Sub. S. B. No. 42 As Reported by the House Rules and Reference Committee

As Reported by the House Rules and Reference Committee

130th General Assembly

Regular Session

2013-2014

Sub. S. B. No. 42

Senators Manning, Gardner

Cosponsors: Senators Seitz, Hite, Eklund, Oelslager, Patton, Peterson, Schaffer, Uecker
Representatives Amstutz, Schuring

A BILL

To amend sections 145.012, 145.09, 145.191, 145.194,

145.28, 145.29, 145.295, 145.297, 145.2914,

145.2915, 145.31, 145.311, 145.33, 145.35,

145.362, 145.363, 145.37, 145.384, 145.391,

145.40, 145.43, 145.431, 145.45, 145.46, 145.563,

145.58, 145.581, 145.584, 145.63, 145.64, 145.82,

145.88, 145.92, 145.95, 171.04, 311.01, 742.53,

742.63, 3307.04, 3307.35, 3307.39, 3307.41,

3307.56, 3307.563, 3307.57, 3307.58, 3307.62,

3307.66, 3307.70, 3307.71, 3307.711, 3307.73,

3309.01, 3309.11, 3309.26, 3309.261, 3309.28,

3309.301, 3309.35, 3309.381, 3309.42, 3309.45,

3309.49, 3309.51, 3309.55, 3309.56, 3309.57,

3309.571, 3309.691, 3309.82, 5505.03, 5505.04,

5505.12, 5505.14, 5505.15, 5505.16, 5505.17,

5505.174, 5505.18, 5505.33, 5505.34, 5505.59, and

5705.21; to enact sections 4113.75 and 5505.112

and new sections 145.402, 3307.561, and 3309.43;

and to repeal sections 145.402, 3307.561, and

3309.43 of the Revised Code to revise the law

governing Ohio's public retirement systems, to

allow a private sector employer to automatically

deduct from an employee's compensation

contributions to an employee retirement plan or

program, to change the optional qualifications to

be eligible for the office of sheriff, and to

authorize school districts with a safety and

security tax levy to report how the district is

using funding from that levy to the Ohio

Department of Education.

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

Section 1. That sections 145.012, 145.09, 145.191, 145.194,	31
145.28, 145.29, 145.295, 145.297, 145.2914, 145.2915, 145.31,	32
145.311, 145.33, 145.35, 145.362, 145.363, 145.37, 145.384,	33
145.391, 145.40, 145.43, 145.431, 145.45, 145.46, 145.563, 145.58,	34
145.581, 145.584, 145.63, 145.64, 145.82, 145.88, 145.92, 145.95,	35
171.04, 311.01, 742.53, 742.63, 3307.04, 3307.35, 3307.39,	36
3307.41, 3307.56, 3307.563, 3307.57, 3307.58, 3307.62, 3307.66,	37
3307.70, 3307.71, 3307.711, 3307.73, 3309.01, 3309.11, 3309.26,	38
3309.261, 3309.28, 3309.301, 3309.35, 3309.381, 3309.42, 3309.45,	39
3309.49, 3309.51, 3309.55, 3309.56, 3309.57, 3309.571, 3309.691,	40
3309.82, 5505.03, 5505.04, 5505.12, 5505.14, 5505.15, 5505.16,	41
5505.17, 5505.174, 5505.18, 5505.33, 5505.34, 5505.59, and 5705.21	42
be amended and sections 4113.75 and 5505.112 and new sections	43
145.402, 3307.561, and 3309.43 of the Revised Code be enacted as	44
follows:	45

Sec. 145.012. (A) "Public employee," as defined in division	46
(A) of section 145.01 of the Revised Code, does not include any	47
person:	48

(1) Who is employed by a private, temporary-help service and	49
performs services under the direction of a public employer or is	50
employed on a contractual basis as an independent contractor under	51
a personal service contract with a public employer;	52

(2) Who is an emergency employee serving on a temporary basis	53
in case of fire, snow, earthquake, flood, or other similar	54
emergency;	55

(3) Who is employed in a program established pursuant to the	56
"Job Training Partnership Act," 96 Stat. 1322 (1982), 29 U.S.C.A.	57
1501;	58

(4) Who is an appointed member of either the motor vehicle	59
salvage dealers board or the motor vehicle dealer's board whose	60
rate and method of payment are determined pursuant to division (J)	61
of section 124.15 of the Revised Code;	62

(5) Who is employed as an election worker and paid less than	63
~~five~~six hundred dollars per calendar year for that service;	64

(6) Who is employed as a firefighter in a position requiring	65
satisfactory completion of a firefighter training course approved	66
under former section 3303.07 or section 4765.55 of the Revised	67
Code or conducted under section 3737.33 of the Revised Code except	68
for the following:	69

(a) Any firefighter who has elected under section 145.013 of	70
the Revised Code to remain a contributing member of the public	71
employees retirement system;	72

(b) Any firefighter who was eligible to transfer from the	73
public employees retirement system to the Ohio police and fire	74
pension fund under section 742.51 or 742.515 of the Revised Code	75
and did not elect to transfer;	76

(c) Any firefighter who has elected under section 742.516 of	77
the Revised Code to transfer from the Ohio police and fire pension	78
fund to the public employees retirement system.	79

(7) Who is a member of the board of health of a city or	80
general health district, which pursuant to sections 3709.051 and	81
3709.07 of the Revised Code includes a combined health district,	82
and whose compensation for attendance at meetings of the board is	83
set forth in division (B) of section 3709.02 or division (B) of	84
section 3709.05 of the Revised Code, as appropriate;	85

(8) Who participates in an alternative retirement plan	86
established under Chapter 3305. of the Revised Code;	87

(9) Who is a member of the board of directors of a sanitary	88
district established under Chapter 6115. of the Revised Code;	89

(10) Who is a member of the unemployment compensation	90
advisory council;	91

(11) Who is an employee, officer, or governor-appointed	92
member of the board of directors of the nonprofit corporation	93
formed under section 187.01 of the Revised Code;	94

(12) Who is employed by the nonprofit entity established to	95
provide advocacy services and a client assistance program for	96
people with disabilities under Section 319.20 of Am. Sub. H.B. 153	97
of the 129th general assembly and whose employment begins on or	98
after October 1, 2012.	99

(B) No inmate of a correctional institution operated by the	100
department of rehabilitation and correction, no patient in a	101
hospital for the mentally ill or criminally insane operated by the	102
department of mental health and addiction services, no resident in	103
an institution for the mentally retarded operated by the	104
department of developmental disabilities, no resident admitted as	105
a patient of a veterans' home operated under Chapter 5907. of the	106
Revised Code, and no resident of a county home shall be considered	107
as a public employee for the purpose of establishing membership or	108
calculating service credit or benefits under this chapter. Nothing	109
in this division shall be construed to affect any service credit	110
attained by any person who was a public employee before becoming	111
an inmate, patient, or resident at any institution listed in this	112
division, or the payment of any benefit for which such a person or	113
such a person's beneficiaries otherwise would be eligible.	114

Sec. 145.09. The public employees retirement board shall	115
elect from its membership a chairperson~~, and~~. The board shall	116
appoint an executive director who shall serve as secretary to the	117
board, an actuary, and other employees as necessary for the	118
transaction of the business of the public employees retirement	119
system. The compensation of all persons so appointed shall be	120
fixed by the board. Such persons appointed by the board are not	121
employees of the state and are not subject to Chapter 124. of the	122
Revised Code.	123

If the board provides health care coverage to employees of	124
the retirement system, it may permit employees of the Ohio public	125
employees deferred compensation board to participate.	126

Effective ninety days after September 15, 2004, the board may	127
not employ a state retirement system investment officer, as	128
defined in section 1707.01 of the Revised Code, who does not hold	129
a valid state retirement system investment officer license issued	130
by the division of securities in the department of commerce.	131

Every expense voucher of an employee, officer, or board	132
member of the public employees retirement system shall itemize all	133
purchases and expenditures.	134

The board shall perform other functions as required for the	135
proper execution of this chapter, and may adopt rules in	136
accordance with section 111.15 of the Revised Code for the proper	137
administration and management of this chapter.	138

The board may take all appropriate action to avoid payment by	139
the system or its members of federal or state income taxes on	140
contributions to the system or amounts earned on such	141
contributions.	142

Notice of proposed rules shall be given to interested parties	143
and rules adopted by the board shall be published and otherwise	144
made available. When it files a rule with the joint committee on	145
agency rule review pursuant to section 111.15 of the Revised Code,	146
the board shall submit to the Ohio retirement study council a copy	147
of the full text of the rule, and if applicable, a copy of the	148
rule summary and fiscal analysis required by division (B) of	149
section 127.18 of the Revised Code.	150

The board may sue and be sued, plead and be impleaded,	151
contract and be contracted with. All of its business shall be	152
transacted, all of its funds invested, all warrants for money	153
drawn and payments made, and all of its cash and securities and	154
other property shall be held in the name of the board, or in the	155
name of its nominee, provided that nominees are authorized by	156
retirement board resolution for the purpose of facilitating the	157
ownership and transfer of investments.	158

If the Ohio retirement study council establishes a uniform	159
format for any report the board is required to submit to the	160
council, the board shall submit the report in that format.	161

Sec. 145.191. (A) Except as provided in division (F) of this	162
section, a public employees retirement system member or	163
contributor who, as of December 31, 2002, has less than five years	164
of total service credit is eligible to make an election under this	165
section. A member or contributor who is employed in more than one	166
position subject to this chapter is eligible to make only one	167
election. The election applies to all positions subject to this	168
chapter.	169

Not later than June 30, 2003, an eligible member or	170
contributor may elect to participate in a PERS defined	171
contribution plan. Unless a form evidencing an election is	172
received by the system on or before that date, a member or	173
contributor to whom this section applies is deemed to have elected	174
to continue participating in the PERS defined benefit plan.	175

(B) An election under this section shall be made in writing	176
on a form provided by the system and filed with the system.	177

(C) On the request of a member or contributor who made an	178
election under this section, the system shall credit to the plan	179
elected the accumulated contributions standing to the credit of	180
the member or contributor in the employees' savings fund and	181
cancel all service credit and eligibility for any payment,	182
benefit, or right under the PERS defined benefit plan.	183

(D) For each member or contributor who elected under this	184
section to participate in a PERS defined contribution plan and	185
made a request under division (C) of this section, any additional	186
deposits that were made by the member or contributor prior to	187
April 6, 2007, under the version of division (C) of section 145.23	188
of the Revised Code as it existed immediately prior to that date	189
shall be credited to the defined contribution plan.	190

(E) An election under this section is effective as of January	191
1, 2003, and, except as provided in section 145.814 of the Revised	192
Code or rules governing the PERS defined benefit plan, is	193
irrevocable on receipt by the system.	194

(F) An election may not be made under this section by a	195
member or contributor who is either of the following:	196

(1) A PERS retirant who is a member under division ~~(D)~~(C) of	197
section 145.38 of the Revised Code;	198

(2) A PERS law enforcement officer or a PERS public safety	199
officer.	200

Sec. 145.194. (A) A member participating in a PERS defined	201
contribution plan ~~at the time of commencing employment as~~who	202
becomes a PERS law enforcement officer or PERS public safety	203
officer shall cease making contributions to ~~that~~a PERS defined	204
contribution plan. During employment as a PERS law enforcement	205
officer or a PERS public safety officer and any concurrent	206
employment in a position subject to this chapter, the member shall	207
contribute only to the PERS defined benefit plan.	208

(B) A member described in division (A) of this section with	209
contributions standing to the member's credit in a PERS defined	210
contribution plan may elect to have those contributions deposited	211
and credited in the PERS defined benefit plan in accordance with	212
section 145.814 of the Revised Code and rules governing the PERS	213
defined benefit plan.	214

Sec. 145.28. (A)~~(1)~~As used in this section, "paying system"	215
and "transferring system" have the same meanings as in section	216
145.37 of the Revised Code.	217

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	218
section, a member of the public employees retirement system with	219
at least eighteen months of contributing service in the system,	220
the state teachers retirement system, or the school employees	221
retirement system who exempted self from membership in one or more	222
of the systems pursuant to section 145.03 or 3309.23 of the	223
Revised Code, or former section 3307.25 or 3309.25 of the Revised	224
Code, or was exempt under section 3307.24 of the Revised Code, may	225
purchase credit for each year or portion of a year of service for	226
which the member was exempted.	227

(2) A member may not purchase credit under this section for	228
exempted service if the service was exempted from contribution	229
under section 145.03 of the Revised Code and subject to the tax on	230
wages imposed by the "Federal Insurance Contributions Act," 68A	231
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended.	232

~~(B)~~(C) Credit shall be purchased under this section in	233
accordance with section 145.29 of the Revised Code.	234

~~(C)~~(D) Credit purchasable under this section shall not exceed	235
one year of service for any twelve-month period. If the period of	236
service for which credit is purchasable under this section is	237
concurrent with a period of service that will be used to calculate	238
a retirement benefit from this system, the state teachers	239
retirement system, or school employees retirement system, the	240
amount of the credit shall be adjusted in accordance with rules	241
adopted by the public employees retirement board.	242

A member who is also a member of the state teachers	243
retirement system or the school employees retirement system shall	244
purchase credit for any service for which the member exempted self	245
under section 145.03 or 3309.23 of the Revised Code, or former	246
section 3307.25 or 3309.25 of the Revised Code, or was exempt	247
under section 3307.24 of the Revised Code, from the retirement	248
system in which the member has the greatest number of years of	249
service credit. If the member receives benefits under section	250
145.37 of the Revised Code, the ~~retirement~~ system that ~~determines~~	251
~~and pays the benefit~~is the paying system under that section shall	252
receive from the ~~other~~ system or systems that are transferring	253
systems the amounts paid by the member for purchase of credit for	254
exempt service plus interest at the actuarial assumption rate of	255
the transferring system ~~paying that amount~~. The interest shall be	256
for the period beginning on the date of the member's last payment	257
for purchase of the credit and ending on the date of the member's	258
retirement.	259

~~(D) If a member dies or withdraws from service, any payment~~	260
~~made by the member under this section shall be considered as~~	261
~~accumulated contributions of the member.~~	262

(E) The retirement board shall adopt rules to implement this	263
section.	264

Sec. 145.29. (A) A member of the public employees retirement	265
system who elects to purchase or otherwise obtain service credit	266
under section 145.28, 145.291, 145.292, 145.293, or 145.299 or	267
division (G) of section 145.47 of the Revised Code shall do both	268
of the following:	269

(1) Submit a request to the public employees retirement board	270
in a manner or form approved by the board;	271

(2) For each year, or portion of a year, of credit purchased	272
or otherwise obtained, pay to the employees' savings fund an	273
amount specified by the board that is equal to one hundred per	274
cent of the additional liability resulting from purchasing or	275
obtaining that year or portion of a year of credit as determined	276
by an actuary employed by the board.	277

(B) Subject to board rules, a member may choose to purchase	278
or otherwise obtain in any one payment only part of any service	279
credit listed in division (A) of this section.	280

(C) If a member dies or withdraws from service, any payment	281
made by the member to purchase or obtain any service credit listed	282
in division (A) of this section shall be considered as accumulated	283
contributions of the member.	284

Sec. 145.295. (A) As used in this section and section	285
145.2913 of the Revised Code:	286

(1) "Uniform retirement system" or "uniform system" means the	287
Ohio police and fire pension fund or state highway patrol	288
retirement system.	289

(2) "Military service credit" means credit purchased or	290
obtained under this chapter or Chapter 742. or 5505. of the	291
Revised Code for service in the armed forces of the United States.	292

(B) A member of the public employees retirement system who	293
has contributions on deposit with, but is no longer contributing	294
to, a uniform retirement system shall, in computing years of	295
service, be given full credit for service credit earned under	296
Chapter 742. or 5505. of the Revised Code or for military service	297
credit if a transfer to the public employees retirement system is	298
made under this division. At the request of the member a transfer	299
shall be made if all of the following conditions are met:	300

(1) The member's service credit in the public employees	301
retirement system is greater than the amount of credit that would	302
be transferred under this division.	303

(2) The member is eligible, or with the credit will be	304
eligible, for a retirement or disability benefit.	305

~~(2)~~(3) The member agrees to retire or accept a disability	306
benefit not later than ninety days after receiving notice from the	307
public employees retirement system that the credit has been	308
obtained.	309

~~(3)~~(4) For each year of service the uniform system transfers	310
to the public employees retirement system the sum of the	311
following:	312

(a) An amount equal to the member's accumulated contributions	313
to the uniform system making the transfer and any payments by the	314
member for military service credit;	315

(b) An amount equal to the lesser of the employer's	316
contributions to the uniform system or the appropriate employer	317
contribution under section 145.48 or 145.49 of the Revised Code;	318

(c) Interest, determined as provided in division (H) of this	319
section, on the amounts specified in divisions (B)~~(3)~~(4)(a) and	320
(b) of this section for the period from the last day of the year	321
for which the service credit in the uniform system was earned or	322
in which the military service credit was purchased or obtained to	323
the date the transfer is made.	324

(C) A member of the public employees retirement system who	325
has at least eighteen months of contributing service credit with	326
the public employees retirement system, who is a former member of	327
a uniform retirement system, and who has received a refund of the	328
member's accumulated contributions to that uniform system may	329
obtain credit for service credit earned under Chapter 742. or	330
5505. of the Revised Code or for military service credit if all of	331
the following conditions are met:	332

(1) The member's service credit in the public employees	333
retirement system is greater than the amount of credit that would	334
be transferred under this division.	335

(2) The member is eligible, or with the credit will be	336
eligible, for a retirement or disability benefit.	337

~~(2)~~(3) The member agrees to retire or accept a disability	338
benefit not later than ninety days after receiving notice from the	339
public employees retirement system that the credit has been	340
obtained.	341

~~(3)~~(4) For each year of service, the public employees	342
retirement system receives the sum of the following:	343

(a) An amount, which shall be paid by the member, equal to	344
the amount refunded by the uniform system to the member for that	345
year for accumulated contributions and payments for military	346
service credit, with interest at a rate established by the public	347
employees retirement board on that amount from the date of the	348
refund to the date of the payment;	349

(b) Interest, which shall be transferred by the uniform	350
system, on the amount refunded to the member that is attributable	351
to the year of service from the last day of the year for which the	352
service credit was earned or in which payment was made for	353
military service credit to the date the refund was made;	354

(c) An amount, which shall be transferred by the uniform	355
system, equal to the lesser of the employer's contributions to the	356
uniform system or the appropriate employer contribution under	357
section 145.48 or 145.49 of the Revised Code, with interest on	358
that amount from the last day of the year for which the service	359
credit was earned or in which payment was made for military	360
service credit to the date of the transfer.	361

On receipt of payment from the member, the public employees	362
retirement system shall notify the uniform system, which, on	363
receipt of the notice, shall make the transfer required by this	364
division. Interest shall be determined as provided in division (H)	365
of this section.	366

(D) A member of the public employees retirement system who	367
purchased credit under former division (A)(1) of this section, as	368
it existed before August 25, 1995, for service as a member of a	369
uniform retirement system may elect to have the amount the member	370
paid for this service credit refunded to the member under this	371
division if the member agrees to repurchase this service credit	372
pursuant to division (C) of this section.	373

(E) Service credit purchased or otherwise obtained under this	374
section shall be considered the equivalent of Ohio service credit.	375

The public employees retirement system shall withdraw the	376
credit and refund all amounts paid or transferred under this	377
section if either of the following occurs:	378

(1) The member fails to retire or accept a disability benefit	379
not later than ninety days after receiving notice from the public	380
employees retirement system that credit has been obtained.	381

(2) The member's application for a disability benefit is	382
denied.	383

A member may choose to purchase only part of the credit the	384
member is eligible to purchase under division (C) of this section,	385
subject to rules of the public employees retirement board. A	386
member is ineligible to purchase or otherwise obtain credit under	387
this section for service to be used in calculation of any	388
retirement benefit currently being paid or payable to the member	389
in the future under any other retirement program or for service	390
credit that may be transferred under section 145.2913 of the	391
Revised Code.	392

(F) If a member of the public employees retirement system who	393
is not a current contributor elects to receive credit under	394
section 742.21 or 5505.40 of the Revised Code for service for	395
which the member contributed to the system or made payment for	396
military service credit, the system shall transfer to the Ohio	397
police and fire pension fund or the state highway patrol	398
retirement system, as applicable, the amount specified in division	399
(D) of section 742.21 or division (B)(2) of section 5505.40 of the	400
Revised Code.	401

(G) A member of the public employees retirement system who	402
earned service credit in the public employees retirement system	403
for full-time service as a township or municipal police officer	404
and received service credit in the Ohio police and fire pension	405
fund under section 742.511 or 742.512 of the Revised Code for such	406
service may elect to have the credit restored as public employees	407
retirement system service credit by paying the public employees	408
retirement system an amount equal to the accumulated contributions	409
paid by the member to the Ohio police and fire pension fund under	410
section 742.511 or 742.512 of the Revised Code. When such an	411
election is made, the Ohio police and fire pension fund shall	412
transfer to the public employees retirement system the amount	413
previously transferred under section 742.511 or 742.512 of the	414
Revised Code from the public employees retirement system to the	415
Ohio police and fire pension fund.	416

(H) Interest charged under this section shall be calculated	417
separately for each year of service credit. Unless otherwise	418
specified in this section, it shall be calculated at the lesser of	419
the actuarial assumption rate for that year of the public	420
employees retirement system or of the uniform retirement system in	421
which the credit was earned. The interest shall be compounded	422
annually.	423

(I) At the request of the public employees retirement system,	424
the uniform retirement system shall certify to the public	425
employees retirement system a copy of the records of the service	426
and contributions of a public employees retirement system member	427
who seeks service credit under this section.	428

Sec. 145.297. (A) As used in this section, "employing unit"	429
means:	430

(1) A municipal corporation, agency of a municipal	431
corporation designated by the legislative authority, park	432
district, conservancy district, sanitary district, health	433
district, township, department of a township designated by the	434
board of township trustees, metropolitan housing authority, public	435
library, county law library, union cemetery, joint hospital, or	436
other political subdivision or unit of local government.	437

(2) With respect to state employees, any entity of the state	438
including any department, agency, institution of higher education,	439
board, bureau, commission, council, office, or administrative body	440
or any part of such entity that is designated by the entity as an	441
employing unit.	442

(3)(a) With respect to employees of a board of alcohol, drug	443
addiction, and mental health services, that board.	444

(b) With respect to employees of a county board of	445
developmental disabilities, that board.	446

(c) With respect to other county employees, the county or any	447
county agency designated by the board of county commissioners.	448

(4) In the case of an employee whose employing unit is in	449
question, the employing unit is the unit through whose payroll the	450
employee is paid.	451

(B) An employing unit may establish a retirement incentive	452
plan for its eligible employees. In the case of a county or county	453
agency, decisions on whether to establish a retirement incentive	454
plan for any employees other than employees of a board of alcohol,	455
drug addiction, and mental health services or county board of	456
developmental disabilities and on the terms of the plan shall be	457
made by the board of county commissioners. In the case of a	458
municipal corporation or an agency of a municipal corporation,	459
decisions on whether to establish a retirement incentive plan and	460
on the terms of the plan shall be made by the legislative	461
authority.	462

All terms of a retirement incentive plan shall be in writing.

463

A retirement incentive plan shall provide for purchase by the	464
employing unit of service credit for eligible employees who elect	465
to participate in the plan and for payment by the employing unit	466
of the entire cost of the service credit purchased.	467

Every retirement incentive plan shall remain in effect for at	468
least one year. The employing unit shall give employees at least	469
thirty days' notice before terminating the plan.	470

Every retirement incentive plan shall include provisions for	471
the timely and impartial resolution of grievances and disputes	472
arising under the plan.	473

No employing unit shall have more than one retirement	474
incentive plan in effect at any time.	475

(C) Any classified or unclassified employee of the employing	476
unit who is a member of the public employees retirement system	477
shall be eligible to participate in the retirement incentive plan	478
established by the employee's employing unit if the employee meets	479
the following criteria:	480

(1) The employee is not any of the following:

481

(a) An elected official;

482

(b) A member of a board or commission;

483

484

(d) A person appointed to serve a term of fixed length, other	485
than a person appointed and employed by the person's employing	486
unit.	487

(2) The employee is or will be eligible to retire under	488
section 145.33~~, 145.332,~~ or 145.37 of the Revised Code on or	489
before the date of termination of the retirement incentive plan.	490
Service credit to be purchased for the employee under the	491
retirement incentive plan shall be included in making such	492
determination.	493

(3) The employee agrees to retire under section 145.33,	494
~~145.332,~~ or 145.37 of the Revised Code within ninety days after	495
receiving notice from the public employees retirement system that	496
service credit has been purchased for the employee under this	497
section.	498

Participation in the plan shall be available to all eligible	499
employees except that the employing unit may limit the number of	500
participants in the plan to a specified percentage of its	501
employees who are members of the public employees retirement	502
system on the date the plan goes into effect. The percentage shall	503
not be less than five per cent of such employees. If participation	504
is limited, employees with more total service credit have the	505
right to elect to participate before employees with less total	506
service credit. In the case of employees with the same total	507
service credit, employees with a greater length of service with	508
the employing unit have the right to elect to participate before	509
employees with less service with the employing unit. Employees	510
with less than eighteen months of service with the employing unit	511
have the right to elect to participate only after all other	512
eligible employees have been given the opportunity to elect to	513
participate. For the purpose of determining which employees may	514
participate in a plan, total service credit includes service	515
credit purchased by the employee under this chapter after the date	516
on which the plan is established.	517

A retirement incentive plan that limits participation may	518
provide that an employee who does not notify the employing unit of	519
the employee's decision to participate in the plan within a	520
specified period of time will lose priority to participate in the	521
plan ahead of other employees with less seniority. The time given	522
to an employee to elect to participate ahead of other employees	523
shall not be less than thirty days after the employee receives	524
written notice that the employee may participate in the plan.	525

(D) A retirement incentive plan shall provide for purchase of	526
the same amount of service credit for each participating employee,	527
except that the employer may not purchase more service credit for	528
any employee than the lesser of the following:	529

(1) Five years of service credit;

530

(2) An amount of service credit equal to one-fifth of the	531
total service credited to the participant under this chapter,	532
exclusive of service credit purchased under this section.	533

For each year of service credit purchased under this section,	534
the employing unit shall pay an amount equal to the additional	535
liability resulting from the purchase of that year of service	536
credit, as determined by an actuary employed by the public	537
employees retirement board.	538

(E) Upon the election by an eligible employee to participate	539
in the retirement incentive plan, the employee and the employing	540
unit shall agree upon a date for payment or contracting for	541
payment in installments to the public employees retirement system	542
of the cost of the service credit to be purchased. The employing	543
unit shall submit to the public employees retirement system a	544
written request for a determination of the cost of the service	545
credit, and within forty-five days after receiving the request,	546
the board shall give the employing unit written notice of the	547
cost.	548

The employing unit shall pay or contract to pay in	549
installments the cost of the service credit to be purchased to the	550
public employees retirement system on the date agreed to by the	551
employee and the employing unit. The payment shall be made in	552
accordance with rules adopted by the public employees retirement	553
board. The rules may provide for payment in installments and for	554
crediting the purchased credit to the employee's account upon the	555
employer's contracting to pay the cost in installments. The board	556
shall notify the member when the member is credited with service	557
purchased under this section. If the employee does not retire	558
within ninety days after receiving notice that the employee has	559
been credited with the purchased service credit, the system shall	560
refund to the employing unit the amount paid for the service	561
credit.	562

No payment made to the public employees retirement system	563
under this section shall affect any payment required by section	564
145.48 of the Revised Code.	565

(F) For the purpose of determining whether the cost of a	566
retirement incentive plan established by a county or county agency	567
under this section is an allowable cost for the purpose of federal	568
funding for any year, the cost shall be considered abnormal or	569
mass severance pay only if fifteen per cent or more of the county	570
or county agency's employees participate in the plan in that year.	571

Nothing in this division shall relieve a county or county	572
agency from seeking federal approval for any early retirement	573
incentive plan that uses federal dollars in accordance with	574
federal law.	575

Sec. 145.2914. (A) The public employees retirement board may	576
adopt rules in accordance with section 145.09 of the Revised Code	577
to establish a program under which service credit earned under	578
section 145.33 of the Revised Code or division (A)(2),	579
(B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised Code is	580
treated as service credit earned under division (A)(1), (B)(1)(a),	581
or (C)(1) of section 145.332 of the Revised Code if the member	582
elects to do one of the following:	583

(1) Have the amount of service credit earned under section	584
145.33 of the Revised Code or division (A)(2), (B)~~(2)~~(1)(b), or	585
(C)(2) of section 145.332 of the Revised Code reduced so there is	586
no additional liability to the public employees retirement system;	587

(2) Make payment to the public employees retirement system in	588
accordance with the rules. The number of years of service credit	589
earned under section 145.33 of the Revised Code or division	590
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	591
Code that may be treated as service credit earned under division	592
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	593
Code shall not exceed five.	594

(B) If the board adopts rules under division (A) of this	595
section, all of the following apply to payments made under	596
division (A)(2) of this section:	597

(1) For each year or portion of a year of service credit	598
earned under section 145.33 of the Revised Code or division	599
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	600
Code that is to be treated as service credit earned under division	601
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	602
Code, the member shall pay to the retirement system an amount	603
specified by the retirement board that is not less than one	604
hundred per cent of the additional liability resulting from the	605
purchase of that year, or portion of a year, of service.	606

(2) Any amounts paid under this section shall be credited to	607
the employees' savings fund.	608

(3) The amounts paid by the member under this section are	609
subject to the limits established by division (n) of section 415	610
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	611
415(n), as amended.	612

(C) A member may make the election authorized by this section	613
if the member is eligible to retire under this chapter or will	614
become eligible to retire as a result of the election. The member	615
shall agree to retire not later than ninety days after making the	616
election under division (A)(1) of this section or receiving notice	617
of the additional liability specified under division (B)(1) of	618
this section. If the member makes the election under division	619
(A)(2) of this section, payment shall be made in full for any	620
credit earned under section 145.33 of the Revised Code or division	621
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	622
Code that is to be treated as service credit earned under division	623
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	624
Code, but the member may choose to make payment for only part of	625
the credit for which the member is eligible.	626

(D) If the member does not retire not later than ninety days	627
after making the election under division (A)(1) of this section or	628
the payment under division (A)(2) of this section, the system	629
shall refund any payment and shall not treat the credit as service	630
credit earned under division (A)(1), (B)(1)(a), or (C)(1) of	631
section 145.332 of the Revised Code.	632

(E) The board's rules may deal with any other matter	633
necessary to implement this section.	634

Sec. 145.2915. (A) As used in this section, "workers'	635
compensation" means benefits paid under Chapter 4121. or 4123. of	636
the Revised Code.	637

(B) A member of the public employees retirement system may	638
purchase service credit under this section for any period during	639
which the member was out of service with a public employer and	640
receiving workers' compensation if the member returns to	641
employment covered by this chapter.	642

643

(1) If the member is employed by one public employer, for	644
each year of credit, the member shall pay to the system for credit	645
to the employees' savings fund an amount equal to the employee	646
contribution required under section 145.47 of the Revised Code	647
that would have been paid had the member not been out of service	648
based on the salary of the member before the member was out of	649
service. To this amount shall be added an amount equal to compound	650
interest at a rate established by the public employees retirement	651
board from the first date the member was out of service to the	652
final date of payment.	653

(2) If the member is employed by more than one public	654
employer, the member is eligible to purchase credit under this	655
section and make payments under division (C)(1)~~(b)~~ of this section	656
only for the position for which the member received workers'	657
compensation. For each year of credit, the member shall pay to the	658
system for credit to the employees' savings fund an amount equal	659
to the employee contribution required under section 145.47 of the	660
Revised Code that would have been paid had the member not been out	661
of service based on the salary of the member earned for the	662
position for which the member received workers' compensation	663
before the member was out of service. To this amount shall be	664
added an amount equal to compound interest at a rate established	665
by the public employees retirement board from the first date the	666
member was out of service to the final date of payment.	667

(D) The member may choose to purchase only part of such	668
credit in any one payment, subject to board rules.	669

(E) If a member makes a payment under division (C) of this	670
section, the employer to which workers' compensation benefits are	671
attributed shall pay to the system for credit to the employers'	672
accumulation fund an amount equal to the employer contribution	673
required under section 145.48 or 145.49 of the Revised Code	674
corresponding to that payment that would have been paid had the	675
member not been out of service based on the salary of the member	676
before the member was out of service.	677

Compound interest at a rate established by the board from the	678
later of the member's date of re-employment or ~~the effective date~~	679
~~of this section~~January 7, 2013, to the date of payment shall be	680
added to this amount if the employer pays all or any portion of	681
the amount ~~later than~~after the end of the earlier of the	682
following:	683

(1) A period of five years ~~or a~~;

684

(2) A period that is three times the period during which the	685
member was out of service and receiving workers' compensation	686
~~beginning from~~.	687

The period described in division (E)(1) or (2) of this	688
section begins with the later of the member's date of	689
re-employment or ~~the effective date of this section~~January 7,	690
2013.	691

(F) The number of years purchased under this section shall	692
not exceed three. Credit purchased under this section may be	693
combined pursuant to section 145.37 of the Revised Code with	694
credit purchased or obtained under Chapter 3307. or 3309. of the	695
Revised Code for periods the member was out of service and	696
receiving workers' compensation, but not more than a total of	697
three years of credit may be used in determining retirement	698
eligibility or calculating benefits under section 145.37 of the	699
Revised Code.	700

Sec. 145.31. (A)(1) Except as provided in this section, a	701
member or former member of the public employees retirement system	702
with at least eighteen months of contributing service credit in	703
this system, the state teachers retirement system, the school	704
employees retirement system, the Ohio police and fire pension	705
fund, or the state highway patrol retirement system, after the	706
withdrawal of accumulated contributions and cancellation of	707
service credit in this system, may restore such service credit by	708
redepositing the amount withdrawn, with interest on such amount	709
compounded annually at a rate to be determined by the public	710
employees retirement board from the first day of the month of	711
withdrawal to and including the month of redeposit. ~~The~~	712

(2) The amount redeposited shall be credited as follows:

713

~~(1)~~(a) The amount that equals the amount, if any, included	714
under section 145.401 of the Revised Code in the withdrawal of	715
accumulated contributions under section 145.40 of the Revised Code	716
shall be credited to the employers' accumulation fund.	717

~~(2)~~(b) The remaining amount shall be credited to the member's	718
account in the employees' savings fund.	719

(3) If the accumulated contributions were withdrawn under	720
section 145.402 of the Revised Code, service credit may be	721
restored only if the member or former member accrued eighteen	722
months of contributing service credit after withdrawal of the	723
accumulated contributions.	724

(B) The member may choose to purchase only part of ~~such~~the	725
credit available under this section in any one payment, subject to	726
board rules. Except for any amount included under section 145.401	727
of the Revised Code in the withdrawal of accumulated contributions	728
under section 145.40 of the Revised Code, the total payment to	729
restore canceled service credit, plus any interest credited	730
thereto, shall be considered as accumulated contributions of the	731
member. If a former member is eligible to buy the service credit	732
as a member of the Ohio police and fire pension fund, state	733
highway patrol retirement system, or the city of Cincinnati	734
retirement system, the former member is ineligible to restore that	735
service credit under this section.	736

(C) Any employee who has been refunded the employee's	737
accumulated contributions to the public employees retirement	738
system solely by reason of membership in a former firemen's relief	739
and pension fund or a former police relief and pension fund may	740
restore membership in the public employees retirement system by	741
redepositing with the system the amount refunded, with interest on	742
such amount compounded annually at a rate to be determined by the	743
board from the month of refund to and including the month of	744
redeposit. The member may choose to purchase only part of such	745
credit in any one payment, subject to board rules.	746

~~(B)~~(D) In lieu of an amount required by division (A) of this	747
section, the board may by rule require deposit of an amount	748
specified in the rule. The amount shall not exceed the additional	749
liability to the retirement system that results from granting the	750
credit.	751

Sec. 145.311. (A) A member of the public employees	752
retirement system who has at least eighteen months of contributing	753
service credit in the system, the Ohio police and fire pension	754
fund, school employees retirement system, state teachers	755
retirement system, or state highway patrol retirement system, and	756
is a former member of or no longer contributing to the school	757
employees retirement system or state teachers retirement system	758
may restore service credit under section 3307.71 or 3309.26 of the	759
Revised Code by making payments pursuant to this section through a	760
payroll deduction plan established under section 145.294 of the	761
Revised Code. A member seeking to restore this service credit	762
shall notify the public employees retirement system on a form	763
approved by the public employees retirement board. After receiving	764
the notice, the public employees retirement system shall request	765
that the former retirement system calculate under section 3307.712	766
or 3309.262 of the Revised Code the cost to the member to restore	767
service credit for each year or portion of a year of service for	768
which the member seeks to restore the service credit. The amount	769
the former retirement system certifies as the cost of restoring	770
the service credit, plus interest described in division (B) of	771
this section, is the cost to the member of restoring the service	772
credit. On receiving the certification from the former retirement	773
system, the public employees retirement system shall notify the	774
member of the cost.	775

(B) For each year or portion of a year of service credit	776
restored under section 3307.71 or 3309.26 of the Revised Code, a	777
member shall pay to the public employees retirement system the	778
amount certified by the former retirement system plus interest at	779
a rate specified by the former retirement system under section	780
3307.712 or 3309.262 of the Revised Code for the period during	781
which deductions are made under section 145.294 of the Revised	782
Code.	783

(C) The public employees retirement board shall at least	784
annually ~~notify~~transmit to the former retirement system ~~that a~~	785
~~payment~~notice and any payments made to restore service credit	786
under section 3307.71 or 3309.26 of the Revised Code ~~has been~~	787
~~made~~. ~~At the time the payment is transferred under division (D) of~~	788
~~this section, the~~The former retirement system shall restore the	789
service credit for the year or portion of a year for which the	790
payment was made.	791

(D) ~~On application for a payment of accumulated contributions~~	792
~~or an age and service retirement, disability, or survivor benefit~~	793
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	794
~~member who made payments under this section to restore service~~	795
~~credit in a former retirement system, the public employees~~	796
~~retirement system shall pay to the former retirement system an~~	797
~~amount equal to the total amount paid by the member under this~~	798
~~section.~~	799

~~(E)~~ The board shall adopt rules to implement this section.

800

Sec. 145.33. (A)(1) Except as provided in section 145.332 of	801
the Revised Code, when a member retires on age and service	802
retirement, the member's total annual single lifetime allowance	803
shall be an amount adjusted in accordance with division (A)(2) or	804
(B) of this section and determined by multiplying the member's	805
total service credit by the following:	806

(a) If the member is eligible for age and service retirement	807
under division (A) or (B) of section 145.32 of the Revised Code,	808
two and two-tenths per cent of the member's final average salary	809
for each of the first thirty years of service plus two and	810
one-half per cent of the member's final average salary for each	811
subsequent year of service;	812

(b) If the member is eligible for age and service retirement	813
under division (C) of section 145.32 of the Revised Code, two and	814
two-tenths per cent of the member's final average salary for each	815
of the first thirty-five years of service plus two and one-half	816
per cent of the member's final average salary for each subsequent	817
year of service.	818

(2)(a) For a member eligible to retire under division (A) of	819
section 145.32 of the Revised Code, the member's allowance under	820
division (A)(1) of this section shall be adjusted by the factors	821
of attained age or years of service to provide the greater amount	822
as determined by the following schedule:	823

		Years of	Percentage	824
Attained	or	Total Service	of	825
Birthday		Credit	Base Amount	826

58	25	75	827
59	26	80	828
60	27	85	829
61		88	830
	28	90	831
62		91	832
63		94	833
	29	95	834
64		97	835
65	30 or more	100	836

(b) For a member eligible to retire under division (B) or (C)	837
of section 145.32 of the Revised Code, the member's allowance	838
under division (A)(1) of this section shall be reduced by a	839
percentage determined by the board's actuary ~~for each year the~~	840
~~member retires before whichever of the following occurs first:~~	841
~~attaining age sixty-six, attaining age fifty-two with thirty-one~~	842
~~years of total service credit, or earning thirty-two years of~~	843
~~total service credit.~~	844

~~(c) For a member eligible to retire under division (C) of~~	845
~~section 145.32 of the Revised Code, the member's allowance under~~	846
~~division (A)(1) of this section shall be reduced by a percentage~~	847
~~determined by the board's actuary for each year the member retires~~	848
~~before whichever of the following occurs first: attaining age~~	849
~~sixty-seven, or attaining age fifty-five with thirty-two years of~~	850
~~total service credit~~based on the number of years the commencement	851
of the allowance precedes the member's eligibility for an	852
unreduced allowance.	853

~~(d)~~(c) The actuary may use an actuarially based average	854
percentage reduction for purposes of division (A)(2)(b) ~~or (c)~~ of	855
this section.	856

(3) For a member eligible to retire under division (A) or (B)	857
of section 145.32 of the Revised Code, the right to a benefit	858
shall vest in accordance with the following schedule, based on the	859
member's attained age by September 1, 1976:	860

	Percentage	861
Attained	of	862
Birthday	Base Amount	863
66	102	864
67	104	865
68	106	866
69	108	867
70 or more	110	868

(B) The total annual single lifetime allowance that a member	869
shall receive under this section shall not exceed the lesser of	870
the following:	871

(1) Any limit established under section 145.333 of the	872
Revised Code;	873

(2) One hundred per cent of the member's final average	874
salary;	875

(3) The limit established by section 415 of the "Internal	876
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	877
amended.	878

(C) Retirement allowances determined under this section shall	879
be paid as provided in section 145.46 of the Revised Code.	880

Sec. 145.35. (A) As used in this section~~, "on-duty~~and	881
sections 145.362 and 145.363 of the Revised Code:	882

(1) "Examining physician" means a physician appointed by the	883
public employees retirement board to conduct a medical examination	884
of a disability benefit applicant or recipient.	885

(2) "Medical consultant" means a physician appointed by the	886
board to review a member's application for a disability benefit or	887
an appeal of a denial or termination of a benefit.	888

(3) "On-duty" illness or injury" means an illness or injury	889
that occurred during or resulted from performance of duties under	890
the direct supervision of a public employer.	891

(B) The public employees retirement system shall provide	892
disability coverage to each member who has at least five years of	893
total service credit and disability coverage for on-duty illness	894
or injury to each member who is a PERS law enforcement officer or	895
PERS public safety officer, regardless of length of service.	896

The coverage shall extend only to illness or injury that	897
occurs before the member's contributing service terminates or, in	898
the case of illness or injury that results from contributing	899
service, becomes evident not later than two years after the date	900
the contributing service ends. The coverage shall not extend to	901
disability resulting from elective cosmetic surgery other than	902
reconstructive surgery.	903

Not later than October 16, 1992, the public employees	904
retirement board shall give each person who is a member on July	905
29, 1992, the opportunity to elect disability coverage either	906
under section 145.36 of the Revised Code or under section 145.361	907
of the Revised Code. The board shall mail notice of the election,	908
accompanied by an explanation of the coverage under each of the	909
Revised Code sections and a form on which the election is to be	910
made, to each member at the member's last known address. The board	911
shall also provide the explanation and form to any member on	912
request.	913

Regardless of whether the member actually receives notice of	914
the right to make an election, a member who fails to file a valid	915
election under this section shall be considered to have elected	916
disability coverage under section 145.36 of the Revised Code. To	917
be valid, an election must be made on the form provided by the	918
retirement board, signed by the member, and filed with the board	919
not later than one hundred eighty days after the date the notice	920
was mailed, or, in the case of a form provided at the request of a	921
member, a date specified by rule of the retirement board. Once	922
made, an election is irrevocable, but if the member ceases to be a	923
member of the retirement system, the election is void. If a person	924
who makes an election under this section also makes an election	925
under section 3307.62 or 3309.39 of the Revised Code, the election	926
made for the system that pays a disability benefit to that person	927
shall govern the benefit.	928

Disability coverage shall be provided under section 145.361	929
of the Revised Code for persons who become members after July 29,	930
1992, and for members who elect under this division to be covered	931
under section 145.361 of the Revised Code.	932

The retirement board may adopt rules governing elections made	933
under this division.	934

(C) Application for a disability benefit may be made by a	935
member, by a person acting in the member's behalf, or by the	936
member's employer, provided the member has disability coverage	937
under section 145.36 or 145.361 of the Revised Code and is not	938
receiving a disability benefit under any other Ohio state or	939
municipal retirement program. Application must be made within two	940
years from the date the member's contributing service under the	941
PERS defined benefit plan terminated or the date the member ceased	942
to make contributions to the PERS defined benefit plan under	943
section 145.814 of the Revised Code, unless the ~~retirement board~~	944
board's medical consultant determines that the member's medical	945
records demonstrate conclusively that at the time the two-year	946
period expired, the member was physically or mentally	947
incapacitated for duty and unable to make an application.	948
Application may not be made by or for any person receiving age and	949
service retirement benefits under section 145.33, 145.331,	950
145.332, or 145.37 or former section 145.34 of the Revised Code or	951
any person who, pursuant to section 145.40 of the Revised Code,	952
has been paid the accumulated contributions standing to the credit	953
of the person's individual account in the employees' savings fund.	954
The application shall be made on a form provided by the retirement	955
board.	956

(D) The benefit payable to any member who is approved for a	957
disability benefit shall become effective on the first day of the	958
month immediately following the later of the following:	959

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

960

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

961

(E) Medical examination of a member who has applied for a	962
disability benefit shall be conducted by a competent disinterested	963
examining physician ~~or physicians selected by the board~~ to	964
determine whether the member is mentally or physically	965
incapacitated for the performance of duty by a disabling condition	966
either permanent or presumed to be permanent. The disability must	967
have occurred since last becoming a member or have increased since	968
last becoming a member to such extent as to make the disability	969
permanent or presumed to be permanent. A disability is presumed to	970
be permanent if it is expected to last for a continuous period of	971
not less than twelve months following the filing of the	972
application.	973

The standard used to determine whether a member is	974
incapacitated for duty is that the member is mentally or	975
physically incapable of performing the duties of the most recent	976
public position held by the member ~~held at the time the disabling~~	977
~~condition began or of a position with similar duties~~.	978

~~If the~~A member shall receive a disability benefit under	979
section 145.36 or 145.361 of the Revised Code if all of the	980
following apply:	981

(1) The board's examining physician ~~or physicians determine~~	982
determines that the member qualifies for a disability benefit~~, the~~	983
and the board's medical consultant concurs with the determination;	984

(2) The board concurs with the medical consultant's	985
determination~~, and the~~;	986

(3) The member agrees to medical treatment as specified in	987
division (F) of this section~~, the member shall receive a~~	988
~~disability benefit under section 145.36 or 145.361 of the Revised~~	989
~~Code. The~~.	990

A disability benefit described in this division may be	991
commenced prior to the board's concurrence with the determination	992
if the conditions specified in divisions (E)(1) and (3) of this	993
section are met.	994

The action of the board shall be final.

995

(F) The public employees retirement board shall adopt rules	996
requiring a disability benefit recipient, as a condition of	997
continuing to receive a disability benefit, to agree in writing to	998
obtain any medical treatment recommended by the board's ~~physician~~	999
medical consultant and submit medical reports regarding the	1000
treatment. If the board determines that a disability benefit	1001
recipient is not obtaining the medical treatment or the board does	1002
not receive a required medical report, the disability benefit	1003
shall be suspended until the treatment is obtained, the report is	1004
received by the board, or the board's ~~physician~~medical consultant	1005
certifies that the treatment is no longer helpful or advisable.	1006
Should the recipient's failure to obtain treatment or submit a	1007
medical report continue for one year, the recipient's right to the	1008
disability benefit shall be terminated as of the effective date of	1009
the original suspension.	1010

The board shall require the recipient of a disability benefit	1011
who is described in section 145.363 of the Revised Code to comply	1012
with that section.	1013

(G) A disability benefit that has been granted a member but	1014
has not commenced shall not be paid if the member continues in or	1015
returns to employment with the same employer in the same position	1016
or in a position with duties similar to those of the position the	1017
member held at the time the benefit was granted.	1018

(H) In the event an employer files an application for a	1019
disability benefit as a result of a member having been separated	1020
from service because the member is considered to be mentally or	1021
physically incapacitated for the performance of the member's	1022
present duty, and the ~~physician or physicians selected by the~~	1023
~~board~~board's medical consultant reports to the board that the	1024
member is physically and mentally capable of performing service	1025
similar to that from which the member was separated and the board	1026
concurs in the report, the board shall so certify to the employer	1027
and the employer shall restore the member to the member's previous	1028
position and salary or to a similar position and salary.	1029

Sec. 145.362. A disability benefit recipient whose	1030
application for a disability benefit was received by the public	1031
employees retirement system before ~~the effective date of this~~	1032
~~amendment~~January 7, 2013, shall, regardless of when the	1033
disability occurred, retain membership status and shall be	1034
considered on leave of absence from employment during the first	1035
five years following the effective date of a disability benefit,	1036
notwithstanding any contrary provisions in this chapter.	1037

A disability benefit recipient whose application for a	1038
disability benefit is received by the system on or after ~~the~~	1039
~~effective date of this amendment~~January 7, 2013, shall,	1040
regardless of when the disability occurred, retain membership	1041
status and shall be considered on leave of absence from employment	1042
during the first three years following the effective date of a	1043
disability benefit, except that, if the member is receiving	1044
rehabilitative services acceptable to athe board's examining	1045
physician ~~or physicians selected by the board~~, the board may	1046
permit the recipient to retain membership status and be considered	1047
on leave of absence from employment for up to five years following	1048
the effective date of a disability benefit.	1049

The public employees retirement board shall require any	1050
disability benefit recipient to undergo an annual medical	1051
examination, except that the board may waive the medical	1052
examination if the board's ~~physician or physicians certify~~medical	1053
consultant certifies that the recipient's disability is ongoing or	1054
for any other reason specified in rules adopted by the board. If	1055
any disability benefit recipient refuses to submit to a medical	1056
examination, the recipient's disability benefit shall be suspended	1057
until withdrawal of the refusal. Should the refusal continue for	1058
one year, all the recipient's rights in and to the disability	1059
benefit shall be terminated as of the effective date of the	1060
original suspension.	1061

On completion of the examination by anthe board's examining	1062
physician ~~or physicians selected by the board~~, the physician or	1063
~~physicians~~ shall report to the board's medical consultant and	1064
certify ~~to the board~~ whether the disability benefit recipient	1065
meets the applicable standard for termination of a disability	1066
benefit. If the examining physician certifies that the recipient	1067
meets the applicable standard for termination of a disability	1068
benefit and the medical consultant concurs, the medical consultant	1069
shall certify to the board that the recipient meets the applicable	1070
standard for termination.	1071

(A) Regardless of when the disability occurred, if the	1072
recipient's application for a disability benefit was received by	1073
the system before ~~the effective date of this amendment~~January 7,	1074
2013, or, if on or after that date, the recipient has been	1075
receiving the benefit for less than three years or is receiving	1076
rehabilitative services acceptable to the board's examining	1077
physician ~~or physicians~~ and considered on leave of absence, or,	1078
if, ~~when~~at the ~~disability occurred~~time contributing service	1079
terminated, the recipient was a PERS law enforcement officer, the	1080
standard for termination is that the recipient is no longer	1081
physically and mentally incapable of resuming the service from	1082
which the recipient was found disabled.	1083

(B) Regardless of when the disability occurred, if the	1084
recipient's application for a disability benefit is received by	1085
the system on or after ~~the effective date of this amendment~~	1086
January 7, 2013, the recipient has been receiving the benefit for	1087
three years or longer, the recipient was not a PERS law	1088
enforcement officer ~~when~~at the ~~disability occurred~~time	1089
contributing service terminated, and the recipient is not	1090
receiving rehabilitative services acceptable to the board's	1091
examining physician ~~or physicians~~, the standard for termination is	1092
that the recipient is not physically or mentally incapable of	1093
performing the duties of any position that meets all of the	1094
following criteria:	1095

(1) Replaces not less than seventy-five per cent of the	1096
member's final average salary, adjusted each year by the actual	1097
average increase in the consumer price index prepared by the	1098
United States bureau of labor statistics (U.S. city average for	1099
urban wage earners and clerical workers: "all items	1100
1982-1984=100");	1101

(2) Is reasonably to be found in the member's regional job	1102
market;	1103

(3) Is one that the member is qualified for by experience or	1104
education.	1105

If the board concurs in the report that the disability	1106
benefit recipient meets the applicable standard for termination of	1107
a disability benefit, the payment of the disability benefit shall	1108
be terminated not later than three months after the date of the	1109
board's concurrence or upon employment as a public employee. If	1110
the leave of absence has not expired, the retirement board shall	1111
certify to the disability benefit recipient's last employer before	1112
being found disabled that the recipient is no longer physically	1113
and mentally incapable of resuming service that is the same or	1114
similar to that from which the recipient was found disabled. The	1115
employer shall restore the recipient to the recipient's previous	1116
position and salary or to a position and salary similar thereto,	1117
unless the recipient was dismissed or resigned in lieu of	1118
dismissal for dishonesty, misfeasance, malfeasance, or conviction	1119
of a felony.	1120

Each disability benefit recipient shall file with the board	1121
an annual statement of earnings, current medical information on	1122
the recipient's condition, and any other information required in	1123
rules adopted by the board. The board may waive the requirement	1124
that a disability benefit recipient file an annual statement of	1125
earnings or current medical information if the board's ~~physician~~	1126
medical consultant certifies that the recipient's disability is	1127
ongoing.	1128

The board shall annually examine the information submitted by	1129
the recipient. If a disability benefit recipient refuses to file	1130
the statement or information, the disability benefit shall be	1131
suspended until the statement and information are filed. If the	1132
refusal continues for one year, the recipient's right to the	1133
disability benefit shall be terminated as of the effective date of	1134
the original suspension.	1135

If a disability benefit recipient is restored to service by,	1136
or elected to an elective office with, an employer covered by this	1137
chapter, the recipient's disability benefit shall cease.	1138

The board may terminate a disability benefit at the request	1139
of the recipient if the board's medical consultant determines that	1140
the recipient is no longer disabled.	1141

If disability retirement under section 145.36 of the Revised	1142
Code is terminated for any reason, the annuity and pension	1143
reserves at that time in the annuity and pension reserve fund	1144
shall be transferred to the employees' savings fund and the	1145
employers' accumulation fund, respectively. If the total	1146
disability benefit paid is less than the amount of the accumulated	1147
contributions of the member transferred to the annuity and pension	1148
reserve fund at the time of the member's disability retirement,	1149
the difference shall be transferred from the annuity and pension	1150
reserve fund to another fund as may be required. In determining	1151
the amount of a member's account following the termination of	1152
disability retirement for any reason, the total amount paid shall	1153
be charged against the member's refundable account.	1154

If a disability allowance paid under section 145.361 of the	1155
Revised Code is terminated for any reason, the reserve on the	1156
allowance at that time in the annuity and pension reserve fund	1157
shall be transferred from that fund to the employers' accumulation	1158
fund.	1159

If a former disability benefit recipient again becomes a	1160
contributor, other than as an other system retirant under section	1161
145.38 of the Revised Code, to this system, the state teachers	1162
retirement system, or the school employees retirement system, and	1163
completes an additional two years of service credit, the former	1164
disability benefit recipient shall be entitled to full service	1165
credit, not exceeding five years' service credit, for the period	1166
as a disability benefit recipient, except that if the board adopts	1167
a rule requiring payment for the service credit it shall be	1168
granted only if the former disability benefit recipient pays an	1169
amount determined under the rule. The rule shall not require	1170
payment of more than the additional liability to the retirement	1171
system resulting from granting the credit. The former recipient	1172
may choose to purchase only part of the credit in any one payment.	1173

If any employer employs any member who is receiving a	1174
disability benefit, the employer shall file notice of employment	1175
with the retirement board, designating the date of employment. In	1176
case the notice is not filed, the total amount of the benefit paid	1177
during the period of employment prior to notice shall be charged	1178
to and paid by the employer.	1179

Sec. 145.363. This section does not apply to a disability	1180
recipient who, ~~when~~at the ~~disability occurred~~time contributing	1181
service terminated, was a PERS law enforcement officer.	1182

(A) A recipient of a disability benefit granted under this	1183
chapter whose application for such benefit is received by the	1184
public employees retirement system on or after ~~the effective date~~	1185
~~of this section~~January 7, 2013, shall, regardless of when the	1186
disability occurred, apply for social security disability	1187
insurance benefit payments under 42 U.S.C. 423 if the recipient	1188
meets the requirements of divisions (a)(1)(A),(B), and (C) of that	1189
section. The application for a social security disability	1190
insurance benefit shall be made ~~not~~before the later ~~than~~of the	1191
ninety-first~~days~~day after the recipient is granted a disability	1192
benefit under this chapter or the ninety-first day after the	1193
recipient attains eligibility to apply for a social security	1194
disability insurance benefit, unless the public employees	1195
retirement ~~board~~board's medical consultant determines from the	1196
member's medical records that the member is physically or mentally	1197
unable to make the application. The recipient shall file with the	1198
system a copy of the completed application ~~with the public~~	1199
~~employees retirement system~~or other evidence of application	1200
satisfactory to the board and the system shall accept the copy or	1201
other evidence as evidence of the member's application. If a	1202
recipient fails without just cause to apply for social security	1203
disability insurance benefit payments or to file a copy or other	1204
evidence of the application with the system, the disability	1205
benefit under this chapter shall be suspended until application is	1206
made and a copy or other evidence of the application filed with	1207
the system. If the recipient's failure to file a copy or other	1208
evidence of the application continues for one year, the disability	1209
benefit shall be terminated as of the effective date of the	1210
original suspension.	1211

(B) Regardless of whether the recipient's disability is	1212
ongoing, a recipient of a disability benefit under this chapter	1213
who also receives social security disability insurance benefit	1214
payments shall file an annual statement of earnings under section	1215
145.362 of the Revised Code and include a copy of the social	1216
security disability insurance benefit annual reward letter that	1217
specifies the amount of the social security disability insurance	1218
program benefit.	1219

(C) Except as provided in division (D) of this section, if	1220
any year the total of a disability benefit recipient's benefit	1221
under this chapter and social security disability insurance	1222
benefit payments exceeds the recipient's adjusted final average	1223
salary, the annual benefit under this chapter shall be reduced so	1224
that the annual total equals the recipient's adjusted final	1225
average salary.	1226

The recipient's adjusted final average salary shall be	1227
determined by annually increasing the recipient's final average	1228
salary by the percentage increase in the consumer price index, not	1229
exceeding three per cent, as determined by the United States	1230
bureau of labor statistics (U.S. city average for urban wage	1231
earners and clerical workers: "all items 1982-84=100") for the	1232
twelve-month period ending on the thirtieth day of June of the	1233
immediately preceding calendar year. If the consumer price index	1234
for that period did not increase, no increase shall be made to the	1235
recipient's adjusted final average salary for that period. No	1236
adjustment to a benefit shall exceed the limit established by	1237
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	1238
2085, 26 U.S.C. 415, as amended.	1239

If a disability benefit recipient receives retroactive	1240
payments of social security disability insurance benefits, the	1241
system may reduce future disability benefit payments under this	1242
chapter to recoup any overpayments.	1243

(D) The reductions required by division (C) of this section	1244
do not apply to a recipient of a disability benefit under this	1245
chapter who has not less than five years of service credit for	1246
periods during which the recipient had earnings from other	1247
employment that was subject to the tax imposed by the "Federal	1248
Insurance Contributions Act," 26 U.S.C. 3101.	1249

Sec. 145.37. (A) As used in this section:

1250

(1) "State retirement system" means the public employees	1251
retirement system, school employees retirement system, or state	1252
teachers retirement system.	1253

(2) "Total service credit" means all service credit earned in	1254
the state retirement systems, except credit for service subject to	1255
section 145.38 of the Revised Code. Total service credit shall not	1256
exceed one year of credit for any twelve-month period.	1257

(3) In addition to the meaning given in division (N) of	1258
section 145.01 of the Revised Code, "disability benefit" means	1259
"disability benefit" as defined in sections 3307.01 and 3309.01 of	1260
the Revised Code.	1261

(4) "Paying system" means the state retirement system in	1262
which the member has the greatest service credit, without	1263
adjustment or, if a member who has equal service credit in two or	1264
more retirement systems, the retirement system in which the member	1265
has the greatest total contributions.	1266

(5) "Transferring system" means the state retirement system	1267
transferring a member's contributions and service credit in that	1268
system to the paying system.	1269

(6) "Retention percentage" means five per cent, or a	1270
percentage determined under division (D) of this section, of a	1271
member's earnable salary in the case of a member of the public	1272
employees retirement system or five per cent, or a percentage	1273
determined under division (D) of this section, of a member's	1274
compensation in the case of a member of the state teachers	1275
retirement system or school employees retirement system.	1276

(B) To coordinate and integrate membership in the state	1277
retirement systems~~, the following provisions apply:~~	1278

~~(1) Subject to division (B)(2) of this section~~, at the	1279
election of a member, total contributions and service credit in	1280
all state retirement systems, including amounts paid to restore	1281
service credit under sections 145.311, 3307.711, and 3309.261 of	1282
the Revised Code, shall be used in determining the eligibility and	1283
total retirement or disability benefit payable. When total	1284
contributions and service credit are so combined, the following	1285
provisions apply:	1286

~~(a)~~(1) Age and service retirement shall be effective on the	1287
first day of the month immediately following the later of:	1288

~~(i)~~(a) The last day for which compensation was paid;

1289

~~(ii)~~(b) The attainment of minimum age or service credit	1290
eligibility for benefits provided under this section;	1291

~~(iii)~~(c) Ninety days prior to receipt by the board of the	1292
member's completed application for retirement.	1293

~~(b)~~(2) Disability benefits shall be effective on the first	1294
day of the month immediately following the later of the following:	1295

~~(i)~~(a) The last day for which compensation was paid;

1296

~~(ii)~~(b) The attainment of eligibility for a disability	1297
benefit.	1298

~~(c) Eligibility for a disability benefit shall be determined~~	1299
~~by the~~(3) The board of the ~~state retirement~~paying system ~~that~~	1300
~~will calculate~~shall do both of the following:	1301

(a) Determine a member's eligibility for a retirement or	1302
disability benefit;	1303

(b) Calculate and pay the member's retirement or disability	1304
benefit~~, as provided in division (B)(1)(d) of this section~~. ~~The~~	1305
~~state retirement~~	1306

(4)(a) Each transferring system ~~calculating and paying the~~	1307
~~disability benefit~~in which the member has service credit shall	1308
certify ~~the determination~~ to the ~~board of each other state~~	1309
~~retirement~~paying system ~~in which the member has service credit~~	1310
~~and shall be accepted by that board as sufficient for granting a~~	1311
~~disability benefit.~~	1312

~~(d) The board of the state retirement system in which the~~	1313
~~member had the greatest service credit, without adjustment, shall~~	1314
~~calculate and pay the total retirement or disability benefit.~~	1315
~~Where the member's credit is equal in two or more state retirement~~	1316
~~systems, the system having the largest total contributions of the~~	1317
~~member shall calculate and pay the total benefit.~~	1318

~~(e)~~all of the following:

1319

(i) The service credit earned by the member in the	1320
transferring system;	1321

(ii) The beginning and ending dates of the service credit	1322
period covered by the transferring system;	1323

(iii) Any breaks in service by the member, excluding school	1324
breaks;	1325

(iv) If available, a statement listing the member's monthly	1326
contributions and service credit earned, obtained, or purchased in	1327
the transferring system.	1328

(b) The certification under division (B)(4)(a) of this	1329
section may be reviewed by both the transferring system and the	1330
paying system.	1331

(5) In determining the total credit to be used in calculating	1332
a retirement or disability benefit, ~~total combined service credit~~	1333
~~shall not exceed~~credit shall not be reduced below that certified	1334
by the transferring system, except as follows:	1335

(a) Not more than one year of credit may be certified by the	1336
transferring system for any one "year" as defined in the law of	1337
the transferring system ~~making the calculation~~.	1338

~~(f)~~(b) The paying system may reduce any credit certified by	1339
the transferring system that is concurrent with any period of	1340
service credit the member earned from the paying system.	1341

(c) The paying system may reduce any credit certified by the	1342
transferring system if the amount certified, when added to the	1343
paying system's service credit for any one "year" as defined in	1344
the law of the paying system, exceeds one year.	1345

(6)(a) The ~~state retirement~~paying system ~~calculating and~~	1346
~~paying a retirement or disability benefit~~ shall receive from the	1347
~~other~~transferring system or systems all of the following for each	1348
year of service:	1349

(i) The amount contributed by the member, or, in the case of	1350
service credit purchased by the member, paid by the member, that	1351
is attributable to the year of service;	1352

(ii) An amount equal to the lesser of the employer's	1353
contributions made on behalf of the member to the ~~retirement~~	1354
transferring system for that year of service less the retention	1355
percentage or the amount that would have been contributed by the	1356
employer for the service had the member been a member of the	1357
public employees retirement system at the time the credit was	1358
earned less the retention percentage;	1359

(iii) Interest compounded annually on the amounts specified	1360
in divisions (B)~~(1)(f)~~(6)(a)(i) and (ii) of this section at the	1361
lesser of the actuarial assumption rate for that year of the	1362
~~retirement~~paying system ~~determining and paying the benefit~~ or the	1363
~~other retirement~~transferring system or systems ~~transferring~~	1364
~~amounts under this section~~.	1365

(b) If applicable, the public employees retirement system	1366
shall pay to the ~~retirement~~paying system ~~calculating and paying~~	1367
~~the benefit~~ a portion of the amount paid on behalf of the member	1368
by an employer under section 145.483 of the Revised Code. The	1369
portion shall be paid from the employers' accumulation fund and	1370
shall equal the product obtained by multiplying by two the amount	1371
the member would have contributed during the period the employer	1372
failed to deduct contributions, as described in section 145.483 of	1373
the Revised Code.	1374

~~(g)~~(7) The annuity rates and mortality tables of the ~~state~~	1375
~~retirement~~paying system ~~making the calculation and paying the~~	1376
~~benefit~~ shall be exclusively applicable.	1377

~~(h)~~(8) Deposits made for the purpose of an additional	1378
annuity, together with earnings as provided in section 145.62 of	1379
the Revised Code, upon the request of the member, shall be	1380
transferred to the ~~state retirement~~paying system ~~paying the~~	1381
~~benefit~~. The return upon such deposits shall be that offered by	1382
the ~~state retirement~~paying system ~~making the calculation and~~	1383
~~paying the benefit~~.	1384

~~(2)~~(9) A former member receiving a retirement or disability	1385
benefit under this section, who accepts employment amenable to	1386
coverage in any state retirement system that participated in the	1387
former member's combined benefit, shall be subject to the	1388
applicable provisions of law governing such re-employment. If a	1389
former member should be paid any amount in a retirement benefit,	1390
to which the former member is not entitled under the applicable	1391
provisions of law governing such re-employment, such amount shall	1392
be recovered by the ~~state retirement~~paying system ~~paying such~~	1393
~~benefit~~ by utilizing any recovery procedure available under the	1394
~~code provisions of the state retirement system covering such~~	1395
paying system's re-employment provisions.	1396

(C) A PERS retirant or other system retirant, as defined in	1397
section 145.38 of the Revised Code, is not eligible to receive any	1398
benefit under this section for service subject to section 145.38	1399
of the Revised Code.	1400

(D) The retention percentage used in the calculation under	1401
division (B)(6)(a)(ii) of this section shall be reviewed by the	1402
state retirement systems not less than once every five years after	1403
the effective date of this amendment or on request of any of the	1404
systems. If the retirement systems agree, the retention percentage	1405
may be changed if any system's employer contribution rate	1406
increases or decreases or the systems agree that a change is in	1407
the interest of one or more of the systems.	1408

Sec. 145.384. (A) As used in this section, "PERS retirant"	1409
means a PERS retirant who is not subject to division (C) of	1410
section 145.38 of the Revised Code. For purposes of this section,	1411
"PERS retirant" also includes both of the following:	1412

(1) A member who retired under section 145.383 of the Revised	1413
Code;	1414

(2) A retirant whose retirement allowance resumed under	1415
section 145.385 of the Revised Code.	1416

(B)(1) An other system retirant or PERS retirant who has made	1417
contributions under section 145.38 or 145.383 of the Revised Code	1418
or, in the case of a retirant described in division (A)(2) of this	1419
section, section 145.47 of the Revised Code may file an	1420
application with the public employees retirement system to receive	1421
either a benefit, as provided in division (B)(2) of this section,	1422
or payment of the retirant's contributions made under those	1423
sections, as provided in division (H) of this section.	1424

(2) A benefit under this section shall consist of an annuity	1425
having a reserve equal to the amount of the retirant's accumulated	1426
contributions for the period of employment, other than the	1427
contributions excluded pursuant to division (B)(4)(a) or (b) of	1428
section 145.38 of the Revised Code, and an amount of the	1429
employer's contributions determined by the board.	1430

(a) Unless, as described in division (I) of this section, the	1431
application is accompanied by a statement of the spouse's consent	1432
to another form of payment or the board waives the requirement of	1433
spousal consent, a PERS retirant or other system retirant who is	1434
married at the time of application for a benefit under this	1435
section shall receive a monthly annuity under which the actuarial	1436
equivalent of the retirant's single life annuity is paid in a	1437
lesser amount for life and one-half of the lesser amount continues	1438
after the retirant's death to the surviving spouse.	1439

(b) A PERS retirant or other system retirant who is not	1440
subject to division (B)(2)(a) of this section shall elect either	1441
to receive the benefit as a monthly annuity or a lump sum payment	1442
discounted to the present value using a rate of interest	1443
determined by the board. A retirant who elects to receive a	1444
monthly annuity shall select one of the following as the plan of	1445
payment:	1446

(i) The retirant's single life annuity;

1447

(ii) The actuarial equivalent of the retirant's single life	1448
annuity in an equal or lesser amount for life and continuing after	1449
death to a surviving beneficiary designated at the time the plan	1450
of payment is selected.	1451

If a retirant who is eligible to select a plan of payment	1452
under division (B)(2)(b) of this section fails to do so, the	1453
benefit shall be paid as a monthly annuity under the plan of	1454
payment specified in rules adopted by the public employees	1455
retirement board.	1456

(c) Notwithstanding divisions (B)(2)(a) and (b) of this	1457
section, if a monthly annuity would be less than twenty-five	1458
dollars per month, the retirant shall receive a lump sum payment.	1459

(C)(1) The death of a spouse or other designated beneficiary	1460
under a plan of payment described in division (B)(2) of this	1461
section cancels that plan of payment. The PERS retirant or other	1462
system retirant shall receive the equivalent of the retirant's	1463
single life annuity, as determined by the board, effective the	1464
first day of the month following the date of death.	1465

(2) On divorce, annulment, or marriage dissolution, a PERS	1466
retirant or other system retirant receiving a benefit described in	1467
division (B)(2) of this section under which the beneficiary is the	1468
spouse may, with the written consent of the spouse or pursuant to	1469
an order of the court with jurisdiction over the termination of	1470
the marriage, elect to cancel the plan and receive the equivalent	1471
of the retirant's single life annuity as determined by the board.	1472
The election shall be made on a form provided by the board and	1473
shall be effective the month following its receipt by the board.	1474

(D) Following a marriage or remarriage, a PERS retirant or	1475
other system retirant who is receiving a benefit described in	1476
division (B)(2)(b)(i) of this section may elect a new plan of	1477
payment under division (B)(2)(b) of this section based on the	1478
actuarial equivalent of the retirant's single life annuity as	1479
determined by the board.	1480

If the marriage or remarriage occurs on or after June 6,	1481
2005, the election must be made not later than one year after the	1482
date of the marriage or remarriage.	1483

The plan elected under this division shall be effective on	1484
the date of receipt by the board of an application on a form	1485
approved by the board, but any change in the amount of the benefit	1486
shall commence on the first day of the month following the	1487
effective date of the plan.	1488

(E) A benefit payable under division (B)(2) of this section	1489
shall commence on the latest of the following:	1490

(1) The last day for which compensation for all employment	1491
subject to section 145.38, 145.383, or 145.385 of the Revised Code	1492
was paid;	1493

(2) Attainment by the PERS retirant or other system retirant	1494
of age sixty-five;	1495

(3) If the PERS retirant or other system retirant was	1496
previously employed under section 145.38, 145.383, or 145.385 of	1497
the Revised Code and is receiving or previously received a benefit	1498
under this section, completion of a period of twelve months since	1499
the effective date of the last benefit under this section;	1500

(4) Ninety days prior to receipt by the board of the member's	1501
completed application for retirement;	1502

(5) A date specified by the retirant.

1503

(F)(1) If a PERS retirant or other system retirant dies while	1504
employed in employment subject to section 145.38, 145.383, or	1505
145.385 of the Revised Code, a lump sum payment shall be paid to	1506
the retirant's beneficiary under division (G) of this section. The	1507
lump sum shall be calculated in accordance with division (H) of	1508
this section if the retirant was under age sixty-five at the time	1509
of death. It shall be calculated in accordance with division	1510
(B)(2) of this section if the retirant was age sixty-five or older	1511
at the time of death.	1512

(2) If at the time of death a PERS retirant or other system	1513
retirant receiving a monthly annuity under division (B)(2)(b)(i)	1514
of this section has received less than the retirant would have	1515
received as a lump sum payment, the difference between the amount	1516
received and the amount that would have been received as a lump	1517
sum payment shall be paid to the retirant's beneficiary under	1518
division (G) of this section.	1519

(3) If a beneficiary receiving a monthly annuity under	1520
division (B)(2) of this section dies and, at the time of the	1521
beneficiary's death, the total of the amounts paid to the retirant	1522
and beneficiary are less than the amount the retirant would have	1523
received as a lump sum payment, the difference between the total	1524
of the amounts received by the retirant and beneficiary and the	1525
amount that the retirant would have received as a lump sum payment	1526
shall be paid to the beneficiary's estate.	1527

(G) A PERS retirant or other system retirant employed under	1528
section 145.38, 145.383, or 145.385 of the Revised Code may	1529
designate one or more persons as beneficiary to receive any	1530
benefits payable under division (B)(2)(b) of this section due to	1531
death. The designation shall be in writing duly executed on a form	1532
provided by the public employees retirement board, signed by the	1533
PERS retirant or other system retirant, and filed with the board	1534
prior to death. The last designation of a beneficiary revokes all	1535
previous designations. The PERS retirant's or other system	1536
retirant's marriage, divorce, marriage dissolution, legal	1537
separation, withdrawal of account, birth of a child, or adoption	1538
of a child revokes all previous designations. If there is no	1539
designated beneficiary or the beneficiary is not located within	1540
ninety days, the beneficiary ~~is the beneficiary determined under~~	1541
~~division (D) of section 145.43 of the Revised Code. If~~shall be	1542
determined in the following order of precedence:	1543

(1) Surviving spouse;

1544

(2) Children, share and share alike;

1545

(3) Parents, share and share alike;

1546

(4) Estate.

1547

If any benefit payable under this section due to the death of	1548
a PERS retirant or other system retirant is not claimed by a	1549
beneficiary within five years after the death, the amount payable	1550
shall be transferred to the income fund and thereafter paid to the	1551
beneficiary or the estate of the PERS retirant or other system	1552
retirant on application to the board.	1553

(H)(1) A PERS retirant or other system retirant who applies	1554
under division (B)(1) of this section for payment of the	1555
retirant's contributions and is unmarried or is married and,	1556
unless the board has waived the requirement of spousal consent,	1557
includes with the application a statement of the spouse's consent	1558
to the payment, shall be paid the contributions made under section	1559
145.38 or 145.383 of the Revised Code or, in the case of a	1560
retirant described in division (A)(2) of this section, section	1561
145.47 of the Revised Code, plus interest as provided in section	1562
145.471 of the Revised Code, if the following conditions are met:	1563

(a) The retirant has not attained sixty-five years of age and	1564
has terminated employment subject to section 145.38, 145.383, or	1565
145.385 of the Revised Code for any cause other than death or the	1566
receipt of a benefit under this section.	1567

(b) Three months have elapsed since the termination of the	1568
retirant's employment subject to section 145.38, 145.383, or	1569
145.385 of the Revised Code, other than employment exempted from	1570
contribution pursuant to section 145.03 of the Revised Code.	1571

(c) The retirant has not returned to public service, other	1572
than service exempted from contribution pursuant to section 145.03	1573
of the Revised Code, during the three-month period.	1574

(2) Payment of a retirant's contributions cancels the	1575
retirant's right to a benefit under division (B)(2) of this	1576
section.	1577

(I) A statement of a spouse's consent under division (B)(2)	1578
of this section to the form of a benefit or under division (H) of	1579
this section to a payment of contributions is valid only if signed	1580
by the spouse and witnessed by a notary public. The board may	1581
waive the requirement of spousal consent if the spouse is	1582
incapacitated or cannot be located, or for any other reason	1583
specified by the board. Consent or waiver is effective only with	1584
regard to the spouse who is the subject of the consent or waiver.	1585

(J) No amount received under this section shall be included	1586
in determining an additional benefit under section 145.323 of the	1587
Revised Code or any other post-retirement benefit increase.	1588

Sec. 145.391. The public employees retirement board may	1589
establish and maintain a qualified governmental excess benefit	1590
arrangement that meets the requirements of division (m) of section	1591
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1592
U.S.C.A. 415, as amended, and any regulations adopted thereunder.	1593
If established, the arrangement shall be a separate portion of the	1594
public employees retirement system and be maintained solely for	1595
the purpose of providing to retired members that part of a benefit	1596
otherwise payable under this chapter that exceeds the limits	1597
established by section 415 of the "Internal Revenue Code of 1986,"	1598
as amended. If established, the amounts required to fund the	1599
arrangement shall be included in the employer's contribution	1600
required by sections 145.48 and 145.51 of the Revised Code.	1601

Members participating in an arrangement established under	1602
this section shall not be permitted to elect to defer compensation	1603
to the arrangement. Contributions to and benefits paid under an	1604
arrangement shall not be payable from a trust that is part of the	1605
system unless the trust is maintained solely for the purpose of	1606
providing such benefits.	1607

The board shall adopt rules to administer an arrangement	1608
established under this section.	1609

Sec. 145.40. (A)(1) Subject to the provisions of section	1610
145.57 of the Revised Code and except as provided in ~~section~~	1611
~~145.402 of the Revised Code an~~d division (B) of this section, if a	1612
member elects to become exempt from contribution to the public	1613
employees retirement system pursuant to section 145.03 of the	1614
Revised Code or ceases to be a public employee for any cause other	1615
than death, retirement, receipt of a disability benefit, or	1616
current employment in a position in which the member has elected	1617
to participate in an alternative retirement plan under section	1618
3305.05 or 3305.051 of the Revised Code, upon application the	1619
public employees retirement board shall pay the member the	1620
member's accumulated contributions, plus any applicable amount	1621
calculated under section 145.401 of the Revised Code, provided	1622
that both the following apply:	1623

(a) Three months have elapsed since the member's service	1624
subject to this chapter, other than service exempted from	1625
contribution pursuant to section 145.03 of the Revised Code, was	1626
terminated;	1627

(b) The member has not returned to service subject to this	1628
chapter, other than service exempted from contribution pursuant to	1629
section 145.03 of the Revised Code, during that three-month	1630
period.	1631

The payment of such accumulated contributions shall cancel	1632
the total service credit of such member in the public employees	1633
retirement system.	1634

(2) A member described in division (A)(1) of this section who	1635
is married at the time of application for payment and is eligible	1636
for age and service retirement under section 145.32, 145.33,	1637
145.331, or 145.332 of the Revised Code or would be eligible for	1638
age and service retirement under any of those sections but for a	1639
forfeiture ordered under division (A) or (B) of section 2929.192	1640
of the Revised Code shall submit with the application a written	1641
statement by the member's spouse attesting that the spouse	1642
consents to the payment of the member's accumulated contributions.	1643
Consent shall be valid only if it is signed and witnessed by a	1644
notary public.	1645

The board may waive the requirement of consent if the spouse	1646
is incapacitated or cannot be located, or for any other reason	1647
specified by the board. Consent or waiver is effective only with	1648
regard to the spouse who is the subject of the consent or waiver.	1649

(B) This division applies to any member who is employed in a	1650
position in which the member has made an election under section	1651
3305.05 or 3305.051 of the Revised Code and due to the election	1652
ceases to be a public employee for purposes of that position.	1653

Subject to section 145.57 of the Revised Code, the public	1654
employees retirement system shall do the following:	1655

(1) On receipt of a certified copy of a form evidencing an	1656
election under section 3305.05 or 3305.051 of the Revised Code,	1657
pay to the appropriate provider, in accordance with section	1658
3305.052 of the Revised Code, the amount described in section	1659
3305.052 of the Revised Code;	1660

(2) If a member has accumulated contributions, in addition to	1661
those subject to division (B)(1) of this section, standing to the	1662
credit of the member's individual account and is not otherwise	1663
employed in a position in which the member is considered a public	1664
employee for the purposes of that position, pay, to the provider	1665
the member selected pursuant to section 3305.05 or 3305.051 of the	1666
Revised Code, the member's accumulated contributions. The payment	1667
shall be made on the member's application.	1668

(C) Payment of a member's accumulated contributions under	1669
division (B) of this section cancels the member's total service	1670
credit in the public employees retirement system. A member whose	1671
accumulated contributions are paid to a provider pursuant to	1672
division (B) of this section is forever barred from claiming or	1673
purchasing service credit under the public employees retirement	1674
system for the period of employment attributable to those	1675
contributions.	1676

Sec. 145.402. (A) As used in this section, "other retirement	1677
system" means the state teachers retirement system or the school	1678
employees retirement system.	1679

(B) Except as provided in this section, on application, a	1680
member of the public employees retirement system who is also a	1681
member of one or both of the other retirement systems and has	1682
ceased to be a public employee for the purposes of this chapter	1683
may be paid, in accordance with section 145.40 of the Revised	1684
Code, the member's accumulated contributions to the public	1685
employees retirement system, plus any applicable amount calculated	1686
under section 145.401 of the Revised Code. This payment does not	1687
affect the member's membership in the other retirement systems or	1688
any right the member may have to a benefit or return of	1689
contributions under those systems.	1690

(C) This section does not apply to a member of one of the	1691
other retirement systems whose employment under that system is	1692
with the public employer that was the employer under the public	1693
employees retirement system at the time the member's service	1694
subject to this chapter terminated.	1695

Sec. 145.43. (A) As used in this section and in section	1696
145.45 of the Revised Code:	1697

(1) "Child" means a biological or legally adopted child of a	1698
deceased member. If a court hearing for an interlocutory decree	1699
for adoption was held prior to the member's death, "child"	1700
includes the child who was the subject of the hearing	1701
notwithstanding the fact that the final decree of adoption,	1702
adjudging the surviving spouse as the adoptive parent, is made	1703
subsequent to the member's death.	1704

(2) "Parent" is a parent or legally adoptive parent of a	1705
deceased member.	1706

(3) "Dependent" means a beneficiary who receives one-half of	1707
the beneficiary's support from a member during the twelve months	1708
prior to the member's death.	1709

(4) "Surviving spouse" means an individual who establishes a	1710
valid marriage to a member at the time of the member's death by	1711
marriage certificate or pursuant to division (E) of this section.	1712

(5) "Survivor" means a surviving spouse, child, or parent.

1713

(6) "Accumulated contributions" has the meaning given in	1714
section 145.01 of the Revised Code, except that, notwithstanding	1715
that section, it does not include additional amounts deposited in	1716
the employees' savings fund pursuant to the version of division	1717
(C) of section 145.23 of the Revised Code as it existed	1718
immediately prior to April 6, 2007, or pursuant to section 145.62	1719
of the Revised Code.	1720

(B) Except as provided in division (C)(1) of section 145.45	1721
of the Revised Code, should a member die before age and service	1722
retirement, the member's accumulated contributions and any	1723
applicable amount calculated under section 145.401 of the Revised	1724
Code, shall be paid to the person or persons the member has	1725
designated under section 145.431 of the Revised Code. A member may	1726
designate two or more persons as beneficiaries to be paid the	1727
accumulated account in a lump sum. Subject to rules adopted by the	1728
public employees retirement board, a member who designates two or	1729
more persons as beneficiaries shall specify the percentage of the	1730
lump sum that each beneficiary is to be paid. If the member has	1731
not specified the percentages, the lump sum shall be divided	1732
equally among the beneficiaries.	1733

The last designation of any beneficiary revokes all previous	1734
designations. The member's marriage, divorce, marriage	1735
dissolution, legal separation, or withdrawal of account, or the	1736
birth of the member's child, or adoption of a child, shall	1737
constitute an automatic revocation of the member's previous	1738
designation. If a deceased member was also a member of the school	1739
employees retirement system or the state teachers retirement	1740
system, the beneficiary last established among the systems shall	1741
be the sole beneficiary in all the systems.	1742

If the accumulated contributions of a deceased member are not	1743
claimed by a beneficiary or by the estate of the deceased member	1744
within five years after the death, the contributions shall remain	1745
in the employees' savings fund or may be transferred to the income	1746
fund and thereafter shall be paid to the beneficiary or to the	1747
member's estate upon application to the board. The board shall	1748
formulate and adopt the necessary rules governing all designations	1749
of beneficiaries.	1750

(C) Except as provided in division (C)(1) of section 145.45	1751
of the Revised Code, if a member dies before age and service	1752
retirement and is not survived by a designated beneficiary, the	1753
following shall qualify, with all attendant rights and privileges,	1754
in the following order of precedence, the member's:	1755

(1) Surviving spouse;

1756

(2) Children, share and share alike;

1757

(3) A dependent parent, if that parent takes survivor	1758
benefits under division (B) of section 145.45 of the Revised Code;	1759

(4) Parents, share and share alike;

1760

(5) Estate.

1761

If the beneficiary is deceased or is not located within	1762
ninety days, the beneficiary ceases to qualify for any benefit and	1763
the beneficiary next in order of precedence shall qualify as a	1764
beneficiary.	1765

Any payment made to a beneficiary as determined by the board	1766
shall be a full discharge and release to the board from any future	1767
claims.	1768

(D) Any amount due a retirant or disability benefit recipient	1769
receiving a monthly benefit and unpaid to the retirant or	1770
recipient at death shall be paid to the beneficiary designated	1771
~~under section 145.431 of the Revised Code~~in writing duly executed	1772
on a form provided by the board, signed by the retirant or	1773
recipient, and filed with the board. If no such designation has	1774
been filed, or if the designated beneficiary is not located within	1775
ninety days, any amounts payable under this chapter due to the	1776
death of the retirant or recipient shall be paid in the following	1777
order of precedence to the retirant's or recipient's:	1778

(1) Surviving spouse;

1779

(2) Children, share and share alike;

1780

(3) Parents, share and share alike;

1781

(4) Estate.

1782

The payment shall be a full discharge and release to the	1783
board from any future claim for the payment.	1784

Any amount due a beneficiary receiving a monthly benefit and	1785
unpaid to the beneficiary at the beneficiary's death shall be paid	1786
to the beneficiary's estate.	1787

(E) If the validity of marriage cannot be established to the	1788
satisfaction of the board for the purpose of disbursing any amount	1789
due under this section or section 145.45 of the Revised Code, the	1790
board may accept a decision rendered by a court having	1791
jurisdiction in the state in which the member was domiciled at the	1792
time of death that the relationship constituted a valid marriage	1793
at the time of death, or the "spouse" would have the same status	1794
as a widow or widower for purposes of sharing the distribution of	1795
the member's intestate personal property.	1796

(F) As used in this division, "recipient" means an individual	1797
who is receiving or may be eligible to receive an allowance or	1798
benefit under this chapter based on the individual's service to a	1799
public employer.	1800

If the death of a member, a recipient, or any individual who	1801
would be eligible to receive an allowance or benefit under this	1802
chapter by virtue of the death of a member or recipient is caused	1803
by one of the following beneficiaries, no amount due under this	1804
chapter to the beneficiary shall be paid to the beneficiary in the	1805
absence of a court order to the contrary filed with the board:	1806

(1) A beneficiary who is convicted of, pleads guilty to, or	1807
is found not guilty by reason of insanity of a violation of or	1808
complicity in the violation of either of the following:	1809

(a) Section 2903.01, 2903.02, or 2903.03 of the Revised Code;

1810

(b) An existing or former law of any other state, the United	1811
States, or a foreign nation that is substantially equivalent to	1812
section 2903.01, 2903.02, or 2903.03 of the Revised Code.	1813

(2) A beneficiary who is indicted for a violation of or	1814
complicity in the violation of the sections or laws described in	1815
division (F)(1)(a) or (b) of this section and is adjudicated	1816
incompetent to stand trial;	1817

(3) A beneficiary who is a juvenile found to be a delinquent	1818
child by reason of committing an act that, if committed by an	1819
adult, would be a violation of or complicity in the violation of	1820
the sections or laws described in division (F)(1)(a) or (b) of	1821
this section.	1822

Sec. 145.431. Designation of a beneficiary for the purposes	1823
of section 145.40 of the Revised Code or ~~payment of benefits or~~a	1824
return of contributions to the beneficiary of a member	1825
participating in a PERS defined contribution plan shall be made	1826
under this section. A beneficiary shall be designated in writing	1827
duly executed on a form provided by the public employees	1828
retirement board and signed by the member. A designation under	1829
this section is not valid unless received by the board prior to	1830
the member's death.	1831

A beneficiary designation made under this section applies to	1832
the PERS defined benefit plan or PERS defined contribution plan in	1833
which the member participated or, if the member participated in	1834
both the defined benefit plan and one or more defined contribution	1835
plans, to both the defined benefit plan and the defined	1836
contribution plans.	1837

The last designation of any beneficiary revokes all previous	1838
designations. The member's marriage, divorce, marriage	1839
dissolution, legal separation, or withdrawal of account, or the	1840
birth of the member's child, or adoption of a child, shall	1841
constitute an automatic revocation of the member's previous	1842
designation.	1843

Sec. 145.45. Except as provided in division (C)(1) of this	1844
section, in lieu of accepting the payment of the accumulated	1845
account of a member who dies before service retirement, a	1846
beneficiary, as determined in this section or section 145.43 of	1847
the Revised Code, may elect to forfeit the accumulated	1848
contributions and to substitute certain other benefits under	1849
division (A) or (B) of this section.	1850

(A)(1) If a deceased member was eligible for a service	1851
retirement benefit as provided in section 145.33, 145.331, or	1852
145.332 of the Revised Code, a surviving spouse or other sole	1853
dependent beneficiary may elect to receive a monthly benefit	1854
computed as ~~the joint-survivor benefit designated as "plan A" in~~	1855
~~section 145.46 of the Revised Code~~a joint-life plan under which	1856
the spouse or beneficiary receives one hundred per cent of the	1857
actuarial equivalent of the deceased member's lesser retirement	1858
allowance payable for the member's life, which the member would	1859
have received had the member retired on the last day of the month	1860
of death and had the member at that time selected such	1861
~~joint-survivor~~a plan. Payment shall begin with the month	1862
subsequent to the member's death, except that a surviving spouse	1863
who is less than sixty-five years old may defer receipt of such	1864
benefit. Upon receipt, the benefit shall be calculated based upon	1865
the spouse's age at the time of first payment, and shall accrue	1866
regular interest during the time of deferral.	1867

(2) Beginning on a date selected by the public employees	1868
retirement board, which shall be not later than July 1, 2004, a	1869
surviving spouse or other sole dependent beneficiary may elect, in	1870
lieu of a monthly payment under division (A)(1) of this section, a	1871
plan of payment consisting of both of the following:	1872

(a) A lump sum in an amount the surviving spouse or other	1873
sole dependent beneficiary designates that constitutes a portion	1874
of the allowance that would be payable under division (A)(1) of	1875
this section;	1876

(b) The remainder of that allowance in monthly payments.

1877

The total amount paid as a lump sum and a monthly benefit	1878
shall be the actuarial equivalent of the amount that would have	1879
been paid had the lump sum not been selected.	1880

The lump sum amount designated by the surviving spouse or	1881
other sole dependent beneficiary under division (A)(2)(a) of this	1882
section shall be not less than six times and not more than	1883
thirty-six times the monthly amount that would be payable to the	1884
surviving spouse or other sole dependent beneficiary under	1885
division (A)(1) of this section and shall not result in a monthly	1886
payment that is less than fifty per cent of that monthly amount.	1887

(B) If a deceased member had, except as provided in division	1888
(B)(7) of this section, at least one and one-half years of	1889
contributing service credit, with, except as provided in division	1890
(B)(7) of this section, at least one-quarter year of contributing	1891
service credit within the two and one-half years prior to the date	1892
of death, or was receiving at the time of death a disability	1893
benefit as provided in section 145.36, 145.361, or 145.37 of the	1894
Revised Code, qualified survivors who elect to receive monthly	1895
benefits shall receive the greater of the benefits provided in	1896
division (B)(1)(a) or (b) and (4) of this section as allocated in	1897
accordance with division (B)(5) of this section.	1898

(1)(a) Number		Or	1899
of Qualified		Monthly	1900
survivors	Annual Benefit as a Per	Benefit	1901
affecting	Cent of Decedent's Final	shall not be	1902
the benefit	Average Salary	less than	1903
1	25%	$250	1904
2	40	400	1905
3	50	500	1906
4	55	500	1907
5 or more	60	500	1908

(b) Years of	Annual Benefit as a Per Cent	1909
Service	of Member's Final Average	1910
	Salary	1911
20	29%	1912
21	33	1913
22	37	1914
23	41	1915
24	45	1916
25	48	1917
26	51	1918
27	54	1919
28	57	1920
29 or more	60	1921

(2) Benefits shall begin as qualified survivors meet	1922
eligibility requirements as follows:	1923

(a) A qualified spouse is the surviving spouse of the	1924
deceased member, who is age sixty-two, or regardless of age meets	1925
one of the following qualifications:	1926

(i) Except as provided in division (B)(7) of this section,	1927
the deceased member had ten or more years of Ohio service credit.	1928

(ii) The spouse is caring for a qualified child.

1929

(iii) The spouse is adjudged physically or mentally	1930
incompetent.	1931

A spouse of a member who died prior to August 27, 1970, whose	1932
eligibility was determined at the member's death, and who is	1933
physically or mentally incompetent on or after August 20, 1976,	1934
shall be paid the monthly benefit which that person would	1935
otherwise receive when qualified by age.	1936

(b) A qualified child is any child of the deceased member who	1937
has never been married and to whom one of the following applies:	1938

(i) Is under age eighteen, or under age twenty-two if the	1939
child is attending an institution of learning or training pursuant	1940
to a program designed to complete in each school year the	1941
equivalent of at least two-thirds of the full-time curriculum	1942
requirements of such institution and as further determined by	1943
board policy;	1944

(ii) Regardless of age, is adjudged physically or mentally	1945
incompetent at the time of the member's death.	1946

(c) A qualified parent is a dependent parent aged sixty-five	1947
or older or regardless of age if physically or mentally	1948
incompetent, a dependent parent whose eligibility was determined	1949
by the member's death prior to August 20, 1976, and who is	1950
physically or mentally incompetent on or after August 20, 1976,	1951
shall be paid the monthly benefit for which that person would	1952
otherwise qualify.	1953

(3) "Physically or mentally incompetent" as used in this	1954
section may be determined by a court of jurisdiction, or by a	1955
physician appointed by the retirement board. Incapability of	1956
making a living because of a physically or mentally disabling	1957
condition shall meet the qualifications of this division.	1958

(4) Benefits to a qualified survivor shall terminate upon	1959
ceasing to meet eligibility requirements as provided in this	1960
division, a first marriage, abandonment, adoption, or during	1961
active military service. Benefits to a deceased member's surviving	1962
spouse that were terminated under a former version of this section	1963
that required termination due to remarriage and were not resumed	1964
prior to September 16, 1998, shall resume on the first day of the	1965
month immediately following receipt by the board of an application	1966
on a form provided by the board.	1967

Upon the death of any subsequent spouse who was a member of	1968
the public employees retirement system, state teachers retirement	1969
system, or school employees retirement system, the surviving	1970
spouse of such member may elect to continue receiving benefits	1971
under this division, or to receive survivor's benefits, based upon	1972
the subsequent spouse's membership in one or more of the systems,	1973
for which such surviving spouse is eligible under this section or	1974
section 3307.66 or 3309.45 of the Revised Code. If the surviving	1975
spouse elects to continue receiving benefits under this division,	1976
such election shall not preclude the payment of benefits under	1977
this division to any other qualified survivor.	1978

Benefits shall begin or resume on the first day of the month	1979
following the attainment of eligibility and shall terminate on the	1980
first day of the month following loss of eligibility.	1981

(5)(a) If a benefit is payable under division (B)(1)(a) of	1982
this section, benefits to a qualified spouse shall be paid in the	1983
amount determined for the first qualifying survivor in division	1984
(B)(1)(a) of this section. All other qualifying survivors shall	1985
share equally in the benefit or remaining portion thereof.	1986

(b) All qualifying survivors shall share equally in a benefit	1987
payable under division (B)(1)(b) of this section, except that if	1988
there is a surviving spouse, the surviving spouse shall receive	1989
not less than the amount determined for the first qualifying	1990
survivor in division (B)(1)(a) of this section.	1991

(6) The beneficiary of a member who is also a member of the	1992
state teachers retirement system or of the school employees	1993
retirement system, must forfeit the member's accumulated	1994
contributions in those systems and in the public employees	1995
retirement system, if the beneficiary takes a survivor benefit.	1996
Such benefit shall be exclusively governed by section 145.37 of	1997
the Revised Code.	1998

(7) The following restrictions do not apply if the deceased	1999
member was contributing toward benefits under section 145.332 of	2000
the Revised Code at the time of death:	2001

(a) That the deceased member have had at least one and	2002
one-half years of contributing service credit, with at least	2003
one-quarter year of contributing service within the two and	2004
one-half years prior to the date of death;	2005

(b) If the deceased member was killed in the line of duty,	2006
that the deceased member have had ten or more years of Ohio	2007
service credit as described in division (B)(2)(a)(i) of this	2008
section.	2009

For the purposes of division (B)(7)(b) of this section,	2010
"killed in the line of duty," means either that death occurred in	2011
the line of duty or that death occurred as a result of injury	2012
sustained in the line of duty.	2013

(C)(1) Regardless of whether the member is survived by a	2014
spouse or designated beneficiary, if the public employees	2015
retirement system receives notice that a deceased member described	2016
in division (A) or (B) of this section has one or more qualified	2017
children, all persons who are qualified survivors under division	2018
(B) of this section shall receive monthly benefits as provided in	2019
division (B) of this section.	2020

If, after determining the monthly benefits to be paid under	2021
division (B) of this section, the system receives notice that	2022
there is a qualified survivor who was not considered when the	2023
determination was made, the system shall, notwithstanding section	2024
145.561 of the Revised Code, recalculate the monthly benefits with	2025
that qualified survivor included, even if the benefits to	2026
qualified survivors already receiving benefits are reduced as a	2027
result. The benefits shall be calculated as if the qualified	2028
survivor who is the subject of the notice became eligible on the	2029
date the notice was received and shall be paid to qualified	2030
survivors effective on the first day of the first month following	2031
the system's receipt of the notice.	2032

If the retirement system did not receive notice that a	2033
deceased member has one or more qualified children prior to making	2034
payment under section 145.43 of the Revised Code to a beneficiary	2035
as determined by the retirement system, the payment is a full	2036
discharge and release of the system from any future claims under	2037
this section or section 145.43 of the Revised Code.	2038

(2) If benefits under division (C)(1) of this section to all	2039
persons, or to all persons other than a surviving spouse or other	2040
sole beneficiary, terminate, there are no children under the age	2041
of twenty-two years, and the surviving spouse or beneficiary	2042
qualifies for benefits under division (A) of this section, the	2043
surviving spouse or beneficiary may elect to receive benefits	2044
under division (A) of this section. The benefits shall be	2045
effective on the first day of the month immediately following the	2046
termination.	2047

(D) The final average salary used in the calculation of a	2048
benefit payable pursuant to division (A) or (B) of this section to	2049
a survivor or beneficiary of a disability benefit recipient shall	2050
be adjusted for each year between the disability benefit's	2051
effective date and the recipient's date of death by the lesser of	2052
three per cent or the actual average percentage increase in the	2053
consumer price index prepared by the United States bureau of labor	2054
statistics (U.S. city average for urban wage earners and clerical	2055
workers: "all items 1982-84=100").	2056

(E) If the survivor benefits due and paid under this section	2057
are in a total amount less than the member's accumulated account	2058
that was transferred from the public employees' savings fund to	2059
the survivors' benefit fund, then the difference between the total	2060
amount of the benefits paid shall be paid to the beneficiary under	2061
section 145.43 of the Revised Code.	2062

Sec. 145.46. (A) A retirement allowance calculated under	2063
section 145.33, 145.331, or 145.332 of the Revised Code shall be	2064
paid as provided in this section.	2065

Unless the member is required by division (C) of this section	2066
to select a specified plan of payment, a member may elect a plan	2067
of payment as provided in division (B)(1), (2), or (3) of this	2068
section. An election shall be made at the time the member makes	2069
application for retirement and on a form provided by the public	2070
employees retirement board. A plan of payment elected under this	2071
section shall be effective only if approved by the board, which	2072
shall approve it only if it is certified by an actuary engaged by	2073
the board to be the actuarial equivalent of the retirement	2074
allowance calculated under section 145.33, 145.331, or 145.332 of	2075
the Revised Code.	2076

(B) The following plans of payment shall be offered by the	2077
public employees retirement system:	2078

(1) "Joint-life plan," an allowance that consists of the	2079
actuarial equivalent of the member's retirement allowance	2080
determined under section 145.33, 145.331, or 145.332 of the	2081
Revised Code in a lesser amount payable for life and one-half or	2082
some other portion equal to ten per cent or more of the allowance	2083
continuing after death to the member's designated beneficiary for	2084
the beneficiary's life. The beneficiary shall be nominated by	2085
written designation filed with the retirement board. The amount	2086
payable to the beneficiary shall not exceed the amount payable to	2087
the member.	2088

(2) "Single-life plan," the member's retirement allowance	2089
determined under section 145.33, 145.331, or 145.332 of the	2090
Revised Code;	2091

(3) "Multiple-life plan," an allowance that consists of the	2092
actuarial equivalent of the member's retirement allowance	2093
determined under section 145.33, 145.331, or 145.332 of the	2094
Revised Code in a lesser amount payable to the retirant for life	2095
and some portion of the lesser amount continuing after death to	2096
two, three, or four surviving beneficiaries designated at the time	2097
of the member's retirement. Unless required under division (C) of	2098
this section, no portion allocated under this plan of payment	2099
shall be less than ten per cent. The total of the portions	2100
allocated shall not exceed one hundred per cent of the member's	2101
lesser allowance.	2102

2103

(1) Subject to division (C)(2) of this section, if the member	2104
is married at the time of retirement, the member shall select a	2105
joint-life plan and receive a plan of payment that consists of the	2106
actuarial equivalent of the member's retirement allowance	2107
determined under section 145.33, 145.331, or 145.332 of the	2108
Revised Code in a lesser amount payable for life and one-half of	2109
such allowance continuing after death to the member's surviving	2110
spouse for the life of the spouse. A married member is not	2111
required to select this plan of payment if the member's spouse	2112
consents in writing to the member's election of a plan of payment	2113
other than described in this division or the board waives the	2114
requirement that the spouse consent;	2115

(2) If prior to the effective date of the member's	2116
retirement, the public employees retirement board receives a copy	2117
of a court order issued under section 3105.171 or 3105.65 of the	2118
Revised Code or the laws of another state regarding division of	2119
marital property the board shall accept the member's election of a	2120
plan of payment under this section only if the member complies	2121
with both of the following:	2122

(a) The member elects a plan of payment that is in accordance	2123
with the order.	2124

(b) If the member is married, the member elects a	2125
multiple-life plan and designates the member's current spouse as a	2126
beneficiary under that plan unless that spouse consents in writing	2127
to not being designated a beneficiary under any plan of payment or	2128
the board waives the requirement that the current spouse consent.	2129

(D) An application for retirement shall include an	2130
explanation of all of the following:	2131

(1) That, if the member is married, unless the spouse	2132
consents to another plan of payment or there is a court order	2133
dividing marital property issued under section 3105.171 or 3105.65	2134
of the Revised Code or the laws of another state regarding the	2135
division of marital property that provides for payment in a	2136
specified amount, the member's retirement allowance will be paid	2137
under a joint-life plan and consist of the actuarial equivalent of	2138
the member's retirement allowance in a lesser amount payable for	2139
life and one-half of the allowance continuing after death to the	2140
surviving spouse for the life of the spouse;	2141

(2) A description of the alternative plans of payment,	2142
including all plans described in division (B) of this section,	2143
available with the consent of the spouse;	2144

(3) That the spouse may consent to another plan of payment	2145
and the procedure for giving consent;	2146

(4) That consent is irrevocable once notice of consent is	2147
filed with the board.	2148

Consent shall be valid only if it is signed, in writing, and	2149
witnessed by a notary public. The board may waive the requirement	2150
of consent if the spouse is incapacitated or cannot be located or	2151
for any other reason specified by the board. Consent or waiver is	2152
effective only with regard to the spouse who is the subject of the	2153
consent or waiver.	2154

(E)(1) Beginning on a date selected by the retirement board,	2155
which shall be not later than July 1, 2004, a member may elect to	2156
receive a retirement allowance under a plan of payment consisting	2157
of both a lump sum in an amount the member designates that	2158
constitutes a portion of the member's retirement allowance under a	2159
plan described in division (B) of this section and the remainder	2160
as a monthly allowance under that plan.	2161

The total amount paid as a lump sum and a monthly benefit	2162
shall be the actuarial equivalent of the amount that would have	2163
been paid had the lump sum not been selected.	2164

(2) The lump sum designated by a member shall be not less	2165
than six times and not more than thirty-six times the monthly	2166
amount that would be payable to the member under the plan of	2167
payment elected under division (B) of this section had the lump	2168
sum not been elected and shall not result in a monthly allowance	2169
that is less than fifty per cent of that monthly amount.	2170

(F) If the retirement allowances, as a single life annuity or	2171
payment plan as provided in this section, due and paid are in a	2172
total amount less than (1) the accumulated contributions, and (2)	2173
other deposits made by the member as provided by this chapter,	2174
standing to the credit of the member at the time of retirement,	2175
then the difference between the total amount of the allowances	2176
paid and the accumulated contributions and other deposits shall be	2177
paid to the beneficiary provided under division (D) of section	2178
145.43 of the Revised Code.	2179

(G)(1) The death of a spouse or any designated beneficiary	2180
following retirement shall cancel the portion of the plan of	2181
payment providing continuing lifetime benefits to the deceased	2182
spouse or deceased designated beneficiary. The retirant shall	2183
receive the actuarial equivalent of the retirant's single lifetime	2184
benefit, as determined by the board, based on the number of	2185
remaining beneficiaries, with no change in the amount payable to	2186
any remaining beneficiary. The change shall be effective the month	2187
following the date of death.	2188

(2) On divorce, annulment, or marriage dissolution, a	2189
retirant receiving a retirement allowance under a plan that	2190
provides for continuation of all or part of the allowance after	2191
death for the lifetime of the retirant's surviving spouse may,	2192
with the written consent of the spouse or pursuant to an order of	2193
the court with jurisdiction over the termination of the marriage,	2194
elect to cancel the portion of the plan providing continuing	2195
lifetime benefits to that spouse. The retirant shall receive the	2196
actuarial equivalent of the retirant's single lifetime benefit as	2197
determined by the retirement board based on the number of	2198
remaining beneficiaries, with no change in amount payable to any	2199
remaining beneficiary. The election shall be made on a form	2200
provided by the board and shall be effective the month following	2201
its receipt by the board.	2202

(H)(1) Following a marriage or remarriage, both of the	2203
following apply:	2204

(a) A retirant who is receiving the retirant's retirement	2205
allowance under a single-life plan may elect a new plan of payment	2206
under division (B)(1) ~~or (3)~~ of this section based on the	2207
actuarial equivalent of the retirant's single lifetime benefit as	2208
determined by the board.	2209

(b) A retirant who is receiving a retirement allowance	2210
pursuant to a plan of payment providing for payment to a former	2211
spouse pursuant to a court order described in division (C)(2) of	2212
this section may elect a new plan of payment in the form of a	2213
multiple-life plan based on the actuarial equivalent of the	2214
retirant's single lifetime retirement allowance as determined by	2215
the board if the new plan of payment elected does not reduce the	2216
payment to the former spouse.	2217

(2) If the marriage or remarriage occurs on or after June 6,	2218
2005, the election must be made not later than one year after the	2219
date of the marriage or remarriage.	2220

The plan elected under this division shall become effective	2221
on the date of receipt by the board of an application on a form	2222
approved by the board, but any change in the amount of the	2223
retirement allowance shall commence on the first day of the month	2224
following the effective date of the plan.	2225

(I) Any person who, prior to July 24, 1990, selected an	2226
optional plan of payment at retirement that provided for a return	2227
to the single life benefit after the designated beneficiary's	2228
death shall have the retirant's benefit adjusted to the optional	2229
plan equivalent without such provision.	2230

(J) A retirant's receipt of the first month's retirement	2231
allowance constitutes the retirant's final acceptance of the plan	2232
of payment and may be changed only as provided in this chapter.	2233

Sec. 145.563. Notwithstanding section 145.561 of the Revised	2234
Code:	2235

(A) The public employees retirement system may adjust an	2236
allowance or benefit payable under this chapter if an error	2237
occurred in calculation of the allowance or benefit;	2238

(B) If any person who is a member, former member,	2239
contributor, former contributor, retirant, beneficiary, or	2240
alternate payee, as defined in section 3105.80 of the Revised	2241
Code, is paid any benefit or payment by the public employees	2242
retirement system, including any payment made to a third party on	2243
the person's behalf, to which the person is not entitled, the	2244
benefit or payment shall be repaid to the retirement system by the	2245
person or third party. IfA repayment required by this section may	2246
include a penalty or interest on the amount of the benefit or	2247
payment, as specified in rules adopted by the public employees	2248
retirement board. The rules shall specify the method for	2249
calculating a penalty or interest and the conditions under which a	2250
penalty or interest may be assessed.	2251

If the person or third party fails to make the repayment, the	2252
retirement system shall withhold the amount or a portion of the	2253
amount due from any benefit or payment due the person or the	2254
person's beneficiary under this chapter, or may collect the amount	2255
in any other manner provided by law.	2256

Sec. 145.58. (A) The public employees retirement board shall	2257
adopt rules establishing eligibility for any coverage provided	2258
under this section. The rules shall base eligibility on years and	2259
types of service credit earned by members. Eligibility	2260
determinations shall be made in accordance with the rules, except	2261
that an individual who, as a result of making a false statement in	2262
an attempt to secure a benefit under this section, is convicted of	2263
violating section 2921.13 of the Revised Code is ineligible for	2264
coverage.	2265

(B) The board may enter into agreements with insurance	2266
companies, health insuring corporations, or government agencies	2267
authorized to do business in the state for issuance of a policy or	2268
contract of health, medical, hospital, or surgical ~~benefits~~	2269
coverage, or any combination thereof, for eligible individuals	2270
receiving age and service retirement or a disability or survivor	2271
benefit subscribing to the plan, or for PERS retirants employed	2272
under section 145.38 of the Revised Code, for coverage ~~of benefits~~	2273
in accordance with division ~~(C)~~(D)(2) of section 145.38 of the	2274
Revised Code. Notwithstanding any other provision of this chapter,	2275
the policy or contract may also include coverage for any eligible	2276
individual's spouse and dependent children and for any of the	2277
eligible individual's sponsored dependents as the board determines	2278
appropriate. If all or any portion of the policy or contract	2279
premium is to be paid by any individual receiving age and service	2280
retirement or a disability or survivor benefit, the individual	2281
shall, by written authorization, instruct the board to deduct the	2282
premium agreed to be paid by the individual to the company,	2283
corporation, or agency.	2284

The board may contract for coverage on the basis of part or	2285
all of the cost of the coverage to be paid from appropriate funds	2286
of the public employees retirement system. The cost paid from the	2287
funds of the system shall be included in the employer's	2288
contribution rate provided by sections 145.48 and 145.51 of the	2289
Revised Code. The board may by rule provide coverage to	2290
individuals who are not eligible under the rules adopted under	2291
division (A) of this section if the coverage is provided at no	2292
cost to the retirement system. The board shall not pay or	2293
reimburse the cost for coverage under this section or section	2294
145.584 of the Revised Code for any such individual.	2295

The board may provide for self-insurance of risk or level of	2296
risk as set forth in the contract with the companies,	2297
corporations, or agencies, and may provide through the	2298
self-insurance method specific ~~benefits~~coverage as authorized by	2299
rules of the board.	2300

(C) The board shall, beginning the month following receipt of	2301
satisfactory evidence of the payment for coverage, pay monthly to	2302
each recipient of service retirement, or a disability or survivor	2303
benefit under the public employees retirement system who is	2304
eligible for coverage under part B of the medicare program	2305
established under Title XVIII of "The Social Security Act	2306
Amendments of 1965," 79 Stat. 301 (1965), 42 U.S.C.A. 1395j, as	2307
amended, an amount determined by the board for such coverage,	2308
except that the board shall make no such payment to any individual	2309
who is not eligible for coverage under the rules adopted under	2310
division (A) of this section or pay an amount that exceeds the	2311
amount paid by the recipient for the coverage.	2312

At the request of the board, the recipient shall certify to	2313
the retirement system the amount paid by the recipient for	2314
coverage described in this division.	2315

(D) The board shall establish by rule requirements for the	2316
coordination of any coverage,or payment~~, or benefit~~ provided	2317
under this section or section 145.584 of the Revised Code with any	2318
similar coverage,or payment~~, or benefit~~ made available to the	2319
same individual by the Ohio police and fire pension fund, state	2320
teachers retirement system, school employees retirement system, or	2321
state highway patrol retirement system.	2322

(E) The board shall make all other necessary rules pursuant	2323
to the purpose and intent of this section.	2324

Sec. 145.581. (A) As used in this section:

2325

(1) "Long-term care insurance" has the same meaning as in	2326
section 3923.41 of the Revised Code.	2327

(2) "Retirement systems" means the public employees	2328
retirement system, the Ohio police and fire pension fund, the	2329
state teachers retirement system, the school employees retirement	2330
system, and the state highway patrol retirement system.	2331

(B) The public employees retirement board ~~shall~~may establish	2332
a long-term care insurance program consisting of the programs	2333
authorized by divisions (C) and (D) of this section. Such program	2334
may be established independently or jointly with one or more of	2335
the other retirement systems. If the program is established	2336
jointly, the board shall adopt rules in accordance with section	2337
111.15 of the Revised Code to establish the terms and conditions	2338
of such joint participation.	2339

(C) The board ~~shall~~may establish a program under which it	2340
makes long-term care insurance available to any person who	2341
participated in a policy of long-term care insurance for which the	2342
state or a political subdivision contracted under section 124.84	2343
or 124.841 of the Revised Code and is the recipient of a pension,	2344
benefit, or allowance from the system. To implement the program	2345
under this division, the board, subject to division (E) of this	2346
section, may enter into an agreement with the insurance company,	2347
health insuring corporation, or government agency that provided	2348
the insurance. The board shall, under any such agreement, deduct	2349
the full premium charged from the person's benefit, pension, or	2350
allowance notwithstanding any employer agreement to the contrary.	2351

Any long-term care insurance policy entered into under this	2352
division is subject to division (C) of section 124.84 of the	2353
Revised Code.	2354

(D)(1) The board, subject to division (E) of this section,	2355
~~shall~~may establish a program under which a recipient of a	2356
pension, benefit, or allowance from the system who is not eligible	2357
for such insurance under division (C) of this section may	2358
participate in a contract for long-term care insurance.	2359
Participation may include the recipient's dependents and family	2360
members.	2361

(2) The board ~~shall~~may adopt rules in accordance with	2362
section 111.15 of the Revised Code governing the program. ~~The~~Any	2363
rules adopted by the board shall establish methods of payment for	2364
participation under this section, which may include deduction of	2365
the full premium charged from a recipient's pension, benefit, or	2366
allowance, or any other method of payment considered appropriate	2367
by the board.	2368

(E) Prior to entering into any agreement or contract with an	2369
insurance company or health insuring corporation for the purchase	2370
of, or participation in, a long-term care insurance policy under	2371
this section, the board shall request the superintendent of	2372
insurance to certify the financial condition of the company or	2373
corporation. The board shall not enter into the agreement or	2374
contract if, according to that certification, the company or	2375
corporation is insolvent, is determined by the superintendent to	2376
be potentially unable to fulfill its contractual obligations, or	2377
is placed under an order of rehabilitation or conservation by a	2378
court of competent jurisdiction or under an order of supervision	2379
by the superintendent.	2380

Sec. 145.584. (A) Except as otherwise provided in division	2381
(B) of this section, the board of the public employees retirement	2382
system shall make available to each retirant or disability benefit	2383
recipient receiving a monthly allowance or benefit on or after	2384
January 1, 1968, who has attained the age of sixty-five years, and	2385
who is not eligible to receive hospital insurance benefits under	2386
the federal old age, survivors, and disability insurance program	2387
without payment of premiums, ~~hospital~~one of the following:	2388

(1) Hospital insurance coverage substantially equivalent to	2389
the federal hospital insurance benefits, Social Security	2390
Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended;	2391

(2) An amount, determined by the board, to reimburse the	2392
retirant or disability benefit recipient for payment of premiums	2393
for federal hospital insurance benefits described in this	2394
division, which amount shall not exceed the premiums paid. ~~This~~	2395

This coverage or amount shall also be made available to the	2396
spouse, widow, or widower of such retirant or disability benefit	2397
recipient provided such spouse, widow, or widower has attained age	2398
sixty-five and is not eligible to receive hospital insurance	2399
benefits under the federal old age, survivors, and disability	2400
insurance program without payment of premiums. The widow or	2401
widower of a retirant or disability benefit recipient shall be	2402
eligible for such coverage or amount only if he or she is the	2403
recipient of a monthly allowance or benefit from this system. A	2404
portion of the cost of the premium or amount for the spouse may be	2405
paid from the appropriate funds of the ~~public employees retirement~~	2406
system. The remainder of the cost shall be paid by the recipient	2407
of the allowance or benefit.	2408

The cost of such coverage or amount, paid from the funds of	2409
the system, shall be included in the employer's rate provided by	2410
section 145.48 of the Revised Code. The retirement board is	2411
authorized to make all necessary rules pursuant to the purpose and	2412
intent of this section, and ~~shall~~may contract for such coverage	2413
as provided in section 145.58 of the Revised Code.	2414

At the request of the board, the recipient of reimbursement	2415
under this section shall certify to the retirement system the	2416
premium paid for the federal insurance benefits described in	2417
division (A) of this section. Payment of the amount described in	2418
division (A)(2) of this section shall begin for the first month	2419
that the recipient is participating in both the federal hospital	2420
insurance benefits and a health care arrangement offered by the	2421
system.	2422

(B) The board need not make the hospital insurance coverage	2423
or amount described in division (A) of this section available to	2424
any person for whom it is prohibited by section 145.58 of the	2425
Revised Code from paying or reimbursing the premium cost of such	2426
insurance.	2427

Sec. 145.63. (A) Deposits under section 145.62 of the Revised	2428
Code, together with earnings, shall be refunded under whichever of	2429
the following circumstances applies:	2430

(1) On withdrawal of accumulated contributions as provided in	2431
sections 145.40 and 145.43 of the Revised Code or payment of a	2432
lump sum under section 145.384 of the Revised Code;	2433

(2) On the death of a contributor prior to retirement;

2434

(3) In the case of a contributor participating in the PERS	2435
defined benefit plan, on application of the contributor prior to	2436
attaining eligibility for age and service retirement;	2437

(4) In the case of a contributor under section 145.38 or	2438
145.383 of the Revised Code, on application of the contributor	2439
prior to attaining eligibility for a benefit under section 145.384	2440
of the Revised Code;	2441

(5) In the case of a contributor who has attained eligibility	2442
for an age and service retirement benefit or a benefit under	2443
section 145.384 of the Revised Code and is not married, on	2444
application;	2445

(6) In the case of a contributor who has attained eligibility	2446
for an age and service retirement benefit or a benefit under	2447
section 145.384 of the Revised Code and is married, on application	2448
if the application is accompanied by a statement of the spouse's	2449
consent to the refund or the public employees retirement board	2450
waives the requirement that the spouse consent;	2451

(7) In the case of a contributor who has attained eligibility	2452
for an age and service retirement benefit as a consequence of	2453
section 145.37 of the Revised Code and will receive a retirement	2454
or disability benefit from the state teachers retirement system or	2455
school employees retirement system but has not requested a	2456
transfer of funds to the other retirement system under division	2457
(B)~~(1)(g)~~(8) of section 145.37 of the Revised Code, at the time	2458
the public employees retirement system pays to the other	2459
retirement system the amount required under division (B)~~(1)(e)~~(6)	2460
of that section;	2461

(8) In the case of a disability benefit recipient under	2462
section 145.36 of the Revised Code who is not eligible for an age	2463
and service retirement allowance, on the effective date of	2464
disability retirement.	2465

(B) The consent of a spouse to a refund is valid only if it	2466
is in writing, signed, and witnessed by a notary public.	2467

The board may waive the requirement of consent if the spouse	2468
is incapacitated or cannot be located or for any other reason	2469
specified by the board. Consent or waiver is effective only with	2470
regard to the spouse who is the subject of the consent or waiver.	2471

Sec. 145.64. (A) As used in this section, "joint-life plan,"	2472
"single-life plan," and "multiple-life plan" have the same	2473
meanings as in division (B) of section 145.46 of the Revised Code.	2474

(B) A contributor who has not received a refund of amounts	2475
deposited under section 145.62 or the version of division (C) of	2476
section 145.23 of the Revised Code as it existed immediately prior	2477
to April 6, 2007, may file an application with the public	2478
employees retirement system for a benefit under this section.	2479
Except as provided in section 145.62 of the Revised Code, the	2480
benefit shall consist of an annuity that shall be paid as	2481
described in division (B) of section 145.46 of the Revised Code.	2482

The application must be filed prior to receipt of an age and	2483
service retirement benefit from the retirement system or, in the	2484
case of a contributor under section 145.38 or 145.383 of the	2485
Revised Code, a benefit under section 145.384 of the Revised Code.	2486
A contributor who fails to file an application for a benefit under	2487
this section prior to receipt of an age and service retirement	2488
benefit or a benefit under section 145.384 of the Revised Code	2489
shall be eligible only for a refund under section 145.63 of the	2490
Revised Code.	2491

(1) Except as provided in division (B)(2) of this section, a	2492
contributor who is married at the time of application for a	2493
benefit under this section shall receive the benefit as a monthly	2494
annuity under a joint-life plan.	2495

(2) A contributor may receive a benefit under this section	2496
under a plan of payment other than a joint-life plan if one of the	2497
following is the case:	2498

(a) The contributor is unmarried;

2499

(b) The benefit application is accompanied by a statement of	2500
the spouse's consent to another plan of payment or the public	2501
employees retirement board waives the requirement that the spouse	2502
consent;	2503

(c) A plan of payment providing for payment in a specified	2504
portion of the benefit continuing after the member's death to a	2505
former spouse is required by a court order issued under section	2506
3105.171 or 3105.65 of the Revised Code or the laws of another	2507
state regarding division of marital property prior to the	2508
effective date of the contributor's benefit application.	2509

(3) If a member is subject to division (B)(2)(c) of this	2510
section and the board has received a copy of the order described	2511
in that division, the board shall accept the member's election of	2512
a plan of payment under this section only if the member complies	2513
with both of the following:	2514

(a) The member elects a plan of payment that is in accordance	2515
with the order described in division (B)(2)(c) of this section.	2516

(b) If the member is married, the member elects a	2517
multiple-life plan and designates the member's current spouse as a	2518
beneficiary under that plan unless that spouse consents in writing	2519
to not being designated a beneficiary or the board waives the	2520
requirement that the current spouse consent.	2521

(4) The contributor shall designate the beneficiary or	2522
beneficiaries under a plan of payment in writing at the time the	2523
plan is selected.	2524

(5) A plan of payment, other than a single-life plan, shall	2525
be effective only if it is certified by an actuary engaged by the	2526
board to be the actuarial equivalent of the contributor's	2527
single-life plan annuity and is approved by the board.	2528

(6) A contributor who is eligible to select a plan of payment	2529
under this section but fails to do so shall receive a monthly	2530
annuity under the plan of payment specified in rules adopted by	2531
the board.	2532

(C) An annuity shall be paid monthly and consist of an amount	2533
determined by the public employees retirement system or the	2534
actuarial equivalent of that amount paid as described in this	2535
section.	2536

Payments shall begin on whichever of the following applies:

2537

(1) Except as provided in this division, the later of the	2538
effective date of the contributor's age and service retirement	2539
allowance or the first day of the month following the latest of:	2540

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

2541

(b) The attainment of the member's applicable minimum age or	2542
service credit eligibility as provided in section 145.32 or	2543
145.332 of the Revised Code;	2544

(c) The first day of the month following receipt of an	2545
application for an age and service retirement benefit.	2546

(2) The later of the effective date of a benefit under	2547
section 145.384 of the Revised Code or the first day of the month	2548
following the latest of:	2549

(a) The last day for which compensation for employment	2550
subject to section 145.38 or 145.383 of the Revised Code was paid;	2551

(b) Attainment by the contributor of age sixty-five;

2552

(c) If the contributor was previously employed as described	2553
in division (E)(3) of section 145.384 of the Revised Code,	2554
completion of a period of twelve months since the effective date	2555
of the last benefit under that section;	2556

(d) Receipt of an application for a benefit under section	2557
145.384 of the Revised Code.	2558

(3) The ~~later of the~~ effective date of disability retirement	2559
under section 145.36 of the Revised Code orif the ~~date on which a~~	2560
member ~~receiving disability retirement would have been~~is eligible	2561
for an age and service retirement allowance on that date.	2562

(4) The first day of the month following the last day for	2563
which a disability allowance is paid under section 145.361 of the	2564
Revised Code.	2565

(D) The consent of a spouse to a plan of payment other than a	2566
joint-life plan is valid only if it is in writing, signed, and	2567
witnessed by a notary public. The board may waive the requirement	2568
of consent if the spouse is incapacitated or cannot be located or	2569
for any other reason specified by the board. Consent or waiver is	2570
effective only with regard to the spouse who is the subject of the	2571
consent or waiver.	2572

(E)(1) The death of a spouse or any designated beneficiary	2573
shall cancel the portion of an annuity providing continuing	2574
lifetime payments to the deceased spouse or deceased designated	2575
beneficiary. The contributor shall receive the actuarial	2576
equivalent of the contributor's remaining annuity, as determined	2577
by the board, based on the number of remaining beneficiaries, with	2578
no change in the amount payable to any remaining beneficiary. If	2579
the retirement system receives notice of the death on or after ~~the~~	2580
~~effective date of this amendment~~January 7, 2013, the change shall	2581
be effective the month following the date of death.	2582

(2) On divorce, annulment, or marriage dissolution, a	2583
contributor receiving an annuity under a plan of payment that	2584
provides for continuation of all or part of the annuity after	2585
death for the lifetime of the contributor's surviving spouse may,	2586
with the written consent of the spouse or pursuant to an order of	2587
the court with jurisdiction over the termination of the marriage,	2588
elect to cancel the portion of the plan providing continuing	2589
lifetime payments to that spouse. The contributor shall receive	2590
the actuarial equivalent of the contributor's annuity as	2591
determined by the board based on the number of remaining	2592
beneficiaries, with no change in the amount payable to any	2593
remaining beneficiary. The election shall be made on a form	2594
provided by the board and shall be effective the month following	2595
its receipt by the board.	2596

(F)(1) Following a marriage or remarriage, both of the	2597
following apply:	2598

(a) A contributor who is receiving payments under a	2599
single-life plan may elect a new plan of payment based on the	2600
actuarial equivalent of the contributor's single-life plan annuity	2601
as determined by the board.	2602

(b) A contributor receiving an annuity under this section	2603
pursuant to a plan of payment providing for payment to a former	2604
spouse pursuant to a court order as described in division	2605
(B)(2)(c) of this section may elect a new plan of payment under a	2606
multiple-life plan based on the actuarial equivalent of the	2607
contributor's benefit as determined by the board if the new plan	2608
of payment does not reduce the payment to the former spouse.	2609

(2) An election under division (F)(1) of this section must be	2610
made not later than one year after the date of the marriage or	2611
remarriage.	2612

The plan elected shall become effective on the date of	2613
receipt by the board of an application on a form approved by the	2614
board, but any change in the amount of the annuity payment shall	2615
commence on the first day of the month following the effective	2616
date of the plan.	2617

(G) If at the time of death a contributor receiving a monthly	2618
annuity under a single-life plan has received less than the	2619
retirant's deposits under section 145.62 or the version of	2620
division (C) of section 145.23 of the Revised Code as it existed	2621
immediately prior to April 6, 2007, plus earnings on those	2622
deposits, the difference between the amount received and the	2623
amount of the contributor's deposits plus earnings shall be paid	2624
to the contributor's beneficiary under section 145.65 of the	2625
Revised Code. If any designated beneficiary receiving a monthly	2626
annuity under this section dies and at the time of the	2627
beneficiary's death the amounts paid to the contributor and the	2628
beneficiary are less than the amount of the contributor's deposits	2629
plus earnings on those deposits, the difference between the amount	2630
received by the contributor and the beneficiary and the amount of	2631
the contributor's deposits plus earnings shall be paid to the	2632
beneficiary's estate.	2633

(H) Receipt of the first month's annuity payment constitutes	2634
final acceptance of the plan of payment and may be changed only as	2635
provided in this section.	2636

Sec. 145.82. (A) Except as provided in divisions (B) and (C)	2637
of this section, sections 145.201 to 145.70 of the Revised Code do	2638
not apply to a PERS defined contribution plan, except that a PERS	2639
defined contribution plan may incorporate provisions of those	2640
sections as specified in the plan document.	2641

(B) The following sections of Chapter 145. of the Revised	2642
Code apply to a PERS defined contribution plan: ~~145.195~~145.01 to	2643
145.20, 145.22, 145.221, 145.23, 145.25, 145.26, 145.27, 145.296,	2644
145.38, 145.384, 145.391, ~~145.43,~~ 145.431, 145.47, 145.48,	2645
145.483, 145.51, 145.52, 145.53, 145.54, 145.55, 145.56, 145.563,	2646
145.57, 145.571, 145.572, ~~145.573, 145.574,~~ 145.69, and 145.70 of	2647
the Revised Code.	2648

(C) A PERS defined contribution plan that includes definitely	2649
determinable benefits may incorporate by reference all or part of	2650
sections 145.201 to 145.79 of the Revised Code to allow a member	2651
participating in the plan to purchase service credit or to be	2652
eligible for any of the following:	2653

(1) Retirement, disability, survivor, or death benefits;

2654

(2) Health or long-term care insurance or any other type of	2655
health care benefit;	2656

(3) Additional increases under section 145.323 of the Revised	2657
Code;	2658

(4) A refund of contributions made by or on behalf of a	2659
member.	2660

With respect to the benefits described in division (C)(1) of	2661
this section, the public employees retirement board may establish	2662
eligibility requirements and benefit formulas or amounts that	2663
differ from those of members participating in the PERS defined	2664
benefit plan. With respect to the purchase of service credit by a	2665
member participating in a PERS defined contribution plan, the	2666
board may reduce the cost of the service credit to reflect the	2667
different benefit formula established for the member.	2668

Sec. 145.88. Amounts contributed under sections 145.85 and	2669
145.86 of the Revised Code, and any earnings on those amounts,	2670
shall be deposited and credited in accordance with the PERS	2671
defined contribution plan that is selected by the member. The plan	2672
may include provisions authorizing the public employees retirement	2673
system to do either of the following:	2674

(A) Withhold from the amounts contributed under sections	2675
145.85 and 145.86 of the Revised Code a percentage of earnable	2676
salary or a fixed dollar amount that is determined by an actuary	2677
appointed by the public employees retirement board to be necessary	2678
to administer the plan;	2679

(B) Withhold from the amounts contributed under section	2680
145.86 of the Revised Code a percentage of earnable salary for the	2681
purpose of funding health care insurance coverage or any other	2682
type of health care benefit for a member participating in the	2683
plan.	2684

Sec. 145.92. If a member participating in a PERS defined	2685
contribution plan is married at the time benefits under the plan	2686
are to commence, unless the spouse consents to another plan of	2687
payment or the spouse's consent is waived, the member's benefit	2688
under the plan shall be paid in a lesser amount payable for life	2689
and one-half of that amount continuing after death to the	2690
surviving spouse for the life of the spouse.	2691

Consent is valid only if it is evidenced by a written	2692
document signed by the spouse and the signature is witnessed by a	2693
notary public. A plan may waive the requirement of consent if the	2694
spouse is incapacitated or cannot be located or for any other	2695
reason specified by the plan or in rules adopted by the public	2696
employees retirement board.	2697

A plan shall waive the requirement of consent if a plan of	2698
payment that provides for payment in a specified portion of the	2699
~~retirement allowance~~benefit continuing after the member's death	2700
to a former spouse is required by a court order issued under	2701
section 3105.171 or 3105.65 of the Revised Code or laws of another	2702
state regarding division of marital property prior to the	2703
effective date of the member's retirement. If a court order	2704
requires this plan of payment, the member shall be required to	2705
annuitize the member's accumulated amounts in accordance with the	2706
order. If the member is married, the plan of payment selected by	2707
the member also shall provide for payment to the member's current	2708
spouse, unless the current spouse consents in writing to not being	2709
designated a beneficiary under the plan of payment or the current	2710
spouse's consent is waived by reason other than the court order.	2711

Consent or waiver is effective only with regard to the spouse	2712
who is the subject of the consent or waiver.	2713

Sec. 145.95. (A) Subject to division (B) of this section and	2714
sections 145.38, 145.56, 145.57, 145.572, 145.573, and 145.574 of	2715
the Revised Code, the right of a member participating in a PERS	2716
defined contribution plan to any payment or benefit accruing from	2717
contributions made by or on behalf of the member under sections	2718
145.85 and 145.86 of the Revised Code shall vest in accordance	2719
with this section.	2720

A member's right to any payment or benefit that is based on	2721
the member's contributions is nonforfeitable.	2722

A member's right to any payment or benefit that is based on	2723
contributions by the member's employer is nonforfeitable as	2724
specified by the plan selected by the member.	2725

(B) This section does not apply to an increase made under	2726
section 145.323 of the Revised Code for a recipient whose benefit	2727
effective date is on or after ~~the effective date of this amendment~~	2728
January 7, 2013.	2729

Sec. 171.04. The Ohio retirement study council shall:

2730

(A) Make an impartial review from time to time of all laws	2731
governing the administration and financing of the pension and	2732
retirement funds under Chapters 145., 146., 742., 3307., 3309.,	2733
and 5505. of the Revised Code and recommend to the general	2734
assembly any changes it may find desirable with respect to the	2735
allowances and benefits, sound financing of the cost of benefits,	2736
the prudent investment of funds, and the improvement of the	2737
language, structure, and organization of the laws;	2738

(B) Make an annual report to the governor and to the general	2739
assembly covering its evaluation and recommendations with respect	2740
to the operations of the state retirement systems and their funds;	2741

(C) Study all changes in the retirement laws proposed to the	2742
general assembly and report to the general assembly on their	2743
probable costs, actuarial implications, and desirability as a	2744
matter of public policy;	2745

(D) Review semiannually the policies, objectives, and	2746
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15,	2747
and 5505.06 of the Revised Code for the operation of the	2748
investment programs of the state retirement systems, including a	2749
review of asset allocation targets and ranges, risk factors, asset	2750
class benchmarks, time horizons, total return objectives, relative	2751
volatility, and performance evaluation guidelines. The council	2752
shall, not later than thirty days after completing a review,	2753
submit to the governor and the general assembly a report	2754
summarizing its findings.	2755

(E) Have prepared for each system by an independent actuary,	2756
at least once every ten years, an actuarial review of the	2757
actuarial valuations and quinquennial actuarial investigations	2758
prepared under sections 145.22, 742.14, 3307.20, 3309.21, and	2759
5505.12 of the Revised Code, including a review of the actuarial	2760
assumptions and methods, the data underlying the valuations and	2761
investigations, and the adequacy of each system's employee and	2762
employer contribution rates to amortize its unfunded actuarial	2763
pension liability, if any, and to support the payment of benefits	2764
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the	2765
Revised Code. The council shall submit to the governor and the	2766
general assembly a report summarizing ~~the~~each review.	2767

All costs associated with an actuarial review prepared	2768
pursuant to division (E) of this section shall be paid by the	2769
retirement system for which the review is prepared.	2770

(F) Have conducted by an independent auditor at least once	2771
every ten years a fiduciary performance audit of each of the state	2772
retirement systems.	2773

All costs associated with an audit conducted pursuant to	2774
division (F) of this section shall be paid by the retirement	2775
system audited.	2776

(G) Provide each member of the council with copies of all	2777
proposed rules submitted to the council pursuant to sections	2778
145.09, 742.10, 3307.04, 3309.04, and 5505.04 of the Revised Code	2779
and submit any recommendations to the joint committee on agency	2780
rule review.	2781

Sec. 311.01. (A) A sheriff shall be elected quadrennially in	2782
each county. A sheriff shall hold office for a term of four years,	2783
beginning on the first Monday of January next after the sheriff's	2784
election.	2785

(B) Except as otherwise provided in this section, no person	2786
is eligible to be a candidate for sheriff, and no person shall be	2787
elected or appointed to the office of sheriff, unless that person	2788
meets all of the following requirements:	2789

(1) The person is a citizen of the United States.

2790

(2) The person has been a resident of the county in which the	2791
person is a candidate for or is appointed to the office of sheriff	2792
for at least one year immediately prior to the qualification date.	2793

(3) The person has the qualifications of an elector as	2794
specified in section 3503.01 of the Revised Code and has complied	2795
with all applicable election laws.	2796

(4) The person has been awarded a high school diploma or a	2797
certificate of high school equivalence issued for achievement of	2798
specified minimum scores on the general educational development	2799
test of the American council on education.	2800

(5) The person has not been convicted of or pleaded guilty to	2801
a felony or any offense involving moral turpitude under the laws	2802
of this or any other state or the United States, and has not been	2803
convicted of or pleaded guilty to an offense that is a misdemeanor	2804
of the first degree under the laws of this state or an offense	2805
under the laws of any other state or the United States that	2806
carries a penalty that is substantially equivalent to the penalty	2807
for a misdemeanor of the first degree under the laws of this	2808
state.	2809

(6) The person has been fingerprinted and has been the	2810
subject of a search of local, state, and national fingerprint	2811
files to disclose any criminal record. Such fingerprints shall be	2812
taken under the direction of the administrative judge of the court	2813
of common pleas who, prior to the applicable qualification date,	2814
shall notify the board of elections, board of county	2815
commissioners, or county central committee of the proper political	2816
party, as applicable, of the judge's findings.	2817

(7) The person has prepared a complete history of the	2818
person's places of residence for a period of six years immediately	2819
preceding the qualification date and a complete history of the	2820
person's places of employment for a period of six years	2821
immediately preceding the qualification date, indicating the name	2822
and address of each employer and the period of time employed by	2823
that employer. The residence and employment histories shall be	2824
filed with the administrative judge of the court of common pleas	2825
of the county, who shall forward them with the findings under	2826
division (B)(6) of this section to the appropriate board of	2827
elections, board of county commissioners, or county central	2828
committee of the proper political party prior to the applicable	2829
qualification date.	2830

(8) The person meets at least one of the following	2831
conditions:	2832

(a) ~~Has obtained or held, within the four-year period ending~~	2833
~~immediately prior to the qualification date,~~Holds a current valid	2834
~~basic~~ peace officer certificate of training issued by the Ohio	2835
peace officer training commission or has been issued a certificate	2836
of training pursuant to section 5503.05 of the Revised Code~~, and,~~	2837
~~within the four-year period ending immediately prior to the~~	2838
~~qualification date, has been employed as an appointee pursuant to~~	2839
~~section 5503.01 of the Revised Code or as a full-time peace~~	2840
~~officer as defined in section 109.71 of the Revised Code~~	2841
~~performing duties related to the enforcement of statutes,~~	2842
~~ordinances, or codes~~;	2843

(b) ~~Has obtained or held, within the three-year period ending~~	2844
~~immediately prior to the qualification date, a valid basic peace~~	2845
~~officer certificate of training issued by the Ohio peace officer~~	2846
~~training commission and has been employed for at least the last~~	2847
~~three years prior to the qualification date as a full-time law~~	2848
~~enforcement officer, as defined in division (A)(11) of section~~	2849
~~2901.01 of the Revised Code, performing duties related to the~~	2850
~~enforcement of statutes, ordinances, or codes~~Has been employed	2851
full-time by a law enforcement agency performing duties related to	2852
the enforcement of statutes, ordinances, or codes for a minimum of	2853
thirteen consecutive pay periods within the four-year period prior	2854
to the qualification date. As used in this division, "full-time"	2855
means a minimum of eighty hours of work in a fourteen-day period.	2856

(9) The person meets at least one of the following	2857
conditions:	2858

(a) Has at least two consecutive years of supervisory	2859
experience as a peace officer ~~at the rank of corporal or above, or~~	2860
~~has been appointed pursuant to section 5503.01 of the Revised Code~~	2861
~~and served~~ at the rank of sergeant or above~~, in the five-year~~	2862
~~period ending immediately prior to the qualification date~~;	2863

(b) Has completed ~~satisfactorily at least two years of~~	2864
~~post-secondary education or the equivalent in semester or quarter~~	2865
~~hours in~~a bachelor's degree in any field or has an associate	2866
degree in law enforcement or criminal justice from a college or	2867
university authorized to confer degrees by the Ohio board of	2868
regents or the comparable agency of another state in which the	2869
college or university is located ~~or in a school that holds a~~	2870
~~certificate of registration issued by the state board of career~~	2871
~~colleges and schools under Chapter 3332. of the Revised Code~~.	2872

(C) Persons who meet the requirements of division (B) of this	2873
section, except the requirement of division (B)(2) of this	2874
section, may take all actions otherwise necessary to comply with	2875
division (B) of this section. If, on the applicable qualification	2876
date, no person has met all the requirements of division (B) of	2877
this section, then persons who have complied with and meet the	2878
requirements of division (B) of this section, except the	2879
requirement of division (B)(2) of this section, shall be	2880
considered qualified candidates under division (B) of this	2881
section.	2882

(D) Newly elected sheriffs shall attend a basic training	2883
course conducted by the Ohio peace officer training commission	2884
pursuant to division (A) of section 109.80 of the Revised Code. A	2885
newly elected sheriff shall complete not less than two weeks of	2886
this course before the first Monday in January next after the	2887
sheriff's election. While attending the basic training course, a	2888
newly elected sheriff may, with the approval of the board of	2889
county commissioners, receive compensation, paid for from funds	2890
established by the sheriff's county for this purpose, in the same	2891
manner and amounts as if carrying out the powers and duties of the	2892
office of sheriff.	2893

Appointed sheriffs shall attend the first basic training	2894
course conducted by the Ohio peace officer training commission	2895
pursuant to division (A) of section 109.80 of the Revised Code	2896
within six months following the date of appointment or election to	2897
the office of sheriff. While attending the basic training course,	2898
appointed sheriffs shall receive regular compensation in the same	2899
manner and amounts as if carrying out their regular powers and	2900
duties.	2901

Five days of instruction at the basic training course shall	2902
be considered equal to one week of work. The costs of conducting	2903
the basic training course and the costs of meals, lodging, and	2904
travel of appointed and newly elected sheriffs attending the	2905
course shall be paid from state funds appropriated to the	2906
commission for this purpose.	2907

(E) In each calendar year, each sheriff shall attend and	2908
successfully complete at least sixteen hours of continuing	2909
education approved under division (B) of section 109.80 of the	2910
Revised Code. A sheriff who receives a waiver of the continuing	2911
education requirement from the commission under division (C) of	2912
section 109.80 of the Revised Code because of medical disability	2913
or for other good cause shall complete the requirement at the	2914
earliest time after the disability or cause terminates.	2915

(F)(1) Each person who is a candidate for election to or who	2916
is under consideration for appointment to the office of sheriff	2917
shall swear before the administrative judge of the court of common	2918
pleas as to the truth of any information the person provides to	2919
verify the person's qualifications for the office. A person who	2920
violates this requirement is guilty of falsification under section	2921
2921.13 of the Revised Code.	2922

(2) Each board of elections shall certify whether or not a	2923
candidate for the office of sheriff who has filed a declaration of	2924
candidacy, a statement of candidacy, or a declaration of intent to	2925
be a write-in candidate meets the qualifications specified in	2926
divisions (B) and (C) of this section.	2927

(G) The office of a sheriff who is required to comply with	2928
division (D) or (E) of this section and who fails to successfully	2929
complete the courses pursuant to those divisions is hereby deemed	2930
to be vacant.	2931

(H) As used in this section:

2932

(1) "Qualification date" means the last day on which a	2933
candidate for the office of sheriff can file a declaration of	2934
candidacy, a statement of candidacy, or a declaration of intent to	2935
be a write-in candidate, as applicable, in the case of a primary	2936
election for the office of sheriff; the last day on which a person	2937
may be appointed to fill a vacancy in a party nomination for the	2938
office of sheriff under Chapter 3513. of the Revised Code, in the	2939
case of a vacancy in the office of sheriff; or a date thirty days	2940
after the day on which a vacancy in the office of sheriff occurs,	2941
in the case of an appointment to such a vacancy under section	2942
305.02 of the Revised Code.	2943

(2) "Newly elected sheriff" means a person who did not hold	2944
the office of sheriff of a county on the date the person was	2945
elected sheriff of that county.	2946

Sec. 742.53. (A) As used in this section:

2947

(1) "Long-term care insurance" has the same meaning as in	2948
section 3923.41 of the Revised Code.	2949

(2) "Retirement systems" has the same meaning as in division	2950
(A) of section 145.581 of the Revised Code.	2951

(B) The board of trustees of the Ohio police and fire pension	2952
fund ~~shall~~may establish a program under which members of the	2953
fund, employers on behalf of members, and persons receiving	2954
service or disability pensions or survivor benefits are permitted	2955
to participate in contracts for long-term care insurance.	2956
Participation may include dependents and family members. If a	2957
participant in a contract for long-term care insurance leaves	2958
employment, the participant and the participant's dependents and	2959
family members may, at their election, continue to participate in	2960
a program established under this section in the same manner as if	2961
the participant had not left employment, except that no part of	2962
the cost of the insurance shall be paid by the participant's	2963
former employer.	2964

Such program may be established independently or jointly with	2965
one or more of the other retirement systems.	2966

(C) The fund may enter into an agreement with insurance	2967
companies, health insuring corporations, or government agencies	2968
authorized to do business in the state for issuance of a long-term	2969
care policy or contract. However, prior to entering into such an	2970
agreement with an insurance company or health insuring	2971
corporation, the fund shall request the superintendent of	2972
insurance to certify the financial condition of the company or	2973
corporation. The fund shall not enter into the agreement if,	2974
according to that certification, the company or corporation is	2975
insolvent, is determined by the superintendent to be potentially	2976
unable to fulfill its contractual obligations, or is placed under	2977
an order of rehabilitation or conservation by a court of competent	2978
jurisdiction or under an order of supervision by the	2979
superintendent.	2980

(D) The board ~~shall~~may adopt rules in accordance with	2981
section 111.15 of the Revised Code governing the program. ~~The~~Any	2982
rules adopted by the board shall establish methods of payment for	2983
participation under this section, which may include establishment	2984
of a payroll deduction plan under section 742.56 of the Revised	2985
Code, deduction of the full premium charged from a person's	2986
service or disability pension or survivor benefit, or any other	2987
method of payment considered appropriate by the board. If the	2988
program is established jointly with one or more of the other	2989
retirement systems, the rules also shall establish the terms and	2990
conditions of such joint participation.	2991

Sec. 742.63. The board of trustees of the Ohio police and	2992
fire pension fund shall adopt rules for the management of the Ohio	2993
public safety officers death benefit fund and for disbursements of	2994
benefits as set forth in this section.	2995

(A) As used in this section:

2996

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

2997

(a) A member of the Ohio police and fire pension fund,	2998
including a member of the fund who has elected to participate in	2999
the deferred retirement option plan established under section	3000
742.43 of the Revised Code or a member of or contributor to a	3001
police or firemen's relief and pension fund established under	3002
former Chapter 521. or 741. of the Revised Code;	3003

(b) A member of the state highway patrol retirement system,	3004
including a member who is participating in the deferred retirement	3005
option plan established under section 5505.50 of the Revised Code;	3006

(c) A member of the public employees retirement system who at	3007
the time of the member's death was one of the following:	3008

(i) A county sheriff or deputy sheriff;

3009

(ii) A full-time regular police officer in a municipal	3010
corporation or township;	3011

(iii) A full-time regular firefighter employed by the state,	3012
an instrumentality of the state, a municipal corporation, a	3013
township, a joint fire district, or another political subdivision;	3014

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

3015

(v) A full-time law enforcement officer of the department of	3016
natural resources;	3017

(vi) A full-time department of public safety enforcement	3018
agent;	3019

(vii) A full-time law enforcement officer of parks, waterway	3020
lands, or reservoir lands under the control of a municipal	3021
corporation;	3022

(viii) A full-time law enforcement officer of a conservancy	3023
district;	3024

(ix) A correction officer at an institution under the control	3025
of a county, a group of counties, a municipal corporation, or the	3026
department of rehabilitation and correction;	3027

(x) A state university law enforcement officer;

3028

(xi) An investigator, as defined in section 109.541 of the	3029
Revised Code, or an investigator commissioned as a special agent	3030
of the bureau of criminal identification and investigation.	3031

(xii) A drug agent, as defined in section 145.01 of the	3032
Revised Code.	3033

(d) A member of a retirement system operated by a municipal	3034
corporation who at the time of death was a full-time law	3035
enforcement officer of parks, waterway lands, or reservoir lands	3036
under the control of the municipal corporation.	3037

(2) Notwithstanding section 742.01 of the Revised Code, "fire	3038
or police department" includes a fire department of the state or	3039
an instrumentality of the state or of a municipal corporation,	3040
township, joint fire district, or other political subdivision, the	3041
state highway patrol, a county sheriff's office, the security	3042
force of an institution under the control of the department of	3043
rehabilitation and correction, the security force of a jail or	3044
workhouse under the control of a county, group of counties, or	3045
municipal corporation, the security force of a metropolitan,	3046
county, or township park district, the security force of lands	3047
under the control of the department of natural resources,	3048
department of public safety enforcement agents, the security force	3049
of parks, waterway lands, or reservoir lands under the control of	3050
a municipal corporation, the security force of a conservancy	3051
district, the police department of a township or municipal	3052
corporation, and the police force of a state university.	3053

(3) "Firefighter or police officer" includes a state highway	3054
patrol trooper, a county sheriff or deputy sheriff, a correction	3055
officer at an institution under the control of a county, a group	3056
of counties, a municipal corporation, or the department of	3057
rehabilitation and correction, a police officer employed by a	3058
township or municipal corporation, a firefighter employed by the	3059
state, an instrumentality of the state, a municipal corporation, a	3060
township, a joint fire district, or another political subdivision,	3061
a full-time park district ranger or patrol trooper, a full-time	3062
law enforcement officer of the department of natural resources, a	3063
full-time department of public safety enforcement agent, a	3064
full-time law enforcement officer of parks, waterway lands, or	3065
reservoir lands under the control of a municipal corporation, a	3066
full-time law enforcement officer of a conservancy district, and a	3067
state university law enforcement officer.	3068

(4) "Correction officer" includes, in addition to any	3069
correction officer, any correction corporal, sergeant, lieutenant,	3070
or captain, and the equivalents of all such persons.	3071

(5) "A park district ranger or patrol trooper" means a peace	3072
officer commissioned to make arrests, execute warrants, and	3073
preserve the peace upon lands under the control of a board of park	3074
commissioners of a metropolitan, county, or township park	3075
district.	3076

(6) "Metropolitan, county, or township park district" means a	3077
park district created under the authority of Chapter 511. or 1545.	3078
of the Revised Code.	3079

(7) "Conservancy district" means a conservancy district	3080
created under the authority of Chapter 6101. of the Revised Code.	3081

(8) "Law enforcement officer" means an officer commissioned	3082
to make arrests, execute warrants, and preserve the peace upon	3083
lands under the control of the governmental entity granting the	3084
commission.	3085

(9) "Department of natural resources law enforcement officer"	3086
includes a forest officer designated pursuant to section 1503.29	3087
of the Revised Code, a preserve officer designated pursuant to	3088
section 1517.10 of the Revised Code, a wildlife officer designated	3089
pursuant to section 1531.13 of the Revised Code, a park officer	3090
designated pursuant to section 1541.10 of the Revised Code, and a	3091
state watercraft officer designated pursuant to section 1547.521	3092
of the Revised Code.	3093

(10) "Retirement eligibility date" means the last day of the	3094
month in which a deceased member would have first become eligible,	3095
had the member lived, for the retirement pension provided under	3096
section 145.332, Chapter 145., 521., or 741., division (C)(1) of	3097
section 742.37, or division (A)(1) of section 5505.17 of the	3098
Revised Code or provided by a retirement system operated by a	3099
municipal corporation.	3100

(11) "Death benefit amount" means an amount equal to the full	3101
monthly salary received by a deceased member prior to death, minus	3102
an amount equal to the benefit received under section 145.45,	3103
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	3104
received from a retirement system operated by a municipal	3105
corporation, plus any increases in salary that would have been	3106
granted the deceased member.	3107

(12) "Killed in the line of duty" means either of the	3108
following:	3109

(a) Death in the line of duty;

3110

(b) Death from injury sustained in the line of duty,	3111
including heart attack or other fatal injury or illness caused	3112
while in the line of duty.	3113

(B) A spouse of a deceased member shall receive a death	3114
benefit each month equal to the full death benefit amount,	3115
provided that the deceased member was a firefighter or police	3116
officer killed in the line of duty and there are no surviving	3117
children eligible for a benefit under this section. The spouse	3118
shall receive this benefit during the spouse's natural life until	3119
the deceased member's retirement eligibility date, on which date	3120
the benefit provided under this division shall terminate.	3121

(C)(1) If a member killed in the line of duty as a	3122
firefighter or police officer is survived only by a child or	3123
children, the child or children shall receive a benefit each month	3124
equal to the full death benefit amount. If there is more than one	3125
surviving child, the benefit shall be divided equally among these	3126
children.	3127

(2) If the death benefit paid under this division is divided	3128
among two or more surviving children and any of the children	3129
become ineligible to continue receiving a portion of the benefit	3130
as provided in division (H) of this section, the full death	3131
benefit amount shall be paid to the remaining eligible child or	3132
divided among the eligible children so that the benefit paid to	3133
the remaining eligible child or children equals the full death	3134
benefit amount.	3135

(3) Notwithstanding divisions (C)(1) and (2) of this section,	3136
all death benefits paid under this division shall terminate on the	3137
deceased member's retirement eligibility date.	3138

(D) If a member killed in the line of duty as a firefighter	3139
or police officer is survived by both a spouse and a child or	3140
children, the monthly benefit provided shall be as follows:	3141

(1)(a) If there is a surviving spouse and one surviving	3142
child, the spouse shall receive an amount each month equal to	3143
one-half of the full death benefit amount and the child shall	3144
receive an amount equal to one-half of the full death benefit	3145
amount.	3146

(b) If the surviving spouse dies or the child becomes	3147
ineligible as provided in division (H) of this section, the	3148
surviving spouse or child remaining eligible shall receive the	3149
full death benefit amount.	3150

(2)(a) If there is a surviving spouse and more than one	3151
child, the spouse shall receive an amount each month equal to	3152
one-third of the full death benefit amount and the children shall	3153
receive an amount, equally divided among them, equal to two-thirds	3154
of the full death benefit amount.	3155

(b) If a spouse and more than one child each are receiving a	3156
death benefit under division (D)(2)(a) of this section and the	3157
spouse dies, the children shall receive an amount each month,	3158
equally divided among them, equal to the full death benefit	3159
amount.	3160

(c) If a spouse and more than one child each are receiving a	3161
benefit under division (D)(2)(a) of this section and any of the	3162
children becomes ineligible to receive a benefit as provided in	3163
division (H) of this section, the spouse and remaining eligible	3164
child or children shall receive a death benefit as follows:	3165

(i) If there are two or more remaining eligible children, the	3166
spouse shall receive an amount each month equal to one-third of	3167
the full death benefit amount and the children shall receive an	3168
amount each month, equally divided among them, equal to two-thirds	3169
of the full death benefit amount;	3170

(ii) If there is one remaining eligible child, the spouse	3171
shall receive an amount each month equal to one-half of the full	3172
death benefit amount, and the child shall receive an amount each	3173
month equal to one-half of the full death benefit amount.	3174

(d) If a spouse and more than one child each are receiving a	3175
benefit under division (D)(2)(a) of this section and all of the	3176
children become ineligible to receive a benefit as provided in	3177
division (H) of this section, the spouse shall receive the full	3178
death benefit amount.	3179

(3) Notwithstanding divisions (D)(1) and (2) of this section,	3180
death benefits paid under this division to a surviving spouse	3181
shall terminate on the member's retirement eligibility date. Death	3182
benefits paid to a surviving child or children shall terminate on	3183
the deceased member's retirement eligibility date unless earlier	3184
terminated pursuant to division (H) of this section.	3185

(E) If a member, on or after January 1, 1980, is killed in	3186
the line of duty as a firefighter or police officer and is	3187
survived by only a parent or parents dependent upon the member for	3188
support, the parent or parents shall receive an amount each month	3189
equal to the full death benefit amount. If there is more than one	3190
surviving parent dependent upon the deceased member for support,	3191
the death benefit amount shall be divided equally among the	3192
surviving parents. On the death of one of the surviving parents,	3193
the full death benefit amount shall be paid to the other parent.	3194

(F)(1) The following shall receive a monthly death benefit	3195
under this division:	3196

(a) A surviving spouse whose benefits are terminated in	3197
accordance with division (B) or (D)(3) of this section on the	3198
deceased member's retirement eligibility date, or who would	3199
qualify for a benefit under division (B) or (D) of this section	3200
except that the deceased member reached the member's retirement	3201
eligibility date prior to the member's death;	3202

(b) A qualified surviving spouse of a deceased member of or	3203
contributor to a police or firemen's relief and pension fund	3204
established under former Chapter 521. or 741. of the Revised Code	3205
who was a firefighter or police officer killed in the line of	3206
duty.	3207

(2) The monthly death benefit shall be one-half of an amount	3208
equal to the monthly salary received by the deceased member prior	3209
to the member's death, plus any salary increases the deceased	3210
member would have received prior to the member's retirement	3211
eligibility date. The benefit shall terminate on the surviving	3212
spouse's death. A death benefit payable under this division shall	3213
be reduced by an amount equal to any allowance or benefit payable	3214
to the surviving spouse under section 742.3714 of the Revised	3215
Code.	3216

(3) A benefit granted to a surviving spouse under division	3217
(F)(1)(b) of this section shall commence on the first day of the	3218
month immediately following receipt by the board of a completed	3219
application on a form provided by the board and any evidence the	3220
board may require to establish that the deceased spouse was killed	3221
in the line of duty.	3222

(G)(1) If there is not a surviving spouse eligible to receive	3223
a death benefit under division (F) of this section or the	3224
surviving spouse receiving a death benefit under that division	3225
dies, a surviving child or children whose benefits under division	3226
(C) or (D) of this section are or have been terminated pursuant to	3227
division (C)(3) or (D)(3) of this section or who would qualify for	3228
a benefit under division (C) or (D) of this section except that	3229
the deceased member reached the member's retirement eligibility	3230
date prior to the member's death shall receive a monthly death	3231
benefit under this division. The monthly death benefit shall be	3232
one-half of an amount equal to the monthly salary received by the	3233
deceased member prior to the member's death, plus any salary	3234
increases the member would have received prior to the member's	3235
retirement eligibility date. If there is more than one surviving	3236
child, the benefit shall be divided equally among the surviving	3237
children.	3238

(2) If two or more surviving children each are receiving a	3239
benefit under this division and any of those children becomes	3240
ineligible to continue receiving a benefit as provided in division	3241
(H) of this section, the remaining eligible child or children	3242
shall receive an amount equal to one-half of the monthly salary	3243
received by the deceased member prior to death, plus any salary	3244
increases the deceased member would have received prior to the	3245
retirement eligibility date. If there is more than one remaining	3246
eligible child, the benefit shall be divided equally among the	3247
eligible children.	3248

(3) A death benefit, or portion of a death benefit, payable	3249
to a surviving child under this division shall be reduced by an	3250
amount equal to any allowance or benefit payable to that child	3251
under section 742.3714 of the Revised Code, but the reduction in	3252
that child's benefit shall not affect the amount payable to any	3253
other surviving child entitled to a portion of the death benefit.	3254

(H) A death benefit paid to a surviving child under division	3255
(C), (D), or (G) of this section shall terminate on the death of	3256
the child or, unless one of the following is the case, when the	3257
child reaches age eighteen:	3258

(1) The child, because of physical or mental disability, is	3259
unable to provide the child's own support, in which case the death	3260
benefit shall terminate when the disability is removed;	3261

(2) The child is unmarried, under age twenty-two, and a	3262
student in and attending an institution of learning or training	3263
pursuant to a program designed to complete in each school year the	3264
equivalent of at least two-thirds of the full-time curriculum	3265
requirements of the institution, as determined by the trustees of	3266
the fund.	3267

(I) Acceptance of any death benefit under this section does	3268
not prohibit a spouse or child from receiving other benefits	3269
provided under the Ohio police and fire pension fund, the state	3270
highway patrol retirement system, the public employees retirement	3271
system, or a retirement system operated by a municipal	3272
corporation.	3273

(J) No person shall receive a benefit under this section if	3274
any of the following occur:	3275

(1) The person fails to exercise the right to a monthly	3276
survivor benefit under division (A) or (B) of section 145.45,	3277
division (D), (E), or (F) of section 742.37, or division (A)(3),	3278
(4), or ~~(7)~~(6) of section 5505.17 of the Revised Code; to a	3279
monthly survivor benefit from a retirement system operated by a	3280
municipal corporation; or to a retirement allowance under section	3281
742.3714 of the Revised Code.	3282

(2) The member's accumulated contributions under this chapter	3283
or Chapter 145. or 5505. of the Revised Code are refunded unless	3284
the member had been a member of the public employees retirement	3285
system and had fewer than eighteen months of total service credit	3286
at the time of death.	3287

(3) In the case of a full-time park district ranger or patrol	3288
trooper, a full-time law enforcement officer of the department of	3289
natural resources, a full-time law enforcement officer of parks,	3290
waterway lands, or reservoir lands under the control of a	3291
municipal corporation, a full-time law enforcement officer of a	3292
conservancy district, a correction officer at an institution under	3293
the control of a county, group of counties, or municipal	3294
corporation, or a member of a retirement system operated by a	3295
municipal corporation who at the time of the member's death was a	3296
full-time law enforcement officer of parks, waterway lands, or	3297
reservoir lands under the control of the municipal corporation,	3298
the member died prior to April 9, 1981, in the case of a benefit	3299
under division (B), (C), or (D) of this section, or prior to	3300
January 1, 1980, in the case of a benefit under division (E) of	3301
this section.	3302

(4) In the case of a full-time department of public safety	3303
enforcement agent who prior to June 30, 1999, was a liquor control	3304
investigator of the department of public safety, the member died	3305
prior to December 23, 1986;	3306

(5) In the case of a full-time department of public safety	3307
enforcement agent other than an enforcement agent who, prior to	3308
June 30, 1999, was a liquor control investigator, the member died	3309
prior to June 30, 1999.	3310

(K) A surviving spouse whose benefit was terminated prior to	3311
June 30, 1999, due to remarriage shall receive a benefit under	3312
division (B), (D), or (F) of this section beginning on the first	3313
day of the month following receipt by the board of an application	3314
on a form provided by the board. The benefit amount shall be	3315
determined as of that date.	3316

(1) If the benefit will begin prior to the deceased member's	3317
retirement eligibility date, it shall be paid under division (B)	3318
or (D) of this section and shall terminate as provided in those	3319
divisions. A benefit paid to a surviving spouse under division (D)	3320
of this section shall be determined in accordance with that	3321
division, even if benefits paid to surviving children are reduced	3322
as a result.	3323

(2) If the benefit will begin on or after the deceased	3324
member's retirement eligibility date, it shall be paid under	3325
division (F) of this section and shall terminate as provided in	3326
that division. A benefit paid to a surviving spouse under division	3327
(F) of this section shall be determined in accordance with that	3328
division, even if benefits paid to surviving children are	3329
terminated as a result.	3330

Sec. 3307.04. The general administration and the management	3331
of the state teachers retirement system is hereby vested in the	3332
state teachers retirement board, which shall adopt rules necessary	3333
for the fulfillment of its duties and responsibilities under	3334
Chapter 3307. of the Revised Code. The board shall adopt policies	3335
for the operation of the system, and the investment of funds as	3336
provided by section 3307.15 of the Revised Code, and may authorize	3337
its administrative officers, or committees composed of board	3338
members, to act for the board in accord with such policies ~~and~~	3339
~~subject to subsequent approval by the board~~.	3340

The board may take all appropriate action to avoid payment by	3341
the system or its members of federal or state income taxes on	3342
contributions to the system or amounts earned on such	3343
contributions and to comply with any plan qualification	3344
requirements, including those on distributions, established under	3345
Title 26 of the United States Code.	3346

The attorney general shall prescribe procedures for the	3347
adoption of rules authorized under this chapter, consistent with	3348
the provision of section 111.15 of the Revised Code under which	3349
all rules shall be filed in order to be effective. Such procedures	3350
shall establish methods by which notice of proposed rules is given	3351
to interested parties and rules adopted by the board published and	3352
otherwise made available. When it files a rule with the joint	3353
committee on agency rule review pursuant to section 111.15 of the	3354
Revised Code, the board shall submit to the Ohio retirement study	3355
council a copy of the full text of the rule, and if applicable, a	3356
copy of the rule summary and fiscal analysis required by division	3357
(B) of section 127.18 of the Revised Code.	3358

All rules adopted pursuant to this chapter, prior to August	3359
20, 1976, shall be published and made available to interested	3360
parties by January 1, 1977.	3361

Sec. 3307.35. (A) As used in this section and section	3362
3307.352 of the Revised Code, "other system retirant" means ~~both~~	3363
either of the following:	3364

(1) A member or former member of the public employees	3365
retirement system, Ohio police and fire pension fund, school	3366
employees retirement system, state highway patrol retirement	3367
system, or Cincinnati retirement system who is receiving from a	3368
system of which the retirant is a member or former member age and	3369
service or commuted age and service retirement, a benefit,	3370
allowance, or distribution under a plan established under section	3371
145.81 or 3309.81 of the Revised Code, or a disability benefit;	3372

(2) A person who is participating or has participated in an	3373
alternative retirement plan established under Chapter 3305. of the	3374
Revised Code and is receiving a benefit, allowance, or	3375
distribution under the plan.	3376

(B) Subject to this section and section 3307.353 of the	3377
Revised Code, a superannuate or other system retirant may be	3378
employed as a teacher.	3379

(C) A superannuate or other system retirant employed in	3380
accordance with this section shall contribute to the state	3381
teachers retirement system in accordance with section 3307.26 of	3382
the Revised Code and the employer shall contribute in accordance	3383
with sections 3307.28 and 3307.31 of the Revised Code. Such	3384
contributions shall be received as specified in section 3307.14 of	3385
the Revised Code. A superannuate or other system retirant employed	3386
as a teacher is not a member of the state teachers retirement	3387
system, does not have any of the rights, privileges, or	3388
obligations of membership, except as provided in this section, and	3389
is not eligible to receive health, medical, hospital, or surgical	3390
benefits under section 3307.39 of the Revised Code for employment	3391
subject to this section.	3392

(D) The employer that employs a superannuate or other system	3393
retirant shall notify the state teachers retirement board of the	3394
employment not later than the end of the month in which the	3395
employment commences. Any overpayment of benefits to a	3396
superannuate by the retirement system resulting from an employer's	3397
failure to give timely notice may be charged to the employer and	3398
may be certified and deducted as provided in section 3307.31 of	3399
the Revised Code.	3400

(E) On receipt of notice from an employer that a person who	3401
is an other system retirant has been employed, the state teachers	3402
retirement system shall notify the state retirement system of	3403
which the other system retirant was a member of such employment.	3404

(F) A superannuate or other system retirant who has received	3405
an allowance or benefit for less than two months when employment	3406
subject to this section or section 3305.05 of the Revised Code	3407
commences shall forfeit the allowance or benefit for any month the	3408
superannuate or retirant is employed prior to the expiration of	3409
such period. The allowance or benefit forfeited each month shall	3410
be equal to the monthly amount the superannuate or other system	3411
retirant is eligible to receive under a single lifetime benefit	3412
plan of payment described in division (A) of section 3307.60 of	3413
the Revised Code. Contributions shall be made to the retirement	3414
system from the first day of such employment, but service and	3415
contributions for that period shall not be used in the calculation	3416
of any benefit payable to the superannuate or other system	3417
retirant, and those contributions shall be refunded on the	3418
superannuate's or retirant's death or termination of the	3419
employment. Contributions made on compensation earned after the	3420
expiration of such period shall be used in calculation of the	3421
benefit or payment due under section 3307.352 of the Revised Code.	3422

For purposes of this division, "employment" does not include	3423
uncompensated volunteer work if the position is different from the	3424
superannuate's or other system retirant's position with the	3425
employer by which the superannuate or retirant was employed at the	3426
time of retirement.	3427

(G) On receipt of notice from the Ohio police and fire	3428
pension fund, public employees retirement system, or school	3429
employees retirement system of the re-employment of a	3430
superannuate, the state teachers retirement system shall not pay,	3431
or if paid shall recover, the amount to be forfeited by the	3432
superannuate in accordance with section 145.38, 742.26, or	3433
3309.341 of the Revised Code.	3434

(H) If the disability benefit of an other system retirant	3435
employed under this section is terminated, the retirant shall	3436
become a member of the state teachers retirement system, effective	3437
on the first day of the month next following the termination, with	3438
all the rights, privileges, and obligations of membership. If the	3439
retirant, after the termination of the retirant's disability	3440
benefit, earns two years of service credit under this retirement	3441
system or under the public employees retirement system, Ohio	3442
police and fire pension fund, school employees retirement system,	3443
or state highway patrol retirement system, the retirant's prior	3444
contributions as an other system retirant under this section shall	3445
be included in the retirant's total service credit, as defined in	3446
section 3307.50 of the Revised Code, as a state teachers	3447
retirement system member, and the retirant shall forfeit all	3448
rights and benefits of this section. Not more than one year of	3449
credit may be given for any period of twelve months.	3450

(I) This section does not affect the receipt of benefits by	3451
or eligibility for benefits of any person who on August 20, 1976,	3452
was receiving a disability benefit or service retirement pension	3453
or allowance from a state or municipal retirement system in Ohio	3454
and was a member of any other state or municipal retirement system	3455
of this state.	3456

(J) The state teachers retirement board may make the	3457
necessary rules to carry into effect this section and to prevent	3458
the abuse of the rights and privileges thereunder.	3459

Sec. 3307.39. (A) The state teachers retirement board may	3460
enter into an agreement with insurance companies, health insuring	3461
corporations, or government agencies authorized to do business in	3462
the state for issuance of a policy or contract of health, medical,	3463
hospital, or surgical ~~benefits~~coverage, or any combination	3464
thereof, for those individuals receiving, under the STRS defined	3465
benefit plan, service retirement or a disability or survivor	3466
benefit who subscribe to the plan. Notwithstanding any other	3467
provision of this chapter, the policy or contract may also include	3468
coverage for any eligible individual's spouse and dependent	3469
children and for any of the individual's sponsored dependents as	3470
the board considers appropriate. If all or any portion of the	3471
policy or contract premium is to be paid by any individual	3472
receiving service retirement or a disability or survivor benefit,	3473
the individual shall, by written authorization, instruct the board	3474
to deduct the premium agreed to be paid by the individual to the	3475
companies, corporations, or agencies.	3476

The board may contract for coverage on the basis of part or	3477
all of the cost of the coverage to be paid from appropriate funds	3478
of the state teachers retirement system. The cost paid from the	3479
funds of the system shall be included in the employer's	3480
contribution rate provided by section 3307.28 of the Revised Code.	3481

The board may enter into an agreement under this division for	3482
coverage of recipients of benefits under an STRS defined	3483
contribution plan if the plan selected includes health, medical,	3484
hospital, or surgical ~~benefits~~coverage, or any combination	3485
thereof. The board may contract for coverage on the basis that the	3486
cost of the coverage will be paid by the recipient or by the plan	3487
to which the recipient contributed under this chapter. The board	3488
may offer to recipients plans that provide for different levels of	3489
coverage or for prepayment of the cost of coverage.	3490

The board may provide for self-insurance of risk or level of	3491
risk as set forth in the contract with the companies,	3492
corporations, or agencies, and may provide through the	3493
self-insurance method specific ~~benefits~~coverage as authorized by	3494
the rules of the board.	3495

(B) The board may make a monthly payment to each recipient of	3496
service retirement, or a disability or survivor benefit under the	3497
STRS defined benefit plan who is enrolled in coverage under part B	3498
of the medicare program established under Title XVIII of "The	3499
Social Security Amendments of 1965," 79 Stat. 301 (1965), 42	3500
U.S.C.A. 1395j, as amended, and may make a monthly payment to a	3501
recipient of benefits under an STRS defined contribution plan who	3502
is eligible for that insurance coverage if the monthly payments	3503
are funded through the plan selected by the recipient. The payment	3504
shall be the greater of the following:	3505

(1) Twenty-nine dollars and ninety cents;

3506

(2) An amount determined by the board, which shall not exceed	3507
ninety per cent of the basic premium for the coverage,, except	3508
that the amount shall not exceed the amount paid by the recipient.	3509

At the request of the board, the recipient shall certify the	3510
amount paid by the recipient for coverage described in this	3511
division.	3512

The board shall make all payments under this division	3513
beginning the month following receipt of satisfactory evidence of	3514
the payment for the coverage.	3515

(C) The board shall establish by rule requirements for the	3516
coordination of any coverage,or payment~~, or benefit~~ provided	3517
under this section with any similar coverage,or payment~~, or~~	3518
~~benefit~~ made available to the same individual by the public	3519
employees retirement system, Ohio police and fire pension fund,	3520
school employees retirement system, or state highway patrol	3521
retirement system.	3522

(D) The board shall make all other necessary rules pursuant	3523
to the purpose and intent of this section.	3524

Sec. 3307.41. The right of an individual to a pension, an	3525
annuity, or a retirement allowance itself, the right of an	3526
individual to any optional benefit, or any other right or benefit	3527
accrued or accruing to any individual under this chapter, the	3528
various funds created by section 3307.14 of the Revised Code, and	3529
all moneys, investments, and income from moneys or investments are	3530
exempt from any state tax, except the tax imposed by section	3531
5747.02 of the Revised Code, and are exempt from any county,	3532
municipal, or other local tax, except income taxes imposed	3533
pursuant to section 5748.02, 5748.08, or 5748.09 of the Revised	3534
Code, and, except as provided in sections 3105.171, 3105.65,	3535
3115.32, ~~3119.80, 3119.81, 3121.02, 3121.03, 3123.06,~~ 3307.37,	3536
3307.372, and 3307.373 and Chapters 3119., 3121., 3123., and 3125.	3537
of the Revised Code, shall not be subject to execution,	3538
garnishment, attachment, the operation of bankruptcy or insolvency	3539
laws, or any other process of law whatsoever, and shall be	3540
unassignable except as specifically provided in this chapter or	3541
and sections 3105.171, 3105.65, and 3115.32~~, 3119.80, 3119.81,~~	3542
~~3121.02, 3121.03, and 3123.06~~and Chapters 3119., 3121., 3123.,	3543
and 3125. of the Revised Code.	3544

Sec. 3307.56. (A)(1) Subject to ~~sections~~section 3307.37 ~~and~~	3545
~~3307.561~~ of the Revised Code and except as provided in division	3546
(B)(2) of this section, a member participating in the STRS defined	3547
benefit plan who ceases to be a teacher for any cause other than	3548
death, retirement, receipt of a disability benefit, or current	3549
employment in a position in which the member has elected to	3550
participate in an alternative retirement plan under section	3551
3305.05 or 3305.051 of the Revised Code, upon application, shall	3552
be paid the accumulated contributions standing to the credit of	3553
the member's individual account in the teachers' savings fund plus	3554
an amount calculated in accordance with section 3307.563 of the	3555
Revised Code. If the member or the member's legal representative	3556
cannot be found within ten years after the member ceased making	3557
contributions pursuant to section 3307.26 of the Revised Code, the	3558
accumulated contributions may be transferred to the guarantee fund	3559
and thereafter paid to the member, to the member's beneficiaries,	3560
or to the member's estate, upon proper application.	3561

(2) A member described in division (A)(1) of this section who	3562
is married at the time of application for payment and is eligible	3563
for age and service retirement under section 3307.58 or 3307.59 of	3564
the Revised Code or would be eligible for age and service	3565
retirement under either of those sections but for a forfeiture	3566
ordered under division (A) or (B) of section 2929.192 of the	3567
Revised Code shall submit with the application a written statement	3568
by the member's spouse attesting that the spouse consents to the	3569
payment of the member's accumulated contributions. Consent shall	3570
be valid only if it is signed and witnessed by a notary public. If	3571
the statement is not submitted under this division, the	3572
application shall be considered an application for service	3573
retirement and shall be subject to division (G)(1) of section	3574
3307.60 of the Revised Code.	3575

The state teachers retirement board may waive the requirement	3576
of consent if the spouse is incapacitated or cannot be located, or	3577
for any other reason specified by the board. Consent or waiver is	3578
effective only with regard to the spouse who is the subject of the	3579
consent or waiver.	3580

(B) This division applies to any member who is employed in a	3581
position in which the member has elected under section 3305.05 or	3582
3305.051 of the Revised Code to participate in an alternative	3583
retirement plan and due to the election ceases to be a teacher for	3584
the purposes of that position.	3585

Subject to ~~sections~~section 3307.37 ~~and 3307.561~~ of the	3586
Revised Code, the state teachers retirement system shall do the	3587
following:	3588

(1) On receipt of a certified copy of an election under	3589
section 3305.05 or 3305.051 of the Revised Code, pay, in	3590
accordance with section 3305.052 of the Revised Code, the amount	3591
described in that section to the appropriate provider;	3592

(2) If a member has accumulated contributions, in addition to	3593
those subject to division (B)(1) of this section, standing to the	3594
credit of a member's individual account and is not otherwise in a	3595
position in which the member is considered a teacher for the	3596
purposes of that position, pay, to the provider the member	3597
selected pursuant to section 3305.05 or 3305.051 of the Revised	3598
Code, the accumulated contributions standing to the credit of the	3599
member's individual account in the teachers' saving fund plus an	3600
amount calculated in accordance with section 3307.563 of the	3601
Revised Code. The payment shall be made on the member's	3602
application.	3603

(C) Payment of a member's accumulated contributions under	3604
division (B) of this section cancels the member's total service	3605
credit in the state teachers retirement system. A member whose	3606
accumulated contributions are paid to a provider pursuant to	3607
division (B) of this section is forever barred from claiming or	3608
purchasing service credit under the state teachers retirement	3609
system for the period of employment attributable to those	3610
contributions.	3611

Sec. 3307.561. (A) As used in this section, "other	3612
retirement system" means the public employees retirement system or	3613
the school employees retirement system.	3614

(B) Except as provided in division (C) of this section, on	3615
application, a member of the state teachers retirement system who	3616
is also a member of one or both of the other retirement systems	3617
and has ceased to be a teacher for purposes of this chapter may be	3618
paid, in accordance with section 3307.56 of the Revised Code, the	3619
member's accumulated contributions to the state teachers	3620
retirement system, plus any applicable amount calculated under	3621
section 3307.563 of the Revised Code. This payment does not affect	3622
the member's membership in the other retirement systems or any	3623
right the member may have to a benefit or return of contributions	3624
under those systems.	3625

(C) This section does not apply to a member of one of the	3626
other retirement systems whose employment under that system is	3627
with the public employer that was the employer under the state	3628
teachers retirement system at the time the member's service	3629
subject to this chapter terminated.	3630

Sec. 3307.563. For the purposes of this section, "service	3631
credit" includes only service credit obtained pursuant to sections	3632
3307.53, 3307.71, 3307.712, 3307.72, and 3307.77 of the Revised	3633
Code.	3634

(A) The state teachers retirement system shall add to a	3635
member's accumulated contributions to be paid under section	3636
3307.56 or 3307.562 of the Revised Code an amount paid from the	3637
employers' trust fund equal to one of the following:	3638

(1) If the member has less than three full years of service	3639
credit, an amount equal to interest on the member's accumulated	3640
contributions, compounded annually, at a rate not greater than	3641
four per cent established by the board;	3642

(2) If the member has three or more full years of service	3643
credit, but less than five full years, an amount equal to interest	3644
on the member's accumulated contributions, compounded annually, at	3645
a rate not greater than six per cent established by the board;	3646

(3) If the member has five or more full years of service	3647
credit, the sum of the following amounts:	3648

(a) An amount equal to interest on the member's accumulated	3649
contributions, compounded annually, at a rate not greater than six	3650
per cent established by the board;	3651

(b) An amount equal to fifty per cent of the sum of the	3652
member's contributions under section 3307.26, any contributions	3653
restored under ~~section~~sections 3307.71 and 3307.712 of the	3654
Revised Code to the extent that the amount paid to restore the	3655
credit included amounts received by the member under division	3656
(A)(3)(b) of this section, and contributions deducted or paid	3657
under ~~division (C) of~~ section 3307.77 of the Revised Code plus	3658
interest on that amount at a rate not greater than six per cent	3659
established by the board.	3660

Interest for each year included in the calculation under this	3661
section shall be calculated from the first day of the following	3662
year to the last day of the month preceding payment under section	3663
3307.56 or 3307.562 of the Revised Code.	3664

(B) Notwithstanding sections 3307.56 and 3307.562 of the	3665
Revised Code, neither a member who returned to contributing	3666
service after receiving disability benefits nor the beneficiaries,	3667
survivors, or estate of a deceased member who was granted	3668
disability benefits prior to death is eligible for the payment of	3669
any amount calculated under this section.	3670

Sec. 3307.57. To coordinate and integrate membership in the	3671
state retirement systems, the following provisions apply:	3672

(A) As used in this section:

3673

(1) "Retirement systems" means the public employees	3674
retirement system, state teachers retirement system, and school	3675
employees retirement system.	3676

(2) In addition to the meaning given in section 3307.50 of	3677
the Revised Code, "disability benefit" means "disability benefit"	3678
as defined in sections 145.01 and 3309.01 of the Revised Code;	3679

(3) "Actuarial assumption rate" means the investment rate of	3680
return assumed for projecting assets in the STRS defined benefit	3681
plan.	3682

(4) "Total service credit" means the total credit in all	3683
retirement systems, except that such credit shall not exceed one	3684
year for any period of twelve months.	3685

(5) "Paying system" means the state retirement system in	3686
which the member has the greatest service credit, without	3687
adjustment or, if the member has equal service credit in two or	3688
more retirement systems, the retirement system in which the member	3689
has the greatest total contributions.	3690

(6) "Transferring system" means the state retirement system	3691
transferring a member's contributions and service credit in that	3692
system to the paying system.	3693

(7) "Retention percentage" means five per cent, or a	3694
percentage determined under division (D) of this section, of a	3695
member's earnable salary in the case of a member of the public	3696
employees retirement system or five per cent, or a percentage	3697
determined under division (D) of this section, of a member's	3698
compensation in the case of a member of the state teachers	3699
retirement system or school employees retirement system.	3700

(B) At the option of a member participating in the STRS	3701
defined benefit plan, total contributions and service credit in	3702
all retirement systems, including amounts paid to restore service	3703
credit under sections 145.311, 3307.711, and 3309.261 of the	3704
Revised Code, shall be used in determining ~~the eligibility for~~	3705
benefits. If total contributions and service credit are combined,	3706
the following provisions apply:	3707

(1) Service retirement or a disability benefit is effective	3708
on the first day of the month next following the later of:	3709

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

3710

(b) The attainment of minimum age or service credit for	3711
benefits provided under this section.	3712

(2) ~~"Total service credit" includes the total credit in all~~	3713
~~retirement systems except that such credit shall not exceed one~~	3714
~~year for any period of twelve months.~~	3715

~~(3) Eligibility for a disability benefit shall be determined~~	3716
~~by the~~The board of the ~~state retirement~~paying system ~~that will~~	3717
~~calculate~~shall do both of the following:	3718

(a) Determine a member's eligibility for a retirement or	3719
disability benefit;	3720

(b) Calculate and pay the member's retirement or disability	3721
benefit~~, as provided in division (B)(4) of this section~~. ~~The state~~	3722
~~retirement~~	3723

(3)(a) Each transferring system ~~calculating and paying the~~	3724
~~disability benefit~~in which the member has service credit shall	3725
certify ~~the determination~~ to the ~~board of each other state~~	3726
~~retirement~~paying system ~~in which the member has service credit~~	3727
~~and shall be accepted by that board as sufficient for granting a~~	3728
~~disability benefit.~~	3729

~~(4) The board of the state retirement system in which the~~	3730
~~member had the greatest service credit, without adjustment, shall~~	3731
~~calculate and pay the total benefit. If the member's credit is~~	3732
~~equal in two or more retirement systems, the system having the~~	3733
~~member's largest total contributions shall calculate and pay the~~	3734
~~total benefit.~~	3735

~~(5)~~all of the following:

3736

(i) The service credit earned by the member in the	3737
transferring system;	3738

(ii) The beginning and ending dates of the service credit	3739
period covered by the transferring system;	3740

(iii) Any breaks in service by the member, excluding school	3741
breaks;	3742

(iv) If available, a statement listing the member's monthly	3743
contributions and service credit earned, obtained, or purchased in	3744
the transferring system.	3745

(b) The certification under division (B)(3)(a) of this	3746
section may be reviewed by both the transferring system and paying	3747
system.	3748

(4) In determining the total credit to be used in calculating	3749
a retirement or disability benefit, credit shall not be reduced	3750
below that certified by the transferring system ~~or systems~~	3751
~~transferring credit~~, except ~~that such total combined service~~	3752
~~credit shall not exceed~~as follows:	3753

(a) Not more than one year of credit may be certified by the	3754
transferring system for any one "year" as defined in the ~~statute~~	3755
law governing the transferring system ~~making the calculation~~.	3756

(b) The paying system may reduce any credit certified by the	3757
transferring system that is concurrent with any period of service	3758
credit the member earned from the paying system.	3759

(c) The paying system may reduce any credit certified by the	3760
transferring system if the amount certified, when added to the	3761
paying system's service credit for any one "year" as defined in	3762
the law of the paying system, exceeds one year.	3763

~~(6)~~(5)(a) The ~~retirement~~paying system ~~calculating and paying~~	3764
~~the benefit~~ shall receive from the ~~other~~transferring system or	3765
systems all of the following for each year of service:	3766

(i) The amount contributed by the member, or, in the case of	3767
service credit purchased by the member, paid by the member, that	3768
is attributable to the year of service;	3769

(ii) An amount equal to the lesser of the employer's	3770
contributions made on behalf of the member to the ~~retirement~~	3771
transferring system for that year of service less the retention	3772
percentage or the amount that would have been contributed by the	3773
employer for the service had the member been a member of the state	3774
teachers retirement system at the time the credit was earned less	3775
the retention percentage;	3776

(iii) If applicable, an amount equal to the amount paid on	3777
behalf of the member by an employer under section 145.483 of the	3778
Revised Code;	3779

(iv) Interest compounded annually on the amounts specified in	3780
divisions (B)~~(6)~~(5)(a)(i), (ii), and (iii) of this section at the	3781
lesser of the actuarial assumption rate for that year of the ~~state~~	3782
~~teachers retirement~~paying system or the ~~other retirement~~	3783
transferring system or systems ~~transferring amounts under this~~	3784
~~section~~.	3785

~~(b)~~(6) The annuity rates and mortality tables of the	3786
~~retirement~~paying system ~~making the calculation and paying the~~	3787
~~benefit~~ shall be applicable.	3788

~~(c)~~(7) Deposits made for the purchase of additional income,	3789
with guaranteed interest, upon the member's request, shall be	3790
transferred to the ~~retirement~~paying system ~~paying the regular~~	3791
~~benefit~~. The return upon such deposits shall be that offered by	3792
the ~~retirement~~paying system ~~making the calculation and paying~~	3793
~~the regular benefit~~.	3794

(C) A person receiving a benefit under this section, who	3795
accepts employment amenable to coverage in any retirement system	3796
that participated in the person's combined benefit, shall be	3797
subject to the applicable provisions of law governing such	3798
re-employment.	3799

If a retirant should be paid any amount to which the retirant	3800
is not entitled under the applicable provisions of law governing	3801
such re-employment, such amount shall be recouped by the	3802
~~retirement~~paying system ~~paying such benefit~~ by utilizing any	3803
recovery procedure available under the ~~law of the retirement~~	3804
~~system covering such~~paying system's re-employment provisions.	3805

(D) The retention percentage used in the calculation under	3806
division (B)(5)(a)(ii) of this section shall be reviewed by the	3807
state retirement systems not less than once every five years	3808
beginning after the effective date of this amendment or on request	3809
of any of the systems. If the retirement systems agree, the	3810
retention percentage may be changed if any of the system's	3811
employer contribution rate increases or decreases or the systems	3812
agree that a change is in the interest of one or more of the	3813
systems.	3814

Sec. 3307.58. (A) As used in this section, "qualifying	3815
service credit" means credit earned under section 3307.53 or for	3816
which contributions were made under section 145.47 or 3309.47 of	3817
the Revised Code,; credit restored under section 145.31, 3307.71,	3818
or 3309.26 of the Revised Code,; credit purchased under section	3819
145.302, 3307.752, or 3309.022, or division (D) of section 5505.16	3820
of the Revised Code, or obtained under section 742.521 of the	3821
Revised Code; and credit obtained under section 3307.761,	3822
3307.763, or 3307.765 of the Revised Code.	3823

(B) Any member participating in the STRS defined benefit plan	3824
who has attained the applicable combination of age and service	3825
credit shall be granted service retirement after filing with the	3826
state teachers retirement board a completed application on a form	3827
approved by the board.	3828

(1) Except as provided in division (B)(3) of this section, a	3829
member is eligible to retire under this division if ~~either~~any of	3830
the following is the case:	3831

(a) The member has five or more years of qualifying service	3832
credit and has attained age sixty-five;	3833

(b) The member is applying for service retirement following	3834
termination of a disability benefit received under section 3307.63	3835
or 3307.631 of the Revised Code and has five or more years of	3836
total service credit;	3837

3838

(i) Before August 1, 2015, has thirty or more years of	3839
service credit at any age;	3840

(ii) On or after August 1, 2015, but before August 1, 2017,	3841
has thirty-one or more years of service credit at any age;	3842

(iii) On or after August 1, 2017, but before August 1, 2019,	3843
has thirty-two or more years of service credit at any age;	3844

(iv) On or after August 1, 2019, but before August 1, 2021,	3845
has thirty-three or more years of service credit at any age;	3846

(v) On or after August 1, 2021, but before August 1, 2023,	3847
has thirty-four or more years of service credit at any age;	3848

(vi) On or after August 1, 2023, but before August 1, 2026,	3849
has thirty-five or more years of service credit at any age;	3850

(vii) On or after August 1, 2026, has thirty-five or more	3851
years of service credit and has attained age sixty.	3852

(2) Except as provided in division (B)(3) of this section, a	3853
member is eligible to retire under this division if ~~either~~any of	3854
the following is the case:	3855

(a) The member has five or more years of qualifying service	3856
credit and has attained age sixty;	3857

(b) The member is applying for service retirement following	3858
termination of a disability benefit received under section 3307.63	3859
or 3307.631 of the Revised Code and has five or more years of	3860
total service credit;	3861

3862

(i) Before August 1, 2015, has twenty-five or more years of	3863
service credit and has attained age fifty-five;	3864

(ii) On or after August 1, 2015, but before August 1, 2017,	3865
has twenty-six or more years of service credit and has attained	3866
age fifty-five or has thirty or more years of service credit at	3867
any age;	3868

(iii) On or after August 1, 2017, but before August 1, 2019,	3869
has twenty-seven or more years of service credit and has attained	3870
age fifty-five or has thirty or more years of service credit at	3871
any age;	3872

(iv) On or after after August 1, 2019, but before August 1,	3873
2021, has twenty-eight or more years of service credit and has	3874
attained age fifty-five or has thirty or more years of service	3875
credit at any age;	3876

(v) On or after August 1, 2021, but before August 1, 2023,	3877
has twenty-nine or more years of service credit and has attained	3878
age fifty-five or has thirty or more years of service credit at	3879
any age;	3880

(vi) On or after August 1, 2023, has thirty or more years of	3881
service credit at any age.	3882

(3) The board may adjust the retirement eligibility	3883
requirements of this section if the board's actuary, in its annual	3884
actuarial valuation required by section 3307.51 of the Revised	3885
Code or in other evaluations conducted under that section,	3886
determines that an adjustment does not materially impair the	3887
fiscal integrity of the retirement system or is necessary to	3888
preserve the fiscal integrity of the system.	3889

(C) Service retirement shall be effective onnot earlier than	3890
the first day of the month next following the later of:	3891

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

3892

(2) The attainment of minimum age orand service credit	3893
eligibility for benefits provided under this section.	3894

(D)(1) Except as provided in division (E) of this section,	3895
the annual single lifetime benefit of a member whose retirement	3896
effective date is before August 1, 2013, shall be the greater of	3897
the amounts determined by the member's Ohio service credit	3898
multiplied by one of the following:	3899

(a) Eighty-six dollars;

3900

(b) The sum of the following amounts:

3901

(i) For each of the first thirty years of Ohio service	3902
credit, two and two-tenths per cent of the member's final average	3903
salary or, subject to the limitation described in division	3904
(D)(1)(c) of this section, two and five-tenths per cent of the	3905
member's final average salary if the member has thirty-five or	3906
more years of service credit under section 3307.48, 3307.53,	3907
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3908
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3909
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3910
former section 3307.514 of the Revised Code, section 3307.72 of	3911
the Revised Code earned after July 1, 1978, or any combination of	3912
service credit under those sections;	3913

(ii) For each year or fraction of a year of Ohio service	3914
credit in excess of thirty years, two and two-tenths per cent of	3915
the member's final average salary or, subject to the limitation	3916
described in division (D)(1)(c) of this section, if the member has	3917
more than thirty years service credit under section 3307.48,	3918
3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3919
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3920
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3921
former section 3307.514 of the Revised Code, section 3307.72 of	3922
the Revised Code earned after July 1, 1978, or any combination of	3923
service credit under those sections, the per cent of final average	3924
salary shown in the following schedule for each corresponding year	3925
or fraction of a year of service credit under those sections that	3926
is in excess of thirty years:	3927

Year	Per	Year	Per	3928
of	Cent	of	Cent	3929
Service	for that	Service	for that	3930
Credit	Year	Credit	Year	3931
30.01 - 31.00	2.5%	35.01 - 36.00	3.0%	3932
31.01 - 32.00	2.6	36.01 - 37.00	3.1	3933
32.01 - 33.00	2.7	37.01 - 38.00	3.2	3934
33.01 - 34.00	2.8	38.01 - 39.00	3.3	3935
34.01 - 35.00	2.9			3936

For purposes of this schedule, years of service credit shall be	3937
rounded to the nearest one-hundredth of a year.	3938

(c) For purposes of division (D)(1) of this section, a	3939
percentage of final average salary in excess of two and two-tenths	3940
per cent shall be applied to service credit under section 3307.57	3941
of the Revised Code only if the service credit was established	3942
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3943
3309.021, 3309.022, or 3309.47 of the Revised Code or restored	3944
under section 145.31 or 3309.26 of the Revised Code.	3945

(2)(a) Except as provided in division (E) of this section,	3946
the annual single lifetime benefit of a member whose retirement	3947
effective date is on or after August 1, 2013, but before August 1,	3948
2015, shall be the amount determined by the member's Ohio service	3949
credit multiplied by the sum of the following amounts:	3950

(i) For each of the first thirty years of Ohio service	3951
credit, two and two-tenths per cent of the member's final average	3952
salary or, subject to the limitation described in division	3953
(D)(2)(b) of this section, two and five-tenths per cent of the	3954
member's final average salary if the member has thirty-five or	3955
more years of service credit under section 3307.48, 3307.53,	3956
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3957
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3958
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3959
former section 3307.514 of the Revised Code, section 3307.72 of	3960
the Revised Code earned after July 1, 1978, or any combination of	3961
service credit under those sections;	3962

(ii) For each year or fraction of a year of Ohio service	3963
credit in excess of thirty years, two and two-tenths per cent of	3964
the member's final average salary or, subject to the limitation	3965
described in division (D)(2)(b) of this section, if the member has	3966
more than thirty years service credit under section 3307.48,	3967
3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3968
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3969
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3970
former section 3307.514 of the Revised Code, section 3307.72 of	3971
the Revised Code earned after July 1, 1978, or any combination of	3972
service credit under those sections, the per cent of final average	3973
salary shown in the following schedule for each corresponding year	3974
or fraction of a year of service credit under those sections that	3975
is in excess of thirty years:	3976

Year	Per	Year	Per	3977
of	Cent	of	Cent	3978
Service	for that	Service	for that	3979
Credit	Year	Credit	Year	3980
30.01 - 31.00	2.5%	35.01 - 36.00	3.0%	3981
31.01 - 32.00	2.6	36.01 - 37.00	3.1	3982
32.01 - 33.00	2.7	37.01 - 38.00	3.2	3983
33.01 - 34.00	2.8	38.01 - 39.00	3.3	3984
34.01 - 35.00	2.9			3985

For purposes of this schedule, years of service credit shall be	3986
rounded to the nearest one-hundredth of a year.	3987

(b) For purposes of division (D)(2)(a)(ii) of this section, a	3988
percentage of final average salary in excess of two and two-tenths	3989
per cent shall be applied to service credit under section 3307.57	3990
of the Revised Code only if the service credit was established	3991
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3992
3309.021, 3309.022, or 3309.47 of the Revised Code or restored	3993
under section 145.31 or 3309.26 of the Revised Code.	3994

(3) Except as provided in division (E) of this section, the	3995
annual single lifetime benefit of a member whose retirement	3996
effective date is on or after August 1, 2015, shall be the amount	3997
determined by the member's service credit multiplied by two and	3998
two-tenths per cent of the member's final average salary.	3999

(E)(1) The annual single lifetime benefit of a member	4000
described in division (B)(2) of this section whose service	4001
retirement is effective before August 1, 2015, shall be adjusted	4002
by the greater per cent shown in the following schedule opposite	4003
the member's attained age or Ohio service credit.	4004

Years of	Per Cent		4005
Attained	or	Ohio Service	of Base	4006
Age		Credit	Amount	4007
58		25	75%	4008
59		26	80	4009
60		27	85	4010
61			88	4011
28	90		4012
62			91	4013
63			94	4014
29	95		4015
64			97	4016
65		30 or more	100	4017

(2) The annual single lifetime benefit of a member described	4018
in division (B)(2) of this section whose service retirement is	4019
effective on or after August 1, 2015, shall be reduced by a	4020
percentage determined by the board's actuary for each year the	4021
member retires before attaining the applicable age and service	4022
credit specified in division (B)(1) of this section. The board's	4023
actuary may use an actuarially based average percentage reduction	4024
for this purpose.	4025

(F) Notwithstanding any other provision of this section, on	4026
application, a member who, as of July 1, 2015, has five or more	4027
years of Ohio service credit and has attained age sixty, has	4028
twenty-five or more years of Ohio service credit and has attained	4029
age fifty-five, or has thirty or more years of Ohio service credit	4030
shall be granted service retirement according to former section	4031
3307.58 of the Revised Code as in effect immediately prior to ~~the~~	4032
~~effective date of this amendment~~January 7, 2013. The member's	4033
benefit shall be the greater of the amount the member would have	4034
been eligible for had the member retired effective July 1, 2015,	4035
or the amount determined under division (D)(3) of this section.	4036

(G) The annual single lifetime benefit determined under	4037
division (D) or (E) of this section shall not exceed the lesser of	4038
one hundred per cent of the final average salary or the limit	4039
established by section 415 of the "Internal Revenue Code of 1986,"	4040
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	4041

(H) The annual single lifetime benefit of a member whose	4042
retirement effective date is before August 1, 2013, shall be the	4043
greater of the amounts determined under division (D)(1) or (E)(1)	4044
of this section as appropriate or under this division. The benefit	4045
shall not exceed the lesser of the sum of the following amounts or	4046
the limit established by section 415 of the "Internal Revenue Code	4047
of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:	4048

(1) An annuity with a reserve equal to the member's	4049
accumulated contributions;	4050

(2) A pension equal to the amount in division (H)(1) of this	4051
section;	4052

(3) An additional pension of forty dollars annually	4053
multiplied by the number of years of prior and military service	4054
credit, except years of credit purchased under section 3307.751 or	4055
3307.752 of the Revised Code.	4056

(I) If a member's disability benefit was terminated under	4057
section 3307.48 of the Revised Code and the member's retirement	4058
under this section is effective on the first day of the month	4059
following the last day for which the disability benefit was paid,	4060
the member's annual single lifetime benefit determined under	4061
division (D) or (E) of this section shall be increased by a	4062
percentage equal to the total of any percentage increases the	4063
member received under section 3307.67 of the Revised Code, plus	4064
any additional amount the member received under this chapter while	4065
receiving the disability benefit. The increase shall be based on	4066
the plan of payment selected by the member under section 3307.60	4067
of the Revised Code. However, the benefit used to calculate any	4068
future increases under section 3307.67 of the Revised Code shall	4069
be based on the plan of payment selected by the member, plus any	4070
additional amount added to the benefit determined under this	4071
division that established a new base benefit to the member.	4072

(J) Benefits determined under this section shall be paid as	4073
provided in section 3307.60 of the Revised Code.	4074

Sec. 3307.62. As used in this section, "qualifying service	4075
credit" has the same meaning as in section 3307.58 of the Revised	4076
Code.	4077

(A) The state teachers retirement system shall provide	4078
disability coverage to each member participating in the STRS	4079
defined benefit plan who meets either of the following:	4080

(1) If the member ~~earned~~had service credit ~~before July 1~~on	4081
account on June 30, 2013, has at least five years of qualifying	4082
service credit;	4083

(2) If the member did not ~~earn~~have any service credit ~~before~~	4084
~~July 1~~on account on June 30, 2013, has at least ten years of	4085
qualifying service credit.	4086

Not later than October 16, 1992, the state teachers	4087
retirement board shall give each person who is a member on July	4088
29, 1992, the opportunity to elect disability coverage either	4089
under former section 3307.43 of the Revised Code or under former	4090
section 3307.431 of the Revised Code. The board shall mail notice	4091
of the election, accompanied by an explanation of the coverage	4092
under each of the Revised Code sections and a form on which the	4093
election is to be made, to each member at the member's last known	4094
address. The board shall also provide the explanation and form to	4095
any member on the member's request.	4096

Regardless of whether the member actually receives notice of	4097
the right to make an election, a member who fails to file a valid	4098
election under this section shall be considered to have elected	4099
disability coverage under section 3307.63 of the Revised Code. To	4100
be valid, an election must be made on the form provided by the	4101
board, signed by the member, and filed with the board not later	4102
than one hundred eighty days after the date the notice was mailed,	4103
or, in the case of a form provided at the request of a member, a	4104
date specified by rule of the board. Once made, an election is	4105
irrevocable, but if the member ceases to be a member of the	4106
system, the election is void. If a person who makes an election	4107
under this section also makes an election under section 145.35 or	4108
3309.39 of the Revised Code, the election made for the system that	4109
pays a disability benefit to that person shall govern the benefit.	4110

Disability coverage shall be provided under section 3307.631	4111
of the Revised Code for persons who become members after July 29,	4112
1992, and for members who elect under this division to be covered	4113
under section 3307.631 of the Revised Code.	4114

The board may adopt rules governing elections made under this	4115
division.	4116

(B) Application for a disability benefit may be made by a	4117
member, by a person acting in the member's behalf, or by the	4118
member's employer and if the member has disability coverage under	4119
division (A) of this section.	4120

The application for a disability benefit shall be made on a	4121
form approved by the board. The benefit payable to any member	4122
whose application is approved shall become effective on the first	4123
day of the month next following the later of the following:	4124

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

4125

(2) The ~~attainment of eligibility~~date on which the member's	4126
most recent application for a disability benefit was received by	4127
the board.	4128

(C) Medical examination of the member shall be conducted by a	4129
competent, disinterested physician or physicians selected by the	4130
board to determine whether the member is mentally or physically	4131
incapacitated for the performance of duty by a disabling	4132
condition, either permanent or presumed to be permanent for twelve	4133
continuous months following the filing of an application. The	4134
disability must have occurred since last becoming a member, or it	4135
must have increased since last becoming a member to such an extent	4136
as to make the disability permanent or presumably permanent for	4137
twelve continuous months following the filing of an application.	4138

(D) Application for a disability benefit must be made within	4139
a two-year period from the date the member's contributing service	4140
terminated, unless the board determines that the member's medical	4141
records demonstrate conclusively that at the time the period	4142
expired the member was physically or mentally incapacitated and	4143
unable to make application, except that if the member did not ~~earn~~	4144
have any service credit ~~before July 1~~on account on June 30, 2013,	4145
application must be made within a one-year period from the date	4146
contributing service terminated. Application may not be made by	4147
any person receiving service retirement benefits under section	4148
3307.58 or 3307.59 of the Revised Code or any person whose	4149
accumulated contributions standing to the credit of the person's	4150
individual account in the teachers' savings fund have been paid	4151
under section 3307.56 of the Revised Code.	4152

(E) If the physician or physicians determine that the member	4153
qualifies for a disability benefit, the board concurs with the	4154
determination, and the member agrees to medical treatment as	4155
specified in division (G) of this section, the member shall	4156
receive a disability benefit under section 3307.63 or 3307.631 of	4157
the Revised Code. If such physician or physicians determine that	4158
the member does not qualify for a disability benefit, the report	4159
of the examiner or examiners shall be evaluated by a board of	4160
medical review composed of at least three physicians appointed by	4161
the retirement board.	4162

(F) The state teachers retirement board shall render an order	4163
determining whether or not the applicant shall be granted a	4164
disability benefit. Notification to the applicant shall be issued,	4165
and upon the request of an applicant who is denied a disability	4166
benefit, a hearing or appeal relative to such order shall be	4167
conducted in accordance with procedures established by the	4168
retirement board.	4169

(G) The state teachers retirement board shall adopt rules	4170
requiring each disability benefit recipient, as a condition of	4171
continuing to receive a disability benefit, to agree in writing to	4172
obtain any medical treatment recommended by the board's physician	4173
and submit medical reports regarding the treatment. If the board	4174
determines that a disability benefit recipient is not obtaining	4175
the medical treatment or the board does not receive a required	4176
medical report, the disability benefit shall be suspended until	4177
the treatment is obtained, the report is received by the board, or	4178
the board's physician certifies that the treatment is no longer	4179
helpful or advisable. Should the recipient's failure to obtain	4180
treatment or submit a medical report continue for one year, the	4181
recipient's right to the disability benefit shall be terminated as	4182
of the effective date of the original suspension.	4183

(H) If an employer files an application for a disability	4184
benefit as a result of a member having been separated from service	4185
because the member is considered to be incapacitated for the	4186
performance of duty, and the board denies the disability benefit,	4187
the board shall so certify to the employer and the employer shall	4188
restore the member to the member's previous position and salary or	4189
to a similar position and salary.	4190

(I) The recipient of a disability allowance under section	4191
3307.631 of the Revised Code whose allowance terminates under	4192
division (C)(3) of that section due to age is not eligible to do	4193
either of the following:	4194

(1) Retire on disability under section 3307.63 of the Revised	4195
Code;	4196

(2) Receive a disability allowance under section 3307.631 of	4197
the Revised Code.	4198

Sec. 3307.66. (A) As used in this section:

4199

(1) "Physically or mentally incompetent" means incapable of	4200
earning a living because of a physically or mentally disabling	4201
condition. Physical or mental incompetency may be determined by a	4202
court or by a doctor of medicine or osteopathic medicine appointed	4203
by the state teachers retirement board.	4204

(2) "Qualifying service credit" has the same meaning as in	4205
section 3307.58 of the Revised Code.	4206

(B) For the purposes of this section:

4207

(1) A qualified spouse is the surviving spouse of a deceased	4208
member of the state teachers retirement system participating in	4209
the STRS defined benefit plan who is one of the following:	4210

(a) Sixty-two years of age or older or any age if the	4211
deceased member had ten or more years of Ohio service credit;	4212

(b) Caring for a qualified child;

4213

(c) Adjudged physically or mentally incompetent at the time	4214
of the member's death and has remained continuously incompetent;	4215

(d) Any age if the deceased member was eligible for a service	4216
retirement allowance as provided in section 3307.58 of the Revised	4217
Code and the surviving spouse elects to receive a benefit under	4218
division (C)(1) of this section.	4219

(2) A qualified child is a person who is the child of a	4220
deceased member participating in the STRS defined benefit plan to	4221
whom both of the following apply:	4222

(a) Never married;

4223

(b) Meets one of the following age-related requirements:

4224

(i) Is under age eighteen;

4225

(ii) Is under age twenty-two if attending an institution of	4226
learning or training pursuant to a program designed to complete in	4227
each school year the equivalent of at least two-thirds of the	4228
full-time curriculum requirements of such institution and as	4229
further determined by board policy;	4230

(iii) Is any age if adjudged physically or mentally	4231
incompetent, if the person became incompetent prior to attainment	4232
of age eighteen or prior to age twenty-two if attending an	4233
institution of learning or training described in division	4234
(B)(2)(b)(ii) of this section, and has remained continuously	4235
incompetent.	4236

(3) A qualified parent is a dependent parent of a deceased	4237
member participating in the STRS defined benefit plan who is age	4238
sixty-five or older.	4239

(4) A person is a "qualified survivor" if the person	4240
qualifies as a surviving spouse, child, or dependent parent.	4241

(C) Except as provided in division (G)(1) of this section, in	4242
lieu of accepting the payment of the accumulated account of a	4243
member participating in the STRS defined benefit plan who dies	4244
before service retirement, a beneficiary, as determined in section	4245
3307.562 of the Revised Code, may elect to forfeit the accumulated	4246
account and to substitute benefits under this division.	4247

(1) If a deceased member was eligible for a service	4248
retirement allowance as provided in section 3307.58 or 3307.59 of	4249
the Revised Code, a surviving spouse or an individual designated	4250
as the member's sole beneficiary pursuant to division (B) of	4251
section 3307.562 of the Revised Code who was a qualified child or	4252
dependent parent of the member or received one-half or more of	4253
support from the member during the twelve-month period preceding	4254
the member's death may elect to receive a monthly benefit computed	4255
as the joint-survivor allowance designated as option 1 in section	4256
3307.60 of the Revised Code, which the member would have received	4257
had the member retired on the last day of the month of death and	4258
had the member at that time selected such joint-survivor plan.	4259

(2)(a) A surviving spouse or other qualified survivor may	4260
elect to receive monthly benefits under division (C)(2) of this	4261
section if any of the following apply:	4262

(i) The deceased member ~~earned~~had service credit ~~before July~~	4263
1on account on June 30, 2013, and had completed at least one and	4264
one-half years of qualifying service credit, with at least	4265
one-quarter year of qualifying service credit within the two and	4266
one-half years prior to the date of death, or, if the member ~~had~~	4267
did not ~~earned~~have service credit ~~before July 1~~on account on	4268
June 30, 2013, had completed at least five years of qualifying	4269
service credit and died not later than one year after the date	4270
contributing service terminated.	4271

(ii) The member was receiving at the time of death a	4272
disability benefit as provided in section 3307.63 or 3307.631 of	4273
the Revised Code.	4274

(iii) The member was receiving, within twelve months prior to	4275
the date of death, a disability benefit as provided in section	4276
3307.63 or 3307.631 of the Revised Code and was contributing under	4277
this chapter or Chapter 145. or 3309. of the Revised Code at the	4278
time of death.	4279

(b) The surviving spouse or other qualified survivor shall	4280
elect one of the following methods of calculating benefits elected	4281
under division (C)(2) of this section, which shall, except as	4282
provided in division (G)(1) of this section, remain in effect	4283
without regard to any change in the number of qualified survivors:	4284

		Or	4285
(i) Number	Annual benefit as a	Monthly benefit	4286
of qualified	per cent of member's	shall not be	4287
survivors	final average salary	less than	4288

1	25%	$ 96	4289
2	40	186	4290
3	50	236	4291
4	55	236	4292
5 or more	60	236	4293

	Annual benefit as a	4294
	per cent of member's	4295
(ii) Years of service	final average salary	4296

20	29%	4297
21	33	4298
22	37	4299
23	41	4300
24	45	4301
25	48	4302
26	51	4303
27	54	4304
28	57	4305
29 or more	60	4306

(3)(a) If at the time of death the deceased member was	4307
receiving a disability benefit under section 3307.63 or 3307.631	4308
of the Revised Code, the benefit elected under division (C)(1) or	4309
(2) of this section shall be increased by a percentage equal to	4310
the total of any percentage increases the member received under	4311
section 3307.67 of the Revised Code, plus any additional amount	4312
the member received under this chapter while receiving the	4313
disability benefit. The increase shall be based on the benefit	4314
determined under division (C)(1) or (2) of this section. However,	4315
the benefit used to calculate any future increases under section	4316
3307.67 of the Revised Code shall be the benefit determined under	4317
division (C)(1) or (2) of this section.	4318

(b) If eligibility for a benefit under division (C)(1) or (2)	4319
of this section is not established until more than one year after	4320
the member's death, the annual benefit shall be increased by a	4321
percentage equal to the total of the percentage increases that	4322
would have been made under section 3307.67 of the Revised Code,	4323
plus any additional amount that would have been paid under this	4324
chapter had the benefit begun in the year in which the member	4325
died. However, the benefit used to calculate any future increases	4326
under section 3307.67 of the Revised Code shall be the benefit	4327
determined under division (C)(1) or (2) of this section, plus any	4328
additional amounts added to the benefit determined under this	4329
division that established a new base benefit to the deceased	4330
member.	4331

(D) If a benefit is calculated pursuant to division	4332
(C)(2)(b)(i) of this section, benefits to a surviving spouse shall	4333
be paid in the amount determined for the first qualifying survivor	4334
in division (C)(2)(b)(i) of this section, but shall not be less	4335
than one hundred six dollars per month if the deceased member had	4336
ten or more years of qualifying service credit. All other	4337
qualifying survivors shall share equally in the benefit or	4338
remaining portion thereof.	4339

If a benefit is calculated pursuant to division (C)(2)(b)(ii)	4340
of this section and is payable to more than one qualified	4341
survivor, the benefit shall be apportioned equally among the	4342
qualified survivors, except that if there is a surviving spouse,	4343
the portion of the benefit allocated to the surviving spouse shall	4344
be as follows:	4345

Number of		4346
survivors	Spouse's share of total benefit	4347
2	62.5%	4348
3	50.0%	4349
4	45.45%	4350
5 or more	41.67%	4351

(E) A qualified survivor shall file with the board an	4352
application for benefits payable under this section. Payments	4353
shall begin on whichever of the following applies:	4354

(1) If application is received not later than one year after	4355
the date of the member's death, benefits shall begin on the first	4356
day of the month following the date of death.	4357

(2) If application is received later than one year from the	4358
date of death, benefits shall begin on the first day of the month	4359
immediately following receipt of application by the board.	4360

Benefits to a qualified survivor shall terminate upon a first	4361
marriage, abandonment, or adoption. The termination of benefits is	4362
effective on the first day of the month following the day the	4363
person ceases to be a qualified survivor. Benefits to a deceased	4364
member's surviving spouse that were terminated under a former	4365
version of this section that required termination due to	4366
remarriage and were not resumed prior to the effective date of	4367
this amendment shall resume on the first day of the month	4368
immediately following receipt by the board of an application on a	4369
form provided by the board.	4370

Upon the death of any subsequent spouse who was a member of	4371
the public employees retirement system, state teachers retirement	4372
system, or school employees retirement system, the surviving	4373
spouse of such member may elect to continue receiving benefits	4374
under this division, or to receive survivor's benefits, based upon	4375
the subsequent spouse's membership in one or more of the systems,	4376
for which such surviving spouse is eligible under this section or	4377
section 145.45 or 3309.45 of the Revised Code. If the surviving	4378
spouse elects to continue receiving benefits under this division,	4379
such election shall not preclude the payment of benefits under	4380
this division to any other qualified survivor.	4381

(F) The beneficiary of a member who is also a member of the	4382
public employees retirement system, or the school employees	4383
retirement system, must forfeit the member's accumulated	4384
contributions in those systems, if the beneficiary elects to	4385
receive a benefit under division (C) of this section. Such benefit	4386
shall be exclusively governed by section 3307.57 of the Revised	4387
Code.	4388

(G)(1) Regardless of whether the member is survived by a	4389
spouse or designated beneficiary, if the state teachers retirement	4390
system receives notice that a deceased member described in	4391
division (C)(1) or (2) of this section has one or more qualified	4392
children, all persons who are qualified survivors under division	4393
(C)(2) of this section shall receive monthly benefits as provided	4394
in division (C)(2) of this section.	4395

If, after determining the monthly benefits to be paid under	4396
division (C)(2) of this section, the system receives notice that	4397
there is a qualified survivor who was not considered when the	4398
determination was made, the system shall, notwithstanding section	4399
3307.42 of the Revised Code, recalculate the monthly benefits with	4400
that qualified survivor included, even if the benefits to	4401
qualified survivors already receiving benefits are reduced as a	4402
result. The benefits shall be calculated as if the qualified	4403
survivor who is the subject of the notice became eligible on the	4404
date the notice was received and shall be paid to qualified	4405
survivors effective on the first day of the first month following	4406
the system's receipt of the notice.	4407

If the system did not receive notice that a deceased member	4408
has one or more qualified children prior to making payment under	4409
section 3307.562 of the Revised Code to a beneficiary as	4410
determined by the system, the payment is a full discharge and	4411
release of the system from any future claims under this section or	4412
section 3307.562 of the Revised Code.	4413

(2) If benefits under division (C)(2) of this section to all	4414
persons, or to all persons other than a surviving spouse or sole	4415
beneficiary, terminate, there are no children under the age of	4416
twenty-two years, and the surviving spouse or beneficiary	4417
qualifies for benefits under division (C)(1) of this section, the	4418
surviving spouse or beneficiary may elect to receive benefits	4419
under division (C)(1) of this section. The benefit shall be	4420
calculated based on the age of the spouse or beneficiary at the	4421
time of the member's death and is effective on the first day of	4422
the month following receipt by the board of an application for	4423
benefits under division (C)(1) of this section.	4424

(H) If the benefits due and paid under division (C) of this	4425
section are in a total amount less than the member's accumulated	4426
account that was transferred from the teachers' savings fund,	4427
school employees retirement fund, and public employees retirement	4428
fund, to the survivors' benefit fund, then the difference between	4429
the total amount of the benefits paid shall be paid to the	4430
beneficiary under section 3307.562 of the Revised Code.	4431

Sec. 3307.70. (A) A member of the state teachers retirement	4432
system who elects to purchase service credit described in section	4433
3307.73, 3307.74, 3307.751, 3307.76, 3307.771, or 3307.78 of the	4434
Revised Code shall do both of the following:	4435

(1) Submit an application to the state teachers retirement	4436
board in a manner or form approved by the board;	4437

(2)(a) If the purchase will be completed not later than	4438
December 31, 2013, for each year, or portion of a year, of credit	4439
purchased, pay to the ~~employees'~~teachers' savings fund the amount	4440
specified by former section 3307.73, 3307.74, 3307.751, 3307.76,	4441
3307.771, or 3307.78 of the Revised Code as the appropriate	4442
section existed immediately before ~~the effective date of this~~	4443
~~section~~January 7, 2013.	4444

(b) If the purchase will not be completed until on or after	4445
January 1, 2014, for each year, or portion of a year, of credit	4446
purchased, pay to the ~~employees'~~teachers' savings fund an amount	4447
specified by the board that is equal to one hundred per cent of	4448
the actuarial liability resulting from the purchase of that year	4449
or portion of a year of credit as determined by an actuary	4450
employed by the board.	4451

(c) If, on ~~the effective date of this amendment~~January 7,	4452
2013, the purchase is being made through a payroll deduction plan	4453
under section 3307.701 of the Revised Code and at least one	4454
deduction has been made, pay to the ~~employees'~~teachers' savings	4455
fund the amount specified by former section 3307.73, 3307.74,	4456
3307.751, 3307.76, 3307.771, or 3307.78 of the Revised Code as the	4457
appropriate section existed immediately before ~~the effective date~~	4458
~~of this section~~January 7, 2013.	4459

(B)(1) A purchase shall be considered completed for purposes	4460
of division (A)(2)(a) of this section only if the member's	4461
application is received by the retirement system as completed not	4462
later than December 31, 2013, and all payments are received by the	4463
retirement system not later than June 30, 2014.	4464

(2) A member purchasing credit through a payroll deduction	4465
plan under division (A)~~(1)~~(2)(c) of this section may pay in a	4466
single payment the balance of the cost of the credit.	4467

(C) Subject to board rules, a member may choose to purchase	4468
only part of any eligible service credit in any one payment.	4469

(D) The board shall adopt rules establishing criteria for	4470
determining eligibility for purchases of service credit and	4471
procedures for purchases of credit under this section.	4472

Any determination of the board under this section shall be	4473
final.	4474

(E) Service credit purchased under this section shall be	4475
included in the member's total service credit.	4476

If a member dies or withdraws from service, any payment made	4477
by the member under this section shall be considered as	4478
accumulated contributions of the member.	4479

Sec. 3307.71. (A)(1) Except as provided in this section,	4480
section 3305.05, or section 3305.051 of the Revised Code, a member	4481
or former member of the state teachers retirement system	4482
participating in the STRS defined benefit plan who has at least	4483
one and one-half years of contributing service credit in this	4484
system, the public employees retirement system, the school	4485
employees retirement system, the Ohio police and fire pension	4486
fund, or the state highway patrol retirement system after the	4487
withdrawal and cancellation of service credit in this system may	4488
restore all or part of such service credit by repayment of the	4489
amount withdrawn. To this amount shall be added interest at a rate	4490
per annum, compounded annually, to be determined by the state	4491
teachers retirement board. Interest shall be payable from the	4492
first of the month of withdrawal through the month of repayment. A	4493

(2) If the accumulated contributions were withdrawn under	4494
section 3307.561 of the Revised Code, service credit may be	4495
restored only if the member or former member accrued one and	4496
one-half years of service credit after the withdrawal and	4497
cancellation of service credit in this system.	4498

(B) A member may choose to purchase only part of such credit	4499
in any one payment. The cost for restoring partial service shall	4500
be calculated as the proportion that it bears to the total cost at	4501
the time of purchase and is subject to the rules established by	4502
the board. If a former member is eligible to buy the service	4503
credit as a member of the Ohio police and fire pension fund, the	4504
state highway patrol retirement system, or the city of Cincinnati	4505
Retirement System, the former member is ineligible to restore that	4506
service credit under this section.	4507

(C) The total payment to restore canceled service credit	4508
shall be credited as follows:	4509

~~(A)~~(1) The amount that equals contributions made pursuant to	4510
section 3307.26 of the Revised Code, plus any interest on the	4511
contributions paid by the member pursuant to this section, to the	4512
member's account in the teachers' savings fund;	4513

~~(B)~~(2) The amount that equals the amount paid under section	4514
3307.563 of the Revised Code, to the employers trust fund;	4515

~~(C)~~(3) The remainder of the payment to restore canceled	4516
service credit, to the guarantee fund.	4517

Sec. 3307.711. (A) A member of the state teachers retirement	4518
system who has at least eighteen months of contributing service	4519
credit in the system, the police and firemen's disability and	4520
pension fund, public employees retirement system, school employees	4521
retirement system, or state highway patrol retirement system, and	4522
is a former member of or no longer contributing to the public	4523
employees retirement system or school employees retirement system	4524
may restore service credit under section 145.31 or 3309.26 of the	4525
Revised Code by making payments pursuant to this section through a	4526
payroll deduction plan established under section 3307.701 of the	4527
Revised Code. A member seeking to restore this service credit	4528
shall notify the state teachers retirement system on a form	4529
approved by the state teachers retirement board. After receiving	4530
the notice, the state teachers retirement system shall request	4531
that the former retirement system calculate under section 145.312	4532
or 3309.262 of the Revised Code the cost to the member to restore	4533
service credit for each year or portion of a year of service for	4534
which the member seeks to restore the service credit. The amount	4535
the former retirement system certifies as the cost of restoring	4536
the service credit, plus interest described in division (B) of	4537
this section, is the cost to the member of restoring the service	4538
credit. On receiving the certification from the former retirement	4539
system, the state teachers retirement system shall notify the	4540
member of the cost.	4541

(B) For each year or portion of a year of service credit	4542
restored under section 145.31 or 3309.26 of the Revised Code, a	4543
member shall pay to the state teachers retirement system the	4544
amount certified by the former retirement system plus interest at	4545
a rate specified by the former retirement system under section	4546
145.312 or 3309.262 of the Revised Code for the period during	4547
which deductions are made under section 3307.701 of the Revised	4548
Code.	4549

(C) The state teachers retirement board shall at least	4550
annually ~~notify~~transmit to the former retirement system ~~that a~~	4551
~~payment~~notice and any payments made to restore service credit	4552
under section 145.31 or 3309.26 of the Revised Code ~~has been made~~.	4553
~~At the time the payment is transferred under division (D) of this~~	4554
~~section, the~~The former retirement system shall restore the	4555
service credit for the year or portion of a year for which the	4556
payment was made.	4557

(D) ~~On application for a payment of accumulated contributions~~	4558
~~or an age and service retirement, disability, or survivor benefit~~	4559
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	4560
~~member who made payments under this section to restore service~~	4561
~~credit in a former retirement system, the state teachers~~	4562
~~retirement system shall pay to the former retirement system an~~	4563
~~amount equal to the total amount paid by the member under this~~	4564
~~section.~~	4565

~~(E)~~ The board shall adopt rules to implement this section.

4566

Sec. 3307.73. (A)~~(1)~~As used in this section, "paying	4567
system" and "transferring system" have the same meanings as in	4568
section 3307.57 of the Revised Code.	4569

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	4570
section, a member of the state teachers retirement system	4571
participating in the STRS defined benefit plan who has at least	4572
eighteen months of contributing service in the system, the public	4573
employees retirement system, or school employees retirement system	4574
who chose to be exempted from membership in one or more of the	4575
systems pursuant to section 145.03, or 3309.23 of the Revised	4576
Code, or former section 3307.25 or 3309.25 of the Revised Code, or	4577
was exempt under section 3307.24 of the Revised Code, may purchase	4578
credit under section 3307.70 of the Revised Code for each year or	4579
portion of a year of service for which the member was exempted.	4580

(2) A member may not purchase credit for service that was	4581
exempted from contribution under section 3307.24 of the Revised	4582
Code and subject to the tax on wages imposed by the "Federal	4583
Insurance Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A.	4584
3101, as amended.	4585

~~(B)~~(C) Credit described in this section shall not exceed one	4586
year of service for any twelve-month period. If the period of	4587
service for which credit is purchasable is concurrent with a	4588
period of service that will be used to calculate a retirement	4589
benefit from this system, the public employees retirement system,	4590
or school employees retirement system, the amount of the credit	4591
shall be adjusted in accordance with rules adopted by the board.	4592

~~(C)~~(D) A member who is also a member of the public employees	4593
retirement system or school employees retirement system shall	4594
purchase credit for any service for which the member exempted the	4595
member's self under section 145.03 or 3309.23 of the Revised Code,	4596
or former section 3307.25 or 3309.25 of the Revised Code, or was	4597
exempt under section 3307.24 of the Revised Code, from the	4598
retirement system in which the member has the greatest number of	4599
years of service credit. If the member receives benefits under	4600
section 3307.57 of the Revised Code, the ~~state retirement~~ system	4601
that ~~determines and pays the retirement benefit~~is the paying	4602
system under that section shall receive from the ~~other~~ system or	4603
systems that are the transferring systems the amounts paid by the	4604
member for purchase of credit for exempt service plus interest at	4605
the actuarial assumption rate of the transferring system ~~paying~~	4606
~~that amount~~. The interest shall be for the period beginning on the	4607
date of the member's last payment for purchase of the credit and	4608
ending on the date of the member's retirement.	4609

Sec. 3309.01. As used in this chapter:

4610

(A) "Employer" or "public employer" means boards of	4611
education, school districts, joint vocational districts, governing	4612
authorities of community schools established under Chapter 3314.	4613
of the Revised Code, a science, technology, engineering, and	4614
mathematics school established under Chapter 3326. of the Revised	4615
Code, educational institutions, technical colleges, state,	4616
municipal, and community colleges, community college branches,	4617
universities, university branches, other educational institutions,	4618
or other agencies within the state by which an employee is	4619
employed and paid, including any organization using federal funds,	4620
provided the federal funds are disbursed by an employer as	4621
determined by the above. In all cases of doubt, the school	4622
employees retirement board shall determine whether any employer is	4623
an employer as defined in this chapter, and its decision shall be	4624
final.	4625

(B) "Employee" means all of the following:

4626

(1) Any person employed by a public employer in a position	4627
for which the person is not required to have a certificate or	4628
license issued pursuant to sections 3319.22 to 3319.31 of the	4629
Revised Code;	4630

(2) Any person who performs a service common to the normal	4631
daily operation of an educational unit even though the person is	4632
employed and paid by one who has contracted with an employer to	4633
perform the service, and the contracting board or educational unit	4634
shall be the employer for the purposes of administering the	4635
provisions of this chapter;	4636

(3) Any person, not a faculty member, employed in any school	4637
or college or other institution wholly controlled and managed, and	4638
wholly or partly supported by the state or any political	4639
subdivision thereof, the board of trustees, or other managing body	4640
of which shall accept the requirements and obligations of this	4641
chapter.	4642

In all cases of doubt, the school employees retirement board	4643
shall determine whether any person is an employee, as defined in	4644
this division, and its decision is final.	4645

(C) "Prior service" means all service rendered prior to	4646
September 1, 1937:	4647

(1) As an employee as defined in division (B) of this	4648
section;	4649

(2) As an employee in a capacity covered by the public	4650
employees retirement system or the state teachers retirement	4651
system;	4652

(3) As an employee of an institution in another state,	4653
service credit for which was procured by a member under the	4654
provisions of section 3309.31 of the Revised Code.	4655

Prior service, for service as an employee in a capacity	4656
covered by the public employees retirement system or the state	4657
teachers retirement system, shall be granted a member under	4658
qualifications identical to the laws and rules applicable to	4659
service credit in those systems.	4660

Prior service shall not be granted any member for service	4661
rendered in a capacity covered by the public employees retirement	4662
system, the state teachers retirement system, and this system in	4663
the event the service credit has, in the respective systems, been	4664
received, waived by exemption, or forfeited by withdrawal of	4665
contributions, except as provided in this chapter.	4666

If a member who has been granted prior service should,	4667
subsequent to September 16, 1957, and before retirement, establish	4668
three years of contributing service in the public employees	4669
retirement system, or one year in the state teachers retirement	4670
system, then the prior service granted shall become, at	4671
retirement, the liability of the other system, if the prior	4672
service or employment was in a capacity that is covered by that	4673
system.	4674

The provisions of this division shall not cancel any prior	4675
service granted a member by the school employees retirement board	4676
prior to August 1, 1959.	4677

(D) "Total service," "total service credit," or "Ohio service	4678
credit" means all contributing service of a member of the school	4679
employees retirement system, and all prior service, computed as	4680
provided in this chapter, and all service established pursuant to	4681
sections 3309.31, 3309.311, and 3309.33 of the Revised Code. In	4682
addition, "total service" includes any period, not in excess of	4683
three years, during which a member was out of service and	4684
receiving benefits from the state insurance fund, provided the	4685
injury or incapacitation was the direct result of school	4686
employment.	4687

(E) "Member" means any employee, except an SERS retirant or	4688
other system retirant as defined in section 3309.341 of the	4689
Revised Code, who has established membership in the school	4690
employees retirement system. "Member" includes a disability	4691
benefit recipient.	4692

(F) "Contributor" means any person who has an account in the	4693
employees' savings fund. When used in the sections listed in	4694
division (B) of section 3309.82 of the Revised Code, "contributor"	4695
includes any person participating in a plan established under	4696
section 3309.81 of the Revised Code.	4697

(G) "Retirant" means any former member who retired and is	4698
receiving a service retirement allowance or commuted service	4699
retirement allowance as provided in this chapter.	4700

(H) "Beneficiary" or "beneficiaries" means the estate or a	4701
person or persons who, as the result of the death of a contributor	4702
or retirant, qualifies for or is receiving some right or benefit	4703
under this chapter.	4704

(I) "Interest," as specified in division (E) of section	4705
3309.60 of the Revised Code, means interest at the rates for the	4706
respective funds and accounts as the school employees retirement	4707
board may determine from time to time, except as follows:	4708

(1) The rate of interest credited on employee contributions	4709
at retirement shall be four per cent per annum, compounded	4710
annually, to and including June 30, 1955; three per cent per	4711
annum, compounded annually, from July 1, 1955, to and including	4712
June 30, 1963; three and one-quarter per cent per annum,	4713
compounded annually, from July 1, 1963, through June 30, 1966; and	4714
thereafter, four per cent per annum compounded annually until a	4715
change in the amount is recommended by the system's actuary and	4716
approved by the retirement board. Subsequent to June 30, 1959, the	4717
retirement board shall discontinue the annual crediting of current	4718
interest on a contributor's accumulated contributions.	4719
Noncrediting of current interest shall not affect the rate of	4720
interest at retirement guaranteed under this division.	4721

(2) In determining the reserve value for purposes of	4722
computing the amount of the contributor's annuity, the rate of	4723
interest used in the annuity values shall be four per cent per	4724
annum through September 30, 1956; three per cent per annum	4725
compounded annually from October 1, 1956, through June 30, 1963;	4726
three and one-quarter per cent per annum compounded annually from	4727
July 1, 1963, through June 30, 1966; and, thereafter, four per	4728
cent per annum compounded annually until a change in the amount is	4729
recommended by the system's actuary and approved by the retirement	4730
board. In the purchase of out-of-state service credit as provided	4731
in section 3309.31 of the Revised Code, and in the purchase of an	4732
additional annuity, as provided in section 3309.47 of the Revised	4733
Code, interest shall be computed and credited to reserves therefor	4734
at the rate the school employees retirement board shall fix as	4735
regular interest thereon.	4736

(J) "Accumulated contributions" means the sum of all amounts	4737
credited to a contributor's account in the employees' savings fund	4738
together with any regular interest credited thereon at the rates	4739
approved by the retirement board prior to retirement.	4740

(K) "Final average salary" means the sum of the annual	4741
compensation for the three highest years of compensation for which	4742
contributions were made by the member, divided by three. If the	4743
member has a partial year of contributing service in the year in	4744
which the member terminates employment and the partial year is at	4745
a rate of compensation that is higher than the rate of	4746
compensation for any one of the highest three years of annual	4747
earnings, the board shall substitute the compensation earned for	4748
the partial year for the compensation earned for a similar	4749
fractional portion in the lowest of the three high years of annual	4750
compensation before dividing by three. If a member has less than	4751
three years of contributing membership, the final average salary	4752
shall be the total compensation divided by the total number of	4753
years, including any fraction of a year, of contributing service.	4754

(L) "Annuity" means payments for life derived from	4755
contributions made by a contributor and paid from the annuity and	4756
pension reserve fund as provided in this chapter. All annuities	4757
shall be paid in twelve equal monthly installments.	4758

(M)(1) "Pension" means annual payments for life derived from	4759
appropriations made by an employer and paid from the employers'	4760
trust fund or the annuity and pension reserve fund. All pensions	4761
shall be paid in twelve equal monthly installments.	4762

(2) "Disability retirement" means retirement as provided in	4763
section 3309.40 of the Revised Code.	4764

(N) "Retirement allowance" means the pension plus the	4765
annuity.	4766

(O)(1) "Benefit" means a payment, other than a retirement	4767
allowance or the annuity paid under section ~~3309.341~~3309.344 of	4768
the Revised Code, payable from the accumulated contributions of	4769
the member or the employer, or both, under this chapter and	4770
includes a disability allowance or disability benefit.	4771

(2) "Disability allowance" means an allowance paid on account	4772
of disability under section 3309.401 of the Revised Code.	4773

(3) "Disability benefit" means a benefit paid as disability	4774
retirement under section 3309.40 of the Revised Code, as a	4775
disability allowance under section 3309.401 of the Revised Code,	4776
or as a disability benefit under section 3309.35 of the Revised	4777
Code.	4778

(P) "Annuity reserve" means the present value, computed upon	4779
the basis of mortality tables adopted by the school employees	4780
retirement board, of all payments to be made on account of any	4781
annuity, or benefit in lieu of any annuity, granted to a retirant.	4782

(Q) "Pension reserve" means the present value, computed upon	4783
the basis of mortality tables adopted by the school employees	4784
retirement board, of all payments to be made on account of any	4785
pension, or benefit in lieu of any pension, granted to a retirant	4786
or a beneficiary.	4787

(R) "Year" means the year beginning the first day of July and	4788
ending with the thirtieth day of June next following.	4789

(S) "Local district pension system" means any school	4790
employees' pension fund created in any school district of the	4791
state prior to September 1, 1937.	4792

(T) "Employer contribution" means the amount paid by an	4793
employer as determined under section 3309.49 of the Revised Code.	4794

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

4795

(1) Exercises any discretionary authority or control with	4796
respect to the management of the system, or with respect to the	4797
management or disposition of its assets;	4798

(2) Renders investment advice for a fee, direct or indirect,	4799
with respect to money or property of the system;	4800

(3) Has any discretionary authority or responsibility in the	4801
administration of the system.	4802

(V)(1) Except as otherwise provided in this division,	4803
"compensation" means all salary, wages, and other earnings paid to	4804
a contributor by reason of employment. The salary, wages, and	4805
other earnings shall be determined prior to determination of the	4806
amount required to be contributed to the employees' savings fund	4807
under section 3309.47 of the Revised Code and without regard to	4808
whether any of the salary, wages, or other earnings are treated as	4809
deferred income for federal income tax purposes.	4810

(2) Compensation does not include any of the following:

4811

(a) Payments for accrued but unused sick leave or personal	4812
leave, including payments made under a plan established pursuant	4813
to section 124.39 of the Revised Code or any other plan	4814
established by the employer;	4815

(b) Payments made for accrued but unused vacation leave,	4816
including payments made pursuant to section 124.13 of the Revised	4817
Code or a plan established by the employer;	4818

(c) Payments made for vacation pay covering concurrent	4819
periods for which other salary or compensation is also paid or	4820
during which benefits are paid under this chapter;	4821

(d) Amounts paid by the employer to provide life insurance,	4822
sickness, accident, endowment, health, medical, hospital, dental,	4823
or surgical coverage, or other insurance for the contributor or	4824
the contributor's family, or amounts paid by the employer to the	4825
contributor in lieu of providing the insurance;	4826

(e) Incidental benefits, including lodging, food, laundry,	4827
parking, or services furnished by the employer, use of the	4828
employer's property or equipment, and reimbursement for	4829
job-related expenses authorized by the employer, including moving	4830
and travel expenses and expenses related to professional	4831
development;	4832

(f) Payments made to or on behalf of a contributor that are	4833
in excess of the annual compensation that may be taken into	4834
account by the retirement system under division (a)(17) of section	4835
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	4836
U.S.C.A. 401(a)(17), as amended. For a contributor who first	4837
establishes membership before July 1, 1996, the annual	4838
compensation that may be taken into account by the retirement	4839
system shall be determined under division (d)(3) of section 13212	4840
of the "Omnibus Budget Reconciliation Act of 1993," Pub. L. No.	4841
103-66, 107 Stat. 472;	4842

(g) Payments made under division (B), (C), or (E) of section	4843
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	4844
No. 3 of the 119th general assembly, Section 3 of Amended	4845
Substitute Senate Bill No. 164 of the 124th general assembly, or	4846
Amended Substitute House Bill No. 405 of the 124th general	4847
assembly;	4848

(h) Anything of value received by the contributor that is	4849
based on or attributable to retirement or an agreement to retire,	4850
except that payments made on or before January 1, 1989, that are	4851
based on or attributable to an agreement to retire shall be	4852
included in compensation if both of the following apply:	4853

(i) The payments are made in accordance with contract	4854
provisions that were in effect prior to January 1, 1986.	4855

(ii) The employer pays the retirement system an amount	4856
specified by the retirement board equal to the additional	4857
liability from the payments.	4858

(3) The retirement board shall determine by rule whether any	4859
form of earnings not enumerated in this division is to be included	4860
in compensation, and its decision shall be final.	4861

(W) "Disability benefit recipient" means a member who is	4862
receiving a disability benefit.	4863

(X) "Actuary" means an individual who satisfies all of the	4864
following requirements:	4865

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

4866

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

4867

(3) Has a minimum of five years' experience in providing	4868
actuarial services to public retirement plans.	4869

Sec. 3309.11. The school employees retirement board shall	4870
elect, from its membership, a ~~chairman~~chairperson, and shall	4871
employ an executive director who shall serve as secretary ~~and who~~	4872
~~may be a member of the board~~.	4873

Sec. 3309.26. (A) The membership of any person in the school	4874
employees retirement system shall terminate if the person	4875
withdraws the person's accumulated contributions, retires on a	4876
retirement allowance as provided in sections 3309.36 and 3309.381	4877
of the Revised Code, or dies, unless otherwise provided in Chapter	4878
3309. of the Revised Code.	4879

(B) A former member with an account in the employees' savings	4880
fund who formerly lost membership shall be reinstated as a member	4881
with all the rights, privileges, and obligations as provided in	4882
Chapter 3309. of the Revised Code.	4883

(C)(1) Except as provided in this section, a member or former	4884
member of the school employees retirement system with at least one	4885
and one-half years of contributing service credit in this system,	4886
the public employees retirement system, the state teachers	4887
retirement system, the Ohio police and fire pension fund, or the	4888
state highway patrol retirement system, subsequent to the	4889
withdrawal of contributions and cancellation of service credit in	4890
this system may restore such service credit by redepositing in the	4891
employees' savings fund the amount withdrawn with interest at a	4892
rate to be determined by the board, compounded annually, from the	4893
first of the month of withdrawal to and including the month of	4894
redeposit. A	4895

(2) If the accumulated contributions were withdrawn under	4896
section 3309.43 of the Revised Code, service credit may be	4897
restored only if the member or former member accrued one and	4898
one-half years of service credit after the withdrawal of the	4899
accumulated contributions.	4900

(D) A member may choose to purchase only part of such credit	4901
in any one payment, subject to board rules. The total payment to	4902
restore cancelled service credit, plus any interest credited	4903
thereto, shall be considered as accumulated contributions of the	4904
member. If a former member is eligible to buy the service credit	4905
as a member of the Ohio police and fire pension fund, the state	4906
highway patrol retirement system, or the city of Cincinnati	4907
retirement system, the former member is ineligible to restore that	4908
service credit under this section.	4909

Sec. 3309.261. (A) A member of the school employees	4910
retirement system who has at least eighteen months of contributing	4911
service credit in the system, the Ohio police and fire pension	4912
fund, public employees retirement system, state teachers	4913
retirement system, or state highway patrol retirement system, and	4914
is a former member of or no longer contributing to the public	4915
employees retirement system or state teachers retirement system	4916
may restore service credit under section 145.31 or 3307.71 of the	4917
Revised Code by making payments pursuant to this section through a	4918
payroll deduction plan established under section 3309.27 of the	4919
Revised Code. A member seeking to restore service credit shall	4920
notify the school employees retirement system on a form approved	4921
by the school employees retirement board. After receiving the	4922
notice, the school employees retirement system shall request that	4923
the former retirement system calculate under section 145.312 or	4924
3307.712 of the Revised Code the cost to the member to restore	4925
service credit for each year or portion of a year of service for	4926
which the member seeks to restore the service credit. The amount	4927
the former retirement system certifies as the cost of restoring	4928
the service credit, plus interest described in division (B) of	4929
this section, is the cost to the member of restoring the service	4930
credit. On receiving the certification from the former retirement	4931
system, the school employees retirement system shall notify the	4932
member of the cost.	4933

(B) For each year or portion of a year of service credit	4934
restored under section 145.31 or 3307.71 of the Revised Code, a	4935
member shall pay to the school employees retirement system the	4936
amount certified by the former retirement system plus interest at	4937
a rate specified by the former retirement system under section	4938
145.312 or 3307.712 of the Revised Code for the period during	4939
which deductions are made under section 3309.27 of the Revised	4940
Code.	4941

(C) The school employees retirement board shall at least	4942
annually ~~notify~~transmit to the former retirement system ~~that a~~	4943
~~payment~~notice and any payments made to restore service credit	4944
under section 145.31 or 3307.71 of the Revised Code ~~has been made~~.	4945
~~At the time the payment is transferred under division (D) of this~~	4946
~~section, the~~The former retirement system shall restore the	4947
service credit for the year or portion of a year for which the	4948
payment was made.	4949

(D) ~~On application for a payment of accumulated contributions~~	4950
~~or an age and service retirement, disability, or survivor benefit~~	4951
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	4952
~~member who made payments under this section to restore service~~	4953
~~credit in a former retirement system, the school employees~~	4954
~~retirement system shall pay to the former retirement system an~~	4955
~~amount equal to the total amount paid by the member under this~~	4956
~~section.~~	4957

~~(E)~~ The board shall adopt rules to implement this section.

4958

Sec. 3309.28. Not later than thirty days after an employee	4959
begins employment, the employer shall file with the school	4960
employees retirement system a detailed statement of the employee's	4961
personal information and ~~all of the employee's previous service as~~	4962
~~an employee or such other service as comes under this chapter or~~	4963
~~Chapter 145., 742., 3307., or 5505. of the Revised Code, and~~ such	4964
other information as the school employees retirement board	4965
requires for the proper operation of the school employees	4966
retirement system.	4967

Sec. 3309.301. (A)~~(1)~~As used in this section, "paying	4968
system" and "transferring system" have the same meanings as in	4969
section 3309.35 of the Revised Code.	4970

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	4971
section, a member of the school employees retirement system with	4972
at least eighteen months of contributing service in the system,	4973
the public employees retirement system, or the state teachers	4974
retirement system who exempted self from membership in one or more	4975
of the systems pursuant to section 145.03 or 3309.23 of the	4976
Revised Code, or former section 3307.25 or 3309.25 of the Revised	4977
Code, or was exempt under section 3307.24 of the Revised Code, may	4978
purchase credit for each year or portion of a year of service for	4979
which the member was exempted.	4980

(2) A member may not purchase credit under this section for	4981
service that was exempted from contribution under section 3309.23	4982
of the Revised Code and subject to the tax on wages imposed by the	4983
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26	4984
U.S.C.A. 3101, as amended.	4985

~~(B)~~(C) Upon receipt of a request from a member eligible to	4986
purchase credit under this section and certification of the	4987
member's service and compensation from the employer for which the	4988
exempt service was performed, the school employees retirement	4989
system shall determine the amount of credit the member is eligible	4990
to purchase in accordance with divisions ~~(B)~~(C)(1) and (2) of this	4991
section.	4992

(1) If the credit to be purchased is for service exempted	4993
under section 3309.23 or former section 3309.25 of the Revised	4994
Code, determine the amount of credit that would have been earned	4995
had the service not been exempt.	4996

(2) If the credit to be purchased is for service exempted	4997
under section 145.03 or 3307.24, or former section 3307.25 of the	4998
Revised Code, request certification from the applicable retirement	4999
system that the service was exempt and the amount of service	5000
credit that would have been earned had the service not been	5001
exempt.	5002

~~(C)~~(D) For each year or portion of a year of credit purchased	5003
under this section, a member shall pay to the retirement system an	5004
amount determined by multiplying the member's compensation for the	5005
twelve months of contributing service preceding the month in which	5006
the member applies to purchase the credit by a percentage rate	5007
established by rule of the school employees retirement board	5008
adopted under division ~~(G)~~(H) of this section.	5009

~~(D)~~(E) Subject to board rules, a member may purchase all or	5010
part of the credit the member is eligible to purchase under this	5011
section in one or more payments. If the member purchases the	5012
credit in more than one payment, compound interest at a rate	5013
specified by rule of the board shall be charged on the balance	5014
remaining after the first payment is made.	5015

~~(E)~~(F) Credit purchasable under this section shall not exceed	5016
one year of service for any twelve-month period. If the period of	5017
service for which credit is purchasable under this section is	5018
concurrent with a period of service that will be used to calculate	5019
a retirement benefit from this system, the public employees	5020
retirement system, or the state teachers retirement system, the	5021
amount of the credit shall be adjusted in accordance with rules	5022
adopted by the school employees retirement board.	5023

A member who is also a member of the public employees	5024
retirement system or the state teachers retirement system shall	5025
purchase credit for any service for which the member exempted self	5026
under section 145.03 or 3309.23 of the Revised Code, or former	5027
section 3307.25 or 3309.25 of the Revised Code, or was exempt	5028
under section 3307.24 of the Revised Code, from the retirement	5029
system in which the member has the greatest number of years of	5030
service credit. If the member receives benefits under section	5031
3309.35 of the Revised Code, the state retirement system that	5032
~~determines and pays the retirement benefit~~is the paying system	5033
under that section shall receive from the ~~other~~ system or systems	5034
that are the transferring systems the amounts paid by the member	5035
for purchase of credit for exempt service plus interest at the	5036
actuarial assumption rate of the transferring system ~~paying that~~	5037
~~amount~~. The interest shall be for the period beginning on the date	5038
of the member's last payment for purchase of the credit and ending	5039
on the date of the member's retirement.	5040

~~(F)~~(G) If a member dies or withdraws from service, any	5041
payment made by the member under this section shall be considered	5042
as accumulated contributions of the member.	5043

~~(G)~~(H) The retirement board shall adopt rules to implement	5044
this section.	5045

Sec. 3309.35. (A) As used in this section:

5046

(1) "State retirement system" means the public employees	5047
retirement system, state teachers retirement system, or school	5048
employees retirement system.	5049

(2) "Total service credit" means all service credit earned in	5050
all state retirement systems, except credit for service subject to	5051
section 3309.341 of the Revised Code. Total service credit shall	5052
not exceed one year of credit for any twelve-month period.	5053

(3) In addition to the meaning given in division (O) of	5054
section 3309.01 of the Revised Code, "disability benefit" means	5055
"disability benefit" as defined in sections 145.01 and 3307.01 of	5056
the Revised Code.	5057

(4) "Paying system" means the state retirement system in	5058
which the member has the greatest service credit, without	5059
adjustment or, if a member who has equal service credit in two or	5060
more retirement systems, the retirement system in which the member	5061
has the greatest total contributions.	5062

(5) "Transferring system" means the state retirement system	5063
transferring a member's contributions and service credit in that	5064
system to the paying system.	5065

(6) "Retention percentage" means five per cent, or a	5066
percentage determined under division (E) of this section, of a	5067
member's earnable salary in the case of a member of the public	5068
employees retirement system or five per cent, or a percentage	5069
determined under division (E) of this section, of a member's	5070
compensation in the case of a member of the state teachers	5071
retirement system or school employees retirement system.	5072

(B) To coordinate and integrate membership in the state	5073
retirement systems, at the option of a member, total contributions	5074
and service credit in all state retirement systems, including	5075
amounts paid to restore service credit under sections 145.311,	5076
3307.711, and 3309.261 of the Revised Code, shall be used in	5077
determining the eligibility and total retirement or disability	5078
benefit payable. When total contributions and service credit are	5079
so combined, the following provisions apply:	5080

(1) Service and commuted service retirement or a disability	5081
benefit is effective no sooner than the first day of the month	5082
next following the last day of employment for which compensation	5083
was paid. If the application is filed after that date, the board	5084
may retire the member on the first day of the month next following	5085
the last day of employment for which compensation was paid.	5086

(2) ~~Eligibility for a disability benefit shall be determined~~	5087
~~by the~~The board of the ~~state retirement~~paying system ~~that will~~	5088
~~calculate~~shall do both of the following:	5089

(a) Determine a member's eligibility for a retirement or	5090
disability benefit;	5091

(b) Calculate and pay the member's retirement or disability	5092
benefit~~, as provided in division (B)(3) of this section~~. ~~The state~~	5093
~~retirement~~	5094

(3)(a) Each transferring system ~~calculating and paying the~~	5095
~~disability benefit~~in which the member has service credit shall	5096
certify ~~the determination~~ to the ~~board of each other state~~	5097
~~retirement~~paying system ~~in which the member has service credit~~	5098
~~and shall be accepted by that board as sufficient for granting a~~	5099
~~disability benefit.~~	5100

~~(3) The board of the state retirement system in which the~~	5101
~~member had the greatest service credit, without adjustment, shall~~	5102
~~calculate and pay the total retirement or disability benefit.~~	5103
~~Where the member's credit is equal in two or more state retirement~~	5104
~~systems, the system having the largest total contributions of the~~	5105
~~member shall calculate and pay the total benefit~~all of the	5106
following:	5107

(i) The service credit earned by the member in the	5108
transferring system;	5109

(ii) The beginning and ending dates of the service credit	5110
period covered by the transferring system;	5111

(iii) Any breaks in service by the member, excluding school	5112
breaks;	5113

(iv) If available, a statement listing the member's monthly	5114
contributions and service credit earned, obtained, or purchased in	5115
the transferring system.	5116

(b) The certification under division (B)(3)(a) of this	5117
section may be reviewed by both the transferring system and paying	5118
system.	5119

(4) In determining the total credit to be used in calculating	5120
a retirement allowance or disability benefit, credit shall not be	5121
reduced below that certified by the system or systems transferring	5122
credit, except ~~that such total combined service credit shall not~~	5123
~~exceed~~as follows:	5124

(a) Not more than one year of credit may be certified by the	5125
transferring system for any one "year" as defined in the law of	5126
the transferring system ~~making the calculation~~.	5127

(b) The paying system may reduce any credit certified by the	5128
transferring system that is concurrent with any period of service	5129
credit the member earned from the paying system.	5130

(c) The paying system may reduce any credit certified by the	5131
transferring system if the amount certified, when added to the	5132
paying system's service credit for any one "year" as defined in	5133
the law of the paying system, exceeds one year.	5134

(5)(a) The ~~state retirement~~paying system ~~calculating and~~	5135
~~paying a retirement or disability benefit~~ shall receive from the	5136
~~other~~transferring system or systems all of the following for each	5137
year of service:	5138

(i) The amount contributed by the member, or, in the case of	5139
service credit purchased by the member, paid by the member, that	5140
is attributable to the year of service;	5141

(ii) An amount equal to the lesser of the employer's	5142
contributions made on behalf of the member to the ~~retirement~~	5143
transferring system for that year of service less the retention	5144
percentage or the amount that would have been contributed by the	5145
employer for the service had the member been a member of the	5146
school employees retirement system at the time the credit was	5147
earned less the retention percentage;	5148

(iii) If applicable, an amount equal to the amount paid on	5149
behalf of the member by an employer under section 145.483 of the	5150
Revised Code;	5151

(iv) Interest compounded annually on the amounts specified in	5152
divisions (B)(5)(a)(i), (ii), and (iii) of this section at the	5153
lesser of the actuarial assumption rate for that year of the	5154
~~school employees retirement~~paying system or the ~~other retirement~~	5155
transferring system or systems ~~transferring amounts under this~~	5156
~~section~~.	5157

(b) The annuity rates and mortality tables of the ~~state~~	5158
~~retirement~~paying system ~~making the calculation and paying the~~	5159
~~benefit~~ shall be exclusively applicable.	5160

(c) Deposits made for the purchase of an additional annuity,	5161
and including guaranteed interest, upon the request of the member,	5162
shall be transferred to the ~~state retirement~~paying system ~~paying~~	5163
~~the retirement or disability benefit~~. The return upon such	5164
deposits shall be that offered by the ~~state retirement~~paying	5165
system ~~making the calculation and paying the retirement or~~	5166
~~disability benefit~~.	5167

(C) A former member receiving a retirement or disability	5168
benefit under this section, who accepts employment amenable to	5169
coverage in any state retirement system that participated in the	5170
member's combined benefit, shall be subject to the applicable	5171
provisions of law governing such re-employment. If a former member	5172
should be paid any amount in a retirement allowance, to which the	5173
former member is not entitled under the applicable provisions of	5174
law governing such re-employment, such amount shall be recovered	5175
by the ~~state retirement~~paying system ~~paying such allowance~~ by	5176
utilizing any recovery procedure available under the ~~code~~	5177
~~provisions of the state retirement system covering such~~paying	5178
system's re-employment provisions.	5179

(D) An SERS retirant or other system retirant, as defined in	5180
section 3309.341 of the Revised Code, is not eligible to receive	5181
any benefit under this section for service subject to section	5182
3309.341 of the Revised Code.	5183

(E) The retention percentage used in the calculation under	5184
division (B)(5)(a)(ii) of this section shall be reviewed by the	5185
state retirement systems not less than once every five years	5186
beginning after the effective date of this amendment or on request	5187
of any of the systems. If the retirement systems agree, the	5188
retention percentage may be changed if any of the system's	5189
employer contribution rate increases or decreases or the systems	5190
agree that a change is in the interest of one or more of the	5191
systems.	5192

Sec. 3309.381. (A) A recipient of a disability allowance	5193
under section 3309.401 of the Revised Code who is subject to	5194
division (C)(3) of that section may make application for	5195
retirement under this section. Retirement shall be effective on	5196
the first day of the first month following the last day for which	5197
the disability allowance is paid.	5198

(B) The annual allowance payable under this section shall	5199
consist of the sum of the amounts determined under divisions	5200
(B)(1) and (2) of this section:	5201

(1) The greater of the following:

5202

(a) An allowance calculated as ~~provided in section 3309.36 of~~	5203
~~the Revised Code~~follows, excluding any period during which the	5204
applicant received a disability benefit under section 3309.401 of	5205
the Revised Code;:	5206

(i) For an applicant who would be eligible to retire under	5207
division (A)(1) of section 3309.34 of the Revised Code, the	5208
allowance shall be calculated under divisions (B)(1)(a) and (B)(2)	5209
of section 3309.36 of the Revised Code;	5210

(ii) For an applicant who would be eligible to retire under	5211
division (A)(2) of section 3309.34 of the Revised Code, the	5212
allowance shall be calculated under divisions (B)(1)(b) and (B)(3)	5213
of section 3309.36 of the Revised Code.	5214

(b) An allowance calculated by multiplying the applicant's	5215
total service credit, including service credit for the last	5216
continuous period during which the applicant received a disability	5217
benefit under section 3309.401 of the Revised Code, by two and	5218
two-tenths per cent of the applicant's final average salary,	5219
except that the allowance shall not exceed forty-five per cent of	5220
the applicant's final average salary.	5221

(2) An amount equal to the additional allowance the recipient	5222
would receive under section 3309.374 of the Revised Code, plus any	5223
other additional amount the recipient would receive under this	5224
chapter, had the recipient retired under section 3309.36 of the	5225
Revised Code effective on the effective date of the recipient's	5226
most recent continuous period of receipt of a disability benefit	5227
under section 3309.401 of the Revised Code.	5228

(C) The allowance calculated under division (B) of this	5229
section, exclusive of any amount added under division (B)(2) of	5230
this section based on section 3309.374 of the Revised Code, shall	5231
be the base for all future additional allowances under section	5232
3309.374 of the Revised Code.	5233

The anniversary date for future additional allowances under	5234
section 3309.374 of the Revised Code shall be the effective date	5235
of the recipient's most recent continuous period of receipt of a	5236
disability benefit under section 3309.401 of the Revised Code.	5237

(D) The retirement allowance determined under this section	5238
shall be paid as provided in section 3309.46 of the Revised Code.	5239

Sec. 3309.42. (A)(1) Subject to ~~sections 3309.43 and~~section	5240
3309.67 of the Revised Code and except as provided in division (B)	5241
of this section, a member who elects to become exempt from	5242
contribution to the school employees retirement system pursuant to	5243
section 3309.23 of the Revised Code, or ceases to be an employee	5244
for any cause other than death, retirement, receipt of a	5245
disability benefit, or current employment in a position in which	5246
the member has elected to participate in an alternative retirement	5247
plan pursuant to section 3305.05 or 3305.051 of the Revised Code,	5248
shall be paid the accumulated contributions standing to the credit	5249
of the member's individual account in the employees' savings fund	5250
upon application and subject to such rules as are established by	5251
the school employees retirement board and provided three months	5252
have elapsed since employment, other than employment exempt from	5253
contribution under division (C) of section 3309.23 of the Revised	5254
Code, ceased.	5255

(2) A member described in division (A)(1) of this section who	5256
is married at the time of application for payment and would be	5257
eligible for age and service retirement under section 3309.34,	5258
3309.36, or 3309.40 of the Revised Code but for a forfeiture	5259
ordered under division (A) or (B) of section 2929.192 of the	5260
Revised Code shall submit with the application a written statement	5261
by the member's spouse attesting that the spouse consents to the	5262
payment of the member's accumulated contributions. Consent shall	5263
be valid only if it is signed and witnessed by a notary public.	5264
The board may waive the requirement of consent if the spouse is	5265
incapacitated or cannot be located, or for any other reason	5266
specified by the board. Consent or waiver is effective only with	5267
regard to the spouse who is the subject of the consent or waiver.	5268

(B) This division applies to any member who is employed in a	5269
position in which the member has elected under section 3305.05 or	5270
3305.051 of the Revised Code to participate in an alternative	5271
retirement plan and due to the election ceases to be an employee	5272
for purposes of that position.	5273

Subject to ~~sections 3309.43 and~~section 3309.67 of the	5274
Revised Code, the school employees retirement system shall do the	5275
following:	5276

(1) On receipt of an election under section 3305.05 or	5277
3305.051 of the Revised Code, pay, in accordance with section	5278
3305.052 of the Revised Code, the amount described in that section	5279
to the appropriate provider;	5280

(2) If a member has accumulated contributions, in addition to	5281
those subject to division (B)(1) of this section, standing to the	5282
credit of the member's individual account and is not otherwise in	5283
a position in which the member is considered an employee for the	5284
purposes of that position, pay, to the provider the member	5285
selected pursuant to section 3305.05 or 3305.051 of the Revised	5286
Code, the accumulated contributions standing to the credit of the	5287
member's individual account in the employees' saving fund. The	5288
payment shall be made on the member's application.	5289

(C) Payment of a member's accumulated contributions under	5290
this section cancels the member's total service credit in the	5291
school employees retirement system. A member whose accumulated	5292
contributions are paid to a provider pursuant to division (B) of	5293
this section is forever barred from claiming or purchasing service	5294
credit under the school employees retirement system for the period	5295
of employment attributable to those contributions.	5296

Sec. 3309.43. (A) As used in this section, "other retirement	5297
system" means the public employees retirement system or the state	5298
teachers retirement system.	5299

(B) Except as provided in division (C) of this section, on	5300
application, a member of the school employees retirement system	5301
who is also a member of one or both of the other retirement	5302
systems and has ceased to be an employee under this chapter may be	5303
paid, in accordance with section 3309.42 of the Revised Code, the	5304
member's accumulated contributions to the school employees	5305
retirement system. This payment does not affect the member's	5306
membership in the other retirement systems or any right the member	5307
may have to a benefit or return of contributions under those	5308
systems.	5309

(C) This section does not apply to a member of one of the	5310
other retirement systems whose employment under that system is	5311
with the public employer that was the employer under the school	5312
employees retirement system at the time the member's service	5313
subject to this chapter terminated.	5314

Sec. 3309.45. Except as provided in division (C)(1) of this	5315
section, in lieu of accepting the payment of the accumulated	5316
account of a member who dies before service retirement, the	5317
beneficiary, as determined in section 3309.44 of the Revised Code,	5318
may elect to forfeit the accumulated account and to substitute	5319
certain other benefits either under division (A) or (B) of this	5320
section.	5321

(A)(1) If a deceased member was eligible for a service	5322
retirement allowance as provided in section 3309.36 or 3309.381 of	5323
the Revised Code, a surviving spouse or other sole dependent	5324
beneficiary may elect to receive a monthly benefit computed as the	5325
joint-survivor allowance designated as "plan D" in section 3309.46	5326
of the Revised Code, which the member would have received had the	5327
member retired on the last day of the month of death and had the	5328
member at that time selected such joint-survivor plan. Payment	5329
shall begin with the month subsequent to the member's death.	5330

(2) Beginning on a date selected by the school employees	5331
retirement board, which shall be not later than July 1, 2004, a	5332
surviving spouse or other sole dependent beneficiary may elect, in	5333
lieu of a monthly payment under division (A)(1) of this section, a	5334
plan of payment consisting of both of the following:	5335

(a) A lump sum in an amount the surviving spouse or other	5336
sole dependent beneficiary designates that constitutes a portion	5337
of the allowance that would be payable under division (A)(1) of	5338
this section;	5339

(b) The remainder of that allowance in monthly payments.

5340

The total amount paid as a lump sum and a monthly benefit	5341
shall be the actuarial equivalent of the amount that would have	5342
been paid had the lump sum not been selected.	5343

The lump sum amount designated by the surviving spouse or	5344
other sole dependent beneficiary under division (A)(2)(a) of this	5345
section shall be not less than six times and not more than	5346
thirty-six times the monthly amount that would be payable to the	5347
surviving spouse or other sole dependent beneficiary under	5348
division (A)(1) of this section and shall not result in a monthly	5349
benefit that is less than fifty per cent of that monthly amount.	5350

(B) If the deceased member had completed at least one and	5351
one-half years of credit for Ohio service, with at least	5352
one-quarter year of Ohio contributing service credit within the	5353
two and one-half years prior to the date of death, or was	5354
receiving at the time of death a disability benefit as provided in	5355
section 3309.40 or 3309.401 of the Revised Code, qualified	5356
survivors who elect to receive monthly benefits shall receive the	5357
greater of the benefits provided in division (B)(1)(a) or (b) as	5358
allocated in accordance with division (B)(5) of this section.	5359

(1)(a) Number		Or	5360
of Qualified		Monthly	5361
survivors	Annual Benefit as a Per	Benefit	5362
affecting	Cent of Decedent's Final	shall not be	5363
the benefit	Average Salary	less than	5364

1	25%	$96	5365
2	40	186	5366
3	50	236	5367
4	55	236	5368
5 or more	60	236	5369

(b) Years of Service

Annual Benefit as a Per Cent of Member's Final Average Salary

5370

20	29%	5371
21	33	5372
22	37	5373
23	41	5374
24	45	5375
25	48	5376
26	51	5377
27	54	5378
28	57	5379
29 or more	60	5380

(2) Benefits shall begin as qualified survivors meet	5381
eligibility requirements as follows:	5382

(a) A qualified spouse is the surviving spouse of the	5383
deceased member who is age sixty-two, or regardless of age if the	5384
deceased member had ten or more years of Ohio service credit, or	5385
regardless of age if caring for a surviving child, or regardless	5386
of age if adjudged physically or mentally incompetent.	5387

(b) A qualified child whose benefit began before ~~the~~	5388
~~effective date of this amendment~~January 7, 2013, is any child of	5389
the deceased member who has never been married and to whom one of	5390
the following applies:	5391

(i) Is under age eighteen, or under age twenty-two if the	5392
child is attending an institution of learning or training pursuant	5393
to a program designed to complete in each school year the	5394
equivalent of at least two-thirds of the full-time curriculum	5395
requirements of such institution and as further determined by	5396
board policy;	5397

(ii) Regardless of age, is adjudged physically or mentally	5398
incompetent if the incompetence existed prior to the member's	5399
death and prior to the child attaining age eighteen, or age	5400
twenty-two if attending an institution described in division	5401
(B)(2)(b)(i) of this section.	5402

(c) A qualified child whose benefit begins on or after ~~the~~	5403
~~effective date of this amendment~~January 7, 2013, is any child of	5404
the deceased member who has never been married and to whom one of	5405
the following applies:	5406

(i) Is under age nineteen;

5407

(ii) Regardless of age, is adjudged physically or mentally	5408
incompetent if the incompetence existed prior to the member's	5409
death and prior to the child attaining age nineteen.	5410

(d) A qualified parent is a dependent parent aged sixty-five	5411
or older.	5412

(3) "Physically or mentally incompetent" as used in this	5413
section may be determined by a court of jurisdiction, or by a	5414
physician appointed by the retirement board. Incapability of	5415
earning a living because of a physically or mentally disabling	5416
condition shall meet the qualifications of this division.	5417

(4) Benefits to a qualified survivor shall terminate upon a	5418
first marriage, abandonment, adoption, or during active military	5419
service. Benefits to a deceased member's surviving spouse that	5420
were terminated under a former version of this section that	5421
required termination due to remarriage and were not resumed prior	5422
to September 16, 1998, shall resume on the first day of the month	5423
immediately following receipt by the board of an application on a	5424
form provided by the board.	5425

Upon the death of any subsequent spouse who was a member of	5426
the public employees retirement system, state teachers retirement	5427
system, or school employees retirement system, the surviving	5428
spouse of such member may elect to continue receiving benefits	5429
under this division, or to receive survivor's benefits, based upon	5430
the subsequent spouse's membership in one or more of the systems,	5431
for which such surviving spouse is eligible under this section or	5432
section 145.45 or 3307.66 of the Revised Code. If the surviving	5433
spouse elects to continue receiving benefits under this division,	5434
such election shall not preclude the payment of benefits under	5435
this division to any other qualified survivor.	5436

Benefits shall begin or resume on the first day of the month	5437
following the attainment of eligibility and shall terminate on the	5438
first day of the month following loss of eligibility.	5439

(5)(a) If a benefit is payable under division (B)(1)(a) of	5440
this section, benefits to a qualified spouse shall be paid in the	5441
amount determined for the first qualifying survivor in division	5442
(B)(1)(a) of this section, but shall not be less than one hundred	5443
six dollars per month if the deceased member had ten or more years	5444
of Ohio service credit. All other qualifying survivors shall share	5445
equally in the benefit or remaining portion thereof.	5446

(b) All qualifying survivors shall share equally in a benefit	5447
payable under division (B)(1)(b) of this section, except that if	5448
there is a surviving spouse, the surviving spouse shall receive no	5449
less than the greater of the amount determined for the first	5450
qualifying survivor in division (B)(1)(a) of this section or one	5451
hundred six dollars per month.	5452

(6) The beneficiary of a member who is also a member of the	5453
public employees retirement system, or of the state teachers	5454
retirement system, must forfeit the member's accumulated	5455
contributions in those systems, if the beneficiary takes a	5456
survivor benefit. Such benefit shall be exclusively governed by	5457
section 3309.35 of the Revised Code.	5458

(C)(1) Regardless of whether the member is survived by a	5459
spouse or designated beneficiary, if the school employees	5460
retirement system receives notice that a deceased member described	5461
in division (A) or (B) of this section has one or more qualified	5462
children, all persons who are qualified survivors under division	5463
(B) of this section shall receive monthly benefits as provided in	5464
division (B) of this section.	5465

If, after determining the monthly benefits to be paid under	5466
division (B) of this section, the system receives notice that	5467
there is a qualified survivor who was not considered when the	5468
determination was made, the system shall, notwithstanding section	5469
3309.661 of the Revised Code, recalculate the monthly benefits	5470
with that qualified survivor included, even if the benefits to	5471
qualified survivors already receiving benefits are reduced as a	5472
result. The benefits shall be calculated as if the qualified	5473
survivor who is the subject of the notice became eligible on the	5474
date the notice was received and shall be paid to qualified	5475
survivors effective on the first day of the first month following	5476
the system's receipt of the notice.	5477

If the retirement system did not receive notice that a	5478
deceased member has one or more qualified children prior to making	5479
payment under section 3309.44 of the Revised Code to a beneficiary	5480
as determined by the retirement system, the payment is a full	5481
discharge and release of the system from any future claims under	5482
this section or section 3309.44 of the Revised Code.	5483

(2) If benefits under division (C)(1) of this section to all	5484
persons, or to all persons other than a surviving spouse or other	5485
sole beneficiary, terminate, there are no qualified children ~~under~~	5486
~~the age of twenty-two years~~, and the surviving spouse or	5487
beneficiary qualifies for benefits under division (A) of this	5488
section, the surviving spouse or beneficiary may elect to receive	5489
benefits under division (A) of this section. Benefits shall be	5490
effective on the first day of the month following receipt by the	5491
board of an application for benefits under division (A) of this	5492
section.	5493

(D) The final average salary used in the calculation of a	5494
benefit payable pursuant to division (A) or (B) of this section to	5495
a survivor or beneficiary of a disability benefit recipient shall	5496
be adjusted for each year between the disability benefit's	5497
effective date and the recipient's date of death by the lesser of	5498
three per cent or the actual average percentage increase in the	5499
consumer price index prepared by the United States bureau of labor	5500
statistics (U.S. City Average for Urban Wage Earners and Clerical	5501
Workers: "All Items 1982-84=100").	5502

(E) If the survivor benefits due and paid under this section	5503
are in a total amount less than the member's accumulated account	5504
that was transferred from the employees' savings fund, the state	5505
teachers retirement fund, and the public employees retirement fund	5506
to the survivors' benefit fund, then the difference between the	5507
total amount of the benefits paid shall be paid to the beneficiary	5508
under section 3309.44 of the Revised Code.	5509

Sec. 3309.49. Each employer shall pay ~~annually~~ to the school	5510
employees retirement system at such times as required by the	5511
school employees retirement board under section 3309.51 of the	5512
Revised Code an amount ~~certified by the secretary~~ that shall be a	5513
certain per cent of the earnable compensation of all employees,	5514
and shall be known as the "employer contribution." The rate per	5515
cent of such contribution shall be fixed by the actuary on the	5516
basis of the actuary's evaluation of the liabilities of the school	5517
employees retirement system, but shall not exceed fourteen per	5518
cent, and shall be approved by the school employees retirement	5519
board. The school employees retirement board may raise the rate	5520
per cent of the contribution to fourteen per cent of the earnable	5521
compensation of all employees. In making such evaluation, the	5522
actuary shall use, as the actuarial assumptions, regular interest	5523
and such mortality and other tables as are adopted by the school	5524
employees retirement board. The actuary shall compute the	5525
percentage of such earnable compensation, to be known as the	5526
"employer rate," required annually to fund the liability for all	5527
allowances, annuities, pensions and other benefits, and any	5528
deficiencies in the various funds, provided for in this chapter,	5529
after deducting therefrom the annuity and other benefits provided	5530
by the contributor's accumulated contributions and deposits or	5531
other applicable moneys.	5532

Sec. 3309.51. (A) Each employer shall pay into the employers'	5533
trust fund, in monthly or ~~less frequent installments~~at such times	5534
as the school employees retirement board requires, an amount	5535
certified by the school employees retirement board, which shall be	5536
as required by Chapter 3309. of the Revised Code.	5537

Payments by school district boards of education to the	5538
employers' trust fund of the school employees retirement system	5539
may be made from the amounts allocated under Chapter 3317. of the	5540
Revised Code prior to their distribution to the individual school	5541
districts. The amount due from each school district may be	5542
certified by the secretary of the system to the superintendent of	5543
public instruction monthly, or at such times as is determined by	5544
the school employees retirement board.	5545

Payments by governing authorities of community schools to the	5546
employers' trust fund of the school employees retirement system	5547
shall be made from the amounts allocated under section 3314.08 of	5548
the Revised Code prior to their distribution to the individual	5549
community schools. The amount due from each community school shall	5550
be certified by the secretary of the system to the superintendent	5551
of public instruction monthly, or at such times as determined by	5552
the school employees retirement board.	5553

Payments by a science, technology, engineering, and	5554
mathematics school to the employers' trust fund of the school	5555
employees retirement system shall be made from the amounts	5556
allocated under section 3326.33 of the Revised Code prior to their	5557
distribution to the school. The amount due from a science,	5558
technology, engineering, and mathematics school shall be certified	5559
by the secretary of the school employees retirement system to the	5560
superintendent of public instruction monthly, or at such times as	5561
determined by the school employees retirement board.	5562

(B) The superintendent shall deduct from the amount allocated	5563
to each community school under section 3314.08 of the Revised	5564
Code, to each school district under Chapter 3317. of the Revised	5565
Code, or to each science, technology, engineering, and mathematics	5566
school under section 3326.33 of the Revised Code the entire	5567
amounts due to the school employees retirement system from such	5568
school or school district upon the certification to the	5569
superintendent by the secretary thereof.	5570

(C) Where an employer fails or has failed or refuses to make	5571
payments to the employers' trust fund, as provided for under	5572
Chapter 3309. of the Revised Code, or fails to pay any penalty	5573
imposed under section 3309.571 of the Revised Code the secretary	5574
of the school employees retirement system may certify to the state	5575
superintendent of public instruction, monthly or at such times as	5576
is determined by the school employees retirement board, the amount	5577
due from such employer, and the superintendent shall deduct from	5578
the amount allocated to the employer under section 3314.08 or	5579
3326.33 or Chapter 3317. of the Revised Code, as applicable, the	5580
entire amounts due to the system from the employer upon the	5581
certification to the superintendent by the secretary of the school	5582
employees retirement system.	5583

(D) The superintendent shall certify to the director of	5584
budget and management the amounts thus due the system for payment.	5585

Sec. 3309.55. Each employer shall on the first day of each	5586
calendar month, or at such ~~less frequent~~ intervals as the school	5587
employees retirement board approves, notify the board of ~~the~~	5588
~~employment of new employees,~~ removals,and withdrawals~~, and~~	5589
~~changes in compensation~~ of employees that have occurred during the	5590
month preceding or the period since the period covered by the last	5591
notification. ~~At least once a year each employer shall submit to~~	5592
~~the board a complete listing of all employees not contributing to~~	5593
~~the school employees retirement system.~~ Each employer shall keep	5594
such records and shall furnish such information and assistance to	5595
the school employees retirement board as it requires in the	5596
discharge of its duties.	5597

Sec. 3309.56. Each employer shall cause to be deducted, on	5598
each payroll of a contributor for each payroll period, the	5599
contribution payable by such contributor. ~~Each employer shall~~	5600
~~certify to the treasurer of said employer on each payroll a~~	5601
~~statement as voucher for the amount so deducted and for the amount~~	5602
~~of the contribution payable by the employer.~~ Each employer shall	5603
send a ~~duplicate of such statement to the secretary of~~report that	5604
lists such contributions deducted by contributor to the school	5605
employees retirement system at such time and in such manner as	5606
required by the school employees retirement board.	5607

Sec. 3309.57. ~~The treasurer of each~~Each employer ~~on receipt~~	5608
~~from the employer of the voucher for deductions from the~~	5609
~~compensation of employees and for the contributions of the~~	5610
~~employer~~ shall transmit monthly or at such times as the school	5611
employees retirement board designates the ~~amounts specified in~~	5612
~~such voucher to the secretary of the board~~contributions required	5613
under this chapter. The ~~secretary of the board~~school employees	5614
retirement system after making a record of all such receipts shall	5615
pay them to the treasurer of state for use according to this	5616
chapter.	5617

Sec. 3309.571. The school employees retirement system shall	5618
impose the following penalties, which may be collected in the same	5619
manner as described in division (B) of section 3309.51 of the	5620
Revised Code:	5621

(A) For a failure to transmit contributions withheld from	5622
employees not later than the date specified under rules adopted by	5623
the school employees retirement board, one hundred dollars per day	5624
for each day the employer fails to transmit the contributions;	5625

(B) For a failure to transmit any amount due the employer's	5626
trust fund not later than the date specified under rules adopted	5627
by the board, one hundred dollars per day for each day the	5628
employer fails to transmit the amounts;	5629

(C) Except for a statement required by section 3309.28 of the	5630
Revised Code, for a failure to submit~~, complete, or correct any~~a	5631
payroll ~~information~~report or other report required under this	5632
chapter not later than the date specified under rules adopted by	5633
the board, one hundred dollars per day for each day the employer	5634
fails to submit~~, complete, or correct~~ the ~~information or~~ report,	5635
except that the penalty shall not exceed one thousand five hundred	5636
dollars;	5637

(D) For a failure to submit a record in the form of a	5638
statement required by section 3309.28 of the Revised Code, fifty	5639
dollars per record for each month the record is not filed, except	5640
that the penalty shall not exceed three hundred dollars.	5641

Sec. 3309.691. The school employees retirement board ~~shall~~	5642
may establish a program under which members of the retirement	5643
system, employers on behalf of members, and persons receiving	5644
service, disability, or survivor benefits are permitted to	5645
participate in contracts for long-term health care insurance.	5646
Participation may include dependents and family members. If a	5647
participant in a contract for long-term care insurance leaves	5648
employment, the participant and the participant's dependents and	5649
family members may, at their election, continue to participate in	5650
a program established under this section in the same manner as if	5651
the participant had not left employment, except that no part of	5652
the cost of the insurance shall be paid by the participant's	5653
former employer.	5654

Such program may be established independently or jointly with	5655
one or more of the other retirement systems. For purposes of this	5656
section, "retirement systems" has the same meaning as in division	5657
(A) of section 145.581 of the Revised Code.	5658

The board may enter into an agreement with insurance	5659
companies, health insuring corporations, or government agencies	5660
authorized to do business in the state for issuance of a long-term	5661
care insurance policy or contract. However, prior to entering into	5662
such an agreement with an insurance company or health insuring	5663
corporation, the board shall request the superintendent of	5664
insurance to certify the financial condition of the company or	5665
corporation. The board shall not enter into the agreement if,	5666
according to that certification, the company or corporation is	5667
insolvent, is determined by the superintendent to be potentially	5668
unable to fulfill its contractual obligations, or is placed under	5669
an order of rehabilitation or conservation by a court of competent	5670
jurisdiction or under an order of supervision by the	5671
superintendent.	5672

The board ~~shall~~may adopt rules in accordance with section	5673
111.15 of the Revised Code governing the program. ~~The~~Any rules	5674
adopted by the board shall establish methods of payment for	5675
participation under this section, which may include establishment	5676
of a payroll deduction plan under section 3309.27 of the Revised	5677
Code, deduction of the full premium charged from a person's	5678
service, disability, or survivor benefit, or any other method of	5679
payment considered appropriate by the board. If the program is	5680
established jointly with one or more of the other retirement	5681
systems, the rules also shall establish the terms and conditions	5682
of such joint participation.	5683

Sec. 3309.82. (A) Except as provided in division (B) of this	5684
section, sections 3309.02, 3309.021, and 3309.022 and sections	5685
3309.18 to 3309.70 of the Revised Code do not apply to a plan	5686
established under section 3309.81 of the Revised Code, except that	5687
a plan may incorporate provisions of those sections as specified	5688
in the plan document.	5689

(B) The following sections of Chapter 3309. of the Revised	5690
Code apply to a plan established under section 3309.81 of the	5691
Revised Code: sections 3309.19, 3309.21, 3309.22, 3309.23,	5692
3309.24, 3309.25, 3309.251, 3309.252, 3309.253, 3309.28, 3309.29,	5693
3309.341, 3309.3712, 3309.47, 3309.471, 3309.49, 3309.51, ~~3309.53,~~	5694
~~3309.54,~~ 3309.55, 3309.56, 3309.57, 3309.571, 3309.58, 3309.59,	5695
3309.60, 3309.61, 3309.62, 3309.66, 3309.661, 3309.67, 3309.672,	5696
3309.673, 3309.68, and 3309.70 of the Revised Code.	5697

Sec. 4113.75. (A) As used in this section:

5698

(1) "Employee" and "employer" have the same meanings as in	5699
section 4113.51 of the Revised Code except that "employer" does	5700
not include the state, any municipal corporation, county,	5701
township, school district, or other political subdivision, or any	5702
agency or instrumentality of any of those entities.	5703

(2) "Employee retirement plan" means an employee retirement	5704
plan described in section 401(k) or 403(b) of the Internal Revenue	5705
Code or a payroll deduction individual retirement account plan	5706
described in section 408 or 408A of the Internal Revenue Code.	5707

(3) "Internal Revenue Code" means the "Internal Revenue Code	5708
of 1986," 100 Stat. 2085, 26 U.S.C. 1 et seq., as amended.	5709

(B)(1) Notwithstanding section 4113.15 of the Revised Code,	5710
an employer may create and implement a program for automatically	5711
withholding a specified percentage of employees' wages to be	5712
contributed on behalf of the employees to an employee retirement	5713
plan. The program shall allow an employee to affirmatively elect	5714
not to participate in the program and not have wages withheld	5715
under the program.	5716

(2) The employer shall provide each participating employee	5717
with all of the following:	5718

(a) Notice of the percentage of the employee's wages that	5719
will be withheld and contributed on behalf of the employee to an	5720
employee retirement plan unless the employee affirmatively elects	5721
not to participate in the plan;	5722

(b) At least one opportunity each calendar quarter to select	5723
investments for the employee's contributions between investment	5724
alternatives available under the plan;	5725

(c) A description of every investment alternative available	5726
for employee investment direction under the plan;	5727

(d) Notice of the default investment decisions that will be	5728
made in the absence of the employee's direction;	5729

(e) A brief description of available procedures that allow an	5730
employee to change investments;	5731

(f) A report, at least once a year, of the actual default	5732
investments made of contributions attributable to the employee.	5733

(3) An employer that creates or implements a program	5734
described in division (B) of this section shall provide its	5735
participating employees with reasonable opportunities to	5736
affirmatively elect not to participate in the program and not have	5737
wages withheld under the program. An affirmative election not to	5738
participate in a program shall be effective as soon after the	5739
employer receives the election as is administratively feasible.	5740

Sec. 5505.03. (A) The funds created by this section are the	5741
"employees' savings fund," "employer's accumulation fund,"	5742
"pension reserve fund," "survivors' benefit fund," "income fund,"	5743
and "expense fund." When reference is made to any of such funds,	5744
such reference is made to each as a separate legal entity;	5745
provided that the moneys in the funds may be intermingled for	5746
deposit and investment purposes.	5747

(B) The employees' savings fund is the fund in which shall be	5748
accumulated the contributions deducted from the salaries of	5749
members, except as provided in division (B)(1)(b) of section	5750
5505.54 of the Revised Code. Any refunds of accumulated	5751
contributions, as provided in the plan, shall be paid from such	5752
fund. Upon a member's retirement, the accumulated contributions	5753
standing to the member's credit in the fund shall be transferred	5754
to the pension reserve fund ~~if the member's retirement occurs on~~	5755
~~or after January 1, 1966, or to the employer's accumulation fund~~	5756
~~if the member's retirement occurred prior to January 1, 1966~~. If a	5757
pension is payable on account of the death of a member, the	5758
accumulated contributions standing to the member's credit in the	5759
employees' savings fund shall be transferred to the survivors'	5760
benefit fund ~~if the member's death occurs after January 1, 1966,~~	5761
~~or to the employer's accumulation fund if the member's death~~	5762
~~occurs prior to January 1, 1966~~.	5763

(C)~~(1)~~ The employer's accumulation fund is the fund in which	5764
shall be accumulated the state's contribution to the state highway	5765
patrol retirement system and the amounts contributed under	5766
division (B)(1)(b) of section 5505.54 of the Revised Code. Upon a	5767
member's retirement ~~after January 1, 1966,~~ the difference between	5768
the member's pension reserve and the member's accumulated	5769
contributions shall be transferred to the pension reserve fund. If	5770
a pension is payable on account of a member's death occurring	5771
~~after January 1, 1966~~, the difference between the pension reserve	5772
for that pension and the member's accumulated contributions shall	5773
be transferred to the survivors' benefit fund.	5774

~~(2) All pensions allowed and payable prior to January 1,~~	5775
~~1966, shall be continued according to the provisions of the plan~~	5776
~~in force the day preceding January 1, 1966, unless otherwise~~	5777
~~provided for in this chapter and shall be paid from the employer's~~	5778
~~accumulation fund.~~	5779

(D) The pension reserve fund is the fund from which shall be	5780
paid all pensions on account of members ~~who retire on or after~~	5781
~~January 1, 1966~~. If a disability retirant returns to the employ of	5782
the state highway patrol, the disability retirant's pension	5783
reserve at that time shall be transferred to the employees'	5784
savings fund and the employer's accumulation fund in the same	5785
proportion as the pension reserve was originally transferred to	5786
the pension reserve fund.	5787

(E) The survivors' benefit fund is the fund from which shall	5788
be paid all pensions, payable under section 5505.17 of the Revised	5789
Code~~, on account of members who die on or after January 1, 1966~~.	5790

(F)(1) The income fund is the fund to which shall be credited	5791
all interest, dividends, distributions, and other income derived	5792
from deposits and investments of moneys of the retirement system,	5793
all gifts and bequests to the system, all transfers from the	5794
employees' savings fund because of lack of claimant, and any other	5795
moneys the disposition of which is not otherwise provided for in	5796
the plan.	5797

(2) If the balance in the income fund exceeds the	5798
requirements of the fund, the state highway patrol retirement	5799
board may transfer amounts from the income fund to meet special	5800
requirements of the various other funds of the retirement system.	5801

(G) The expense fund is the fund from which the expense of	5802
the administration of this chapter shall be paid, exclusive of	5803
amounts payable as retirement allowances and as other benefits.	5804
The state highway patrol retirement board shall estimate annually	5805
the amount to be provided in the expense fund and such amount	5806
shall be transferred from the income fund. If such amount is	5807
insufficient during any year, the board is authorized to transfer	5808
the amount of such insufficiency from the income fund.	5809

Sec. 5505.04. (A)(1) The general administration and	5810
management of the state highway patrol retirement system and the	5811
making effective of this chapter are hereby vested in the state	5812
highway patrol retirement board. The board may sue and be sued,	5813
plead and be impleaded, contract and be contracted with, and do	5814
all things necessary to carry out this chapter.	5815

The board shall consist of the following members:

5816

(a) The superintendent of the state highway patrol;

5817

(b) Two retirant members who reside in this state;

5818

5819

(d) One member, known as the treasurer of state's investment	5820
designee, who shall be appointed by the treasurer of state for a	5821
term of four years and who shall have the following	5822
qualifications:	5823

(i) The member is a resident of this state.

5824

(ii) Within the three years immediately preceding the	5825
appointment, the member has not been employed by the public	5826
employees retirement system, police and fire pension fund, state	5827
teachers retirement system, school employees retirement system, or	5828
state highway patrol retirement system or by any person,	5829
partnership, or corporation that has provided to one of those	5830
retirement systems services of a financial or investment nature,	5831
including the management, analysis, supervision, or investment of	5832
assets.	5833

(iii) The member has direct experience in the management,	5834
analysis, supervision, or investment of assets.	5835

(iv) The member is not currently employed by the state or a	5836
political subdivision of the state.	5837

(e) Two investment expert members, who shall be appointed to	5838
four-year terms. One investment expert member shall be appointed	5839
by the governor, and one investment expert member shall be jointly	5840
appointed by the speaker of the house of representatives and the	5841
president of the senate. Each investment expert member shall have	5842
the following qualifications:	5843

(i) Each investment expert member shall be a resident of this	5844
state.	5845

(ii) Within the three years immediately preceding the	5846
appointment, each investment expert member shall not have been	5847
employed by the public employees retirement system, police and	5848
fire pension fund, state teachers retirement system, school	5849
employees retirement system, or state highway patrol retirement	5850
system or by any person, partnership, or corporation that has	5851
provided to one of those retirement systems services of a	5852
financial or investment nature, including the management,	5853
analysis, supervision, or investment of assets.	5854

(iii) Each investment expert member shall have direct	5855
experience in the management, analysis, supervision, or investment	5856
of assets.	5857

(2) The board shall annually elect a chairperson and	5858
vice-chairperson from among its members. The vice-chairperson	5859
shall act as chairperson in the absence of the chairperson. A	5860
majority of the members of the board shall constitute a quorum and	5861
any action taken shall be approved by a majority of the members of	5862
the board. The board shall meet not less than once each year, upon	5863
sufficient notice to the members. All meetings of the board shall	5864
be open to the public except executive sessions as set forth in	5865
division (G) of section 121.22 of the Revised Code, and any	5866
portions of any sessions discussing medical records or the degree	5867
of disability of a member excluded from public inspection by this	5868
section.	5869

(3) Any ~~investment expert~~ member appointed ~~to fill a vacancy~~	5870
~~occurring prior to the expiration of the term for which the~~	5871
~~member's predecessor was appointed holds~~under this section shall	5872
hold office until the end of ~~such term. The member continues in~~	5873
~~office subsequent to the expiration date of~~ the member's term	5874
~~until~~or, if later, the date the member's successor takes office,	5875
~~or until a period of sixty days has elapsed, whichever occurs~~	5876
~~first~~.	5877

(B) The attorney general shall prescribe procedures for the	5878
adoption of rules authorized under this chapter, consistent with	5879
the provision of section 111.15 of the Revised Code under which	5880
all rules shall be filed in order to be effective. Such procedures	5881
shall establish methods by which notice of proposed rules are	5882
given to interested parties and rules adopted by the board	5883
published and otherwise made available. When it files a rule with	5884
the joint committee on agency rule review pursuant to section	5885
111.15 of the Revised Code, the board shall submit to the Ohio	5886
retirement study council a copy of the full text of the rule, and	5887
if applicable, a copy of the rule summary and fiscal analysis	5888
required by division (B) of section 127.18 of the Revised Code.	5889

(C)(1) As used in this division, "personal history record"	5890
means information maintained by the board on an individual who is	5891
a member, former member, retirant, or beneficiary that includes	5892
the address, electronic mail address, telephone number, social	5893
security number, record of contributions, correspondence with the	5894
system, and other information the board determines to be	5895
confidential.	5896

(2) The records of the board shall be open to public	5897
inspection and may be made available in printed or electronic	5898
format, except for the following which shall be excluded: the	5899
member's, former member's, retirant's, or beneficiary's personal	5900
history record and the amount of a monthly allowance or benefit	5901
paid to a retirant, beneficiary, or survivor, except with the	5902
written authorization of the individual concerned.	5903

(D) All medical reports and recommendations are privileged	5904
except as follows:	5905

(1) Copies of such medical reports or recommendations shall	5906
be made available to the individual's personal physician,	5907
attorney, or authorized agent upon written release received from	5908
such individual or such individual's agent, or when necessary for	5909
the proper administration of the fund to the board-assigned	5910
physician.	5911

(2) Documentation required by section 2929.193 of the Revised	5912
Code shall be provided to a court holding a hearing under that	5913
section.	5914

(E) Notwithstanding the exceptions to public inspection in	5915
division (C)(2) of this section, the board may furnish the	5916
following information:	5917

(1) If a member, former member, or retirant is subject to an	5918
order issued under section 2907.15 of the Revised Code or an order	5919
issued under division (A) or (B) of section 2929.192 of the	5920
Revised Code or is convicted of or pleads guilty to a violation of	5921
section 2921.41 of the Revised Code, on written request of a	5922
prosecutor as defined in section 2935.01 of the Revised Code, the	5923
board shall furnish to the prosecutor the information requested	5924
from the individual's personal history record.	5925

(2) Pursuant to a court order issued under Chapters 3119.,	5926
3121., and 3123. of the Revised Code, the board shall furnish to a	5927
court or child support enforcement agency the information required	5928
under those chapters.	5929

(3) At the written request of any nonprofit organization or	5930
association providing services to retirement system members,	5931
retirants, or beneficiaries, the board shall provide to the	5932
organization or association a list of the names and addresses of	5933
members, former members, retirants, or beneficiaries if the	5934
organization or association agrees to use such information solely	5935
in accordance with its stated purpose of providing services to	5936
such individuals and not for the benefit of other persons,	5937
organizations, or associations. The costs of compiling, copying,	5938
and mailing the list shall be paid by such entity.	5939

(4) Within fourteen days after receiving from the director of	5940
job and family services a list of the names and social security	5941
numbers of recipients of public assistance pursuant to section	5942
5101.181 of the Revised Code, the board shall inform the auditor	5943
of state of the name, current or most recent employer address, and	5944
social security number of each member whose name and social	5945
security number are the same as those of a person whose name or	5946
social security number was submitted by the director. The board	5947
and its employees, except for purposes of furnishing the auditor	5948
of state with information required by this section, shall preserve	5949
the confidentiality of recipients of public assistance in	5950
compliance with section 5101.181 of the Revised Code.	5951

(5) The system shall comply with orders issued under section	5952
3105.87 of the Revised Code.	5953

On the written request of an alternate payee, as defined in	5954
section 3105.80 of the Revised Code, the system shall furnish to	5955
the alternate payee information on the amount and status of any	5956
amounts payable to the alternate payee under an order issued under	5957
section 3105.171 or 3105.65 of the Revised Code.	5958

(6) At the request of any person, the board shall make	5959
available to the person copies of all documents, including	5960
resumes, in the board's possession regarding filling a vacancy of	5961
an employee member or retirant member of the board. The person who	5962
made the request shall pay the cost of compiling, copying, and	5963
mailing the documents. The information described in this division	5964
is a public record.	5965

(7) The system shall provide the notice required by section	5966
5505.263 of the Revised Code to the prosecutor assigned to the	5967
case.	5968

(8) The system may provide information requested by the	5969
United States social security administration, United States	5970
centers for medicare and medicaid, public employees retirement	5971
system, Ohio public employees deferred compensation program, Ohio	5972
police and fire pension fund, school employees retirement system,	5973
state teachers retirement system, or Cincinnati retirement system.	5974

(F) A statement that contains information obtained from the	5975
system's records that is certified and signed by an officer of the	5976
retirement system and to which the system's official seal is	5977
affixed, or copies of the system's records to which the signature	5978
and seal are attached, shall be received as true copies of the	5979
system's records in any court or before any officer of this state.	5980

(G) The board may maintain records in printed or electronic	5981
format.	5982

Sec. 5505.112. Any action brought against the state highway	5983
patrol retirement system or the state highway patrol retirement	5984
board or its officers, employees, or board members in their	5985
official capacities shall be brought in the appropriate court in	5986
Franklin county, Ohio.	5987

Sec. 5505.12. (A) The state highway patrol retirement board	5988
shall have prepared annually by or under the supervision of an	5989
actuary an actuarial valuation of the pension assets, liabilities,	5990
and funding requirements of the state highway patrol retirement	5991
system as established pursuant to this chapter. The actuary shall	5992
complete the valuation in accordance with actuarial standards of	5993
practice promulgated by the actuarial standards board of the	5994
American academy of actuaries and prepare a report of the	5995
valuation. The report shall include all of the following:	5996

(1) A summary of the benefit provisions evaluated;

5997

(2) A summary of the census data and financial information	5998
used in the valuation;	5999

(3) A description of the actuarial assumptions, actuarial	6000
cost method, and asset valuation method used in the valuation,	6001
including a statement of the assumed rate of payroll growth and	6002
assumed rate of growth or decline in the number of members	6003
contributing to the retirement system;	6004

(4) A summary of findings that includes a statement of the	6005
actuarial accrued pension liabilities and unfunded actuarial	6006
accrued pension liabilities;	6007

(5) A schedule showing the effect of any changes in the	6008
benefit provisions, actuarial assumptions, or cost methods since	6009
the last annual actuarial valuation;	6010

(6) A statement of whether contributions to the retirement	6011
system are expected to be sufficient to satisfy the funding	6012
objectives established by the board.	6013

The board shall submit the report to the Ohio retirement	6014
study council, the director of budget and management, and the	6015
standing committees of the house of representatives and the senate	6016
with primary responsibility for retirement legislation immediately	6017
upon its availability and not later than the first day of ~~July~~	6018
September following the year for which the valuation was made.	6019

(B) At such times as the state highway patrol retirement	6020
board determines, and at least once in each five-year period ~~after~~	6021
~~January 1, 1966~~, the board shall have prepared by or under the	6022
supervision of an actuary an actuarial investigation of the	6023
mortality, service, and other experience of the members,	6024
retirants, and beneficiaries to update the actuarial assumptions	6025
used in the actuarial valuation required by division (A) of this	6026
section. The actuary shall prepare a report of the actuarial	6027
investigation. The report shall be prepared and any recommended	6028
changes in actuarial assumptions shall be made in accordance with	6029
the actuarial standards of practice promulgated by the actuarial	6030
standards board of the American academy of actuaries. The report	6031
shall include all of the following:	6032

(1) A summary of relevant decrement and economic assumption	6033
experience observed over the period of the investigation;	6034

(2) Recommended changes in actuarial assumptions to be used	6035
in subsequent actuarial valuations required by division (A) of	6036
this section;	6037

(3) A measurement of the financial effect of the recommended	6038
changes in actuarial assumptions;	6039

(4) If the investigation required by this division includes	6040
the investigation required by division (F) of this section, a	6041
report of the result of that investigation.	6042

The board shall submit the report to the Ohio retirement	6043
study council and the standing committees of the house of	6044
representatives and the senate with primary responsibility for	6045
retirement legislation not later than the first day of November	6046
following the last fiscal year of the period the report covers.	6047

(C) The board may at any time request the actuary to make any	6048
studies or actuarial valuations to determine the adequacy of the	6049
rates of contributions provided by section 5505.15 of the Revised	6050
Code.	6051

(D) The board shall have prepared by or under the supervision	6052
of an actuary an actuarial analysis of any introduced legislation	6053
expected to have a measurable financial impact on the retirement	6054
system. The actuarial analysis shall be completed in accordance	6055
with the actuarial standards of practice promulgated by the	6056
actuarial standards board of the American academy of actuaries.	6057
The actuary shall prepare a report of the actuarial analysis,	6058
which shall include all of the following:	6059

(1) A summary of the statutory changes that are being	6060
evaluated;	6061

(2) A description of or reference to the actuarial	6062
assumptions and actuarial cost method used in the report;	6063

(3) A description of the participant group or groups included	6064
in the report;	6065

(4) A statement of the financial impact of the legislation,	6066
including the resulting increase, if any, in the employer normal	6067
cost percentage; the increase, if any, in actuarial accrued	6068
liabilities; and the per cent of payroll that would be required to	6069
amortize the increase in actuarial accrued liabilities as a level	6070
per cent of covered payroll for all active members over a period	6071
not to exceed thirty years;	6072

(5) A statement of whether the scheduled contributions to the	6073
system after the proposed change is enacted are expected to be	6074
sufficient to satisfy the funding objectives established by the	6075
board.	6076

Not later than sixty days from the date of introduction of	6077
the legislation, the board shall submit a copy of the actuarial	6078
analysis to the legislative service commission, the standing	6079
committees of the house of representatives and the senate with	6080
primary responsibility for retirement legislation, and the Ohio	6081
retirement study council.	6082

(E) The board shall have prepared annually a report giving a	6083
full accounting of the revenues and costs relating to the	6084
provision of benefits under section 5505.28 of the Revised Code.	6085
The report shall be made ~~as of December 31, 1997, and~~not later	6086
than the thirty-first day of December of each year ~~thereafter~~. The	6087
report shall include the following:	6088

(1) A description of the statutory authority for the benefits	6089
provided;	6090

(2) A summary of the benefits;

6091

(3) A summary of the eligibility requirements for the	6092
benefits;	6093

(4) A statement of the number of participants eligible for	6094
the benefits;	6095

(5) A description of the accounting, asset valuation, and	6096
funding method used to provide the benefits;	6097

(6) A statement of the net assets available for the provision	6098
of the benefits as of the last day of the fiscal year;	6099

(7) A statement of any changes in the net assets available	6100
for the provision of benefits, including participant and employer	6101
contributions, net investment income, administrative expenses, and	6102
benefits provided to participants, as of the last day of the	6103
fiscal year;	6104

(8) For the last six consecutive fiscal years, a schedule of	6105
the net assets available for the benefits, the annual cost of	6106
benefits, administrative expenses incurred, and annual employer	6107
contributions allocated for the provision of benefits;	6108

(9) A description of any significant changes that affect the	6109
comparability of the report required under this division;	6110

(10) A statement of the amount paid under division (B) of	6111
section 5505.28 of the Revised Code.	6112

The board shall submit the report to the Ohio retirement	6113
study council, the director of budget and management, and the	6114
standing committees of the house of representatives and the senate	6115
with primary responsibility for retirement legislation immediately	6116
upon its availability and not later than the thirtieth day of June	6117
following the year for which the report was made.	6118

(F) At least once in each five-year period, the board shall	6119
have prepared by or under the supervision of an actuary an	6120
actuarial investigation of the deferred retirement option plan	6121
established under section 5505.50 of the Revised Code. The	6122
investigation shall include an examination of the financial	6123
impact, if any, on the retirement system of offering the plan to	6124
members.	6125

The actuary shall prepare a report of the actuarial	6126
investigation. The report shall include a determination of whether	6127
the plan, as established or modified, has a negative financial	6128
impact on the retirement system and, if so, recommendations on how	6129
to modify the plan to eliminate the negative financial impact. If	6130
the actuarial report indicates that the plan has a negative	6131
financial impact on the retirement system, the board shall modify	6132
the plan. If the board modifies the plan, the rights and	6133
obligations of members who have already elected to participate	6134
shall not be altered.	6135

The state's contributions to the employer accumulation fund	6136
shall not be increased to offset any negative financial impact of	6137
the deferred retirement option plan.	6138

The board may include the actuarial investigation required	6139
under this division as part of the actuarial investigation	6140
required under division (B) of this section. If the report of the	6141
actuarial investigation required by this division is not included	6142
in the report required by division (B) of this section, the board	6143
shall submit the report required by this division to the Ohio	6144
retirement study council and the standing committees of the house	6145
of representatives and the senate with primary responsibility for	6146
retirement legislation not later than the first day of November	6147
following the last fiscal year of the period the report covers.	6148

Sec. 5505.14. Subject to such rules and regulations as the	6149
state highway patrol retirement board adopts, the board shall	6150
issue, upon written request of the member, a certificate	6151
certifying to the aggregate length of all ~~his~~the member's prior	6152
service as a state highway patrol employee. ~~In no event shall~~	6153
~~service be computed prior to November 15, 1933.~~	6154

Sec. 5505.15. (A)~~(1)~~ A member of the state highway patrol	6155
retirement system shall contribute a certain percentage of the	6156
member's annual salary to the state highway patrol retirement	6157
fund. The percentage shall be not less than ten per cent of the	6158
member's annual salary but not more than fourteen per cent. The	6159
state highway patrol retirement board shall establish and may	6160
adjust the rate as it considers necessary to meet the amortization	6161
period requirement of section 5505.121 of the Revised Code. The	6162
board shall base its determination of the necessary rate on the	6163
annual actuarial valuation required by section 5505.12 of the	6164
Revised Code. The amount shall be deducted by the employer from	6165
the employee's salary for each payroll period.	6166

~~(2) The total contributions arising from deductions made~~	6167
~~prior to January 1, 1966, from the salaries of members in the~~	6168
~~employ of the state highway patrol and standing to the credit of~~	6169
~~their individual accounts in the retirement fund shall be~~	6170
~~transferred and credited to their respective individual accounts~~	6171
~~in the employees' savings fund.~~	6172

(B) The state shall annually pay into the employer	6173
accumulation fund, in monthly or less frequent installments as the	6174
state highway patrol retirement board requires, the employer	6175
contribution. The employer contribution shall be an amount equal	6176
to twenty-six and one-half per cent of the total salaries paid	6177
contributing members. If a member severs connection with the	6178
patrol or is dismissed, the employer contribution shall remain in	6179
the retirement system.	6180

The rate percentage of the employer contribution shall be	6181
certified by the board to the director of budget and management	6182
and shall not be lower than nine per cent of the total salaries	6183
paid contributing members and shall not exceed three times the	6184
rate percentage being deducted from the annual salaries of	6185
contributing members. The board shall prepare and submit to the	6186
director, on or before the first day of November of each	6187
even-numbered year, an estimate of the amounts necessary to pay	6188
the state's obligations accruing during the biennium beginning the	6189
first day of July of the following year. Such amounts shall be	6190
included in the budget and allocated as certified by the board.	6191

Sec. 5505.16. (A) A member of the state highway patrol	6192
retirement system who has ~~been in the service of the state highway~~	6193
~~patrol for a period of~~ twenty-five years ~~as an employee~~of service	6194
credit according to the rules adopted by the state highway patrol	6195
retirement board may make application for a pension which, if the	6196
member is under age forty-eight, shall be deferred until age	6197
forty-eight.	6198

(B) A member ~~of the retirement system~~ who has ~~been in the~~	6199
~~service of the highway patrol for a period of~~ twenty years ~~as an~~	6200
~~employee~~of service credit according to the rules adopted by the	6201
retirement board, may make application for a pension that, if the	6202
member is under age fifty-two, shall be deferred until age	6203
fifty-two, except that any such member who has attained twenty	6204
years of service may, on or after attaining age forty-eight but	6205
before attaining age fifty-two, elect to receive a reduced pension	6206
of the greater of nine hundred dollars or an amount computed as	6207
follows:	6208

Attained Age	Reduced Pension	6209
48	75% of normal service pension	6210
49	80% of normal service pension	6211
50	86% of normal service pension	6212
51	93% of normal service pension	6213

In the case of a member who elects to receive a reduced	6214
pension after attaining age forty-eight, the reduced pension is	6215
payable from the later of the date of the member's most recent	6216
birthday or the date the member becomes eligible to receive the	6217
reduced pension.	6218

A member who has elected to receive a reduced pension in	6219
accordance with the schedule provided in this division and has	6220
received a payment in connection therewith may not change the	6221
election.	6222

(C) Any member who attains the age of sixty years and has	6223
~~been in the service of the patrol for a period of~~ twenty years as	6224
~~a uniformed patrol officer~~of service credit according to the	6225
rules adopted by the board, shall file application for retirement	6226
with the board, and if the member refuses or neglects to do so,	6227
the board may deem the member's application to have been filed on	6228
the member's sixtieth birthday. The member may, upon written	6229
application approved by the superintendent of the state highway	6230
patrol, be continued in service after attaining the age of sixty	6231
years, but only until the member has accumulated twenty years of	6232
service credit in accordance with rules adopted by the board.	6233

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

6234

(a) "Service in the uniformed services" means the performance	6235
of duty on a voluntary or involuntary basis in a uniformed service	6236
under competent authority and includes active duty, active duty	6237
for training, initial active duty for training, inactive duty	6238
training, full-time national guard duty, and a period for which a	6239
person is absent from a position of employment for the purpose of	6240
an examination to determine the fitness of the person to perform	6241
any such duty.	6242

(b) "Uniformed services" of the United States includes both:

6243

(i) Army, navy, air force, marine corps, coast guard, or any	6244
reserve components of these services; auxiliary corps as	6245
established by congress; army nurse corps; navy nurse corps;	6246
service as red cross nurse with the army, navy, air force, or	6247
hospital service of the United States, or serving full-time with	6248
the American red cross in a combat zone; and such other service as	6249
is designated by congress as included therein;	6250

(ii) Personnel of the Ohio national guard, the Ohio military	6251
reserve, the Ohio naval militia, and the reserve components of the	6252
armed forces enumerated in division (D)(1) of this section who are	6253
called to active duty pursuant to an executive order issued by the	6254
president of the United States or an act of congress.	6255

(2) A member's total service credit may include periods not	6256
to exceed a total of seven years, while the member's employment	6257
with the state highway patrol is or was interrupted due to service	6258
in the uniformed services of the United States. Such military	6259
service shall be credited to the member towards total service as	6260
provided by this chapter and to the extent approved by the board,	6261
provided that:	6262

(a) The member is or was honorably discharged from service in	6263
the uniformed services;	6264

(b) The member is or was re-employed by the state highway	6265
patrol within ninety days immediately following termination of	6266
service in the uniformed services;	6267

(c) The member, subject to board rules, pays into the	6268
retirement system to the member's credit in the employees' savings	6269
fund an amount equal to the total contributions the member would	6270
have paid had state highway patrol employment not been so	6271
interrupted. Such payment may be made at any time prior to receipt	6272
of a pension.	6273

(3) If the member meets the requirements of division (D)(2)	6274
of this section, on receipt of contributions from the member, the	6275
state highway patrol shall be billed for the employer contribution	6276
that would have been paid pursuant to section 5505.15 of the	6277
Revised Code if the member had not rendered service in the	6278
uniformed services, subject to board rules.	6279

(4) If under division (D)(2)(c) of this section a member pays	6280
all or any portion of the contributions later than the lesser of	6281
five years or a period that is three times the member's period of	6282
service in the uniformed services beginning from the ~~later of the~~	6283
member's date of re-employment ~~or October 29, 1996~~, an amount	6284
equal to compound interest at a rate established by the board from	6285
the ~~later of the~~ member's date of re-employment ~~or October 29,~~	6286
~~1996,~~ to the date of payment shall be added to the remaining	6287
amount to be paid by the member to purchase service credit under	6288
this section.	6289

(5) Credit purchased by a member under division (D)(2) of	6290
this section shall be used to determine the member's eligibility	6291
for retirement under this section and section 5505.17 of the	6292
Revised Code.	6293

Sec. 5505.17. (A)(1) Upon retirement as provided in section	6294
5505.16 of the Revised Code, a member of the state highway patrol	6295
retirement system shall receive a life pension, without guaranty	6296
or refund, equal to the greater of one thousand fifty dollars or	6297
the sum of two and one-half per cent of the member's final average	6298
salary multiplied by the first twenty years of total service	6299
credit, plus two and one-quarter per cent of the member's final	6300
average salary multiplied by the number of years, and fraction of	6301
a year, of total service credit in excess of twenty years but not	6302
in excess of twenty-five years, plus two per cent of the member's	6303
final average salary multiplied by the number of years, and	6304
fraction of a year, in excess of twenty-five years; provided that	6305
in no case shall the pension exceed the lesser of seventy-nine and	6306
one-quarter per cent of the member's final average salary or the	6307
limit established by section 415 of the "Internal Revenue Code of	6308
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	6309

(2) A member with fifteen or more years of total service	6310
credit, who voluntarily resigns or who is discharged from the	6311
state highway patrol for any reason except retirement under this	6312
chapter, death, dishonesty, cowardice, intemperate habits, or	6313
conviction of a felony, shall receive a pension equal to one and	6314
one-half per cent of the member's final average salary multiplied	6315
by the number of years, and fraction of a year, of total service	6316
credit, except that the pension shall not exceed the limit	6317
established by section 415 of the "Internal Revenue Code of 1986,"	6318
100 Stat. 2085, 26 U.S.C.A. 415, as amended. The pension shall	6319
commence at the end of the calendar month in which the application	6320
is filed with the retirement board on or after the attainment of	6321
age fifty-five years by the applicant. A member who withdraws any	6322
part or all of the accumulated contributions from the employees'	6323
savings fund shall thereupon forfeit all rights to a pension	6324
provided for in this division.	6325

(3)(a) A surviving spouse of a deceased member shall receive	6326
a monthly pension, determined as follows, during the spouse's	6327
life:	6328

(i) If at the time of death the member was not eligible to be	6329
granted a pension payable under this section or to elect to	6330
receive a reduced pension payable under section 5505.16 of the	6331
Revised Code, nine hundred dollars;	6332

(ii) If at the time of death the member was eligible to be	6333
granted a pension payable under this section or to elect to	6334
receive a reduced pension payable under section 5505.16 of the	6335
Revised Code, the greater of nine hundred dollars or fifty per	6336
cent of the computed monthly pension the member would have	6337
received had the member been granted a pension under this section	6338
or elected to receive a reduced pension under section 5505.16 of	6339
the Revised Code.	6340

(b) The surviving spouse of a retirant shall receive a	6341
monthly pension, determined as follows, during the spouse's life:	6342

(i) If the retirant had applied for a pension payable under	6343
section 5505.16 of the Revised Code, but at the time of death had	6344
not attained the age of eligibility for the pension, nine hundred	6345
dollars;	6346

(ii) If the retirant had applied for a pension payable under	6347
section 5505.16 of the Revised Code and had attained the age of	6348
eligibility for the pension, but at the time of death had not	6349
elected to begin receiving the pension, the greater of nine	6350
hundred dollars or fifty per cent of the computed monthly pension	6351
the retirant was eligible to receive under section 5505.16 of the	6352
Revised Code;	6353

(iii) If the retirant was receiving a pension under this	6354
section or section 5505.16 or 5505.18 of the Revised Code, or,	6355
regardless of whether or not the retirant had actually received	6356
any payment, if the retirant was eligible to receive a pension	6357
under this section or section 5505.16 or 5505.18 of the Revised	6358
Code and had elected to begin receiving it, the greater of nine	6359
hundred dollars or fifty per cent of the computed monthly pension	6360
awarded the retirant.	6361

(c) If a monthly pension to a surviving spouse was terminated	6362
due to a remarriage, the surviving spouse is eligible to receive a	6363
monthly pension under division (A)(3) of this section effective	6364
the first day of the first month following June 5, 1996. The	6365
pension shall be computed under division (A)(3) of this section as	6366
of June 5, 1996. The pension payable to a person who is the	6367
surviving spouse of more than one state highway patrol retirement	6368
system member or retirant shall be computed on the basis of the	6369
service of the member or retirant to whom the surviving spouse was	6370
most recently married.	6371

(4) A pension of one hundred fifty dollars per month shall be	6372
paid by the system to or for the benefit of each child of a	6373
deceased member or retirant until the child attains the age of	6374
eighteen years or marries, whichever event occurs first, or until	6375
the child attains twenty-three years of age if the child is a	6376
student in and attending an institution of learning or training	6377
pursuant to a program designed to complete in each school year the	6378
equivalent of at least two-thirds of the full-time curriculum	6379
requirements of the institution, as determined by the retirement	6380
board. If any surviving child, regardless of age at the time of	6381
the member's or retirant's death, because of physical or mental	6382
disability, was totally dependent upon the deceased member or	6383
retirant for support at the time of death, a pension of one	6384
hundred fifty dollars per month shall be paid by the system to or	6385
for the benefit of the child during the child's natural life or	6386
until the child recovers from the disability.	6387

(5)(a) If a retirant died prior to June 6, 1988, and the	6388
surviving spouse was not married to the retirant while the	6389
retirant was in the active service of the patrol, the surviving	6390
spouse shall receive a pension of the greater of four hundred	6391
twenty-five dollars per month or fifty per cent of the computed	6392
monthly pension the retirant was receiving.	6393

(b) If the pension payable to a person receiving a pension	6394
under division (A)(5)(a) of this section on ~~the effective date of~~	6395
~~this amendment~~June30, 2000, is less than nine hundred dollars	6396
per month, the pension shall be increased to nine hundred dollars	6397
per month.	6398

(6)~~(a) If the pension payable to the surviving spouse of a~~	6399
~~deceased member or retirant under division (A)(3) of this section~~	6400
~~on the effective date of this amendment is less than nine hundred~~	6401
~~dollars per month, the pension shall be increased to nine hundred~~	6402
~~dollars per month.~~	6403

~~(b) The pension payable to a child of a deceased member or~~	6404
~~retirant who is receiving a pension under division (A)(4) of this~~	6405
~~section on June 5, 1996, shall be increased to one hundred fifty~~	6406
~~dollars per month.~~	6407

~~(7)~~ If a deceased member or retirant leaves no spouse or	6408
surviving children, but leaves two parents depending solely upon	6409
the deceased member or retirant for support, each parent shall be	6410
paid a monthly pension of one hundred fifty-four dollars. If in	6411
such case there is only one parent dependent solely upon the	6412
deceased member or retirant for support, such parent shall be paid	6413
a monthly pension of one hundred fifty-four dollars. Such pension	6414
shall be paid during the life of the surviving parents, or until	6415
dependency ceases, or until remarriage, whichever event occurs	6416
first.	6417

~~(8)~~(7) Any amount remaining as accumulated contributions at	6418
the time of death of a ~~member or~~ retirant who leaves no surviving	6419
spouse or dependent children or parents shall be paid to the	6420
estate of the ~~member or~~ retirant.	6421

~~(9)~~(8) The ~~increases~~increase provided for by ~~divisions~~	6422
division (A)(5) ~~and (A)(6)(a)~~ of this section shall be included in	6423
the calculation of the additional benefit paid under section	6424
5505.174 of the Revised Code.	6425

(B) The board shall adopt, and may amend or rescind, the	6426
necessary rules for the administration of this section and all	6427
decisions of the board shall be final. Any payment of a pension or	6428
benefit under this section is subject to the provisions of section	6429
5505.26 of the Revised Code.	6430

(C) A member's total service credit may include periods	6431
during which the member's employment with the state highway patrol	6432
is interrupted by a leave of absence, when requested by the	6433
governor, to accept employment with another agency of the state,	6434
provided that:	6435

(1) The member is reemployed by the state highway patrol	6436
within thirty days following termination of such other employment;	6437

(2) The member pays into the retirement system, to the credit	6438
of the employees' savings fund, an amount equal to the total	6439
contributions the member would have paid had the state highway	6440
patrol employment not been so interrupted. Such repayment shall	6441
begin within ninety days after the member's return to duty with	6442
the state highway patrol and be completed within a period equal to	6443
that of the leave of absence.	6444

(D) Service credits granted under division (C) of this	6445
section shall not include any duplications of credits for which a	6446
pension is payable by the public employees retirement system.	6447

Sec. 5505.174. (A) Eligibility for an increase under this	6448
section shall be determined as follows:	6449

(1) For a person whose pension effective date is prior to ~~the~~	6450
~~effective date of this amendment~~January 7, 2013, an "eligible	6451
person" is one of the following:	6452

(a) A person fifty-three years old or older who has been	6453
receiving a pension pursuant to division (B) of section 5505.16,	6454
division (A)(1) of section 5505.17, or division (B) of section	6455
5505.18 of the Revised Code for not less than twelve months;	6456

(b) A person who has been receiving a pension pursuant to	6457
division (B) of section 5505.18 of the Revised Code for not less	6458
than sixty months regardless of age;	6459

(c) A person who has been receiving a pension pursuant to	6460
section 5505.162 or division (A)(3), (4), (5), or (6)~~, or (7)~~ of	6461
section 5505.17 of the Revised Code for not less than twelve	6462
months regardless of age.	6463

(2) For a person whose pension effective date is on or after	6464
~~the effective date of this amendment~~January 7, 2013, an "eligible	6465
person" is a person who is sixty years old or older who has been	6466
receiving a pension pursuant to division (B) of section 5505.16,	6467
section 5505.162, division (A)(1), (3), (4), (5), or (6)~~, or (7)~~	6468
of section 5505.17, or division (B) of section 5505.18 of the	6469
Revised Code for not less than twelve months.	6470

(B)(1) Except as otherwise provided in this section, the	6471
state highway patrol retirement board shall annually increase	6472
pensions payable to eligible persons under this chapter in	6473
accordance with the following:	6474

(a) For each person sixty-five years of age or older who is	6475
receiving a pension not greater than one hundred eighty-five per	6476
cent of the federal poverty level for a family of two persons, as	6477
revised annually by the United States department of health and	6478
human services in accordance with section 673(2) of the "Omnibus	6479
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as	6480
amended, the board shall increase the pension by three per cent.	6481

(b) For persons other than those described in division	6482
(B)(1)(a) of this section, the board may increase the pension. Any	6483
increase shall be determined by the board based on compliance with	6484
the amortization period requirement of section 5505.121 of the	6485
Revised Code. The board's determination shall be based on the	6486
annual actuarial valuation required by section 5505.12 of the	6487
Revised Code. If the board determines that an increase may be	6488
made, the increase shall not exceed three per cent of the eligible	6489
person's pension.	6490

(2) No increase under this section shall exceed the limit	6491
established by section 415 of the "Internal Revenue Code of 1986,"	6492
100 Stat. 2085, 26 U.S.C. 415, as amended.	6493

(3) The date of the first increase paid under this section	6494
shall be the anniversary date for future increases. The pension	6495
used in the first calculation of an increase under this section	6496
shall remain as the base for all future increases paid under this	6497
section, unless a new base is established.	6498

(C) If payment of a portion of a benefit is made to an	6499
alternate payee under section 5505.261 of the Revised Code,	6500
increases under this section granted while the order is in effect	6501
shall be apportioned between the alternate payee and the eligible	6502
person in the same proportion that the amount being paid to the	6503
alternate payee bears to the amount paid to the eligible person.	6504

If payment of a portion of a benefit is made to one or more	6505
beneficiaries under "option 4" under division (A)(4) of section	6506
5505.162 of the Revised Code, each increase under this section	6507
granted while the plan of payment is in effect shall be divided	6508
among the designated beneficiaries in accordance with the portion	6509
each beneficiary has been allocated.	6510

(D) The board shall adopt, and may amend or rescind, any rule	6511
necessary to carry out this section.	6512

Sec. 5505.18. As used in this section, "member" does not	6513
include state highway patrol cadets attending training schools	6514
pursuant to section 5503.05 of the Revised Code.	6515

(A) Upon the application of a member of the state highway	6516
patrol retirement system, a person acting on behalf of a member,	6517
or the superintendent of the state highway patrol on behalf of a	6518
member, a member who becomes totally and permanently incapacitated	6519
for duty in the employ of the state highway patrol may be retired	6520
on disability by the board.	6521

The medical or psychological examination of a member who has	6522
applied for disability retirement shall be conducted by a	6523
competent health-care professional or professionals appointed by	6524
the board. The health-care professional or professionals shall	6525
file a written report with the board containing the following	6526
information:	6527

(1) Whether the member is totally incapacitated for duty in	6528
the employ of the patrol;	6529

(2) Whether the incapacity is expected to be permanent;

6530

(3) The cause of the member's incapacity.

6531

The board shall determine whether the member qualifies for	6532
disability retirement and its decision shall be final. The board	6533
shall consider the written medical or psychological report,	6534
opinions, statements, and other competent evidence in making its	6535
determination. If the incapacity is a result of heart disease or	6536
any cardiovascular disease of a chronic nature, which disease or	6537
any evidence of which was not revealed by the physical examination	6538
passed by the member on entry into the patrol, the member is	6539
presumed to have incurred the disease in the line of duty as a	6540
member of the patrol, unless the contrary is shown by competent	6541
evidence.	6542

(B)(1) Except as provided under division (A) of section	6543
5505.58 of the Revised Code, a member whose retirement on account	6544
of disability incurred in the line of duty shall receive the	6545
applicable pension provided for in section 5505.17 of the Revised	6546
Code, except that if the member has less than twenty-five years of	6547
contributing service, the member's service credit shall be deemed	6548
to be twenty-five years for the purpose of this provision. In no	6549
case shall the member's disability pension be less than sixty-one	6550
and one-quarter per cent or exceed the lesser of seventy-nine and	6551
one-quarter per cent of the member's final average salary or the	6552
limit established by section 415 of the "Internal Revenue Code of	6553
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	6554

(2) Except as provided under division (B) of section 5505.58	6555
of the Revised Code, a member whose retirement on account of	6556
disability incurred not in the line of duty shall receive the	6557
applicable pension provided for in section 5505.17 of the Revised	6558
Code, except that if the member has less than twenty years of	6559
contributing service, the member's service credit shall be deemed	6560
to be twenty years for the purpose of this provision. In no case	6561
shall the member's disability pension exceed the lesser of	6562
seventy-nine and one-quarter per cent of the member's final	6563
average salary or the limit established by section 415 of the	6564
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	6565
as amended.	6566

(C) The state highway patrol retirement board shall adopt	6567
rules requiring a disability ~~pension recipient~~retirant, as a	6568
condition of continuing to receive a disability pension, to agree	6569
in writing to obtain any medical or psychological treatment	6570
recommended by the board's health-care professional and submit	6571
medical or psychological reports regarding the treatment. If the	6572
board determines that a disability ~~pension recipient~~retirant is	6573
not obtaining the medical or psychological treatment or the board	6574
does not receive a required medical or psychological report, the	6575
disability pension shall be suspended until the treatment is	6576
obtained, the report is received by the board, or the board's	6577
health-care professional certifies that the treatment is no longer	6578
helpful or advisable. Should the ~~recipient's~~retirant's failure to	6579
obtain treatment or submit a medical or psychological report	6580
continue for one year, the recipient's right to the disability	6581
~~benefit~~pension shall be terminated as of the effective date of	6582
the original suspension.	6583

(D) A ~~member placed on a disability pension~~disability	6584
retirant who has not attained the age of sixty years shall be	6585
subject to an annual medical or psychological re-examination by	6586
health-care professionals appointed by the board, except that the	6587
board may waive the re-examination if the board's health-care	6588
professionals certify that the ~~member's~~retirant's disability is	6589
ongoing. If any ~~member placed on a disability pension~~retirant	6590
refuses to submit to a medical or psychological re-examination,	6591
the ~~member's~~retirant's disability pension shall be suspended	6592
until the ~~member~~retirant withdraws the refusal. If the refusal	6593
continues for one year, all the ~~member's~~retirant's rights under	6594
and to the disability pension shall be terminated as of the	6595
effective date of the original suspension.	6596

(E) Each ~~recipient of a disability pension~~disability	6597
retirant who has not attained the age of sixty years shall file	6598
with the board an annual statement of earnings, current medical or	6599
psychological information on the recipient's condition, and any	6600
other information required in rules adopted by the board. The	6601
board may waive the requirement that a disability ~~benefit~~	6602
~~recipient~~retirant file an annual statement of earnings or current	6603
medical or psychological information if the board's health-care	6604
professional certifies that the ~~recipient's~~retirant's disability	6605
is ongoing.	6606

The board shall annually examine the information submitted by	6607
the ~~recipient~~retirant. If a ~~recipient~~retirant refuses to file	6608
the statement or information, the disability pension shall be	6609
suspended until the statement and information are filed. If the	6610
refusal continues for one year, the right to the pension shall be	6611
terminated as of the effective date of the original suspension.	6612

(F)(1) Except as provided in division (F)(2) of this section,	6613
a disability retirant ~~who has been on disability pension, and~~ who	6614
has been physically or psychologically examined and found no	6615
longer incapable of performing the retirant's duties, shall be	6616
restored to the rank the retirant held at the time the retirant	6617
was pensioned and all previous rights shall be restored, including	6618
the retirant's civil service status, and the disability pension	6619
shall terminate. Upon return to employment in the patrol, the	6620
retirant shall again become a contributing member of the	6621
retirement system, the total service at the time of the retirant's	6622
retirement shall be restored to the retirant's credit, and the	6623
retirant shall be given service credit for the period the retirant	6624
was in receipt of a disability pension. The provisions of division	6625
(F)(1) of this section shall be retroactive to September 5, 1941.	6626

(2) The state highway patrol is not required to take action	6627
under division (F)(1) of this section if the retirant was	6628
dismissed or resigned in lieu of dismissal for dishonesty,	6629
misfeasance, malfeasance, or conviction of a felony.	6630

(G) The board may adopt rules to carry out this section,	6631
including rules that specify the types of health-care	6632
professionals the board may appoint for the purpose of this	6633
section.	6634

Sec. 5505.33. (A) As used in this section:

6635

(1) "Long-term care insurance" has the same meaning as in	6636
section 3923.41 of the Revised Code.	6637

(2) "Retirement systems" has the same meaning as in division	6638
(A) of section 145.581 of the Revised Code.	6639

(B) The state highway patrol retirement board ~~shall~~may	6640
establish a program under which members of the retirement system,	6641
employers on behalf of members, and persons receiving service or	6642
disability pensions or survivor benefits are permitted to	6643
participate in contracts for long-term care insurance.	6644
Participation may include dependents and family members. If a	6645
participant in a contract for long-term care insurance leaves	6646
employment, the person and the person's dependents and family	6647
members may, at their election, continue to participate in a	6648
program established under this section in the same manner as if	6649
the person had not left employment, except that no part of the	6650
cost of the insurance shall be paid by the person's former	6651
employer. Such program may be established independently or jointly	6652
with one or more of the retirement systems.	6653

(C) The board may enter into an agreement with insurance	6654
companies, health insuring corporations, or government agencies	6655
authorized to do business in the state for issuance of a long-term	6656
care insurance policy or contract. However, prior to entering into	6657
such an agreement with an insurance company or health insuring	6658
corporation, the board shall request the superintendent of	6659
insurance to certify the financial condition of the company or	6660
corporation. The board shall not enter into the agreement if,	6661
according to that certification, the company or corporation is	6662
insolvent, is determined by the superintendent to be potentially	6663
unable to fulfill its contractual obligations, or is placed under	6664
an order of rehabilitation or conservation by a court of competent	6665
jurisdiction or under an order of supervision by the	6666
superintendent.	6667

(D) The board ~~shall~~may adopt rules in accordance with	6668
section 111.15 of the Revised Code governing the program. ~~The~~Any	6669
rules adopted by the board shall establish methods of payment for	6670
participation under this section, which may include establishment	6671
of a payroll deduction plan under section 5505.203 of the Revised	6672
Code, deduction of the full premium charged from a person's	6673
service or disability pension or survivor benefit, or any other	6674
method of payment considered appropriate by the board. If the	6675
program is established jointly with one or more of the other	6676
retirement systems, the rules also shall establish the terms and	6677
conditions of such joint participation.	6678

Sec. 5505.34. If a person ~~who is a disability benefit~~	6679
~~recipient or an alternate payee, as defined in section 3105.80 of~~	6680
~~the Revised Code,~~ is paid any benefit or payment by the state	6681
highway patrol retirement system to which the person is not	6682
entitled, the ~~person shall repay~~benefit or payment shall be	6683
repaid to the retirement system by the person. If the person fails	6684
to ~~repay~~make the repayment, the retirement system shall withhold	6685
the amount due from any benefit or payment due the person or the	6686
person's beneficiary or may collect the amount in any other manner	6687
provided by law.	6688

Sec. 5505.59. If a member dies while participating in the	6689
deferred retirement option plan, all of the following apply:	6690

(A) The amounts accrued to the member's benefit shall be paid	6691
to the member's surviving spouse or, if there is no surviving	6692
spouse, the beneficiary designated by the member on a form	6693
provided by the state highway patrol retirement system. If there	6694
is no surviving spouse or designated beneficiary, the amounts	6695
accrued to the member's benefit shall be paid to the member's	6696
estate.	6697

Any payment made under this division shall be made in the	6698
form of a single lump sum payment.	6699

(B) The surviving spouse and, if eligible, each surviving	6700
child, shall receive a pension as described in division	6701
(A)(3)(b)(iii) or (4) of section 5505.17 of the Revised Code,	6702
utilizing the pension amount calculated under section 5505.53 of	6703
the Revised Code.	6704

(C) If the member has no surviving spouse or surviving	6705
children, but has a parent or parents dependent on the member for	6706
support, the parent or parents shall receive a pension determined	6707
under division (A)~~(7)~~(6) of section 5505.17 of the Revised Code.	6708

(D) The lump sum payment described in section 5505.30 of the	6709
Revised Code shall be paid to the member's surviving spouse or, if	6710
there is no surviving spouse, to the member's estate.	6711

Sec. 5705.21. (A) At any time, the board of education of any	6712
city, local, exempted village, cooperative education, or joint	6713
vocational school district, by a vote of two-thirds of all its	6714
members, may declare by resolution that the amount of taxes ~~which~~	6715
that may be raised within the ten-mill limitation by levies on the	6716
current tax duplicate will be insufficient to provide an adequate	6717
amount for the necessary requirements of the school district, that	6718
it is necessary to levy a tax in excess of such limitation for one	6719
of the purposes specified in division (A), (D), (F), (H), or (DD)	6720
of section 5705.19 of the Revised Code, for general permanent	6721
improvements, for the purpose of operating a cultural center, for	6722
the purpose of providing for school safety and security, or for	6723
the purpose of providing education technology, and that the	6724
question of such additional tax levy shall be submitted to the	6725
electors of the school district at a special election on a day to	6726
be specified in the resolution. In the case of a qualifying	6727
library levy for the support of a library association or private	6728
corporation, the question shall be submitted to the electors of	6729
the association library district. If the resolution states that	6730
the levy is for the purpose of operating a cultural center, the	6731
ballot shall state that the levy is "for the purpose of operating	6732
the .......... (name of cultural center)."	6733

As used in this division, "cultural center" means a	6734
freestanding building, separate from a public school building,	6735
that is open to the public for educational, musical, artistic, and	6736
cultural purposes; "education technology" means, but is not	6737
limited to, computer hardware, equipment, materials, and	6738
accessories, equipment used for two-way audio or video, and	6739
software; and "general permanent improvements" means permanent	6740
improvements without regard to the limitation of division (F) of	6741
section 5705.19 of the Revised Code that the improvements be a	6742
specific improvement or a class of improvements that may be	6743
included in a single bond issue.	6744

A resolution adopted under this division shall be confined to	6745
a single purpose and shall specify the amount of the increase in	6746
rate that it is necessary to levy, the purpose of the levy, and	6747
the number of years during which the increase in rate shall be in	6748
effect. The number of years may be any number not exceeding five	6749
or, if the levy is for current expenses of the district or for	6750
general permanent improvements, for a continuing period of time.	6751

(B)(1) The board of education of a qualifying school	6752
district, by resolution, may declare that it is necessary to levy	6753
a tax in excess of the ten-mill limitation for the purpose of	6754
paying the current expenses of the district and of partnering	6755
community schools and that the question of the additional tax levy	6756
shall be submitted to the electors of the school district at a	6757
special election on a day to be specified in the resolution. The	6758
resolution shall state the purpose of the levy, the rate of the	6759
tax expressed in mills per dollar of taxable value, the number of	6760
such mills to be levied for the current expenses of the partnering	6761
community schools and the number of such mills to be levied for	6762
the current expenses of the school district, the number of years	6763
the tax will be levied, and the first year the tax will be levied.	6764
The number of years the tax may be levied may be any number not	6765
exceeding ten years, or for a continuing period of time.	6766

The levy of a tax for the current expenses of a partnering	6767
community school under this section and the distribution of	6768
proceeds from the tax by a qualifying school district to	6769
partnering community schools is hereby determined to be a proper	6770
public purpose.	6771

(2) The form of the ballot at an election held pursuant to	6772
division (B) of this section shall be as follows:	6773

"Shall a levy be imposed by the ......... (insert the name of	6774
the qualifying school district) for the purpose of current	6775
expenses of the school district and of partnering community	6776
schools at a rate not exceeding ...... (insert the number of	6777
mills) mills for each one dollar of valuation (of which ......	6778
(insert the number of mills to be allocated to partnering	6779
community schools) mills is to be allocated to partnering	6780
community schools), which amounts to ....... (insert the rate	6781
expressed in dollars and cents) for each one hundred dollars of	6782
valuation, for ...... (insert the number of years the levy is to	6783
be imposed, or that it will be levied for a continuing period of	6784
time), beginning ...... (insert first year the tax is to be	6785
levied), which will first be payable in calendar year ......	6786
(insert the first calendar year in which the tax would be	6787
payable)?	6788

		FOR THE TAX LEVY			6789
		AGAINST THE TAX LEVY	"		6790

(3) Upon each receipt of a tax distribution by the qualifying	6791
school district, the board of education shall credit the portion	6792
allocated to partnering community schools to the partnering	6793
community schools fund. All income from the investment of money in	6794
the partnering community schools fund shall be credited to that	6795
fund.	6796

(a) If the qualifying school district is a municipal school	6797
district, the board of education shall distribute the partnering	6798
community schools amount among the then qualifying community	6799
schools not more than forty-five days after the school district	6800
receives and deposits each tax distribution. From each tax	6801
distribution, each such partnering community school shall receive	6802
a portion of the partnering community schools amount in the	6803
proportion that the number of its resident students bears to the	6804
aggregate number of resident students of all such partnering	6805
community schools as of the date of receipt and deposit of the tax	6806
distribution.	6807

(b) If the qualifying school district is not a municipal	6808
school district, the board of education may distribute all or a	6809
portion of the amount in the partnering community schools fund	6810
during a fiscal year to partnering community schools that were	6811
either sponsored by the district or entered into an agreement	6812
pursuant to division (B)(6)(b) of this section on or before the	6813
first day of June of the preceding fiscal year. Each such	6814
partnering community school shall receive a portion of the amount	6815
distributed by the board from the partnering community schools	6816
fund during the fiscal year in the proportion that the number of	6817
its resident students bears to the aggregate number of resident	6818
students of all such partnering community schools as of the date	6819
the school district received and deposited the most recent tax	6820
distribution. On or before the fifteenth day of June of each	6821
fiscal year, the board of education shall announce an estimated	6822
allocation to partnering community schools for the ensuing fiscal	6823
year. The board is not required to allocate to partnering	6824
community schools the entire partnering community schools amount	6825
in the fiscal year in which a tax distribution is received and	6826
deposited in the partnering community schools fund. The estimated	6827
allocation shall be published on the web site of the school	6828
district and expressed as a dollar amount per resident student.	6829
The actual allocation to community schools in a fiscal year need	6830
not conform to the estimate published by the school district so	6831
long if the estimate was made in good faith.	6832

Distributions by a school district under division (B)(3)(b)	6833
of this section shall be made in accordance with distribution	6834
agreements entered into by the board of education and each	6835
partnering community school eligible for distributions under this	6836
division. The distribution agreements shall be certified to the	6837
department of education each fiscal year before the thirtieth day	6838
of July. Each agreement shall provide for at least three	6839
distributions by the school district to the partnering community	6840
school during the fiscal year and shall require the initial	6841
distribution be made on or before the thirtieth day of July.	6842

(c) For the purposes of division (B) of this section, the	6843
number of resident students shall be the number of such students	6844
reported under section 3317.03 of the Revised Code and established	6845
by the department of education as of the date of receipt and	6846
deposit of the tax distribution.	6847

(4) To the extent an agreement whereby the qualifying school	6848
district and a community school endorse each other's programs is	6849
necessary for the community school to qualify as a partnering	6850
community school under division (B)(6)(b) of this section, the	6851
board of education of the school district shall certify to the	6852
department of education the agreement along with the determination	6853
that such agreement satisfies the requirements of that division.	6854
The board's determination is conclusive.	6855

(5) For the purposes of Chapter 3317. of the Revised Code or	6856
other laws referring to the "taxes charged and payable" for a	6857
school district, the taxes charged and payable for a qualifying	6858
school district that levies a tax under division (B) of this	6859
section includes only the taxes charged and payable under that	6860
levy for the current expenses of the school district, and does not	6861
include the taxes charged and payable for the current expenses of	6862
partnering community schools. The taxes charged and payable for	6863
the current expenses of partnering community schools shall not	6864
affect the calculation of "state education aid" as defined in	6865
section 5751.20 of the Revised Code.	6866

(6) As used in division (B) of this section:

6867

(a) "Qualifying school district" means a municipal school	6868
district, as defined in section 3311.71 of the Revised Code or a	6869
school district that has an average daily membership, as reported	6870
under division (A) of section 3317.03 of the Revised Code, greater	6871
than sixty thousand and the majority of the territory of which	6872
district is located in a city with a population greater than seven	6873
hundred thousand according to the most recent federal decennial	6874
census.	6875

(b) "Partnering community school" means a community school	6876
established under Chapter 3314. of the Revised Code that is	6877
located within the territory of the qualifying school district and	6878
that either is sponsored by the district or is a party to an	6879
agreement with the district whereby the district and the community	6880
school endorse each other's programs.	6881

(c) "Partnering community schools amount" means the product	6882
obtained, as of the receipt and deposit of the tax distribution,	6883
by multiplying the amount of a tax distribution by a fraction, the	6884
numerator of which is the number of mills per dollar of taxable	6885
value of the property tax to be allocated to partnering community	6886
schools, and the denominator of which is the total number of mills	6887
per dollar of taxable value authorized by the electors in the	6888
election held under division (B) of this section, each as set	6889
forth in the resolution levying the tax.	6890

(d) "Partnering community schools fund" means a separate fund	6891
established by the board of education of a qualifying school	6892
district for the deposit of partnering community school amounts	6893
under this section.	6894

(e) "Resident student" means a student enrolled in a	6895
partnering community school who is entitled to attend school in	6896
the qualifying school district under section 3313.64 or 3313.65 of	6897
the Revised Code.	6898

(f) "Tax distribution" means a distribution of proceeds of	6899
the tax authorized by division (B) of this section under section	6900
321.24 of the Revised Code and distributions that are attributable	6901
to that tax under sections 323.156 and 4503.068 of the Revised	6902
Code or other applicable law.	6903

(C) A resolution adopted under this section shall specify the	6904
date of holding the election, which shall not be earlier than	6905
ninety days after the adoption and certification of the resolution	6906
and which shall be consistent with the requirements of section	6907
3501.01 of the Revised Code.	6908

A resolution adopted under this section may propose to renew	6909
one or more existing levies imposed under division (A) or (B) of	6910
this section or to increase or decrease a single levy imposed	6911
under either such division.	6912

If the board of education imposes one or more existing levies	6913
for the purpose specified in division (F) of section 5705.19 of	6914
the Revised Code, the resolution may propose to renew one or more	6915
of those existing levies, or to increase or decrease a single such	6916
existing levy, for the purpose of general permanent improvements.	6917

If the resolution proposes to renew two or more existing	6918
levies, the levies shall be levied for the same purpose. The	6919
resolution shall identify those levies and the rates at which they	6920
are levied. The resolution also shall specify that the existing	6921
levies shall not be extended on the tax lists after the year	6922
preceding the year in which the renewal levy is first imposed,	6923
regardless of the years for which those levies originally were	6924
authorized to be levied.	6925

If the resolution proposes to renew an existing levy imposed	6926
under division (B) of this section, the rates allocated to the	6927
qualifying school district and to partnering community schools	6928
each may be increased or decreased or remain the same, and the	6929
total rate may be increased, decreased, or remain the same. The	6930
resolution and notice of election shall specify the number of the	6931
mills to be levied for the current expenses of the partnering	6932
community schools and the number of the mills to be levied for the	6933
current expenses of the qualifying school district.	6934

A resolution adopted under this section shall go into	6935
immediate effect upon its passage, and no publication of the	6936
resolution shall be necessary other than that provided for in the	6937
notice of election. A copy of the resolution shall immediately	6938
after its passing be certified to the board of elections of the	6939
proper county in the manner provided by section 5705.25 of the	6940
Revised Code. That section shall govern the arrangements for the	6941
submission of such question and other matters concerning the	6942
election to which that section refers, including publication of	6943
notice of the election, except that the election shall be held on	6944
the date specified in the resolution. In the case of a resolution	6945
adopted under division (B) of this section, the publication of	6946
notice of that election shall state the number of the mills to be	6947
levied for the current expenses of partnering community schools	6948
and the number of the mills to be levied for the current expenses	6949
of the qualifying school district. If a majority of the electors	6950
voting on the question so submitted in an election vote in favor	6951
of the levy, the board of education may make the necessary levy	6952
within the school district or, in the case of a qualifying library	6953
levy for the support of a library association or private	6954
corporation, within the association library district, at the	6955
additional rate, or at any lesser rate in excess of the ten-mill	6956
limitation on the tax list, for the purpose stated in the	6957
resolution. A levy for a continuing period of time may be reduced	6958
pursuant to section 5705.261 of the Revised Code. The tax levy	6959
shall be included in the next tax budget that is certified to the	6960
county budget commission.	6961

(D)(1) After the approval of a levy on the current tax list	6962
and duplicate for current expenses, for recreational purposes, for	6963
community centers provided for in section 755.16 of the Revised	6964
Code, or for a public library of the district under division (A)	6965
of this section, and prior to the time when the first tax	6966
collection from the levy can be made, the board of education may	6967
anticipate a fraction of the proceeds of the levy and issue	6968
anticipation notes in a principal amount not exceeding fifty per	6969
cent of the total estimated proceeds of the levy to be collected	6970
during the first year of the levy.	6971

(2) After the approval of a levy for general permanent	6972
improvements for a specified number of years or for permanent	6973
improvements having the purpose specified in division (F) of	6974
section 5705.19 of the Revised Code, the board of education may	6975
anticipate a fraction of the proceeds of the levy and issue	6976
anticipation notes in a principal amount not exceeding fifty per	6977
cent of the total estimated proceeds of the levy remaining to be	6978
collected in each year over a period of five years after the	6979
issuance of the notes.	6980

The notes shall be issued as provided in section 133.24 of	6981
the Revised Code, shall have principal payments during each year	6982
after the year of their issuance over a period not to exceed five	6983
years, and may have a principal payment in the year of their	6984
issuance.	6985

(3) After approval of a levy for general permanent	6986
improvements for a continuing period of time, the board of	6987
education may anticipate a fraction of the proceeds of the levy	6988
and issue anticipation notes in a principal amount not exceeding	6989
fifty per cent of the total estimated proceeds of the levy to be	6990
collected in each year over a specified period of years, not	6991
exceeding ten, after the issuance of the notes.	6992

The notes shall be issued as provided in section 133.24 of	6993
the Revised Code, shall have principal payments during each year	6994
after the year of their issuance over a period not to exceed ten	6995
years, and may have a principal payment in the year of their	6996
issuance.	6997

(4) After the approval of a levy on the current tax list and	6998
duplicate under division (B) of this section, and prior to the	6999
time when the first tax collection from the levy can be made, the	7000
board of education may anticipate a fraction of the proceeds of	7001
the levy for the current expenses of the school district and issue	7002
anticipation notes in a principal amount not exceeding fifty per	7003
cent of the estimated proceeds of the levy to be collected during	7004
the first year of the levy and allocated to the school district.	7005
The portion of the levy proceeds to be allocated to partnering	7006
community schools under that division shall not be included in the	7007
estimated proceeds anticipated under this division and shall not	7008
be used to pay debt charges on any anticipation notes.	7009

The notes shall be issued as provided in section 133.24 of	7010
the Revised Code, shall have principal payments during each year	7011
after the year of their issuance over a period not to exceed five	7012
years, and may have a principal payment in the year of their	7013
issuance.	7014

(E) The submission of questions to the electors under this	7015
section is subject to the limitation on the number of election	7016
dates established by section 5705.214 of the Revised Code.	7017

(F) The board of education of any school district that levies	7018
a tax under this section for the purpose of providing for school	7019
safety and security may report to the department of education how	7020
the district is using revenue from that tax.	7021

Section 2. That existing sections 145.012, 145.09, 145.191,	7022
145.194, 145.28, 145.29, 145.295, 145.297, 145.2914, 145.2915,	7023
145.31, 145.311, 145.33, 145.35, 145.362, 145.363, 145.37,	7024
145.384, 145.391, 145.40, 145.43, 145.431, 145.45, 145.46,	7025
145.563, 145.58, 145.581, 145.584, 145.63, 145.64, 145.82, 145.88,	7026
145.92, 145.95, 171.04, 311.01, 742.53, 742.63, 3307.04, 3307.35,	7027
3307.39, 3307.41, 3307.56, 3307.563, 3307.57, 3307.58, 3307.62,	7028
3307.66, 3307.70, 3307.71, 3307.711, 3307.73, 3309.01, 3309.11,	7029
3309.26, 3309.261, 3309.28, 3309.301, 3309.35, 3309.381, 3309.42,	7030
3309.45, 3309.49, 3309.51, 3309.55, 3309.56, 3309.57, 3309.571,	7031
3309.691, 3309.82, 5505.03, 5505.04, 5505.12, 5505.14, 5505.15,	7032
5505.16, 5505.17, 5505.174, 5505.18, 5505.33, 5505.34, 5505.59,	7033
and 5705.21 and sections 145.402, 3307.561, and 3309.43 of the	7034
Revised Code are hereby repealed.	7035

Section 3. Notwithstanding sections 742.03 and 742.04 of the	7036
Revised Code, the individual who receives the second highest	7037
number of votes in the 2015 election for the two employee member	7038
firefighter positions on the Board of Trustees of the Ohio Police	7039
and Fire Pension Fund shall serve a term of three years.	7040

Section 4. Section 742.63 of the Revised Code is presented in	7041
this act as a composite of the section as amended by both Sub.	7042
S.B. 340 and Sub. S.B. 343 of the 129th General Assembly. The	7043
General Assembly, applying the principle stated in division (B) of	7044
section 1.52 of the Revised Code that amendments are to be	7045
harmonized if reasonably capable of simultaneous operation, finds	7046
that the composite is the resulting version of the section in	7047
effect prior to the effective date of the section as presented in	7048
this act.	7049

Section 5705.21 of the Revised Code is presented in this act	7050
as a composite of the section as amended by both Am. Sub. H.B. 59	7051
and Sub. H.B. 167 of the 130th General Assembly. The General	7052
Assembly, applying the principle stated in division (B) of section	7053
1.52 of the Revised Code that amendments are to be harmonized if	7054
reasonably capable of simultaneous operation, finds that the	7055
composite is the resulting version of the section in effect prior	7056
to the effective date of the section as presented in this act.	7057