As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 340

Senators Niehaus, Kearney 

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A BILL

To amend sections 171.04, 742.01, 742.04, 742.10,

1

742.14, 742.16, 742.30, 742.301, 742.31, 742.32,

2

742.33, 742.34, 742.35, 742.37, 742.3711,

3

742.3716, 742.38, 742.39, 742.44, 742.442,

4

742.443, 742.444, 742.45, 742.63, and 742.64; to

5

enact sections 742.012, 742.013, and 742.161; and

6

to repeal section 742.011 of the Revised Code to

7

revise the law governing the Ohio Police and Fire

8

Pension Fund.

9

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

Section 1.  That sections 171.04, 742.01, 742.04, 742.10,	10
742.14, 742.16, 742.30, 742.301, 742.31, 742.32, 742.33, 742.34,	11
742.35, 742.37, 742.3711, 742.3716, 742.38, 742.39, 742.44,	12
742.442, 742.443, 742.444, 742.45, 742.63, and 742.64 be amended	13
and sections 742.012 and 742.161 of the Revised Code be enacted to	14
read as follows:	15

Sec. 171.04.  The Ohio retirement study council shall:

16

(A) Make an impartial review from time to time of all laws	17
governing the administration and financing of the pension and	18
retirement funds under Chapters 145., 146., 742., 3307., 3309.,	19
and 5505. of the Revised Code and recommend to the general	20
assembly any changes it may find desirable with respect to the	21
allowances and benefits, sound financing of the cost of benefits,	22
the prudent investment of funds, and the improvement of the	23
language, structure, and organization of the laws;	24

(B) Make an annual report to the governor and to the general	25
assembly covering its evaluation and recommendations with respect	26
to the operations of the state retirement systems and their funds;	27

(C) Study all changes in the retirement laws proposed to the	28
general assembly and report to the general assembly on their	29
probable costs, actuarial implications, and desirability as a	30
matter of public policy;	31

(D) Review semiannually the policies, objectives, and	32
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15,	33
and 5505.06 of the Revised Code for the operation of the	34
investment programs of the state retirement systems, including a	35
review of asset allocation targets and ranges, risk factors, asset	36
class benchmarks, time horizons, total return objectives, relative	37
volatility, and performance evaluation guidelines. The council	38
shall, not later than thirty days after completing a review,	39
submit to the governor and the general assembly a report	40
summarizing its findings.	41

(E) Have prepared by an independent actuary, at least once	42
every ten years, an actuarial review of the annual actuarial	43
valuations and quinquennial actuarial investigations prepared	44
under sections 145.22, 742.14, 3307.20, 3309.21, and 5505.12 of	45
the Revised Code, including a review of the actuarial assumptions	46
and methods, the data underlying the valuations and	47
investigations, and the adequacy of each system's employee and	48
employer contribution rates to amortize its unfunded actuarial	49
pension liability, if any, and to support the payment of benefits	50
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the	51
Revised Code. The council shall submit to the governor and the	52
general assembly a report summarizing the review.	53

(F) Have conducted by an independent auditor at least once	54
every ten years a fiduciary performance audit of each of the state	55
retirement systems.	56

All costs associated with an audit conducted pursuant to	57
division (F) of this section shall be paid by the retirement	58
system audited.	59

(G) Provide each member of the council with copies of all	60
proposed rules submitted to the council pursuant to sections	61
145.09, 742.10, 3307.04, 3309.04, and 5505.04 of the Revised Code	62
and submit any recommendations to the joint committee on agency	63
rule review.	64

Sec. 742.01.  As used in this chapter:

65

(A)(1) "Police department" means the police department of a	66
municipal corporation.	67

(2) "Member of a police department" means any of the	68
following:	69

(a) Any person who receives an original appointment as a	70
full-time regular police officer in a police department from a	71
duly established civil service eligible list or pursuant to	72
section 124.411 of the Revised Code, or who is described in	73
section 742.511 of the Revised Code, or who transfers from the	74
public employees retirement system to the Ohio police and fire	75
pension fund pursuant to section 742.513 of the Revised Code, or	76
who is appointed pursuant to section 737.15 or 737.16 of the	77
Revised Code as a full-time regular police officer and is paid	78
solely out of public funds of the employing municipal corporation;	79

(b) Any person who, on October 1, 1965, was contributing four	80
per cent of the person's annual salary to a police relief and	81
pension fund established under former section 741.32 of the	82
Revised Code;	83

(c) Any person who commences employment on or after September	84
16, 1998, as a full-time police officer with a police department	85
in a position in which the person is required to satisfactorily	86
complete a peace officer training course in compliance with	87
section 109.77 of the Revised Code.	88

(B)(1) "Fire department" means a fire department of the state	89
or an instrumentality of the state or of a municipal corporation,	90
township, joint fire district, or other political subdivision.	91

(2) "Member of a fire department" means all of the following:

92

(a) Any person who commences employment after November 8,	93
1990, as a full-time firefighter with a fire department, in a	94
position in which the person is required to satisfactorily	95
complete or have satisfactorily completed a firefighter training	96
course approved under former section 3303.07 or section 4765.55 or	97
conducted under section 3737.33 of the Revised Code;	98

(b) Any person who has elected under section 742.515 of the	99
Revised Code to be transferred from the public employees	100
retirement system to the Ohio police and fire pension fund;	101

(c) Any full-time firefighter who, on November 8, 1990, is a	102
member of the Ohio police and fire pension fund.	103

(C) "Employee" means any person who is a member of a police	104
department or a member of a fire department.	105

(D) "Employer" means the government entity by which an	106
employee is employed and paid.	107

(E) "Member of the fund" means any person, except an other	108
system retirant as defined in section 742.26 of the Revised Code,	109
who is contributing a percentage of the person's annual salary to	110
the Ohio police and fire pension fund or who is receiving a	111
disability benefit or pension from the fund as a result of service	112
in a police or fire department. A person, other than an other	113
system retirant, who is contributing a percentage of the person's	114
annual salary to the fund and is dismissed, resigns, or is granted	115
a leave of absence from a police or fire department shall be	116
considered a "member of the fund" for a period of twelve months	117
after the first day of the dismissal, resignation, or leave of	118
absence, provided the sum deducted from the person's salary and	119
credited to the person's account in the fund remains on deposit in	120
the fund.	121

A member of the Ohio national guard, the Ohio military	122
reserve, the Ohio naval militia, or a reserve component of the	123
armed forces of the United States who is absent from employment	124
due to active military duty because of an executive order issued	125
by the president of the United States or an act of congress shall	126
be considered a member of the fund for the duration of the active	127
military duty.	128

(F) "Year," for the purpose of determining benefits, means	129
any twelve consecutive calendar months of active service as a	130
member of the fund, or, in the case of a member whose salary is	131
paid weekly or biweekly, fifty-two consecutive weeks of active	132
service as a member.	133

(G) "Average annual salary" means the highest average annual	134
salary of a member of the fund during any threeof the number of	135
years of contributions specified in section 742.37 or 742.39 of	136
the Revised Code, as appropriate, and determined by dividing the	137
member's total salary as an employee during thethose years by	138
threethat number.	139

For the purpose of determining average annual salary for	140
members who, as of July 1, 2013, have fifteen or more years of	141
service credit, "salary" has the same meaning as in division	142
(L)(2) of this section, except that it does not include any	143
amounts that exceed the salary benchmark, determined as follows:	144

(1) Divide by three the total of the member's salaries for	145
the contiguous three-year period immediately preceding the	146
contiguous three-year period immediately prior to the member's	147
effective date of retirement under section 742.37 or effective	148
date of participation in a deferred option retirement plan under	149
section 742.44 of the Revised Code;	150

(2) Multiply the amount determined under division (G)(1) of	151
this section by one hundred ten per cent;	152

(3) Multiply the amount determined under division (G)(2) of	153
this section by one hundred ten per cent;	154

(4) Multiply the amount determined under division (G)(3) of	155
this section by one hundred ten per cent;	156

(5) The amount determined under division (G)(4) of this	157
section is the salary benchmark.	158

(H) "Normal service pension benefit" means the pension	159
benefit payable to a member of the fund under division (C)(1) of	160
section 742.37 of the Revised Code upon attaining age forty-eight	161
attainment of the applicable age listed in that section.	162

(I) "Retirement allowance" means the total pension benefit or	163
disability benefit to which a member of the fund may be entitled	164
under division (C) of section 742.37 or section 742.39 of the	165
Revised Code.	166

(J) "Fiduciary" means a person who does any of the following:

167

(1) Exercises any discretionary authority or control with	168
respect to the management of the system, or with respect to the	169
management or disposition of its assets;	170

(2) Renders investment advice for a fee, direct or indirect,	171
with respect to money or property of the system;	172

(3) Has any discretionary authority or responsibility in the	173
administration of the system.	174

(K) "Terminal pay"Except as provided in rules authorized by	175
section 742.013 of the Revised Code, "terminal pay" means the	176
following payments made by an employer to an employee on	177
termination of employmentregardless of whether the payments are	178
made before or after termination:	179

(1) Payments for accrued but unused leave, including sick	180
leave, vacation, personal leave, and compensatory time;	181

(2) Payments deferred more than one year compensating the	182
employee for holidays worked or for longevity;	183

(3) Payments for overtime worked that are not included either	184
in the payroll for the period in which the overtime is worked or	185
for the next subsequent payroll for any period ending not later	186
than sixty days after the overtime is worked;	187

(4) Other payments that are not compensation for services	188
rendered in the last pay period in which services were rendered	189
and are designated as terminal pay by rule of the board of	190
trustees of the Ohio police and fire pension fund. The board shall	191
not designate as terminal pay payments deferred one year or less	192
compensating an employee for holidays worked or for longevity.	193

(L)(1) Except as otherwise provided in this division or in	194
rules authorized by section 742.013 of the Revised Code, "salary"	195
means all compensation, wages, and other earnings paid to an	196
employee by reason of employment, but without regard to whether	197
compensation, wages, or other earnings are treated as deferred	198
income for federal income tax purposes. "Salary" includes payments	199
for overtime that are made not later than the payroll following	200
the payroll period in which theincluded in the payroll for the	201
period in which the overtime is worked or the payroll for any	202
period not later than sixty days after the overtime is worked.	203

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

204

(a) Compensation for services outside the scope of an	205
employee's regular employment;	206

(b) Reimbursement of expenses;

207

(c) Terminal pay;

208

(d) Payments for accrued but unused sick leave or personal	209
leave, or vacation pay covering periods for which salary,	210
compensation, or benefits are paid;	211

(e) Payments made under division (B), (C), or (E) of section	212
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	213
No. 3 of the 119th general assembly, Section 3 of Amended	214
Substitute Senate Bill No. 164 of the 124th general assembly, or	215
Amended Substitute House Bill No. 405 of the 124th general	216
assembly;	217

(f) Payments made to or on behalf of an employee that are in	218
excess of the annual compensation that may be taken into account	219
by the fund under division (a)(17) of section 401 of the "Internal	220
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 401(a)(17), as	221
amended.	222

(3) The board shall determine by rule whether any	223
compensation, wages, or earnings not enumerated in this division	224
is salary, and its decision shall be final.	225

(M) "Actuary" means an individual who satisfies all of the	226
following requirements:	227

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

228

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

229

(3) Has a minimum of five years' experience in providing	230
actuarial services to public retirement plans.	231

Sec. 742.012. Contributions made to the Ohio police and fire	232
pension fund for salary that exceeds the salary benchmark	233
calculated under division (G) of section 742.01 of the Revised	234
Code shall be refunded in accordance with rules adopted by the	235
trustees of the board under section 742.10 of the Revised Code.	236

Sec. 742.013. The board may, by rule adopted under section	237
742.10 of the Revised Code, establish definitions of "terminal	238
pay" and "salary" that differ from those in divisions (K) and (L)	239
of section 742.01 of the Revised Code. In establishing the	240
definitions, the board may use elements of the compensation	241
provisions of the United States Internal Revenue Code and the	242
Internal Revenue Code form W-2, as those provisions are	243
interpreted by the internal revenue service of the United States	244
department of treasury.	245

Sec. 742.04.  As used in this section, "county" means the	246
county of residence of an individual who signs a nominating	247
petition.	248

Election of the employee members, firefighter retirant	249
member, and police retirant member of the board of trustees of the	250
Ohio police and fire pension fund shall be under the supervision	251
and direction of the board in accordance with rules adopted under	252
section 742.045 of the Revised Code.	253

Nominating petitions for candidates for an employee member of	254
the board elected by police officers shall be signed by at least	255
one hundred police officers, with at least twenty signers from	256
each of at least five counties of the state, and certified in	257
accordance with rules adopted under section 742.045 of the Revised	258
Code.	259

Nominating petitions for candidates for an employee member of	260
the board elected by firefighters shall be signed by at least one	261
hundred firefighters, with at least twenty signers from each of at	262
least five counties of the state, and certified in accordance with	263
rules adopted under section 742.045 of the Revised Code.	264

Nominating petitions for candidates for an employee member of	265
the board shall be filed in the office of the board not later than	266
four p.m. on the first Monday in April preceding the date of the	267
expiration of the term of the employee member of the board whose	268
successor is to be elected.	269

The board shall cause ballots to be prepared for the election	270
of employee members of the board which shall contain the names of	271
all candidates for whom certified nominating petitions have been	272
filed with the board.	273

A police officer or firefighter is eligible to vote in an	274
election if the police officer or firefighter is a member of the	275
fund on the thirty-first Monday in Marchday of January preceding	276
the date of the expiration of the term of the employee member of	277
the board whose successor is to be elected. The board shall	278
determine whether a member of the fund is eligible to vote at an	279
election and its decision shall be final.	280

On or before the first Monday in May preceding the date of	281
the expiration of the term of the employee member of the board	282
whose successor is to be elected, the board shall cause ballots to	283
be sent to each member of the fund who is eligible to vote at such	284
election to the address of such member as shown on the records of	285
the board.	286

Ballots shall be returned to the board not later than the	287
third Tuesday in May following the date that the ballots were	288
mailed to the members of the fund eligible to vote at such	289
election.	290

On certification of the election results in accordance with	291
rules adopted under section 742.045 of the Revised Code, the	292
person receiving the highest number of votes shall be elected as	293
an employee member of the board for a term of four years beginning	294
on the first Monday in June following such election.	295

Nominating petitions for candidates for the police retirant	296
member of the board shall be signed by at least fifty police	297
retirants, with at least ten signers from at least five counties	298
of the state, and certified in accordance with rules adopted under	299
section 742.045 of the Revised Code.	300

Nominating petitions for candidates for the firefighter	301
retirant member of the board shall be signed by at least fifty	302
firefighter retirants, with at least ten signers from at least	303
five counties of the state, and certified in accordance with rules	304
adopted under section 742.045 of the Revised Code.	305

Nominating petitions for candidates for the retirant members	306
of the board shall be filed in the office of the board not later	307
than four p.m. on the first Monday in April preceding the date of	308
the expiration of the term of the retirant member of the board	309
whose successor is to be elected.	310

The board shall cause ballots to be prepared for the election	311
of these board members which shall contain the names of all	312
candidates for whom certified nominating petitions have been filed	313
with the board.	314

A retirant is eligible to vote in an election if the retirant	315
is a police retirant or firefighter retirant on the thirty-first	316
Monday in Aprilday of January preceding the date of the	317
expiration of the term of the retirant member of the board whose	318
successor is to be elected. The board shall determine whether a	319
police retirant or firefighter retirant is eligible to vote at an	320
election and its decision shall be final.	321

On or before the first Monday in May preceding the date of	322
the expiration of the term of a retirant member of the board whose	323
successor is to be elected, the board shall cause ballots to be	324
sent to each person who is eligible to vote in the election to the	325
address of the person as shown on the records of the board.	326

Ballots shall be returned to the board not later than the	327
third Tuesday in May following the date that the ballots were	328
mailed to the persons eligible to vote in the election.	329

On certification of the election results in accordance with	330
rules adopted under section 742.045 of the Revised Code, the	331
person receiving the highest number of votes shall be elected as	332
the police retirant member or the firefighter retirant member of	333
the board for a term of four years beginning on the first Monday	334
in June following the election.	335

Sec. 742.10.  The board of trustees of the Ohio police and	336
fire pension fund may sue and be sued, plead and be impleaded,	337
contract and be contracted with, employ and fix the compensation	338
of employees, and adopt rules for the proper administration and	339
management of the fund.	340

Effective ninety days after the effective date of this	341
amendmentSeptember 15, 2004, the board of trustees may not employ	342
a state retirement system investment officer, as defined in	343
section 1707.01 of the Revised Code, who does not hold a valid	344
state retirement system investment officer license issued by the	345
division of securities in the department of commerce.	346

If the Ohio retirement study council establishes a uniform	347
format for any report the board is required to submit to the	348
council, the board shall submit the report in that format.	349

The attorney general shall prescribe procedures for the	350
adoption of rules authorized under this chapter, consistent with	351
the provisions of section 111.15 of the Revised Code under which	352
all rules shall be filed in order to be effective. Such procedures	353
shall establish methods by which notice of proposed rules is given	354
to interested parties and rules adopted by the board published and	355
otherwise made available. When it files a rule with the joint	356
committee on agency rule review pursuant to section 111.15 of the	357
Revised Code, the board shall submit to the Ohio retirement study	358
council a copy of the full text of the rule, and if applicable, a	359
copy of the rule summary and fiscal analysis required by division	360
(B) of section 127.18 of the Revised Code.	361

All rules adopted pursuant to this chapter, prior to August	362
20, 1976, shall be published and made available to interested	363
parties by January 1, 1977.	364

Sec. 742.14.  (A) The board of trustees of the Ohio police	365
and fire pension fund shall have prepared annuallytriennially by	366
or under the supervision of an actuary an actuarial valuation of	367
the pension assets, liabilities, and funding requirements of the	368
Ohio police and fire pension fund as established pursuant to	369
sections 742.01 to 742.61 of the Revised Code. The actuary shall	370
complete the valuation in accordance with actuarial standards of	371
practice promulgated by the actuarial standards board of the	372
American academy of actuaries and prepare a report of the	373
valuation. The report shall include all of the following:	374

(1) A summary of the benefit provisions evaluated;

375

(2) A summary of the census data and financial information	376
used in the valuation;	377

(3) A description of the actuarial assumptions, actuarial	378
cost method, and asset valuation method used in the valuation,	379
including a statement of the assumed rate of payroll growth and	380
assumed rate of growth or decline in the number of members of the	381
fund contributing to the pension fund;	382

(4) A summary of findings that includes a statement of the	383
actuarial accrued pension liabilities and unfunded actuarial	384
accrued pension liabilities;	385

(5) A schedule showing the effect of any changes in the	386
benefit provisions, actuarial assumptions, or cost methods since	387
the last annual actuarial valuation;	388

(6) A statement of whether employee and employer	389
contributions to the pension fund are expected to be sufficient to	390
satisfy the funding objectives established by the board.	391

The board shall submit thefirst triennial report shall be	392
made not later than November 1, 2013, to the Ohio retirement study	393
council and the standing committees of the house of	394
representatives and the senate with primary responsibility for	395
retirement legislation not later than the first day of November	396
following the year for which the valuation was madeand thereafter	397
triennially, not later than the first day of November.	398

(B) The board shall annually thereafter have prepared by an	399
actuary a report showing the adequacy of the rate of the police	400
officer employers' contribution provided for by section 742.33 of	401
the Revised Code, and the adequacy of the rate of the firefighter	402
employers' contribution provided for by section 742.34 of the	403
Revised Code.	404

(C) At such times as the board determines, and at least once	405
in each quinquennial period, the board shall have prepared by or	406
under the supervision of an actuary an actuarial investigation of	407
the mortality, service, and other experience of the members of the	408
fund and of other system retirants, as defined in section 742.26	409
of the Revised Code, who are members of a police department or a	410
fire department to update the actuarial assumptions used in the	411
actuarial valuation required by division (A) of this section. The	412
actuary shall prepare a report of the actuarial investigation. The	413
report shall be prepared and any recommended changes in actuarial	414
assumptions shall be made in accordance with the actuarial	415
standards of practice promulgated by the actuarial standards board	416
of the American academy of actuaries. The report shall include all	417
of the following:	418

(1) A summary of relevant decrement and economic assumption	419
experience observed over the period of the investigation;	420

(2) Recommended changes in actuarial assumptions to be used	421
in subsequent actuarial valuations required by division (A) of	422
this section;	423

(3) A measurement of the financial effect of the recommended	424
changes in actuarial assumptions;	425

(4) If the investigation required by this division includes	426
the investigation required by division (F)(E) of this section, a	427
report of the result of that investigation.	428

The board shall submit the report to the Ohio retirement	429
study council and the standing committees of the house of	430
representatives and the senate with primary responsibility for	431
retirement legislation not later than the first day of November	432
following the last fiscal year of the period the report covers.	433

(D)(C) The board shall have prepared by or under the	434
supervision of an actuary an actuarial analysis of any introduced	435
legislation expected to have a measurable financial impact on the	436
pension fund. The actuarial analysis shall be completed in	437
accordance with the actuarial standards of practice promulgated by	438
the actuarial standards board of the American academy of	439
actuaries. The actuary shall prepare a report of the actuarial	440
analysis, which shall include all of the following:	441

(1) A summary of the statutory changes that are being	442
evaluated;	443

(2) A description of or reference to the actuarial	444
assumptions and actuarial cost method used in the report;	445

(3) A description of the participant group or groups included	446
in the report;	447

(4) A statement of the financial impact of the legislation,	448
including the resulting increase, if any, in the employer normal	449
cost percentage; the increase, if any, in actuarial accrued	450
liabilities; and the per cent of payroll that would be required to	451
amortize the increase in actuarial accrued liabilities as a level	452
per cent of covered payroll for all active members of the fund	453
over a period not to exceed thirty years;	454

(5) A statement of whether the scheduled contributions to the	455
system after the proposed change is enacted are expected to be	456
sufficient to satisfy the funding objectives established by the	457
board.	458

Not later than sixty days from the date of introduction of	459
the legislation, the board shall submit a copy of the actuarial	460
analysis to the legislative service commission, the standing	461
committees of the house of representatives and the senate with	462
primary responsibility for retirement legislation, and the Ohio	463
retirement study council.	464

(E)(D) The board shall have prepared annuallytriennially a	465
report giving a full accounting of the revenues and costs relating	466
to the provision of benefits under section 742.45 of the Revised	467
Code. The first triennial report shall be made as of December 31,	468
19972013, and the thirty-first day of December of each year	469
triennially thereafter. The report shall include the following:	470

(1) A description of the statutory authority for the benefits	471
provided;	472

(2) A summary of the benefits;

473

(3) A summary of the eligibility requirements for the	474
benefits;	475

(4) A statement of the number of participants eligible for	476
the benefits;	477

(5) A description of the accounting, asset valuation, and	478
funding method used to provide the benefits;	479

(6) A statement of the net assets available for the provision	480
of the benefits as of the last day of the fiscal year;	481

(7) A statement of any changes in the net assets available	482
for the provision of benefits, including participant and employer	483
contributions, net investment income, administrative expenses, and	484
benefits provided to participants, as of the last day of the	485
fiscal year;	486

(8) For the last six consecutive fiscal years, a schedule of	487
the net assets available for the benefits, the annual cost of	488
benefits, administrative expenses incurred, and annual employer	489
contributions allocated for the provision of benefits;	490

(9) A description of any significant changes that affect the	491
comparability of the report required under this division;	492

(10) A statement of the amount paid under division (B) of	493
section 742.45 of the Revised Code.	494

The board shall submit the report to the Ohio retirement	495
study council and the standing committees of the house of	496
representatives and the senate with primary responsibility for	497
retirement legislation not later than the thirtieth day of June	498
following the year for which the report was made.	499

(F)(E) At least once in each quinquennial period, the board	500
shall have prepared by or under the supervision of an actuary an	501
actuarial investigation of the deferred retirement option plan	502
established under section 742.43 of the Revised Code. The	503
investigation shall include an examination of the financial	504
impact, if any, on the fund of offering the plan to members.	505

The actuary shall prepare a report of the actuarial	506
investigation. The report shall include a determination of whether	507
the plan, as established or modified, has a negative financial	508
impact on the fund and, if so, recommendations on how to modify	509
the plan to eliminate the negative financial impact. If the	510
actuarial report indicates that the plan has a negative financial	511
impact on the fund, the board may modify the plan or cease to	512
allow members who have not already done so to elect to participate	513
in the plan. The firefighter and police officers employers'	514
contributions shall not be increased to offset any negative	515
financial impact of the plan.	516

If the board ceases to allow members to elect to participate	517
in the plan, the rights and obligations of members who have	518
already elected to participate shall not be altered.	519

The board may include the actuarial investigation required	520
under this division as part of the actuarial investigation	521
required under division (C)(B) of this section. If the report of	522
the actuarial investigation required by this division is not	523
included in the report required by division (C)(B) of this	524
section, the board shall submit the report required by this	525
division to the Ohio retirement study council and the standing	526
committees of the house of representatives and the senate with	527
primary responsibility for retirement legislation not later than	528
the first day of November following the last fiscal year of the	529
period the report covers.	530

Sec. 742.16.  The board of trustees of the Ohio police and	531
fire pension fund shall establish a period of not more than thirty	532
years to amortize the Ohio police and fire pension fund's unfunded	533
actuarial accrued pension liabilities. The board shall adopt a	534
plan that specifies how it proposes to meet the thirty-year	535
amortization period not later than December 31, 2006. If in any	536
year the period necessary to amortize the unfunded actuarial	537
accrued pension liability exceeds thirty years, as determined by	538
the annual actuarial valuation required by section 742.14 of the	539
Revised Code, the board, not later than ninety days after receipt	540
of the valuation, shall prepare and submit to the Ohio retirement	541
study council and the standing committees of the house of	542
representatives and the senate with primary responsibility for	543
retirement legislation a report that includes the following	544
information:	545

(A) The number of years needed to amortize the unfunded	546
actuarial accrued pension liability as determined by the annual	547
actuarial valuation;	548

(B) A plan approved by the board that indicates how the board	549
will reduce the amortization period of unfunded actuarial accrued	550
pension liability to not more than thirty years;	551

(C) Whether the board has made any progress in meeting the	552
thirty-year amortization period.	553

Sec. 742.161. The board may, by rule adopted under section	554
742.10 of the Revised Code, increase the age and years of service	555
credit required to receive a pension or benefit under division (C)	556
of section 742.35 of the Revised Code if, in consultation with its	557
actuary, the board determines that an increase is necessary to	558
meet the amortization period requirement of section 742.16 of the	559
Revised Code.	560

Sec. 742.30.  (A) The employer's accrued liability, as	561
determined pursuant to former section 742.29 of the Revised Code,	562
shall be paid to the Ohio police and fire pension fund. Payments	563
shall be credited to the police officers' pension reserve fund, or	564
to the firefighters' pension reserve fund, in accordance with the	565
relief and pension fund from which the liability for such payment	566
arises, until such time as the employer's accrued liability on	567
account of pensioners and other benefit recipients on the rolls of	568
the particular police relief and pension fund or firemen's relief	569
and pension fund is satisfied. Thereafter, payments shall be	570
credited to the police officers' contribution fund or the	571
firefighters' contribution fund, in accordance with the relief and	572
pension fund from which the liability for such payments arises,	573
until such time as the employer's accrued liability on account of	574
deductions made from the compensation of police officers or	575
firefighters under the particular police relief and pension fund	576
or firemen's relief and pension fund is satisfied. Thereafter,	577
payments shall be credited to the police officer employers'	578
contribution fund, or firefighter employers' contribution fund, in	579
accordance with the relief and pension fund from which the	580
liability for such payments arises, until such time as the	581
employer's total accrued liability under the particular police	582
relief and pension fund or firemen's relief and pension fund is	583
satisfied.	584

(B) That part of the employer's accrued liability remaining	585
unpaid on January 1, 1969, shall be paid by the employer at not	586
less than the following rates per year: two per cent in 1969, two	587
per cent in 1970, three per cent in 1971, four per cent in 1972,	588
and five per cent per annum beginning in 1973 and each year	589
thereafter for sixty-two years. Except as provided in division (C)	590
of this section, payments shall be fixed annually and paid on	591
dates fixed by the board of trustees of the Ohio police and fire	592
pension fund.	593

(C) The board may enter into an agreement with a municipal	594
corporation or township for a single payment by the municipal	595
corporation or township of the employer's accrued liability. The	596
agreement may provide for a reduction in the amount of the accrued	597
liability based on the value to the fund of receiving a single	598
payment. A municipal corporation or township that has made payment	599
in accordance with such an agreement shall have no further	600
obligation to make payments under this section.	601

(D) The board shall report every twothree years to the	602
general assembly during its first regular session on the condition	603
of the retirement system, with particular emphasis upon the	604
payment of the employer's accrued liability, and make such	605
recommendations, upon the advice of its actuary, as it considers	606
necessary for the proper funding of the liabilities.	607

Sec. 742.301. (A) Each employer shall promptly pay the amount	608
due on the accrued liability on the dates fixed by the board of	609
trustees of the Ohio police and fire pension fund. Upon	610
certification by the board that payment of an employer's accrued	611
liability has not been paid within thirty days following the date	612
a payment is due, a penalty of five per cent of the amount due	613
shall be assessed against such employer. If the payment and	614
penalty have not been paid within ninety days following the date a	615
payment is due, annual interest at six per cent shall be assessed	616
against the payment and penalty from the date that the payment is	617
due.	618

(B) Upon certification by the board to the superintendent of	619
liquor control or the county auditor of an amount due from any	620
employer who is subject to this chapter by reason of such	621
employer's delinquency in making payments on the accrued	622
liability, the amount due shall be withheld from the employer from	623
liquor control permit fees to be distributed to that employer	624
according to Chapter 4301. of the Revised Code or from the local	625
government fund allocated for distribution to that employer by the	626
county budget commission in accordance with Chapter 5739. of the	627
Revised Code. Upon receipt of the certification from the board,	628
the superintendent or county auditor shall provide for payment	629
against such funds in favor of the Ohio police and fire pension	630
fund for the certified amount due and any penalty and interest	631
thereon.	632

(C) If the payments under divisions (A) and (B) of this	633
section are insufficient to pay the Ohio police and fire pension	634
fund any amounts due the fund from an employer, the fund may seek	635
payment through the office of budget and management. On	636
certification by the board to the director of budget and	637
management of any such amount due, the director shall withhold	638
from the employer any amount available, not to exceed the amount	639
certified as due the fund, from any amounts under the director's	640
control that are payable or due the employer. The director shall	641
pay the amount withheld to the fund.	642

Sec. 742.31. (A) Each employee shall contribute an amount	643
equal to ten per centa percentage of the employee's salary to the	644
Ohio police and fire pension fund. Theaccording to the following	645
schedule:	646

(1) For salary earned in pay periods beginning not later than	647
July 1, 2013, ten per cent;	648

(2) For salary earned in pay periods beginning not earlier	649
than July 2, 2013, but not later than July 1, 2014, ten and	650
three-quarters per cent;	651

(3) For salary earned in pay periods beginning not earlier	652
than July 2, 2014, but not later than July 1, 2015, eleven and	653
one-half per cent;	654

(4) Except as provided in division (B) of this section, for	655
salary earned in pay periods beginning not earlier than July 2,	656
2015, twelve and one-quarter per cent.	657

(B) Not earlier than July 2, 2015, the board may, by rule,	658
increase the employee contribution rates to the fund if the board,	659
in consultation with its actuary, determines that an increase is	660
necessary to meet the amortization requirements of section 742.16	661
of the Revised Code.	662

(C) The amount shall be deducted by the employer from the	663
employee's salary as defined in division (L) of section 742.01 of	664
the Revised Code for each payroll period, irrespective of whether	665
the minimum compensation provided by law for the employee is	666
reduced thereby. Every employee shall be deemed to consent to the	667
deductions, and payment to the employee less the deductions is a	668
complete discharge and acquittance of all claims and demands for	669
the services rendered by the employee during the period covered by	670
such payment.	671

Sec. 742.32. (A) The fiscal officer of each employer shall	672
transmit monthly to the secretary of the board of trustees of the	673
Ohio police and fire pension fund a report of employee deductions	674
in such form as the board requires. The report shall show all	675
deductions for the fund made pursuant to section 742.31 of the	676
Revised Code and shall be accompanied by payments covering the	677
total of such deductions. The report shall also include the name	678
of each member for whom deductions were made and the portion of	679
the payment attributed to that member. Separate payments shall be	680
so transmitted for that portion of such deductions made from the	681
salaries of members of the police department and for that portion	682
of such deductions made from the salaries of members of the fire	683
department. The report and payment are due the last day of the	684
month following the last business day of the reporting period. A	685

(B) A penalty determined under section 742.352 of the Revised	686
Code shall be assessed if any of the following occur:	687

(A)(1) The report is received by the board after the due date	688
or is not in the form required by the board.	689

(B)(2) Payments to cover the total amount due from the	690
salaries of all employees of the employer are received by the	691
board after the due date.	692

The penalty shall be added to and collected on the next	693
succeeding regular employer billing. If the penalty is not paid	694
within sixty days after it is added to the regular employer	695
billing, interest at a rate determined by the board may be charged	696
on the total amount due and the amount of the penalty from the	697
date the amount is due to the date of payment.	698

(C) The secretary of the board, after making a record of all	699
such receipts and crediting each employee's individual account	700
with the amount deducted from the employee's salary, shall deposit	701
the receipts with the treasurer of state for use as provided by	702
this chapter. Where an employer fails to deduct contributions for	703
any employee and transmit such amounts to the fund, the board may	704
make a determination of the employee's liability for contributions	705
and certify to the employer the amounts due for collection in the	706
same manner and subject to the same penalties as payments due the	707
employer's contributions funds.	708

Sec. 742.33.  (A) Each employer shall pay quarterlymonthly,	709
on such dates as the board of trustees of the Ohio police and fire	710
pension fund requires, from its general fund, or from a levy	711
imposed pursuant to division (J) or (W) of section 5705.19 of the	712
Revised Code, to the fund an amount known as the "police officer	713
employers' contribution," which shall be nineteen and one-half per	714
cent of the salaries as defined in division (L) of section 742.01	715
of the Revised Code of the members of the police department of the	716
employer.	717

(B) The taxing authority of each municipal corporation in	718
which there was a police relief and pension fund on October 1,	719
1965, shall annually, in the manner provided for making other	720
municipal levies and in addition to all other levies authorized by	721
law, levy a tax of three-tenths of one mill upon all the real and	722
personal property as listed for taxation in the municipal	723
corporation for the purpose of paying the police officer	724
employers' contribution and the municipal corporation's accrued	725
liability for its former police relief and pension fund and	726
interest thereon, and of defraying the current operating expenses	727
of the municipal corporation. The annual revenues derived from the	728
tax shall be used in the following order:	729

(1) First, to pay the current police officer employers'	730
contribution and any interest related thereto;	731

(2) Second, to pay any accrued liability chargeable to the	732
municipal corporation during the current calendar year for its	733
former police relief and pension fund and any interest related	734
thereto;	735

(3) Third, to defray the current operating expenses of the	736
municipal corporation.	737

Sec. 742.34.  (A) Each employer shall pay quarterlymonthly,	738
on such dates as the board of trustees of the Ohio police and fire	739
pension fund requires, from its general fund, or from a levy	740
imposed pursuant to division (I) or (W) of section 5705.19 of the	741
Revised Code, to the fund an amount known as the "firefighter	742
employers' contribution," which shall be twenty-four per cent of	743
the salaries as defined in division (L) of section 742.01 of the	744
Revised Code of the members of the fire department of the	745
employer.	746

(B) The taxing authority of each municipal corporation in	747
which there was a firemen's relief and pension fund on October 1,	748
1965, shall annually, in the manner provided for making other	749
municipal levies and in addition to all other levies authorized by	750
law, levy a tax of three-tenths of one mill upon all the real and	751
personal property as listed for taxation in the municipal	752
corporation for the purpose of paying the firefighter employers'	753
contribution and the municipal corporation's accrued liability for	754
its former firemen's relief and pension fund and interest thereon,	755
and of defraying the current operating expenses of the municipal	756
corporation. The annual revenues derived from the tax shall be	757
used in the following order:	758

(1) First, to pay the current firefighter employers'	759
contribution and any interest related thereto;	760

(2) Second, to pay any accrued liability chargeable to the	761
municipal corporation during the current calendar year for its	762
former firemen's relief and pension fund and any interest related	763
thereto;	764

(3) Third, to defray the current operating expenses of the	765
municipal corporation.	766

Sec. 742.35. As used in this section, "calendar quarter"	767
means the three-month period ending on the last day of March,	768
June, September, or December.	769

Each employer shall pay its annual police officer employers'	770
contribution and firefighter employers' contribution in four equal	771
installments promptlymonthly payments as provided in sections	772
742.33 and 742.34 of the Revised Code. If an employer fails to	773
make a payment on or before the date that is sixty days after the	774
last day of the calendar quarterThe employer shall make each	775
payment not later than the last day of the month after the month	776
for which the police officer or firefighter employee contributions	777
were withheld. If an employer fails to make the payment	778
installment by the date it is due, a penalty determined under	779
section 742.352 of the Revised Code shall be assessed against the	780
employer. In addition, interest on past due accounts and penalties	781
may be charged at a rate determined by the board from the date the	782
installmentpayment is due to the date of payment.	783

Upon certification by the board to the county auditor of an	784
amount due from any employer within the county who is subject to	785
this chapter, by reason of such employer's delinquency in making	786
employer contribution payments to the fund for past months, such	787
amount shall be withheld from such employer from any funds in the	788
hands of the county treasurer for distribution to such employer.	789
Upon receipt of such certification, the county auditor shall draw	790
a warrant against such funds in favor of the fund for the amount.	791

Sec. 742.37.  The board of trustees of the Ohio police and	792
fire pension fund shall adopt rules for the management of the fund	793
and for the disbursement of benefits and pensions as set forth in	794
this section and section 742.39 of the Revised Code. Any payment	795
of a benefit or pension under this section is subject to the	796
provisions of section 742.461 of the Revised Code. Notwithstanding	797
any other provision of this section, no pension or benefit paid or	798
determined under division (B) or (C) of this section or section	799
742.39 of the Revised Code shall exceed the limit established by	800
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	801
2085, 26 U.S.C.A. 415, as amended.	802

(A) Persons who were receiving benefit or pension payments	803
from a police relief and pension fund established under former	804
section 741.32 of the Revised Code, or from a firemen's relief and	805
pension fund established under former section 521.02 or 741.02 of	806
the Revised Code, at the time the assets of the fund were	807
transferred to the Ohio police and fire pension fund, known at	808
that time as the police and firemen's disability and pension fund,	809
shall receive benefit and pension payments from the Ohio police	810
and fire pension fund in the same amount and subject to the same	811
conditions as such payments were being made from the former fund	812
on the date of the transfer.	813

(B) A member of the fund who, pursuant to law, elected to	814
receive benefits and pensions from a police relief and pension	815
fund established under former section 741.32 of the Revised Code,	816
or from a firemen's relief and pension fund established under	817
former section 741.02 of the Revised Code, in accordance with the	818
rules of the fund governing the granting of benefits or pensions	819
therefrom in force on April 1, 1947, shall receive benefits and	820
pensions from the Ohio police and fire pension fund in accordance	821
with such rules; provided, that any member of the fund who is not	822
receiving a benefit or pension from the fund on August 12, 1975,	823
may, upon application for a benefit or pension to be received on	824
or after August 12, 1975, elect to receive a benefit or pension in	825
accordance with division (C) of this section.	826

(C) MembersUnless the board acts under section 742.161 of	827
the Revised Code, members of the fund who have not elected to	828
receive benefits and pensions from a police relief and pension	829
fund or a firemen's relief and pension fund in accordance with the	830
rules of the fund in force on April 1, 1947, shall receive	831
pensions and benefits in accordance with the following provisions:	832

(1) A member of the fund who has completed twenty-five years	833
of active service in a police or fire departmentcredit and has	834
attained forty-eight years ofthe requisite age may, at the	835
member's election,elect to retire from the police or fire	836
department. UponThe requisite age is forty-eight for a member	837
whose membership began before July 2, 2013, and fifty-two for a	838
member whose membership began on or after that date.	839

Upon notifying the board in writing of the election, the	840
member shall receive an annual pension, payable in twelve monthly	841
installments, in an amount equal to a percentage of the member's	842
average annual salary. TheIf, as of July 2, 2013, the member had	843
fifteen or more years of service credit, the average annual salary	844
shall be determined using three years of contributions. If, as of	845
that date, the member had less than fifteen years of service	846
credit, the average annual salary shall be determined using five	847
years of contributions.	848

The percentage shall be the sum of two and one-half per cent	849
for each of the first twenty years the member was in the active	850
of service of the departmentcredit, plus two per cent for each of	851
the twenty-first to twenty-fifth years the member was in the	852
activeof service of the departmentcredit, plus one and one-half	853
per cent for each year in excess of twenty-five years the member	854
was in the activeof service of the departmentcredit. The annual	855
pension shall not exceed seventy-two per cent of the member's	856
average annual salary.	857

A member who completedhas twenty-five years of active	858
service credit, has resigned or been discharged, and has left the	859
sum deducted from the member's salary on deposit in the pension	860
fund shall, upon attaining forty-eight years ofthe requisite age,	861
be entitled to receive a normal service pension benefit computed	862
and paid under division (C)(1) of this section.	863

While participating in the deferred retirement option plan	864
established under section 742.43 of the Revised Code, a member	865
shall not be considered to have elected retirement under division	866
(C)(1) of this section. On notifying the board under division	867
(B)(1) of section 742.444 of the Revised Code of the member's	868
election to terminate active service, a member described in	869
division (B) of that section shall receive an annual pension under	870
division (C)(1) of this section calculated in accordance with	871
section 742.442 of the Revised Code and rules that shall be	872
adopted by the board of trustees of the Ohio police and fire	873
pension fund.	874

(2) A member of the fund who has served fifteen or more years	875
as an active member of a police or fire departmentservice credit	876
and who voluntarily resigns or is discharged from the department	877
for any reason other than dishonesty, cowardice, intemperate	878
habits, or conviction of a felony, shall receive an annual	879
pension, payable in twelve monthly installments, in an amount	880
equal to one and one-half per cent of the member's average annual	881
salary multiplied by the number of full years of the member was in	882
the activemember's service of the departmentcredit. TheIf, as	883
of July 2, 2013, the member had fifteen or more years of service	884
credit, the average annual salary shall be determined using three	885
years of contributions. If, as of that date, the member had less	886
than fifteen years of service credit, the average annual salary	887
shall be determined using five years of contributions.	888

If a member's membership began before July 2, 2013, the	889
pension payments shall not commence until the member has attained	890
the age of forty-eight years and until twenty-five years have	891
elapsed from the date on which the member became a full-time	892
regular police officer or firefighter in the department. Pension	893
payments shall not commence for a member whose membership began on	894
or after July 2, 2013, until the member has attained the age of	895
fifty-two years and until twenty-five years have elapsed from the	896
date on which the member became a full-time regular police officer	897
or firefighter.	898

(3) A member of the fund who has completed fifteen or more	899
years of active service in a police or fire departmentcredit and	900
who has attained sixty-two years of age, may retire from the	901
department and, upon notifying the board in writing of the	902
election to retire, shall receive an annual pension, payable in	903
twelve monthly installments, in an amount equal to a percentage of	904
the member's average annual salary. If, as of July 2, 2013, the	905
member had fifteen or more years of service credit, the average	906
annual salary shall be determined using three years of	907
contributions. If, as of that date, the member had less than	908
fifteen years of service credit, the average annual salary shall	909
be determined using five years of contributions. The percentage	910
shall be the sum of two and one-half per cent for each of the	911
first twenty years the member was in the activeof service of the	912
departmentcredit, plus two per cent for each of the twenty-first	913
to twenty-fifth years the member was in the activeof service of	914
the departmentcredit, plus one and one-half per cent for each	915
year in excess of twenty-five years the member was in the active	916
of service of the departmentcredit. The annual pension shall not	917
exceed seventy-two per cent of the member's average annual salary.	918

(4) A member of the fund whose membership began on or after	919
July 2, 2013, and who has twenty-five years of service credit and	920
has attained forty-eight years of age may elect to retire. Upon	921
notifying the board in writing of the election, the member shall	922
receive an annual pension, payable in twelve monthly installments,	923
in an amount determined under division (C)(1) of this section	924
except that the amount shall be reduced to be the actuarial	925
equivalent, as determined by the fund's actuary, of the amount	926
payable had the member retired at fifty-two years of age.	927

(5) With the exception of those persons who may make	928
application for benefits as provided in section 742.26 of the	929
Revised Code, no person receiving a pension or other benefit under	930
division (C) of this section on or after July 24, 1986, shall be	931
entitled to apply for any new, changed, or different benefit.	932

If a member covered by division (C) of this section or	933
section 742.38 of the Revised Code dies prior to the time the	934
member has received a payment and leaves a surviving spouse or	935
dependent child, the surviving spouse or dependent child shall	936
receive a pension under division (D) or (E) of this section.	937

(D)(1) Except as provided in division (D)(2) of this section,	938
a surviving spouse of a deceased member of the fund or a surviving	939
spouse described in division (D)(4) of this section shall receive	940
a monthly pension as follows:	941

(a) For the period beginning July 1, 1999, and ending June	942
30, 2000, five hundred fifty dollars;	943

(b) For the period beginning July 1, 2000, and ending June	944
30, 2002, five hundred fifty dollars plus an amount determined by	945
multiplying five hundred fifty dollars by the average percentage	946
change in the consumer price index, not exceeding three per cent,	947
as was annually determined by the board under former section	948
742.3716 of the Revised Code as that section existed on January	949
31, 2002;	950

(c) For the period beginning July 1, 2002, and the period	951
beginning the first day of July of each year thereafter and	952
continuing for the following twelve months, an amount equal to the	953
monthly amount paid during the prior twelve-month period plus	954
sixteen dollars and fifty cents.	955

(2) A surviving spouse of a deceased member of the fund shall	956
receive a monthly pension of four hundred ten dollars if the	957
surviving spouse is eligible for a benefit under division (B) or	958
(D) of section 742.63 of the Revised Code. If the surviving spouse	959
ceases to be eligible for a benefit under division (B) or (D) of	960
section 742.63 of the Revised Code, the pension shall be	961
increased, effective the first day of the first month following	962
the day on which the surviving spouse ceases to be eligible for	963
the benefit, to the amount it would be under division (D)(1) of	964
this section had the spouse never been eligible for a benefit	965
under division (B) or (D) of section 742.63 of the Revised Code.	966

(3) A pension paid under this division shall continue during	967
the natural life of the surviving spouse. Benefits to a deceased	968
member's surviving spouse that were terminated under a former	969
version of this section that required termination due to	970
remarriage and were not resumed prior to September 16, 1998, shall	971
resume on the first day of the month immediately following receipt	972
by the board of an application on a form provided by the board.	973

(4) A surviving spouse of a deceased member of or contributor	974
to a fund established under former Chapter 521. or 741. of the	975
Revised Code whose benefit or pension was terminated or not paid	976
due to remarriage shall receive a monthly pension under division	977
(D)(1) of this section.	978

The pension shall commence on the first day of the month	979
immediately following receipt by the board of a completed	980
application on a form provided by the board and evidence	981
acceptable to the board that at the time of death the deceased	982
spouse was a member of or contributor to a police or firemen's	983
relief and pension fund established under former Chapter 521. or	984
741. of the Revised Code and that the surviving spouse's benefits	985
were terminated or not granted due to remarriage.	986

(E)(1) Each surviving child of a deceased member of the fund	987
shall receive a monthly pension until the child attains the age of	988
eighteen years, or marries, whichever event occurs first. A	989
pension under this division, however, shall continue to be payable	990
to a child under age twenty-two who is a student in and attending	991
an institution of learning or training pursuant to a program	992
designed to complete in each school year the equivalent of at	993
least two-thirds of the full-time curriculum requirements of the	994
institution, as determined by the board. If any surviving child,	995
regardless of age at the time of the member's death, because of	996
physical or mental disability, is totally dependent upon the	997
deceased member for support at the time of death, the child shall	998
receive a monthly pension under this division during the child's	999
natural life or until the child has recovered from the disability.	1000

(2) An eligible surviving child shall receive a monthly	1001
pension as follows:	1002

(a) For the period beginning July 1, 2001, and ending June	1003
30, 2002, a monthly pension of one hundred fifty dollars plus the	1004
cost of living increase provided for inthat was determined under	1005
former section 742.3720 of the Revised Code;	1006

(b) For the period beginning July 1, 2002, and ending June	1007
30, 2003, one hundred sixty-three dollars and fifty cents;	1008

(c) For the period beginning July 1, 2003, and the period	1009
beginning the first day of each July thereafter and continuing for	1010
the following twelve months, an amount equal to the monthly amount	1011
paid during the prior twelve-month period plus four dollars and	1012
fifty cents.	1013

(F)(1) If a deceased member of the fund leaves no surviving	1014
spouse or surviving children, but leaves one or two parents	1015
dependent upon the deceased member for support, each parent shall	1016
be paid a monthly pension. The pensions provided for in this	1017
division shall be paid during the natural life of the surviving	1018
parents, or until dependency ceases, or until remarriage,	1019
whichever event occurs first.	1020

(2) Each eligible surviving parent shall be paid a monthly	1021
pension as follows:	1022

(a) For the period ending June 30, 2002, one hundred six	1023
dollars for each parent or two hundred twelve dollars for a sole	1024
dependent parent;	1025

(b) For the period beginning July 1, 2002, and ending June	1026
30, 2003, one hundred nine dollars for each parent or two hundred	1027
eighteen dollars for a sole dependent parent;	1028

(c) For the period beginning July 1, 2003, and the first day	1029
of each July thereafter and continuing for the following twelve	1030
months, an amount equal to the monthly amount paid during the	1031
prior twelve-month period plus three dollars for each parent or	1032
six dollars for a sole dependent parent.	1033

(G)(1) Subject to the provisions of section 742.461 of the	1034
Revised Code, a member of the fund who voluntarily resigns or is	1035
removed from active service in a police or fire department is	1036
entitled to receive an amount equal to the sums deducted from the	1037
member's salary and credited to the member's account in the fund,	1038
except that a member receiving a disability benefit or service	1039
pension is not entitled to receive any return of contributions to	1040
the fund.	1041

(2) A member described in division (G)(1) of this section who	1042
is married at the time of application for payment and would be	1043
eligible for age and service retirement under this section or	1044
section 742.39 of the Revised Code but for a forfeiture ordered	1045
under division (A) or (B) of section 2929.192 of the Revised Code	1046
shall submit with the application a written statement by the	1047
member's spouse attesting that the spouse consents to the payment	1048
of the member's accumulated contributions. Consent shall be valid	1049
only if it is signed and witnessed by a notary public. The board	1050
may waive the requirement of consent if the spouse is	1051
incapacitated or cannot be located, or for any other reason	1052
specified by the board. Consent or waiver is effective only with	1053
regard to the spouse who is the subject of the consent or waiver.	1054

(H) On and after January 1, 1970, all pensions shall be	1055
increased in accordance with the following provisions:	1056

(1) A member of the fund who retired prior to January 1,	1057
1967, has attained age sixty-five on January 1, 1970, and was	1058
receiving a pension on December 31, 1969, pursuant to division (B)	1059
or (C)(1) of this section or former division (C)(2), (3), (4), or	1060
(5) of this section, shall have the pension increased by ten per	1061
cent.	1062

(2) The monthly pension payable to eligible surviving spouses	1063
under division (D) of this section shall be increased by forty	1064
dollars for each surviving spouse receiving a pension on December	1065
31, 1969.	1066

(3) The monthly pension payable to each eligible child under	1067
division (E) of this section shall be increased by ten dollars for	1068
each child receiving a pension on December 31, 1969.	1069

(4) The monthly pension payable to each eligible dependent	1070
parent under division (F) of this section shall be increased by	1071
thirty dollars for each parent receiving a pension on December 31,	1072
1969.	1073

(5) A member of the fund, including a survivor of a member,	1074
who is receiving a pension in accordance with the rules governing	1075
the granting of pensions and benefits in force on April 1, 1947,	1076
that provide an increase in the original pension from time to time	1077
pursuant to changes in the salaries of active members, shall not	1078
be eligible for the benefits provided in this division.	1079

(I) On and after January 1, 1977, a member of the fund who	1080
was receiving a pension or benefit on December 31, 1973, under	1081
division (A), (B), (C)(1), or former division (C)(2) or (7) of	1082
this section shall have the pension or benefit increased as	1083
follows:	1084

(1) If the member's annual pension or benefit is less than	1085
two thousand seven hundred dollars, it shall be increased to three	1086
thousand dollars.	1087

(2) If the member's annual pension or benefit is two thousand	1088
seven hundred dollars or more, it shall be increased by three	1089
hundred dollars.	1090

The following shall not be eligible to receive increased	1091
pensions or benefits as provided in this division:	1092

(a) A member of the fund who is receiving a pension or	1093
benefit in accordance with the rules in force on April 1, 1947,	1094
governing the granting of pensions and benefits, which provide an	1095
increase in the original pension or benefit from time to time	1096
pursuant to changes in the salaries of active members;	1097

(b) A member of the fund who is receiving a pension or	1098
benefit under division (A) or (B) of this section, based on funded	1099
volunteer or funded part-time service, or off-duty disability, or	1100
partial on-duty disability, or early vested service;	1101

(c) A member of the fund who is receiving a pension under	1102
division (C)(1) of this section, based on funded volunteer or	1103
funded part-time service.	1104

(J) On and after July 1, 1977, a member of the fund who was	1105
receiving an annual pension or benefit on December 31, 1973,	1106
pursuant to division (B) of this section, based upon partial	1107
disability, off-duty disability, or early vested service, or	1108
pursuant to former division (C)(3), (5), or (6) of this section,	1109
shall have such annual pension or benefit increased by three	1110
hundred dollars.	1111

The following are not eligible to receive the increase	1112
provided by this division:	1113

(1) A member of the fund who is receiving a pension or	1114
benefit in accordance with the rules in force on April 1, 1947,	1115
governing the granting of pensions and benefits, which provide an	1116
increase in the original pension or benefit from time to time	1117
pursuant to changes in the salaries of active members;	1118

(2) A member of the fund who is receiving a pension or	1119
benefit under division (B) or (C)(2) of this section or former	1120
division (C)(3), (5), or (6) of this section based on volunteer or	1121
part-time service.	1122

(K)(1) Except as otherwise provided in this division, every	1123
person who on July 24, 1986, is receiving an age and service or	1124
disability pension, allowance, or benefit pursuant to this chapter	1125
in an amount less than thirteen thousand dollars a year that is	1126
based upon an award made effective prior to February 28, 1984,	1127
shall receive an increase of six hundred dollars a year or the	1128
amount necessary to increase the pension or benefit to four	1129
thousand two hundred dollars after all adjustments required by	1130
this section, whichever is greater.	1131

(2) Division (K)(1) of this section does not apply to the	1132
following:	1133

(a) A member of the fund who is receiving a pension or	1134
benefit in accordance with rules in force on April 1, 1947, that	1135
govern the granting of pensions and benefits and that provide an	1136
increase in the original pension or benefit from time to time	1137
pursuant to changes in the salaries of active members;	1138

(b) A member of the fund who is receiving a pension or	1139
benefit based on funded volunteer or funded part-time service.	1140

(L) On and after July 24, 1986:

1141

(1) The pension of each person receiving a pension under	1142
division (D) of this section on July 24, 1986, shall be increased	1143
to three hundred ten dollars per month.	1144

(2) The pension of each person receiving a pension under	1145
division (E) of this section on July 24, 1986, shall be increased	1146
to ninety-three dollars per month.	1147

Sec. 742.3711.  (A) On application for retirement as provided	1148
in section 742.37 of the Revised Code, a member of the fund may	1149
elect to receive a retirement allowance payable throughout the	1150
member's life, or may elect, on the application for retirement, to	1151
receive the actuarial equivalent of the member's retirement	1152
allowance in a lesser amount payable for life and continuing after	1153
death to a surviving designated beneficiary under one of the	1154
following optional plans, provided the amount payable to the	1155
beneficiary shall not exceed the amount payable to the retiring	1156
member of the fund, and is certified by the actuary engaged by the	1157
board of trustees of the Ohio police and fire pension fund to be	1158
the actuarial equivalent of the member's retirement allowance and	1159
is approved by the board.	1160

(1) Option 1. The member's lesser retirement allowance shall	1161
be paid for life to the sole beneficiary designated at the time of	1162
the member's retirement.	1163

(2) Option 2. One-half or some other portion of the member's	1164
lesser retirement allowance shall be paid for life to the sole	1165
beneficiary designated at the time of the member's retirement.	1166

(3) Option 3. Upon the member's death before the expiration	1167
of a certain period from the retirement date and elected by the	1168
member and approved by the retirement board, the member's lesser	1169
retirement allowance shall be continued for the remainder of that	1170
period to the beneficiary the member has nominated by written	1171
designation anddesignated in writing filed with the retirement	1172
board.	1173

Should the nominated beneficiarymember's designated in	1174
writing become deceasedbeneficiary die prior to the expiration of	1175
the guarantee period, then for the purpose of completing payment	1176
for the remainder of the guarantee period, the present value of	1177
such payments shall be paid to the estate of the beneficiary last	1178
receiving.	1179

(4) Option 4. The member's lesser retirement allowance or a	1180
portion of the lesser retirement allowance shall be paid for life	1181
to two, three, or four surviving beneficiaries designated at the	1182
time of the member's retirement, in such portions as specified at	1183
retirement. If the member elects this plan as required by a court	1184
order issued under section 3105.171 or 3105.65 of the Revised Code	1185
or the laws of another state regarding the division of marital	1186
property and compliance with the court order requires the	1187
allocation of a portion less than ten per cent to any beneficiary,	1188
the member shall allocate a portion less than ten per cent to that	1189
beneficiary in accordance with that order. In all other	1190
circumstances, no portion allocated under this plan of payment	1191
shall be less than ten per cent. The total of the portions	1192
allocated shall not exceed one hundred per cent of the member's	1193
lesser allowance.	1194

(B)(1) The death of a spouse nominateddesignated as	1195
beneficiary or the death of any other nominateddesignated	1196
beneficiary following a member's retirement or election under	1197
section 742.44 of the Revised Code to participate in the deferred	1198
retirement option plan shall cancel the portion of the optional	1199
plan of payment providing continuing lifetime benefits to the	1200
deceased nominateddesignated beneficiary. The member of the fund	1201
shall receive the actuarial equivalent of the member's single	1202
lifetime benefit, as determined by the board, based on the number	1203
of remaining beneficiaries, with no change in the amount payable	1204
to any remaining beneficiary. The change shall be effective the	1205
month following receipt by the board of notice of the death.	1206

(2) On divorce, annulment, or marriage dissolution, a member	1207
receiving a retirement allowance under a plan that provides for	1208
continuation of all or part of the allowance after death for the	1209
lifetime of the member's surviving spouse may, with the written	1210
consent of the spouse or pursuant to an order of the court with	1211
jurisdiction over the termination of the marriage, elect to cancel	1212
the portion of the plan providing continuing lifetime benefits to	1213
that spouse. The member shall receive the actuarial equivalent of	1214
the member's single lifetime benefit as determined by the board	1215
based on the number of remaining beneficiaries, with no change in	1216
amount payable to any remaining beneficiary. The election shall be	1217
made on a form provided by the board and shall be effective the	1218
month following its receipt by the board.	1219

(C)(1) Following marriage or remarriage, both of the	1220
following apply:	1221

(a) A member of the fund receiving a retirement allowance	1222
under section 742.37 or 742.39 of the Revised Code may elect not	1223
later than one year after the date of marriage or remarriage a new	1224
optional plan of payment based on the actuarial equivalent of the	1225
member's single lifetime benefit as determined by the board.	1226

(b) If a member is receiving a retirement allowance pursuant	1227
to a plan of payment providing for payment to a former spouse	1228
pursuant to a court order described in division (D)(1)(c) of this	1229
section and the board has received a copy of the order described	1230
in that division, the member may elect a new plan of payment under	1231
"option 4" based on the actuarial equivalent of the retirant's	1232
single lifetime retirement allowance as determined by the board if	1233
the new plan of payment elected does not reduce the payment to the	1234
former spouse.	1235

(2) A plan elected under this division and the member's	1236
lesser retirement allowance shall become effective on the date of	1237
receipt by the board of an application on a form approved by the	1238
board.	1239

(D)(1) Unless one of the following occurs, an application for	1240
retirement by a married person shall be considered an election of	1241
a benefit under option 2 as provided for in division (A)(2) of	1242
this section under which one-half of the lesser retirement	1243
allowance payable during the life of the retirant will be paid	1244
after death to the retirant's spouse for life as sole beneficiary:	1245

(a) The retirant selects an optional plan under division (A)	1246
of this section providing for payment after death to the	1247
retirant's spouse for life as sole beneficiary of more than	1248
one-half of the lesser retirement allowance payable during the	1249
life of the retirant;	1250

(b) The retirant submits to the retirement board a written	1251
statement signed by the spouse attesting that the spouse consents	1252
to the retirant's election to receive a single lifetime retirement	1253
allowance or a payment under an optional benefit plan under which	1254
after the death of the retirant the surviving spouse will receive	1255
less than one-half of the lesser retirement allowance payable	1256
during the life of the retirant;	1257

(c) A plan of payment providing for payment in a specified	1258
amount continuing after the retirant's death to a former spouse is	1259
required by a court order issued prior to the effective date of	1260
the retirant's retirement under section 3105.171 or 3105.65 of the	1261
Revised Code or the laws of another state regarding division of	1262
marital property.	1263

(d) If a retirant is subject to division (D)(1)(c) of this	1264
section and the board has received a copy of the order described	1265
in that division, the board shall accept the retirant's election	1266
of a plan of payment under this section only if the retirant	1267
complies with both of the following:	1268

(i) The retirant elects a plan of payment that is in	1269
accordance with the order described in division (D)(1)(c) of this	1270
section.	1271

(ii) If the retirant is married, the retirant elects "option	1272
4" and designates the retirant's current spouse as a beneficiary	1273
under that plan unless that spouse consents in writing to not	1274
being designated a beneficiary under any plan of payment or the	1275
board waives the requirement that the current spouse consent.	1276

(2) An application for retirement shall include an	1277
explanation of all of the following:	1278

(a) That, if the member is married, unless the spouse	1279
consents to another plan of payment or there is a court order	1280
dividing marital property issued under section 3105.171 or 3105.65	1281
of the Revised Code or the laws of another state regarding the	1282
division of marital property that provides for payment in a	1283
specified amount, the member's retirement allowance will be paid	1284
under "option 2" and consist of the actuarial equivalent of the	1285
member's retirement allowance in a lesser amount payable for life	1286
and one-half of the lesser allowance continuing after death to the	1287
surviving spouse for the life of the spouse;	1288

(b) A description of the alternative plans of payment	1289
available with the consent of the spouse;	1290

(c) That the spouse may consent to another plan of payment	1291
and the procedure for giving consent;	1292

(d) That consent is irrevocable once notice of consent is	1293
filed with the board.	1294

Consent shall be valid only if it is signed, in writing, and	1295
witnessed by an employee of the board or a notary public.	1296

(3) If the retirant does not select an optional plan as	1297
described in division (D)(1)(a) of this section and the board does	1298
not receive the written statement provided for in division	1299
(D)(1)(b) of this section, it shall determine and pay the	1300
retirement allowance in accordance with division (A)(2) of this	1301
section, except that the board may provide by rule for waiver by	1302
the board of the statement and payment of the allowance other than	1303
in accordance with division (A)(2) of this section if the retirant	1304
is unable to obtain the statement due to absence or incapacity of	1305
the spouse or other cause specified by the board.	1306

(E) A member of the fund who has elected an optional plan	1307
under this section or section 742.3715 of the Revised Code may,	1308
with the consent of the designated beneficiary, cancel the	1309
optional plan and receive the retirement allowance payable	1310
throughout life the member would have received had the member not	1311
elected the optional plan, if the member makes a request to cancel	1312
the optional plan not later than one year after the later of	1313
September 9, 1988, or the date on which the member first receives	1314
a payment under this section or section 742.3715 of the Revised	1315
Code. Cancellation of the optional plan shall be effective the	1316
month after acceptance of the request by the trustees of the fund.	1317
No payment or adjustment shall be made in the retirement allowance	1318
payable throughout the member's life to compensate for the lesser	1319
allowance the member received under the optional plan.	1320

The request to cancel the optional plan shall be made on a	1321
form provided by the fund and shall be valid only if the completed	1322
form includes a signed statement of the designated beneficiary's	1323
understanding of and consent to the cancellation. The signature	1324
shall be verified by the trustees of the fund prior to their	1325
acceptance of the cancellation.	1326

(F) Any option elected and payments made under this section	1327
shall be in addition to any benefit payable under divisions (D),	1328
(E), and (F) of section 742.37 of the Revised Code.	1329

(G) A person is eligible to receive a benefit increase under	1330
this division if the person is receiving a retirement allowance or	1331
benefit under an optional plan elected under this section or	1332
section 742.3715 of the Revised Code based on an award made prior	1333
to July 24, 1986. A person is not eligible to receive an increase	1334
under this division if the person is receiving a pension or	1335
benefit in accordance with rules in force on April 1, 1947, that	1336
govern the granting of pensions and benefits and that provide an	1337
increase in the original pension or benefit from time to time	1338
pursuant to changes in the salaries of active members.	1339

The board shall annually increase all benefits payable under	1340
this section or section 742.3715 of the Revised Code to eligible	1341
persons by the actuarial equivalent of three hundred sixty	1342
dollars, except that no benefit shall exceed the limit established	1343
by section 415 of the "Internal Revenue Code of 1986," 100 Stat.	1344
2085, 26 U.S.C.A. 415, as amended.	1345

The first increase is payable to all eligible persons on July	1346
1, 1988. The increase is payable for the ensuing twelve-month	1347
period or until the next increase is granted under this section,	1348
whichever is later.	1349

The date of the first increase payable under this section	1350
shall be the anniversary date for future increases.	1351

If payment of a portion of a benefit is made to an alternate	1352
payee under section 742.462 of the Revised Code, increases under	1353
this division granted while the order is in effect shall be	1354
apportioned between the alternate payee and the benefit recipient	1355
in the same proportion that the amount being paid to the alternate	1356
payee bears to the amount paid to the benefit recipient.	1357

If payment of a portion of a retirement allowance is made to	1358
one or more beneficiaries under "option 4" under division (A)(4)	1359
of section 742.3711 of the Revised Code, each increase under this	1360
division granted while the plan of payment is in effect shall be	1361
divided among the designated beneficiaries in accordance with the	1362
portion each beneficiary has been allocated.	1363

Sec. 742.3716.  (A)(1) As used in this section:

1364

(a) "Eligible person" means a person who meets all of the	1365
following conditions:	1366

(i) Has been receiving a pension or benefit under this	1367
chapter for one year or more based on an award made on or after	1368
July 24, 1986;	1369

(ii) Has not made the election provided for in division (B)	1370
of this section;	1371

(iii) Is not the spouse or survivor of a person who has made	1372
the election provided for in division (B) of this section;	1373

(iv) Is receiving a benefit in accordance with division (A),	1374
(B), or (C) of section 742.37, division (C)(2), (3), (4), or (5)	1375
of former section 742.37, section 742.3711, or section 742.39 of	1376
the Revised Code.	1377

(b) "Recalculated average annual salary" means the highest	1378
average annual compensation of a member of the Ohio police and	1379
fire pension fund during any three years of contributions,	1380
including amounts included in terminal pay attributable to such	1381
three years, determined by dividing the member's total earnings as	1382
an employee during such years by three.	1383

(2) In the case of a member participating in the deferred	1384
retirement option plan established under section 742.43 of the	1385
Revised Code or a member described in division (B) of section	1386
742.444 of the Revised Code, the period of one year or more	1387
described in division (A)(1)(a)(i) of this section begins on the	1388
effective date of the member's election under section 742.44 of	1389
the Revised Code.	1390

(B)(1) Notwithstanding section 742.37 or 742.39 of the	1391
Revised Code, a member of the fund who is not receiving a pension	1392
or benefit under this chapter and who on January 1, 1989, has	1393
completed fifteen or more years of active service in a police or	1394
fire department may elect to have any future benefit or pension	1395
paid to the member or the member's spouse or survivors under this	1396
chapter calculated on the basis of the member's recalculated	1397
average annual salary rather than the member's average annual	1398
salary. The election shall be made by the member prior to or at	1399
the time of making an election under section 742.3711 of the	1400
Revised Code. This division does not apply to a member of the fund	1401
who elected to participate in the deferred retirement option plan	1402
established under section 742.43 of the Revised Code unless the	1403
member's participation has terminated pursuant to division (C) of	1404
section 742.444 or to section 742.445 of the Revised Code.	1405

(2) If the member eligible to make the election under	1406
division (B)(1) of this section dies prior to making the election	1407
and at the time of death is eligible to retire and receive a	1408
pension or benefit under division (C)(1) or (3) of section 742.37	1409
of the Revised Code, the person entitled to receive a benefit	1410
under section 742.3714 of the Revised Code may make the election	1411
provided for in division (B)(1) of this section.	1412

(3) The election under division (B)(1) or (2) of this section	1413
shall be made on forms provided by the trustees of the fund. Once	1414
received by the fund, the election shall be irrevocable and shall	1415
bind the member and any other person who receives a pension or	1416
benefit based on the member's service. No person who receives a	1417
pension or benefit calculated in accordance with division (B) of	1418
this section is eligible to receive a cost-of-living allowance	1419
under this section. If the person making the election receives a	1420
benefit under section 742.3714 of the Revised Code, that person is	1421
not eligible to receive a cost-of-living allowance under section	1422
742.3711 of the Revised Code.	1423

(C)(1) The, "consumer price index" means the index, as	1424
determined by the United States bureau of labor statistics (U.S.	1425
city average for urban wage earners and clerical workers: all	1426
items 1982-84=100), or, if that index is no longer published, a	1427
generally available comparable index.	1428

(B)(1) Except as provided in division (D) of this section,	1429
the board of trustees of the Ohio police and fire pension fund	1430
shall annually increase all benefits payable to eligible persons	1431
by three per centas follows, except that no benefit shall exceed	1432
the limit established by section 415 of the "Internal Revenue Code	1433
of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.;	1434

(a) By three per cent for each person who on the effective	1435
date of this amendment is receiving a pension or disability	1436
benefit in accordance with division (A), (B), or (C) of section	1437
742.37, division (C)(2), (3), (4), or (5) of former section	1438
742.37, section 742.3711, or section 742.39 of the Revised Code	1439
that is based on an award made on or after July 24, 1986, and each	1440
person who, although not receiving a pension or benefit, has	1441
fifteen or more years of service credit as of July 1, 2013;	1442

(b) By the lesser of three per cent or the percentage	1443
increase, if any, in the consumer price index for the twelve-month	1444
period ending on the thirtieth day of September of the immediately	1445
preceding calendar year, rounded to the nearest one-tenth of one	1446
per cent, for each person who becomes a member of the fund on or	1447
after July 2, 2013, or has less than fifteen years of service	1448
credit as of July 1, 2013, and is not receiving a pension or	1449
disability benefit under any of the sections listed in division	1450
(B)(1)(b) of this section.	1451

The firstExcept as otherwise provided in this section, the	1452
increase is payable to all eligible persons who on July 1, 1988,	1453
have been receiving a pension or benefit for twelve months or	1454
longer and have attained the age of fifty-five. For persons	1455
receiving a benefit under division (D)(1) of section 742.38 of the	1456
Revised Code, the first increase is payable to all eligible	1457
persons who have been receiving a benefit for twelve months or	1458
longer, regardless of age. The increase is payable for the ensuing	1459
twelve-month period or until the next increase is granted under	1460
this section, whichever is later.	1461

The date of the first increase paid under this section shall	1462
be the anniversary date for future increases. The pension or	1463
benefit used in the first calculation of an increase under this	1464
section shall remain as the base for all future increases paid	1465
under this section, unless a new base is established by law. In	1466
the case of a	1467

A member who has, prior to the effective date of this	1468
section, elected to participate in the deferred retirement option	1469
plan established under section 742.43 of the Revised Code or a	1470
member described in division (B) of section 742.444 of the Revised	1471
Code, theshall be eligible to receive an increase under this	1472
section while participating in the deferred retirement option plan	1473
on attaining the age of fifty-five and having participated in the	1474
plan twelve months or longer. The pension amount used in the first	1475
calculation of an increase under this section shall be the amount	1476
calculated under section 742.442 of the Revised Code unless the	1477
member's participation has terminated pursuant to division (C) of	1478
section 742.444 or to section 742.445 of the Revised Code.	1479

(2) Increases paid in years subsequent to the year of the	1480
first increase paid under this section shall be paid to all	1481
eligible persons who, on the date that the increase is authorized	1482
by the board, have been receiving a pension or benefit for twelve	1483
months.	1484

(E)(C) If payment of a portion of a benefit is made to an	1485
alternate payee under section 742.462 of the Revised Code,	1486
increases under this section granted while the order is in effect	1487
shall be apportioned between the alternate payee and the benefit	1488
recipient in the same proportion that the amount being paid to the	1489
alternate payee bears to the amount paid to the benefit recipient.	1490

If payment of a portion of a retirement allowance is made to	1491
one or more beneficiaries under "option 4" under division (A)(4)	1492
of section 742.3711 of the Revised Code, each increase under this	1493
section granted while the plan of payment is in effect shall be	1494
divided among the designated beneficiaries in accordance with the	1495
portion each beneficiary has been allocated.	1496

(D) As used in this division, "recalculated average annual	1497
salary" means the highest average annual compensation of a member	1498
of the Ohio police and fire pension fund during any three years of	1499
contributions, including amounts included in terminal pay	1500
attributable to those three years, determined by dividing the	1501
member's total earnings as an employee during those years by	1502
three.	1503

Notwithstanding any other provision of this section, section	1504
742.37, or section 742.39 of the Revised Code, a member of the	1505
fund who is not receiving a pension or benefit under this chapter	1506
and who on January 1, 1989, had fifteen or more years of service	1507
credit under this chapter may elect to have any future benefit or	1508
pension paid to the member or the member's spouse or survivors	1509
under this chapter calculated on the basis of the member's	1510
recalculated average annual salary rather than the member's	1511
average annual salary as determined under section 742.37 or 742.39	1512
of the Revised Code. The election shall be made by the member	1513
prior to or at the time of making an election under section	1514
742.3711 of the Revised Code.	1515

If the member eligible to make the election under this	1516
division dies prior to making the election and at the time of	1517
death is eligible to retire and receive a pension or benefit under	1518
division (C)(1) or (3) of section 742.37 of the Revised Code, the	1519
person entitled to receive a benefit under section 742.3714 of the	1520
Revised Code may make the election provided for in this division.	1521

The election shall be made on forms provided by the fund.	1522
Once received by the fund, the election is irrevocable and binds	1523
the member and any other person who receives a pension or benefit	1524
based on the member's service. No person who receives a pension or	1525
benefit calculated in accordance with this division is eligible to	1526
receive an increase under this section. If the person making the	1527
election receives a benefit under section 742.3714 of the Revised	1528
Code, that person is not eligible to receive an increase under	1529
division (G) of section 742.3711 of the Revised Code.	1530

Sec. 742.38.  (A)(1) The board of trustees of the Ohio police	1531
and fire pension fund shall adopt rules establishing minimum	1532
medical testing and diagnostic standards or procedures to be	1533
incorporated into physical examinations administered by physicians	1534
to prospective members of the fund. The standards or procedures	1535
shall include diagnosis and evaluation of the existence of any	1536
heart disease, cardiovascular disease, or respiratory disease. The	1537
rules shall specify the form of the physician's report and the	1538
information to be included in it.	1539

The board shall notify all employers of the establishment of	1540
the minimum standards or procedures and shall include with the	1541
notice a copy of the standards or procedures. The board shall	1542
notify all employers of any changes made to the standards or	1543
procedures. Once the standards or procedures take effect,	1544
employers shall cause each prospective member of the fund to	1545
submit to a physical examination that incorporates the standards	1546
or procedures.	1547

(2) Division (A)(2) of this section applies to an employee	1548
who becomes a member of the fund on or after the date the minimum	1549
standards or procedures described in division (A)(1) of this	1550
section take effect. For each employee described in division	1551
(A)(2) of this section, the employer shall forward to the board a	1552
copy of the physician's report of a physical examination that	1553
incorporates the standards or procedures described in division	1554
(A)(1) of this section. If an employer fails to forward the report	1555
in the form required by the board on or before the date that is	1556
sixty days after the employee becomes a member of the fund, the	1557
board shall assess against the employer a penalty determined under	1558
section 742.353 of the Revised Code.	1559

(B) Application for a disability benefit may be made by a	1560
member of the fund or, if the member is incapacitated as defined	1561
in rules adopted by the board, by a person acting on the member's	1562
behalf. Not later than fourteen days after receiving an	1563
application for a disability benefit from a member or a person	1564
acting on behalf of a member, the board shall notify the member's	1565
employer that an application has been filed. The notice shall	1566
state the member's position or rank. Not later than twenty-eight	1567
days after receiving the notice or filing an application on behalf	1568
of a member, the employer shall forward to the board a statement	1569
certifying the member's job description and any other information	1570
required by the board to process the application.	1571

If the member applying for a disability benefit becomes a	1572
member of the fund prior to the date the minimum standards or	1573
procedures described in division (A)(1) of this section take	1574
effect, the board may request from the member's employer a copy of	1575
the physician's report of the member's physical examination taken	1576
on entry into the police or fire department or, if the employer	1577
does not have a copy of the report, a written statement certifying	1578
that the employer does not have a copy of the report. If an	1579
employer fails to forward the report or statement in the form	1580
required by the board on or before the date that is twenty-eight	1581
days after the date of the request, the board shall assess against	1582
the employer a penalty determined under section 742.353 of the	1583
Revised Code. The board shall maintain the information submitted	1584
under this division and division (A)(2) of this section in the	1585
member's file.	1586

(C) For purposes of determining under division (D) of this	1587
section whether a member of the fund is disabled, the board shall	1588
adopt rules establishing objective criteria under which the board	1589
shall make the determination. The rules shall include standards	1590
that provide for all of the following:	1591

(1) Evaluating a member's illness or injury on which an	1592
application for disability benefits is based;	1593

(2) Defining the occupational duties of a police officer or	1594
firefighter;	1595

(3) Providing for the board to assign competent and	1596
disinterested physicians and vocational evaluators to conduct	1597
examinations of a member;	1598

(4) Requiring a written report for each disability	1599
application that includes a summary of findings, medical opinions,	1600
including an opinion on whether the illness or injury upon which	1601
the member's application for disability benefits is based was	1602
caused or induced by the actual performance of the member's	1603
official duties, and any recommendations or comments based on the	1604
medical opinions;	1605

(5) Providing for the board to consider the member's	1606
potential for retraining or reemployment.	1607

(D) This division does not apply to members of the fund who	1608
have elected to receive benefits and pensions in accordance with	1609
division (A) or (B) of section 742.37 of the Revised Code or from	1610
a police relief and pension fund or a firemen's relief and pension	1611
fund in accordance with the rules of that fund in force on April	1612
1, 1947.	1613

(1) As used in this division (D)(1) of this section:

1614

(a) "Totally disabled" means a member of the fund is unable	1615
to perform the duties of any gainful occupation for which the	1616
member is reasonably fitted by training, experience, and	1617
accomplishments. Absolute helplessness is not a prerequisite of	1618
being totally disabled.	1619

(b) "Permanently disabled" means a condition of disability	1620
from which there is no present indication of recovery.	1621

(1) A member of the fund who is permanently and totally	1622
disabled as the result of the performance of the member's official	1623
duties as a member of a police or fire department shall be paid	1624
annual disability benefits in accordance with division (A) of	1625
section 742.39 of the Revised Code. In determining whether a	1626
member of the fund is permanently and totally disabled, the board	1627
shall consider standards adopted under division (C) of this	1628
section applicable to the determination.	1629

(2) A member of the fund who is permanently and partially	1630
disabled as the result of the performance of the member's official	1631
duties as a member of a police or fire department shall, if the	1632
disability prevents the member from performing those duties and	1633
impairs the member's earning capacity, receive annual disability	1634
benefits in accordance with division (B) of section 742.39 of the	1635
Revised Code. In determining whether a member of the fund is	1636
permanently and partially disabled, the board shall consider	1637
standards adopted under division (C) of this section applicable to	1638
the determination.	1639

(3) A member of the fund who is permanently disabled as a	1640
result of heart disease or any cardiovascular or respiratory	1641
disease of a chronic nature, which disease or any evidence of	1642
which disease was not revealed by the physical examination passed	1643
by the member on entry into the department or another examination	1644
specified in rules the board adopts under section 742.10 of the	1645
Revised Code, is presumed to have incurred the disease while	1646
performing the member's official duties, unless the contrary is	1647
shown by competent evidence. The board may waive the requirement	1648
that the absence of disease be evidenced by a physical examination	1649
if competent medical evidence of a type specified in rules adopted	1650
under section 742.10 of the Revised Code is submitted documenting	1651
that the disease was not evident prior to or at the time of entry	1652
into the department.	1653

(4) A member of the fund who has completed five or more years	1654
of active service in a police or fire departmentcredit and has	1655
incurred a permanent disability not caused or induced by the	1656
actual performance of the member's official duties as a member of	1657
the department, or by the member's own negligence, shall if the	1658
disability prevents the member from performing those duties and	1659
impairs the member's earning capacity, receive annual disability	1660
benefits in accordance with division (C) of section 742.39 of the	1661
Revised Code. In determining whether a member of the fund is	1662
permanently disabled, the board shall consider standards adopted	1663
under division (C) of this section applicable to the	1664
determination.	1665

(5) The board shall notify a member of its final action	1666
awarding a disability benefit to the member within thirty days of	1667
the final action. The notice shall be sent by certified mail,	1668
return receipt requested. Not later than ninety days after receipt	1669
of notice from the board, the member shall elect, on a form	1670
provided by the board, either to accept or waive the disability	1671
benefit award. If the member elects to waive the disability	1672
benefit award or fails to make an election within the time period,	1673
the award is rescinded. A member who later seeks a disability	1674
benefit award shall be required to make a new application, which	1675
shall be dealt with in accordance with the procedures used for	1676
original disability benefit applications.	1677

A person is not eligible to apply for or receive disability	1678
benefits under this division, section 742.39 of the Revised Code,	1679
or division (C)(2), (3), (4), or (5) of former section 742.37 of	1680
the Revised Code unless the person is a member of the fund on the	1681
date on which the application for disability benefits is submitted	1682
to the fund.	1683

With the exception of persons who may make application for	1684
increased benefits as provided in division (D)(2) or (4) of this	1685
section or division (C)(3) or (5) of former section 742.37 of the	1686
Revised Code on or after July 24, 1986, or persons who may make	1687
application for benefits as provided in section 742.26 of the	1688
Revised Code, no person receiving a pension or benefit under this	1689
section or division (C) of former section 742.37 of the Revised	1690
Code may apply for any new, changed, or different benefit.	1691

Sec. 742.39.  (A) A member of the Ohio police and fire	1692
pension fund determined to be eligible for a disability benefit	1693
under division (D)(1) of section 742.38 of the Revised Code shall	1694
be paid annual disability benefits, payable in twelve monthly	1695
installments, in an amount equal to seventy-two per cent of the	1696
member's average annual salary. If, as of July 2, 2013, the member	1697
had fifteen or more years of service credit, the average annual	1698
salary shall be determined using three years of contributions. If,	1699
as of that date, the member had less than fifteen years of service	1700
credit, the average annual salary shall be determined using five	1701
years of contributions.	1702

(B) A member of the fund determined to be eligible for a	1703
disability benefit under division (D)(2) of section 742.38 of the	1704
Revised Code shall be paid annual disability benefits, payable in	1705
twelve monthly installments. If the member has fewer than	1706
twenty-five years of active service in a police or fire department	1707
credit, the benefit shall be in an amount fixed by the board of	1708
trustees of the Ohio police and fire pension fund. The board may	1709
increase or decrease the benefit whenever the board determines	1710
that the impairment of the member's earning capacity warrants an	1711
increase or decrease based on the standards adopted under division	1712
(C) of section 742.38 of the Revised Code applicable to the	1713
determination, but in no event shall the benefit exceed sixty per	1714
cent of the member's average annual salary.	1715

A member who has completed twenty-five or more years of	1716
active service in the departmentcredit shall receive annual	1717
disability benefits, payable in twelve monthly installments, in an	1718
amount equal to a percentage of the member's average annual	1719
salary. The percentage shall be the sum of two and one-half per	1720
cent for each of the first twenty years the member was in the	1721
activeof service of the departmentcredit, plus two per cent for	1722
each of the twenty-first to twenty-fifth years the member was in	1723
the activeof service of the departmentcredit, plus one and	1724
one-half per cent for each year in excess of twenty-five years the	1725
member was in the activeof service of the departmentcredit. The	1726
annual disability benefit shall not exceed seventy-two per cent of	1727
the member's average annual salary.	1728

In calculating a benefit under this division, a member's	1729
average annual salary shall be determined using three years of	1730
contributions if, as of July 2, 2013, the member had fifteen or	1731
more years of service credit. If, as of that date, the member had	1732
less than fifteen years of service credit, the average annual	1733
salary shall be determined using five years of contributions.	1734

(C) A member of the fund determined to be eligible for a	1735
disability benefit under division (D)(4) of section 742.38 of the	1736
Revised Code shall be paid annual disability benefits, payable in	1737
twelve monthly installments, in an amount to be fixed by the	1738
board. The board may increase or decrease the benefits whenever	1739
the board determines that the impairment of the member's earning	1740
capacity warrants an increase or decrease based on the standards	1741
adopted under division (C) of section 742.38 of the Revised Code	1742
applicable to the determination, but in no event shall a benefit	1743
paid to the member exceed sixty per cent of the member's average	1744
annual salary.	1745

(D) Each of the following persons who on July 1, 1999, is	1746
receiving annual benefits of less than six thousand six hundred	1747
dollars shall have the benefits increased to that amount effective	1748
July 1, 1999:	1749

(1) A person receiving annual benefits described in division	1750
(A) of this section;	1751

(2) A person receiving annual benefits described in division	1752
(C) of this section based on an award made prior to September 16,	1753
1998.	1754

(E) Benefits payable under this section continue until death	1755
unless adjusted under division (D)(5) of section 742.38 of the	1756
Revised Code or adjusted or terminated under division (C)(3) of	1757
section 742.40 of the Revised Code.	1758

Sec. 742.44. Except as provided in section 742.14 of the	1759
Revised Code, at any time prior to filing an application for	1760
retirement under division (C)(1) of section 742.37 of the Revised	1761
Code, a member who has attained the requisite age and is eligible	1762
to retire under that division may elect to participate in the	1763
deferred retirement option plan established under section 742.43	1764
of the Revised Code.	1765

To make an election, an eligible member shall complete and	1766
submit to the Ohio police and fire pension fund a form prescribed	1767
by the fund. At this time the member may, but is not required to,	1768
elect under section 742.3711 of the Revised Code to have the	1769
member's monthly pension calculated as a retirement allowance	1770
payable throughout the member's life or a retirement allowance	1771
under option 2 in division (A) of section 742.3711 of the Revised	1772
Code. Unless rescinded during a period specified in rules adopted	1773
under section 742.43 of the Revised Code, theThe election is	1774
irrevocable from the date it is received by the fund until the	1775
employee ceases to participate in the plan as provided in section	1776
742.444 of the Revised Codeunless the member is required to	1777
select a plan of payment providing for payment in a specified	1778
amount continuing after the member's death to a former spouse	1779
pursuant to a court order issued prior to the effective date of	1780
the member's retirement under section 3105.171 or 3105.65 of the	1781
Revised Code or the laws of another state regarding division of	1782
marital property.	1783

A member is not required to specify the number of years or	1784
portion of a year the member will participate in the plan but must	1785
agree to terminate active service in a police or fire department	1786
and begin receiving the member's pension not later than the date	1787
that is eight years after the effective date of the election to	1788
participate in the plan or be subject to the forfeiture provisions	1789
of division (C) of section 742.444 of the Revised Code.	1790

The effective date of an election made under this section is	1791
the first day of the employer's first payroll period immediately	1792
following the board's receipt of the notice of election.	1793

Sec. 742.442. For each member who elects to participate in	1794
the deferred retirement option plan, the Ohio police and fire	1795
pension fund shall determine under division (C)(1) of section	1796
742.37 of the Revised Code the monthly pension amount that would	1797
be payable to the member had the member elected to receive a	1798
pension under that division. In determining the pension amount,	1799
the fund shall use the member's total service credit and average	1800
annual salary as of the last day of the employer's payroll period	1801
immediately prior to the effective date of the member's election	1802
to participate in the plan. The pension amount shall be calculated	1803
as a retirement allowance payable for the member's life, except	1804
that, if at the time of electing to participate in the plan the	1805
member selected the plan of payment in option 2 of division (A) of	1806
section 742.3711 of the Revised Code, the pension shall be	1807
calculated using that plan of payment.	1808

A member who participates in the plan is not eligible to make	1809
an election under division (B)(D) of section 742.3716 of the	1810
Revised Code.	1811

Sec. 742.443. (A) During the period beginning on the	1812
effective date of an election to participate in the deferred	1813
retirement option plan and ending on the date participation	1814
ceases, a member's monthly pension amount determined under section	1815
742.442 of the Revised Code shall accrue to the member's benefit.	1816
ToIf the member is eligible for increases under section 742.3716	1817
of the Revised Code, to this amount shall be added any benefit	1818
increases the member would be eligible for under division (C) of	1819
section 742.3716 of the Revised Codethat section had the member,	1820
on the effective date of the member's election, retired under	1821
division (C)(1) of section 742.37 of the Revised Code.	1822

(B)(1) The amounts contributed under section 742.31 of the	1823
Revised Code by a member participatingwho, before July 2, 2013,	1824
elects to participate in the deferred retirement option plan shall	1825
accrue to the member's benefit as follows:	1826

(a) During the period beginning on the first day of the first	1827
payroll period after the election's effective date and ending on	1828
the earlier of the date that is two years thereafter or the date	1829
the member ceases participation in the plan, fifty per cent of the	1830
member's contributions for that period;	1831

(b) During the period beginning on the date that is two years	1832
and one day after accruals begin under this division and ending on	1833
the earlier of the date that is three years thereafter or the date	1834
the member ceases participation in the plan, seventy-five per cent	1835
of the member's contributions for that period;	1836

(c) During the period beginning on the date that is three	1837
years and one day after accruals begin under this section and	1838
ending on the date the member ceases participation in the plan,	1839
one hundred per cent of the member's contributions for that	1840
period.	1841

(2) The amounts contributed under section 742.31 of the	1842
Revised Code by a member who, on or after July 2, 2013, elects to	1843
participate in the deferred retirement option plan shall accrue to	1844
the member's benefit as follows:	1845

(a) During the period beginning on the first day of the first	1846
payroll period after the election's effective date and ending on	1847
the earlier of the date that is three years thereafter or the date	1848
the member ceases participation in the plan, fifty per cent of the	1849
member's contributions for that period;	1850

(b) During the period beginning on the date that is three	1851
years and one day after accruals begin under this division and	1852
ending on the earlier of the date that is five years thereafter or	1853
the date the member ceases participation in the plan, seventy-five	1854
per cent of the member's contributions for that period;	1855

(c) During the period beginning on the date that is five	1856
years and one day after accruals begin under this section and	1857
ending on the date the member ceases participation in the plan,	1858
one hundred per cent of the member's contributions for that	1859
period.	1860

(3) The Ohio police and fire pension fund shall credit the	1861
portion of a member's contributions that are not accrued to the	1862
member's benefit under division (B)(1) or (2) of this section to	1863
the police officers' contribution fund or firefighters'	1864
contribution fund, as appropriate.	1865

(C) During the period beginning on the election's effective	1866
date and ending on the day before the date distributions under	1867
division (B)(3) of section 742.444 of the Revised Code are	1868
completed, the amounts described in divisions (A) and (B)(1) of	1869
this section shall earn interest at an annual rate established by	1870
the board of trustees of the fund and compounded annually using a	1871
method established by rule adopted under section 742.43 of the	1872
Revised Code.	1873

Sec. 742.444. (A) A member's participation in the deferred	1874
retirement option plan ceases on the occurrence of the earliest of	1875
the following:	1876

(1) Termination of the member's active service in a police or	1877
fire department;	1878

(2) The last day of the eight-year period that begins on the	1879
effective date of the member's election to participate in the	1880
plan;	1881

(3) Acceptance by the member of a disability benefit awarded	1882
by the board of trustees of the Ohio police and fire pension fund,	1883
unless the acceptance is revoked by the member in accordance with	1884
rules adopted by the board;	1885

(4) The member's death.

1886

(B) If a member terminates active service in a police or fire	1887
department not later than eight years after the effective date of	1888
the member's election to participate in the plan, all of the	1889
following apply:	1890

(1) The member shall notify the Ohio police and fire pension	1891
fund of the date of termination on a form prescribed by the fund.	1892
The member is not eligible to make another election under section	1893
742.44 of the Revised Code.	1894

(2) If the member's termination of active service occurs on	1895
or after the date that is the first day of the fourth year after	1896
the effective date of the election to participatethe member has	1897
completed five years of participation in the plan, the entire	1898
amount that has accrued to the member's benefit under the deferred	1899
retirement option plan shall be distributed to the member pursuant	1900
to the member's selection under division (B)(3) of this section.	1901
If the member's termination of active service occurs before the	1902
date that is four years after the effective date of the election	1903
to participatemember has completed five years of participation,	1904
the member shall forfeit the total amount of the interest credited	1905
under division (C) of section 742.443 of the Revised Code.	1906

(3) The member shall select one of the following as the	1907
method of distribution of the amount to be distributed to the	1908
member:	1909

(a) A single payment;

1910

(b) Periodic payments as determined by the board.

1911

The fund shall retain amounts accrued to the benefit of a	1912
member under the plan until a form specifying the method of	1913
distribution selected is filed with the fund by the member or an	1914
authorized representative of the member.	1915

The board shall afford a member who selects periodic payments	1916
the opportunity at least once during each calendar year to change	1917
the member's selection.	1918

(4) Distribution of the amount accrued to a member's benefit	1919
under the deferred retirement option plan shall not commence until	1920
the member has completed five years of participation, which shall	1921
be the date that is the first day of the fourthsixth year after	1922
the effective date of the election.	1923

(5) The member shall select a plan of payment under section	1924
742.3711 of the Revised Code for the pension payable to the member	1925
under division (C) of section 742.37 of the Revised Code, unless	1926
the member selected a plan of payment at the time of electing to	1927
participate in the plan. The pension shall commence not later than	1928
the first day of the second month following the date the employee	1929
ceases to participate in the plan.	1930

(C) If, at the end of the eight-year period that begins on	1931
the effective date of a member's election to participate in the	1932
plan, the member has failed to terminate active service in a	1933
police or fire department, all of the following apply:	1934

(1) No further amounts shall accrue to the member's benefit,	1935
and the member shall forfeit all amounts that have accrued to the	1936
member's benefit under section 742.443 of the Revised Code. The	1937
amounts forfeited shall be treated as if the member had continued	1938
in the active service of a police or fire department and not	1939
elected to participate in the plan.	1940

(2) The member shall be granted service credit for the period	1941
the member was participating in the plan, and when the member's	1942
pension is calculated under section 742.37 of the Revised Code,	1943
the calculation shall be made as though the member had never	1944
participated in the plan.	1945

(3) Further contributions, and service credit for those	1946
contributions, shall be credited as provided in sections 742.31	1947
through 742.34 of the Revised Code.	1948

Sec. 742.45.  (A) The board of trustees of the Ohio police	1949
and fire pension fund may enter into an agreement with insurance	1950
companies, health insuring corporations, or government agencies	1951
authorized to do business in the state for issuance of a policy or	1952
contract of health, medical, hospital, or surgical benefits, or	1953
any combination thereof, for those individuals receiving service	1954
or disability pensions or survivor benefits subscribing to the	1955
plan. Notwithstanding any other provision of this chapter, the	1956
policy or contract may also include coverage for any eligible	1957
individual's spouse and dependent children and for any of the	1958
eligible individual's sponsored dependents as the board considers	1959
appropriate.	1960

If all or any portion of the policy or contract premium is to	1961
be paid by any individual receiving a service, disability, or	1962
survivor pension or benefit, the individual shall, by written	1963
authorization, instruct the board to deduct from the individual's	1964
benefit the premium agreed to be paid by the individual to the	1965
company, corporation, or agency.	1966

The board may contract for coverage on the basis of part or	1967
all of the cost of the coverage to be paid from appropriate funds	1968
of the Ohio police and fire pension fund. The cost paid from the	1969
funds of the Ohio police and fire pension fund shall be included	1970
in the employer's contribution rates provided by sections 742.33	1971
and 742.34 of the Revised Code.	1972

The board may provide for self-insurance of risk or level of	1973
risk as set forth in the contract with the companies,	1974
corporations, or agencies, and may provide through the	1975
self-insurance method specific benefits as authorized by the rules	1976
of the board.	1977

(B) Except as otherwise provided in this division, the board	1978
shall, beginning the month following receipt of satisfactory	1979
evidence of the payment for coverage, pay monthly to each	1980
recipient of service, disability, or survivor benefits under the	1981
Ohio police and fire pension fund who is eligible for medical	1982
insurance coverage under part B of the medicare program	1983
established under Title XVIII of "The Social Security Amendments	1984
of 1965," 79 Stat. 301 (1965), 42 U.S.C.A. 1395j, as amended, an	1985
amount specified by the board or determined pursuant to a formula	1986
established by the board that is not less than ninety-six dollars	1987
and forty cents, for such coverage, except that the board shall	1988
not pay an amount that exceeds the amount paid by the recipient	1989
for the coverage.	1990

The board shall pay not more than one monthly premium under	1991
this division to an eligible benefit recipient even if the	1992
recipient is receiving more than one monthly benefit from the	1993
fund. The board shall not pay a monthly premium under this	1994
division to an eligible benefit recipient who is receiving	1995
reimbursement for the premium from any other source.	1996

(C) The board shall establish by rule requirements for the	1997
coordination of any coverage, payment, or benefit provided under	1998
this section with any similar coverage, payment, or benefit made	1999
available to the same individual by the public employees	2000
retirement system, state teachers retirement system, school	2001
employees retirement system, or state highway patrol retirement	2002
system.	2003

(D) The board shall make all other necessary rules pursuant	2004
to the purpose and intent of this section.	2005

Sec. 742.63.  The board of trustees of the Ohio police and	2006
fire pension fund shall adopt rules for the management of the Ohio	2007
public safety officers death benefit fund and for disbursements of	2008
benefits as set forth in this section.	2009

(A) As used in this section:

2010

(1) "Member" means all of the following:

2011

(a) A member of the Ohio police and fire pension fund,	2012
including a member of the fund who has elected to participate in	2013
the deferred retirement option plan established under section	2014
742.43 of the Revised Code or a member of or contributor to a	2015
police or firemen's relief and pension fund established under	2016
former Chapter 521. or 741. of the Revised Code;	2017

(b) A member of the state highway patrol retirement system,	2018
including a member who is participating in the deferred retirement	2019
option plan established under section 5505.50 of the Revised Code;	2020

(c) A member of the public employees retirement system who at	2021
the time of the member's death was one of the following:	2022

(i) A county sheriff or deputy sheriff;

2023

(ii) A full-time regular police officer in a municipal	2024
corporation or township;	2025

(iii) A full-time regular firefighter employed by the state,	2026
an instrumentality of the state, a municipal corporation, a	2027
township, a joint fire district, or another political subdivision;	2028

(iv) A full-time park district ranger or patrol trooper;

2029

(v) A full-time law enforcement officer of the department of	2030
natural resources;	2031

(vi) A full-time department of public safety enforcement	2032
agent;	2033

(vii) A full-time law enforcement officer of parks, waterway	2034
lands, or reservoir lands under the control of a municipal	2035
corporation;	2036

(viii) A full-time law enforcement officer of a conservancy	2037
district;	2038

(ix) A correction officer at an institution under the control	2039
of a county, a group of counties, a municipal corporation, or the	2040
department of rehabilitation and correction;	2041

(x) A state university law enforcement officer;

2042

(xi) An investigator, as defined in section 109.541 of the	2043
Revised Code, or an investigator commissioned as a special agent	2044
of the bureau of criminal identification and investigation.	2045

(xii) A drug agent, as defined in section 145.01 of the	2046
Revised Code.	2047

(d) A member of a retirement system operated by a municipal	2048
corporation who at the time of death was a full-time law	2049
enforcement officer of parks, waterway lands, or reservoir lands	2050
under the control of the municipal corporation.	2051

(2) Notwithstanding section 742.01 of the Revised Code, "fire	2052
or police department" includes a fire department of the state or	2053
an instrumentality of the state or of a municipal corporation,	2054
township, joint fire district, or other political subdivision, the	2055
state highway patrol, a county sheriff's office, the security	2056
force of an institution under the control of the department of	2057
rehabilitation and correction, the security force of a jail or	2058
workhouse under the control of a county, group of counties, or	2059
municipal corporation, the security force of a metropolitan,	2060
county, or township park district, the security force of lands	2061
under the control of the department of natural resources,	2062
department of public safety enforcement agents, the security force	2063
of parks, waterway lands, or reservoir lands under the control of	2064
a municipal corporation, the security force of a conservancy	2065
district, the police department of a township or municipal	2066
corporation, and the police force of a state university.	2067

(3) "Firefighter or police officer" includes a state highway	2068
patrol trooper, a county sheriff or deputy sheriff, a correction	2069
officer at an institution under the control of a county, a group	2070
of counties, a municipal corporation, or the department of	2071
rehabilitation and correction, a police officer employed by a	2072
township or municipal corporation, a firefighter employed by the	2073
state, an instrumentality of the state, a municipal corporation, a	2074
township, a joint fire district, or another political subdivision,	2075
a full-time park district ranger or patrol trooper, a full-time	2076
law enforcement officer of the department of natural resources, a	2077
full-time department of public safety enforcement agent, a	2078
full-time law enforcement officer of parks, waterway lands, or	2079
reservoir lands under the control of a municipal corporation, a	2080
full-time law enforcement officer of a conservancy district, and a	2081
state university law enforcement officer.	2082

(4) "Correction officer" includes, in addition to any	2083
correction officer, any correction corporal, sergeant, lieutenant,	2084
or captain, and the equivalents of all such persons.	2085

(5) "A park district ranger or patrol trooper" means a peace	2086
officer commissioned to make arrests, execute warrants, and	2087
preserve the peace upon lands under the control of a board of park	2088
commissioners of a metropolitan, county, or township park	2089
district.	2090

(6) "Metropolitan, county, or township park district" means a	2091
park district created under the authority of Chapter 511. or 1545.	2092
of the Revised Code.	2093

(7) "Conservancy district" means a conservancy district	2094
created under the authority of Chapter 6101. of the Revised Code.	2095

(8) "Law enforcement officer" means an officer commissioned	2096
to make arrests, execute warrants, and preserve the peace upon	2097
lands under the control of the governmental entity granting the	2098
commission.	2099

(9) "Department of natural resources law enforcement officer"	2100
includes a forest officer designated pursuant to section 1503.29	2101
of the Revised Code, a preserve officer designated pursuant to	2102
section 1517.10 of the Revised Code, a wildlife officer designated	2103
pursuant to section 1531.13 of the Revised Code, a park officer	2104
designated pursuant to section 1541.10 of the Revised Code, and a	2105
state watercraft officer designated pursuant to section 1547.521	2106
of the Revised Code.	2107

(10) "Retirement eligibility date" means the last day of the	2108
month in which a deceased member would have first become eligible,	2109
had the member lived, for the retirement pension provided under	2110
section 145.33, Chapter 145., 521., or 741., division (C)(1) of	2111
section 742.37, or division (A)(1) of section 5505.17 of the	2112
Revised Code or provided by a retirement system operated by a	2113
municipal corporation.	2114

(11) "Death benefit amount" means an amount equal to the full	2115
monthly salary received by a deceased member prior to death, minus	2116
an amount equal to the benefit received under section 145.45,	2117
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	2118
received from a retirement system operated by a municipal	2119
corporation, plus any increases in salary that would have been	2120
granted the deceased member.	2121

(12) "Killed in the line of duty" means either of the	2122
following:	2123

(a) Death in the line of duty;

2124

(b) Death from injury sustained in the line of duty,	2125
including heart attack or other fatal injury or illness caused	2126
while in the line of duty.	2127

(B) A spouse of a deceased member shall receive a death	2128
benefit each month equal to the full death benefit amount,	2129
provided that the deceased member was a firefighter or police	2130
officer killed in the line of duty and there are no surviving	2131
children eligible for a benefit under this section. The spouse	2132
shall receive this benefit during the spouse's natural life until	2133
the deceased member's retirement eligibility date, on which date	2134
the benefit provided under this division shall terminate.	2135

(C)(1) If a member killed in the line of duty as a	2136
firefighter or police officer is survived only by a child or	2137
children, the child or children shall receive a benefit each month	2138
equal to the full death benefit amount. If there is more than one	2139
surviving child, the benefit shall be divided equally among these	2140
children.	2141

(2) If the death benefit paid under this division is divided	2142
among two or more surviving children and any of the children	2143
become ineligible to continue receiving a portion of the benefit	2144
as provided in division (H) of this section, the full death	2145
benefit amount shall be paid to the remaining eligible child or	2146
divided among the eligible children so that the benefit paid to	2147
the remaining eligible child or children equals the full death	2148
benefit amount.	2149

(3) Notwithstanding divisions (C)(1) and (2) of this section,	2150
all death benefits paid under this division shall terminate on the	2151
deceased member's retirement eligibility date.	2152

(D) If a member killed in the line of duty as a firefighter	2153
or police officer is survived by both a spouse and a child or	2154
children, the monthly benefit provided shall be as follows:	2155

(1)(a) If there is a surviving spouse and one surviving	2156
child, the spouse shall receive an amount each month equal to	2157
one-half of the full death benefit amount and the child shall	2158
receive an amount equal to one-half of the full death benefit	2159
amount.	2160

(b) If the surviving spouse dies or the child becomes	2161
ineligible as provided in division (H) of this section, the	2162
surviving spouse or child remaining eligible shall receive the	2163
full death benefit amount.	2164

(2)(a) If there is a surviving spouse and more than one	2165
child, the spouse shall receive an amount each month equal to	2166
one-third of the full death benefit amount and the children shall	2167
receive an amount, equally divided among them, equal to two-thirds	2168
of the full death benefit amount.	2169

(b) If a spouse and more than one child each are receiving a	2170
death benefit under division (D)(2)(a) of this section and the	2171
spouse dies, the children shall receive an amount each month,	2172
equally divided among them, equal to the full death benefit	2173
amount.	2174

(c) If a spouse and more than one child each are receiving a	2175
benefit under division (D)(2)(a) of this section and any of the	2176
children becomes ineligible to receive a benefit as provided in	2177
division (H) of this section, the spouse and remaining eligible	2178
child or children shall receive a death benefit as follows:	2179

(i) If there are two or more remaining eligible children, the	2180
spouse shall receive an amount each month equal to one-third of	2181
the full death benefit amount and the children shall receive an	2182
amount each month, equally divided among them, equal to two-thirds	2183
of the full death benefit amount;	2184

(ii) If there is one remaining eligible child, the spouse	2185
shall receive an amount each month equal to one-half of the full	2186
death benefit amount, and the child shall receive an amount each	2187
month equal to one-half of the full death benefit amount.	2188

(d) If a spouse and more than one child each are receiving a	2189
benefit under division (D)(2)(a) of this section and all of the	2190
children become ineligible to receive a benefit as provided in	2191
division (H) of this section, the spouse shall receive the full	2192
death benefit amount.	2193

(3) Notwithstanding divisions (D)(1) and (2) of this section,	2194
death benefits paid under this division to a surviving spouse	2195
shall terminate on the member's retirement eligibility date. Death	2196
benefits paid to a surviving child or children shall terminate on	2197
the deceased member's retirement eligibility date unless earlier	2198
terminated pursuant to division (H) of this section.	2199

(E) If a member, on or after January 1, 1980, is killed in	2200
the line of duty as a firefighter or police officer and is	2201
survived by only a parent or parents dependent upon the member for	2202
support, the parent or parents shall receive an amount each month	2203
equal to the full death benefit amount. If there is more than one	2204
surviving parent dependent upon the deceased member for support,	2205
the death benefit amount shall be divided equally among the	2206
surviving parents. On the death of one of the surviving parents,	2207
the full death benefit amount shall be paid to the other parent.	2208

(F)(1) The following shall receive a monthly death benefit	2209
under this division:	2210

(a) A surviving spouse whose benefits are terminated in	2211
accordance with division (B) or (D)(3) of this section on the	2212
deceased member's retirement eligibility date, or who would	2213
qualify for a benefit under division (B) or (D) of this section	2214
except that the deceased member reached the member's retirement	2215
eligibility date prior to the member's death;	2216

(b) A qualified surviving spouse of a deceased member of or	2217
contributor to a police or firemen's relief and pension fund	2218
established under former Chapter 521. or 741. of the Revised Code	2219
who was a firefighter or police officer killed in the line of	2220
duty.	2221

(2) The monthly death benefit shall be one-half of an amount	2222
equal to the monthly salary received by the deceased member prior	2223
to the member's death, plus any salary increases the deceased	2224
member would have received prior to the member's retirement	2225
eligibility date. The benefit shall terminate on the surviving	2226
spouse's death. A death benefit payable under this division shall	2227
be reduced by an amount equal to any allowance or benefit payable	2228
to the surviving spouse under section 742.3714 of the Revised	2229
Code.	2230

(3) A benefit granted to a surviving spouse under division	2231
(F)(1)(b) of this section shall commence on the first day of the	2232
month immediately following receipt by the board of a completed	2233
application on a form provided by the board and any evidence the	2234
board may require to establish that the deceased spouse was killed	2235
in the line of duty.	2236

(G)(1) If there is not a surviving spouse eligible to receive	2237
a death benefit under division (F) of this section or the	2238
surviving spouse receiving a death benefit under that division	2239
dies, a surviving child or children whose benefits under division	2240
(C) or (D) of this section are or have been terminated pursuant to	2241
division (C)(3) or (D)(3) of this section or who would qualify for	2242
a benefit under division (C) or (D) of this section except that	2243
the deceased member reached the member's retirement eligibility	2244
date prior to the member's death shall receive a monthly death	2245
benefit under this division. The monthly death benefit shall be	2246
one-half of an amount equal to the monthly salary received by the	2247
deceased member prior to the member's death, plus any salary	2248
increases the member would have received prior to the member's	2249
retirement eligibility date. If there is more than one surviving	2250
child, the benefit shall be divided equally among the surviving	2251
children.	2252

(2) If two or more surviving children each are receiving a	2253
benefit under this division and any of those children becomes	2254
ineligible to continue receiving a benefit as provided in division	2255
(H) of this section, the remaining eligible child or children	2256
shall receive an amount equal to one-half of the monthly salary	2257
received by the deceased member prior to death, plus any salary	2258
increases the deceased member would have received prior to the	2259
retirement eligibility date. If there is more than one remaining	2260
eligible child, the benefit shall be divided equally among the	2261
eligible children.	2262

(3) A death benefit, or portion of a death benefit, payable	2263
to a surviving child under this division shall be reduced by an	2264
amount equal to any allowance or benefit payable to that child	2265
under section 742.3714 of the Revised Code, but the reduction in	2266
that child's benefit shall not affect the amount payable to any	2267
other surviving child entitled to a portion of the death benefit.	2268

(H) A death benefit paid to a surviving child under division	2269
(C), (D), or (G) of this section shall terminate on the death of	2270
the child or, unless one of the following is the case, when the	2271
child reaches age eighteen:	2272

(1) The child, because of physical or mental disability, is	2273
unable to provide the child's own support, in which case the death	2274
benefit shall terminate when the disability is removed;	2275

(2) The child is unmarried, under age twenty-two, and a	2276
student in and attending an institution of learning or training	2277
pursuant to a program designed to complete in each school year the	2278
equivalent of at least two-thirds of the full-time curriculum	2279
requirements of the institution, as determined by the trustees of	2280
the fund.	2281

(I) Acceptance of any death benefit under this section does	2282
not prohibit a spouse or child from receiving other benefits	2283
provided under the Ohio police and fire pension fund, the state	2284
highway patrol retirement system, the public employees retirement	2285
system, or a retirement system operated by a municipal	2286
corporation.	2287

(J) No person shall receive a benefit under this section if	2288
any of the following occur:	2289

(1) The person fails to exercise the right to a monthly	2290
survivor benefit under division (A) or (B) of section 145.45,	2291
division (D), (E), or (F) of section 742.37, or division (A)(3),	2292
(4), or (7) of section 5505.17 of the Revised Code; to a monthly	2293
survivor benefit from a retirement system operated by a municipal	2294
corporation; or to a retirement allowance under section 742.3714	2295
of the Revised Code.	2296

(2) The member's accumulated contributions under this chapter	2297
or Chapter 145. or 5505. of the Revised Code are refunded unless	2298
the member had been a member of the public employees retirement	2299
system and had fewer than eighteen months of total service credit	2300
at the time of death.	2301

(3) In the case of a full-time park district ranger or patrol	2302
trooper, a full-time law enforcement officer of the department of	2303
natural resources, a full-time law enforcement officer of parks,	2304
waterway lands, or reservoir lands under the control of a	2305
municipal corporation, a full-time law enforcement officer of a	2306
conservancy district, a correction officer at an institution under	2307
the control of a county, group of counties, or municipal	2308
corporation, or a member of a retirement system operated by a	2309
municipal corporation who at the time of the member's death was a	2310
full-time law enforcement officer of parks, waterway lands, or	2311
reservoir lands under the control of the municipal corporation,	2312
the member died prior to April 9, 1981, in the case of a benefit	2313
under division (B), (C), or (D) of this section, or prior to	2314
January 1, 1980, in the case of a benefit under division (E) of	2315
this section.	2316

(4) In the case of a full-time department of public safety	2317
enforcement agent who prior to June 30, 1999, was a liquor control	2318
investigator of the department of public safety, the member died	2319
prior to December 23, 1986;	2320

(5) In the case of a full-time department of public safety	2321
enforcement agent other than an enforcement agent who, prior to	2322
June 30, 1999, was a liquor control investigator, the member died	2323
prior to June 30, 1999.	2324

(K) A surviving spouse whose benefit was terminated prior to	2325
June 30, 1999, due to remarriage shall receive a benefit under	2326
division (B), (D), or (F) of this section beginning on the first	2327
day of the month following receipt by the board of an application	2328
on a form provided by the board. The benefit amount shall be	2329
determined as of that date.	2330

(1) If the benefit will begin prior to the deceased member's	2331
retirement eligibility date, it shall be paid under division (B)	2332
or (D) of this section and shall terminate as provided in those	2333
divisions. A benefit paid to a surviving spouse under division (D)	2334
of this section shall be determined in accordance with that	2335
division, even if benefits paid to surviving children are reduced	2336
as a result.	2337

(2) If the benefit will begin on or after the deceased	2338
member's retirement eligibility date, it shall be paid under	2339
division (F) of this section and shall terminate as provided in	2340
that division. A benefit paid to a surviving spouse under division	2341
(F) of this section shall be determined in accordance with that	2342
division, even if benefits paid to surviving children are	2343
terminated as a result.	2344

Sec. 742.64.  If aany person who is a disability benefit	2345
recipient or an alternate payee, as defined in section 3105.80 of	2346
the Revised Code, is paid any benefit or payment by the Ohio	2347
police and fire pension fund to which the person is not entitled,	2348
the person shall repay the fund. If the person fails to repay, the	2349
fund shall withhold the amount due from any benefit or payment due	2350
the person or the person's beneficiary under this chapter or may	2351
collect the amount in any other manner provided by law.	2352

Section 2.  That existing sections 171.04, 742.01, 742.04,	2353
742.10, 742.14, 742.16, 742.30, 742.301, 742.31, 742.32, 742.33,	2354
742.34, 742.35, 742.37, 742.3711, 742.3716, 742.38, 742.39,	2355
742.44, 742.442, 742.443, 742.444, 742.45, 742.63, and 742.64 and	2356
section 742.011 of the Revised Code are hereby repealed.	2357

Section 3.  (A) The amendments by this act of sections	2358
742.33, 742.34, and 742.35 of the Revised Code regarding the	2359
frequency of employer payments to the Ohio Police and Fire Pension	2360
Fund apply to police officer employers' contributions and	2361
firefighter employers' contributions due the Fund for employee	2362
payrolls paid on or after the ninety-first day after the effective	2363
date of this section.	2364

(B) Police officer employers' contributions and firefighter	2365
employers' contributions due the Fund for employee payrolls paid	2366
before the ninety-first day after the effective date of this	2367
section shall be paid to the Fund not later than the date the	2368
contributions would have been due under section 742.33 or 742.34	2369
of the Revised Code, as those sections existed immediately prior	2370
to the effective date of this section.	2371

(C) Any applicable penalty determined under section 742.352	2372
of the Revised Code shall be assessed against an employer if the	2373
employer fails to make a payment on or before the date the payment	2374
is due.	2375