	648
section 145.38 of the Revised Code;	649

(2) A PERS law enforcement officer or a ~~Hamilton county~~	650
~~municipal court bailiff~~PERS public safety officer.	651

Sec. 145.2914. (A) The public employees retirement board may	652
adopt rules in accordance with section 145.09 of the Revised Code	653
to establish a program under which service credit earned under	654
division (A) or (B)(2)(b) of section 145.33 of the Revised Code is	655
treated as service credit earned under division (B)(2)(a) of that	656
section if the member makes payment to the public employees	657
retirement system in accordance with the rules.	658

(B) If the board adopts rules under division (A) of this	659
section, all of the following apply:	660

(1) For each year or portion of a year of service credit	661
earned under division (A) or (B)(2)(b) of section 145.33 of the	662
Revised Code that is to be treated as service credit earned under	663
division (B)(2)(a) of that section, the member shall pay to the	664
retirement system an amount specified by the retirement board	665
that is not less than one hundred per cent of the additional	666
liability resulting from the purchase of that year, or portion of	667
a year, of service.	668

(2) The number of years of service credit earned under	669
division (A) or (B)(2)(b) of section 145.33 of the Revised Code	670
that may be treated as service credit earned under division	671
(B)(2)(a) of that section shall not exceed five.	672

(3) Any amounts paid under this section shall be credited to	673
the employees' savings fund.	674

(4) The amounts paid by the member under this section are	675
subject to the limits established by division (n) of section 415	676
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	677
415(n), as amended.	678

(C) A member may make payments authorized by this section if	679
the member is eligible to retire under this chapter or will	680
become eligible to retire as a result of the payment. The member	681
shall agree to retire not later than ninety days after receiving	682
notice of the additional liability specified under division	683
(B)(1) of this section. Payment shall be made in full for any	684
credit earned under division (A) or (B)(2)(b) of section 145.33	685
of the Revised Code that is to be treated as service credit	686
earned under division (B)(2)(a) of that section, but the member	687
may choose to make payment for only part of the credit for which	688
the member is eligible.	689

(D) If the member does not retire not later than ninety days	690
after making the payment authorized by this section, the system	691
shall refund the payment and shall not treat the credit for which	692
payment was made as service credit earned under division	693
(B)(2)(a) of section 145.33 of the Revised Code.	694

(E) The board's rules may deal with any other matter	695
necessary to implement this section.	696

Sec. 145.33. (A) Except as provided in division (B) or (C)	697
of this section, a member with at least five years of total	698
service credit who has attained age sixty, or who has thirty years	699
of total Ohio service credit, may apply for age and service	700
retirement, which shall consist of:	701

(1) An annuity having a reserve equal to the amount of the	702
member's accumulated contributions at that time;	703

(2) A pension equal to the annuity provided by division	704
(A)(1) of this section;	705

(3) An additional pension, if the member can qualify for	706
prior service, equal to forty dollars multiplied by the number of	707
years, and fraction thereof, of such prior and military service	708
credit;	709

(4) A basic annual pension equal to one hundred eighty	710
dollars if the member has ten or more years of total service	711
credit as of October 1, 1956, except that the basic annual pension	712
shall not exceed the sum of the annual benefits provided by	713
divisions (A)(1), (2), and (3) of this section.	714

(5) When a member retires on age and service retirement, the	715
member's total annual single lifetime allowance, including the	716
allowances provided in divisions (A)(1), (2), (3), and (4) of this	717
section, shall be not less than a base amount adjusted in	718
accordance with division (A)(5) of this section and determined by	719
multiplying the member's total service credit by the greater of	720
the following:	721

(a) Eighty-six dollars;

722

(b) Two and two-tenths per cent of the member's final average	723
salary for each of the first thirty years of service plus two and	724
one-half per cent of the member's final average salary for each	725
subsequent year of service.	726

The allowance shall be adjusted by the factors of attained	727
age or years of service to provide the greater amount as	728
determined by the following schedule:	729

		Years of		Percentage		730
Attained	or	Total Service		of		731
Birthday		Credit		Base Amount		732

58		25		75		733
59		26		80		734
60		27		85		735
61				88		736
		28		90		737
62				91		738
63				94		739
		29		95		740
64				97		741
65		30 or more		100		742

Members shall vest the right to a benefit in accordance with	743
the following schedule, based on the member's attained age by	744
September 1, 1976:	745

			Percentage		746
	Attained		of		747
	Birthday		Base Amount		748
	66		102		749
	67		104		750
	68		106		751
	69		108		752
	70 or more		110		753

(6) The total annual single lifetime allowance that a member	754
shall receive under division (A)(5) of this section shall not	755
exceed the lesser of one hundred per cent of the member's final	756
average salary or the limit established by section 415 of the	757
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	758
as amended.	759

(B)(1) For the purposes of divisions (B) to (G) of this	760
section, "total service credit as a PERS law enforcement officer"	761
and "total service credit as a ~~Hamilton county municipal court~~	762
~~bailiff~~PERS public safety officer" include credit for military	763
service to the extent permitted by division (E)(2) of this section	764
and credit for service as a police officer or state highway patrol	765
trooper to the extent permitted by divisions (E)(3) and (4) of	766
this section.	767

(2) A member who meets the conditions in division (B)(2)(a),	768
(b), or (c)~~, or (d)~~ of this section may apply for an age and	769
service retirement benefit under this division:	770

(a) The member has attained age forty-eight and has at least	771
twenty-five years of total service credit as a PERS law	772
enforcement officer ~~whose primary duties were to preserve the~~	773
~~peace, protect life and property, and enforce the laws in the~~	774
~~member's jurisdiction~~;	775

(b) The member has attained age fifty-two, and has at least	776
twenty-five years of total service credit as a PERS ~~law~~	777
~~enforcement~~public safety officer~~, but the member's primary duties~~	778
~~were other than to preserve the peace, protect life and property,~~	779
~~and enforce the laws in the member's jurisdiction~~or has service	780
as a PERS public safety officer and service as a PERS law	781
enforcement officer that when combined equal at least twenty-five	782
years of total service credit;	783

(c) ~~The member has attained age fifty-two and has at least~~	784
~~twenty-five years of total service as a Hamilton county municipal~~	785
~~court bailiff;~~	786

~~(d)~~ The member has attained age sixty-two and has at least	787
fifteen years of total service credit as either of the following:	788

(i) A PERS law enforcement officer;

789

(ii) A ~~Hamilton county municipal court bailiff~~PERS public	790
safety officer.	791

(3) A benefit paid under division (B)(2) of this section	792
shall consist of an annual single lifetime allowance equal to the	793
sum of two and one-half per cent of the member's final average	794
salary multiplied by the first twenty-five years of the member's	795
total service plus two and one-tenth per cent of the member's	796
final average salary multiplied by the number of years of the	797
member's total service credit in excess of twenty-five years.	798

(4) A member with at least fifteen years of total service	799
credit as a PERS law enforcement officer or ~~Hamilton county~~	800
~~municipal court bailiff~~PERS public safety officer who voluntarily	801
resigns or is discharged for any reason except death, dishonesty,	802
cowardice, intemperate habits, or conviction of a felony may apply	803
for an age and service retirement benefit, which shall consist of	804
an annual single lifetime allowance equal to one and one-half per	805
cent of the member's final average salary multiplied by the number	806
of years of the member's total service credit. The allowance shall	807
commence on the first day of the calendar month following the	808
month in which the application is filed with the public employees	809
retirement board on or after the attainment by the applicant of	810
age fifty-two.	811

(C)(1) A member with at least twenty-five years of total	812
service credit who would be eligible to retire under division	813
(B)(2)(b) ~~or (c)~~ of this section had the member attained age	814
fifty-two and who voluntarily resigns or is discharged for any	815
reason except death, dishonesty, cowardice, intemperate habits, or	816
conviction of a felony, on or after the date of attaining	817
forty-eight years of age, but before the date of attaining	818
fifty-two years of age, may elect to receive a reduced benefit as	819
determined by the following schedule:	820

Attained Age

Reduced Benefit

821

	48		75% of the benefit payable under		822
			division (B)(3) of this section		823
	49		80% of the benefit payable under		824
			division (B)(3) of this section		825
	50		86% of the benefit payable under		826
			division (B)(3) of this section		827
	51		93% of the benefit payable under		828
			division (B)(3) of this section		829

(2) If a member elects to receive a reduced benefit after	830
attaining age forty-eight the reduced benefit is payable from the	831
later of the date of the member's most recent birthday or the date	832
the member becomes eligible to receive the reduced benefit.	833

(3) Once a member elects to receive a reduced benefit	834
determined by the schedule in division (C)(1) of this section and	835
has received a payment, the member may not reelect to change that	836
election.	837

(4) If a member who has resigned or been discharged has left	838
on deposit the member's accumulated contributions in the	839
employees' savings fund and has not elected to receive a reduced	840
benefit determined by the schedule in division (C)(1) of this	841
section, upon attaining fifty-two years of age, the member shall	842
be entitled to receive a benefit computed and paid under division	843
(B)(3) of this section.	844

(D) A benefit paid under division (B) or (C) of this section	845
shall not exceed the lesser of ninety per cent of the member's	846
final average salary or the limit established by section 415 of	847
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	848
415, as amended.	849

(E)(1) A member with service credit as a PERS law enforcement	850
officer or a ~~Hamilton county municipal court bailiff~~PERS public	851
safety officer and other service credit under this chapter may	852
elect one of the following:	853

(a) To have all the member's service credit under this	854
chapter, including credit for service as a PERS law enforcement	855
officer or ~~Hamilton county municipal court bailiff~~PERS public	856
safety officer, used in calculating a retirement allowance under	857
division (A) of this section if the member qualifies for an	858
allowance under that division;	859

(b) If the member qualifies for an allowance under division	860
(B)(2)(a) of this section, to have the member's service credit as	861
a PERS law enforcement officer used in calculating a benefit under	862
that division and the member's credit for all service other than	863
PERS law enforcement service used in calculating a benefit	864
consisting of a single life annuity having a reserve equal to the	865
amount of the member's accumulated contributions for all service	866
other than PERS law enforcement service and an equal amount of	867
employer contributions.	868

(c) If the member qualifies for an allowance under division	869
(B)(2)(b) or (c), (B)(4), or (C) of this section, to have the	870
member's service credit as a PERS law enforcement officer or	871
~~Hamilton county municipal court bailiff~~PERS public safety officer	872
used in calculating a benefit under the appropriate division and	873
the member's credit for all service other than PERS law	874
enforcement service or service as a ~~Hamilton county municipal~~	875
~~court bailiff~~PERS public safety officer under this chapter used	876
in calculating a benefit consisting of a single life annuity	877
having a reserve equal to the amount of the member's accumulated	878
contributions for all service other than PERS law enforcement	879
service or PERS public safety officer service and an equal amount	880
of the employer's contributions.	881

(2) Notwithstanding sections 145.01 and 145.30 of the Revised	882
Code, no more than four years of military service credit granted	883
under section 145.30 of the Revised Code and five years of	884
military service credit purchased under section 145.301 or 145.302	885
of the Revised Code shall be used in calculating service as a PERS	886
law enforcement officer or ~~Hamilton county municipal court bailiff~~	887
PERS public safety officer or the total service credit of that	888
person.	889

(3) Only credit for the member's service as a PERS law	890
enforcement officer, PERS public safety officer, or service credit	891
obtained as a police officer or state highway patrol trooper shall	892
be used in computing the benefit of a member who qualifies for a	893
benefit under division (B)~~(2)(a), (b), or (d)(ii) or (4)~~ or	894
~~division~~ (C) of this section for the following:	895

(a) Any person who originally is commissioned and employed as	896
a deputy sheriff by the sheriff of any county, or who originally	897
is elected sheriff, on or after January 1, 1975;	898

(b) Any deputy sheriff who originally is employed as a	899
criminal bailiff or court constable on or after April 16, 1993;	900

(c) Any person who originally is appointed as a township	901
constable or police officer in a township police department or	902
district on or after January 1, 1981;	903

(d) Any person who originally is employed as a county	904
narcotics agent on or after September 26, 1984;	905

(e) Any person who originally is employed as an undercover	906
drug agent as defined in section 109.79 of the Revised Code,	907
department of public safety enforcement agent who prior to June	908
30, 1999, was a liquor control investigator, park officer, forest	909
officer, wildlife officer, state watercraft officer, park district	910
police officer, conservancy district officer, veterans' home	911
police officer, special police officer for a mental health	912
institution, special police officer for an institution for the	913
mentally retarded and developmentally disabled, or municipal	914
police officer on or after December 15, 1988;	915

(f) Any person who originally is employed as a state	916
university law enforcement officer on or after November 6, 1996;	917

(g) Any person who is originally employed as a state	918
university law enforcement officer by the university of Akron on	919
or after September 16, 1998;	920

(h) Any person who originally is employed as a preserve	921
officer on or after March 18, 1999;	922

(i) Any person who originally is employed as a natural	923
resources law enforcement staff officer on or after March 18,	924
1999;	925

(j) Any person who is originally employed as a department of	926
public safety enforcement agent on or after June 30, 1999;	927

(k) Any person who is originally employed as a house sergeant	928
at arms or assistant house sergeant at arms on or after September	929
5, 2001;	930

(l) Any person who is originally appointed as a regional	931
transit authority police officer or state highway patrol police	932
officer on or after February 1, 2002;	933

(m) Any person who is originally employed as a municipal	934
public safety director on or after ~~the effective date of this~~	935
~~amendment~~September 29, 2005.	936

(4) Only credit for a member's service as a ~~Hamilton county~~	937
~~municipal court bailiff~~PERS public safety officer or service	938
credit obtained as a PERS law enforcement officer, police officer,	939
or state highway patrol trooper shall be used in computing the	940
benefit of a member who qualifies for a benefit under division	941
(B)(2)(b) or (c) ~~or (d)~~(ii) or (4) or division (C) of this section	942
for any person who originally is employed as a Hamilton county	943
municipal court bailiff on or after November 6, 1996.	944

(F) Retirement allowances determined under this section shall	945
be paid as provided in section 145.46 of the Revised Code.	946

(G) For the purposes of this section, service prior to June	947
30, 1999, as a food stamp trafficking agent under former section	948
5502.14 of the Revised Code shall be considered service as a law	949
enforcement officer.	950

Sec. 145.35. (A) As used in this section, "on-duty illness	951
or injury" means an illness or injury that occurred during or	952
resulted from performance of duties under the direct supervision	953
of a member's appointing authority.	954

(B) The public employees retirement system shall provide	955
disability coverage to each member who has at least five years of	956
total service credit and disability coverage for on-duty illness	957
or injury to each member who is a PERS law enforcement officer or	958
~~Hamilton county municipal court bailiff~~PERS public safety	959
officer, regardless of length of service.	960

Not later than October 16, 1992, the public employees	961
retirement board shall give each person who is a member on July	962
29, 1992, the opportunity to elect disability coverage either	963
under section 145.36 of the Revised Code or under section 145.361	964
of the Revised Code. The board shall mail notice of the election,	965
accompanied by an explanation of the coverage under each of the	966
Revised Code sections and a form on which the election is to be	967
made, to each member at the member's last known address. The board	968
shall also provide the explanation and form to any member on	969
request.	970

Regardless of whether the member actually receives notice of	971
the right to make an election, a member who fails to file a valid	972
election under this section shall be considered to have elected	973
disability coverage under section 145.36 of the Revised Code. To	974
be valid, an election must be made on the form provided by the	975
retirement board, signed by the member, and filed with the board	976
not later than one hundred eighty days after the date the notice	977
was mailed, or, in the case of a form provided at the request of a	978
member, a date specified by rule of the retirement board. Once	979
made, an election is irrevocable, but if the member ceases to be a	980
member of the retirement system, the election is void. If a person	981
who makes an election under this section also makes an election	982
under section 3307.62 or 3309.39 of the Revised Code, the election	983
made for the system that pays a disability benefit to that person	984
shall govern the benefit.	985

Disability coverage shall be provided under section 145.361	986
of the Revised Code for persons who become members after July 29,	987
1992, and for members who elect under this division to be covered	988
under section 145.361 of the Revised Code.	989

The retirement board may adopt rules governing elections made	990
under this division.	991

(C) Application for a disability benefit may be made by a	992
member, by a person acting in the member's behalf, or by the	993
member's employer, provided the member has disability coverage	994
under section 145.36 or 145.361 of the Revised Code and is not	995
receiving a disability benefit under any other Ohio state or	996
municipal retirement program. Application must be made within two	997
years from the date the member's contributing service terminated	998
or the date the member ceased to make contributions to the PERS	999
defined benefit plan under section 145.814 of the Revised Code,	1000
unless the retirement board determines that the member's medical	1001
records demonstrate conclusively that at the time the two-year	1002
period expired, the member was physically or mentally	1003
incapacitated for duty and unable to make an application.	1004
Application may not be made by or for any person receiving age and	1005
service retirement benefits under section 145.33, 145.331, 145.34,	1006
or 145.37 of the Revised Code or any person who, pursuant to	1007
section 145.40 of the Revised Code, has been paid the accumulated	1008
contributions standing to the credit of the person's individual	1009
account in the employees' savings fund. The application shall be	1010
made on a form provided by the retirement board.	1011

(D) The benefit payable to any member who is approved for a	1012
disability benefit shall become effective on the first day of the	1013
month immediately following the later of the following:	1014

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

1015

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

1016

(E) Medical examination of a member who has applied for a	1017
disability benefit shall be conducted by a competent disinterested	1018
physician or physicians selected by the board to determine whether	1019
the member is mentally or physically incapacitated for the	1020
performance of duty by a disabling condition either permanent or	1021
presumed to be permanent. The disability must have occurred since	1022
last becoming a member or have increased since last becoming a	1023
member to such extent as to make the disability permanent or	1024
presumed to be permanent. A disability is presumed to be permanent	1025
if it is expected to last for a continuous period of not less than	1026
twelve months following the filing of the application.	1027

If the physician or physicians determine that the member	1028
qualifies for a disability benefit, the board concurs with the	1029
determination, and the member agrees to medical treatment as	1030
specified in division (F) of this section, the member shall	1031
receive a disability benefit under section 145.36 or 145.361 of	1032
the Revised Code. The action of the board shall be final.	1033

(F) The public employees retirement board shall adopt rules	1034
requiring a disability benefit recipient, as a condition of	1035
continuing to receive a disability benefit, to agree in writing to	1036
obtain any medical treatment recommended by the board's physician	1037
and submit medical reports regarding the treatment. If the board	1038
determines that a disability benefit recipient is not obtaining	1039
the medical treatment or the board does not receive a required	1040
medical report, the disability benefit shall be suspended until	1041
the treatment is obtained, the report is received by the board, or	1042
the board's physician certifies that the treatment is no longer	1043
helpful or advisable. Should the recipient's failure to obtain	1044
treatment or submit a medical report continue for one year, the	1045
recipient's right to the disability benefit shall be terminated as	1046
of the effective date of the original suspension.	1047

(G) In the event an employer files an application for a	1048
disability benefit as a result of a member having been separated	1049
from service because the member is considered to be mentally or	1050
physically incapacitated for the performance of the member's	1051
present duty, and the physician or physicians selected by the	1052
board reports to the board that the member is physically and	1053
mentally capable of performing service similar to that from which	1054
the member was separated and the board concurs in the report, the	1055
board shall so certify to the employer and the employer shall	1056
restore the member to the member's previous position and salary or	1057
to a similar position and salary.	1058

Sec. 145.47. (A) Each public employee who is a contributor	1059
to the public employees retirement system shall contribute eight	1060
per cent of the contributor's earnable salary to the employees'	1061
savings fund, except that the public employees retirement board	1062
may raise the contribution rate to a rate not greater than ten per	1063
cent of the employee's earnable salary.	1064

(B) The head of each state department, institution, board,	1065
and commission, and the fiscal officer of each local authority	1066
subject to this chapter, shall deduct from the earnable salary of	1067
each contributor on every payroll of such contributor for each	1068
payroll period subsequent to the date of coverage, an amount equal	1069
to the applicable per cent of the contributor's earnable salary.	1070
The head of each state department and the fiscal officer of each	1071
local authority subject to this chapter shall transmit promptly to	1072
the system a report of contributions at such intervals and in such	1073
form as the system shall require, showing thereon all deductions	1074
for the system made from the earnable salary of each contributor	1075
employed, together with warrants or, checks, or electronic	1076
payments covering the total of such deductions. A penalty ~~of five~~	1077
~~per cent of the total amount due for the particular reporting~~	1078
~~period~~ shall be added when such report, together with warrants or,	1079
checks, or electronic payments to cover the total amount due from	1080
the earnable salary of all amenable employees of such employer, is	1081
filed thirty or more days after the last day of such reporting	1082
period. ~~Such~~The system, after making a record of all receipts	1083
under this division, shall deposit the receipts with the treasurer	1084
of state for use as provided by this chapter.	1085

(C) Unless the board adopts a rule under division (D) of this	1086
section, the penalty described in division (B) of this section for	1087
failing to timely transmit a report, pay the total amount due, or	1088
both is as follows:	1089

(1) At least one but not more than ten days past due, an	1090
amount equal to one per cent of the total amount due;	1091

(2) At least eleven but not more than thirty days past due,	1092
an amount equal to two and one-half per cent of the total amount	1093
due;	1094

(3) Thirty-one or more days past due, an amount equal to five	1095
per cent of the total amount due.	1096

The penalty described in this division shall be added to and	1097
collected on the next succeeding regular employer billing.	1098
Interest at a rate set by the retirement board shall be charged on	1099
the amount of the penalty in case such penalty is not paid within	1100
~~three months~~thirty days after it is added to the regular employer	1101
billing. ~~The system, after making a record of all such receipts,~~	1102
~~shall deposit them with the treasurer of state for use as provided~~	1103
~~by this chapter. In~~	1104

(D) The board may adopt rules to establish penalties in	1105
amounts that do not exceed the amounts specified in divisions	1106
(C)(1) to (3) of this section.	1107

(E) In addition to the periodical reports of deduction	1108
required by this section, the fiscal officer of each local	1109
authority subject to this chapter shall submit to the system at	1110
least once each year a complete listing of all noncontributing	1111
appointive employees. Where an employer fails to transmit	1112
contributions to the system, the system may make a determination	1113
of the employees' liability for contributions and certify to the	1114
employer the amounts due for collection in the same manner as	1115
payments due the employers' accumulation fund. Any amounts so	1116
collected shall be held in trust pending receipt of a report of	1117
contributions for such public employees for the period involved as	1118
provided by law and, thereafter, the amount in trust shall be	1119
transferred to the employees' savings fund to the credit of the	1120
employees. Any amount remaining after the transfer to the	1121
employees' savings fund shall be transferred to the employers'	1122
accumulation fund as a credit of such employer. ~~The~~	1123

(F) The fiscal officer of each local authority subject to	1124
this chapter shall require each new contributor to submit to the	1125
system a detailed report of all the contributor's previous service	1126
as a public employee along with such other facts as the board	1127
requires for the proper operation of the system.	1128

(G) Any member who, because of the member's own illness,	1129
injury, or other reason which may be approved by the member's	1130
employer is prevented from making the member's contribution to the	1131
system for any payroll period, may pay such deductions as a back	1132
payment within one year.	1133

Sec. 145.49. (A) Notwithstanding section 145.47 of the	1134
Revised Code:	1135

(1) The public employees retirement system shall be	1136
authorized to calculate the employee contribution rates separately	1137
for those public employees contributing toward benefits as PERS	1138
public safety officers under ~~division (B)(2)(b), (c), or (d) of~~	1139
section 145.33 of the Revised Code.	1140

(2) Each public employee contributing toward benefits as	1141
PERS law enforcement officers under ~~division (B)(2)(a) of~~ section	1142
145.33 of the Revised Code shall contribute to the employees'	1143
savings fund ~~ten and one-tenth~~the rate determined under division	1144
(A)(1) of this section plus an additional percentage specified by	1145
the public employees retirement board, which shall initially be	1146
one per cent of the employee's earnable salary and shall not be	1147
increased to more than two per cent of the employee's earnable	1148
salary.	1149

(B) Notwithstanding section 145.48 of the Revised Code, the	1150
public employees retirement system shall be authorized to	1151
calculate the employer contribution rates separately for those	1152
public employees contributing toward benefits as PERS public	1153
safety officers under ~~division (B)(2)(a) of~~ section 145.33 of the	1154
Revised Code or as PERS law enforcement officers under ~~division~~	1155
~~(B)(2)(b), (c), or (d) of~~ that section, except that the employer	1156
contribution rate shall not exceed eighteen and one-tenth per cent	1157
of the earnable salaries of those employees.	1158

Section 2. That existing sections 145.01, 145.19, 145.191,	1159
145.33, 145.35, 145.47, and 145.49 of the Revised Code are hereby	1160
repealed.	1161