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To amend sections 148.02, 148.04, and 3105.87 and to | 1 |
enact section 148.05 of the Revised Code to | 2 |
provide for confidentiality of certain records | 3 |
maintained by the Ohio Public Employees Deferred | 4 |
Compensation Board, to require the Treasurer of | 5 |
State to be the custodian of contributions into | 6 |
the deferred compensation program, to require new | 7 |
employees to be notified of the deferred | 8 |
compensation program and provided with the | 9 |
opportunity to elect to participate or not | 10 |
participate in the program, and to make other | 11 |
changes to the Deferred Compensation Law. | 12 |
Section 1. That sections 148.02, 148.04, and 3105.87 be | 13 |
amended and section 148.05 of the Revised Code be enacted to read | 14 |
as follows: | 15 |
Sec. 148.02. The Ohio public employees deferred compensation | 16 |
board shall be comprised of a member of the house of | 17 |
representatives and a member of the senate, who shall not be of | 18 |
the same political party, each to be appointed to serve at the | 19 |
pleasure of the member's respective leadership, and the members of | 20 |
the public employees retirement board as constituted by section | 21 |
145.04 of the Revised Code, who are hereby created as a separate | 22 |
legal entity for the purpose of administering a deferred | 23 |
compensation system for all eligible employees. The public | 24 |
employees retirement board may utilize its employees and property | 25 |
in the administration of the system on behalf of the Ohio public | 26 |
employees deferred compensation board, in consideration of a | 27 |
reasonable service charge to be applied in a nondiscriminatory | 28 |
manner to all amounts of compensation deferred under this system. | 29 |
The Ohio public employees deferred compensation board may | 30 |
exercise the same powers granted by section 145.09 of the Revised | 31 |
Code necessary to its functions. The attorney general shall be the | 32 |
legal adviser of the board. The treasurer of state shall be the | 33 |
custodian of contributions into the deferred compensation program. | 34 |
Sec. 148.04. (A) The Ohio public employees deferred | 35 |
compensation board shall initiate, plan, expedite, and, subject to | 36 |
an appropriate assurance of the approval of the internal revenue | 37 |
service, promulgate and offer to all eligible employees, and | 38 |
thereafter administer on behalf of all participating employees and | 39 |
continuing members, and alter as required, a program for deferral | 40 |
of compensation, including a reasonable number of options to the | 41 |
employee for the investment of deferred
funds, | 42 |
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treatment of such funds. The members of the board are the trustees | 46 |
of any deferred funds and shall discharge their duties with | 47 |
respect to the funds solely in the interest of and for the | 48 |
exclusive benefit of participating employees, continuing members, | 49 |
and their beneficiaries. With respect to such deferred funds, | 50 |
section 148.09 of the Revised Code shall apply to claims against | 51 |
participating employees or continuing members and their employers. | 52 |
(B)(1) Whenever an individual becomes employed in a position | 53 |
paid by warrant of the director of budget and management, the | 54 |
individual's employer shall do both of the following at the time | 55 |
the employee completes the employee's initial employment | 56 |
paperwork: | 57 |
(a) Provide information to the employee either verbally or in | 58 |
writing regarding the benefits of long-term savings through | 59 |
deferred compensation; | 60 |
(b) Secure, in writing, the employee's election to | 61 |
participate or not participate in a deferred compensation program | 62 |
offered by the board. | 63 |
If the employee elects to participate in the deferred | 64 |
compensation program, the employee also shall execute a | 65 |
participation agreement to become a member of the program. | 66 |
An election regarding participation under this section shall | 67 |
be made in such manner and form as is prescribed by the Ohio | 68 |
public employees deferred compensation program and shall be filed | 69 |
with the program. | 70 |
The employer shall forward each election completed under this | 71 |
division to the deferred compensation program not later than | 72 |
thirty days after the date on which the employee's employment | 73 |
begins. | 74 |
(2) Every employer of an eligible employee shall contract | 75 |
with the employee upon the employee's application for | 76 |
participation in a deferred compensation program offered by the | 77 |
board. | 78 |
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(C) The board shall, subject to any applicable contract | 81 |
provisions, undertake to obtain as favorable conditions of tax | 82 |
treatment as possible, both in the initial programs and any | 83 |
permitted alterations of them or additions to them, as to such | 84 |
matters as terms of distribution, designation of beneficiaries, | 85 |
withdrawal upon disability, financial hardship, or termination of | 86 |
public employment, and other optional provisions. | 87 |
(D) In no event shall the total of the amount of deferred | 88 |
compensation to be set aside under a deferred compensation program | 89 |
and the employee's nondeferred income for any year exceed the | 90 |
total annual salary or compensation under the existing salary | 91 |
schedule or classification plan applicable to the employee in that | 92 |
year. | 93 |
Such a deferred compensation program shall be in addition to | 94 |
any retirement or any other benefit program provided by law for | 95 |
employees of this state. The board shall adopt rules pursuant to | 96 |
Chapter 119. of the Revised Code to provide any necessary | 97 |
standards or conditions for the administration of its programs, | 98 |
including any limits on the portion of a participating employee's | 99 |
compensation that may be deferred in order to avoid adverse | 100 |
treatment of the program by the internal revenue service or the | 101 |
occurrence of deferral, withholding, or other deductions in excess | 102 |
of the compensation available for any pay period. | 103 |
Any income deferred under such a plan shall continue to be | 104 |
included as regular compensation for the purpose of computing the | 105 |
contributions to and benefits from the retirement system of such | 106 |
employee. Any sum so deferred shall not be included in the | 107 |
computation of any federal and state income taxes withheld on | 108 |
behalf of any such employee. | 109 |
(E) This section does not limit the authority of any | 110 |
municipal corporation, county, township, park district, | 111 |
conservancy district, sanitary district, health district, public | 112 |
library, county law library, public institution of higher | 113 |
education, or school district to provide separate authorized plans | 114 |
or programs for deferring compensation of their officers and | 115 |
employees in addition to the program for the deferral of | 116 |
compensation offered by the board. Any municipal corporation, | 117 |
township, public institution of higher education, or school | 118 |
district that offers such plans or programs shall include a | 119 |
reasonable number of options to its officers or employees for the | 120 |
investment of the deferred funds, including annuities, variable | 121 |
annuities, regulated investment trusts, or other forms of | 122 |
investment approved by the municipal corporation, township, public | 123 |
institution of higher education, or school district, that will | 124 |
assure the desired tax treatment of the funds. | 125 |
Sec. 148.05. (A)(1) As used in this division, "personal | 126 |
history record" means information maintained by the Ohio public | 127 |
employees deferred compensation board on an individual who is a | 128 |
participating employee or continuing member that includes the | 129 |
address, telephone number, social security number, record of | 130 |
contributions, records of benefits, correspondence with the Ohio | 131 |
public employees deferred compensation program, or other | 132 |
information the board determines to be confidential. | 133 |
(2) The records of the board shall be open to public | 134 |
inspection, except that the following shall be excluded, except | 135 |
with the written authorization of the individual concerned: | 136 |
(a) Information pertaining to an individual's participant | 137 |
account; | 138 |
(b) The individual's personal history record. | 139 |
(B)(1) All medical reports, records, and recommendations of a | 140 |
participating employee or a continuing member that are in the | 141 |
possession of the board are privileged. | 142 |
(2) All tax information of a participating employee, | 143 |
continuing member, or former participant or member that is in the | 144 |
possession of the board shall be confidential to the extent the | 145 |
information is confidential under Title LVII or any other | 146 |
provision of the Revised Code. | 147 |
(C) Notwithstanding the exceptions to public inspection in | 148 |
division (A)(2) of this section, the board may furnish the | 149 |
following information: | 150 |
(1) If a participating employee, continuing member, or former | 151 |
participant or member is subject to an order issued under section | 152 |
2907.15 of the Revised Code or is convicted of or pleads guilty | 153 |
to a violation of section 2921.41 of the Revised Code, on written | 154 |
request of a prosecutor as defined in section 2935.01 of the | 155 |
Revised Code, the board shall furnish to the prosecutor the | 156 |
information requested from the individual's personal history | 157 |
record or participant account. | 158 |
(2) Pursuant to a court or administrative order issued | 159 |
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised | 160 |
Code, the board shall furnish to a court or child support | 161 |
enforcement agency the information required under that section. | 162 |
(3) Pursuant to an administrative subpoena issued by a state | 163 |
agency, the board shall furnish the information required by the | 164 |
subpoena. | 165 |
(4) The board shall comply with orders issued under section | 166 |
3105.87 of the Revised Code. | 167 |
(D) A statement that contains information obtained from the | 168 |
program's records that is signed by the executive director or the | 169 |
director's designee and to which the board's official seal is | 170 |
affixed, or copies of the program's records to which the | 171 |
signature and seal are attached, shall be received as true copies | 172 |
of the board's records in any court or before any officer of this | 173 |
state. | 174 |
Sec. 3105.87. The court may order a public retirement | 175 |
program or the Ohio public employees deferred compensation program | 176 |
to provide information from a participant's personal history | 177 |
record necessary to determine the amounts described in division | 178 |
(D) of section 3105.82 of the Revised Code. | 179 |
Section 2. That existing sections 148.02, 148.04, and 3105.87 | 180 |
of the Revised Code are hereby repealed. | 181 |