As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 83

Senator Faber 

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A BILL

To amend section 145.01 and to enact section 145.016

1

of the Revised Code to exclude certain

2

compensation when determining retirement benefits

3

under the Public Employees Retirement System.

4

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

Section 1. That section 145.01 be amended and section 145.016	5
of the Revised Code be enacted to read as follows:	6

Sec. 145.01.  As used in this chapter:

7

(A) "Public employee" means:

8

(1) Any person holding an office, not elective, under the	9
state or any county, township, municipal corporation, park	10
district, conservancy district, sanitary district, health	11
district, metropolitan housing authority, state retirement board,	12
Ohio historical society, public library, county law library, union	13
cemetery, joint hospital, institutional commissary, state	14
university, or board, bureau, commission, council, committee,	15
authority, or administrative body as the same are, or have been,	16
created by action of the general assembly or by the legislative	17
authority of any of the units of local government named in	18
division (A)(1) of this section, or employed and paid in whole or	19
in part by the state or any of the authorities named in division	20
(A)(1) of this section in any capacity not covered by section	21
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	22

(2) A person who is a member of the public employees	23
retirement system and who continues to perform the same or similar	24
duties under the direction of a contractor who has contracted to	25
take over what before the date of the contract was a publicly	26
operated function. The governmental unit with which the contract	27
has been made shall be deemed the employer for the purposes of	28
administering this chapter.	29

(3) Any person who is an employee of a public employer,	30
notwithstanding that the person's compensation for that employment	31
is derived from funds of a person or entity other than the	32
employer. Credit for such service shall be included as total	33
service credit, provided that the employee makes the payments	34
required by this chapter, and the employer makes the payments	35
required by sections 145.48 and 145.51 of the Revised Code.	36

(4) A person who elects in accordance with section 145.015 of	37
the Revised Code to remain a contributing member of the public	38
employees retirement system.	39

In all cases of doubt, the public employees retirement board	40
shall determine whether any person is a public employee, and its	41
decision is final.	42

(B) "Member" means any public employee, other than a public	43
employee excluded or exempted from membership in the retirement	44
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	45
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	46
retirant who becomes a member under division (C) of section 145.38	47
of the Revised Code. "Member" also includes a disability benefit	48
recipient.	49

(C) "Head of the department" means the elective or appointive	50
head of the several executive, judicial, and administrative	51
departments, institutions, boards, and commissions of the state	52
and local government as the same are created and defined by the	53
laws of this state or, in case of a charter government, by that	54
charter.	55

(D) "Employer" or "public employer" means the state or any	56
county, township, municipal corporation, park district,	57
conservancy district, sanitary district, health district,	58
metropolitan housing authority, state retirement board, Ohio	59
historical society, public library, county law library, union	60
cemetery, joint hospital, institutional commissary, state medical	61
college, state university, or board, bureau, commission, council,	62
committee, authority, or administrative body as the same are, or	63
have been, created by action of the general assembly or by the	64
legislative authority of any of the units of local government	65
named in this division not covered by section 742.01, 3307.01,	66
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	67
means the employer of any public employee.	68

(E) "Prior service" means all service as a public employee	69
rendered before January 1, 1935, and all service as an employee of	70
any employer who comes within the state teachers retirement system	71
or of the school employees retirement system or of any other	72
retirement system established under the laws of this state	73
rendered prior to January 1, 1935, provided that if the employee	74
claiming the service was employed in any capacity covered by that	75
other system after that other system was established, credit for	76
the service may be allowed by the public employees retirement	77
system only when the employee has made payment, to be computed on	78
the salary earned from the date of appointment to the date	79
membership was established in the public employees retirement	80
system, at the rate in effect at the time of payment, and the	81
employer has made payment of the corresponding full liability as	82
provided by section 145.44 of the Revised Code. "Prior service"	83
also means all service credited for active duty with the armed	84
forces of the United States as provided in section 145.30 of the	85
Revised Code.	86

If an employee who has been granted prior service credit by	87
the public employees retirement system for service rendered prior	88
to January 1, 1935, as an employee of a board of education	89
establishes, before retirement, one year or more of contributing	90
service in the state teachers retirement system or school	91
employees retirement system, then the prior service ceases to be	92
the liability of this system.	93

If the board determines that a position of any member in any	94
calendar year prior to January 1, 1935, was a part-time position,	95
the board shall determine what fractional part of a year's credit	96
shall be allowed by the following formula:	97

(1) When the member has been either elected or appointed to	98
an office the term of which was two or more years and for which an	99
annual salary is established, the fractional part of the year's	100
credit shall be computed as follows:	101

First, when the member's annual salary is one thousand	102
dollars or less, the service credit for each such calendar year	103
shall be forty per cent of a year.	104

Second, for each full one hundred dollars of annual salary	105
above one thousand dollars, the member's service credit for each	106
such calendar year shall be increased by two and one-half per	107
cent.	108

(2) When the member is paid on a per diem basis, the service	109
credit for any single year of the service shall be determined by	110
using the number of days of service for which the compensation was	111
received in any such year as a numerator and using two hundred	112
fifty days as a denominator.	113

(3) When the member is paid on an hourly basis, the service	114
credit for any single year of the service shall be determined by	115
using the number of hours of service for which the compensation	116
was received in any such year as a numerator and using two	117
thousand hours as a denominator.	118

(F) "Contributor" means any person who has an account in the	119
employees' savings fund created by section 145.23 of the Revised	120
Code. When used in the sections listed in division (B) of section	121
145.82 of the Revised Code, "contributor" includes any person	122
participating in a PERS defined contribution plan.	123

(G) "Beneficiary" or "beneficiaries" means the estate or a	124
person or persons who, as the result of the death of a member,	125
contributor, or retirant, qualify for or are receiving some right	126
or benefit under this chapter.	127

(H)(1) "Total service credit," except as provided in section	128
145.37 of the Revised Code, means all service credited to a member	129
of the retirement system since last becoming a member, including	130
restored service credit as provided by section 145.31 of the	131
Revised Code; credit purchased under sections 145.293 and 145.299	132
of the Revised Code; all the member's prior service credit; all	133
the member's military service credit computed as provided in this	134
chapter; all service credit established pursuant to section	135
145.297 of the Revised Code; and any other service credited under	136
this chapter. In addition, "total service credit" includes any	137
period, not in excess of three years, during which a member was	138
out of service and receiving benefits under Chapters 4121. and	139
4123. of the Revised Code. For the exclusive purpose of satisfying	140
the service credit requirement and of determining eligibility for	141
benefits under sections 145.32, 145.33, 145.331, 145.35, 145.36,	142
and 145.361 of the Revised Code, "five or more years of total	143
service credit" means sixty or more calendar months of	144
contributing service in this system.	145

(2) "One and one-half years of contributing service credit,"	146
as used in division (B) of section 145.45 of the Revised Code,	147
also means eighteen or more calendar months of employment by a	148
municipal corporation that formerly operated its own retirement	149
plan for its employees or a part of its employees, provided that	150
all employees of that municipal retirement plan who have eighteen	151
or more months of such employment, upon establishing membership in	152
the public employees retirement system, shall make a payment of	153
the contributions they would have paid had they been members of	154
this system for the eighteen months of employment preceding the	155
date membership was established. When that payment has been made	156
by all such employee members, a corresponding payment shall be	157
paid into the employers' accumulation fund by that municipal	158
corporation as the employer of the employees.	159

(3) Where a member also is a member of the state teachers	160
retirement system or the school employees retirement system, or	161
both, except in cases of retirement on a combined basis pursuant	162
to section 145.37 of the Revised Code or as provided in section	163
145.383 of the Revised Code, service credit for any period shall	164
be credited on the basis of the ratio that contributions to the	165
public employees retirement system bear to total contributions in	166
all state retirement systems.	167

(4) Not more than one year of credit may be given for any	168
period of twelve months.	169

(5) "Ohio service credit" means credit for service that was	170
rendered to the state or any of its political subdivisions or any	171
employer.	172

(I) "Regular interest" means interest at any rates for the	173
respective funds and accounts as the public employees retirement	174
board may determine from time to time.	175

(J) "Accumulated contributions" means the sum of all amounts	176
credited to a contributor's individual account in the employees'	177
savings fund together with any interest credited to the	178
contributor's account under section 145.471 or 145.472 of the	179
Revised Code.	180

(K)(1) "Final average salary" means the quotient obtained by	181
dividing by three the sum of the three full calendar years of	182
contributing service in which the member's earnable salary, with	183
any adjustment required by section 145.016 of the Revised Code,	184
was highest, except that if the member has a partial year of	185
contributing service in the year the member's employment	186
terminates and the member's earnable salary for the partial year	187
is higher than for any comparable period in the three years, the	188
member's earnable salary for the partial year shall be substituted	189
for the member's earnable salary for the comparable period during	190
the three years in which the member's earnable salary was lowest.	191

(2) If a member has less than three years of contributing	192
service, the member's final average salary shall be the member's	193
total earnable salary divided by the total number of years,	194
including any fraction of a year, of the member's contributing	195
service.	196

(3) For the purpose of calculating benefits payable to a	197
member qualifying for service credit under division (Z) of this	198
section, "final average salary" means the total earnable salary,	199
with any adjustment required by section 145.016 of the Revised	200
Code, on which contributions were made divided by the total number	201
of years during which contributions were made, including any	202
fraction of a year. If contributions were made for less than	203
twelve months, "final average salary" means the member's total	204
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)(2) of	237
this 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 to or on behalf of a contributor that are	293
in excess of the amount determined for that year under division	294
(A)(1)(4) of section 141.011 of the Revised Code as the annual	295
salary of the governor;	296

(h) Payments made under division (B), (C), or (E) of section	297
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	298
No. 3 of the 119th general assembly, Section 3 of Amended	299
Substitute Senate Bill No. 164 of the 124th general assembly, or	300
Amended Substitute House Bill No. 405 of the 124th general	301
assembly;	302

(h)(i) Anything of value received by the contributor that is	303
based on or attributable to retirement or an agreement to retire,	304
except that payments made on or before January 1, 1989, that are	305
based on or attributable to an agreement to retire shall be	306
included in earnable salary if both of the following apply:	307

(i) The payments are made in accordance with contract	308
provisions that were in effect prior to January 1, 1986;	309

(ii) The employer pays the retirement system an amount	310
specified by the retirement board equal to the additional	311
liability resulting from the payments.	312

(3) The retirement board shall determine by rule whether any	313
compensation not enumerated in division (R) of this section is	314
earnable salary, and its decision shall be final.	315

(S) "Pension reserve" means the present value, computed upon	316
the basis of the mortality and other tables adopted by the board,	317
of all payments to be made on account of any retirement allowance	318
or benefit in lieu of any retirement allowance, granted to a	319
member or beneficiary under this chapter.	320

(T)(1) "Contributing service" means all service credited to a	321
member of the system since January 1, 1935, for which	322
contributions are made as required by sections 145.47, 145.48, and	323
145.483 of the Revised Code. In any year subsequent to 1934,	324
credit for any service shall be allowed by the following formula:	325

(a) For each month for which the member's earnable salary is	326
two hundred fifty dollars or more, allow one month's credit.	327

(b) For each month for which the member's earnable salary is	328
less than two hundred fifty dollars, allow a fraction of a month's	329
credit. The numerator of this fraction shall be the earnable	330
salary during the month, and the denominator shall be two hundred	331
fifty dollars, except that if the member's annual earnable salary	332
is less than six hundred dollars, the member's credit shall not be	333
reduced below twenty per cent of a year for a calendar year of	334
employment during which the member worked each month. Division	335
(T)(1)(b) of this section shall not reduce any credit earned	336
before January 1, 1985.	337

(2) Notwithstanding division (T)(1) of this section, an	338
elected official who prior to January 1, 1980, was granted a full	339
year of credit for each year of service as an elected official	340
shall be considered to have earned a full year of credit for each	341
year of service regardless of whether the service was full-time or	342
part-time. The public employees retirement board has no authority	343
to reduce the credit.	344

(U) "State retirement board" means the public employees	345
retirement board, the school employees retirement board, or the	346
state teachers retirement board.	347

(V) "Retirant" means any former member who retires and is	348
receiving a monthly allowance as provided in sections 145.32,	349
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	350

(W) "Employer contribution" means the amount paid by an	351
employer as determined under section 145.48 of the Revised Code.	352

(X) "Public service terminates" means the last day for which	353
a public employee is compensated for services performed for an	354
employer or the date of the employee's death, whichever occurs	355
first.	356

(Y) When a member has been elected or appointed to an office,	357
the term of which is two or more years, for which an annual salary	358
is established, and in the event that the salary of the office is	359
increased and the member is denied the additional salary by reason	360
of any constitutional provision prohibiting an increase in salary	361
during a term of office, the member may elect to have the amount	362
of the member's contributions calculated upon the basis of the	363
increased salary for the office. At the member's request, the	364
board shall compute the total additional amount the member would	365
have contributed, or the amount by which each of the member's	366
contributions would have increased, had the member received the	367
increased salary for the office the member holds. If the member	368
elects to have the amount by which the member's contribution would	369
have increased withheld from the member's salary, the member shall	370
notify the employer, and the employer shall make the withholding	371
and transmit it to the retirement system. A member who has not	372
elected to have that amount withheld may elect at any time to make	373
a payment to the retirement system equal to the additional amount	374
the member's contribution would have increased, plus interest on	375
that contribution, compounded annually at a rate established by	376
the board and computed from the date on which the last	377
contribution would have been withheld from the member's salary to	378
the date of payment. A member may make a payment for part of the	379
period for which the increased contribution was not withheld, in	380
which case the interest shall be computed from the date the last	381
contribution would have been withheld for the period for which the	382
payment is made. Upon the payment of the increased contributions	383
as provided in this division, the increased annual salary as	384
provided by law for the office for the period for which the member	385
paid increased contributions thereon shall be used in determining	386
the member's earnable salary for the purpose of computing the	387
member's final average salary.	388

(Z) "Five years of service credit," for the exclusive purpose	389
of satisfying the service credit requirements and of determining	390
eligibility for benefits under section 145.33 of the Revised Code,	391
means employment covered under this chapter or under a former	392
retirement plan operated, recognized, or endorsed by the employer	393
prior to coverage under this chapter or under a combination of the	394
coverage.	395

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

(BB) "Township constable or police officer in a township	409
police department or district" means any person who is	410
commissioned and employed as a full-time peace officer pursuant to	411
Chapter 505. or 509. of the Revised Code, who has received a	412
certificate attesting to the person's satisfactory completion of	413
the peace officer training school as required by section 109.77 of	414
the Revised Code.	415

(CC) "Drug agent" means any person who is either of the	416
following:	417

(1) Employed full time as a narcotics agent by a county	418
narcotics agency created pursuant to section 307.15 of the	419
Revised Code and has received a certificate attesting to the	420
satisfactory completion of the peace officer training school as	421
required by section 109.77 of the Revised Code;	422

(2) Employed full time as an undercover drug agent as	423
defined in section 109.79 of the Revised Code and is in	424
compliance with section 109.77 of the Revised Code.	425

(DD) "Department of public safety enforcement agent" means a	426
full-time employee of the department of public safety who is	427
designated under section 5502.14 of the Revised Code as an	428
enforcement agent and who is in compliance with section 109.77 of	429
the Revised Code.	430

(EE) "Natural resources law enforcement staff officer" means	431
a full-time employee of the department of natural resources who is	432
designated a natural resources law enforcement staff officer under	433
section 1501.013 of the Revised Code and is in compliance with	434
section 109.77 of the Revised Code.	435

(FF) "Park officer" means a full-time employee of the	436
department of natural resources who is designated a park officer	437
under section 1541.10 of the Revised Code and is in compliance	438
with section 109.77 of the Revised Code.	439

(GG) "Forest officer" means a full-time employee of the	440
department of natural resources who is designated a forest officer	441
under section 1503.29 of the Revised Code and is in compliance	442
with section 109.77 of the Revised Code.	443

(HH) "Preserve officer" means a full-time employee of the	444
department of natural resources who is designated a preserve	445
officer under section 1517.10 of the Revised Code and is in	446
compliance with section 109.77 of the Revised Code.	447

(II) "Wildlife officer" means a full-time employee of the	448
department of natural resources who is designated a wildlife	449
officer under section 1531.13 of the Revised Code and is in	450
compliance with section 109.77 of the Revised Code.	451

(JJ) "State watercraft officer" means a full-time employee of	452
the department of natural resources who is designated a state	453
watercraft officer under section 1547.521 of the Revised Code and	454
is in compliance with section 109.77 of the Revised Code.	455

(KK) "Park district police officer" means a full-time	456
employee of a park district who is designated pursuant to section	457
511.232 or 1545.13 of the Revised Code and is in compliance with	458
section 109.77 of the Revised Code.	459

(LL) "Conservancy district officer" means a full-time	460
employee of a conservancy district who is designated pursuant to	461
section 6101.75 of the Revised Code and is in compliance with	462
section 109.77 of the Revised Code.	463

(MM) "Municipal police officer" means a member of the	464
organized police department of a municipal corporation who is	465
employed full time, is in compliance with section 109.77 of the	466
Revised Code, and is not a member of the Ohio police and fire	467
pension fund.	468

(NN) "Veterans' home police officer" means any person who is	469
employed at a veterans' home as a police officer pursuant to	470
section 5907.02 of the Revised Code and is in compliance with	471
section 109.77 of the Revised Code.	472

(OO) "Special police officer for a mental health institution"	473
means any person who is designated as such pursuant to section	474
5119.14 of the Revised Code and is in compliance with section	475
109.77 of the Revised Code.	476

(PP) "Special police officer for an institution for the	477
mentally retarded and developmentally disabled" means any person	478
who is designated as such pursuant to section 5123.13 of the	479
Revised Code and is in compliance with section 109.77 of the	480
Revised Code.	481

(QQ) "State university law enforcement officer" means any	482
person who is employed full time as a state university law	483
enforcement officer pursuant to section 3345.04 of the Revised	484
Code and who is in compliance with section 109.77 of the Revised	485
Code.	486

(RR) "House sergeant at arms" means any person appointed by	487
the speaker of the house of representatives under division (B)(1)	488
of section 101.311 of the Revised Code who has arrest authority	489
under division (E)(1) of that section.	490

(SS) "Assistant house sergeant at arms" means any person	491
appointed by the house sergeant at arms under division (C)(1) of	492
section 101.311 of the Revised Code.	493

(TT) "Regional transit authority police officer" means a	494
person who is employed full time as a regional transit authority	495
police officer under division (Y) of section 306.35 of the Revised	496
Code and is in compliance with section 109.77 of the Revised Code.	497

(UU) "State highway patrol police officer" means a special	498
police officer employed full time and designated by the	499
superintendent of the state highway patrol pursuant to section	500
5503.09 of the Revised Code or a person serving full time as a	501
special police officer pursuant to that section on a permanent	502
basis on October 21, 1997, who is in compliance with section	503
109.77 of the Revised Code.	504

(VV) "Municipal public safety director" means a person who	505
serves full time as the public safety director of a municipal	506
corporation with the duty of directing the activities of the	507
municipal corporation's police department and fire department.	508

(WW) Notwithstanding section 2901.01 of the Revised Code,	509
"PERS law enforcement officer" means a sheriff or any of the	510
following whose primary duties are to preserve the peace, protect	511
life and property, and enforce the laws of this state: a deputy	512
sheriff, township constable or police officer in a township police	513
department or district, drug agent, department of public safety	514
enforcement agent, natural resources law enforcement staff	515
officer, park officer, forest officer, preserve officer, wildlife	516
officer, state watercraft officer, park district police officer,	517
conservancy district officer, veterans' home police officer,	518
special police officer for a mental health institution, special	519
police officer for an institution for the mentally retarded and	520
developmentally disabled, state university law enforcement	521
officer, municipal police officer, house sergeant at arms,	522
assistant house sergeant at arms, regional transit authority	523
police officer, or state highway patrol police officer. PERS law	524
enforcement officer also includes a person serving as a municipal	525
public safety director at any time during the period from	526
September 29, 2005, to the effective date of this amendmentMarch	527
24, 2009, if the duties of that service were to preserve the	528
peace, protect life and property, and enforce the laws of this	529
state.	530

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

(YY) "PERS public safety officer" means a Hamilton county	538
municipal court bailiff, or any of the following whose primary	539
duties are other than to preserve the peace, protect life and	540
property, and enforce the laws of this state: a deputy sheriff,	541
township constable or police officer in a township police	542
department or district, drug agent, department of public safety	543
enforcement agent, natural resources law enforcement staff	544
officer, park officer, forest officer, preserve officer, wildlife	545
officer, state watercraft officer, park district police officer,	546
conservancy district officer, veterans' home police officer,	547
special police officer for a mental health institution, special	548
police officer for an institution for the mentally retarded and	549
developmentally disabled, state university law enforcement	550
officer, municipal police officer, house sergeant at arms,	551
assistant house sergeant at arms, regional transit authority	552
police officer, or state highway patrol police officer. PERS	553
public safety officer also includes a person serving as a	554
municipal public safety director at any time during the period	555
from September 29, 2005, to the effective date of this amendment	556
March 24, 2009, if the duties of that service were other than to	557
preserve the peace, protect life and property, and enforce the	558
laws of this state.	559

(ZZ) "Fiduciary" means a person who does any of the	560
following:	561

(1) Exercises any discretionary authority or control with	562
respect to the management of the system or with respect to the	563
management or disposition of its assets;	564

(2) Renders investment advice for a fee, direct or indirect,	565
with respect to money or property of the system;	566

(3) Has any discretionary authority or responsibility in the	567
administration of the system.	568

(AAA) "Actuary" means an individual who satisfies all of the	569
following requirements:	570

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

571

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

572

(3) Has a minimum of five years' experience in providing	573
actuarial services to public retirement plans.	574

(BBB) "PERS defined benefit plan" means the plan described	575
in sections 145.201 to 145.79 of the Revised Code.	576

(CCC) "PERS defined contribution plans" means the plan or	577
plans established under section 145.81 of the Revised Code.	578

Sec. 145.016. (A) For the purposes of determining final	579
average salary under division (K) of section 145.01 of the Revised	580
Code, "earnable salary" does not include amounts attributable to	581
either of the following:	582

(1) Overtime service that exceeds the greater of the	583
following:	584

(a) The member's overtime service during any of the three	585
years immediately preceding the two years of contributing service	586
in which the member's earnable salary was highest;	587

(b) The member's overtime service that is considered	588
generally applicable to members employed by same employer because	589
it was assigned in accordance with uniform criteria applicable to	590
all such members.	591

(2) A percentage increase in earnable salary paid the member	592
during the two years of contributing service in which the member's	593
earnable salary was highest that exceeds the greater of the	594
following:	595

(a) The highest percentage increase in earnable salary paid	596
the member during any of the three years immediately preceding the	597
two years of contributing service in which the member's earnable	598
salary was highest;	599

(b) A percentage increase in earnable salary paid the member	600
as part of an increase that is considered generally applicable to	601
members employed by the employer because the increase is in	602
accordance with uniform criteria applicable to all such members.	603

(B) Contributions made by a member and an employer on amounts	604
that pursuant to division (A) of this section are not earnable	605
salary shall be treated as additional deposits to the member's	606
account under section 145.62 of the Revised Code and used to	607
provide additional annuity income.	608

(C) The public employees retirement board shall notify each	609
member who applies for a retirement allowance of any amount	610
excluded from the member's earnable salary in accordance with	611
division (A) of this section and the procedure for requesting a	612
hearing.	613

The board shall hold a hearing at the member's request.	614
Following the hearing, the board shall determine in accordance	615
with the criteria it has established whether, for good cause as	616
determined by the board, all or any portion of the excluded	617
amount, up to a maximum of seven thousand five hundred dollars, is	618
to be included in determining the member's final average salary.	619
The board's determination is final.	620

The board shall adopt rules under Chapter 119. of the Revised	621
Code establishing procedures for requesting a hearing and criteria	622
for making determinations under this division.	623

Section 2. That existing section 145.01 of the Revised Code	624
is hereby repealed.	625