Sub. S. B. No. 42 As Reported by the House Ways and Means Committee

As Reported by the House Ways and Means 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, and 5505.59;

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, and to

change the optional qualifications to be eligible

for the office of sheriff

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

Section 1. That sections 145.012, 145.09, 145.191, 145.194,	27
145.28, 145.29, 145.295, 145.297, 145.2914, 145.2915, 145.31,	28
145.311, 145.33, 145.35, 145.362, 145.363, 145.37, 145.384,	29
145.391, 145.40, 145.43, 145.431, 145.45, 145.46, 145.563, 145.58,	30
145.581, 145.584, 145.63, 145.64, 145.82, 145.88, 145.92, 145.95,	31
171.04, 311.01, 742.53, 742.63, 3307.04, 3307.35, 3307.39,	32
3307.41, 3307.56, 3307.563, 3307.57, 3307.58, 3307.62, 3307.66,	33
3307.70, 3307.71, 3307.711, 3307.73, 3309.01, 3309.11, 3309.26,	34
3309.261, 3309.28, 3309.301, 3309.35, 3309.381, 3309.42, 3309.45,	35
3309.49, 3309.51, 3309.55, 3309.56, 3309.57, 3309.571, 3309.691,	36
3309.82, 5505.03, 5505.04, 5505.12, 5505.14, 5505.15, 5505.16,	37
5505.17, 5505.174, 5505.18, 5505.33, 5505.34, and 5505.59 be	38
amended and sections 4113.75 and 5505.112 and new sections	39
145.402, 3307.561, and 3309.43 of the Revised Code be enacted as	40
follows:	41

Sec. 145.012. (A) "Public employee," as defined in division	42
(A) of section 145.01 of the Revised Code, does not include any	43
person:	44

(1) Who is employed by a private, temporary-help service and	45
performs services under the direction of a public employer or is	46
employed on a contractual basis as an independent contractor under	47
a personal service contract with a public employer;	48

(2) Who is an emergency employee serving on a temporary basis	49
in case of fire, snow, earthquake, flood, or other similar	50
emergency;	51

(3) Who is employed in a program established pursuant to the	52
"Job Training Partnership Act," 96 Stat. 1322 (1982), 29 U.S.C.A.	53
1501;	54

(4) Who is an appointed member of either the motor vehicle	55
salvage dealers board or the motor vehicle dealer's board whose	56
rate and method of payment are determined pursuant to division (J)	57
of section 124.15 of the Revised Code;	58

(5) Who is employed as an election worker and paid less than	59
~~five~~six hundred dollars per calendar year for that service;	60

(6) Who is employed as a firefighter in a position requiring	61
satisfactory completion of a firefighter training course approved	62
under former section 3303.07 or section 4765.55 of the Revised	63
Code or conducted under section 3737.33 of the Revised Code except	64
for the following:	65

(a) Any firefighter who has elected under section 145.013 of	66
the Revised Code to remain a contributing member of the public	67
employees retirement system;	68

(b) Any firefighter who was eligible to transfer from the	69
public employees retirement system to the Ohio police and fire	70
pension fund under section 742.51 or 742.515 of the Revised Code	71
and did not elect to transfer;	72

(c) Any firefighter who has elected under section 742.516 of	73
the Revised Code to transfer from the Ohio police and fire pension	74
fund to the public employees retirement system.	75

(7) Who is a member of the board of health of a city or	76
general health district, which pursuant to sections 3709.051 and	77
3709.07 of the Revised Code includes a combined health district,	78
and whose compensation for attendance at meetings of the board is	79
set forth in division (B) of section 3709.02 or division (B) of	80
section 3709.05 of the Revised Code, as appropriate;	81

(8) Who participates in an alternative retirement plan	82
established under Chapter 3305. of the Revised Code;	83

(9) Who is a member of the board of directors of a sanitary	84
district established under Chapter 6115. of the Revised Code;	85

(10) Who is a member of the unemployment compensation	86
advisory council;	87

(11) Who is an employee, officer, or governor-appointed	88
member of the board of directors of the nonprofit corporation	89
formed under section 187.01 of the Revised Code;	90

(12) Who is employed by the nonprofit entity established to	91
provide advocacy services and a client assistance program for	92
people with disabilities under Section 319.20 of Am. Sub. H.B. 153	93
of the 129th general assembly and whose employment begins on or	94
after October 1, 2012.	95

(B) No inmate of a correctional institution operated by the	96
department of rehabilitation and correction, no patient in a	97
hospital for the mentally ill or criminally insane operated by the	98
department of mental health and addiction services, no resident in	99
an institution for the mentally retarded operated by the	100
department of developmental disabilities, no resident admitted as	101
a patient of a veterans' home operated under Chapter 5907. of the	102
Revised Code, and no resident of a county home shall be considered	103
as a public employee for the purpose of establishing membership or	104
calculating service credit or benefits under this chapter. Nothing	105
in this division shall be construed to affect any service credit	106
attained by any person who was a public employee before becoming	107
an inmate, patient, or resident at any institution listed in this	108
division, or the payment of any benefit for which such a person or	109
such a person's beneficiaries otherwise would be eligible.	110

Sec. 145.09. The public employees retirement board shall	111
elect from its membership a chairperson~~, and~~. The board shall	112
appoint an executive director who shall serve as secretary to the	113
board, an actuary, and other employees as necessary for the	114
transaction of the business of the public employees retirement	115
system. The compensation of all persons so appointed shall be	116
fixed by the board. Such persons appointed by the board are not	117
employees of the state and are not subject to Chapter 124. of the	118
Revised Code.	119

If the board provides health care coverage to employees of	120
the retirement system, it may permit employees of the Ohio public	121
employees deferred compensation board to participate.	122

Effective ninety days after September 15, 2004, the board may	123
not employ a state retirement system investment officer, as	124
defined in section 1707.01 of the Revised Code, who does not hold	125
a valid state retirement system investment officer license issued	126
by the division of securities in the department of commerce.	127

Every expense voucher of an employee, officer, or board	128
member of the public employees retirement system shall itemize all	129
purchases and expenditures.	130

The board shall perform other functions as required for the	131
proper execution of this chapter, and may adopt rules in	132
accordance with section 111.15 of the Revised Code for the proper	133
administration and management of this chapter.	134

The board may take all appropriate action to avoid payment by	135
the system or its members of federal or state income taxes on	136
contributions to the system or amounts earned on such	137
contributions.	138

Notice of proposed rules shall be given to interested parties	139
and rules adopted by the board shall be published and otherwise	140
made available. When it files a rule with the joint committee on	141
agency rule review pursuant to section 111.15 of the Revised Code,	142
the board shall submit to the Ohio retirement study council a copy	143
of the full text of the rule, and if applicable, a copy of the	144
rule summary and fiscal analysis required by division (B) of	145
section 127.18 of the Revised Code.	146

The board may sue and be sued, plead and be impleaded,	147
contract and be contracted with. All of its business shall be	148
transacted, all of its funds invested, all warrants for money	149
drawn and payments made, and all of its cash and securities and	150
other property shall be held in the name of the board, or in the	151
name of its nominee, provided that nominees are authorized by	152
retirement board resolution for the purpose of facilitating the	153
ownership and transfer of investments.	154

If the Ohio retirement study council establishes a uniform	155
format for any report the board is required to submit to the	156
council, the board shall submit the report in that format.	157

Sec. 145.191. (A) Except as provided in division (F) of this	158
section, a public employees retirement system member or	159
contributor who, as of December 31, 2002, has less than five years	160
of total service credit is eligible to make an election under this	161
section. A member or contributor who is employed in more than one	162
position subject to this chapter is eligible to make only one	163
election. The election applies to all positions subject to this	164
chapter.	165

Not later than June 30, 2003, an eligible member or	166
contributor may elect to participate in a PERS defined	167
contribution plan. Unless a form evidencing an election is	168
received by the system on or before that date, a member or	169
contributor to whom this section applies is deemed to have elected	170
to continue participating in the PERS defined benefit plan.	171

(B) An election under this section shall be made in writing	172
on a form provided by the system and filed with the system.	173

(C) On the request of a member or contributor who made an	174
election under this section, the system shall credit to the plan	175
elected the accumulated contributions standing to the credit of	176
the member or contributor in the employees' savings fund and	177
cancel all service credit and eligibility for any payment,	178
benefit, or right under the PERS defined benefit plan.	179

(D) For each member or contributor who elected under this	180
section to participate in a PERS defined contribution plan and	181
made a request under division (C) of this section, any additional	182
deposits that were made by the member or contributor prior to	183
April 6, 2007, under the version of division (C) of section 145.23	184
of the Revised Code as it existed immediately prior to that date	185
shall be credited to the defined contribution plan.	186

(E) An election under this section is effective as of January	187
1, 2003, and, except as provided in section 145.814 of the Revised	188
Code or rules governing the PERS defined benefit plan, is	189
irrevocable on receipt by the system.	190

(F) An election may not be made under this section by a	191
member or contributor who is either of the following:	192

(1) A PERS retirant who is a member under division ~~(D)~~(C) of	193
section 145.38 of the Revised Code;	194

(2) A PERS law enforcement officer or a PERS public safety	195
officer.	196

Sec. 145.194. (A) A member participating in a PERS defined	197
contribution plan ~~at the time of commencing employment as~~who	198
becomes a PERS law enforcement officer or PERS public safety	199
officer shall cease making contributions to ~~that~~a PERS defined	200
contribution plan. During employment as a PERS law enforcement	201
officer or a PERS public safety officer and any concurrent	202
employment in a position subject to this chapter, the member shall	203
contribute only to the PERS defined benefit plan.	204

(B) A member described in division (A) of this section with	205
contributions standing to the member's credit in a PERS defined	206
contribution plan may elect to have those contributions deposited	207
and credited in the PERS defined benefit plan in accordance with	208
section 145.814 of the Revised Code and rules governing the PERS	209
defined benefit plan.	210

Sec. 145.28. (A)~~(1)~~As used in this section, "paying system"	211
and "transferring system" have the same meanings as in section	212
145.37 of the Revised Code.	213

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	214
section, a member of the public employees retirement system with	215
at least eighteen months of contributing service in the system,	216
the state teachers retirement system, or the school employees	217
retirement system who exempted self from membership in one or more	218
of the systems pursuant to section 145.03 or 3309.23 of the	219
Revised Code, or former section 3307.25 or 3309.25 of the Revised	220
Code, or was exempt under section 3307.24 of the Revised Code, may	221
purchase credit for each year or portion of a year of service for	222
which the member was exempted.	223

(2) A member may not purchase credit under this section for	224
exempted service if the service was exempted from contribution	225
under section 145.03 of the Revised Code and subject to the tax on	226
wages imposed by the "Federal Insurance Contributions Act," 68A	227
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended.	228

~~(B)~~(C) Credit shall be purchased under this section in	229
accordance with section 145.29 of the Revised Code.	230

~~(C)~~(D) Credit purchasable under this section shall not exceed	231
one year of service for any twelve-month period. If the period of	232
service for which credit is purchasable under this section is	233
concurrent with a period of service that will be used to calculate	234
a retirement benefit from this system, the state teachers	235
retirement system, or school employees retirement system, the	236
amount of the credit shall be adjusted in accordance with rules	237
adopted by the public employees retirement board.	238

A member who is also a member of the state teachers	239
retirement system or the school employees retirement system shall	240
purchase credit for any service for which the member exempted self	241
under section 145.03 or 3309.23 of the Revised Code, or former	242
section 3307.25 or 3309.25 of the Revised Code, or was exempt	243
under section 3307.24 of the Revised Code, from the retirement	244
system in which the member has the greatest number of years of	245
service credit. If the member receives benefits under section	246
145.37 of the Revised Code, the ~~retirement~~ system that ~~determines~~	247
~~and pays the benefit~~is the paying system under that section shall	248
receive from the ~~other~~ system or systems that are transferring	249
systems the amounts paid by the member for purchase of credit for	250
exempt service plus interest at the actuarial assumption rate of	251
the transferring system ~~paying that amount~~. The interest shall be	252
for the period beginning on the date of the member's last payment	253
for purchase of the credit and ending on the date of the member's	254
retirement.	255

~~(D) If a member dies or withdraws from service, any payment~~	256
~~made by the member under this section shall be considered as~~	257
~~accumulated contributions of the member.~~	258

(E) The retirement board shall adopt rules to implement this	259
section.	260

Sec. 145.29. (A) A member of the public employees retirement	261
system who elects to purchase or otherwise obtain service credit	262
under section 145.28, 145.291, 145.292, 145.293, or 145.299 or	263
division (G) of section 145.47 of the Revised Code shall do both	264
of the following:	265

(1) Submit a request to the public employees retirement board	266
in a manner or form approved by the board;	267

(2) For each year, or portion of a year, of credit purchased	268
or otherwise obtained, pay to the employees' savings fund an	269
amount specified by the board that is equal to one hundred per	270
cent of the additional liability resulting from purchasing or	271
obtaining that year or portion of a year of credit as determined	272
by an actuary employed by the board.	273

(B) Subject to board rules, a member may choose to purchase	274
or otherwise obtain in any one payment only part of any service	275
credit listed in division (A) of this section.	276

(C) If a member dies or withdraws from service, any payment	277
made by the member to purchase or obtain any service credit listed	278
in division (A) of this section shall be considered as accumulated	279
contributions of the member.	280

Sec. 145.295. (A) As used in this section and section	281
145.2913 of the Revised Code:	282

(1) "Uniform retirement system" or "uniform system" means the	283
Ohio police and fire pension fund or state highway patrol	284
retirement system.	285

(2) "Military service credit" means credit purchased or	286
obtained under this chapter or Chapter 742. or 5505. of the	287
Revised Code for service in the armed forces of the United States.	288

(B) A member of the public employees retirement system who	289
has contributions on deposit with, but is no longer contributing	290
to, a uniform retirement system shall, in computing years of	291
service, be given full credit for service credit earned under	292
Chapter 742. or 5505. of the Revised Code or for military service	293
credit if a transfer to the public employees retirement system is	294
made under this division. At the request of the member a transfer	295
shall be made if all of the following conditions are met:	296

(1) The member's service credit in the public employees	297
retirement system is greater than the amount of credit that would	298
be transferred under this division.	299

(2) The member is eligible, or with the credit will be	300
eligible, for a retirement or disability benefit.	301

~~(2)~~(3) The member agrees to retire or accept a disability	302
benefit not later than ninety days after receiving notice from the	303
public employees retirement system that the credit has been	304
obtained.	305

~~(3)~~(4) For each year of service the uniform system transfers	306
to the public employees retirement system the sum of the	307
following:	308

(a) An amount equal to the member's accumulated contributions	309
to the uniform system making the transfer and any payments by the	310
member for military service credit;	311

(b) An amount equal to the lesser of the employer's	312
contributions to the uniform system or the appropriate employer	313
contribution under section 145.48 or 145.49 of the Revised Code;	314

(c) Interest, determined as provided in division (H) of this	315
section, on the amounts specified in divisions (B)~~(3)~~(4)(a) and	316
(b) of this section for the period from the last day of the year	317
for which the service credit in the uniform system was earned or	318
in which the military service credit was purchased or obtained to	319
the date the transfer is made.	320

(C) A member of the public employees retirement system who	321
has at least eighteen months of contributing service credit with	322
the public employees retirement system, who is a former member of	323
a uniform retirement system, and who has received a refund of the	324
member's accumulated contributions to that uniform system may	325
obtain credit for service credit earned under Chapter 742. or	326
5505. of the Revised Code or for military service credit if all of	327
the following conditions are met:	328

(1) The member's service credit in the public employees	329
retirement system is greater than the amount of credit that would	330
be transferred under this division.	331

(2) The member is eligible, or with the credit will be	332
eligible, for a retirement or disability benefit.	333

~~(2)~~(3) The member agrees to retire or accept a disability	334
benefit not later than ninety days after receiving notice from the	335
public employees retirement system that the credit has been	336
obtained.	337

~~(3)~~(4) For each year of service, the public employees	338
retirement system receives the sum of the following:	339

(a) An amount, which shall be paid by the member, equal to	340
the amount refunded by the uniform system to the member for that	341
year for accumulated contributions and payments for military	342
service credit, with interest at a rate established by the public	343
employees retirement board on that amount from the date of the	344
refund to the date of the payment;	345

(b) Interest, which shall be transferred by the uniform	346
system, on the amount refunded to the member that is attributable	347
to the year of service from the last day of the year for which the	348
service credit was earned or in which payment was made for	349
military service credit to the date the refund was made;	350

(c) An amount, which shall be transferred by the uniform	351
system, equal to the lesser of the employer's contributions to the	352
uniform system or the appropriate employer contribution under	353
section 145.48 or 145.49 of the Revised Code, with interest on	354
that amount from the last day of the year for which the service	355
credit was earned or in which payment was made for military	356
service credit to the date of the transfer.	357

On receipt of payment from the member, the public employees	358
retirement system shall notify the uniform system, which, on	359
receipt of the notice, shall make the transfer required by this	360
division. Interest shall be determined as provided in division (H)	361
of this section.	362

(D) A member of the public employees retirement system who	363
purchased credit under former division (A)(1) of this section, as	364
it existed before August 25, 1995, for service as a member of a	365
uniform retirement system may elect to have the amount the member	366
paid for this service credit refunded to the member under this	367
division if the member agrees to repurchase this service credit	368
pursuant to division (C) of this section.	369

(E) Service credit purchased or otherwise obtained under this	370
section shall be considered the equivalent of Ohio service credit.	371

The public employees retirement system shall withdraw the	372
credit and refund all amounts paid or transferred under this	373
section if either of the following occurs:	374

(1) The member fails to retire or accept a disability benefit	375
not later than ninety days after receiving notice from the public	376
employees retirement system that credit has been obtained.	377

(2) The member's application for a disability benefit is	378
denied.	379

A member may choose to purchase only part of the credit the	380
member is eligible to purchase under division (C) of this section,	381
subject to rules of the public employees retirement board. A	382
member is ineligible to purchase or otherwise obtain credit under	383
this section for service to be used in calculation of any	384
retirement benefit currently being paid or payable to the member	385
in the future under any other retirement program or for service	386
credit that may be transferred under section 145.2913 of the	387
Revised Code.	388

(F) If a member of the public employees retirement system who	389
is not a current contributor elects to receive credit under	390
section 742.21 or 5505.40 of the Revised Code for service for	391
which the member contributed to the system or made payment for	392
military service credit, the system shall transfer to the Ohio	393
police and fire pension fund or the state highway patrol	394
retirement system, as applicable, the amount specified in division	395
(D) of section 742.21 or division (B)(2) of section 5505.40 of the	396
Revised Code.	397

(G) A member of the public employees retirement system who	398
earned service credit in the public employees retirement system	399
for full-time service as a township or municipal police officer	400
and received service credit in the Ohio police and fire pension	401
fund under section 742.511 or 742.512 of the Revised Code for such	402
service may elect to have the credit restored as public employees	403
retirement system service credit by paying the public employees	404
retirement system an amount equal to the accumulated contributions	405
paid by the member to the Ohio police and fire pension fund under	406
section 742.511 or 742.512 of the Revised Code. When such an	407
election is made, the Ohio police and fire pension fund shall	408
transfer to the public employees retirement system the amount	409
previously transferred under section 742.511 or 742.512 of the	410
Revised Code from the public employees retirement system to the	411
Ohio police and fire pension fund.	412

(H) Interest charged under this section shall be calculated	413
separately for each year of service credit. Unless otherwise	414
specified in this section, it shall be calculated at the lesser of	415
the actuarial assumption rate for that year of the public	416
employees retirement system or of the uniform retirement system in	417
which the credit was earned. The interest shall be compounded	418
annually.	419

(I) At the request of the public employees retirement system,	420
the uniform retirement system shall certify to the public	421
employees retirement system a copy of the records of the service	422
and contributions of a public employees retirement system member	423
who seeks service credit under this section.	424

Sec. 145.297. (A) As used in this section, "employing unit"	425
means:	426

(1) A municipal corporation, agency of a municipal	427
corporation designated by the legislative authority, park	428
district, conservancy district, sanitary district, health	429
district, township, department of a township designated by the	430
board of township trustees, metropolitan housing authority, public	431
library, county law library, union cemetery, joint hospital, or	432
other political subdivision or unit of local government.	433

(2) With respect to state employees, any entity of the state	434
including any department, agency, institution of higher education,	435
board, bureau, commission, council, office, or administrative body	436
or any part of such entity that is designated by the entity as an	437
employing unit.	438

(3)(a) With respect to employees of a board of alcohol, drug	439
addiction, and mental health services, that board.	440

(b) With respect to employees of a county board of	441
developmental disabilities, that board.	442

(c) With respect to other county employees, the county or any	443
county agency designated by the board of county commissioners.	444

(4) In the case of an employee whose employing unit is in	445
question, the employing unit is the unit through whose payroll the	446
employee is paid.	447

(B) An employing unit may establish a retirement incentive	448
plan for its eligible employees. In the case of a county or county	449
agency, decisions on whether to establish a retirement incentive	450
plan for any employees other than employees of a board of alcohol,	451
drug addiction, and mental health services or county board of	452
developmental disabilities and on the terms of the plan shall be	453
made by the board of county commissioners. In the case of a	454
municipal corporation or an agency of a municipal corporation,	455
decisions on whether to establish a retirement incentive plan and	456
on the terms of the plan shall be made by the legislative	457
authority.	458

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

459

A retirement incentive plan shall provide for purchase by the	460
employing unit of service credit for eligible employees who elect	461
to participate in the plan and for payment by the employing unit	462
of the entire cost of the service credit purchased.	463

Every retirement incentive plan shall remain in effect for at	464
least one year. The employing unit shall give employees at least	465
thirty days' notice before terminating the plan.	466

Every retirement incentive plan shall include provisions for	467
the timely and impartial resolution of grievances and disputes	468
arising under the plan.	469

No employing unit shall have more than one retirement	470
incentive plan in effect at any time.	471

(C) Any classified or unclassified employee of the employing	472
unit who is a member of the public employees retirement system	473
shall be eligible to participate in the retirement incentive plan	474
established by the employee's employing unit if the employee meets	475
the following criteria:	476

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

477

(a) An elected official;

478

(b) A member of a board or commission;

479

480

(d) A person appointed to serve a term of fixed length, other	481
than a person appointed and employed by the person's employing	482
unit.	483

(2) The employee is or will be eligible to retire under	484
section 145.33~~, 145.332,~~ or 145.37 of the Revised Code on or	485
before the date of termination of the retirement incentive plan.	486
Service credit to be purchased for the employee under the	487
retirement incentive plan shall be included in making such	488
determination.	489

(3) The employee agrees to retire under section 145.33,	490
~~145.332,~~ or 145.37 of the Revised Code within ninety days after	491
receiving notice from the public employees retirement system that	492
service credit has been purchased for the employee under this	493
section.	494

Participation in the plan shall be available to all eligible	495
employees except that the employing unit may limit the number of	496
participants in the plan to a specified percentage of its	497
employees who are members of the public employees retirement	498
system on the date the plan goes into effect. The percentage shall	499
not be less than five per cent of such employees. If participation	500
is limited, employees with more total service credit have the	501
right to elect to participate before employees with less total	502
service credit. In the case of employees with the same total	503
service credit, employees with a greater length of service with	504
the employing unit have the right to elect to participate before	505
employees with less service with the employing unit. Employees	506
with less than eighteen months of service with the employing unit	507
have the right to elect to participate only after all other	508
eligible employees have been given the opportunity to elect to	509
participate. For the purpose of determining which employees may	510
participate in a plan, total service credit includes service	511
credit purchased by the employee under this chapter after the date	512
on which the plan is established.	513

A retirement incentive plan that limits participation may	514
provide that an employee who does not notify the employing unit of	515
the employee's decision to participate in the plan within a	516
specified period of time will lose priority to participate in the	517
plan ahead of other employees with less seniority. The time given	518
to an employee to elect to participate ahead of other employees	519
shall not be less than thirty days after the employee receives	520
written notice that the employee may participate in the plan.	521

(D) A retirement incentive plan shall provide for purchase of	522
the same amount of service credit for each participating employee,	523
except that the employer may not purchase more service credit for	524
any employee than the lesser of the following:	525

(1) Five years of service credit;

526

(2) An amount of service credit equal to one-fifth of the	527
total service credited to the participant under this chapter,	528
exclusive of service credit purchased under this section.	529

For each year of service credit purchased under this section,	530
the employing unit shall pay an amount equal to the additional	531
liability resulting from the purchase of that year of service	532
credit, as determined by an actuary employed by the public	533
employees retirement board.	534

(E) Upon the election by an eligible employee to participate	535
in the retirement incentive plan, the employee and the employing	536
unit shall agree upon a date for payment or contracting for	537
payment in installments to the public employees retirement system	538
of the cost of the service credit to be purchased. The employing	539
unit shall submit to the public employees retirement system a	540
written request for a determination of the cost of the service	541
credit, and within forty-five days after receiving the request,	542
the board shall give the employing unit written notice of the	543
cost.	544

The employing unit shall pay or contract to pay in	545
installments the cost of the service credit to be purchased to the	546
public employees retirement system on the date agreed to by the	547
employee and the employing unit. The payment shall be made in	548
accordance with rules adopted by the public employees retirement	549
board. The rules may provide for payment in installments and for	550
crediting the purchased credit to the employee's account upon the	551
employer's contracting to pay the cost in installments. The board	552
shall notify the member when the member is credited with service	553
purchased under this section. If the employee does not retire	554
within ninety days after receiving notice that the employee has	555
been credited with the purchased service credit, the system shall	556
refund to the employing unit the amount paid for the service	557
credit.	558

No payment made to the public employees retirement system	559
under this section shall affect any payment required by section	560
145.48 of the Revised Code.	561

(F) For the purpose of determining whether the cost of a	562
retirement incentive plan established by a county or county agency	563
under this section is an allowable cost for the purpose of federal	564
funding for any year, the cost shall be considered abnormal or	565
mass severance pay only if fifteen per cent or more of the county	566
or county agency's employees participate in the plan in that year.	567

Nothing in this division shall relieve a county or county	568
agency from seeking federal approval for any early retirement	569
incentive plan that uses federal dollars in accordance with	570
federal law.	571

Sec. 145.2914. (A) The public employees retirement board may	572
adopt rules in accordance with section 145.09 of the Revised Code	573
to establish a program under which service credit earned under	574
section 145.33 of the Revised Code or division (A)(2),	575
(B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised Code is	576
treated as service credit earned under division (A)(1), (B)(1)(a),	577
or (C)(1) of section 145.332 of the Revised Code if the member	578
elects to do one of the following:	579

(1) Have the amount of service credit earned under section	580
145.33 of the Revised Code or division (A)(2), (B)~~(2)~~(1)(b), or	581
(C)(2) of section 145.332 of the Revised Code reduced so there is	582
no additional liability to the public employees retirement system;	583

(2) Make payment to the public employees retirement system in	584
accordance with the rules. The number of years of service credit	585
earned under section 145.33 of the Revised Code or division	586
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	587
Code that may be treated as service credit earned under division	588
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	589
Code shall not exceed five.	590

(B) If the board adopts rules under division (A) of this	591
section, all of the following apply to payments made under	592
division (A)(2) of this section:	593

(1) For each year or portion of a year of service credit	594
earned under section 145.33 of the Revised Code or division	595
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	596
Code that is to be treated as service credit earned under division	597
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	598
Code, the member shall pay to the retirement system an amount	599
specified by the retirement board that is not less than one	600
hundred per cent of the additional liability resulting from the	601
purchase of that year, or portion of a year, of service.	602

(2) Any amounts paid under this section shall be credited to	603
the employees' savings fund.	604

(3) The amounts paid by the member under this section are	605
subject to the limits established by division (n) of section 415	606
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	607
415(n), as amended.	608

(C) A member may make the election authorized by this section	609
if the member is eligible to retire under this chapter or will	610
become eligible to retire as a result of the election. The member	611
shall agree to retire not later than ninety days after making the	612
election under division (A)(1) of this section or receiving notice	613
of the additional liability specified under division (B)(1) of	614
this section. If the member makes the election under division	615
(A)(2) of this section, payment shall be made in full for any	616
credit earned under section 145.33 of the Revised Code or division	617
(A)(2), (B)~~(2)~~(1)(b), or (C)(2) of section 145.332 of the Revised	618
Code that is to be treated as service credit earned under division	619
(A)(1), (B)(1)(a), or (C)(1) of section 145.332 of the Revised	620
Code, but the member may choose to make payment for only part of	621
the credit for which the member is eligible.	622

(D) If the member does not retire not later than ninety days	623
after making the election under division (A)(1) of this section or	624
the payment under division (A)(2) of this section, the system	625
shall refund any payment and shall not treat the credit as service	626
credit earned under division (A)(1), (B)(1)(a), or (C)(1) of	627
section 145.332 of the Revised Code.	628

(E) The board's rules may deal with any other matter	629
necessary to implement this section.	630

Sec. 145.2915. (A) As used in this section, "workers'	631
compensation" means benefits paid under Chapter 4121. or 4123. of	632
the Revised Code.	633

(B) A member of the public employees retirement system may	634
purchase service credit under this section for any period during	635
which the member was out of service with a public employer and	636
receiving workers' compensation if the member returns to	637
employment covered by this chapter.	638

639

(1) If the member is employed by one public employer, for	640
each year of credit, the member shall pay to the system for credit	641
to the employees' savings fund an amount equal to the employee	642
contribution required under section 145.47 of the Revised Code	643
that would have been paid had the member not been out of service	644
based on the salary of the member before the member was out of	645
service. To this amount shall be added an amount equal to compound	646
interest at a rate established by the public employees retirement	647
board from the first date the member was out of service to the	648
final date of payment.	649

(2) If the member is employed by more than one public	650
employer, the member is eligible to purchase credit under this	651
section and make payments under division (C)(1)~~(b)~~ of this section	652
only for the position for which the member received workers'	653
compensation. For each year of credit, the member shall pay to the	654
system for credit to the employees' savings fund an amount equal	655
to the employee contribution required under section 145.47 of the	656
Revised Code that would have been paid had the member not been out	657
of service based on the salary of the member earned for the	658
position for which the member received workers' compensation	659
before the member was out of service. To this amount shall be	660
added an amount equal to compound interest at a rate established	661
by the public employees retirement board from the first date the	662
member was out of service to the final date of payment.	663

(D) The member may choose to purchase only part of such	664
credit in any one payment, subject to board rules.	665

(E) If a member makes a payment under division (C) of this	666
section, the employer to which workers' compensation benefits are	667
attributed shall pay to the system for credit to the employers'	668
accumulation fund an amount equal to the employer contribution	669
required under section 145.48 or 145.49 of the Revised Code	670
corresponding to that payment that would have been paid had the	671
member not been out of service based on the salary of the member	672
before the member was out of service.	673

Compound interest at a rate established by the board from the	674
later of the member's date of re-employment or ~~the effective date~~	675
~~of this section~~January 7, 2013, to the date of payment shall be	676
added to this amount if the employer pays all or any portion of	677
the amount ~~later than~~after the end of the earlier of the	678
following:	679

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

680

(2) A period that is three times the period during which the	681
member was out of service and receiving workers' compensation	682
~~beginning from~~.	683

The period described in division (E)(1) or (2) of this	684
section begins with the later of the member's date of	685
re-employment or ~~the effective date of this section~~January 7,	686
2013.	687

(F) The number of years purchased under this section shall	688
not exceed three. Credit purchased under this section may be	689
combined pursuant to section 145.37 of the Revised Code with	690
credit purchased or obtained under Chapter 3307. or 3309. of the	691
Revised Code for periods the member was out of service and	692
receiving workers' compensation, but not more than a total of	693
three years of credit may be used in determining retirement	694
eligibility or calculating benefits under section 145.37 of the	695
Revised Code.	696

Sec. 145.31. (A)(1) Except as provided in this section, a	697
member or former member of the public employees retirement system	698
with at least eighteen months of contributing service credit in	699
this system, the state teachers retirement system, the school	700
employees retirement system, the Ohio police and fire pension	701
fund, or the state highway patrol retirement system, after the	702
withdrawal of accumulated contributions and cancellation of	703
service credit in this system, may restore such service credit by	704
redepositing the amount withdrawn, with interest on such amount	705
compounded annually at a rate to be determined by the public	706
employees retirement board from the first day of the month of	707
withdrawal to and including the month of redeposit. ~~The~~	708

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

709

~~(1)~~(a) The amount that equals the amount, if any, included	710
under section 145.401 of the Revised Code in the withdrawal of	711
accumulated contributions under section 145.40 of the Revised Code	712
shall be credited to the employers' accumulation fund.	713

~~(2)~~(b) The remaining amount shall be credited to the member's	714
account in the employees' savings fund.	715

(3) If the accumulated contributions were withdrawn under	716
section 145.402 of the Revised Code, service credit may be	717
restored only if the member or former member accrued eighteen	718
months of contributing service credit after withdrawal of the	719
accumulated contributions.	720

(B) The member may choose to purchase only part of ~~such~~the	721
credit available under this section in any one payment, subject to	722
board rules. Except for any amount included under section 145.401	723
of the Revised Code in the withdrawal of accumulated contributions	724
under section 145.40 of the Revised Code, the total payment to	725
restore canceled service credit, plus any interest credited	726
thereto, shall be considered as accumulated contributions of the	727
member. If a former member is eligible to buy the service credit	728
as a member of the Ohio police and fire pension fund, state	729
highway patrol retirement system, or the city of Cincinnati	730
retirement system, the former member is ineligible to restore that	731
service credit under this section.	732

(C) Any employee who has been refunded the employee's	733
accumulated contributions to the public employees retirement	734
system solely by reason of membership in a former firemen's relief	735
and pension fund or a former police relief and pension fund may	736
restore membership in the public employees retirement system by	737
redepositing with the system the amount refunded, with interest on	738
such amount compounded annually at a rate to be determined by the	739
board from the month of refund to and including the month of	740
redeposit. The member may choose to purchase only part of such	741
credit in any one payment, subject to board rules.	742

~~(B)~~(D) In lieu of an amount required by division (A) of this	743
section, the board may by rule require deposit of an amount	744
specified in the rule. The amount shall not exceed the additional	745
liability to the retirement system that results from granting the	746
credit.	747

Sec. 145.311. (A) A member of the public employees	748
retirement system who has at least eighteen months of contributing	749
service credit in the system, the Ohio police and fire pension	750
fund, school employees retirement system, state teachers	751
retirement system, or state highway patrol retirement system, and	752
is a former member of or no longer contributing to the school	753
employees retirement system or state teachers retirement system	754
may restore service credit under section 3307.71 or 3309.26 of the	755
Revised Code by making payments pursuant to this section through a	756
payroll deduction plan established under section 145.294 of the	757
Revised Code. A member seeking to restore this service credit	758
shall notify the public employees retirement system on a form	759
approved by the public employees retirement board. After receiving	760
the notice, the public employees retirement system shall request	761
that the former retirement system calculate under section 3307.712	762
or 3309.262 of the Revised Code the cost to the member to restore	763
service credit for each year or portion of a year of service for	764
which the member seeks to restore the service credit. The amount	765
the former retirement system certifies as the cost of restoring	766
the service credit, plus interest described in division (B) of	767
this section, is the cost to the member of restoring the service	768
credit. On receiving the certification from the former retirement	769
system, the public employees retirement system shall notify the	770
member of the cost.	771

(B) For each year or portion of a year of service credit	772
restored under section 3307.71 or 3309.26 of the Revised Code, a	773
member shall pay to the public employees retirement system the	774
amount certified by the former retirement system plus interest at	775
a rate specified by the former retirement system under section	776
3307.712 or 3309.262 of the Revised Code for the period during	777
which deductions are made under section 145.294 of the Revised	778
Code.	779

(C) The public employees retirement board shall at least	780
annually ~~notify~~transmit to the former retirement system ~~that a~~	781
~~payment~~notice and any payments made to restore service credit	782
under section 3307.71 or 3309.26 of the Revised Code ~~has been~~	783
~~made~~. ~~At the time the payment is transferred under division (D) of~~	784
~~this section, the~~The former retirement system shall restore the	785
service credit for the year or portion of a year for which the	786
payment was made.	787

(D) ~~On application for a payment of accumulated contributions~~	788
~~or an age and service retirement, disability, or survivor benefit~~	789
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	790
~~member who made payments under this section to restore service~~	791
~~credit in a former retirement system, the public employees~~	792
~~retirement system shall pay to the former retirement system an~~	793
~~amount equal to the total amount paid by the member under this~~	794
~~section.~~	795

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

796

Sec. 145.33. (A)(1) Except as provided in section 145.332 of	797
the Revised Code, when a member retires on age and service	798
retirement, the member's total annual single lifetime allowance	799
shall be an amount adjusted in accordance with division (A)(2) or	800
(B) of this section and determined by multiplying the member's	801
total service credit by the following:	802

(a) If the member is eligible for age and service retirement	803
under division (A) or (B) of section 145.32 of the Revised Code,	804
two and two-tenths per cent of the member's final average salary	805
for each of the first thirty years of service plus two and	806
one-half per cent of the member's final average salary for each	807
subsequent year of service;	808

(b) If the member is eligible for age and service retirement	809
under division (C) of section 145.32 of the Revised Code, two and	810
two-tenths per cent of the member's final average salary for each	811
of the first thirty-five years of service plus two and one-half	812
per cent of the member's final average salary for each subsequent	813
year of service.	814

(2)(a) For a member eligible to retire under division (A) of	815
section 145.32 of the Revised Code, the member's allowance under	816
division (A)(1) of this section shall be adjusted by the factors	817
of attained age or years of service to provide the greater amount	818
as determined by the following schedule:	819

		Years of	Percentage	820
Attained	or	Total Service	of	821
Birthday		Credit	Base Amount	822

58	25	75	823
59	26	80	824
60	27	85	825
61		88	826
	28	90	827
62		91	828
63		94	829
	29	95	830
64		97	831
65	30 or more	100	832

(b) For a member eligible to retire under division (B) or (C)	833
of section 145.32 of the Revised Code, the member's allowance	834
under division (A)(1) of this section shall be reduced by a	835
percentage determined by the board's actuary ~~for each year the~~	836
~~member retires before whichever of the following occurs first:~~	837
~~attaining age sixty-six, attaining age fifty-two with thirty-one~~	838
~~years of total service credit, or earning thirty-two years of~~	839
~~total service credit.~~	840

~~(c) For a member eligible to retire under division (C) of~~	841
~~section 145.32 of the Revised Code, the member's allowance under~~	842
~~division (A)(1) of this section shall be reduced by a percentage~~	843
~~determined by the board's actuary for each year the member retires~~	844
~~before whichever of the following occurs first: attaining age~~	845
~~sixty-seven, or attaining age fifty-five with thirty-two years of~~	846
~~total service credit~~based on the number of years the commencement	847
of the allowance precedes the member's eligibility for an	848
unreduced allowance.	849

~~(d)~~(c) The actuary may use an actuarially based average	850
percentage reduction for purposes of division (A)(2)(b) ~~or (c)~~ of	851
this section.	852

(3) For a member eligible to retire under division (A) or (B)	853
of section 145.32 of the Revised Code, the right to a benefit	854
shall vest in accordance with the following schedule, based on the	855
member's attained age by September 1, 1976:	856

	Percentage	857
Attained	of	858
Birthday	Base Amount	859
66	102	860
67	104	861
68	106	862
69	108	863
70 or more	110	864

(B) The total annual single lifetime allowance that a member	865
shall receive under this section shall not exceed the lesser of	866
the following:	867

(1) Any limit established under section 145.333 of the	868
Revised Code;	869

(2) One hundred per cent of the member's final average	870
salary;	871

(3) The limit established by section 415 of the "Internal	872
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as	873
amended.	874

(C) Retirement allowances determined under this section shall	875
be paid as provided in section 145.46 of the Revised Code.	876

Sec. 145.35. (A) As used in this section~~, "on-duty~~and	877
sections 145.362 and 145.363 of the Revised Code:	878

(1) "Examining physician" means a physician appointed by the	879
public employees retirement board to conduct a medical examination	880
of a disability benefit applicant or recipient.	881

(2) "Medical consultant" means a physician appointed by the	882
board to review a member's application for a disability benefit or	883
an appeal of a denial or termination of a benefit.	884

(3) "On-duty" illness or injury" means an illness or injury	885
that occurred during or resulted from performance of duties under	886
the direct supervision of a public employer.	887

(B) The public employees retirement system shall provide	888
disability coverage to each member who has at least five years of	889
total service credit and disability coverage for on-duty illness	890
or injury to each member who is a PERS law enforcement officer or	891
PERS public safety officer, regardless of length of service.	892

The coverage shall extend only to illness or injury that	893
occurs before the member's contributing service terminates or, in	894
the case of illness or injury that results from contributing	895
service, becomes evident not later than two years after the date	896
the contributing service ends. The coverage shall not extend to	897
disability resulting from elective cosmetic surgery other than	898
reconstructive surgery.	899

Not later than October 16, 1992, the public employees	900
retirement board shall give each person who is a member on July	901
29, 1992, the opportunity to elect disability coverage either	902
under section 145.36 of the Revised Code or under section 145.361	903
of the Revised Code. The board shall mail notice of the election,	904
accompanied by an explanation of the coverage under each of the	905
Revised Code sections and a form on which the election is to be	906
made, to each member at the member's last known address. The board	907
shall also provide the explanation and form to any member on	908
request.	909

Regardless of whether the member actually receives notice of	910
the right to make an election, a member who fails to file a valid	911
election under this section shall be considered to have elected	912
disability coverage under section 145.36 of the Revised Code. To	913
be valid, an election must be made on the form provided by the	914
retirement board, signed by the member, and filed with the board	915
not later than one hundred eighty days after the date the notice	916
was mailed, or, in the case of a form provided at the request of a	917
member, a date specified by rule of the retirement board. Once	918
made, an election is irrevocable, but if the member ceases to be a	919
member of the retirement system, the election is void. If a person	920
who makes an election under this section also makes an election	921
under section 3307.62 or 3309.39 of the Revised Code, the election	922
made for the system that pays a disability benefit to that person	923
shall govern the benefit.	924

Disability coverage shall be provided under section 145.361	925
of the Revised Code for persons who become members after July 29,	926
1992, and for members who elect under this division to be covered	927
under section 145.361 of the Revised Code.	928

The retirement board may adopt rules governing elections made	929
under this division.	930

(C) Application for a disability benefit may be made by a	931
member, by a person acting in the member's behalf, or by the	932
member's employer, provided the member has disability coverage	933
under section 145.36 or 145.361 of the Revised Code and is not	934
receiving a disability benefit under any other Ohio state or	935
municipal retirement program. Application must be made within two	936
years from the date the member's contributing service under the	937
PERS defined benefit plan terminated or the date the member ceased	938
to make contributions to the PERS defined benefit plan under	939
section 145.814 of the Revised Code, unless the ~~retirement board~~	940
board's medical consultant determines that the member's medical	941
records demonstrate conclusively that at the time the two-year	942
period expired, the member was physically or mentally	943
incapacitated for duty and unable to make an application.	944
Application may not be made by or for any person receiving age and	945
service retirement benefits under section 145.33, 145.331,	946
145.332, or 145.37 or former section 145.34 of the Revised Code or	947
any person who, pursuant to section 145.40 of the Revised Code,	948
has been paid the accumulated contributions standing to the credit	949
of the person's individual account in the employees' savings fund.	950
The application shall be made on a form provided by the retirement	951
board.	952

(D) The benefit payable to any member who is approved for a	953
disability benefit shall become effective on the first day of the	954
month immediately following the later of the following:	955

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

956

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

957

(E) Medical examination of a member who has applied for a	958
disability benefit shall be conducted by a competent disinterested	959
examining physician ~~or physicians selected by the board~~ to	960
determine whether the member is mentally or physically	961
incapacitated for the performance of duty by a disabling condition	962
either permanent or presumed to be permanent. The disability must	963
have occurred since last becoming a member or have increased since	964
last becoming a member to such extent as to make the disability	965
permanent or presumed to be permanent. A disability is presumed to	966
be permanent if it is expected to last for a continuous period of	967
not less than twelve months following the filing of the	968
application.	969

The standard used to determine whether a member is	970
incapacitated for duty is that the member is mentally or	971
physically incapable of performing the duties of the most recent	972
public position held by the member ~~held at the time the disabling~~	973
~~condition began or of a position with similar duties~~.	974

~~If the~~A member shall receive a disability benefit under	975
section 145.36 or 145.361 of the Revised Code if all of the	976
following apply:	977

(1) The board's examining physician ~~or physicians determine~~	978
determines that the member qualifies for a disability benefit~~, the~~	979
and the board's medical consultant concurs with the determination;	980

(2) The board concurs with the medical consultant's	981
determination~~, and the~~;	982

(3) The member agrees to medical treatment as specified in	983
division (F) of this section~~, the member shall receive a~~	984
~~disability benefit under section 145.36 or 145.361 of the Revised~~	985
~~Code. The~~.	986

A disability benefit described in this division may be	987
commenced prior to the board's concurrence with the determination	988
if the conditions specified in divisions (E)(1) and (3) of this	989
section are met.	990

The action of the board shall be final.

991

(F) The public employees retirement board shall adopt rules	992
requiring a disability benefit recipient, as a condition of	993
continuing to receive a disability benefit, to agree in writing to	994
obtain any medical treatment recommended by the board's ~~physician~~	995
medical consultant and submit medical reports regarding the	996
treatment. If the board determines that a disability benefit	997
recipient is not obtaining the medical treatment or the board does	998
not receive a required medical report, the disability benefit	999
shall be suspended until the treatment is obtained, the report is	1000
received by the board, or the board's ~~physician~~medical consultant	1001
certifies that the treatment is no longer helpful or advisable.	1002
Should the recipient's failure to obtain treatment or submit a	1003
medical report continue for one year, the recipient's right to the	1004
disability benefit shall be terminated as of the effective date of	1005
the original suspension.	1006

The board shall require the recipient of a disability benefit	1007
who is described in section 145.363 of the Revised Code to comply	1008
with that section.	1009

(G) A disability benefit that has been granted a member but	1010
has not commenced shall not be paid if the member continues in or	1011
returns to employment with the same employer in the same position	1012
or in a position with duties similar to those of the position the	1013
member held at the time the benefit was granted.	1014

(H) In the event an employer files an application for a	1015
disability benefit as a result of a member having been separated	1016
from service because the member is considered to be mentally or	1017
physically incapacitated for the performance of the member's	1018
present duty, and the ~~physician or physicians selected by the~~	1019
~~board~~board's medical consultant reports to the board that the	1020
member is physically and mentally capable of performing service	1021
similar to that from which the member was separated and the board	1022
concurs in the report, the board shall so certify to the employer	1023
and the employer shall restore the member to the member's previous	1024
position and salary or to a similar position and salary.	1025

Sec. 145.362. A disability benefit recipient whose	1026
application for a disability benefit was received by the public	1027
employees retirement system before ~~the effective date of this~~	1028
~~amendment~~January 7, 2013, shall, regardless of when the	1029
disability occurred, retain membership status and shall be	1030
considered on leave of absence from employment during the first	1031
five years following the effective date of a disability benefit,	1032
notwithstanding any contrary provisions in this chapter.	1033

A disability benefit recipient whose application for a	1034
disability benefit is received by the system on or after ~~the~~	1035
~~effective date of this amendment~~January 7, 2013, shall,	1036
regardless of when the disability occurred, retain membership	1037
status and shall be considered on leave of absence from employment	1038
during the first three years following the effective date of a	1039
disability benefit, except that, if the member is receiving	1040
rehabilitative services acceptable to athe board's examining	1041
physician ~~or physicians selected by the board~~, the board may	1042
permit the recipient to retain membership status and be considered	1043
on leave of absence from employment for up to five years following	1044
the effective date of a disability benefit.	1045

The public employees retirement board shall require any	1046
disability benefit recipient to undergo an annual medical	1047
examination, except that the board may waive the medical	1048
examination if the board's ~~physician or physicians certify~~medical	1049
consultant certifies that the recipient's disability is ongoing or	1050
for any other reason specified in rules adopted by the board. If	1051
any disability benefit recipient refuses to submit to a medical	1052
examination, the recipient's disability benefit shall be suspended	1053
until withdrawal of the refusal. Should the refusal continue for	1054
one year, all the recipient's rights in and to the disability	1055
benefit shall be terminated as of the effective date of the	1056
original suspension.	1057

On completion of the examination by anthe board's examining	1058
physician ~~or physicians selected by the board~~, the physician or	1059
~~physicians~~ shall report to the board's medical consultant and	1060
certify ~~to the board~~ whether the disability benefit recipient	1061
meets the applicable standard for termination of a disability	1062
benefit. If the examining physician certifies that the recipient	1063
meets the applicable standard for termination of a disability	1064
benefit and the medical consultant concurs, the medical consultant	1065
shall certify to the board that the recipient meets the applicable	1066
standard for termination.	1067

(A) Regardless of when the disability occurred, if the	1068
recipient's application for a disability benefit was received by	1069
the system before ~~the effective date of this amendment~~January 7,	1070
2013, or, if on or after that date, the recipient has been	1071
receiving the benefit for less than three years or is receiving	1072
rehabilitative services acceptable to the board's examining	1073
physician ~~or physicians~~ and considered on leave of absence, or,	1074
if, ~~when~~at the ~~disability occurred~~time contributing service	1075
terminated, the recipient was a PERS law enforcement officer, the	1076
standard for termination is that the recipient is no longer	1077
physically and mentally incapable of resuming the service from	1078
which the recipient was found disabled.	1079

(B) Regardless of when the disability occurred, if the	1080
recipient's application for a disability benefit is received by	1081
the system on or after ~~the effective date of this amendment~~	1082
January 7, 2013, the recipient has been receiving the benefit for	1083
three years or longer, the recipient was not a PERS law	1084
enforcement officer ~~when~~at the ~~disability occurred~~time	1085
contributing service terminated, and the recipient is not	1086
receiving rehabilitative services acceptable to the board's	1087
examining physician ~~or physicians~~, the standard for termination is	1088
that the recipient is not physically or mentally incapable of	1089
performing the duties of any position that meets all of the	1090
following criteria:	1091

(1) Replaces not less than seventy-five per cent of the	1092
member's final average salary, adjusted each year by the actual	1093
average increase in the consumer price index prepared by the	1094
United States bureau of labor statistics (U.S. city average for	1095
urban wage earners and clerical workers: "all items	1096
1982-1984=100");	1097

(2) Is reasonably to be found in the member's regional job	1098
market;	1099

(3) Is one that the member is qualified for by experience or	1100
education.	1101

If the board concurs in the report that the disability	1102
benefit recipient meets the applicable standard for termination of	1103
a disability benefit, the payment of the disability benefit shall	1104
be terminated not later than three months after the date of the	1105
board's concurrence or upon employment as a public employee. If	1106
the leave of absence has not expired, the retirement board shall	1107
certify to the disability benefit recipient's last employer before	1108
being found disabled that the recipient is no longer physically	1109
and mentally incapable of resuming service that is the same or	1110
similar to that from which the recipient was found disabled. The	1111
employer shall restore the recipient to the recipient's previous	1112
position and salary or to a position and salary similar thereto,	1113
unless the recipient was dismissed or resigned in lieu of	1114
dismissal for dishonesty, misfeasance, malfeasance, or conviction	1115
of a felony.	1116

Each disability benefit recipient shall file with the board	1117
an annual statement of earnings, current medical information on	1118
the recipient's condition, and any other information required in	1119
rules adopted by the board. The board may waive the requirement	1120
that a disability benefit recipient file an annual statement of	1121
earnings or current medical information if the board's ~~physician~~	1122
medical consultant certifies that the recipient's disability is	1123
ongoing.	1124

The board shall annually examine the information submitted by	1125
the recipient. If a disability benefit recipient refuses to file	1126
the statement or information, the disability benefit shall be	1127
suspended until the statement and information are filed. If the	1128
refusal continues for one year, the recipient's right to the	1129
disability benefit shall be terminated as of the effective date of	1130
the original suspension.	1131

If a disability benefit recipient is restored to service by,	1132
or elected to an elective office with, an employer covered by this	1133
chapter, the recipient's disability benefit shall cease.	1134

The board may terminate a disability benefit at the request	1135
of the recipient if the board's medical consultant determines that	1136
the recipient is no longer disabled.	1137

If disability retirement under section 145.36 of the Revised	1138
Code is terminated for any reason, the annuity and pension	1139
reserves at that time in the annuity and pension reserve fund	1140
shall be transferred to the employees' savings fund and the	1141
employers' accumulation fund, respectively. If the total	1142
disability benefit paid is less than the amount of the accumulated	1143
contributions of the member transferred to the annuity and pension	1144
reserve fund at the time of the member's disability retirement,	1145
the difference shall be transferred from the annuity and pension	1146
reserve fund to another fund as may be required. In determining	1147
the amount of a member's account following the termination of	1148
disability retirement for any reason, the total amount paid shall	1149
be charged against the member's refundable account.	1150

If a disability allowance paid under section 145.361 of the	1151
Revised Code is terminated for any reason, the reserve on the	1152
allowance at that time in the annuity and pension reserve fund	1153
shall be transferred from that fund to the employers' accumulation	1154
fund.	1155

If a former disability benefit recipient again becomes a	1156
contributor, other than as an other system retirant under section	1157
145.38 of the Revised Code, to this system, the state teachers	1158
retirement system, or the school employees retirement system, and	1159
completes an additional two years of service credit, the former	1160
disability benefit recipient shall be entitled to full service	1161
credit, not exceeding five years' service credit, for the period	1162
as a disability benefit recipient, except that if the board adopts	1163
a rule requiring payment for the service credit it shall be	1164
granted only if the former disability benefit recipient pays an	1165
amount determined under the rule. The rule shall not require	1166
payment of more than the additional liability to the retirement	1167
system resulting from granting the credit. The former recipient	1168
may choose to purchase only part of the credit in any one payment.	1169

If any employer employs any member who is receiving a	1170
disability benefit, the employer shall file notice of employment	1171
with the retirement board, designating the date of employment. In	1172
case the notice is not filed, the total amount of the benefit paid	1173
during the period of employment prior to notice shall be charged	1174
to and paid by the employer.	1175

Sec. 145.363. This section does not apply to a disability	1176
recipient who, ~~when~~at the ~~disability occurred~~time contributing	1177
service terminated, was a PERS law enforcement officer.	1178

(A) A recipient of a disability benefit granted under this	1179
chapter whose application for such benefit is received by the	1180
public employees retirement system on or after ~~the effective date~~	1181
~~of this section~~January 7, 2013, shall, regardless of when the	1182
disability occurred, apply for social security disability	1183
insurance benefit payments under 42 U.S.C. 423 if the recipient	1184
meets the requirements of divisions (a)(1)(A),(B), and (C) of that	1185
section. The application for a social security disability	1186
insurance benefit shall be made ~~not~~before the later ~~than~~of the	1187
ninety-first~~days~~day after the recipient is granted a disability	1188
benefit under this chapter or the ninety-first day after the	1189
recipient attains eligibility to apply for a social security	1190
disability insurance benefit, unless the public employees	1191
retirement ~~board~~board's medical consultant determines from the	1192
member's medical records that the member is physically or mentally	1193
unable to make the application. The recipient shall file with the	1194
system a copy of the completed application ~~with the public~~	1195
~~employees retirement system~~or other evidence of application	1196
satisfactory to the board and the system shall accept the copy or	1197
other evidence as evidence of the member's application. If a	1198
recipient fails without just cause to apply for social security	1199
disability insurance benefit payments or to file a copy or other	1200
evidence of the application with the system, the disability	1201
benefit under this chapter shall be suspended until application is	1202
made and a copy or other evidence of the application filed with	1203
the system. If the recipient's failure to file a copy or other	1204
evidence of the application continues for one year, the disability	1205
benefit shall be terminated as of the effective date of the	1206
original suspension.	1207

(B) Regardless of whether the recipient's disability is	1208
ongoing, a recipient of a disability benefit under this chapter	1209
who also receives social security disability insurance benefit	1210
payments shall file an annual statement of earnings under section	1211
145.362 of the Revised Code and include a copy of the social	1212
security disability insurance benefit annual reward letter that	1213
specifies the amount of the social security disability insurance	1214
program benefit.	1215

(C) Except as provided in division (D) of this section, if	1216
any year the total of a disability benefit recipient's benefit	1217
under this chapter and social security disability insurance	1218
benefit payments exceeds the recipient's adjusted final average	1219
salary, the annual benefit under this chapter shall be reduced so	1220
that the annual total equals the recipient's adjusted final	1221
average salary.	1222

The recipient's adjusted final average salary shall be	1223
determined by annually increasing the recipient's final average	1224
salary by the percentage increase in the consumer price index, not	1225
exceeding three per cent, as determined by the United States	1226
bureau of labor statistics (U.S. city average for urban wage	1227
earners and clerical workers: "all items 1982-84=100") for the	1228
twelve-month period ending on the thirtieth day of June of the	1229
immediately preceding calendar year. If the consumer price index	1230
for that period did not increase, no increase shall be made to the	1231
recipient's adjusted final average salary for that period. No	1232
adjustment to a benefit shall exceed the limit established by	1233
section 415 of the "Internal Revenue Code of 1986," 100 Stat.	1234
2085, 26 U.S.C. 415, as amended.	1235

If a disability benefit recipient receives retroactive	1236
payments of social security disability insurance benefits, the	1237
system may reduce future disability benefit payments under this	1238
chapter to recoup any overpayments.	1239

(D) The reductions required by division (C) of this section	1240
do not apply to a recipient of a disability benefit under this	1241
chapter who has not less than five years of service credit for	1242
periods during which the recipient had earnings from other	1243
employment that was subject to the tax imposed by the "Federal	1244
Insurance Contributions Act," 26 U.S.C. 3101.	1245

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

1246

(1) "State retirement system" means the public employees	1247
retirement system, school employees retirement system, or state	1248
teachers retirement system.	1249

(2) "Total service credit" means all service credit earned in	1250
the state retirement systems, except credit for service subject to	1251
section 145.38 of the Revised Code. Total service credit shall not	1252
exceed one year of credit for any twelve-month period.	1253

(3) In addition to the meaning given in division (N) of	1254
section 145.01 of the Revised Code, "disability benefit" means	1255
"disability benefit" as defined in sections 3307.01 and 3309.01 of	1256
the Revised Code.	1257

(4) "Paying system" means the state retirement system in	1258
which the member has the greatest service credit, without	1259
adjustment or, if a member who has equal service credit in two or	1260
more retirement systems, the retirement system in which the member	1261
has the greatest total contributions.	1262

(5) "Transferring system" means the state retirement system	1263
transferring a member's contributions and service credit in that	1264
system to the paying system.	1265

(6) "Retention percentage" means five per cent, or a	1266
percentage determined under division (D) of this section, of a	1267
member's earnable salary in the case of a member of the public	1268
employees retirement system or five per cent, or a percentage	1269
determined under division (D) of this section, of a member's	1270
compensation in the case of a member of the state teachers	1271
retirement system or school employees retirement system.	1272

(B) To coordinate and integrate membership in the state	1273
retirement systems~~, the following provisions apply:~~	1274

~~(1) Subject to division (B)(2) of this section~~, at the	1275
election of a member, total contributions and service credit in	1276
all state retirement systems, including amounts paid to restore	1277
service credit under sections 145.311, 3307.711, and 3309.261 of	1278
the Revised Code, shall be used in determining the eligibility and	1279
total retirement or disability benefit payable. When total	1280
contributions and service credit are so combined, the following	1281
provisions apply:	1282

~~(a)~~(1) Age and service retirement shall be effective on the	1283
first day of the month immediately following the later of:	1284

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

1285

~~(ii)~~(b) The attainment of minimum age or service credit	1286
eligibility for benefits provided under this section;	1287

~~(iii)~~(c) Ninety days prior to receipt by the board of the	1288
member's completed application for retirement.	1289

~~(b)~~(2) Disability benefits shall be effective on the first	1290
day of the month immediately following the later of the following:	1291

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

1292

~~(ii)~~(b) The attainment of eligibility for a disability	1293
benefit.	1294

~~(c) Eligibility for a disability benefit shall be determined~~	1295
~~by the~~(3) The board of the ~~state retirement~~paying system ~~that~~	1296
~~will calculate~~shall do both of the following:	1297

(a) Determine a member's eligibility for a retirement or	1298
disability benefit;	1299

(b) Calculate and pay the member's retirement or disability	1300
benefit~~, as provided in division (B)(1)(d) of this section~~. ~~The~~	1301
~~state retirement~~	1302

(4)(a) Each transferring system ~~calculating and paying the~~	1303
~~disability benefit~~in which the member has service credit shall	1304
certify ~~the determination~~ to the ~~board of each other state~~	1305
~~retirement~~paying system ~~in which the member has service credit~~	1306
~~and shall be accepted by that board as sufficient for granting a~~	1307
~~disability benefit.~~	1308

~~(d) The board of the state retirement system in which the~~	1309
~~member had the greatest service credit, without adjustment, shall~~	1310
~~calculate and pay the total retirement or disability benefit.~~	1311
~~Where the member's credit is equal in two or more state retirement~~	1312
~~systems, the system having the largest total contributions of the~~	1313
~~member shall calculate and pay the total benefit.~~	1314

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

1315

(i) The service credit earned by the member in the	1316
transferring system;	1317

(ii) The beginning and ending dates of the service credit	1318
period covered by the transferring system;	1319

(iii) Any breaks in service by the member, excluding school	1320
breaks;	1321

(iv) If available, a statement listing the member's monthly	1322
contributions and service credit earned, obtained, or purchased in	1323
the transferring system.	1324

(b) The certification under division (B)(4)(a) of this	1325
section may be reviewed by both the transferring system and the	1326
paying system.	1327

(5) In determining the total credit to be used in calculating	1328
a retirement or disability benefit, ~~total combined service credit~~	1329
~~shall not exceed~~credit shall not be reduced below that certified	1330
by the transferring system, except as follows:	1331

(a) Not more than one year of credit may be certified by the	1332
transferring system for any one "year" as defined in the law of	1333
the transferring system ~~making the calculation~~.	1334

~~(f)~~(b) The paying system may reduce any credit certified by	1335
the transferring system that is concurrent with any period of	1336
service credit the member earned from the paying system.	1337

(c) The paying system may reduce any credit certified by the	1338
transferring system if the amount certified, when added to the	1339
paying system's service credit for any one "year" as defined in	1340
the law of the paying system, exceeds one year.	1341

(6)(a) The ~~state retirement~~paying system ~~calculating and~~	1342
~~paying a retirement or disability benefit~~ shall receive from the	1343
~~other~~transferring system or systems all of the following for each	1344
year of service:	1345

(i) The amount contributed by the member, or, in the case of	1346
service credit purchased by the member, paid by the member, that	1347
is attributable to the year of service;	1348

(ii) An amount equal to the lesser of the employer's	1349
contributions made on behalf of the member to the ~~retirement~~	1350
transferring system for that year of service less the retention	1351
percentage or the amount that would have been contributed by the	1352
employer for the service had the member been a member of the	1353
public employees retirement system at the time the credit was	1354
earned less the retention percentage;	1355

(iii) Interest compounded annually on the amounts specified	1356
in divisions (B)~~(1)(f)~~(6)(a)(i) and (ii) of this section at the	1357
lesser of the actuarial assumption rate for that year of the	1358
~~retirement~~paying system ~~determining and paying the benefit~~ or the	1359
~~other retirement~~transferring system or systems ~~transferring~~	1360
~~amounts under this section~~.	1361

(b) If applicable, the public employees retirement system	1362
shall pay to the ~~retirement~~paying system ~~calculating and paying~~	1363
~~the benefit~~ a portion of the amount paid on behalf of the member	1364
by an employer under section 145.483 of the Revised Code. The	1365
portion shall be paid from the employers' accumulation fund and	1366
shall equal the product obtained by multiplying by two the amount	1367
the member would have contributed during the period the employer	1368
failed to deduct contributions, as described in section 145.483 of	1369
the Revised Code.	1370

~~(g)~~(7) The annuity rates and mortality tables of the ~~state~~	1371
~~retirement~~paying system ~~making the calculation and paying the~~	1372
~~benefit~~ shall be exclusively applicable.	1373

~~(h)~~(8) Deposits made for the purpose of an additional	1374
annuity, together with earnings as provided in section 145.62 of	1375
the Revised Code, upon the request of the member, shall be	1376
transferred to the ~~state retirement~~paying system ~~paying the~~	1377
~~benefit~~. The return upon such deposits shall be that offered by	1378
the ~~state retirement~~paying system ~~making the calculation and~~	1379
~~paying the benefit~~.	1380

~~(2)~~(9) A former member receiving a retirement or disability	1381
benefit under this section, who accepts employment amenable to	1382
coverage in any state retirement system that participated in the	1383
former member's combined benefit, shall be subject to the	1384
applicable provisions of law governing such re-employment. If a	1385
former member should be paid any amount in a retirement benefit,	1386
to which the former member is not entitled under the applicable	1387
provisions of law governing such re-employment, such amount shall	1388
be recovered by the ~~state retirement~~paying system ~~paying such~~	1389
~~benefit~~ by utilizing any recovery procedure available under the	1390
~~code provisions of the state retirement system covering such~~	1391
paying system's re-employment provisions.	1392

(C) A PERS retirant or other system retirant, as defined in	1393
section 145.38 of the Revised Code, is not eligible to receive any	1394
benefit under this section for service subject to section 145.38	1395
of the Revised Code.	1396

(D) The retention percentage used in the calculation under	1397
division (B)(6)(a)(ii) of this section shall be reviewed by the	1398
state retirement systems not less than once every five years after	1399
the effective date of this amendment or on request of any of the	1400
systems. If the retirement systems agree, the retention percentage	1401
may be changed if any system's employer contribution rate	1402
increases or decreases or the systems agree that a change is in	1403
the interest of one or more of the systems.	1404

Sec. 145.384. (A) As used in this section, "PERS retirant"	1405
means a PERS retirant who is not subject to division (C) of	1406
section 145.38 of the Revised Code. For purposes of this section,	1407
"PERS retirant" also includes both of the following:	1408

(1) A member who retired under section 145.383 of the Revised	1409
Code;	1410

(2) A retirant whose retirement allowance resumed under	1411
section 145.385 of the Revised Code.	1412

(B)(1) An other system retirant or PERS retirant who has made	1413
contributions under section 145.38 or 145.383 of the Revised Code	1414
or, in the case of a retirant described in division (A)(2) of this	1415
section, section 145.47 of the Revised Code may file an	1416
application with the public employees retirement system to receive	1417
either a benefit, as provided in division (B)(2) of this section,	1418
or payment of the retirant's contributions made under those	1419
sections, as provided in division (H) of this section.	1420

(2) A benefit under this section shall consist of an annuity	1421
having a reserve equal to the amount of the retirant's accumulated	1422
contributions for the period of employment, other than the	1423
contributions excluded pursuant to division (B)(4)(a) or (b) of	1424
section 145.38 of the Revised Code, and an amount of the	1425
employer's contributions determined by the board.	1426

(a) Unless, as described in division (I) of this section, the	1427
application is accompanied by a statement of the spouse's consent	1428
to another form of payment or the board waives the requirement of	1429
spousal consent, a PERS retirant or other system retirant who is	1430
married at the time of application for a benefit under this	1431
section shall receive a monthly annuity under which the actuarial	1432
equivalent of the retirant's single life annuity is paid in a	1433
lesser amount for life and one-half of the lesser amount continues	1434
after the retirant's death to the surviving spouse.	1435

(b) A PERS retirant or other system retirant who is not	1436
subject to division (B)(2)(a) of this section shall elect either	1437
to receive the benefit as a monthly annuity or a lump sum payment	1438
discounted to the present value using a rate of interest	1439
determined by the board. A retirant who elects to receive a	1440
monthly annuity shall select one of the following as the plan of	1441
payment:	1442

(i) The retirant's single life annuity;

1443

(ii) The actuarial equivalent of the retirant's single life	1444
annuity in an equal or lesser amount for life and continuing after	1445
death to a surviving beneficiary designated at the time the plan	1446
of payment is selected.	1447

If a retirant who is eligible to select a plan of payment	1448
under division (B)(2)(b) of this section fails to do so, the	1449
benefit shall be paid as a monthly annuity under the plan of	1450
payment specified in rules adopted by the public employees	1451
retirement board.	1452

(c) Notwithstanding divisions (B)(2)(a) and (b) of this	1453
section, if a monthly annuity would be less than twenty-five	1454
dollars per month, the retirant shall receive a lump sum payment.	1455

(C)(1) The death of a spouse or other designated beneficiary	1456
under a plan of payment described in division (B)(2) of this	1457
section cancels that plan of payment. The PERS retirant or other	1458
system retirant shall receive the equivalent of the retirant's	1459
single life annuity, as determined by the board, effective the	1460
first day of the month following the date of death.	1461

(2) On divorce, annulment, or marriage dissolution, a PERS	1462
retirant or other system retirant receiving a benefit described in	1463
division (B)(2) of this section under which the beneficiary is the	1464
spouse may, with the written consent of the spouse or pursuant to	1465
an order of the court with jurisdiction over the termination of	1466
the marriage, elect to cancel the plan and receive the equivalent	1467
of the retirant's single life annuity as determined by the board.	1468
The election shall be made on a form provided by the board and	1469
shall be effective the month following its receipt by the board.	1470

(D) Following a marriage or remarriage, a PERS retirant or	1471
other system retirant who is receiving a benefit described in	1472
division (B)(2)(b)(i) of this section may elect a new plan of	1473
payment under division (B)(2)(b) of this section based on the	1474
actuarial equivalent of the retirant's single life annuity as	1475
determined by the board.	1476

If the marriage or remarriage occurs on or after June 6,	1477
2005, the election must be made not later than one year after the	1478
date of the marriage or remarriage.	1479

The plan elected under this division shall be effective on	1480
the date of receipt by the board of an application on a form	1481
approved by the board, but any change in the amount of the benefit	1482
shall commence on the first day of the month following the	1483
effective date of the plan.	1484

(E) A benefit payable under division (B)(2) of this section	1485
shall commence on the latest of the following:	1486

(1) The last day for which compensation for all employment	1487
subject to section 145.38, 145.383, or 145.385 of the Revised Code	1488
was paid;	1489

(2) Attainment by the PERS retirant or other system retirant	1490
of age sixty-five;	1491

(3) If the PERS retirant or other system retirant was	1492
previously employed under section 145.38, 145.383, or 145.385 of	1493
the Revised Code and is receiving or previously received a benefit	1494
under this section, completion of a period of twelve months since	1495
the effective date of the last benefit under this section;	1496

(4) Ninety days prior to receipt by the board of the member's	1497
completed application for retirement;	1498

(5) A date specified by the retirant.

1499

(F)(1) If a PERS retirant or other system retirant dies while	1500
employed in employment subject to section 145.38, 145.383, or	1501
145.385 of the Revised Code, a lump sum payment shall be paid to	1502
the retirant's beneficiary under division (G) of this section. The	1503
lump sum shall be calculated in accordance with division (H) of	1504
this section if the retirant was under age sixty-five at the time	1505
of death. It shall be calculated in accordance with division	1506
(B)(2) of this section if the retirant was age sixty-five or older	1507
at the time of death.	1508

(2) If at the time of death a PERS retirant or other system	1509
retirant receiving a monthly annuity under division (B)(2)(b)(i)	1510
of this section has received less than the retirant would have	1511
received as a lump sum payment, the difference between the amount	1512
received and the amount that would have been received as a lump	1513
sum payment shall be paid to the retirant's beneficiary under	1514
division (G) of this section.	1515

(3) If a beneficiary receiving a monthly annuity under	1516
division (B)(2) of this section dies and, at the time of the	1517
beneficiary's death, the total of the amounts paid to the retirant	1518
and beneficiary are less than the amount the retirant would have	1519
received as a lump sum payment, the difference between the total	1520
of the amounts received by the retirant and beneficiary and the	1521
amount that the retirant would have received as a lump sum payment	1522
shall be paid to the beneficiary's estate.	1523

(G) A PERS retirant or other system retirant employed under	1524
section 145.38, 145.383, or 145.385 of the Revised Code may	1525
designate one or more persons as beneficiary to receive any	1526
benefits payable under division (B)(2)(b) of this section due to	1527
death. The designation shall be in writing duly executed on a form	1528
provided by the public employees retirement board, signed by the	1529
PERS retirant or other system retirant, and filed with the board	1530
prior to death. The last designation of a beneficiary revokes all	1531
previous designations. The PERS retirant's or other system	1532
retirant's marriage, divorce, marriage dissolution, legal	1533
separation, withdrawal of account, birth of a child, or adoption	1534
of a child revokes all previous designations. If there is no	1535
designated beneficiary or the beneficiary is not located within	1536
ninety days, the beneficiary ~~is the beneficiary determined under~~	1537
~~division (D) of section 145.43 of the Revised Code. If~~shall be	1538
determined in the following order of precedence:	1539

(1) Surviving spouse;

1540

(2) Children, share and share alike;

1541

(3) Parents, share and share alike;

1542

(4) Estate.

1543

If any benefit payable under this section due to the death of	1544
a PERS retirant or other system retirant is not claimed by a	1545
beneficiary within five years after the death, the amount payable	1546
shall be transferred to the income fund and thereafter paid to the	1547
beneficiary or the estate of the PERS retirant or other system	1548
retirant on application to the board.	1549

(H)(1) A PERS retirant or other system retirant who applies	1550
under division (B)(1) of this section for payment of the	1551
retirant's contributions and is unmarried or is married and,	1552
unless the board has waived the requirement of spousal consent,	1553
includes with the application a statement of the spouse's consent	1554
to the payment, shall be paid the contributions made under section	1555
145.38 or 145.383 of the Revised Code or, in the case of a	1556
retirant described in division (A)(2) of this section, section	1557
145.47 of the Revised Code, plus interest as provided in section	1558
145.471 of the Revised Code, if the following conditions are met:	1559

(a) The retirant has not attained sixty-five years of age and	1560
has terminated employment subject to section 145.38, 145.383, or	1561
145.385 of the Revised Code for any cause other than death or the	1562
receipt of a benefit under this section.	1563

(b) Three months have elapsed since the termination of the	1564
retirant's employment subject to section 145.38, 145.383, or	1565
145.385 of the Revised Code, other than employment exempted from	1566
contribution pursuant to section 145.03 of the Revised Code.	1567

(c) The retirant has not returned to public service, other	1568
than service exempted from contribution pursuant to section 145.03	1569
of the Revised Code, during the three-month period.	1570

(2) Payment of a retirant's contributions cancels the	1571
retirant's right to a benefit under division (B)(2) of this	1572
section.	1573

(I) A statement of a spouse's consent under division (B)(2)	1574
of this section to the form of a benefit or under division (H) of	1575
this section to a payment of contributions is valid only if signed	1576
by the spouse and witnessed by a notary public. The board may	1577
waive the requirement of spousal consent if the spouse is	1578
incapacitated or cannot be located, or for any other reason	1579
specified by the board. Consent or waiver is effective only with	1580
regard to the spouse who is the subject of the consent or waiver.	1581

(J) No amount received under this section shall be included	1582
in determining an additional benefit under section 145.323 of the	1583
Revised Code or any other post-retirement benefit increase.	1584

Sec. 145.391. The public employees retirement board may	1585
establish and maintain a qualified governmental excess benefit	1586
arrangement that meets the requirements of division (m) of section	1587
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1588
U.S.C.A. 415, as amended, and any regulations adopted thereunder.	1589
If established, the arrangement shall be a separate portion of the	1590
public employees retirement system and be maintained solely for	1591
the purpose of providing to retired members that part of a benefit	1592
otherwise payable under this chapter that exceeds the limits	1593
established by section 415 of the "Internal Revenue Code of 1986,"	1594
as amended. If established, the amounts required to fund the	1595
arrangement shall be included in the employer's contribution	1596
required by sections 145.48 and 145.51 of the Revised Code.	1597

Members participating in an arrangement established under	1598
this section shall not be permitted to elect to defer compensation	1599
to the arrangement. Contributions to and benefits paid under an	1600
arrangement shall not be payable from a trust that is part of the	1601
system unless the trust is maintained solely for the purpose of	1602
providing such benefits.	1603

The board shall adopt rules to administer an arrangement	1604
established under this section.	1605

Sec. 145.40. (A)(1) Subject to the provisions of section	1606
145.57 of the Revised Code and except as provided in ~~section~~	1607
~~145.402 of the Revised Code an~~d division (B) of this section, if a	1608
member elects to become exempt from contribution to the public	1609
employees retirement system pursuant to section 145.03 of the	1610
Revised Code or ceases to be a public employee for any cause other	1611
than death, retirement, receipt of a disability benefit, or	1612
current employment in a position in which the member has elected	1613
to participate in an alternative retirement plan under section	1614
3305.05 or 3305.051 of the Revised Code, upon application the	1615
public employees retirement board shall pay the member the	1616
member's accumulated contributions, plus any applicable amount	1617
calculated under section 145.401 of the Revised Code, provided	1618
that both the following apply:	1619

(a) Three months have elapsed since the member's service	1620
subject to this chapter, other than service exempted from	1621
contribution pursuant to section 145.03 of the Revised Code, was	1622
terminated;	1623

(b) The member has not returned to service subject to this	1624
chapter, other than service exempted from contribution pursuant to	1625
section 145.03 of the Revised Code, during that three-month	1626
period.	1627

The payment of such accumulated contributions shall cancel	1628
the total service credit of such member in the public employees	1629
retirement system.	1630

(2) A member described in division (A)(1) of this section who	1631
is married at the time of application for payment and is eligible	1632
for age and service retirement under section 145.32, 145.33,	1633
145.331, or 145.332 of the Revised Code or would be eligible for	1634
age and service retirement under any of those sections but for a	1635
forfeiture ordered under division (A) or (B) of section 2929.192	1636
of the Revised Code shall submit with the application a written	1637
statement by the member's spouse attesting that the spouse	1638
consents to the payment of the member's accumulated contributions.	1639
Consent shall be valid only if it is signed and witnessed by a	1640
notary public.	1641

The board may waive the requirement of consent if the spouse	1642
is incapacitated or cannot be located, or for any other reason	1643
specified by the board. Consent or waiver is effective only with	1644
regard to the spouse who is the subject of the consent or waiver.	1645

(B) This division applies to any member who is employed in a	1646
position in which the member has made an election under section	1647
3305.05 or 3305.051 of the Revised Code and due to the election	1648
ceases to be a public employee for purposes of that position.	1649

Subject to section 145.57 of the Revised Code, the public	1650
employees retirement system shall do the following:	1651

(1) On receipt of a certified copy of a form evidencing an	1652
election under section 3305.05 or 3305.051 of the Revised Code,	1653
pay to the appropriate provider, in accordance with section	1654
3305.052 of the Revised Code, the amount described in section	1655
3305.052 of the Revised Code;	1656

(2) If a member has accumulated contributions, in addition to	1657
those subject to division (B)(1) of this section, standing to the	1658
credit of the member's individual account and is not otherwise	1659
employed in a position in which the member is considered a public	1660
employee for the purposes of that position, pay, to the provider	1661
the member selected pursuant to section 3305.05 or 3305.051 of the	1662
Revised Code, the member's accumulated contributions. The payment	1663
shall be made on the member's application.	1664

(C) Payment of a member's accumulated contributions under	1665
division (B) of this section cancels the member's total service	1666
credit in the public employees retirement system. A member whose	1667
accumulated contributions are paid to a provider pursuant to	1668
division (B) of this section is forever barred from claiming or	1669
purchasing service credit under the public employees retirement	1670
system for the period of employment attributable to those	1671
contributions.	1672

Sec. 145.402. (A) As used in this section, "other retirement	1673
system" means the state teachers retirement system or the school	1674
employees retirement system.	1675

(B) Except as provided in this section, on application, a	1676
member of the public employees retirement system who is also a	1677
member of one or both of the other retirement systems and has	1678
ceased to be a public employee for the purposes of this chapter	1679
may be paid, in accordance with section 145.40 of the Revised	1680
Code, the member's accumulated contributions to the public	1681
employees retirement system, plus any applicable amount calculated	1682
under section 145.401 of the Revised Code. This payment does not	1683
affect the member's membership in the other retirement systems or	1684
any right the member may have to a benefit or return of	1685
contributions under those systems.	1686

(C) This section does not apply to a member of one of the	1687
other retirement systems whose employment under that system is	1688
with the public employer that was the employer under the public	1689
employees retirement system at the time the member's service	1690
subject to this chapter terminated.	1691

Sec. 145.43. (A) As used in this section and in section	1692
145.45 of the Revised Code:	1693

(1) "Child" means a biological or legally adopted child of a	1694
deceased member. If a court hearing for an interlocutory decree	1695
for adoption was held prior to the member's death, "child"	1696
includes the child who was the subject of the hearing	1697
notwithstanding the fact that the final decree of adoption,	1698
adjudging the surviving spouse as the adoptive parent, is made	1699
subsequent to the member's death.	1700

(2) "Parent" is a parent or legally adoptive parent of a	1701
deceased member.	1702

(3) "Dependent" means a beneficiary who receives one-half of	1703
the beneficiary's support from a member during the twelve months	1704
prior to the member's death.	1705

(4) "Surviving spouse" means an individual who establishes a	1706
valid marriage to a member at the time of the member's death by	1707
marriage certificate or pursuant to division (E) of this section.	1708

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

1709

(6) "Accumulated contributions" has the meaning given in	1710
section 145.01 of the Revised Code, except that, notwithstanding	1711
that section, it does not include additional amounts deposited in	1712
the employees' savings fund pursuant to the version of division	1713
(C) of section 145.23 of the Revised Code as it existed	1714
immediately prior to April 6, 2007, or pursuant to section 145.62	1715
of the Revised Code.	1716

(B) Except as provided in division (C)(1) of section 145.45	1717
of the Revised Code, should a member die before age and service	1718
retirement, the member's accumulated contributions and any	1719
applicable amount calculated under section 145.401 of the Revised	1720
Code, shall be paid to the person or persons the member has	1721
designated under section 145.431 of the Revised Code. A member may	1722
designate two or more persons as beneficiaries to be paid the	1723
accumulated account in a lump sum. Subject to rules adopted by the	1724
public employees retirement board, a member who designates two or	1725
more persons as beneficiaries shall specify the percentage of the	1726
lump sum that each beneficiary is to be paid. If the member has	1727
not specified the percentages, the lump sum shall be divided	1728
equally among the beneficiaries.	1729

The last designation of any beneficiary revokes all previous	1730
designations. The member's marriage, divorce, marriage	1731
dissolution, legal separation, or withdrawal of account, or the	1732
birth of the member's child, or adoption of a child, shall	1733
constitute an automatic revocation of the member's previous	1734
designation. If a deceased member was also a member of the school	1735
employees retirement system or the state teachers retirement	1736
system, the beneficiary last established among the systems shall	1737
be the sole beneficiary in all the systems.	1738

If the accumulated contributions of a deceased member are not	1739
claimed by a beneficiary or by the estate of the deceased member	1740
within five years after the death, the contributions shall remain	1741
in the employees' savings fund or may be transferred to the income	1742
fund and thereafter shall be paid to the beneficiary or to the	1743
member's estate upon application to the board. The board shall	1744
formulate and adopt the necessary rules governing all designations	1745
of beneficiaries.	1746

(C) Except as provided in division (C)(1) of section 145.45	1747
of the Revised Code, if a member dies before age and service	1748
retirement and is not survived by a designated beneficiary, the	1749
following shall qualify, with all attendant rights and privileges,	1750
in the following order of precedence, the member's:	1751

(1) Surviving spouse;

1752

(2) Children, share and share alike;

1753

(3) A dependent parent, if that parent takes survivor	1754
benefits under division (B) of section 145.45 of the Revised Code;	1755

(4) Parents, share and share alike;

1756

(5) Estate.

1757

If the beneficiary is deceased or is not located within	1758
ninety days, the beneficiary ceases to qualify for any benefit and	1759
the beneficiary next in order of precedence shall qualify as a	1760
beneficiary.	1761

Any payment made to a beneficiary as determined by the board	1762
shall be a full discharge and release to the board from any future	1763
claims.	1764

(D) Any amount due a retirant or disability benefit recipient	1765
receiving a monthly benefit and unpaid to the retirant or	1766
recipient at death shall be paid to the beneficiary designated	1767
~~under section 145.431 of the Revised Code~~in writing duly executed	1768
on a form provided by the board, signed by the retirant or	1769
recipient, and filed with the board. If no such designation has	1770
been filed, or if the designated beneficiary is not located within	1771
ninety days, any amounts payable under this chapter due to the	1772
death of the retirant or recipient shall be paid in the following	1773
order of precedence to the retirant's or recipient's:	1774

(1) Surviving spouse;

1775

(2) Children, share and share alike;

1776

(3) Parents, share and share alike;

1777

(4) Estate.

1778

The payment shall be a full discharge and release to the	1779
board from any future claim for the payment.	1780

Any amount due a beneficiary receiving a monthly benefit and	1781
unpaid to the beneficiary at the beneficiary's death shall be paid	1782
to the beneficiary's estate.	1783

(E) If the validity of marriage cannot be established to the	1784
satisfaction of the board for the purpose of disbursing any amount	1785
due under this section or section 145.45 of the Revised Code, the	1786
board may accept a decision rendered by a court having	1787
jurisdiction in the state in which the member was domiciled at the	1788
time of death that the relationship constituted a valid marriage	1789
at the time of death, or the "spouse" would have the same status	1790
as a widow or widower for purposes of sharing the distribution of	1791
the member's intestate personal property.	1792

(F) As used in this division, "recipient" means an individual	1793
who is receiving or may be eligible to receive an allowance or	1794
benefit under this chapter based on the individual's service to a	1795
public employer.	1796

If the death of a member, a recipient, or any individual who	1797
would be eligible to receive an allowance or benefit under this	1798
chapter by virtue of the death of a member or recipient is caused	1799
by one of the following beneficiaries, no amount due under this	1800
chapter to the beneficiary shall be paid to the beneficiary in the	1801
absence of a court order to the contrary filed with the board:	1802

(1) A beneficiary who is convicted of, pleads guilty to, or	1803
is found not guilty by reason of insanity of a violation of or	1804
complicity in the violation of either of the following:	1805

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

1806

(b) An existing or former law of any other state, the United	1807
States, or a foreign nation that is substantially equivalent to	1808
section 2903.01, 2903.02, or 2903.03 of the Revised Code.	1809

(2) A beneficiary who is indicted for a violation of or	1810
complicity in the violation of the sections or laws described in	1811
division (F)(1)(a) or (b) of this section and is adjudicated	1812
incompetent to stand trial;	1813

(3) A beneficiary who is a juvenile found to be a delinquent	1814
child by reason of committing an act that, if committed by an	1815
adult, would be a violation of or complicity in the violation of	1816
the sections or laws described in division (F)(1)(a) or (b) of	1817
this section.	1818

Sec. 145.431. Designation of a beneficiary for the purposes	1819
of section 145.40 of the Revised Code or ~~payment of benefits or~~a	1820
return of contributions to the beneficiary of a member	1821
participating in a PERS defined contribution plan shall be made	1822
under this section. A beneficiary shall be designated in writing	1823
duly executed on a form provided by the public employees	1824
retirement board and signed by the member. A designation under	1825
this section is not valid unless received by the board prior to	1826
the member's death.	1827

A beneficiary designation made under this section applies to	1828
the PERS defined benefit plan or PERS defined contribution plan in	1829
which the member participated or, if the member participated in	1830
both the defined benefit plan and one or more defined contribution	1831
plans, to both the defined benefit plan and the defined	1832
contribution plans.	1833

The last designation of any beneficiary revokes all previous	1834
designations. The member's marriage, divorce, marriage	1835
dissolution, legal separation, or withdrawal of account, or the	1836
birth of the member's child, or adoption of a child, shall	1837
constitute an automatic revocation of the member's previous	1838
designation.	1839

Sec. 145.45. Except as provided in division (C)(1) of this	1840
section, in lieu of accepting the payment of the accumulated	1841
account of a member who dies before service retirement, a	1842
beneficiary, as determined in this section or section 145.43 of	1843
the Revised Code, may elect to forfeit the accumulated	1844
contributions and to substitute certain other benefits under	1845
division (A) or (B) of this section.	1846

(A)(1) If a deceased member was eligible for a service	1847
retirement benefit as provided in section 145.33, 145.331, or	1848
145.332 of the Revised Code, a surviving spouse or other sole	1849
dependent beneficiary may elect to receive a monthly benefit	1850
computed as ~~the joint-survivor benefit designated as "plan A" in~~	1851
~~section 145.46 of the Revised Code~~a joint-life plan under which	1852
the spouse or beneficiary receives one hundred per cent of the	1853
actuarial equivalent of the deceased member's lesser retirement	1854
allowance payable for the member's life, which the member would	1855
have received had the member retired on the last day of the month	1856
of death and had the member at that time selected such	1857
~~joint-survivor~~a plan. Payment shall begin with the month	1858
subsequent to the member's death, except that a surviving spouse	1859
who is less than sixty-five years old may defer receipt of such	1860
benefit. Upon receipt, the benefit shall be calculated based upon	1861
the spouse's age at the time of first payment, and shall accrue	1862
regular interest during the time of deferral.	1863

(2) Beginning on a date selected by the public employees	1864
retirement board, which shall be not later than July 1, 2004, a	1865
surviving spouse or other sole dependent beneficiary may elect, in	1866
lieu of a monthly payment under division (A)(1) of this section, a	1867
plan of payment consisting of both of the following:	1868

(a) A lump sum in an amount the surviving spouse or other	1869
sole dependent beneficiary designates that constitutes a portion	1870
of the allowance that would be payable under division (A)(1) of	1871
this section;	1872

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

1873

The total amount paid as a lump sum and a monthly benefit	1874
shall be the actuarial equivalent of the amount that would have	1875
been paid had the lump sum not been selected.	1876

The lump sum amount designated by the surviving spouse or	1877
other sole dependent beneficiary under division (A)(2)(a) of this	1878
section shall be not less than six times and not more than	1879
thirty-six times the monthly amount that would be payable to the	1880
surviving spouse or other sole dependent beneficiary under	1881
division (A)(1) of this section and shall not result in a monthly	1882
payment that is less than fifty per cent of that monthly amount.	1883

(B) If a deceased member had, except as provided in division	1884
(B)(7) of this section, at least one and one-half years of	1885
contributing service credit, with, except as provided in division	1886
(B)(7) of this section, at least one-quarter year of contributing	1887
service credit within the two and one-half years prior to the date	1888
of death, or was receiving at the time of death a disability	1889
benefit as provided in section 145.36, 145.361, or 145.37 of the	1890
Revised Code, qualified survivors who elect to receive monthly	1891
benefits shall receive the greater of the benefits provided in	1892
division (B)(1)(a) or (b) and (4) of this section as allocated in	1893
accordance with division (B)(5) of this section.	1894

(1)(a) Number		Or	1895
of Qualified		Monthly	1896
survivors	Annual Benefit as a Per	Benefit	1897
affecting	Cent of Decedent's Final	shall not be	1898
the benefit	Average Salary	less than	1899
1	25%	$250	1900
2	40	400	1901
3	50	500	1902
4	55	500	1903
5 or more	60	500	1904

(b) Years of	Annual Benefit as a Per Cent	1905
Service	of Member's Final Average	1906
	Salary	1907
20	29%	1908
21	33	1909
22	37	1910
23	41	1911
24	45	1912
25	48	1913
26	51	1914
27	54	1915
28	57	1916
29 or more	60	1917

(2) Benefits shall begin as qualified survivors meet	1918
eligibility requirements as follows:	1919

(a) A qualified spouse is the surviving spouse of the	1920
deceased member, who is age sixty-two, or regardless of age meets	1921
one of the following qualifications:	1922

(i) Except as provided in division (B)(7) of this section,	1923
the deceased member had ten or more years of Ohio service credit.	1924

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

1925

(iii) The spouse is adjudged physically or mentally	1926
incompetent.	1927

A spouse of a member who died prior to August 27, 1970, whose	1928
eligibility was determined at the member's death, and who is	1929
physically or mentally incompetent on or after August 20, 1976,	1930
shall be paid the monthly benefit which that person would	1931
otherwise receive when qualified by age.	1932

(b) A qualified child is any child of the deceased member who	1933
has never been married and to whom one of the following applies:	1934

(i) Is under age eighteen, or under age twenty-two if the	1935
child is attending an institution of learning or training pursuant	1936
to a program designed to complete in each school year the	1937
equivalent of at least two-thirds of the full-time curriculum	1938
requirements of such institution and as further determined by	1939
board policy;	1940

(ii) Regardless of age, is adjudged physically or mentally	1941
incompetent at the time of the member's death.	1942

(c) A qualified parent is a dependent parent aged sixty-five	1943
or older or regardless of age if physically or mentally	1944
incompetent, a dependent parent whose eligibility was determined	1945
by the member's death prior to August 20, 1976, and who is	1946
physically or mentally incompetent on or after August 20, 1976,	1947
shall be paid the monthly benefit for which that person would	1948
otherwise qualify.	1949

(3) "Physically or mentally incompetent" as used in this	1950
section may be determined by a court of jurisdiction, or by a	1951
physician appointed by the retirement board. Incapability of	1952
making a living because of a physically or mentally disabling	1953
condition shall meet the qualifications of this division.	1954

(4) Benefits to a qualified survivor shall terminate upon	1955
ceasing to meet eligibility requirements as provided in this	1956
division, a first marriage, abandonment, adoption, or during	1957
active military service. Benefits to a deceased member's surviving	1958
spouse that were terminated under a former version of this section	1959
that required termination due to remarriage and were not resumed	1960
prior to September 16, 1998, shall resume on the first day of the	1961
month immediately following receipt by the board of an application	1962
on a form provided by the board.	1963

Upon the death of any subsequent spouse who was a member of	1964
the public employees retirement system, state teachers retirement	1965
system, or school employees retirement system, the surviving	1966
spouse of such member may elect to continue receiving benefits	1967
under this division, or to receive survivor's benefits, based upon	1968
the subsequent spouse's membership in one or more of the systems,	1969
for which such surviving spouse is eligible under this section or	1970
section 3307.66 or 3309.45 of the Revised Code. If the surviving	1971
spouse elects to continue receiving benefits under this division,	1972
such election shall not preclude the payment of benefits under	1973
this division to any other qualified survivor.	1974

Benefits shall begin or resume on the first day of the month	1975
following the attainment of eligibility and shall terminate on the	1976
first day of the month following loss of eligibility.	1977

(5)(a) If a benefit is payable under division (B)(1)(a) of	1978
this section, benefits to a qualified spouse shall be paid in the	1979
amount determined for the first qualifying survivor in division	1980
(B)(1)(a) of this section. All other qualifying survivors shall	1981
share equally in the benefit or remaining portion thereof.	1982

(b) All qualifying survivors shall share equally in a benefit	1983
payable under division (B)(1)(b) of this section, except that if	1984
there is a surviving spouse, the surviving spouse shall receive	1985
not less than the amount determined for the first qualifying	1986
survivor in division (B)(1)(a) of this section.	1987

(6) The beneficiary of a member who is also a member of the	1988
state teachers retirement system or of the school employees	1989
retirement system, must forfeit the member's accumulated	1990
contributions in those systems and in the public employees	1991
retirement system, if the beneficiary takes a survivor benefit.	1992
Such benefit shall be exclusively governed by section 145.37 of	1993
the Revised Code.	1994

(7) The following restrictions do not apply if the deceased	1995
member was contributing toward benefits under section 145.332 of	1996
the Revised Code at the time of death:	1997

(a) That the deceased member have had at least one and	1998
one-half years of contributing service credit, with at least	1999
one-quarter year of contributing service within the two and	2000
one-half years prior to the date of death;	2001

(b) If the deceased member was killed in the line of duty,	2002
that the deceased member have had ten or more years of Ohio	2003
service credit as described in division (B)(2)(a)(i) of this	2004
section.	2005

For the purposes of division (B)(7)(b) of this section,	2006
"killed in the line of duty," means either that death occurred in	2007
the line of duty or that death occurred as a result of injury	2008
sustained in the line of duty.	2009

(C)(1) Regardless of whether the member is survived by a	2010
spouse or designated beneficiary, if the public employees	2011
retirement system receives notice that a deceased member described	2012
in division (A) or (B) of this section has one or more qualified	2013
children, all persons who are qualified survivors under division	2014
(B) of this section shall receive monthly benefits as provided in	2015
division (B) of this section.	2016

If, after determining the monthly benefits to be paid under	2017
division (B) of this section, the system receives notice that	2018
there is a qualified survivor who was not considered when the	2019
determination was made, the system shall, notwithstanding section	2020
145.561 of the Revised Code, recalculate the monthly benefits with	2021
that qualified survivor included, even if the benefits to	2022
qualified survivors already receiving benefits are reduced as a	2023
result. The benefits shall be calculated as if the qualified	2024
survivor who is the subject of the notice became eligible on the	2025
date the notice was received and shall be paid to qualified	2026
survivors effective on the first day of the first month following	2027
the system's receipt of the notice.	2028

If the retirement system did not receive notice that a	2029
deceased member has one or more qualified children prior to making	2030
payment under section 145.43 of the Revised Code to a beneficiary	2031
as determined by the retirement system, the payment is a full	2032
discharge and release of the system from any future claims under	2033
this section or section 145.43 of the Revised Code.	2034

(2) If benefits under division (C)(1) of this section to all	2035
persons, or to all persons other than a surviving spouse or other	2036
sole beneficiary, terminate, there are no children under the age	2037
of twenty-two years, and the surviving spouse or beneficiary	2038
qualifies for benefits under division (A) of this section, the	2039
surviving spouse or beneficiary may elect to receive benefits	2040
under division (A) of this section. The benefits shall be	2041
effective on the first day of the month immediately following the	2042
termination.	2043

(D) The final average salary used in the calculation of a	2044
benefit payable pursuant to division (A) or (B) of this section to	2045
a survivor or beneficiary of a disability benefit recipient shall	2046
be adjusted for each year between the disability benefit's	2047
effective date and the recipient's date of death by the lesser of	2048
three per cent or the actual average percentage increase in the	2049
consumer price index prepared by the United States bureau of labor	2050
statistics (U.S. city average for urban wage earners and clerical	2051
workers: "all items 1982-84=100").	2052

(E) If the survivor benefits due and paid under this section	2053
are in a total amount less than the member's accumulated account	2054
that was transferred from the public employees' savings fund to	2055
the survivors' benefit fund, then the difference between the total	2056
amount of the benefits paid shall be paid to the beneficiary under	2057
section 145.43 of the Revised Code.	2058

Sec. 145.46. (A) A retirement allowance calculated under	2059
section 145.33, 145.331, or 145.332 of the Revised Code shall be	2060
paid as provided in this section.	2061

Unless the member is required by division (C) of this section	2062
to select a specified plan of payment, a member may elect a plan	2063
of payment as provided in division (B)(1), (2), or (3) of this	2064
section. An election shall be made at the time the member makes	2065
application for retirement and on a form provided by the public	2066
employees retirement board. A plan of payment elected under this	2067
section shall be effective only if approved by the board, which	2068
shall approve it only if it is certified by an actuary engaged by	2069
the board to be the actuarial equivalent of the retirement	2070
allowance calculated under section 145.33, 145.331, or 145.332 of	2071
the Revised Code.	2072

(B) The following plans of payment shall be offered by the	2073
public employees retirement system:	2074

(1) "Joint-life plan," an allowance that consists of the	2075
actuarial equivalent of the member's retirement allowance	2076
determined under section 145.33, 145.331, or 145.332 of the	2077
Revised Code in a lesser amount payable for life and one-half or	2078
some other portion equal to ten per cent or more of the allowance	2079
continuing after death to the member's designated beneficiary for	2080
the beneficiary's life. The beneficiary shall be nominated by	2081
written designation filed with the retirement board. The amount	2082
payable to the beneficiary shall not exceed the amount payable to	2083
the member.	2084

(2) "Single-life plan," the member's retirement allowance	2085
determined under section 145.33, 145.331, or 145.332 of the	2086
Revised Code;	2087

(3) "Multiple-life plan," an allowance that consists of the	2088
actuarial equivalent of the member's retirement allowance	2089
determined under section 145.33, 145.331, or 145.332 of the	2090
Revised Code in a lesser amount payable to the retirant for life	2091
and some portion of the lesser amount continuing after death to	2092
two, three, or four surviving beneficiaries designated at the time	2093
of the member's retirement. Unless required under division (C) of	2094
this section, no portion allocated under this plan of payment	2095
shall be less than ten per cent. The total of the portions	2096
allocated shall not exceed one hundred per cent of the member's	2097
lesser allowance.	2098

2099

(1) Subject to division (C)(2) of this section, if the member	2100
is married at the time of retirement, the member shall select a	2101
joint-life plan and receive a plan of payment that consists of the	2102
actuarial equivalent of the member's retirement allowance	2103
determined under section 145.33, 145.331, or 145.332 of the	2104
Revised Code in a lesser amount payable for life and one-half of	2105
such allowance continuing after death to the member's surviving	2106
spouse for the life of the spouse. A married member is not	2107
required to select this plan of payment if the member's spouse	2108
consents in writing to the member's election of a plan of payment	2109
other than described in this division or the board waives the	2110
requirement that the spouse consent;	2111

(2) If prior to the effective date of the member's	2112
retirement, the public employees retirement board receives a copy	2113
of a court order issued under section 3105.171 or 3105.65 of the	2114
Revised Code or the laws of another state regarding division of	2115
marital property the board shall accept the member's election of a	2116
plan of payment under this section only if the member complies	2117
with both of the following:	2118

(a) The member elects a plan of payment that is in accordance	2119
with the order.	2120

(b) If the member is married, the member elects a	2121
multiple-life plan and designates the member's current spouse as a	2122
beneficiary under that plan unless that spouse consents in writing	2123
to not being designated a beneficiary under any plan of payment or	2124
the board waives the requirement that the current spouse consent.	2125

(D) An application for retirement shall include an	2126
explanation of all of the following:	2127

(1) That, if the member is married, unless the spouse	2128
consents to another plan of payment or there is a court order	2129
dividing marital property issued under section 3105.171 or 3105.65	2130
of the Revised Code or the laws of another state regarding the	2131
division of marital property that provides for payment in a	2132
specified amount, the member's retirement allowance will be paid	2133
under a joint-life plan and consist of the actuarial equivalent of	2134
the member's retirement allowance in a lesser amount payable for	2135
life and one-half of the allowance continuing after death to the	2136
surviving spouse for the life of the spouse;	2137

(2) A description of the alternative plans of payment,	2138
including all plans described in division (B) of this section,	2139
available with the consent of the spouse;	2140

(3) That the spouse may consent to another plan of payment	2141
and the procedure for giving consent;	2142

(4) That consent is irrevocable once notice of consent is	2143
filed with the board.	2144

Consent shall be valid only if it is signed, in writing, and	2145
witnessed by a notary public. The board may waive the requirement	2146
of consent if the spouse is incapacitated or cannot be located or	2147
for any other reason specified by the board. Consent or waiver is	2148
effective only with regard to the spouse who is the subject of the	2149
consent or waiver.	2150

(E)(1) Beginning on a date selected by the retirement board,	2151
which shall be not later than July 1, 2004, a member may elect to	2152
receive a retirement allowance under a plan of payment consisting	2153
of both a lump sum in an amount the member designates that	2154
constitutes a portion of the member's retirement allowance under a	2155
plan described in division (B) of this section and the remainder	2156
as a monthly allowance under that plan.	2157

The total amount paid as a lump sum and a monthly benefit	2158
shall be the actuarial equivalent of the amount that would have	2159
been paid had the lump sum not been selected.	2160

(2) The lump sum designated by a member shall be not less	2161
than six times and not more than thirty-six times the monthly	2162
amount that would be payable to the member under the plan of	2163
payment elected under division (B) of this section had the lump	2164
sum not been elected and shall not result in a monthly allowance	2165
that is less than fifty per cent of that monthly amount.	2166

(F) If the retirement allowances, as a single life annuity or	2167
payment plan as provided in this section, due and paid are in a	2168
total amount less than (1) the accumulated contributions, and (2)	2169
other deposits made by the member as provided by this chapter,	2170
standing to the credit of the member at the time of retirement,	2171
then the difference between the total amount of the allowances	2172
paid and the accumulated contributions and other deposits shall be	2173
paid to the beneficiary provided under division (D) of section	2174
145.43 of the Revised Code.	2175

(G)(1) The death of a spouse or any designated beneficiary	2176
following retirement shall cancel the portion of the plan of	2177
payment providing continuing lifetime benefits to the deceased	2178
spouse or deceased designated beneficiary. The retirant shall	2179
receive the actuarial equivalent of the retirant's single lifetime	2180
benefit, as determined by the board, based on the number of	2181
remaining beneficiaries, with no change in the amount payable to	2182
any remaining beneficiary. The change shall be effective the month	2183
following the date of death.	2184

(2) On divorce, annulment, or marriage dissolution, a	2185
retirant receiving a retirement allowance under a plan that	2186
provides for continuation of all or part of the allowance after	2187
death for the lifetime of the retirant's surviving spouse may,	2188
with the written consent of the spouse or pursuant to an order of	2189
the court with jurisdiction over the termination of the marriage,	2190
elect to cancel the portion of the plan providing continuing	2191
lifetime benefits to that spouse. The retirant shall receive the	2192
actuarial equivalent of the retirant's single lifetime benefit as	2193
determined by the retirement board based on the number of	2194
remaining beneficiaries, with no change in amount payable to any	2195
remaining beneficiary. The election shall be made on a form	2196
provided by the board and shall be effective the month following	2197
its receipt by the board.	2198

(H)(1) Following a marriage or remarriage, both of the	2199
following apply:	2200

(a) A retirant who is receiving the retirant's retirement	2201
allowance under a single-life plan may elect a new plan of payment	2202
under division (B)(1) ~~or (3)~~ of this section based on the	2203
actuarial equivalent of the retirant's single lifetime benefit as	2204
determined by the board.	2205

(b) A retirant who is receiving a retirement allowance	2206
pursuant to a plan of payment providing for payment to a former	2207
spouse pursuant to a court order described in division (C)(2) of	2208
this section may elect a new plan of payment in the form of a	2209
multiple-life plan based on the actuarial equivalent of the	2210
retirant's single lifetime retirement allowance as determined by	2211
the board if the new plan of payment elected does not reduce the	2212
payment to the former spouse.	2213

(2) If the marriage or remarriage occurs on or after June 6,	2214
2005, the election must be made not later than one year after the	2215
date of the marriage or remarriage.	2216

The plan elected under this division shall become effective	2217
on the date of receipt by the board of an application on a form	2218
approved by the board, but any change in the amount of the	2219
retirement allowance shall commence on the first day of the month	2220
following the effective date of the plan.	2221

(I) Any person who, prior to July 24, 1990, selected an	2222
optional plan of payment at retirement that provided for a return	2223
to the single life benefit after the designated beneficiary's	2224
death shall have the retirant's benefit adjusted to the optional	2225
plan equivalent without such provision.	2226

(J) A retirant's receipt of the first month's retirement	2227
allowance constitutes the retirant's final acceptance of the plan	2228
of payment and may be changed only as provided in this chapter.	2229

Sec. 145.563. Notwithstanding section 145.561 of the Revised	2230
Code:	2231

(A) The public employees retirement system may adjust an	2232
allowance or benefit payable under this chapter if an error	2233
occurred in calculation of the allowance or benefit;	2234

(B) If any person who is a member, former member,	2235
contributor, former contributor, retirant, beneficiary, or	2236
alternate payee, as defined in section 3105.80 of the Revised	2237
Code, is paid any benefit or payment by the public employees	2238
retirement system, including any payment made to a third party on	2239
the person's behalf, to which the person is not entitled, the	2240
benefit or payment shall be repaid to the retirement system by the	2241
person or third party. IfA repayment required by this section may	2242
include a penalty or interest on the amount of the benefit or	2243
payment, as specified in rules adopted by the public employees	2244
retirement board. The rules shall specify the method for	2245
calculating a penalty or interest and the conditions under which a	2246
penalty or interest may be assessed.	2247

If the person or third party fails to make the repayment, the	2248
retirement system shall withhold the amount or a portion of the	2249
amount due from any benefit or payment due the person or the	2250
person's beneficiary under this chapter, or may collect the amount	2251
in any other manner provided by law.	2252

Sec. 145.58. (A) The public employees retirement board shall	2253
adopt rules establishing eligibility for any coverage provided	2254
under this section. The rules shall base eligibility on years and	2255
types of service credit earned by members. Eligibility	2256
determinations shall be made in accordance with the rules, except	2257
that an individual who, as a result of making a false statement in	2258
an attempt to secure a benefit under this section, is convicted of	2259
violating section 2921.13 of the Revised Code is ineligible for	2260
coverage.	2261

(B) The board may enter into agreements with insurance	2262
companies, health insuring corporations, or government agencies	2263
authorized to do business in the state for issuance of a policy or	2264
contract of health, medical, hospital, or surgical ~~benefits~~	2265
coverage, or any combination thereof, for eligible individuals	2266
receiving age and service retirement or a disability or survivor	2267
benefit subscribing to the plan, or for PERS retirants employed	2268
under section 145.38 of the Revised Code, for coverage ~~of benefits~~	2269
in accordance with division ~~(C)~~(D)(2) of section 145.38 of the	2270
Revised Code. Notwithstanding any other provision of this chapter,	2271
the policy or contract may also include coverage for any eligible	2272
individual's spouse and dependent children and for any of the	2273
eligible individual's sponsored dependents as the board determines	2274
appropriate. If all or any portion of the policy or contract	2275
premium is to be paid by any individual receiving age and service	2276
retirement or a disability or survivor benefit, the individual	2277
shall, by written authorization, instruct the board to deduct the	2278
premium agreed to be paid by the individual to the company,	2279
corporation, or agency.	2280

The board may contract for coverage on the basis of part or	2281
all of the cost of the coverage to be paid from appropriate funds	2282
of the public employees retirement system. The cost paid from the	2283
funds of the system shall be included in the employer's	2284
contribution rate provided by sections 145.48 and 145.51 of the	2285
Revised Code. The board may by rule provide coverage to	2286
individuals who are not eligible under the rules adopted under	2287
division (A) of this section if the coverage is provided at no	2288
cost to the retirement system. The board shall not pay or	2289
reimburse the cost for coverage under this section or section	2290
145.584 of the Revised Code for any such individual.	2291

The board may provide for self-insurance of risk or level of	2292
risk as set forth in the contract with the companies,	2293
corporations, or agencies, and may provide through the	2294
self-insurance method specific ~~benefits~~coverage as authorized by	2295
rules of the board.	2296

(C) The board shall, beginning the month following receipt of	2297
satisfactory evidence of the payment for coverage, pay monthly to	2298
each recipient of service retirement, or a disability or survivor	2299
benefit under the public employees retirement system who is	2300
eligible for coverage under part B of the medicare program	2301
established under Title XVIII of "The Social Security Act	2302
Amendments of 1965," 79 Stat. 301 (1965), 42 U.S.C.A. 1395j, as	2303
amended, an amount determined by the board for such coverage,	2304
except that the board shall make no such payment to any individual	2305
who is not eligible for coverage under the rules adopted under	2306
division (A) of this section or pay an amount that exceeds the	2307
amount paid by the recipient for the coverage.	2308

At the request of the board, the recipient shall certify to	2309
the retirement system the amount paid by the recipient for	2310
coverage described in this division.	2311

(D) The board shall establish by rule requirements for the	2312
coordination of any coverage,or payment~~, or benefit~~ provided	2313
under this section or section 145.584 of the Revised Code with any	2314
similar coverage,or payment~~, or benefit~~ made available to the	2315
same individual by the Ohio police and fire pension fund, state	2316
teachers retirement system, school employees retirement system, or	2317
state highway patrol retirement system.	2318

(E) The board shall make all other necessary rules pursuant	2319
to the purpose and intent of this section.	2320

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

2321

(1) "Long-term care insurance" has the same meaning as in	2322
section 3923.41 of the Revised Code.	2323

(2) "Retirement systems" means the public employees	2324
retirement system, the Ohio police and fire pension fund, the	2325
state teachers retirement system, the school employees retirement	2326
system, and the state highway patrol retirement system.	2327

(B) The public employees retirement board ~~shall~~may establish	2328
a long-term care insurance program consisting of the programs	2329
authorized by divisions (C) and (D) of this section. Such program	2330
may be established independently or jointly with one or more of	2331
the other retirement systems. If the program is established	2332
jointly, the board shall adopt rules in accordance with section	2333
111.15 of the Revised Code to establish the terms and conditions	2334
of such joint participation.	2335

(C) The board ~~shall~~may establish a program under which it	2336
makes long-term care insurance available to any person who	2337
participated in a policy of long-term care insurance for which the	2338
state or a political subdivision contracted under section 124.84	2339
or 124.841 of the Revised Code and is the recipient of a pension,	2340
benefit, or allowance from the system. To implement the program	2341
under this division, the board, subject to division (E) of this	2342
section, may enter into an agreement with the insurance company,	2343
health insuring corporation, or government agency that provided	2344
the insurance. The board shall, under any such agreement, deduct	2345
the full premium charged from the person's benefit, pension, or	2346
allowance notwithstanding any employer agreement to the contrary.	2347

Any long-term care insurance policy entered into under this	2348
division is subject to division (C) of section 124.84 of the	2349
Revised Code.	2350

(D)(1) The board, subject to division (E) of this section,	2351
~~shall~~may establish a program under which a recipient of a	2352
pension, benefit, or allowance from the system who is not eligible	2353
for such insurance under division (C) of this section may	2354
participate in a contract for long-term care insurance.	2355
Participation may include the recipient's dependents and family	2356
members.	2357

(2) The board ~~shall~~may adopt rules in accordance with	2358
section 111.15 of the Revised Code governing the program. ~~The~~Any	2359
rules adopted by the board shall establish methods of payment for	2360
participation under this section, which may include deduction of	2361
the full premium charged from a recipient's pension, benefit, or	2362
allowance, or any other method of payment considered appropriate	2363
by the board.	2364

(E) Prior to entering into any agreement or contract with an	2365
insurance company or health insuring corporation for the purchase	2366
of, or participation in, a long-term care insurance policy under	2367
this section, the board shall request the superintendent of	2368
insurance to certify the financial condition of the company or	2369
corporation. The board shall not enter into the agreement or	2370
contract if, according to that certification, the company or	2371
corporation is insolvent, is determined by the superintendent to	2372
be potentially unable to fulfill its contractual obligations, or	2373
is placed under an order of rehabilitation or conservation by a	2374
court of competent jurisdiction or under an order of supervision	2375
by the superintendent.	2376

Sec. 145.584. (A) Except as otherwise provided in division	2377
(B) of this section, the board of the public employees retirement	2378
system shall make available to each retirant or disability benefit	2379
recipient receiving a monthly allowance or benefit on or after	2380
January 1, 1968, who has attained the age of sixty-five years, and	2381
who is not eligible to receive hospital insurance benefits under	2382
the federal old age, survivors, and disability insurance program	2383
without payment of premiums, ~~hospital~~one of the following:	2384

(1) Hospital insurance coverage substantially equivalent to	2385
the federal hospital insurance benefits, Social Security	2386
Amendments of 1965, 79 Stat. 291, 42 U.S.C.A. 1395c, as amended;	2387

(2) An amount, determined by the board, to reimburse the	2388
retirant or disability benefit recipient for payment of premiums	2389
for federal hospital insurance benefits described in this	2390
division, which amount shall not exceed the premiums paid. ~~This~~	2391

This coverage or amount shall also be made available to the	2392
spouse, widow, or widower of such retirant or disability benefit	2393
recipient provided such spouse, widow, or widower has attained age	2394
sixty-five and is not eligible to receive hospital insurance	2395
benefits under the federal old age, survivors, and disability	2396
insurance program without payment of premiums. The widow or	2397
widower of a retirant or disability benefit recipient shall be	2398
eligible for such coverage or amount only if he or she is the	2399
recipient of a monthly allowance or benefit from this system. A	2400
portion of the cost of the premium or amount for the spouse may be	2401
paid from the appropriate funds of the ~~public employees retirement~~	2402
system. The remainder of the cost shall be paid by the recipient	2403
of the allowance or benefit.	2404

The cost of such coverage or amount, paid from the funds of	2405
the system, shall be included in the employer's rate provided by	2406
section 145.48 of the Revised Code. The retirement board is	2407
authorized to make all necessary rules pursuant to the purpose and	2408
intent of this section, and ~~shall~~may contract for such coverage	2409
as provided in section 145.58 of the Revised Code.	2410

At the request of the board, the recipient of reimbursement	2411
under this section shall certify to the retirement system the	2412
premium paid for the federal insurance benefits described in	2413
division (A) of this section. Payment of the amount described in	2414
division (A)(2) of this section shall begin for the first month	2415
that the recipient is participating in both the federal hospital	2416
insurance benefits and a health care arrangement offered by the	2417
system.	2418

(B) The board need not make the hospital insurance coverage	2419
or amount described in division (A) of this section available to	2420
any person for whom it is prohibited by section 145.58 of the	2421
Revised Code from paying or reimbursing the premium cost of such	2422
insurance.	2423

Sec. 145.63. (A) Deposits under section 145.62 of the Revised	2424
Code, together with earnings, shall be refunded under whichever of	2425
the following circumstances applies:	2426

(1) On withdrawal of accumulated contributions as provided in	2427
sections 145.40 and 145.43 of the Revised Code or payment of a	2428
lump sum under section 145.384 of the Revised Code;	2429

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

2430

(3) In the case of a contributor participating in the PERS	2431
defined benefit plan, on application of the contributor prior to	2432
attaining eligibility for age and service retirement;	2433

(4) In the case of a contributor under section 145.38 or	2434
145.383 of the Revised Code, on application of the contributor	2435
prior to attaining eligibility for a benefit under section 145.384	2436
of the Revised Code;	2437

(5) In the case of a contributor who has attained eligibility	2438
for an age and service retirement benefit or a benefit under	2439
section 145.384 of the Revised Code and is not married, on	2440
application;	2441

(6) 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 married, on application	2444
if the application is accompanied by a statement of the spouse's	2445
consent to the refund or the public employees retirement board	2446
waives the requirement that the spouse consent;	2447

(7) In the case of a contributor who has attained eligibility	2448
for an age and service retirement benefit as a consequence of	2449
section 145.37 of the Revised Code and will receive a retirement	2450
or disability benefit from the state teachers retirement system or	2451
school employees retirement system but has not requested a	2452
transfer of funds to the other retirement system under division	2453
(B)~~(1)(g)~~(8) of section 145.37 of the Revised Code, at the time	2454
the public employees retirement system pays to the other	2455
retirement system the amount required under division (B)~~(1)(e)~~(6)	2456
of that section;	2457

(8) In the case of a disability benefit recipient under	2458
section 145.36 of the Revised Code who is not eligible for an age	2459
and service retirement allowance, on the effective date of	2460
disability retirement.	2461

(B) The consent of a spouse to a refund is valid only if it	2462
is in writing, signed, and witnessed by a notary public.	2463

The board may waive the requirement of consent if the spouse	2464
is incapacitated or cannot be located or for any other reason	2465
specified by the board. Consent or waiver is effective only with	2466
regard to the spouse who is the subject of the consent or waiver.	2467

Sec. 145.64. (A) As used in this section, "joint-life plan,"	2468
"single-life plan," and "multiple-life plan" have the same	2469
meanings as in division (B) of section 145.46 of the Revised Code.	2470

(B) A contributor who has not received a refund of amounts	2471
deposited under section 145.62 or the version of division (C) of	2472
section 145.23 of the Revised Code as it existed immediately prior	2473
to April 6, 2007, may file an application with the public	2474
employees retirement system for a benefit under this section.	2475
Except as provided in section 145.62 of the Revised Code, the	2476
benefit shall consist of an annuity that shall be paid as	2477
described in division (B) of section 145.46 of the Revised Code.	2478

The application must be filed prior to receipt of an age and	2479
service retirement benefit from the retirement system or, in the	2480
case of a contributor under section 145.38 or 145.383 of the	2481
Revised Code, a benefit under section 145.384 of the Revised Code.	2482
A contributor who fails to file an application for a benefit under	2483
this section prior to receipt of an age and service retirement	2484
benefit or a benefit under section 145.384 of the Revised Code	2485
shall be eligible only for a refund under section 145.63 of the	2486
Revised Code.	2487

(1) Except as provided in division (B)(2) of this section, a	2488
contributor who is married at the time of application for a	2489
benefit under this section shall receive the benefit as a monthly	2490
annuity under a joint-life plan.	2491

(2) A contributor may receive a benefit under this section	2492
under a plan of payment other than a joint-life plan if one of the	2493
following is the case:	2494

(a) The contributor is unmarried;

2495

(b) The benefit application is accompanied by a statement of	2496
the spouse's consent to another plan of payment or the public	2497
employees retirement board waives the requirement that the spouse	2498
consent;	2499

(c) A plan of payment providing for payment in a specified	2500
portion of the benefit continuing after the member's death to a	2501
former spouse is required by a court order issued under section	2502
3105.171 or 3105.65 of the Revised Code or the laws of another	2503
state regarding division of marital property prior to the	2504
effective date of the contributor's benefit application.	2505

(3) If a member is subject to division (B)(2)(c) of this	2506
section and the board has received a copy of the order described	2507
in that division, the board shall accept the member's election of	2508
a plan of payment under this section only if the member complies	2509
with both of the following:	2510

(a) The member elects a plan of payment that is in accordance	2511
with the order described in division (B)(2)(c) of this section.	2512

(b) If the member is married, the member elects a	2513
multiple-life plan and designates the member's current spouse as a	2514
beneficiary under that plan unless that spouse consents in writing	2515
to not being designated a beneficiary or the board waives the	2516
requirement that the current spouse consent.	2517

(4) The contributor shall designate the beneficiary or	2518
beneficiaries under a plan of payment in writing at the time the	2519
plan is selected.	2520

(5) A plan of payment, other than a single-life plan, shall	2521
be effective only if it is certified by an actuary engaged by the	2522
board to be the actuarial equivalent of the contributor's	2523
single-life plan annuity and is approved by the board.	2524

(6) A contributor who is eligible to select a plan of payment	2525
under this section but fails to do so shall receive a monthly	2526
annuity under the plan of payment specified in rules adopted by	2527
the board.	2528

(C) An annuity shall be paid monthly and consist of an amount	2529
determined by the public employees retirement system or the	2530
actuarial equivalent of that amount paid as described in this	2531
section.	2532

Payments shall begin on whichever of the following applies:

2533

(1) Except as provided in this division, the later of the	2534
effective date of the contributor's age and service retirement	2535
allowance or the first day of the month following the latest of:	2536

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

2537

(b) The attainment of the member's applicable minimum age or	2538
service credit eligibility as provided in section 145.32 or	2539
145.332 of the Revised Code;	2540

(c) The first day of the month following receipt of an	2541
application for an age and service retirement benefit.	2542

(2) The later of the effective date of a benefit under	2543
section 145.384 of the Revised Code or the first day of the month	2544
following the latest of:	2545

(a) The last day for which compensation for employment	2546
subject to section 145.38 or 145.383 of the Revised Code was paid;	2547

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

2548

(c) If the contributor was previously employed as described	2549
in division (E)(3) of section 145.384 of the Revised Code,	2550
completion of a period of twelve months since the effective date	2551
of the last benefit under that section;	2552

(d) Receipt of an application for a benefit under section	2553
145.384 of the Revised Code.	2554

(3) The ~~later of the~~ effective date of disability retirement	2555
under section 145.36 of the Revised Code orif the ~~date on which a~~	2556
member ~~receiving disability retirement would have been~~is eligible	2557
for an age and service retirement allowance on that date.	2558

(4) The first day of the month following the last day for	2559
which a disability allowance is paid under section 145.361 of the	2560
Revised Code.	2561

(D) The consent of a spouse to a plan of payment other than a	2562
joint-life plan is valid only if it is in writing, signed, and	2563
witnessed by a notary public. The board may waive the requirement	2564
of consent if the spouse is incapacitated or cannot be located or	2565
for any other reason specified by the board. Consent or waiver is	2566
effective only with regard to the spouse who is the subject of the	2567
consent or waiver.	2568

(E)(1) The death of a spouse or any designated beneficiary	2569
shall cancel the portion of an annuity providing continuing	2570
lifetime payments to the deceased spouse or deceased designated	2571
beneficiary. The contributor shall receive the actuarial	2572
equivalent of the contributor's remaining annuity, as determined	2573
by the board, based on the number of remaining beneficiaries, with	2574
no change in the amount payable to any remaining beneficiary. If	2575
the retirement system receives notice of the death on or after ~~the~~	2576
~~effective date of this amendment~~January 7, 2013, the change shall	2577
be effective the month following the date of death.	2578

(2) On divorce, annulment, or marriage dissolution, a	2579
contributor receiving an annuity under a plan of payment that	2580
provides for continuation of all or part of the annuity after	2581
death for the lifetime of the contributor's surviving spouse may,	2582
with the written consent of the spouse or pursuant to an order of	2583
the court with jurisdiction over the termination of the marriage,	2584
elect to cancel the portion of the plan providing continuing	2585
lifetime payments to that spouse. The contributor shall receive	2586
the actuarial equivalent of the contributor's annuity as	2587
determined by the board based on the number of remaining	2588
beneficiaries, with no change in the amount payable to any	2589
remaining beneficiary. The election shall be made on a form	2590
provided by the board and shall be effective the month following	2591
its receipt by the board.	2592

(F)(1) Following a marriage or remarriage, both of the	2593
following apply:	2594

(a) A contributor who is receiving payments under a	2595
single-life plan may elect a new plan of payment based on the	2596
actuarial equivalent of the contributor's single-life plan annuity	2597
as determined by the board.	2598

(b) A contributor receiving an annuity under this section	2599
pursuant to a plan of payment providing for payment to a former	2600
spouse pursuant to a court order as described in division	2601
(B)(2)(c) of this section may elect a new plan of payment under a	2602
multiple-life plan based on the actuarial equivalent of the	2603
contributor's benefit as determined by the board if the new plan	2604
of payment does not reduce the payment to the former spouse.	2605

(2) An election under division (F)(1) of this section must be	2606
made not later than one year after the date of the marriage or	2607
remarriage.	2608

The plan elected shall become effective on the date of	2609
receipt by the board of an application on a form approved by the	2610
board, but any change in the amount of the annuity payment shall	2611
commence on the first day of the month following the effective	2612
date of the plan.	2613

(G) If at the time of death a contributor receiving a monthly	2614
annuity under a single-life plan has received less than the	2615
retirant's deposits under section 145.62 or the version of	2616
division (C) of section 145.23 of the Revised Code as it existed	2617
immediately prior to April 6, 2007, plus earnings on those	2618
deposits, the difference between the amount received and the	2619
amount of the contributor's deposits plus earnings shall be paid	2620
to the contributor's beneficiary under section 145.65 of the	2621
Revised Code. If any designated beneficiary receiving a monthly	2622
annuity under this section dies and at the time of the	2623
beneficiary's death the amounts paid to the contributor and the	2624
beneficiary are less than the amount of the contributor's deposits	2625
plus earnings on those deposits, the difference between the amount	2626
received by the contributor and the beneficiary and the amount of	2627
the contributor's deposits plus earnings shall be paid to the	2628
beneficiary's estate.	2629

(H) Receipt of the first month's annuity payment constitutes	2630
final acceptance of the plan of payment and may be changed only as	2631
provided in this section.	2632

Sec. 145.82. (A) Except as provided in divisions (B) and (C)	2633
of this section, sections 145.201 to 145.70 of the Revised Code do	2634
not apply to a PERS defined contribution plan, except that a PERS	2635
defined contribution plan may incorporate provisions of those	2636
sections as specified in the plan document.	2637

(B) The following sections of Chapter 145. of the Revised	2638
Code apply to a PERS defined contribution plan: ~~145.195~~145.01 to	2639
145.20, 145.22, 145.221, 145.23, 145.25, 145.26, 145.27, 145.296,	2640
145.38, 145.384, 145.391, ~~145.43,~~ 145.431, 145.47, 145.48,	2641
145.483, 145.51, 145.52, 145.53, 145.54, 145.55, 145.56, 145.563,	2642
145.57, 145.571, 145.572, ~~145.573, 145.574,~~ 145.69, and 145.70 of	2643
the Revised Code.	2644

(C) A PERS defined contribution plan that includes definitely	2645
determinable benefits may incorporate by reference all or part of	2646
sections 145.201 to 145.79 of the Revised Code to allow a member	2647
participating in the plan to purchase service credit or to be	2648
eligible for any of the following:	2649

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

2650

(2) Health or long-term care insurance or any other type of	2651
health care benefit;	2652

(3) Additional increases under section 145.323 of the Revised	2653
Code;	2654

(4) A refund of contributions made by or on behalf of a	2655
member.	2656

With respect to the benefits described in division (C)(1) of	2657
this section, the public employees retirement board may establish	2658
eligibility requirements and benefit formulas or amounts that	2659
differ from those of members participating in the PERS defined	2660
benefit plan. With respect to the purchase of service credit by a	2661
member participating in a PERS defined contribution plan, the	2662
board may reduce the cost of the service credit to reflect the	2663
different benefit formula established for the member.	2664

Sec. 145.88. Amounts contributed under sections 145.85 and	2665
145.86 of the Revised Code, and any earnings on those amounts,	2666
shall be deposited and credited in accordance with the PERS	2667
defined contribution plan that is selected by the member. The plan	2668
may include provisions authorizing the public employees retirement	2669
system to do either of the following:	2670

(A) Withhold from the amounts contributed under sections	2671
145.85 and 145.86 of the Revised Code a percentage of earnable	2672
salary or a fixed dollar amount that is determined by an actuary	2673
appointed by the public employees retirement board to be necessary	2674
to administer the plan;	2675

(B) Withhold from the amounts contributed under section	2676
145.86 of the Revised Code a percentage of earnable salary for the	2677
purpose of funding health care insurance coverage or any other	2678
type of health care benefit for a member participating in the	2679
plan.	2680

Sec. 145.92. If a member participating in a PERS defined	2681
contribution plan is married at the time benefits under the plan	2682
are to commence, unless the spouse consents to another plan of	2683
payment or the spouse's consent is waived, the member's benefit	2684
under the plan shall be paid in a lesser amount payable for life	2685
and one-half of that amount continuing after death to the	2686
surviving spouse for the life of the spouse.	2687

Consent is valid only if it is evidenced by a written	2688
document signed by the spouse and the signature is witnessed by a	2689
notary public. A plan may waive the requirement of consent if the	2690
spouse is incapacitated or cannot be located or for any other	2691
reason specified by the plan or in rules adopted by the public	2692
employees retirement board.	2693

A plan shall waive the requirement of consent if a plan of	2694
payment that provides for payment in a specified portion of the	2695
~~retirement allowance~~benefit continuing after the member's death	2696
to a former spouse is required by a court order issued under	2697
section 3105.171 or 3105.65 of the Revised Code or laws of another	2698
state regarding division of marital property prior to the	2699
effective date of the member's retirement. If a court order	2700
requires this plan of payment, the member shall be required to	2701
annuitize the member's accumulated amounts in accordance with the	2702
order. If the member is married, the plan of payment selected by	2703
the member also shall provide for payment to the member's current	2704
spouse, unless the current spouse consents in writing to not being	2705
designated a beneficiary under the plan of payment or the current	2706
spouse's consent is waived by reason other than the court order.	2707

Consent or waiver is effective only with regard to the spouse	2708
who is the subject of the consent or waiver.	2709

Sec. 145.95. (A) Subject to division (B) of this section and	2710
sections 145.38, 145.56, 145.57, 145.572, 145.573, and 145.574 of	2711
the Revised Code, the right of a member participating in a PERS	2712
defined contribution plan to any payment or benefit accruing from	2713
contributions made by or on behalf of the member under sections	2714
145.85 and 145.86 of the Revised Code shall vest in accordance	2715
with this section.	2716

A member's right to any payment or benefit that is based on	2717
the member's contributions is nonforfeitable.	2718

A member's right to any payment or benefit that is based on	2719
contributions by the member's employer is nonforfeitable as	2720
specified by the plan selected by the member.	2721

(B) This section does not apply to an increase made under	2722
section 145.323 of the Revised Code for a recipient whose benefit	2723
effective date is on or after ~~the effective date of this amendment~~	2724
January 7, 2013.	2725

Sec. 171.04. The Ohio retirement study council shall:

2726

(A) Make an impartial review from time to time of all laws	2727
governing the administration and financing of the pension and	2728
retirement funds under Chapters 145., 146., 742., 3307., 3309.,	2729
and 5505. of the Revised Code and recommend to the general	2730
assembly any changes it may find desirable with respect to the	2731
allowances and benefits, sound financing of the cost of benefits,	2732
the prudent investment of funds, and the improvement of the	2733
language, structure, and organization of the laws;	2734

(B) Make an annual report to the governor and to the general	2735
assembly covering its evaluation and recommendations with respect	2736
to the operations of the state retirement systems and their funds;	2737

(C) Study all changes in the retirement laws proposed to the	2738
general assembly and report to the general assembly on their	2739
probable costs, actuarial implications, and desirability as a	2740
matter of public policy;	2741

(D) Review semiannually the policies, objectives, and	2742
criteria adopted under sections 145.11, 742.11, 3307.15, 3309.15,	2743
and 5505.06 of the Revised Code for the operation of the	2744
investment programs of the state retirement systems, including a	2745
review of asset allocation targets and ranges, risk factors, asset	2746
class benchmarks, time horizons, total return objectives, relative	2747
volatility, and performance evaluation guidelines. The council	2748
shall, not later than thirty days after completing a review,	2749
submit to the governor and the general assembly a report	2750
summarizing its findings.	2751

(E) Have prepared for each system by an independent actuary,	2752
at least once every ten years, an actuarial review of the	2753
actuarial valuations and quinquennial actuarial investigations	2754
prepared under sections 145.22, 742.14, 3307.20, 3309.21, and	2755
5505.12 of the Revised Code, including a review of the actuarial	2756
assumptions and methods, the data underlying the valuations and	2757
investigations, and the adequacy of each system's employee and	2758
employer contribution rates to amortize its unfunded actuarial	2759
pension liability, if any, and to support the payment of benefits	2760
authorized by Chapter 145., 742., 3307., 3309., or 5505. of the	2761
Revised Code. The council shall submit to the governor and the	2762
general assembly a report summarizing ~~the~~each review.	2763

All costs associated with an actuarial review prepared	2764
pursuant to division (E) of this section shall be paid by the	2765
retirement system for which the review is prepared.	2766

(F) Have conducted by an independent auditor at least once	2767
every ten years a fiduciary performance audit of each of the state	2768
retirement systems.	2769

All costs associated with an audit conducted pursuant to	2770
division (F) of this section shall be paid by the retirement	2771
system audited.	2772

(G) Provide each member of the council with copies of all	2773
proposed rules submitted to the council pursuant to sections	2774
145.09, 742.10, 3307.04, 3309.04, and 5505.04 of the Revised Code	2775
and submit any recommendations to the joint committee on agency	2776
rule review.	2777

Sec. 311.01. (A) A sheriff shall be elected quadrennially in	2778
each county. A sheriff shall hold office for a term of four years,	2779
beginning on the first Monday of January next after the sheriff's	2780
election.	2781

(B) Except as otherwise provided in this section, no person	2782
is eligible to be a candidate for sheriff, and no person shall be	2783
elected or appointed to the office of sheriff, unless that person	2784
meets all of the following requirements:	2785

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

2786

(2) The person has been a resident of the county in which the	2787
person is a candidate for or is appointed to the office of sheriff	2788
for at least one year immediately prior to the qualification date.	2789

(3) The person has the qualifications of an elector as	2790
specified in section 3503.01 of the Revised Code and has complied	2791
with all applicable election laws.	2792

(4) The person has been awarded a high school diploma or a	2793
certificate of high school equivalence issued for achievement of	2794
specified minimum scores on the general educational development	2795
test of the American council on education.	2796

(5) The person has not been convicted of or pleaded guilty to	2797
a felony or any offense involving moral turpitude under the laws	2798
of this or any other state or the United States, and has not been	2799
convicted of or pleaded guilty to an offense that is a misdemeanor	2800
of the first degree under the laws of this state or an offense	2801
under the laws of any other state or the United States that	2802
carries a penalty that is substantially equivalent to the penalty	2803
for a misdemeanor of the first degree under the laws of this	2804
state.	2805

(6) The person has been fingerprinted and has been the	2806
subject of a search of local, state, and national fingerprint	2807
files to disclose any criminal record. Such fingerprints shall be	2808
taken under the direction of the administrative judge of the court	2809
of common pleas who, prior to the applicable qualification date,	2810
shall notify the board of elections, board of county	2811
commissioners, or county central committee of the proper political	2812
party, as applicable, of the judge's findings.	2813

(7) The person has prepared a complete history of the	2814
person's places of residence for a period of six years immediately	2815
preceding the qualification date and a complete history of the	2816
person's places of employment for a period of six years	2817
immediately preceding the qualification date, indicating the name	2818
and address of each employer and the period of time employed by	2819
that employer. The residence and employment histories shall be	2820
filed with the administrative judge of the court of common pleas	2821
of the county, who shall forward them with the findings under	2822
division (B)(6) of this section to the appropriate board of	2823
elections, board of county commissioners, or county central	2824
committee of the proper political party prior to the applicable	2825
qualification date.	2826

(8) The person meets at least one of the following	2827
conditions:	2828

(a) ~~Has obtained or held, within the four-year period ending~~	2829
~~immediately prior to the qualification date,~~Holds a current valid	2830
~~basic~~ peace officer certificate of training issued by the Ohio	2831
peace officer training commission or has been issued a certificate	2832
of training pursuant to section 5503.05 of the Revised Code~~, and,~~	2833
~~within the four-year period ending immediately prior to the~~	2834
~~qualification date, has been employed as an appointee pursuant to~~	2835
~~section 5503.01 of the Revised Code or as a full-time peace~~	2836
~~officer as defined in section 109.71 of the Revised Code~~	2837
~~performing duties related to the enforcement of statutes,~~	2838
~~ordinances, or codes~~;	2839

(b) ~~Has obtained or held, within the three-year period ending~~	2840
~~immediately prior to the qualification date, a valid basic peace~~	2841
~~officer certificate of training issued by the Ohio peace officer~~	2842
~~training commission and has been employed for at least the last~~	2843
~~three years prior to the qualification date as a full-time law~~	2844
~~enforcement officer, as defined in division (A)(11) of section~~	2845
~~2901.01 of the Revised Code, performing duties related to the~~	2846
~~enforcement of statutes, ordinances, or codes~~Has been employed	2847
full-time by a law enforcement agency performing duties related to	2848
the enforcement of statutes, ordinances, or codes for a minimum of	2849
thirteen consecutive pay periods within the four-year period prior	2850
to the qualification date. As used in this division, "full-time"	2851
means a minimum of eighty hours of work in a fourteen-day period.	2852

(9) The person meets at least one of the following	2853
conditions:	2854

(a) Has at least two consecutive years of supervisory	2855
experience as a peace officer ~~at the rank of corporal or above, or~~	2856
~~has been appointed pursuant to section 5503.01 of the Revised Code~~	2857
~~and served~~ at the rank of sergeant or above~~, in the five-year~~	2858
~~period ending immediately prior to the qualification date~~;	2859

(b) Has completed ~~satisfactorily at least two years of~~	2860
~~post-secondary education or the equivalent in semester or quarter~~	2861
~~hours in~~a bachelor's degree in any field or has an associate	2862
degree in law enforcement or criminal justice from a college or	2863
university authorized to confer degrees by the Ohio board of	2864
regents or the comparable agency of another state in which the	2865
college or university is located ~~or in a school that holds a~~	2866
~~certificate of registration issued by the state board of career~~	2867
~~colleges and schools under Chapter 3332. of the Revised Code~~.	2868

(C) Persons who meet the requirements of division (B) of this	2869
section, except the requirement of division (B)(2) of this	2870
section, may take all actions otherwise necessary to comply with	2871
division (B) of this section. If, on the applicable qualification	2872
date, no person has met all the requirements of division (B) of	2873
this section, then persons who have complied with and meet the	2874
requirements of division (B) of this section, except the	2875
requirement of division (B)(2) of this section, shall be	2876
considered qualified candidates under division (B) of this	2877
section.	2878

(D) Newly elected sheriffs shall attend a basic training	2879
course conducted by the Ohio peace officer training commission	2880
pursuant to division (A) of section 109.80 of the Revised Code. A	2881
newly elected sheriff shall complete not less than two weeks of	2882
this course before the first Monday in January next after the	2883
sheriff's election. While attending the basic training course, a	2884
newly elected sheriff may, with the approval of the board of	2885
county commissioners, receive compensation, paid for from funds	2886
established by the sheriff's county for this purpose, in the same	2887
manner and amounts as if carrying out the powers and duties of the	2888
office of sheriff.	2889

Appointed sheriffs shall attend the first basic training	2890
course conducted by the Ohio peace officer training commission	2891
pursuant to division (A) of section 109.80 of the Revised Code	2892
within six months following the date of appointment or election to	2893
the office of sheriff. While attending the basic training course,	2894
appointed sheriffs shall receive regular compensation in the same	2895
manner and amounts as if carrying out their regular powers and	2896
duties.	2897

Five days of instruction at the basic training course shall	2898
be considered equal to one week of work. The costs of conducting	2899
the basic training course and the costs of meals, lodging, and	2900
travel of appointed and newly elected sheriffs attending the	2901
course shall be paid from state funds appropriated to the	2902
commission for this purpose.	2903

(E) In each calendar year, each sheriff shall attend and	2904
successfully complete at least sixteen hours of continuing	2905
education approved under division (B) of section 109.80 of the	2906
Revised Code. A sheriff who receives a waiver of the continuing	2907
education requirement from the commission under division (C) of	2908
section 109.80 of the Revised Code because of medical disability	2909
or for other good cause shall complete the requirement at the	2910
earliest time after the disability or cause terminates.	2911

(F)(1) Each person who is a candidate for election to or who	2912
is under consideration for appointment to the office of sheriff	2913
shall swear before the administrative judge of the court of common	2914
pleas as to the truth of any information the person provides to	2915
verify the person's qualifications for the office. A person who	2916
violates this requirement is guilty of falsification under section	2917
2921.13 of the Revised Code.	2918

(2) Each board of elections shall certify whether or not a	2919
candidate for the office of sheriff who has filed a declaration of	2920
candidacy, a statement of candidacy, or a declaration of intent to	2921
be a write-in candidate meets the qualifications specified in	2922
divisions (B) and (C) of this section.	2923

(G) The office of a sheriff who is required to comply with	2924
division (D) or (E) of this section and who fails to successfully	2925
complete the courses pursuant to those divisions is hereby deemed	2926
to be vacant.	2927

(H) As used in this section:

2928

(1) "Qualification date" means the last day on which a	2929
candidate for the office of sheriff can file a declaration of	2930
candidacy, a statement of candidacy, or a declaration of intent to	2931
be a write-in candidate, as applicable, in the case of a primary	2932
election for the office of sheriff; the last day on which a person	2933
may be appointed to fill a vacancy in a party nomination for the	2934
office of sheriff under Chapter 3513. of the Revised Code, in the	2935
case of a vacancy in the office of sheriff; or a date thirty days	2936
after the day on which a vacancy in the office of sheriff occurs,	2937
in the case of an appointment to such a vacancy under section	2938
305.02 of the Revised Code.	2939

(2) "Newly elected sheriff" means a person who did not hold	2940
the office of sheriff of a county on the date the person was	2941
elected sheriff of that county.	2942

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

2943

(1) "Long-term care insurance" has the same meaning as in	2944
section 3923.41 of the Revised Code.	2945

(2) "Retirement systems" has the same meaning as in division	2946
(A) of section 145.581 of the Revised Code.	2947

(B) The board of trustees of the Ohio police and fire pension	2948
fund ~~shall~~may establish a program under which members of the	2949
fund, employers on behalf of members, and persons receiving	2950
service or disability pensions or survivor benefits are permitted	2951
to participate in contracts for long-term care insurance.	2952
Participation may include dependents and family members. If a	2953
participant in a contract for long-term care insurance leaves	2954
employment, the participant and the participant's dependents and	2955
family members may, at their election, continue to participate in	2956
a program established under this section in the same manner as if	2957
the participant had not left employment, except that no part of	2958
the cost of the insurance shall be paid by the participant's	2959
former employer.	2960

Such program may be established independently or jointly with	2961
one or more of the other retirement systems.	2962

(C) The fund may enter into an agreement with insurance	2963
companies, health insuring corporations, or government agencies	2964
authorized to do business in the state for issuance of a long-term	2965
care policy or contract. However, prior to entering into such an	2966
agreement with an insurance company or health insuring	2967
corporation, the fund shall request the superintendent of	2968
insurance to certify the financial condition of the company or	2969
corporation. The fund shall not enter into the agreement if,	2970
according to that certification, the company or corporation is	2971
insolvent, is determined by the superintendent to be potentially	2972
unable to fulfill its contractual obligations, or is placed under	2973
an order of rehabilitation or conservation by a court of competent	2974
jurisdiction or under an order of supervision by the	2975
superintendent.	2976

(D) The board ~~shall~~may adopt rules in accordance with	2977
section 111.15 of the Revised Code governing the program. ~~The~~Any	2978
rules adopted by the board shall establish methods of payment for	2979
participation under this section, which may include establishment	2980
of a payroll deduction plan under section 742.56 of the Revised	2981
Code, deduction of the full premium charged from a person's	2982
service or disability pension or survivor benefit, or any other	2983
method of payment considered appropriate by the board. If the	2984
program is established jointly with one or more of the other	2985
retirement systems, the rules also shall establish the terms and	2986
conditions of such joint participation.	2987

Sec. 742.63. The board of trustees of the Ohio police and	2988
fire pension fund shall adopt rules for the management of the Ohio	2989
public safety officers death benefit fund and for disbursements of	2990
benefits as set forth in this section.	2991

(A) As used in this section:

2992

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

2993

(a) A member of the Ohio police and fire pension fund,	2994
including a member of the fund who has elected to participate in	2995
the deferred retirement option plan established under section	2996
742.43 of the Revised Code or a member of or contributor to a	2997
police or firemen's relief and pension fund established under	2998
former Chapter 521. or 741. of the Revised Code;	2999

(b) A member of the state highway patrol retirement system,	3000
including a member who is participating in the deferred retirement	3001
option plan established under section 5505.50 of the Revised Code;	3002

(c) A member of the public employees retirement system who at	3003
the time of the member's death was one of the following:	3004

(i) A county sheriff or deputy sheriff;

3005

(ii) A full-time regular police officer in a municipal	3006
corporation or township;	3007

(iii) A full-time regular firefighter employed by the state,	3008
an instrumentality of the state, a municipal corporation, a	3009
township, a joint fire district, or another political subdivision;	3010

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

3011

(v) A full-time law enforcement officer of the department of	3012
natural resources;	3013

(vi) A full-time department of public safety enforcement	3014
agent;	3015

(vii) A full-time law enforcement officer of parks, waterway	3016
lands, or reservoir lands under the control of a municipal	3017
corporation;	3018

(viii) A full-time law enforcement officer of a conservancy	3019
district;	3020

(ix) A correction officer at an institution under the control	3021
of a county, a group of counties, a municipal corporation, or the	3022
department of rehabilitation and correction;	3023

(x) A state university law enforcement officer;

3024

(xi) An investigator, as defined in section 109.541 of the	3025
Revised Code, or an investigator commissioned as a special agent	3026
of the bureau of criminal identification and investigation.	3027

(xii) A drug agent, as defined in section 145.01 of the	3028
Revised Code.	3029

(d) A member of a retirement system operated by a municipal	3030
corporation who at the time of death was a full-time law	3031
enforcement officer of parks, waterway lands, or reservoir lands	3032
under the control of the municipal corporation.	3033

(2) Notwithstanding section 742.01 of the Revised Code, "fire	3034
or police department" includes a fire department of the state or	3035
an instrumentality of the state or of a municipal corporation,	3036
township, joint fire district, or other political subdivision, the	3037
state highway patrol, a county sheriff's office, the security	3038
force of an institution under the control of the department of	3039
rehabilitation and correction, the security force of a jail or	3040
workhouse under the control of a county, group of counties, or	3041
municipal corporation, the security force of a metropolitan,	3042
county, or township park district, the security force of lands	3043
under the control of the department of natural resources,	3044
department of public safety enforcement agents, the security force	3045
of parks, waterway lands, or reservoir lands under the control of	3046
a municipal corporation, the security force of a conservancy	3047
district, the police department of a township or municipal	3048
corporation, and the police force of a state university.	3049

(3) "Firefighter or police officer" includes a state highway	3050
patrol trooper, a county sheriff or deputy sheriff, a correction	3051
officer at an institution under the control of a county, a group	3052
of counties, a municipal corporation, or the department of	3053
rehabilitation and correction, a police officer employed by a	3054
township or municipal corporation, a firefighter employed by the	3055
state, an instrumentality of the state, a municipal corporation, a	3056
township, a joint fire district, or another political subdivision,	3057
a full-time park district ranger or patrol trooper, a full-time	3058
law enforcement officer of the department of natural resources, a	3059
full-time department of public safety enforcement agent, a	3060
full-time law enforcement officer of parks, waterway lands, or	3061
reservoir lands under the control of a municipal corporation, a	3062
full-time law enforcement officer of a conservancy district, and a	3063
state university law enforcement officer.	3064

(4) "Correction officer" includes, in addition to any	3065
correction officer, any correction corporal, sergeant, lieutenant,	3066
or captain, and the equivalents of all such persons.	3067

(5) "A park district ranger or patrol trooper" means a peace	3068
officer commissioned to make arrests, execute warrants, and	3069
preserve the peace upon lands under the control of a board of park	3070
commissioners of a metropolitan, county, or township park	3071
district.	3072

(6) "Metropolitan, county, or township park district" means a	3073
park district created under the authority of Chapter 511. or 1545.	3074
of the Revised Code.	3075

(7) "Conservancy district" means a conservancy district	3076
created under the authority of Chapter 6101. of the Revised Code.	3077

(8) "Law enforcement officer" means an officer commissioned	3078
to make arrests, execute warrants, and preserve the peace upon	3079
lands under the control of the governmental entity granting the	3080
commission.	3081

(9) "Department of natural resources law enforcement officer"	3082
includes a forest officer designated pursuant to section 1503.29	3083
of the Revised Code, a preserve officer designated pursuant to	3084
section 1517.10 of the Revised Code, a wildlife officer designated	3085
pursuant to section 1531.13 of the Revised Code, a park officer	3086
designated pursuant to section 1541.10 of the Revised Code, and a	3087
state watercraft officer designated pursuant to section 1547.521	3088
of the Revised Code.	3089

(10) "Retirement eligibility date" means the last day of the	3090
month in which a deceased member would have first become eligible,	3091
had the member lived, for the retirement pension provided under	3092
section 145.332, Chapter 145., 521., or 741., division (C)(1) of	3093
section 742.37, or division (A)(1) of section 5505.17 of the	3094
Revised Code or provided by a retirement system operated by a	3095
municipal corporation.	3096

(11) "Death benefit amount" means an amount equal to the full	3097
monthly salary received by a deceased member prior to death, minus	3098
an amount equal to the benefit received under section 145.45,	3099
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit	3100
received from a retirement system operated by a municipal	3101
corporation, plus any increases in salary that would have been	3102
granted the deceased member.	3103

(12) "Killed in the line of duty" means either of the	3104
following:	3105

(a) Death in the line of duty;

3106

(b) Death from injury sustained in the line of duty,	3107
including heart attack or other fatal injury or illness caused	3108
while in the line of duty.	3109

(B) A spouse of a deceased member shall receive a death	3110
benefit each month equal to the full death benefit amount,	3111
provided that the deceased member was a firefighter or police	3112
officer killed in the line of duty and there are no surviving	3113
children eligible for a benefit under this section. The spouse	3114
shall receive this benefit during the spouse's natural life until	3115
the deceased member's retirement eligibility date, on which date	3116
the benefit provided under this division shall terminate.	3117

(C)(1) If a member killed in the line of duty as a	3118
firefighter or police officer is survived only by a child or	3119
children, the child or children shall receive a benefit each month	3120
equal to the full death benefit amount. If there is more than one	3121
surviving child, the benefit shall be divided equally among these	3122
children.	3123

(2) If the death benefit paid under this division is divided	3124
among two or more surviving children and any of the children	3125
become ineligible to continue receiving a portion of the benefit	3126
as provided in division (H) of this section, the full death	3127
benefit amount shall be paid to the remaining eligible child or	3128
divided among the eligible children so that the benefit paid to	3129
the remaining eligible child or children equals the full death	3130
benefit amount.	3131

(3) Notwithstanding divisions (C)(1) and (2) of this section,	3132
all death benefits paid under this division shall terminate on the	3133
deceased member's retirement eligibility date.	3134

(D) If a member killed in the line of duty as a firefighter	3135
or police officer is survived by both a spouse and a child or	3136
children, the monthly benefit provided shall be as follows:	3137

(1)(a) If there is a surviving spouse and one surviving	3138
child, the spouse shall receive an amount each month equal to	3139
one-half of the full death benefit amount and the child shall	3140
receive an amount equal to one-half of the full death benefit	3141
amount.	3142

(b) If the surviving spouse dies or the child becomes	3143
ineligible as provided in division (H) of this section, the	3144
surviving spouse or child remaining eligible shall receive the	3145
full death benefit amount.	3146

(2)(a) If there is a surviving spouse and more than one	3147
child, the spouse shall receive an amount each month equal to	3148
one-third of the full death benefit amount and the children shall	3149
receive an amount, equally divided among them, equal to two-thirds	3150
of the full death benefit amount.	3151

(b) If a spouse and more than one child each are receiving a	3152
death benefit under division (D)(2)(a) of this section and the	3153
spouse dies, the children shall receive an amount each month,	3154
equally divided among them, equal to the full death benefit	3155
amount.	3156

(c) If a spouse and more than one child each are receiving a	3157
benefit under division (D)(2)(a) of this section and any of the	3158
children becomes ineligible to receive a benefit as provided in	3159
division (H) of this section, the spouse and remaining eligible	3160
child or children shall receive a death benefit as follows:	3161

(i) If there are two or more remaining eligible children, the	3162
spouse shall receive an amount each month equal to one-third of	3163
the full death benefit amount and the children shall receive an	3164
amount each month, equally divided among them, equal to two-thirds	3165
of the full death benefit amount;	3166

(ii) If there is one remaining eligible child, the spouse	3167
shall receive an amount each month equal to one-half of the full	3168
death benefit amount, and the child shall receive an amount each	3169
month equal to one-half of the full death benefit amount.	3170

(d) If a spouse and more than one child each are receiving a	3171
benefit under division (D)(2)(a) of this section and all of the	3172
children become ineligible to receive a benefit as provided in	3173
division (H) of this section, the spouse shall receive the full	3174
death benefit amount.	3175

(3) Notwithstanding divisions (D)(1) and (2) of this section,	3176
death benefits paid under this division to a surviving spouse	3177
shall terminate on the member's retirement eligibility date. Death	3178
benefits paid to a surviving child or children shall terminate on	3179
the deceased member's retirement eligibility date unless earlier	3180
terminated pursuant to division (H) of this section.	3181

(E) If a member, on or after January 1, 1980, is killed in	3182
the line of duty as a firefighter or police officer and is	3183
survived by only a parent or parents dependent upon the member for	3184
support, the parent or parents shall receive an amount each month	3185
equal to the full death benefit amount. If there is more than one	3186
surviving parent dependent upon the deceased member for support,	3187
the death benefit amount shall be divided equally among the	3188
surviving parents. On the death of one of the surviving parents,	3189
the full death benefit amount shall be paid to the other parent.	3190

(F)(1) The following shall receive a monthly death benefit	3191
under this division:	3192

(a) A surviving spouse whose benefits are terminated in	3193
accordance with division (B) or (D)(3) of this section on the	3194
deceased member's retirement eligibility date, or who would	3195
qualify for a benefit under division (B) or (D) of this section	3196
except that the deceased member reached the member's retirement	3197
eligibility date prior to the member's death;	3198

(b) A qualified surviving spouse of a deceased member of or	3199
contributor to a police or firemen's relief and pension fund	3200
established under former Chapter 521. or 741. of the Revised Code	3201
who was a firefighter or police officer killed in the line of	3202
duty.	3203

(2) The monthly death benefit shall be one-half of an amount	3204
equal to the monthly salary received by the deceased member prior	3205
to the member's death, plus any salary increases the deceased	3206
member would have received prior to the member's retirement	3207
eligibility date. The benefit shall terminate on the surviving	3208
spouse's death. A death benefit payable under this division shall	3209
be reduced by an amount equal to any allowance or benefit payable	3210
to the surviving spouse under section 742.3714 of the Revised	3211
Code.	3212

(3) A benefit granted to a surviving spouse under division	3213
(F)(1)(b) of this section shall commence on the first day of the	3214
month immediately following receipt by the board of a completed	3215
application on a form provided by the board and any evidence the	3216
board may require to establish that the deceased spouse was killed	3217
in the line of duty.	3218

(G)(1) If there is not a surviving spouse eligible to receive	3219
a death benefit under division (F) of this section or the	3220
surviving spouse receiving a death benefit under that division	3221
dies, a surviving child or children whose benefits under division	3222
(C) or (D) of this section are or have been terminated pursuant to	3223
division (C)(3) or (D)(3) of this section or who would qualify for	3224
a benefit under division (C) or (D) of this section except that	3225
the deceased member reached the member's retirement eligibility	3226
date prior to the member's death shall receive a monthly death	3227
benefit under this division. The monthly death benefit shall be	3228
one-half of an amount equal to the monthly salary received by the	3229
deceased member prior to the member's death, plus any salary	3230
increases the member would have received prior to the member's	3231
retirement eligibility date. If there is more than one surviving	3232
child, the benefit shall be divided equally among the surviving	3233
children.	3234

(2) If two or more surviving children each are receiving a	3235
benefit under this division and any of those children becomes	3236
ineligible to continue receiving a benefit as provided in division	3237
(H) of this section, the remaining eligible child or children	3238
shall receive an amount equal to one-half of the monthly salary	3239
received by the deceased member prior to death, plus any salary	3240
increases the deceased member would have received prior to the	3241
retirement eligibility date. If there is more than one remaining	3242
eligible child, the benefit shall be divided equally among the	3243
eligible children.	3244

(3) A death benefit, or portion of a death benefit, payable	3245
to a surviving child under this division shall be reduced by an	3246
amount equal to any allowance or benefit payable to that child	3247
under section 742.3714 of the Revised Code, but the reduction in	3248
that child's benefit shall not affect the amount payable to any	3249
other surviving child entitled to a portion of the death benefit.	3250

(H) A death benefit paid to a surviving child under division	3251
(C), (D), or (G) of this section shall terminate on the death of	3252
the child or, unless one of the following is the case, when the	3253
child reaches age eighteen:	3254

(1) The child, because of physical or mental disability, is	3255
unable to provide the child's own support, in which case the death	3256
benefit shall terminate when the disability is removed;	3257

(2) The child is unmarried, under age twenty-two, and a	3258
student in and attending an institution of learning or training	3259
pursuant to a program designed to complete in each school year the	3260
equivalent of at least two-thirds of the full-time curriculum	3261
requirements of the institution, as determined by the trustees of	3262
the fund.	3263

(I) Acceptance of any death benefit under this section does	3264
not prohibit a spouse or child from receiving other benefits	3265
provided under the Ohio police and fire pension fund, the state	3266
highway patrol retirement system, the public employees retirement	3267
system, or a retirement system operated by a municipal	3268
corporation.	3269

(J) No person shall receive a benefit under this section if	3270
any of the following occur:	3271

(1) The person fails to exercise the right to a monthly	3272
survivor benefit under division (A) or (B) of section 145.45,	3273
division (D), (E), or (F) of section 742.37, or division (A)(3),	3274
(4), or ~~(7)~~(6) of section 5505.17 of the Revised Code; to a	3275
monthly survivor benefit from a retirement system operated by a	3276
municipal corporation; or to a retirement allowance under section	3277
742.3714 of the Revised Code.	3278

(2) The member's accumulated contributions under this chapter	3279
or Chapter 145. or 5505. of the Revised Code are refunded unless	3280
the member had been a member of the public employees retirement	3281
system and had fewer than eighteen months of total service credit	3282
at the time of death.	3283

(3) In the case of a full-time park district ranger or patrol	3284
trooper, a full-time law enforcement officer of the department of	3285
natural resources, a full-time law enforcement officer of parks,	3286
waterway lands, or reservoir lands under the control of a	3287
municipal corporation, a full-time law enforcement officer of a	3288
conservancy district, a correction officer at an institution under	3289
the control of a county, group of counties, or municipal	3290
corporation, or a member of a retirement system operated by a	3291
municipal corporation who at the time of the member's death was a	3292
full-time law enforcement officer of parks, waterway lands, or	3293
reservoir lands under the control of the municipal corporation,	3294
the member died prior to April 9, 1981, in the case of a benefit	3295
under division (B), (C), or (D) of this section, or prior to	3296
January 1, 1980, in the case of a benefit under division (E) of	3297
this section.	3298

(4) In the case of a full-time department of public safety	3299
enforcement agent who prior to June 30, 1999, was a liquor control	3300
investigator of the department of public safety, the member died	3301
prior to December 23, 1986;	3302

(5) In the case of a full-time department of public safety	3303
enforcement agent other than an enforcement agent who, prior to	3304
June 30, 1999, was a liquor control investigator, the member died	3305
prior to June 30, 1999.	3306

(K) A surviving spouse whose benefit was terminated prior to	3307
June 30, 1999, due to remarriage shall receive a benefit under	3308
division (B), (D), or (F) of this section beginning on the first	3309
day of the month following receipt by the board of an application	3310
on a form provided by the board. The benefit amount shall be	3311
determined as of that date.	3312

(1) If the benefit will begin prior to the deceased member's	3313
retirement eligibility date, it shall be paid under division (B)	3314
or (D) of this section and shall terminate as provided in those	3315
divisions. A benefit paid to a surviving spouse under division (D)	3316
of this section shall be determined in accordance with that	3317
division, even if benefits paid to surviving children are reduced	3318
as a result.	3319

(2) If the benefit will begin on or after the deceased	3320
member's retirement eligibility date, it shall be paid under	3321
division (F) of this section and shall terminate as provided in	3322
that division. A benefit paid to a surviving spouse under division	3323
(F) of this section shall be determined in accordance with that	3324
division, even if benefits paid to surviving children are	3325
terminated as a result.	3326

Sec. 3307.04. The general administration and the management	3327
of the state teachers retirement system is hereby vested in the	3328
state teachers retirement board, which shall adopt rules necessary	3329
for the fulfillment of its duties and responsibilities under	3330
Chapter 3307. of the Revised Code. The board shall adopt policies	3331
for the operation of the system, and the investment of funds as	3332
provided by section 3307.15 of the Revised Code, and may authorize	3333
its administrative officers, or committees composed of board	3334
members, to act for the board in accord with such policies ~~and~~	3335
~~subject to subsequent approval by the board~~.	3336

The board may take all appropriate action to avoid payment by	3337
the system or its members of federal or state income taxes on	3338
contributions to the system or amounts earned on such	3339
contributions and to comply with any plan qualification	3340
requirements, including those on distributions, established under	3341
Title 26 of the United States Code.	3342

The attorney general shall prescribe procedures for the	3343
adoption of rules authorized under this chapter, consistent with	3344
the provision of section 111.15 of the Revised Code under which	3345
all rules shall be filed in order to be effective. Such procedures	3346
shall establish methods by which notice of proposed rules is given	3347
to interested parties and rules adopted by the board published and	3348
otherwise made available. When it files a rule with the joint	3349
committee on agency rule review pursuant to section 111.15 of the	3350
Revised Code, the board shall submit to the Ohio retirement study	3351
council a copy of the full text of the rule, and if applicable, a	3352
copy of the rule summary and fiscal analysis required by division	3353
(B) of section 127.18 of the Revised Code.	3354

All rules adopted pursuant to this chapter, prior to August	3355
20, 1976, shall be published and made available to interested	3356
parties by January 1, 1977.	3357

Sec. 3307.35. (A) As used in this section and section	3358
3307.352 of the Revised Code, "other system retirant" means ~~both~~	3359
either of the following:	3360

(1) A member or former member of the public employees	3361
retirement system, Ohio police and fire pension fund, school	3362
employees retirement system, state highway patrol retirement	3363
system, or Cincinnati retirement system who is receiving from a	3364
system of which the retirant is a member or former member age and	3365
service or commuted age and service retirement, a benefit,	3366
allowance, or distribution under a plan established under section	3367
145.81 or 3309.81 of the Revised Code, or a disability benefit;	3368

(2) A person who is participating or has participated in an	3369
alternative retirement plan established under Chapter 3305. of the	3370
Revised Code and is receiving a benefit, allowance, or	3371
distribution under the plan.	3372

(B) Subject to this section and section 3307.353 of the	3373
Revised Code, a superannuate or other system retirant may be	3374
employed as a teacher.	3375

(C) A superannuate or other system retirant employed in	3376
accordance with this section shall contribute to the state	3377
teachers retirement system in accordance with section 3307.26 of	3378
the Revised Code and the employer shall contribute in accordance	3379
with sections 3307.28 and 3307.31 of the Revised Code. Such	3380
contributions shall be received as specified in section 3307.14 of	3381
the Revised Code. A superannuate or other system retirant employed	3382
as a teacher is not a member of the state teachers retirement	3383
system, does not have any of the rights, privileges, or	3384
obligations of membership, except as provided in this section, and	3385
is not eligible to receive health, medical, hospital, or surgical	3386
benefits under section 3307.39 of the Revised Code for employment	3387
subject to this section.	3388

(D) The employer that employs a superannuate or other system	3389
retirant shall notify the state teachers retirement board of the	3390
employment not later than the end of the month in which the	3391
employment commences. Any overpayment of benefits to a	3392
superannuate by the retirement system resulting from an employer's	3393
failure to give timely notice may be charged to the employer and	3394
may be certified and deducted as provided in section 3307.31 of	3395
the Revised Code.	3396

(E) On receipt of notice from an employer that a person who	3397
is an other system retirant has been employed, the state teachers	3398
retirement system shall notify the state retirement system of	3399
which the other system retirant was a member of such employment.	3400

(F) A superannuate or other system retirant who has received	3401
an allowance or benefit for less than two months when employment	3402
subject to this section or section 3305.05 of the Revised Code	3403
commences shall forfeit the allowance or benefit for any month the	3404
superannuate or retirant is employed prior to the expiration of	3405
such period. The allowance or benefit forfeited each month shall	3406
be equal to the monthly amount the superannuate or other system	3407
retirant is eligible to receive under a single lifetime benefit	3408
plan of payment described in division (A) of section 3307.60 of	3409
the Revised Code. Contributions shall be made to the retirement	3410
system from the first day of such employment, but service and	3411
contributions for that period shall not be used in the calculation	3412
of any benefit payable to the superannuate or other system	3413
retirant, and those contributions shall be refunded on the	3414
superannuate's or retirant's death or termination of the	3415
employment. Contributions made on compensation earned after the	3416
expiration of such period shall be used in calculation of the	3417
benefit or payment due under section 3307.352 of the Revised Code.	3418

For purposes of this division, "employment" does not include	3419
uncompensated volunteer work if the duties of the uncompensated	3420
volunteer work are the same as or substantially equivalent to the	3421
superannuate's or other system retirant's duties with the employer	3422
by which the superannuate or retirant was employed at the time of	3423
retirement.	3424

(G) On receipt of notice from the Ohio police and fire	3425
pension fund, public employees retirement system, or school	3426
employees retirement system of the re-employment of a	3427
superannuate, the state teachers retirement system shall not pay,	3428
or if paid shall recover, the amount to be forfeited by the	3429
superannuate in accordance with section 145.38, 742.26, or	3430
3309.341 of the Revised Code.	3431

(H) If the disability benefit of an other system retirant	3432
employed under this section is terminated, the retirant shall	3433
become a member of the state teachers retirement system, effective	3434
on the first day of the month next following the termination, with	3435
all the rights, privileges, and obligations of membership. If the	3436
retirant, after the termination of the retirant's disability	3437
benefit, earns two years of service credit under this retirement	3438
system or under the public employees retirement system, Ohio	3439
police and fire pension fund, school employees retirement system,	3440
or state highway patrol retirement system, the retirant's prior	3441
contributions as an other system retirant under this section shall	3442
be included in the retirant's total service credit, as defined in	3443
section 3307.50 of the Revised Code, as a state teachers	3444
retirement system member, and the retirant shall forfeit all	3445
rights and benefits of this section. Not more than one year of	3446
credit may be given for any period of twelve months.	3447

(I) This section does not affect the receipt of benefits by	3448
or eligibility for benefits of any person who on August 20, 1976,	3449
was receiving a disability benefit or service retirement pension	3450
or allowance from a state or municipal retirement system in Ohio	3451
and was a member of any other state or municipal retirement system	3452
of this state.	3453

(J) The state teachers retirement board may make the	3454
necessary rules to carry into effect this section and to prevent	3455
the abuse of the rights and privileges thereunder.	3456

Sec. 3307.39. (A) The state teachers retirement board may	3457
enter into an agreement with insurance companies, health insuring	3458
corporations, or government agencies authorized to do business in	3459
the state for issuance of a policy or contract of health, medical,	3460
hospital, or surgical ~~benefits~~coverage, or any combination	3461
thereof, for those individuals receiving, under the STRS defined	3462
benefit plan, service retirement or a disability or survivor	3463
benefit who subscribe to the plan. Notwithstanding any other	3464
provision of this chapter, the policy or contract may also include	3465
coverage for any eligible individual's spouse and dependent	3466
children and for any of the individual's sponsored dependents as	3467
the board considers appropriate. If all or any portion of the	3468
policy or contract premium is to be paid by any individual	3469
receiving service retirement or a disability or survivor benefit,	3470
the individual shall, by written authorization, instruct the board	3471
to deduct the premium agreed to be paid by the individual to the	3472
companies, corporations, or agencies.	3473

The board may contract for coverage on the basis of part or	3474
all of the cost of the coverage to be paid from appropriate funds	3475
of the state teachers retirement system. The cost paid from the	3476
funds of the system shall be included in the employer's	3477
contribution rate provided by section 3307.28 of the Revised Code.	3478

The board may enter into an agreement under this division for	3479
coverage of recipients of benefits under an STRS defined	3480
contribution plan if the plan selected includes health, medical,	3481
hospital, or surgical ~~benefits~~coverage, or any combination	3482
thereof. The board may contract for coverage on the basis that the	3483
cost of the coverage will be paid by the recipient or by the plan	3484
to which the recipient contributed under this chapter. The board	3485
may offer to recipients plans that provide for different levels of	3486
coverage or for prepayment of the cost of coverage.	3487

The board may provide for self-insurance of risk or level of	3488
risk as set forth in the contract with the companies,	3489
corporations, or agencies, and may provide through the	3490
self-insurance method specific ~~benefits~~coverage as authorized by	3491
the rules of the board.	3492

(B) The board may make a monthly payment to each recipient of	3493
service retirement, or a disability or survivor benefit under the	3494
STRS defined benefit plan who is enrolled in coverage under part B	3495
of the medicare program established under Title XVIII of "The	3496
Social Security Amendments of 1965," 79 Stat. 301 (1965), 42	3497
U.S.C.A. 1395j, as amended, and may make a monthly payment to a	3498
recipient of benefits under an STRS defined contribution plan who	3499
is eligible for that insurance coverage if the monthly payments	3500
are funded through the plan selected by the recipient. The payment	3501
shall be the greater of the following:	3502

(1) Twenty-nine dollars and ninety cents;

3503

(2) An amount determined by the board, which shall not exceed	3504
ninety per cent of the basic premium for the coverage,, except	3505
that the amount shall not exceed the amount paid by the recipient.	3506

At the request of the board, the recipient shall certify the	3507
amount paid by the recipient for coverage described in this	3508
division.	3509

The board shall make all payments under this division	3510
beginning the month following receipt of satisfactory evidence of	3511
the payment for the coverage.	3512

(C) The board shall establish by rule requirements for the	3513
coordination of any coverage,or payment~~, or benefit~~ provided	3514
under this section with any similar coverage,or payment~~, or~~	3515
~~benefit~~ made available to the same individual by the public	3516
employees retirement system, Ohio police and fire pension fund,	3517
school employees retirement system, or state highway patrol	3518
retirement system.	3519

(D) The board shall make all other necessary rules pursuant	3520
to the purpose and intent of this section.	3521

Sec. 3307.41. The right of an individual to a pension, an	3522
annuity, or a retirement allowance itself, the right of an	3523
individual to any optional benefit, or any other right or benefit	3524
accrued or accruing to any individual under this chapter, the	3525
various funds created by section 3307.14 of the Revised Code, and	3526
all moneys, investments, and income from moneys or investments are	3527
exempt from any state tax, except the tax imposed by section	3528
5747.02 of the Revised Code, and are exempt from any county,	3529
municipal, or other local tax, except income taxes imposed	3530
pursuant to section 5748.02, 5748.08, or 5748.09 of the Revised	3531
Code, and, except as provided in sections 3105.171, 3105.65,	3532
3115.32, ~~3119.80, 3119.81, 3121.02, 3121.03, 3123.06,~~ 3307.37,	3533
3307.372, and 3307.373 and Chapters 3119., 3121., 3123., and 3125.	3534
of the Revised Code, shall not be subject to execution,	3535
garnishment, attachment, the operation of bankruptcy or insolvency	3536
laws, or any other process of law whatsoever, and shall be	3537
unassignable except as specifically provided in this chapter or	3538
and sections 3105.171, 3105.65, and 3115.32~~, 3119.80, 3119.81,~~	3539
~~3121.02, 3121.03, and 3123.06~~and Chapters 3119., 3121., 3123.,	3540
and 3125. of the Revised Code.	3541

Sec. 3307.56. (A)(1) Subject to ~~sections~~section 3307.37 ~~and~~	3542
~~3307.561~~ of the Revised Code and except as provided in division	3543
(B)(2) of this section, a member participating in the STRS defined	3544
benefit plan who ceases to be a teacher for any cause other than	3545
death, retirement, receipt of a disability benefit, or current	3546
employment in a position in which the member has elected to	3547
participate in an alternative retirement plan under section	3548
3305.05 or 3305.051 of the Revised Code, upon application, shall	3549
be paid the accumulated contributions standing to the credit of	3550
the member's individual account in the teachers' savings fund plus	3551
an amount calculated in accordance with section 3307.563 of the	3552
Revised Code. If the member or the member's legal representative	3553
cannot be found within ten years after the member ceased making	3554
contributions pursuant to section 3307.26 of the Revised Code, the	3555
accumulated contributions may be transferred to the guarantee fund	3556
and thereafter paid to the member, to the member's beneficiaries,	3557
or to the member's estate, upon proper application.	3558

(2) A member described in division (A)(1) of this section who	3559
is married at the time of application for payment and is eligible	3560
for age and service retirement under section 3307.58 or 3307.59 of	3561
the Revised Code or would be eligible for age and service	3562
retirement under either of those sections but for a forfeiture	3563
ordered under division (A) or (B) of section 2929.192 of the	3564
Revised Code shall submit with the application a written statement	3565
by the member's spouse attesting that the spouse consents to the	3566
payment of the member's accumulated contributions. Consent shall	3567
be valid only if it is signed and witnessed by a notary public. If	3568
the statement is not submitted under this division, the	3569
application shall be considered an application for service	3570
retirement and shall be subject to division (G)(1) of section	3571
3307.60 of the Revised Code.	3572

The state teachers retirement board may waive the requirement	3573
of consent if the spouse is incapacitated or cannot be located, or	3574
for any other reason specified by the board. Consent or waiver is	3575
effective only with regard to the spouse who is the subject of the	3576
consent or waiver.	3577

(B) This division applies to any member who is employed in a	3578
position in which the member has elected under section 3305.05 or	3579
3305.051 of the Revised Code to participate in an alternative	3580
retirement plan and due to the election ceases to be a teacher for	3581
the purposes of that position.	3582

Subject to ~~sections~~section 3307.37 ~~and 3307.561~~ of the	3583
Revised Code, the state teachers retirement system shall do the	3584
following:	3585

(1) On receipt of a certified copy of an election under	3586
section 3305.05 or 3305.051 of the Revised Code, pay, in	3587
accordance with section 3305.052 of the Revised Code, the amount	3588
described in that section to the appropriate provider;	3589

(2) If a member has accumulated contributions, in addition to	3590
those subject to division (B)(1) of this section, standing to the	3591
credit of a member's individual account and is not otherwise in a	3592
position in which the member is considered a teacher for the	3593
purposes of that position, pay, to the provider the member	3594
selected pursuant to section 3305.05 or 3305.051 of the Revised	3595
Code, the accumulated contributions standing to the credit of the	3596
member's individual account in the teachers' saving fund plus an	3597
amount calculated in accordance with section 3307.563 of the	3598
Revised Code. The payment shall be made on the member's	3599
application.	3600

(C) Payment of a member's accumulated contributions under	3601
division (B) of this section cancels the member's total service	3602
credit in the state teachers retirement system. A member whose	3603
accumulated contributions are paid to a provider pursuant to	3604
division (B) of this section is forever barred from claiming or	3605
purchasing service credit under the state teachers retirement	3606
system for the period of employment attributable to those	3607
contributions.	3608

Sec. 3307.561. (A) As used in this section, "other	3609
retirement system" means the public employees retirement system or	3610
the school employees retirement system.	3611

(B) Except as provided in division (C) of this section, on	3612
application, a member of the state teachers retirement system who	3613
is also a member of one or both of the other retirement systems	3614
and has ceased to be a teacher for purposes of this chapter may be	3615
paid, in accordance with section 3307.56 of the Revised Code, the	3616
member's accumulated contributions to the state teachers	3617
retirement system, plus any applicable amount calculated under	3618
section 3307.563 of the Revised Code. This payment does not affect	3619
the member's membership in the other retirement systems or any	3620
right the member may have to a benefit or return of contributions	3621
under those systems.	3622

(C) This section does not apply to a member of one of the	3623
other retirement systems whose employment under that system is	3624
with the public employer that was the employer under the state	3625
teachers retirement system at the time the member's service	3626
subject to this chapter terminated.	3627

Sec. 3307.563. For the purposes of this section, "service	3628
credit" includes only service credit obtained pursuant to sections	3629
3307.53, 3307.71, 3307.712, 3307.72, and 3307.77 of the Revised	3630
Code.	3631

(A) The state teachers retirement system shall add to a	3632
member's accumulated contributions to be paid under section	3633
3307.56 or 3307.562 of the Revised Code an amount paid from the	3634
employers' trust fund equal to one of the following:	3635

(1) If the member has less than three full years of service	3636
credit, an amount equal to interest on the member's accumulated	3637
contributions, compounded annually, at a rate not greater than	3638
four per cent established by the board;	3639

(2) If the member has three or more full years of service	3640
credit, but less than five full years, an amount equal to interest	3641
on the member's accumulated contributions, compounded annually, at	3642
a rate not greater than six per cent established by the board;	3643

(3) If the member has five or more full years of service	3644
credit, the sum of the following amounts:	3645

(a) An amount equal to interest on the member's accumulated	3646
contributions, compounded annually, at a rate not greater than six	3647
per cent established by the board;	3648

(b) An amount equal to fifty per cent of the sum of the	3649
member's contributions under section 3307.26, any contributions	3650
restored under ~~section~~sections 3307.71 and 3307.712 of the	3651
Revised Code to the extent that the amount paid to restore the	3652
credit included amounts received by the member under division	3653
(A)(3)(b) of this section, and contributions deducted or paid	3654
under ~~division (C) of~~ section 3307.77 of the Revised Code plus	3655
interest on that amount at a rate not greater than six per cent	3656
established by the board.	3657

Interest for each year included in the calculation under this	3658
section shall be calculated from the first day of the following	3659
year to the last day of the month preceding payment under section	3660
3307.56 or 3307.562 of the Revised Code.	3661

(B) Notwithstanding sections 3307.56 and 3307.562 of the	3662
Revised Code, neither a member who returned to contributing	3663
service after receiving disability benefits nor the beneficiaries,	3664
survivors, or estate of a deceased member who was granted	3665
disability benefits prior to death is eligible for the payment of	3666
any amount calculated under this section.	3667

Sec. 3307.57. To coordinate and integrate membership in the	3668
state retirement systems, the following provisions apply:	3669

(A) As used in this section:

3670

(1) "Retirement systems" means the public employees	3671
retirement system, state teachers retirement system, and school	3672
employees retirement system.	3673

(2) In addition to the meaning given in section 3307.50 of	3674
the Revised Code, "disability benefit" means "disability benefit"	3675
as defined in sections 145.01 and 3309.01 of the Revised Code;	3676

(3) "Actuarial assumption rate" means the investment rate of	3677
return assumed for projecting assets in the STRS defined benefit	3678
plan.	3679

(4) "Total service credit" means the total credit in all	3680
retirement systems, except that such credit shall not exceed one	3681
year for any period of twelve months.	3682

(5) "Paying system" means the state retirement system in	3683
which the member has the greatest service credit, without	3684
adjustment or, if the member has equal service credit in two or	3685
more retirement systems, the retirement system in which the member	3686
has the greatest total contributions.	3687

(6) "Transferring system" means the state retirement system	3688
transferring a member's contributions and service credit in that	3689
system to the paying system.	3690

(7) "Retention percentage" means five per cent, or a	3691
percentage determined under division (D) of this section, of a	3692
member's earnable salary in the case of a member of the public	3693
employees retirement system or five per cent, or a percentage	3694
determined under division (D) of this section, of a member's	3695
compensation in the case of a member of the state teachers	3696
retirement system or school employees retirement system.	3697

(B) At the option of a member participating in the STRS	3698
defined benefit plan, total contributions and service credit in	3699
all retirement systems, including amounts paid to restore service	3700
credit under sections 145.311, 3307.711, and 3309.261 of the	3701
Revised Code, shall be used in determining ~~the eligibility for~~	3702
benefits. If total contributions and service credit are combined,	3703
the following provisions apply:	3704

(1) Service retirement or a disability benefit is effective	3705
on the first day of the month next following the later of:	3706

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

3707

(b) The attainment of minimum age or service credit for	3708
benefits provided under this section.	3709

(2) ~~"Total service credit" includes the total credit in all~~	3710
~~retirement systems except that such credit shall not exceed one~~	3711
~~year for any period of twelve months.~~	3712

~~(3) Eligibility for a disability benefit shall be determined~~	3713
~~by the~~The board of the ~~state retirement~~paying system ~~that will~~	3714
~~calculate~~shall do both of the following:	3715

(a) Determine a member's eligibility for a retirement or	3716
disability benefit;	3717

(b) Calculate and pay the member's retirement or disability	3718
benefit~~, as provided in division (B)(4) of this section~~. ~~The state~~	3719
~~retirement~~	3720

(3)(a) Each transferring system ~~calculating and paying the~~	3721
~~disability benefit~~in which the member has service credit shall	3722
certify ~~the determination~~ to the ~~board of each other state~~	3723
~~retirement~~paying system ~~in which the member has service credit~~	3724
~~and shall be accepted by that board as sufficient for granting a~~	3725
~~disability benefit.~~	3726

~~(4) The board of the state retirement system in which the~~	3727
~~member had the greatest service credit, without adjustment, shall~~	3728
~~calculate and pay the total benefit. If the member's credit is~~	3729
~~equal in two or more retirement systems, the system having the~~	3730
~~member's largest total contributions shall calculate and pay the~~	3731
~~total benefit.~~	3732

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

3733

(i) The service credit earned by the member in the	3734
transferring system;	3735

(ii) The beginning and ending dates of the service credit	3736
period covered by the transferring system;	3737

(iii) Any breaks in service by the member, excluding school	3738
breaks;	3739

(iv) If available, a statement listing the member's monthly	3740
contributions and service credit earned, obtained, or purchased in	3741
the transferring system.	3742

(b) The certification under division (B)(3)(a) of this	3743
section may be reviewed by both the transferring system and paying	3744
system.	3745

(4) In determining the total credit to be used in calculating	3746
a retirement or disability benefit, credit shall not be reduced	3747
below that certified by the transferring system ~~or systems~~	3748
~~transferring credit~~, except ~~that such total combined service~~	3749
~~credit shall not exceed~~as follows:	3750

(a) Not more than one year of credit may be certified by the	3751
transferring system for any one "year" as defined in the ~~statute~~	3752
law governing the transferring system ~~making the calculation~~.	3753

(b) The paying system may reduce any credit certified by the	3754
transferring system that is concurrent with any period of service	3755
credit the member earned from the paying system.	3756

(c) The paying system may reduce any credit certified by the	3757
transferring system if the amount certified, when added to the	3758
paying system's service credit for any one "year" as defined in	3759
the law of the paying system, exceeds one year.	3760

~~(6)~~(5)(a) The ~~retirement~~paying system ~~calculating and paying~~	3761
~~the benefit~~ shall receive from the ~~other~~transferring system or	3762
systems all of the following for each year of service:	3763

(i) The amount contributed by the member, or, in the case of	3764
service credit purchased by the member, paid by the member, that	3765
is attributable to the year of service;	3766

(ii) An amount equal to the lesser of the employer's	3767
contributions made on behalf of the member to the ~~retirement~~	3768
transferring system for that year of service less the retention	3769
percentage or the amount that would have been contributed by the	3770
employer for the service had the member been a member of the state	3771
teachers retirement system at the time the credit was earned less	3772
the retention percentage;	3773

(iii) If applicable, an amount equal to the amount paid on	3774
behalf of the member by an employer under section 145.483 of the	3775
Revised Code;	3776

(iv) Interest compounded annually on the amounts specified in	3777
divisions (B)~~(6)~~(5)(a)(i), (ii), and (iii) of this section at the	3778
lesser of the actuarial assumption rate for that year of the ~~state~~	3779
~~teachers retirement~~paying system or the ~~other retirement~~	3780
transferring system or systems ~~transferring amounts under this~~	3781
~~section~~.	3782

~~(b)~~(6) The annuity rates and mortality tables of the	3783
~~retirement~~paying system ~~making the calculation and paying the~~	3784
~~benefit~~ shall be applicable.	3785

~~(c)~~(7) Deposits made for the purchase of additional income,	3786
with guaranteed interest, upon the member's request, shall be	3787
transferred to the ~~retirement~~paying system ~~paying the regular~~	3788
~~benefit~~. The return upon such deposits shall be that offered by	3789
the ~~retirement~~paying system ~~making the calculation and paying~~	3790
~~the regular benefit~~.	3791

(C) A person receiving a benefit under this section, who	3792
accepts employment amenable to coverage in any retirement system	3793
that participated in the person's combined benefit, shall be	3794
subject to the applicable provisions of law governing such	3795
re-employment.	3796

If a retirant should be paid any amount to which the retirant	3797
is not entitled under the applicable provisions of law governing	3798
such re-employment, such amount shall be recouped by the	3799
~~retirement~~paying system ~~paying such benefit~~ by utilizing any	3800
recovery procedure available under the ~~law of the retirement~~	3801
~~system covering such~~paying system's re-employment provisions.	3802

(D) The retention percentage used in the calculation under	3803
division (B)(5)(a)(ii) of this section shall be reviewed by the	3804
state retirement systems not less than once every five years	3805
beginning after the effective date of this amendment or on request	3806
of any of the systems. If the retirement systems agree, the	3807
retention percentage may be changed if any of the system's	3808
employer contribution rate increases or decreases or the systems	3809
agree that a change is in the interest of one or more of the	3810
systems.	3811

Sec. 3307.58. (A) As used in this section, "qualifying	3812
service credit" means credit earned under section 3307.53 or for	3813
which contributions were made under section 145.47 or 3309.47 of	3814
the Revised Code,; credit restored under section 145.31, 3307.71,	3815
or 3309.26 of the Revised Code,; credit purchased under section	3816
145.302, 3307.752, or 3309.022, or division (D) of section 5505.16	3817
of the Revised Code, or obtained under section 742.521 of the	3818
Revised Code; and credit obtained under section 3307.761,	3819
3307.763, or 3307.765 of the Revised Code.	3820

(B) Any member participating in the STRS defined benefit plan	3821
who has attained the applicable combination of age and service	3822
credit shall be granted service retirement after filing with the	3823
state teachers retirement board a completed application on a form	3824
approved by the board.	3825

(1) Except as provided in division (B)(3) of this section, a	3826
member is eligible to retire under this division if ~~either~~any of	3827
the following is the case:	3828

(a) The member has five or more years of qualifying service	3829
credit and has attained age sixty-five;	3830

(b) The member is applying for service retirement following	3831
termination of a disability benefit received under section 3307.63	3832
or 3307.631 of the Revised Code and has five or more years of	3833
total service credit;	3834

3835

(i) Before August 1, 2015, has thirty or more years of	3836
service credit at any age;	3837

(ii) On or after August 1, 2015, but before August 1, 2017,	3838
has thirty-one or more years of service credit at any age;	3839

(iii) On or after August 1, 2017, but before August 1, 2019,	3840
has thirty-two or more years of service credit at any age;	3841

(iv) On or after August 1, 2019, but before August 1, 2021,	3842
has thirty-three or more years of service credit at any age;	3843

(v) On or after August 1, 2021, but before August 1, 2023,	3844
has thirty-four or more years of service credit at any age;	3845

(vi) On or after August 1, 2023, but before August 1, 2026,	3846
has thirty-five or more years of service credit at any age;	3847

(vii) On or after August 1, 2026, has thirty-five or more	3848
years of service credit and has attained age sixty.	3849

(2) Except as provided in division (B)(3) of this section, a	3850
member is eligible to retire under this division if ~~either~~any of	3851
the following is the case:	3852

(a) The member has five or more years of qualifying service	3853
credit and has attained age sixty;	3854

(b) The member is applying for service retirement following	3855
termination of a disability benefit received under section 3307.63	3856
or 3307.631 of the Revised Code and has five or more years of	3857
total service credit;	3858

3859

(i) Before August 1, 2015, has twenty-five or more years of	3860
service credit and has attained age fifty-five;	3861

(ii) On or after August 1, 2015, but before August 1, 2017,	3862
has twenty-six or more years of service credit and has attained	3863
age fifty-five or has thirty or more years of service credit at	3864
any age;	3865

(iii) On or after August 1, 2017, but before August 1, 2019,	3866
has twenty-seven or more years of service credit and has attained	3867
age fifty-five or has thirty or more years of service credit at	3868
any age;	3869

(iv) On or after after August 1, 2019, but before August 1,	3870
2021, has twenty-eight or more years of service credit and has	3871
attained age fifty-five or has thirty or more years of service	3872
credit at any age;	3873

(v) On or after August 1, 2021, but before August 1, 2023,	3874
has twenty-nine or more years of service credit and has attained	3875
age fifty-five or has thirty or more years of service credit at	3876
any age;	3877

(vi) On or after August 1, 2023, has thirty or more years of	3878
service credit at any age.	3879

(3) The board may adjust the retirement eligibility	3880
requirements of this section if the board's actuary, in its annual	3881
actuarial valuation required by section 3307.51 of the Revised	3882
Code or in other evaluations conducted under that section,	3883
determines that an adjustment does not materially impair the	3884
fiscal integrity of the retirement system or is necessary to	3885
preserve the fiscal integrity of the system.	3886

(C) Service retirement shall be effective onnot earlier than	3887
the first day of the month next following the later of:	3888

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

3889

(2) The attainment of minimum age orand service credit	3890
eligibility for benefits provided under this section.	3891

(D)(1) Except as provided in division (E) of this section,	3892
the annual single lifetime benefit of a member whose retirement	3893
effective date is before August 1, 2013, shall be the greater of	3894
the amounts determined by the member's Ohio service credit	3895
multiplied by one of the following:	3896

(a) Eighty-six dollars;

3897

(b) The sum of the following amounts:

3898

(i) For each of the first thirty years of Ohio service	3899
credit, two and two-tenths per cent of the member's final average	3900
salary or, subject to the limitation described in division	3901
(D)(1)(c) of this section, two and five-tenths per cent of the	3902
member's final average salary if the member has thirty-five or	3903
more years of service credit under section 3307.48, 3307.53,	3904
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3905
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3906
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3907
former section 3307.514 of the Revised Code, section 3307.72 of	3908
the Revised Code earned after July 1, 1978, or any combination of	3909
service credit under those sections;	3910

(ii) For each year or fraction of a year of Ohio service	3911
credit in excess of thirty years, two and two-tenths per cent of	3912
the member's final average salary or, subject to the limitation	3913
described in division (D)(1)(c) of this section, if the member has	3914
more than thirty years service credit under section 3307.48,	3915
3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3916
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3917
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3918
former section 3307.514 of the Revised Code, section 3307.72 of	3919
the Revised Code earned after July 1, 1978, or any combination of	3920
service credit under those sections, the per cent of final average	3921
salary shown in the following schedule for each corresponding year	3922
or fraction of a year of service credit under those sections that	3923
is in excess of thirty years:	3924

Year	Per	Year	Per	3925
of	Cent	of	Cent	3926
Service	for that	Service	for that	3927
Credit	Year	Credit	Year	3928
30.01 - 31.00	2.5%	35.01 - 36.00	3.0%	3929
31.01 - 32.00	2.6	36.01 - 37.00	3.1	3930
32.01 - 33.00	2.7	37.01 - 38.00	3.2	3931
33.01 - 34.00	2.8	38.01 - 39.00	3.3	3932
34.01 - 35.00	2.9			3933

For purposes of this schedule, years of service credit shall be	3934
rounded to the nearest one-hundredth of a year.	3935

(c) For purposes of division (D)(1) of this section, a	3936
percentage of final average salary in excess of two and two-tenths	3937
per cent shall be applied to service credit under section 3307.57	3938
of the Revised Code only if the service credit was established	3939
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3940
3309.021, 3309.022, or 3309.47 of the Revised Code or restored	3941
under section 145.31 or 3309.26 of the Revised Code.	3942

(2)(a) Except as provided in division (E) of this section,	3943
the annual single lifetime benefit of a member whose retirement	3944
effective date is on or after August 1, 2013, but before August 1,	3945
2015, shall be the amount determined by the member's Ohio service	3946
credit multiplied by the sum of the following amounts:	3947

(i) For each of the first thirty years of Ohio service	3948
credit, two and two-tenths per cent of the member's final average	3949
salary or, subject to the limitation described in division	3950
(D)(2)(b) of this section, two and five-tenths per cent of the	3951
member's final average salary if the member has thirty-five or	3952
more years of service credit under section 3307.48, 3307.53,	3953
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3954
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3955
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3956
former section 3307.514 of the Revised Code, section 3307.72 of	3957
the Revised Code earned after July 1, 1978, or any combination of	3958
service credit under those sections;	3959

(ii) For each year or fraction of a year of Ohio service	3960
credit in excess of thirty years, two and two-tenths per cent of	3961
the member's final average salary or, subject to the limitation	3962
described in division (D)(2)(b) of this section, if the member has	3963
more than thirty years service credit under section 3307.48,	3964
3307.53, 3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763,	3965
3307.765, 3307.77, or 3307.771 of the Revised Code, division	3966
(A)(2) or (B) of former section 3307.513 of the Revised Code,	3967
former section 3307.514 of the Revised Code, section 3307.72 of	3968
the Revised Code earned after July 1, 1978, or any combination of	3969
service credit under those sections, the per cent of final average	3970
salary shown in the following schedule for each corresponding year	3971
or fraction of a year of service credit under those sections that	3972
is in excess of thirty years:	3973

Year	Per	Year	Per	3974
of	Cent	of	Cent	3975
Service	for that	Service	for that	3976
Credit	Year	Credit	Year	3977
30.01 - 31.00	2.5%	35.01 - 36.00	3.0%	3978
31.01 - 32.00	2.6	36.01 - 37.00	3.1	3979
32.01 - 33.00	2.7	37.01 - 38.00	3.2	3980
33.01 - 34.00	2.8	38.01 - 39.00	3.3	3981
34.01 - 35.00	2.9			3982

For purposes of this schedule, years of service credit shall be	3983
rounded to the nearest one-hundredth of a year.	3984

(b) For purposes of division (D)(2)(a)(ii) of this section, a	3985
percentage of final average salary in excess of two and two-tenths	3986
per cent shall be applied to service credit under section 3307.57	3987
of the Revised Code only if the service credit was established	3988
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,	3989
3309.021, 3309.022, or 3309.47 of the Revised Code or restored	3990
under section 145.31 or 3309.26 of the Revised Code.	3991

(3) Except as provided in division (E) of this section, the	3992
annual single lifetime benefit of a member whose retirement	3993
effective date is on or after August 1, 2015, shall be the amount	3994
determined by the member's service credit multiplied by two and	3995
two-tenths per cent of the member's final average salary.	3996

(E)(1) The annual single lifetime benefit of a member	3997
described in division (B)(2) of this section whose service	3998
retirement is effective before August 1, 2015, shall be adjusted	3999
by the greater per cent shown in the following schedule opposite	4000
the member's attained age or Ohio service credit.	4001

Years of	Per Cent		4002
Attained	or	Ohio Service	of Base	4003
Age		Credit	Amount	4004
58		25	75%	4005
59		26	80	4006
60		27	85	4007
61			88	4008
28	90		4009
62			91	4010
63			94	4011
29	95		4012
64			97	4013
65		30 or more	100	4014

(2) The annual single lifetime benefit of a member described	4015
in division (B)(2) of this section whose service retirement is	4016
effective on or after August 1, 2015, shall be reduced by a	4017
percentage determined by the board's actuary for each year the	4018
member retires before attaining the applicable age and service	4019
credit specified in division (B)(1) of this section. The board's	4020
actuary may use an actuarially based average percentage reduction	4021
for this purpose.	4022

(F) Notwithstanding any other provision of this section, on	4023
application, a member who, as of July 1, 2015, has five or more	4024
years of Ohio service credit and has attained age sixty, has	4025
twenty-five or more years of Ohio service credit and has attained	4026
age fifty-five, or has thirty or more years of Ohio service credit	4027
shall be granted service retirement according to former section	4028
3307.58 of the Revised Code as in effect immediately prior to ~~the~~	4029
~~effective date of this amendment~~January 7, 2013. The member's	4030
benefit shall be the greater of the amount the member would have	4031
been eligible for had the member retired effective July 1, 2015,	4032
or the amount determined under division (D)(3) of this section.	4033

(G) The annual single lifetime benefit determined under	4034
division (D) or (E) of this section shall not exceed the lesser of	4035
one hundred per cent of the final average salary or the limit	4036
established by section 415 of the "Internal Revenue Code of 1986,"	4037
100 Stat. 2085, 26 U.S.C.A. 415, as amended.	4038

(H) The annual single lifetime benefit of a member whose	4039
retirement effective date is before August 1, 2013, shall be the	4040
greater of the amounts determined under division (D)(1) or (E)(1)	4041
of this section as appropriate or under this division. The benefit	4042
shall not exceed the lesser of the sum of the following amounts or	4043
the limit established by section 415 of the "Internal Revenue Code	4044
of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:	4045

(1) An annuity with a reserve equal to the member's	4046
accumulated contributions;	4047

(2) A pension equal to the amount in division (H)(1) of this	4048
section;	4049

(3) An additional pension of forty dollars annually	4050
multiplied by the number of years of prior and military service	4051
credit, except years of credit purchased under section 3307.751 or	4052
3307.752 of the Revised Code.	4053

(I) If a member's disability benefit was terminated under	4054
section 3307.48 of the Revised Code and the member's retirement	4055
under this section is effective on the first day of the month	4056
following the last day for which the disability benefit was paid,	4057
the member's annual single lifetime benefit determined under	4058
division (D) or (E) of this section shall be increased by a	4059
percentage equal to the total of any percentage increases the	4060
member received under section 3307.67 of the Revised Code, plus	4061
any additional amount the member received under this chapter while	4062
receiving the disability benefit. The increase shall be based on	4063
the plan of payment selected by the member under section 3307.60	4064
of the Revised Code. However, the benefit used to calculate any	4065
future increases under section 3307.67 of the Revised Code shall	4066
be based on the plan of payment selected by the member, plus any	4067
additional amount added to the benefit determined under this	4068
division that established a new base benefit to the member.	4069

(J) Benefits determined under this section shall be paid as	4070
provided in section 3307.60 of the Revised Code.	4071

Sec. 3307.62. As used in this section, "qualifying service	4072
credit" has the same meaning as in section 3307.58 of the Revised	4073
Code.	4074

(A) The state teachers retirement system shall provide	4075
disability coverage to each member participating in the STRS	4076
defined benefit plan who meets either of the following:	4077

(1) If the member ~~earned~~had service credit ~~before July 1~~on	4078
account on June 30, 2013, has at least five years of qualifying	4079
service credit;	4080

(2) If the member did not ~~earn~~have any service credit ~~before~~	4081
~~July 1~~on account on June 30, 2013, has at least ten years of	4082
qualifying service credit.	4083

Not later than October 16, 1992, the state teachers	4084
retirement board shall give each person who is a member on July	4085
29, 1992, the opportunity to elect disability coverage either	4086
under former section 3307.43 of the Revised Code or under former	4087
section 3307.431 of the Revised Code. The board shall mail notice	4088
of the election, accompanied by an explanation of the coverage	4089
under each of the Revised Code sections and a form on which the	4090
election is to be made, to each member at the member's last known	4091
address. The board shall also provide the explanation and form to	4092
any member on the member's request.	4093

Regardless of whether the member actually receives notice of	4094
the right to make an election, a member who fails to file a valid	4095
election under this section shall be considered to have elected	4096
disability coverage under section 3307.63 of the Revised Code. To	4097
be valid, an election must be made on the form provided by the	4098
board, signed by the member, and filed with the board not later	4099
than one hundred eighty days after the date the notice was mailed,	4100
or, in the case of a form provided at the request of a member, a	4101
date specified by rule of the board. Once made, an election is	4102
irrevocable, but if the member ceases to be a member of the	4103
system, the election is void. If a person who makes an election	4104
under this section also makes an election under section 145.35 or	4105
3309.39 of the Revised Code, the election made for the system that	4106
pays a disability benefit to that person shall govern the benefit.	4107

Disability coverage shall be provided under section 3307.631	4108
of the Revised Code for persons who become members after July 29,	4109
1992, and for members who elect under this division to be covered	4110
under section 3307.631 of the Revised Code.	4111

The board may adopt rules governing elections made under this	4112
division.	4113

(B) Application for a disability benefit may be made by a	4114
member, by a person acting in the member's behalf, or by the	4115
member's employer and if the member has disability coverage under	4116
division (A) of this section.	4117

The application for a disability benefit shall be made on a	4118
form approved by the board. The benefit payable to any member	4119
whose application is approved shall become effective on the first	4120
day of the month next following the later of the following:	4121

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

4122

(2) The ~~attainment of eligibility~~date on which the member's	4123
most recent application for a disability benefit was received by	4124
the board.	4125

(C) Medical examination of the member shall be conducted by a	4126
competent, disinterested physician or physicians selected by the	4127
board to determine whether the member is mentally or physically	4128
incapacitated for the performance of duty by a disabling	4129
condition, either permanent or presumed to be permanent for twelve	4130
continuous months following the filing of an application. The	4131
disability must have occurred since last becoming a member, or it	4132
must have increased since last becoming a member to such an extent	4133
as to make the disability permanent or presumably permanent for	4134
twelve continuous months following the filing of an application.	4135

(D) Application for a disability benefit must be made within	4136
a two-year period from the date the member's contributing service	4137
terminated, unless the board determines that the member's medical	4138
records demonstrate conclusively that at the time the period	4139
expired the member was physically or mentally incapacitated and	4140
unable to make application, except that if the member did not ~~earn~~	4141
have any service credit ~~before July 1~~on account on June 30, 2013,	4142
application must be made within a one-year period from the date	4143
contributing service terminated. Application may not be made by	4144
any person receiving service retirement benefits under section	4145
3307.58 or 3307.59 of the Revised Code or any person whose	4146
accumulated contributions standing to the credit of the person's	4147
individual account in the teachers' savings fund have been paid	4148
under section 3307.56 of the Revised Code.	4149

(E) If the physician or physicians determine that the member	4150
qualifies for a disability benefit, the board concurs with the	4151
determination, and the member agrees to medical treatment as	4152
specified in division (G) of this section, the member shall	4153
receive a disability benefit under section 3307.63 or 3307.631 of	4154
the Revised Code. If such physician or physicians determine that	4155
the member does not qualify for a disability benefit, the report	4156
of the examiner or examiners shall be evaluated by a board of	4157
medical review composed of at least three physicians appointed by	4158
the retirement board.	4159

(F) The state teachers retirement board shall render an order	4160
determining whether or not the applicant shall be granted a	4161
disability benefit. Notification to the applicant shall be issued,	4162
and upon the request of an applicant who is denied a disability	4163
benefit, a hearing or appeal relative to such order shall be	4164
conducted in accordance with procedures established by the	4165
retirement board.	4166

(G) The state teachers retirement board shall adopt rules	4167
requiring each disability benefit recipient, as a condition of	4168
continuing to receive a disability benefit, to agree in writing to	4169
obtain any medical treatment recommended by the board's physician	4170
and submit medical reports regarding the treatment. If the board	4171
determines that a disability benefit recipient is not obtaining	4172
the medical treatment or the board does not receive a required	4173
medical report, the disability benefit shall be suspended until	4174
the treatment is obtained, the report is received by the board, or	4175
the board's physician certifies that the treatment is no longer	4176
helpful or advisable. Should the recipient's failure to obtain	4177
treatment or submit a medical report continue for one year, the	4178
recipient's right to the disability benefit shall be terminated as	4179
of the effective date of the original suspension.	4180

(H) If an employer files an application for a disability	4181
benefit as a result of a member having been separated from service	4182
because the member is considered to be incapacitated for the	4183
performance of duty, and the board denies the disability benefit,	4184
the board shall so certify to the employer and the employer shall	4185
restore the member to the member's previous position and salary or	4186
to a similar position and salary.	4187

(I) The recipient of a disability allowance under section	4188
3307.631 of the Revised Code whose allowance terminates under	4189
division (C)(3) of that section due to age is not eligible to do	4190
either of the following:	4191

(1) Retire on disability under section 3307.63 of the Revised	4192
Code;	4193

(2) Receive a disability allowance under section 3307.631 of	4194
the Revised Code.	4195

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

4196

(1) "Physically or mentally incompetent" means incapable of	4197
earning a living because of a physically or mentally disabling	4198
condition. Physical or mental incompetency may be determined by a	4199
court or by a doctor of medicine or osteopathic medicine appointed	4200
by the state teachers retirement board.	4201

(2) "Qualifying service credit" has the same meaning as in	4202
section 3307.58 of the Revised Code.	4203

(B) For the purposes of this section:

4204

(1) A qualified spouse is the surviving spouse of a deceased	4205
member of the state teachers retirement system participating in	4206
the STRS defined benefit plan who is one of the following:	4207

(a) Sixty-two years of age or older or any age if the	4208
deceased member had ten or more years of Ohio service credit;	4209

(b) Caring for a qualified child;

4210

(c) Adjudged physically or mentally incompetent at the time	4211
of the member's death and has remained continuously incompetent;	4212

(d) Any age if the deceased member was eligible for a service	4213
retirement allowance as provided in section 3307.58 of the Revised	4214
Code and the surviving spouse elects to receive a benefit under	4215
division (C)(1) of this section.	4216

(2) A qualified child is a person who is the child of a	4217
deceased member participating in the STRS defined benefit plan to	4218
whom both of the following apply:	4219

(a) Never married;

4220

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

4221

(i) Is under age eighteen;

4222

(ii) Is under age twenty-two if attending an institution of	4223
learning or training pursuant to a program designed to complete in	4224
each school year the equivalent of at least two-thirds of the	4225
full-time curriculum requirements of such institution and as	4226
further determined by board policy;	4227

(iii) Is any age if adjudged physically or mentally	4228
incompetent, if the person became incompetent prior to attainment	4229
of age eighteen or prior to age twenty-two if attending an	4230
institution of learning or training described in division	4231
(B)(2)(b)(ii) of this section, and has remained continuously	4232
incompetent.	4233

(3) A qualified parent is a dependent parent of a deceased	4234
member participating in the STRS defined benefit plan who is age	4235
sixty-five or older.	4236

(4) A person is a "qualified survivor" if the person	4237
qualifies as a surviving spouse, child, or dependent parent.	4238

(C) Except as provided in division (G)(1) of this section, in	4239
lieu of accepting the payment of the accumulated account of a	4240
member participating in the STRS defined benefit plan who dies	4241
before service retirement, a beneficiary, as determined in section	4242
3307.562 of the Revised Code, may elect to forfeit the accumulated	4243
account and to substitute benefits under this division.	4244

(1) If a deceased member was eligible for a service	4245
retirement allowance as provided in section 3307.58 or 3307.59 of	4246
the Revised Code, a surviving spouse or an individual designated	4247
as the member's sole beneficiary pursuant to division (B) of	4248
section 3307.562 of the Revised Code who was a qualified child or	4249
dependent parent of the member or received one-half or more of	4250
support from the member during the twelve-month period preceding	4251
the member's death may elect to receive a monthly benefit computed	4252
as the joint-survivor allowance designated as option 1 in section	4253
3307.60 of the Revised Code, which the member would have received	4254
had the member retired on the last day of the month of death and	4255
had the member at that time selected such joint-survivor plan.	4256

(2)(a) A surviving spouse or other qualified survivor may	4257
elect to receive monthly benefits under division (C)(2) of this	4258
section if any of the following apply:	4259

(i) The deceased member ~~earned~~had service credit ~~before July~~	4260
1on account on June 30, 2013, and had completed at least one and	4261
one-half years of qualifying service credit, with at least	4262
one-quarter year of qualifying service credit within the two and	4263
one-half years prior to the date of death, or, if the member ~~had~~	4264
did not ~~earned~~have service credit ~~before July 1~~on account on	4265
June 30, 2013, had completed at least five years of qualifying	4266
service credit and died not later than one year after the date	4267
contributing service terminated.	4268

(ii) The member was receiving at the time of death a	4269
disability benefit as provided in section 3307.63 or 3307.631 of	4270
the Revised Code.	4271

(iii) The member was receiving, within twelve months prior to	4272
the date of death, a disability benefit as provided in section	4273
3307.63 or 3307.631 of the Revised Code and was contributing under	4274
this chapter or Chapter 145. or 3309. of the Revised Code at the	4275
time of death.	4276

(b) The surviving spouse or other qualified survivor shall	4277
elect one of the following methods of calculating benefits elected	4278
under division (C)(2) of this section, which shall, except as	4279
provided in division (G)(1) of this section, remain in effect	4280
without regard to any change in the number of qualified survivors:	4281

		Or	4282
(i) Number	Annual benefit as a	Monthly benefit	4283
of qualified	per cent of member's	shall not be	4284
survivors	final average salary	less than	4285

1	25%	$ 96	4286
2	40	186	4287
3	50	236	4288
4	55	236	4289
5 or more	60	236	4290

	Annual benefit as a	4291
	per cent of member's	4292
(ii) Years of service	final average salary	4293

20	29%	4294
21	33	4295
22	37	4296
23	41	4297
24	45	4298
25	48	4299
26	51	4300
27	54	4301
28	57	4302
29 or more	60	4303

(3)(a) If at the time of death the deceased member was	4304
receiving a disability benefit under section 3307.63 or 3307.631	4305
of the Revised Code, the benefit elected under division (C)(1) or	4306
(2) of this section shall be increased by a percentage equal to	4307
the total of any percentage increases the member received under	4308
section 3307.67 of the Revised Code, plus any additional amount	4309
the member received under this chapter while receiving the	4310
disability benefit. The increase shall be based on the benefit	4311
determined under division (C)(1) or (2) of this section. However,	4312
the benefit used to calculate any future increases under section	4313
3307.67 of the Revised Code shall be the benefit determined under	4314
division (C)(1) or (2) of this section.	4315

(b) If eligibility for a benefit under division (C)(1) or (2)	4316
of this section is not established until more than one year after	4317
the member's death, the annual benefit shall be increased by a	4318
percentage equal to the total of the percentage increases that	4319
would have been made under section 3307.67 of the Revised Code,	4320
plus any additional amount that would have been paid under this	4321
chapter had the benefit begun in the year in which the member	4322
died. However, the benefit used to calculate any future increases	4323
under section 3307.67 of the Revised Code shall be the benefit	4324
determined under division (C)(1) or (2) of this section, plus any	4325
additional amounts added to the benefit determined under this	4326
division that established a new base benefit to the deceased	4327
member.	4328

(D) If a benefit is calculated pursuant to division	4329
(C)(2)(b)(i) of this section, benefits to a surviving spouse shall	4330
be paid in the amount determined for the first qualifying survivor	4331
in division (C)(2)(b)(i) of this section, but shall not be less	4332
than one hundred six dollars per month if the deceased member had	4333
ten or more years of qualifying service credit. All other	4334
qualifying survivors shall share equally in the benefit or	4335
remaining portion thereof.	4336

If a benefit is calculated pursuant to division (C)(2)(b)(ii)	4337
of this section and is payable to more than one qualified	4338
survivor, the benefit shall be apportioned equally among the	4339
qualified survivors, except that if there is a surviving spouse,	4340
the portion of the benefit allocated to the surviving spouse shall	4341
be as follows:	4342

Number of		4343
survivors	Spouse's share of total benefit	4344
2	62.5%	4345
3	50.0%	4346
4	45.45%	4347
5 or more	41.67%	4348

(E) A qualified survivor shall file with the board an	4349
application for benefits payable under this section. Payments	4350
shall begin on whichever of the following applies:	4351

(1) If application is received not later than one year after	4352
the date of the member's death, benefits shall begin on the first	4353
day of the month following the date of death.	4354

(2) If application is received later than one year from the	4355
date of death, benefits shall begin on the first day of the month	4356
immediately following receipt of application by the board.	4357

Benefits to a qualified survivor shall terminate upon a first	4358
marriage, abandonment, or adoption. The termination of benefits is	4359
effective on the first day of the month following the day the	4360
person ceases to be a qualified survivor. Benefits to a deceased	4361
member's surviving spouse that were terminated under a former	4362
version of this section that required termination due to	4363
remarriage and were not resumed prior to the effective date of	4364
this amendment shall resume on the first day of the month	4365
immediately following receipt by the board of an application on a	4366
form provided by the board.	4367

Upon the death of any subsequent spouse who was a member of	4368
the public employees retirement system, state teachers retirement	4369
system, or school employees retirement system, the surviving	4370
spouse of such member may elect to continue receiving benefits	4371
under this division, or to receive survivor's benefits, based upon	4372
the subsequent spouse's membership in one or more of the systems,	4373
for which such surviving spouse is eligible under this section or	4374
section 145.45 or 3309.45 of the Revised Code. If the surviving	4375
spouse elects to continue receiving benefits under this division,	4376
such election shall not preclude the payment of benefits under	4377
this division to any other qualified survivor.	4378

(F) The beneficiary of a member who is also a member of the	4379
public employees retirement system, or the school employees	4380
retirement system, must forfeit the member's accumulated	4381
contributions in those systems, if the beneficiary elects to	4382
receive a benefit under division (C) of this section. Such benefit	4383
shall be exclusively governed by section 3307.57 of the Revised	4384
Code.	4385

(G)(1) Regardless of whether the member is survived by a	4386
spouse or designated beneficiary, if the state teachers retirement	4387
system receives notice that a deceased member described in	4388
division (C)(1) or (2) of this section has one or more qualified	4389
children, all persons who are qualified survivors under division	4390
(C)(2) of this section shall receive monthly benefits as provided	4391
in division (C)(2) of this section.	4392

If, after determining the monthly benefits to be paid under	4393
division (C)(2) of this section, the system receives notice that	4394
there is a qualified survivor who was not considered when the	4395
determination was made, the system shall, notwithstanding section	4396
3307.42 of the Revised Code, recalculate the monthly benefits with	4397
that qualified survivor included, even if the benefits to	4398
qualified survivors already receiving benefits are reduced as a	4399
result. The benefits shall be calculated as if the qualified	4400
survivor who is the subject of the notice became eligible on the	4401
date the notice was received and shall be paid to qualified	4402
survivors effective on the first day of the first month following	4403
the system's receipt of the notice.	4404

If the system did not receive notice that a deceased member	4405
has one or more qualified children prior to making payment under	4406
section 3307.562 of the Revised Code to a beneficiary as	4407
determined by the system, the payment is a full discharge and	4408
release of the system from any future claims under this section or	4409
section 3307.562 of the Revised Code.	4410

(2) If benefits under division (C)(2) of this section to all	4411
persons, or to all persons other than a surviving spouse or sole	4412
beneficiary, terminate, there are no children under the age of	4413
twenty-two years, and the surviving spouse or beneficiary	4414
qualifies for benefits under division (C)(1) of this section, the	4415
surviving spouse or beneficiary may elect to receive benefits	4416
under division (C)(1) of this section. The benefit shall be	4417
calculated based on the age of the spouse or beneficiary at the	4418
time of the member's death and is effective on the first day of	4419
the month following receipt by the board of an application for	4420
benefits under division (C)(1) of this section.	4421

(H) If the benefits due and paid under division (C) of this	4422
section are in a total amount less than the member's accumulated	4423
account that was transferred from the teachers' savings fund,	4424
school employees retirement fund, and public employees retirement	4425
fund, to the survivors' benefit fund, then the difference between	4426
the total amount of the benefits paid shall be paid to the	4427
beneficiary under section 3307.562 of the Revised Code.	4428

Sec. 3307.70. (A) A member of the state teachers retirement	4429
system who elects to purchase service credit described in section	4430
3307.73, 3307.74, 3307.751, 3307.76, 3307.771, or 3307.78 of the	4431
Revised Code shall do both of the following:	4432

(1) Submit an application to the state teachers retirement	4433
board in a manner or form approved by the board;	4434

(2)(a) If the purchase will be completed not later than	4435
December 31, 2013, for each year, or portion of a year, of credit	4436
purchased, pay to the ~~employees'~~teachers' savings fund the amount	4437
specified by former section 3307.73, 3307.74, 3307.751, 3307.76,	4438
3307.771, or 3307.78 of the Revised Code as the appropriate	4439
section existed immediately before ~~the effective date of this~~	4440
~~section~~January 7, 2013.	4441

(b) If the purchase will not be completed until on or after	4442
January 1, 2014, for each year, or portion of a year, of credit	4443
purchased, pay to the ~~employees'~~teachers' savings fund an amount	4444
specified by the board that is equal to one hundred per cent of	4445
the actuarial liability resulting from the purchase of that year	4446
or portion of a year of credit as determined by an actuary	4447
employed by the board.	4448

(c) If, on ~~the effective date of this amendment~~January 7,	4449
2013, the purchase is being made through a payroll deduction plan	4450
under section 3307.701 of the Revised Code and at least one	4451
deduction has been made, pay to the ~~employees'~~teachers' savings	4452
fund the amount specified by former section 3307.73, 3307.74,	4453
3307.751, 3307.76, 3307.771, or 3307.78 of the Revised Code as the	4454
appropriate section existed immediately before ~~the effective date~~	4455
~~of this section~~January 7, 2013.	4456

(B)(1) A purchase shall be considered completed for purposes	4457
of division (A)(2)(a) of this section only if the member's	4458
application is received by the retirement system as completed not	4459
later than December 31, 2013, and all payments are received by the	4460
retirement system not later than June 30, 2014.	4461

(2) A member purchasing credit through a payroll deduction	4462
plan under division (A)~~(1)~~(2)(c) of this section may pay in a	4463
single payment the balance of the cost of the credit.	4464

(C) Subject to board rules, a member may choose to purchase	4465
only part of any eligible service credit in any one payment.	4466

(D) The board shall adopt rules establishing criteria for	4467
determining eligibility for purchases of service credit and	4468
procedures for purchases of credit under this section.	4469

Any determination of the board under this section shall be	4470
final.	4471

(E) Service credit purchased under this section shall be	4472
included in the member's total service credit.	4473

If a member dies or withdraws from service, any payment made	4474
by the member under this section shall be considered as	4475
accumulated contributions of the member.	4476

Sec. 3307.71. (A)(1) Except as provided in this section,	4477
section 3305.05, or section 3305.051 of the Revised Code, a member	4478
or former member of the state teachers retirement system	4479
participating in the STRS defined benefit plan who has at least	4480
one and one-half years of contributing service credit in this	4481
system, the public employees retirement system, the school	4482
employees retirement system, the Ohio police and fire pension	4483
fund, or the state highway patrol retirement system after the	4484
withdrawal and cancellation of service credit in this system may	4485
restore all or part of such service credit by repayment of the	4486
amount withdrawn. To this amount shall be added interest at a rate	4487
per annum, compounded annually, to be determined by the state	4488
teachers retirement board. Interest shall be payable from the	4489
first of the month of withdrawal through the month of repayment. A	4490

(2) If the accumulated contributions were withdrawn under	4491
section 3307.561 of the Revised Code, service credit may be	4492
restored only if the member or former member accrued one and	4493
one-half years of service credit after the withdrawal and	4494
cancellation of service credit in this system.	4495

(B) A member may choose to purchase only part of such credit	4496
in any one payment. The cost for restoring partial service shall	4497
be calculated as the proportion that it bears to the total cost at	4498
the time of purchase and is subject to the rules established by	4499
the board. If a former member is eligible to buy the service	4500
credit as a member of the Ohio police and fire pension fund, the	4501
state highway patrol retirement system, or the city of Cincinnati	4502
Retirement System, the former member is ineligible to restore that	4503
service credit under this section.	4504

(C) The total payment to restore canceled service credit	4505
shall be credited as follows:	4506

~~(A)~~(1) The amount that equals contributions made pursuant to	4507
section 3307.26 of the Revised Code, plus any interest on the	4508
contributions paid by the member pursuant to this section, to the	4509
member's account in the teachers' savings fund;	4510

~~(B)~~(2) The amount that equals the amount paid under section	4511
3307.563 of the Revised Code, to the employers trust fund;	4512

~~(C)~~(3) The remainder of the payment to restore canceled	4513
service credit, to the guarantee fund.	4514

Sec. 3307.711. (A) A member of the state teachers retirement	4515
system who has at least eighteen months of contributing service	4516
credit in the system, the police and firemen's disability and	4517
pension fund, public employees retirement system, school employees	4518
retirement system, or state highway patrol retirement system, and	4519
is a former member of or no longer contributing to the public	4520
employees retirement system or school employees retirement system	4521
may restore service credit under section 145.31 or 3309.26 of the	4522
Revised Code by making payments pursuant to this section through a	4523
payroll deduction plan established under section 3307.701 of the	4524
Revised Code. A member seeking to restore this service credit	4525
shall notify the state teachers retirement system on a form	4526
approved by the state teachers retirement board. After receiving	4527
the notice, the state teachers retirement system shall request	4528
that the former retirement system calculate under section 145.312	4529
or 3309.262 of the Revised Code the cost to the member to restore	4530
service credit for each year or portion of a year of service for	4531
which the member seeks to restore the service credit. The amount	4532
the former retirement system certifies as the cost of restoring	4533
the service credit, plus interest described in division (B) of	4534
this section, is the cost to the member of restoring the service	4535
credit. On receiving the certification from the former retirement	4536
system, the state teachers retirement system shall notify the	4537
member of the cost.	4538

(B) For each year or portion of a year of service credit	4539
restored under section 145.31 or 3309.26 of the Revised Code, a	4540
member shall pay to the state teachers retirement system the	4541
amount certified by the former retirement system plus interest at	4542
a rate specified by the former retirement system under section	4543
145.312 or 3309.262 of the Revised Code for the period during	4544
which deductions are made under section 3307.701 of the Revised	4545
Code.	4546

(C) The state teachers retirement board shall at least	4547
annually ~~notify~~transmit to the former retirement system ~~that a~~	4548
~~payment~~notice and any payments made to restore service credit	4549
under section 145.31 or 3309.26 of the Revised Code ~~has been made~~.	4550
~~At the time the payment is transferred under division (D) of this~~	4551
~~section, the~~The former retirement system shall restore the	4552
service credit for the year or portion of a year for which the	4553
payment was made.	4554

(D) ~~On application for a payment of accumulated contributions~~	4555
~~or an age and service retirement, disability, or survivor benefit~~	4556
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	4557
~~member who made payments under this section to restore service~~	4558
~~credit in a former retirement system, the state teachers~~	4559
~~retirement system shall pay to the former retirement system an~~	4560
~~amount equal to the total amount paid by the member under this~~	4561
~~section.~~	4562

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

4563

Sec. 3307.73. (A)~~(1)~~As used in this section, "paying	4564
system" and "transferring system" have the same meanings as in	4565
section 3307.57 of the Revised Code.	4566

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	4567
section, a member of the state teachers retirement system	4568
participating in the STRS defined benefit plan who has at least	4569
eighteen months of contributing service in the system, the public	4570
employees retirement system, or school employees retirement system	4571
who chose to be exempted from membership in one or more of the	4572
systems pursuant to section 145.03, or 3309.23 of the Revised	4573
Code, or former section 3307.25 or 3309.25 of the Revised Code, or	4574
was exempt under section 3307.24 of the Revised Code, may purchase	4575
credit under section 3307.70 of the Revised Code for each year or	4576
portion of a year of service for which the member was exempted.	4577

(2) A member may not purchase credit for service that was	4578
exempted from contribution under section 3307.24 of the Revised	4579
Code and subject to the tax on wages imposed by the "Federal	4580
Insurance Contributions Act," 68A Stat. 415 (1954), 26 U.S.C.A.	4581
3101, as amended.	4582

~~(B)~~(C) Credit described in this section shall not exceed one	4583
year of service for any twelve-month period. If the period of	4584
service for which credit is purchasable is concurrent with a	4585
period of service that will be used to calculate a retirement	4586
benefit from this system, the public employees retirement system,	4587
or school employees retirement system, the amount of the credit	4588
shall be adjusted in accordance with rules adopted by the board.	4589

~~(C)~~(D) A member who is also a member of the public employees	4590
retirement system or school employees retirement system shall	4591
purchase credit for any service for which the member exempted the	4592
member's self under section 145.03 or 3309.23 of the Revised Code,	4593
or former section 3307.25 or 3309.25 of the Revised Code, or was	4594
exempt under section 3307.24 of the Revised Code, from the	4595
retirement system in which the member has the greatest number of	4596
years of service credit. If the member receives benefits under	4597
section 3307.57 of the Revised Code, the ~~state retirement~~ system	4598
that ~~determines and pays the retirement benefit~~is the paying	4599
system under that section shall receive from the ~~other~~ system or	4600
systems that are the transferring systems the amounts paid by the	4601
member for purchase of credit for exempt service plus interest at	4602
the actuarial assumption rate of the transferring system ~~paying~~	4603
~~that amount~~. The interest shall be for the period beginning on the	4604
date of the member's last payment for purchase of the credit and	4605
ending on the date of the member's retirement.	4606

Sec. 3309.01. As used in this chapter:

4607

(A) "Employer" or "public employer" means boards of	4608
education, school districts, joint vocational districts, governing	4609
authorities of community schools established under Chapter 3314.	4610
of the Revised Code, a science, technology, engineering, and	4611
mathematics school established under Chapter 3326. of the Revised	4612
Code, educational institutions, technical colleges, state,	4613
municipal, and community colleges, community college branches,	4614
universities, university branches, other educational institutions,	4615
or other agencies within the state by which an employee is	4616
employed and paid, including any organization using federal funds,	4617
provided the federal funds are disbursed by an employer as	4618
determined by the above. In all cases of doubt, the school	4619
employees retirement board shall determine whether any employer is	4620
an employer as defined in this chapter, and its decision shall be	4621
final.	4622

(B) "Employee" means all of the following:

4623

(1) Any person employed by a public employer in a position	4624
for which the person is not required to have a certificate or	4625
license issued pursuant to sections 3319.22 to 3319.31 of the	4626
Revised Code;	4627

(2) Any person who performs a service common to the normal	4628
daily operation of an educational unit even though the person is	4629
employed and paid by one who has contracted with an employer to	4630
perform the service, and the contracting board or educational unit	4631
shall be the employer for the purposes of administering the	4632
provisions of this chapter;	4633

(3) Any person, not a faculty member, employed in any school	4634
or college or other institution wholly controlled and managed, and	4635
wholly or partly supported by the state or any political	4636
subdivision thereof, the board of trustees, or other managing body	4637
of which shall accept the requirements and obligations of this	4638
chapter.	4639

In all cases of doubt, the school employees retirement board	4640
shall determine whether any person is an employee, as defined in	4641
this division, and its decision is final.	4642

(C) "Prior service" means all service rendered prior to	4643
September 1, 1937:	4644

(1) As an employee as defined in division (B) of this	4645
section;	4646

(2) As an employee in a capacity covered by the public	4647
employees retirement system or the state teachers retirement	4648
system;	4649

(3) As an employee of an institution in another state,	4650
service credit for which was procured by a member under the	4651
provisions of section 3309.31 of the Revised Code.	4652

Prior service, for service as an employee in a capacity	4653
covered by the public employees retirement system or the state	4654
teachers retirement system, shall be granted a member under	4655
qualifications identical to the laws and rules applicable to	4656
service credit in those systems.	4657

Prior service shall not be granted any member for service	4658
rendered in a capacity covered by the public employees retirement	4659
system, the state teachers retirement system, and this system in	4660
the event the service credit has, in the respective systems, been	4661
received, waived by exemption, or forfeited by withdrawal of	4662
contributions, except as provided in this chapter.	4663

If a member who has been granted prior service should,	4664
subsequent to September 16, 1957, and before retirement, establish	4665
three years of contributing service in the public employees	4666
retirement system, or one year in the state teachers retirement	4667
system, then the prior service granted shall become, at	4668
retirement, the liability of the other system, if the prior	4669
service or employment was in a capacity that is covered by that	4670
system.	4671

The provisions of this division shall not cancel any prior	4672
service granted a member by the school employees retirement board	4673
prior to August 1, 1959.	4674

(D) "Total service," "total service credit," or "Ohio service	4675
credit" means all contributing service of a member of the school	4676
employees retirement system, and all prior service, computed as	4677
provided in this chapter, and all service established pursuant to	4678
sections 3309.31, 3309.311, and 3309.33 of the Revised Code. In	4679
addition, "total service" includes any period, not in excess of	4680
three years, during which a member was out of service and	4681
receiving benefits from the state insurance fund, provided the	4682
injury or incapacitation was the direct result of school	4683
employment.	4684

(E) "Member" means any employee, except an SERS retirant or	4685
other system retirant as defined in section 3309.341 of the	4686
Revised Code, who has established membership in the school	4687
employees retirement system. "Member" includes a disability	4688
benefit recipient.	4689

(F) "Contributor" means any person who has an account in the	4690
employees' savings fund. When used in the sections listed in	4691
division (B) of section 3309.82 of the Revised Code, "contributor"	4692
includes any person participating in a plan established under	4693
section 3309.81 of the Revised Code.	4694

(G) "Retirant" means any former member who retired and is	4695
receiving a service retirement allowance or commuted service	4696
retirement allowance as provided in this chapter.	4697

(H) "Beneficiary" or "beneficiaries" means the estate or a	4698
person or persons who, as the result of the death of a contributor	4699
or retirant, qualifies for or is receiving some right or benefit	4700
under this chapter.	4701

(I) "Interest," as specified in division (E) of section	4702
3309.60 of the Revised Code, means interest at the rates for the	4703
respective funds and accounts as the school employees retirement	4704
board may determine from time to time, except as follows:	4705

(1) The rate of interest credited on employee contributions	4706
at retirement shall be four per cent per annum, compounded	4707
annually, to and including June 30, 1955; three per cent per	4708
annum, compounded annually, from July 1, 1955, to and including	4709
June 30, 1963; three and one-quarter per cent per annum,	4710
compounded annually, from July 1, 1963, through June 30, 1966; and	4711
thereafter, four per cent per annum compounded annually until a	4712
change in the amount is recommended by the system's actuary and	4713
approved by the retirement board. Subsequent to June 30, 1959, the	4714
retirement board shall discontinue the annual crediting of current	4715
interest on a contributor's accumulated contributions.	4716
Noncrediting of current interest shall not affect the rate of	4717
interest at retirement guaranteed under this division.	4718

(2) In determining the reserve value for purposes of	4719
computing the amount of the contributor's annuity, the rate of	4720
interest used in the annuity values shall be four per cent per	4721
annum through September 30, 1956; three per cent per annum	4722
compounded annually from October 1, 1956, through June 30, 1963;	4723
three and one-quarter per cent per annum compounded annually from	4724
July 1, 1963, through June 30, 1966; and, thereafter, four per	4725
cent per annum compounded annually until a change in the amount is	4726
recommended by the system's actuary and approved by the retirement	4727
board. In the purchase of out-of-state service credit as provided	4728
in section 3309.31 of the Revised Code, and in the purchase of an	4729
additional annuity, as provided in section 3309.47 of the Revised	4730
Code, interest shall be computed and credited to reserves therefor	4731
at the rate the school employees retirement board shall fix as	4732
regular interest thereon.	4733

(J) "Accumulated contributions" means the sum of all amounts	4734
credited to a contributor's account in the employees' savings fund	4735
together with any regular interest credited thereon at the rates	4736
approved by the retirement board prior to retirement.	4737

(K) "Final average salary" means the sum of the annual	4738
compensation for the three highest years of compensation for which	4739
contributions were made by the member, divided by three. If the	4740
member has a partial year of contributing service in the year in	4741
which the member terminates employment and the partial year is at	4742
a rate of compensation that is higher than the rate of	4743
compensation for any one of the highest three years of annual	4744
earnings, the board shall substitute the compensation earned for	4745
the partial year for the compensation earned for a similar	4746
fractional portion in the lowest of the three high years of annual	4747
compensation before dividing by three. If a member has less than	4748
three years of contributing membership, the final average salary	4749
shall be the total compensation divided by the total number of	4750
years, including any fraction of a year, of contributing service.	4751

(L) "Annuity" means payments for life derived from	4752
contributions made by a contributor and paid from the annuity and	4753
pension reserve fund as provided in this chapter. All annuities	4754
shall be paid in twelve equal monthly installments.	4755

(M)(1) "Pension" means annual payments for life derived from	4756
appropriations made by an employer and paid from the employers'	4757
trust fund or the annuity and pension reserve fund. All pensions	4758
shall be paid in twelve equal monthly installments.	4759

(2) "Disability retirement" means retirement as provided in	4760
section 3309.40 of the Revised Code.	4761

(N) "Retirement allowance" means the pension plus the	4762
annuity.	4763

(O)(1) "Benefit" means a payment, other than a retirement	4764
allowance or the annuity paid under section ~~3309.341~~3309.344 of	4765
the Revised Code, payable from the accumulated contributions of	4766
the member or the employer, or both, under this chapter and	4767
includes a disability allowance or disability benefit.	4768

(2) "Disability allowance" means an allowance paid on account	4769
of disability under section 3309.401 of the Revised Code.	4770

(3) "Disability benefit" means a benefit paid as disability	4771
retirement under section 3309.40 of the Revised Code, as a	4772
disability allowance under section 3309.401 of the Revised Code,	4773
or as a disability benefit under section 3309.35 of the Revised	4774
Code.	4775

(P) "Annuity reserve" means the present value, computed upon	4776
the basis of mortality tables adopted by the school employees	4777
retirement board, of all payments to be made on account of any	4778
annuity, or benefit in lieu of any annuity, granted to a retirant.	4779

(Q) "Pension reserve" means the present value, computed upon	4780
the basis of mortality tables adopted by the school employees	4781
retirement board, of all payments to be made on account of any	4782
pension, or benefit in lieu of any pension, granted to a retirant	4783
or a beneficiary.	4784

(R) "Year" means the year beginning the first day of July and	4785
ending with the thirtieth day of June next following.	4786

(S) "Local district pension system" means any school	4787
employees' pension fund created in any school district of the	4788
state prior to September 1, 1937.	4789

(T) "Employer contribution" means the amount paid by an	4790
employer as determined under section 3309.49 of the Revised Code.	4791

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

4792

(1) Exercises any discretionary authority or control with	4793
respect to the management of the system, or with respect to the	4794
management or disposition of its assets;	4795

(2) Renders investment advice for a fee, direct or indirect,	4796
with respect to money or property of the system;	4797

(3) Has any discretionary authority or responsibility in the	4798
administration of the system.	4799

(V)(1) Except as otherwise provided in this division,	4800
"compensation" means all salary, wages, and other earnings paid to	4801
a contributor by reason of employment. The salary, wages, and	4802
other earnings shall be determined prior to determination of the	4803
amount required to be contributed to the employees' savings fund	4804
under section 3309.47 of the Revised Code and without regard to	4805
whether any of the salary, wages, or other earnings are treated as	4806
deferred income for federal income tax purposes.	4807

(2) Compensation does not include any of the following:

4808

(a) Payments for accrued but unused sick leave or personal	4809
leave, including payments made under a plan established pursuant	4810
to section 124.39 of the Revised Code or any other plan	4811
established by the employer;	4812

(b) Payments made for accrued but unused vacation leave,	4813
including payments made pursuant to section 124.13 of the Revised	4814
Code or a plan established by the employer;	4815

(c) Payments made for vacation pay covering concurrent	4816
periods for which other salary or compensation is also paid or	4817
during which benefits are paid under this chapter;	4818

(d) Amounts paid by the employer to provide life insurance,	4819
sickness, accident, endowment, health, medical, hospital, dental,	4820
or surgical coverage, or other insurance for the contributor or	4821
the contributor's family, or amounts paid by the employer to the	4822
contributor in lieu of providing the insurance;	4823

(e) Incidental benefits, including lodging, food, laundry,	4824
parking, or services furnished by the employer, use of the	4825
employer's property or equipment, and reimbursement for	4826
job-related expenses authorized by the employer, including moving	4827
and travel expenses and expenses related to professional	4828
development;	4829

(f) Payments made to or on behalf of a contributor that are	4830
in excess of the annual compensation that may be taken into	4831
account by the retirement system under division (a)(17) of section	4832
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	4833
U.S.C.A. 401(a)(17), as amended. For a contributor who first	4834
establishes membership before July 1, 1996, the annual	4835
compensation that may be taken into account by the retirement	4836
system shall be determined under division (d)(3) of section 13212	4837
of the "Omnibus Budget Reconciliation Act of 1993," Pub. L. No.	4838
103-66, 107 Stat. 472;	4839

(g) Payments made under division (B), (C), or (E) of section	4840
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill	4841
No. 3 of the 119th general assembly, Section 3 of Amended	4842
Substitute Senate Bill No. 164 of the 124th general assembly, or	4843
Amended Substitute House Bill No. 405 of the 124th general	4844
assembly;	4845

(h) Anything of value received by the contributor that is	4846
based on or attributable to retirement or an agreement to retire,	4847
except that payments made on or before January 1, 1989, that are	4848
based on or attributable to an agreement to retire shall be	4849
included in compensation if both of the following apply:	4850

(i) The payments are made in accordance with contract	4851
provisions that were in effect prior to January 1, 1986.	4852

(ii) The employer pays the retirement system an amount	4853
specified by the retirement board equal to the additional	4854
liability from the payments.	4855

(3) The retirement board shall determine by rule whether any	4856
form of earnings not enumerated in this division is to be included	4857
in compensation, and its decision shall be final.	4858

(W) "Disability benefit recipient" means a member who is	4859
receiving a disability benefit.	4860

(X) "Actuary" means an individual who satisfies all of the	4861
following requirements:	4862

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

4863

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

4864

(3) Has a minimum of five years' experience in providing	4865
actuarial services to public retirement plans.	4866

Sec. 3309.11. The school employees retirement board shall	4867
elect, from its membership, a ~~chairman~~chairperson, and shall	4868
employ an executive director who shall serve as secretary ~~and who~~	4869
~~may be a member of the board~~.	4870

Sec. 3309.26. (A) The membership of any person in the school	4871
employees retirement system shall terminate if the person	4872
withdraws the person's accumulated contributions, retires on a	4873
retirement allowance as provided in sections 3309.36 and 3309.381	4874
of the Revised Code, or dies, unless otherwise provided in Chapter	4875
3309. of the Revised Code.	4876

(B) A former member with an account in the employees' savings	4877
fund who formerly lost membership shall be reinstated as a member	4878
with all the rights, privileges, and obligations as provided in	4879
Chapter 3309. of the Revised Code.	4880

(C)(1) Except as provided in this section, a member or former	4881
member of the school employees retirement system with at least one	4882
and one-half years of contributing service credit in this system,	4883
the public employees retirement system, the state teachers	4884
retirement system, the Ohio police and fire pension fund, or the	4885
state highway patrol retirement system, subsequent to the	4886
withdrawal of contributions and cancellation of service credit in	4887
this system may restore such service credit by redepositing in the	4888
employees' savings fund the amount withdrawn with interest at a	4889
rate to be determined by the board, compounded annually, from the	4890
first of the month of withdrawal to and including the month of	4891
redeposit. A	4892

(2) If the accumulated contributions were withdrawn under	4893
section 3309.43 of the Revised Code, service credit may be	4894
restored only if the member or former member accrued one and	4895
one-half years of service credit after the withdrawal of the	4896
accumulated contributions.	4897

(D) A member may choose to purchase only part of such credit	4898
in any one payment, subject to board rules. The total payment to	4899
restore cancelled service credit, plus any interest credited	4900
thereto, shall be considered as accumulated contributions of the	4901
member. If a former member is eligible to buy the service credit	4902
as a member of the Ohio police and fire pension fund, the state	4903
highway patrol retirement system, or the city of Cincinnati	4904
retirement system, the former member is ineligible to restore that	4905
service credit under this section.	4906

Sec. 3309.261. (A) A member of the school employees	4907
retirement system who has at least eighteen months of contributing	4908
service credit in the system, the Ohio police and fire pension	4909
fund, public employees retirement system, state teachers	4910
retirement system, or state highway patrol retirement system, and	4911
is a former member of or no longer contributing to the public	4912
employees retirement system or state teachers retirement system	4913
may restore service credit under section 145.31 or 3307.71 of the	4914
Revised Code by making payments pursuant to this section through a	4915
payroll deduction plan established under section 3309.27 of the	4916
Revised Code. A member seeking to restore service credit shall	4917
notify the school employees retirement system on a form approved	4918
by the school employees retirement board. After receiving the	4919
notice, the school employees retirement system shall request that	4920
the former retirement system calculate under section 145.312 or	4921
3307.712 of the Revised Code the cost to the member to restore	4922
service credit for each year or portion of a year of service for	4923
which the member seeks to restore the service credit. The amount	4924
the former retirement system certifies as the cost of restoring	4925
the service credit, plus interest described in division (B) of	4926
this section, is the cost to the member of restoring the service	4927
credit. On receiving the certification from the former retirement	4928
system, the school employees retirement system shall notify the	4929
member of the cost.	4930

(B) For each year or portion of a year of service credit	4931
restored under section 145.31 or 3307.71 of the Revised Code, a	4932
member shall pay to the school employees retirement system the	4933
amount certified by the former retirement system plus interest at	4934
a rate specified by the former retirement system under section	4935
145.312 or 3307.712 of the Revised Code for the period during	4936
which deductions are made under section 3309.27 of the Revised	4937
Code.	4938

(C) The school employees retirement board shall at least	4939
annually ~~notify~~transmit to the former retirement system ~~that a~~	4940
~~payment~~notice and any payments made to restore service credit	4941
under section 145.31 or 3307.71 of the Revised Code ~~has been made~~.	4942
~~At the time the payment is transferred under division (D) of this~~	4943
~~section, the~~The former retirement system shall restore the	4944
service credit for the year or portion of a year for which the	4945
payment was made.	4946

(D) ~~On application for a payment of accumulated contributions~~	4947
~~or an age and service retirement, disability, or survivor benefit~~	4948
~~under Chapter 145., 3307., or 3309. of the Revised Code by a~~	4949
~~member who made payments under this section to restore service~~	4950
~~credit in a former retirement system, the school employees~~	4951
~~retirement system shall pay to the former retirement system an~~	4952
~~amount equal to the total amount paid by the member under this~~	4953
~~section.~~	4954

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

4955

Sec. 3309.28. Not later than thirty days after an employee	4956
begins employment, the employer shall file with the school	4957
employees retirement system a detailed statement of the employee's	4958
personal information and ~~all of the employee's previous service as~~	4959
~~an employee or such other service as comes under this chapter or~~	4960
~~Chapter 145., 742., 3307., or 5505. of the Revised Code, and~~ such	4961
other information as the school employees retirement board	4962
requires for the proper operation of the school employees	4963
retirement system.	4964

Sec. 3309.301. (A)~~(1)~~As used in this section, "paying	4965
system" and "transferring system" have the same meanings as in	4966
section 3309.35 of the Revised Code.	4967

(B)(1) Except as provided in division ~~(A)~~(B)(2) of this	4968
section, a member of the school employees retirement system with	4969
at least eighteen months of contributing service in the system,	4970
the public employees retirement system, or the state teachers	4971
retirement system who exempted self from membership in one or more	4972
of the systems pursuant to section 145.03 or 3309.23 of the	4973
Revised Code, or former section 3307.25 or 3309.25 of the Revised	4974
Code, or was exempt under section 3307.24 of the Revised Code, may	4975
purchase credit for each year or portion of a year of service for	4976
which the member was exempted.	4977

(2) A member may not purchase credit under this section for	4978
service that was exempted from contribution under section 3309.23	4979
of the Revised Code and subject to the tax on wages imposed by the	4980
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26	4981
U.S.C.A. 3101, as amended.	4982

~~(B)~~(C) Upon receipt of a request from a member eligible to	4983
purchase credit under this section and certification of the	4984
member's service and compensation from the employer for which the	4985
exempt service was performed, the school employees retirement	4986
system shall determine the amount of credit the member is eligible	4987
to purchase in accordance with divisions ~~(B)~~(C)(1) and (2) of this	4988
section.	4989

(1) If the credit to be purchased is for service exempted	4990
under section 3309.23 or former section 3309.25 of the Revised	4991
Code, determine the amount of credit that would have been earned	4992
had the service not been exempt.	4993

(2) If the credit to be purchased is for service exempted	4994
under section 145.03 or 3307.24, or former section 3307.25 of the	4995
Revised Code, request certification from the applicable retirement	4996
system that the service was exempt and the amount of service	4997
credit that would have been earned had the service not been	4998
exempt.	4999

~~(C)~~(D) For each year or portion of a year of credit purchased	5000
under this section, a member shall pay to the retirement system an	5001
amount determined by multiplying the member's compensation for the	5002
twelve months of contributing service preceding the month in which	5003
the member applies to purchase the credit by a percentage rate	5004
established by rule of the school employees retirement board	5005
adopted under division ~~(G)~~(H) of this section.	5006

~~(D)~~(E) Subject to board rules, a member may purchase all or	5007
part of the credit the member is eligible to purchase under this	5008
section in one or more payments. If the member purchases the	5009
credit in more than one payment, compound interest at a rate	5010
specified by rule of the board shall be charged on the balance	5011
remaining after the first payment is made.	5012

~~(E)~~(F) Credit purchasable under this section shall not exceed	5013
one year of service for any twelve-month period. If the period of	5014
service for which credit is purchasable under this section is	5015
concurrent with a period of service that will be used to calculate	5016
a retirement benefit from this system, the public employees	5017
retirement system, or the state teachers retirement system, the	5018
amount of the credit shall be adjusted in accordance with rules	5019
adopted by the school employees retirement board.	5020

A member who is also a member of the public employees	5021
retirement system or the state teachers retirement system shall	5022
purchase credit for any service for which the member exempted self	5023
under section 145.03 or 3309.23 of the Revised Code, or former	5024
section 3307.25 or 3309.25 of the Revised Code, or was exempt	5025
under section 3307.24 of the Revised Code, from the retirement	5026
system in which the member has the greatest number of years of	5027
service credit. If the member receives benefits under section	5028
3309.35 of the Revised Code, the state retirement system that	5029
~~determines and pays the retirement benefit~~is the paying system	5030
under that section shall receive from the ~~other~~ system or systems	5031
that are the transferring systems the amounts paid by the member	5032
for purchase of credit for exempt service plus interest at the	5033
actuarial assumption rate of the transferring system ~~paying that~~	5034
~~amount~~. The interest shall be for the period beginning on the date	5035
of the member's last payment for purchase of the credit and ending	5036
on the date of the member's retirement.	5037

~~(F)~~(G) If a member dies or withdraws from service, any	5038
payment made by the member under this section shall be considered	5039
as accumulated contributions of the member.	5040

~~(G)~~(H) The retirement board shall adopt rules to implement	5041
this section.	5042

Sec. 3309.35. (A) As used in this section:

5043

(1) "State retirement system" means the public employees	5044
retirement system, state teachers retirement system, or school	5045
employees retirement system.	5046

(2) "Total service credit" means all service credit earned in	5047
all state retirement systems, except credit for service subject to	5048
section 3309.341 of the Revised Code. Total service credit shall	5049
not exceed one year of credit for any twelve-month period.	5050

(3) In addition to the meaning given in division (O) of	5051
section 3309.01 of the Revised Code, "disability benefit" means	5052
"disability benefit" as defined in sections 145.01 and 3307.01 of	5053
the Revised Code.	5054

(4) "Paying system" means the state retirement system in	5055
which the member has the greatest service credit, without	5056
adjustment or, if a member who has equal service credit in two or	5057
more retirement systems, the retirement system in which the member	5058
has the greatest total contributions.	5059

(5) "Transferring system" means the state retirement system	5060
transferring a member's contributions and service credit in that	5061
system to the paying system.	5062

(6) "Retention percentage" means five per cent, or a	5063
percentage determined under division (E) of this section, of a	5064
member's earnable salary in the case of a member of the public	5065
employees retirement system or five per cent, or a percentage	5066
determined under division (E) of this section, of a member's	5067
compensation in the case of a member of the state teachers	5068
retirement system or school employees retirement system.	5069

(B) To coordinate and integrate membership in the state	5070
retirement systems, at the option of a member, total contributions	5071
and service credit in all state retirement systems, including	5072
amounts paid to restore service credit under sections 145.311,	5073
3307.711, and 3309.261 of the Revised Code, shall be used in	5074
determining the eligibility and total retirement or disability	5075
benefit payable. When total contributions and service credit are	5076
so combined, the following provisions apply:	5077

(1) Service and commuted service retirement or a disability	5078
benefit is effective no sooner than the first day of the month	5079
next following the last day of employment for which compensation	5080
was paid. If the application is filed after that date, the board	5081
may retire the member on the first day of the month next following	5082
the last day of employment for which compensation was paid.	5083

(2) ~~Eligibility for a disability benefit shall be determined~~	5084
~~by the~~The board of the ~~state retirement~~paying system ~~that will~~	5085
~~calculate~~shall do both of the following:	5086

(a) Determine a member's eligibility for a retirement or	5087
disability benefit;	5088

(b) Calculate and pay the member's retirement or disability	5089
benefit~~, as provided in division (B)(3) of this section~~. ~~The state~~	5090
~~retirement~~	5091

(3)(a) Each transferring system ~~calculating and paying the~~	5092
~~disability benefit~~in which the member has service credit shall	5093
certify ~~the determination~~ to the ~~board of each other state~~	5094
~~retirement~~paying system ~~in which the member has service credit~~	5095
~~and shall be accepted by that board as sufficient for granting a~~	5096
~~disability benefit.~~	5097

~~(3) The board of the state retirement system in which the~~	5098
~~member had the greatest service credit, without adjustment, shall~~	5099
~~calculate and pay the total retirement or disability benefit.~~	5100
~~Where the member's credit is equal in two or more state retirement~~	5101
~~systems, the system having the largest total contributions of the~~	5102
~~member shall calculate and pay the total benefit~~all of the	5103
following:	5104

(i) The service credit earned by the member in the	5105
transferring system;	5106

(ii) The beginning and ending dates of the service credit	5107
period covered by the transferring system;	5108

(iii) Any breaks in service by the member, excluding school	5109
breaks;	5110

(iv) If available, a statement listing the member's monthly	5111
contributions and service credit earned, obtained, or purchased in	5112
the transferring system.	5113

(b) The certification under division (B)(3)(a) of this	5114
section may be reviewed by both the transferring system and paying	5115
system.	5116

(4) In determining the total credit to be used in calculating	5117
a retirement allowance or disability benefit, credit shall not be	5118
reduced below that certified by the system or systems transferring	5119
credit, except ~~that such total combined service credit shall not~~	5120
~~exceed~~as follows:	5121

(a) Not more than one year of credit may be certified by the	5122
transferring system for any one "year" as defined in the law of	5123
the transferring system ~~making the calculation~~.	5124

(b) The paying system may reduce any credit certified by the	5125
transferring system that is concurrent with any period of service	5126
credit the member earned from the paying system.	5127

(c) The paying system may reduce any credit certified by the	5128
transferring system if the amount certified, when added to the	5129
paying system's service credit for any one "year" as defined in	5130
the law of the paying system, exceeds one year.	5131

(5)(a) The ~~state retirement~~paying system ~~calculating and~~	5132
~~paying a retirement or disability benefit~~ shall receive from the	5133
~~other~~transferring system or systems all of the following for each	5134
year of service:	5135

(i) The amount contributed by the member, or, in the case of	5136
service credit purchased by the member, paid by the member, that	5137
is attributable to the year of service;	5138

(ii) An amount equal to the lesser of the employer's	5139
contributions made on behalf of the member to the ~~retirement~~	5140
transferring system for that year of service less the retention	5141
percentage or the amount that would have been contributed by the	5142
employer for the service had the member been a member of the	5143
school employees retirement system at the time the credit was	5144
earned less the retention percentage;	5145

(iii) If applicable, an amount equal to the amount paid on	5146
behalf of the member by an employer under section 145.483 of the	5147
Revised Code;	5148

(iv) Interest compounded annually on the amounts specified in	5149
divisions (B)(5)(a)(i), (ii), and (iii) of this section at the	5150
lesser of the actuarial assumption rate for that year of the	5151
~~school employees retirement~~paying system or the ~~other retirement~~	5152
transferring system or systems ~~transferring amounts under this~~	5153
~~section~~.	5154

(b) The annuity rates and mortality tables of the ~~state~~	5155
~~retirement~~paying system ~~making the calculation and paying the~~	5156
~~benefit~~ shall be exclusively applicable.	5157

(c) Deposits made for the purchase of an additional annuity,	5158
and including guaranteed interest, upon the request of the member,	5159
shall be transferred to the ~~state retirement~~paying system ~~paying~~	5160
~~the retirement or disability benefit~~. The return upon such	5161
deposits shall be that offered by the ~~state retirement~~paying	5162
system ~~making the calculation and paying the retirement or~~	5163
~~disability benefit~~.	5164

(C) A former member receiving a retirement or disability	5165
benefit under this section, who accepts employment amenable to	5166
coverage in any state retirement system that participated in the	5167
member's combined benefit, shall be subject to the applicable	5168
provisions of law governing such re-employment. If a former member	5169
should be paid any amount in a retirement allowance, to which the	5170
former member is not entitled under the applicable provisions of	5171
law governing such re-employment, such amount shall be recovered	5172
by the ~~state retirement~~paying system ~~paying such allowance~~ by	5173
utilizing any recovery procedure available under the ~~code~~	5174
~~provisions of the state retirement system covering such~~paying	5175
system's re-employment provisions.	5176

(D) An SERS retirant or other system retirant, as defined in	5177
section 3309.341 of the Revised Code, is not eligible to receive	5178
any benefit under this section for service subject to section	5179
3309.341 of the Revised Code.	5180

(E) The retention percentage used in the calculation under	5181
division (B)(5)(a)(ii) of this section shall be reviewed by the	5182
state retirement systems not less than once every five years	5183
beginning after the effective date of this amendment or on request	5184
of any of the systems. If the retirement systems agree, the	5185
retention percentage may be changed if any of the system's	5186
employer contribution rate increases or decreases or the systems	5187
agree that a change is in the interest of one or more of the	5188
systems.	5189

Sec. 3309.381. (A) A recipient of a disability allowance	5190
under section 3309.401 of the Revised Code who is subject to	5191
division (C)(3) of that section may make application for	5192
retirement under this section. Retirement shall be effective on	5193
the first day of the first month following the last day for which	5194
the disability allowance is paid.	5195

(B) The annual allowance payable under this section shall	5196
consist of the sum of the amounts determined under divisions	5197
(B)(1) and (2) of this section:	5198

(1) The greater of the following:

5199

(a) An allowance calculated as ~~provided in section 3309.36 of~~	5200
~~the Revised Code~~follows, excluding any period during which the	5201
applicant received a disability benefit under section 3309.401 of	5202
the Revised Code;:	5203

(i) For an applicant who would be eligible to retire under	5204
division (A)(1) of section 3309.34 of the Revised Code, the	5205
allowance shall be calculated under divisions (B)(1)(a) and (B)(2)	5206
of section 3309.36 of the Revised Code;	5207

(ii) For an applicant who would be eligible to retire under	5208
division (A)(2) of section 3309.34 of the Revised Code, the	5209
allowance shall be calculated under divisions (B)(1)(b) and (B)(3)	5210
of section 3309.36 of the Revised Code.	5211

(b) An allowance calculated by multiplying the applicant's	5212
total service credit, including service credit for the last	5213
continuous period during which the applicant received a disability	5214
benefit under section 3309.401 of the Revised Code, by two and	5215
two-tenths per cent of the applicant's final average salary,	5216
except that the allowance shall not exceed forty-five per cent of	5217
the applicant's final average salary.	5218

(2) An amount equal to the additional allowance the recipient	5219
would receive under section 3309.374 of the Revised Code, plus any	5220
other additional amount the recipient would receive under this	5221
chapter, had the recipient retired under section 3309.36 of the	5222
Revised Code effective on the effective date of the recipient's	5223
most recent continuous period of receipt of a disability benefit	5224
under section 3309.401 of the Revised Code.	5225

(C) The allowance calculated under division (B) of this	5226
section, exclusive of any amount added under division (B)(2) of	5227
this section based on section 3309.374 of the Revised Code, shall	5228
be the base for all future additional allowances under section	5229
3309.374 of the Revised Code.	5230

The anniversary date for future additional allowances under	5231
section 3309.374 of the Revised Code shall be the effective date	5232
of the recipient's most recent continuous period of receipt of a	5233
disability benefit under section 3309.401 of the Revised Code.	5234

(D) The retirement allowance determined under this section	5235
shall be paid as provided in section 3309.46 of the Revised Code.	5236

Sec. 3309.42. (A)(1) Subject to ~~sections 3309.43 and~~section	5237
3309.67 of the Revised Code and except as provided in division (B)	5238
of this section, a member who elects to become exempt from	5239
contribution to the school employees retirement system pursuant to	5240
section 3309.23 of the Revised Code, or ceases to be an employee	5241
for any cause other than death, retirement, receipt of a	5242
disability benefit, or current employment in a position in which	5243
the member has elected to participate in an alternative retirement	5244
plan pursuant to section 3305.05 or 3305.051 of the Revised Code,	5245
shall be paid the accumulated contributions standing to the credit	5246
of the member's individual account in the employees' savings fund	5247
upon application and subject to such rules as are established by	5248
the school employees retirement board and provided three months	5249
have elapsed since employment, other than employment exempt from	5250
contribution under division (C) of section 3309.23 of the Revised	5251
Code, ceased.	5252

(2) A member described in division (A)(1) of this section who	5253
is married at the time of application for payment and would be	5254
eligible for age and service retirement under section 3309.34,	5255
3309.36, or 3309.40 of the Revised Code but for a forfeiture	5256
ordered under division (A) or (B) of section 2929.192 of the	5257
Revised Code shall submit with the application a written statement	5258
by the member's spouse attesting that the spouse consents to the	5259
payment of the member's accumulated contributions. Consent shall	5260
be valid only if it is signed and witnessed by a notary public.	5261
The board may waive the requirement of consent if the spouse is	5262
incapacitated or cannot be located, or for any other reason	5263
specified by the board. Consent or waiver is effective only with	5264
regard to the spouse who is the subject of the consent or waiver.	5265

(B) This division applies to any member who is employed in a	5266
position in which the member has elected under section 3305.05 or	5267
3305.051 of the Revised Code to participate in an alternative	5268
retirement plan and due to the election ceases to be an employee	5269
for purposes of that position.	5270

Subject to ~~sections 3309.43 and~~section 3309.67 of the	5271
Revised Code, the school employees retirement system shall do the	5272
following:	5273

(1) On receipt of an election under section 3305.05 or	5274
3305.051 of the Revised Code, pay, in accordance with section	5275
3305.052 of the Revised Code, the amount described in that section	5276
to the appropriate provider;	5277

(2) If a member has accumulated contributions, in addition to	5278
those subject to division (B)(1) of this section, standing to the	5279
credit of the member's individual account and is not otherwise in	5280
a position in which the member is considered an employee for the	5281
purposes of that position, pay, to the provider the member	5282
selected pursuant to section 3305.05 or 3305.051 of the Revised	5283
Code, the accumulated contributions standing to the credit of the	5284
member's individual account in the employees' saving fund. The	5285
payment shall be made on the member's application.	5286

(C) Payment of a member's accumulated contributions under	5287
this section cancels the member's total service credit in the	5288
school employees retirement system. A member whose accumulated	5289
contributions are paid to a provider pursuant to division (B) of	5290
this section is forever barred from claiming or purchasing service	5291
credit under the school employees retirement system for the period	5292
of employment attributable to those contributions.	5293

Sec. 3309.43. (A) As used in this section, "other retirement	5294
system" means the public employees retirement system or the state	5295
teachers retirement system.	5296

(B) Except as provided in division (C) of this section, on	5297
application, a member of the school employees retirement system	5298
who is also a member of one or both of the other retirement	5299
systems and has ceased to be an employee under this chapter may be	5300
paid, in accordance with section 3309.42 of the Revised Code, the	5301
member's accumulated contributions to the school employees	5302
retirement system. This payment does not affect the member's	5303
membership in the other retirement systems or any right the member	5304
may have to a benefit or return of contributions under those	5305
systems.	5306

(C) This section does not apply to a member of one of the	5307
other retirement systems whose employment under that system is	5308
with the public employer that was the employer under the school	5309
employees retirement system at the time the member's service	5310
subject to this chapter terminated.	5311

Sec. 3309.45. Except as provided in division (C)(1) of this	5312
section, in lieu of accepting the payment of the accumulated	5313
account of a member who dies before service retirement, the	5314
beneficiary, as determined in section 3309.44 of the Revised Code,	5315
may elect to forfeit the accumulated account and to substitute	5316
certain other benefits either under division (A) or (B) of this	5317
section.	5318

(A)(1) If a deceased member was eligible for a service	5319
retirement allowance as provided in section 3309.36 or 3309.381 of	5320
the Revised Code, a surviving spouse or other sole dependent	5321
beneficiary may elect to receive a monthly benefit computed as the	5322
joint-survivor allowance designated as "plan D" in section 3309.46	5323
of the Revised Code, which the member would have received had the	5324
member retired on the last day of the month of death and had the	5325
member at that time selected such joint-survivor plan. Payment	5326
shall begin with the month subsequent to the member's death.	5327

(2) Beginning on a date selected by the school employees	5328
retirement board, which shall be not later than July 1, 2004, a	5329
surviving spouse or other sole dependent beneficiary may elect, in	5330
lieu of a monthly payment under division (A)(1) of this section, a	5331
plan of payment consisting of both of the following:	5332

(a) A lump sum in an amount the surviving spouse or other	5333
sole dependent beneficiary designates that constitutes a portion	5334
of the allowance that would be payable under division (A)(1) of	5335
this section;	5336

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

5337

The total amount paid as a lump sum and a monthly benefit	5338
shall be the actuarial equivalent of the amount that would have	5339
been paid had the lump sum not been selected.	5340

The lump sum amount designated by the surviving spouse or	5341
other sole dependent beneficiary under division (A)(2)(a) of this	5342
section shall be not less than six times and not more than	5343
thirty-six times the monthly amount that would be payable to the	5344
surviving spouse or other sole dependent beneficiary under	5345
division (A)(1) of this section and shall not result in a monthly	5346
benefit that is less than fifty per cent of that monthly amount.	5347

(B) If the deceased member had completed at least one and	5348
one-half years of credit for Ohio service, with at least	5349
one-quarter year of Ohio contributing service credit within the	5350
two and one-half years prior to the date of death, or was	5351
receiving at the time of death a disability benefit as provided in	5352
section 3309.40 or 3309.401 of the Revised Code, qualified	5353
survivors who elect to receive monthly benefits shall receive the	5354
greater of the benefits provided in division (B)(1)(a) or (b) as	5355
allocated in accordance with division (B)(5) of this section.	5356

(1)(a) Number		Or	5357
of Qualified		Monthly	5358
survivors	Annual Benefit as a Per	Benefit	5359
affecting	Cent of Decedent's Final	shall not be	5360
the benefit	Average Salary	less than	5361

1	25%	$96	5362
2	40	186	5363
3	50	236	5364
4	55	236	5365
5 or more	60	236	5366

(b) Years of Service

Annual Benefit as a Per Cent of Member's Final Average Salary

5367

20	29%	5368
21	33	5369
22	37	5370
23	41	5371
24	45	5372
25	48	5373
26	51	5374
27	54	5375
28	57	5376
29 or more	60	5377

(2) Benefits shall begin as qualified survivors meet	5378
eligibility requirements as follows:	5379

(a) A qualified spouse is the surviving spouse of the	5380
deceased member who is age sixty-two, or regardless of age if the	5381
deceased member had ten or more years of Ohio service credit, or	5382
regardless of age if caring for a surviving child, or regardless	5383
of age if adjudged physically or mentally incompetent.	5384

(b) A qualified child whose benefit began before ~~the~~	5385
~~effective date of this amendment~~January 7, 2013, is any child of	5386
the deceased member who has never been married and to whom one of	5387
the following applies:	5388

(i) Is under age eighteen, or under age twenty-two if the	5389
child is attending an institution of learning or training pursuant	5390
to a program designed to complete in each school year the	5391
equivalent of at least two-thirds of the full-time curriculum	5392
requirements of such institution and as further determined by	5393
board policy;	5394

(ii) Regardless of age, is adjudged physically or mentally	5395
incompetent if the incompetence existed prior to the member's	5396
death and prior to the child attaining age eighteen, or age	5397
twenty-two if attending an institution described in division	5398
(B)(2)(b)(i) of this section.	5399

(c) A qualified child whose benefit begins on or after ~~the~~	5400
~~effective date of this amendment~~January 7, 2013, is any child of	5401
the deceased member who has never been married and to whom one of	5402
the following applies:	5403

(i) Is under age nineteen;

5404

(ii) Regardless of age, is adjudged physically or mentally	5405
incompetent if the incompetence existed prior to the member's	5406
death and prior to the child attaining age nineteen.	5407

(d) A qualified parent is a dependent parent aged sixty-five	5408
or older.	5409

(3) "Physically or mentally incompetent" as used in this	5410
section may be determined by a court of jurisdiction, or by a	5411
physician appointed by the retirement board. Incapability of	5412
earning a living because of a physically or mentally disabling	5413
condition shall meet the qualifications of this division.	5414

(4) Benefits to a qualified survivor shall terminate upon a	5415
first marriage, abandonment, adoption, or during active military	5416
service. Benefits to a deceased member's surviving spouse that	5417
were terminated under a former version of this section that	5418
required termination due to remarriage and were not resumed prior	5419
to September 16, 1998, shall resume on the first day of the month	5420
immediately following receipt by the board of an application on a	5421
form provided by the board.	5422

Upon the death of any subsequent spouse who was a member of	5423
the public employees retirement system, state teachers retirement	5424
system, or school employees retirement system, the surviving	5425
spouse of such member may elect to continue receiving benefits	5426
under this division, or to receive survivor's benefits, based upon	5427
the subsequent spouse's membership in one or more of the systems,	5428
for which such surviving spouse is eligible under this section or	5429
section 145.45 or 3307.66 of the Revised Code. If the surviving	5430
spouse elects to continue receiving benefits under this division,	5431
such election shall not preclude the payment of benefits under	5432
this division to any other qualified survivor.	5433

Benefits shall begin or resume on the first day of the month	5434
following the attainment of eligibility and shall terminate on the	5435
first day of the month following loss of eligibility.	5436

(5)(a) If a benefit is payable under division (B)(1)(a) of	5437
this section, benefits to a qualified spouse shall be paid in the	5438
amount determined for the first qualifying survivor in division	5439
(B)(1)(a) of this section, but shall not be less than one hundred	5440
six dollars per month if the deceased member had ten or more years	5441
of Ohio service credit. All other qualifying survivors shall share	5442
equally in the benefit or remaining portion thereof.	5443

(b) All qualifying survivors shall share equally in a benefit	5444
payable under division (B)(1)(b) of this section, except that if	5445
there is a surviving spouse, the surviving spouse shall receive no	5446
less than the greater of the amount determined for the first	5447
qualifying survivor in division (B)(1)(a) of this section or one	5448
hundred six dollars per month.	5449

(6) The beneficiary of a member who is also a member of the	5450
public employees retirement system, or of the state teachers	5451
retirement system, must forfeit the member's accumulated	5452
contributions in those systems, if the beneficiary takes a	5453
survivor benefit. Such benefit shall be exclusively governed by	5454
section 3309.35 of the Revised Code.	5455

(C)(1) Regardless of whether the member is survived by a	5456
spouse or designated beneficiary, if the school employees	5457
retirement system receives notice that a deceased member described	5458
in division (A) or (B) of this section has one or more qualified	5459
children, all persons who are qualified survivors under division	5460
(B) of this section shall receive monthly benefits as provided in	5461
division (B) of this section.	5462

If, after determining the monthly benefits to be paid under	5463
division (B) of this section, the system receives notice that	5464
there is a qualified survivor who was not considered when the	5465
determination was made, the system shall, notwithstanding section	5466
3309.661 of the Revised Code, recalculate the monthly benefits	5467
with that qualified survivor included, even if the benefits to	5468
qualified survivors already receiving benefits are reduced as a	5469
result. The benefits shall be calculated as if the qualified	5470
survivor who is the subject of the notice became eligible on the	5471
date the notice was received and shall be paid to qualified	5472
survivors effective on the first day of the first month following	5473
the system's receipt of the notice.	5474

If the retirement system did not receive notice that a	5475
deceased member has one or more qualified children prior to making	5476
payment under section 3309.44 of the Revised Code to a beneficiary	5477
as determined by the retirement system, the payment is a full	5478
discharge and release of the system from any future claims under	5479
this section or section 3309.44 of the Revised Code.	5480

(2) If benefits under division (C)(1) of this section to all	5481
persons, or to all persons other than a surviving spouse or other	5482
sole beneficiary, terminate, there are no qualified children ~~under~~	5483
~~the age of twenty-two years~~, and the surviving spouse or	5484
beneficiary qualifies for benefits under division (A) of this	5485
section, the surviving spouse or beneficiary may elect to receive	5486
benefits under division (A) of this section. Benefits shall be	5487
effective on the first day of the month following receipt by the	5488
board of an application for benefits under division (A) of this	5489
section.	5490

(D) The final average salary used in the calculation of a	5491
benefit payable pursuant to division (A) or (B) of this section to	5492
a survivor or beneficiary of a disability benefit recipient shall	5493
be adjusted for each year between the disability benefit's	5494
effective date and the recipient's date of death by the lesser of	5495
three per cent or the actual average percentage increase in the	5496
consumer price index prepared by the United States bureau of labor	5497
statistics (U.S. City Average for Urban Wage Earners and Clerical	5498
Workers: "All Items 1982-84=100").	5499

(E) If the survivor benefits due and paid under this section	5500
are in a total amount less than the member's accumulated account	5501
that was transferred from the employees' savings fund, the state	5502
teachers retirement fund, and the public employees retirement fund	5503
to the survivors' benefit fund, then the difference between the	5504
total amount of the benefits paid shall be paid to the beneficiary	5505
under section 3309.44 of the Revised Code.	5506

Sec. 3309.49. Each employer shall pay ~~annually~~ to the school	5507
employees retirement system at such times as required by the	5508
school employees retirement board under section 3309.51 of the	5509
Revised Code an amount ~~certified by the secretary~~ that shall be a	5510
certain per cent of the earnable compensation of all employees,	5511
and shall be known as the "employer contribution." The rate per	5512
cent of such contribution shall be fixed by the actuary on the	5513
basis of the actuary's evaluation of the liabilities of the school	5514
employees retirement system, but shall not exceed fourteen per	5515
cent, and shall be approved by the school employees retirement	5516
board. The school employees retirement board may raise the rate	5517
per cent of the contribution to fourteen per cent of the earnable	5518
compensation of all employees. In making such evaluation, the	5519
actuary shall use, as the actuarial assumptions, regular interest	5520
and such mortality and other tables as are adopted by the school	5521
employees retirement board. The actuary shall compute the	5522
percentage of such earnable compensation, to be known as the	5523
"employer rate," required annually to fund the liability for all	5524
allowances, annuities, pensions and other benefits, and any	5525
deficiencies in the various funds, provided for in this chapter,	5526
after deducting therefrom the annuity and other benefits provided	5527
by the contributor's accumulated contributions and deposits or	5528
other applicable moneys.	5529

Sec. 3309.51. (A) Each employer shall pay into the employers'	5530
trust fund, in monthly or ~~less frequent installments~~at such times	5531
as the school employees retirement board requires, an amount	5532
certified by the school employees retirement board, which shall be	5533
as required by Chapter 3309. of the Revised Code.	5534

Payments by school district boards of education to the	5535
employers' trust fund of the school employees retirement system	5536
may be made from the amounts allocated under Chapter 3317. of the	5537
Revised Code prior to their distribution to the individual school	5538
districts. The amount due from each school district may be	5539
certified by the secretary of the system to the superintendent of	5540
public instruction monthly, or at such times as is determined by	5541
the school employees retirement board.	5542

Payments by governing authorities of community schools to the	5543
employers' trust fund of the school employees retirement system	5544
shall be made from the amounts allocated under section 3314.08 of	5545
the Revised Code prior to their distribution to the individual	5546
community schools. The amount due from each community school shall	5547
be certified by the secretary of the system to the superintendent	5548
of public instruction monthly, or at such times as determined by	5549
the school employees retirement board.	5550

Payments by a science, technology, engineering, and	5551
mathematics school to the employers' trust fund of the school	5552
employees retirement system shall be made from the amounts	5553
allocated under section 3326.33 of the Revised Code prior to their	5554
distribution to the school. The amount due from a science,	5555
technology, engineering, and mathematics school shall be certified	5556
by the secretary of the school employees retirement system to the	5557
superintendent of public instruction monthly, or at such times as	5558
determined by the school employees retirement board.	5559

(B) The superintendent shall deduct from the amount allocated	5560
to each community school under section 3314.08 of the Revised	5561
Code, to each school district under Chapter 3317. of the Revised	5562
Code, or to each science, technology, engineering, and mathematics	5563
school under section 3326.33 of the Revised Code the entire	5564
amounts due to the school employees retirement system from such	5565
school or school district upon the certification to the	5566
superintendent by the secretary thereof.	5567

(C) Where an employer fails or has failed or refuses to make	5568
payments to the employers' trust fund, as provided for under	5569
Chapter 3309. of the Revised Code, or fails to pay any penalty	5570
imposed under section 3309.571 of the Revised Code the secretary	5571
of the school employees retirement system may certify to the state	5572
superintendent of public instruction, monthly or at such times as	5573
is determined by the school employees retirement board, the amount	5574
due from such employer, and the superintendent shall deduct from	5575
the amount allocated to the employer under section 3314.08 or	5576
3326.33 or Chapter 3317. of the Revised Code, as applicable, the	5577
entire amounts due to the system from the employer upon the	5578
certification to the superintendent by the secretary of the school	5579
employees retirement system.	5580

(D) The superintendent shall certify to the director of	5581
budget and management the amounts thus due the system for payment.	5582

Sec. 3309.55. Each employer shall on the first day of each	5583
calendar month, or at such ~~less frequent~~ intervals as the school	5584
employees retirement board approves, notify the board of ~~the~~	5585
~~employment of new employees,~~ removals,and withdrawals~~, and~~	5586
~~changes in compensation~~ of employees that have occurred during the	5587
month preceding or the period since the period covered by the last	5588
notification. ~~At least once a year each employer shall submit to~~	5589
~~the board a complete listing of all employees not contributing to~~	5590
~~the school employees retirement system.~~ Each employer shall keep	5591
such records and shall furnish such information and assistance to	5592
the school employees retirement board as it requires in the	5593
discharge of its duties.	5594

Sec. 3309.56. Each employer shall cause to be deducted, on	5595
each payroll of a contributor for each payroll period, the	5596
contribution payable by such contributor. ~~Each employer shall~~	5597
~~certify to the treasurer of said employer on each payroll a~~	5598
~~statement as voucher for the amount so deducted and for the amount~~	5599
~~of the contribution payable by the employer.~~ Each employer shall	5600
send a ~~duplicate of such statement to the secretary of~~report that	5601
lists such contributions deducted by contributor to the school	5602
employees retirement system at such time and in such manner as	5603
required by the school employees retirement board.	5604

Sec. 3309.57. ~~The treasurer of each~~Each employer ~~on receipt~~	5605
~~from the employer of the voucher for deductions from the~~	5606
~~compensation of employees and for the contributions of the~~	5607
~~employer~~ shall transmit monthly or at such times as the school	5608
employees retirement board designates the ~~amounts specified in~~	5609
~~such voucher to the secretary of the board~~contributions required	5610
under this chapter. The ~~secretary of the board~~school employees	5611
retirement system after making a record of all such receipts shall	5612
pay them to the treasurer of state for use according to this	5613
chapter.	5614

Sec. 3309.571. The school employees retirement system shall	5615
impose the following penalties, which may be collected in the same	5616
manner as described in division (B) of section 3309.51 of the	5617
Revised Code:	5618

(A) For a failure to transmit contributions withheld from	5619
employees not later than the date specified under rules adopted by	5620
the school employees retirement board, one hundred dollars per day	5621
for each day the employer fails to transmit the contributions;	5622

(B) For a failure to transmit any amount due the employer's	5623
trust fund not later than the date specified under rules adopted	5624
by the board, one hundred dollars per day for each day the	5625
employer fails to transmit the amounts;	5626

(C) Except for a statement required by section 3309.28 of the	5627
Revised Code, for a failure to submit~~, complete, or correct any~~a	5628
payroll ~~information~~report or other report required under this	5629
chapter not later than the date specified under rules adopted by	5630
the board, one hundred dollars per day for each day the employer	5631
fails to submit~~, complete, or correct~~ the ~~information or~~ report,	5632
except that the penalty shall not exceed one thousand five hundred	5633
dollars;	5634

(D) For a failure to submit a record in the form of a	5635
statement required by section 3309.28 of the Revised Code, fifty	5636
dollars per record for each month the record is not filed, except	5637
that the penalty shall not exceed three hundred dollars.	5638

Sec. 3309.691. The school employees retirement board ~~shall~~	5639
may establish a program under which members of the retirement	5640
system, employers on behalf of members, and persons receiving	5641
service, disability, or survivor benefits are permitted to	5642
participate in contracts for long-term health care insurance.	5643
Participation may include dependents and family members. If a	5644
participant in a contract for long-term care insurance leaves	5645
employment, the participant and the participant's dependents and	5646
family members may, at their election, continue to participate in	5647
a program established under this section in the same manner as if	5648
the participant had not left employment, except that no part of	5649
the cost of the insurance shall be paid by the participant's	5650
former employer.	5651

Such program may be established independently or jointly with	5652
one or more of the other retirement systems. For purposes of this	5653
section, "retirement systems" has the same meaning as in division	5654
(A) of section 145.581 of the Revised Code.	5655

The board may enter into an agreement with insurance	5656
companies, health insuring corporations, or government agencies	5657
authorized to do business in the state for issuance of a long-term	5658
care insurance policy or contract. However, prior to entering into	5659
such an agreement with an insurance company or health insuring	5660
corporation, the board shall request the superintendent of	5661
insurance to certify the financial condition of the company or	5662
corporation. The board shall not enter into the agreement if,	5663
according to that certification, the company or corporation is	5664
insolvent, is determined by the superintendent to be potentially	5665
unable to fulfill its contractual obligations, or is placed under	5666
an order of rehabilitation or conservation by a court of competent	5667
jurisdiction or under an order of supervision by the	5668
superintendent.	5669

The board ~~shall~~may adopt rules in accordance with section	5670
111.15 of the Revised Code governing the program. ~~The~~Any rules	5671
adopted by the board shall establish methods of payment for	5672
participation under this section, which may include establishment	5673
of a payroll deduction plan under section 3309.27 of the Revised	5674
Code, deduction of the full premium charged from a person's	5675
service, disability, or survivor benefit, or any other method of	5676
payment considered appropriate by the board. If the program is	5677
established jointly with one or more of the other retirement	5678
systems, the rules also shall establish the terms and conditions	5679
of such joint participation.	5680

Sec. 3309.82. (A) Except as provided in division (B) of this	5681
section, sections 3309.02, 3309.021, and 3309.022 and sections	5682
3309.18 to 3309.70 of the Revised Code do not apply to a plan	5683
established under section 3309.81 of the Revised Code, except that	5684
a plan may incorporate provisions of those sections as specified	5685
in the plan document.	5686

(B) The following sections of Chapter 3309. of the Revised	5687
Code apply to a plan established under section 3309.81 of the	5688
Revised Code: sections 3309.19, 3309.21, 3309.22, 3309.23,	5689
3309.24, 3309.25, 3309.251, 3309.252, 3309.253, 3309.28, 3309.29,	5690
3309.341, 3309.3712, 3309.47, 3309.471, 3309.49, 3309.51, ~~3309.53,~~	5691
~~3309.54,~~ 3309.55, 3309.56, 3309.57, 3309.571, 3309.58, 3309.59,	5692
3309.60, 3309.61, 3309.62, 3309.66, 3309.661, 3309.67, 3309.672,	5693
3309.673, 3309.68, and 3309.70 of the Revised Code.	5694

Sec. 4113.75. (A) As used in this section:

5695

(1) "Employee" and "employer" have the same meanings as in	5696
section 4113.51 of the Revised Code except that "employer" does	5697
not include the state, any municipal corporation, county,	5698
township, school district, or other political subdivision, or any	5699
agency or instrumentality of any of those entities.	5700

(2) "Employee retirement plan" means an employee retirement	5701
plan described in section 401(k) or 403(b) of the Internal Revenue	5702
Code or a payroll deduction individual retirement account plan	5703
described in section 408 or 408A of the Internal Revenue Code.	5704

(3) "Internal Revenue Code" means the "Internal Revenue Code	5705
of 1986," 100 Stat. 2085, 26 U.S.C. 1 et seq., as amended.	5706

(B)(1) Notwithstanding section 4113.15 of the Revised Code,	5707
an employer may create and implement a program for automatically	5708
withholding a specified percentage of employees' wages to be	5709
contributed on behalf of the employees to an employee retirement	5710
plan. The program shall allow an employee to affirmatively elect	5711
not to participate in the program and not have wages withheld	5712
under the program.	5713

(2) The employer shall provide each participating employee	5714
with all of the following:	5715

(a) Notice of the percentage of the employee's wages that	5716
will be withheld and contributed on behalf of the employee to an	5717
employee retirement plan unless the employee affirmatively elects	5718
not to participate in the plan;	5719

(b) At least one opportunity each calendar quarter to select	5720
investments for the employee's contributions between investment	5721
alternatives available under the plan;	5722

(c) A description of every investment alternative available	5723
for employee investment direction under the plan;	5724

(d) Notice of the default investment decisions that will be	5725
made in the absence of the employee's direction;	5726

(e) A brief description of available procedures that allow an	5727
employee to change investments;	5728

(f) A report, at least once a year, of the actual default	5729
investments made of contributions attributable to the employee.	5730

(3) An employer that creates or implements a program	5731
described in division (B) of this section shall provide its	5732
participating employees with reasonable opportunities to	5733
affirmatively elect not to participate in the program and not have	5734
wages withheld under the program. An affirmative election not to	5735
participate in a program shall be effective as soon after the	5736
employer receives the election as is administratively feasible.	5737

Sec. 5505.03. (A) The funds created by this section are the	5738
"employees' savings fund," "employer's accumulation fund,"	5739
"pension reserve fund," "survivors' benefit fund," "income fund,"	5740
and "expense fund." When reference is made to any of such funds,	5741
such reference is made to each as a separate legal entity;	5742
provided that the moneys in the funds may be intermingled for	5743
deposit and investment purposes.	5744

(B) The employees' savings fund is the fund in which shall be	5745
accumulated the contributions deducted from the salaries of	5746
members, except as provided in division (B)(1)(b) of section	5747
5505.54 of the Revised Code. Any refunds of accumulated	5748
contributions, as provided in the plan, shall be paid from such	5749
fund. Upon a member's retirement, the accumulated contributions	5750
standing to the member's credit in the fund shall be transferred	5751
to the pension reserve fund ~~if the member's retirement occurs on~~	5752
~~or after January 1, 1966, or to the employer's accumulation fund~~	5753
~~if the member's retirement occurred prior to January 1, 1966~~. If a	5754
pension is payable on account of the death of a member, the	5755
accumulated contributions standing to the member's credit in the	5756
employees' savings fund shall be transferred to the survivors'	5757
benefit fund ~~if the member's death occurs after January 1, 1966,~~	5758
~~or to the employer's accumulation fund if the member's death~~	5759
~~occurs prior to January 1, 1966~~.	5760

(C)~~(1)~~ The employer's accumulation fund is the fund in which	5761
shall be accumulated the state's contribution to the state highway	5762
patrol retirement system and the amounts contributed under	5763
division (B)(1)(b) of section 5505.54 of the Revised Code. Upon a	5764
member's retirement ~~after January 1, 1966,~~ the difference between	5765
the member's pension reserve and the member's accumulated	5766
contributions shall be transferred to the pension reserve fund. If	5767
a pension is payable on account of a member's death occurring	5768
~~after January 1, 1966~~, the difference between the pension reserve	5769
for that pension and the member's accumulated contributions shall	5770
be transferred to the survivors' benefit fund.	5771

~~(2) All pensions allowed and payable prior to January 1,~~	5772
~~1966, shall be continued according to the provisions of the plan~~	5773
~~in force the day preceding January 1, 1966, unless otherwise~~	5774
~~provided for in this chapter and shall be paid from the employer's~~	5775
~~accumulation fund.~~	5776

(D) The pension reserve fund is the fund from which shall be	5777
paid all pensions on account of members ~~who retire on or after~~	5778
~~January 1, 1966~~. If a disability retirant returns to the employ of	5779
the state highway patrol, the disability retirant's pension	5780
reserve at that time shall be transferred to the employees'	5781
savings fund and the employer's accumulation fund in the same	5782
proportion as the pension reserve was originally transferred to	5783
the pension reserve fund.	5784

(E) The survivors' benefit fund is the fund from which shall	5785
be paid all pensions, payable under section 5505.17 of the Revised	5786
Code~~, on account of members who die on or after January 1, 1966~~.	5787

(F)(1) The income fund is the fund to which shall be credited	5788
all interest, dividends, distributions, and other income derived	5789
from deposits and investments of moneys of the retirement system,	5790
all gifts and bequests to the system, all transfers from the	5791
employees' savings fund because of lack of claimant, and any other	5792
moneys the disposition of which is not otherwise provided for in	5793
the plan.	5794

(2) If the balance in the income fund exceeds the	5795
requirements of the fund, the state highway patrol retirement	5796
board may transfer amounts from the income fund to meet special	5797
requirements of the various other funds of the retirement system.	5798

(G) The expense fund is the fund from which the expense of	5799
the administration of this chapter shall be paid, exclusive of	5800
amounts payable as retirement allowances and as other benefits.	5801
The state highway patrol retirement board shall estimate annually	5802
the amount to be provided in the expense fund and such amount	5803
shall be transferred from the income fund. If such amount is	5804
insufficient during any year, the board is authorized to transfer	5805
the amount of such insufficiency from the income fund.	5806

Sec. 5505.04. (A)(1) The general administration and	5807
management of the state highway patrol retirement system and the	5808
making effective of this chapter are hereby vested in the state	5809
highway patrol retirement board. The board may sue and be sued,	5810
plead and be impleaded, contract and be contracted with, and do	5811
all things necessary to carry out this chapter.	5812

The board shall consist of the following members:

5813

(a) The superintendent of the state highway patrol;

5814

(b) Two retirant members who reside in this state;

5815

5816

(d) One member, known as the treasurer of state's investment	5817
designee, who shall be appointed by the treasurer of state for a	5818
term of four years and who shall have the following	5819
qualifications:	5820

(i) The member is a resident of this state.

5821

(ii) Within the three years immediately preceding the	5822
appointment, the member has not been employed by the public	5823
employees retirement system, police and fire pension fund, state	5824
teachers retirement system, school employees retirement system, or	5825
state highway patrol retirement system or by any person,	5826
partnership, or corporation that has provided to one of those	5827
retirement systems services of a financial or investment nature,	5828
including the management, analysis, supervision, or investment of	5829
assets.	5830

(iii) The member has direct experience in the management,	5831
analysis, supervision, or investment of assets.	5832

(iv) The member is not currently employed by the state or a	5833
political subdivision of the state.	5834

(e) Two investment expert members, who shall be appointed to	5835
four-year terms. One investment expert member shall be appointed	5836
by the governor, and one investment expert member shall be jointly	5837
appointed by the speaker of the house of representatives and the	5838
president of the senate. Each investment expert member shall have	5839
the following qualifications:	5840

(i) Each investment expert member shall be a resident of this	5841
state.	5842

(ii) Within the three years immediately preceding the	5843
appointment, each investment expert member shall not have been	5844
employed by the public employees retirement system, police and	5845
fire pension fund, state teachers retirement system, school	5846
employees retirement system, or state highway patrol retirement	5847
system or by any person, partnership, or corporation that has	5848
provided to one of those retirement systems services of a	5849
financial or investment nature, including the management,	5850
analysis, supervision, or investment of assets.	5851

(iii) Each investment expert member shall have direct	5852
experience in the management, analysis, supervision, or investment	5853
of assets.	5854

(2) The board shall annually elect a chairperson and	5855
vice-chairperson from among its members. The vice-chairperson	5856
shall act as chairperson in the absence of the chairperson. A	5857
majority of the members of the board shall constitute a quorum and	5858
any action taken shall be approved by a majority of the members of	5859
the board. The board shall meet not less than once each year, upon	5860
sufficient notice to the members. All meetings of the board shall	5861
be open to the public except executive sessions as set forth in	5862
division (G) of section 121.22 of the Revised Code, and any	5863
portions of any sessions discussing medical records or the degree	5864
of disability of a member excluded from public inspection by this	5865
section.	5866

(3) Any ~~investment expert~~ member appointed ~~to fill a vacancy~~	5867
~~occurring prior to the expiration of the term for which the~~	5868
~~member's predecessor was appointed holds~~under this section shall	5869
hold office until the end of ~~such term. The member continues in~~	5870
~~office subsequent to the expiration date of~~ the member's term	5871
~~until~~or, if later, the date the member's successor takes office,	5872
~~or until a period of sixty days has elapsed, whichever occurs~~	5873
~~first~~.	5874

(B) The attorney general shall prescribe procedures for the	5875
adoption of rules authorized under this chapter, consistent with	5876
the provision of section 111.15 of the Revised Code under which	5877
all rules shall be filed in order to be effective. Such procedures	5878
shall establish methods by which notice of proposed rules are	5879
given to interested parties and rules adopted by the board	5880
published and otherwise made available. When it files a rule with	5881
the joint committee on agency rule review pursuant to section	5882
111.15 of the Revised Code, the board shall submit to the Ohio	5883
retirement study council a copy of the full text of the rule, and	5884
if applicable, a copy of the rule summary and fiscal analysis	5885
required by division (B) of section 127.18 of the Revised Code.	5886

(C)(1) As used in this division, "personal history record"	5887
means information maintained by the board on an individual who is	5888
a member, former member, retirant, or beneficiary that includes	5889
the address, electronic mail address, telephone number, social	5890
security number, record of contributions, correspondence with the	5891
system, and other information the board determines to be	5892
confidential.	5893

(2) The records of the board shall be open to public	5894
inspection and may be made available in printed or electronic	5895
format, except for the following which shall be excluded: the	5896
member's, former member's, retirant's, or beneficiary's personal	5897
history record and the amount of a monthly allowance or benefit	5898
paid to a retirant, beneficiary, or survivor, except with the	5899
written authorization of the individual concerned.	5900

(D) All medical reports and recommendations are privileged	5901
except as follows:	5902

(1) Copies of such medical reports or recommendations shall	5903
be made available to the individual's personal physician,	5904
attorney, or authorized agent upon written release received from	5905
such individual or such individual's agent, or when necessary for	5906
the proper administration of the fund to the board-assigned	5907
physician.	5908

(2) Documentation required by section 2929.193 of the Revised	5909
Code shall be provided to a court holding a hearing under that	5910
section.	5911

(E) Notwithstanding the exceptions to public inspection in	5912
division (C)(2) of this section, the board may furnish the	5913
following information:	5914

(1) If a member, former member, or retirant is subject to an	5915
order issued under section 2907.15 of the Revised Code or an order	5916
issued under division (A) or (B) of section 2929.192 of the	5917
Revised Code or is convicted of or pleads guilty to a violation of	5918
section 2921.41 of the Revised Code, on written request of a	5919
prosecutor as defined in section 2935.01 of the Revised Code, the	5920
board shall furnish to the prosecutor the information requested	5921
from the individual's personal history record.	5922

(2) Pursuant to a court order issued under Chapters 3119.,	5923
3121., and 3123. of the Revised Code, the board shall furnish to a	5924
court or child support enforcement agency the information required	5925
under those chapters.	5926

(3) At the written request of any nonprofit organization or	5927
association providing services to retirement system members,	5928
retirants, or beneficiaries, the board shall provide to the	5929
organization or association a list of the names and addresses of	5930
members, former members, retirants, or beneficiaries if the	5931
organization or association agrees to use such information solely	5932
in accordance with its stated purpose of providing services to	5933
such individuals and not for the benefit of other persons,	5934
organizations, or associations. The costs of compiling, copying,	5935
and mailing the list shall be paid by such entity.	5936

(4) Within fourteen days after receiving from the director of	5937
job and family services a list of the names and social security	5938
numbers of recipients of public assistance pursuant to section	5939
5101.181 of the Revised Code, the board shall inform the auditor	5940
of state of the name, current or most recent employer address, and	5941
social security number of each member whose name and social	5942
security number are the same as those of a person whose name or	5943
social security number was submitted by the director. The board	5944
and its employees, except for purposes of furnishing the auditor	5945
of state with information required by this section, shall preserve	5946
the confidentiality of recipients of public assistance in	5947
compliance with section 5101.181 of the Revised Code.	5948

(5) The system shall comply with orders issued under section	5949
3105.87 of the Revised Code.	5950

On the written request of an alternate payee, as defined in	5951
section 3105.80 of the Revised Code, the system shall furnish to	5952
the alternate payee information on the amount and status of any	5953
amounts payable to the alternate payee under an order issued under	5954
section 3105.171 or 3105.65 of the Revised Code.	5955

(6) At the request of any person, the board shall make	5956
available to the person copies of all documents, including	5957
resumes, in the board's possession regarding filling a vacancy of	5958
an employee member or retirant member of the board. The person who	5959
made the request shall pay the cost of compiling, copying, and	5960
mailing the documents. The information described in this division	5961
is a public record.	5962

(7) The system shall provide the notice required by section	5963
5505.263 of the Revised Code to the prosecutor assigned to the	5964
case.	5965

(8) The system may provide information requested by the	5966
United States social security administration, United States	5967
centers for medicare and medicaid, public employees retirement	5968
system, Ohio public employees deferred compensation program, Ohio	5969
police and fire pension fund, school employees retirement system,	5970
state teachers retirement system, or Cincinnati retirement system.	5971

(F) A statement that contains information obtained from the	5972
system's records that is certified and signed by an officer of the	5973
retirement system and to which the system's official seal is	5974
affixed, or copies of the system's records to which the signature	5975
and seal are attached, shall be received as true copies of the	5976
system's records in any court or before any officer of this state.	5977

(G) The board may maintain records in printed or electronic	5978
format.	5979

Sec. 5505.112. Any action brought against the state highway	5980
patrol retirement system or the state highway patrol retirement	5981
board or its officers, employees, or board members in their	5982
official capacities shall be brought in the appropriate court in	5983
Franklin county, Ohio.	5984

Sec. 5505.12. (A) The state highway patrol retirement board	5985
shall have prepared annually by or under the supervision of an	5986
actuary an actuarial valuation of the pension assets, liabilities,	5987
and funding requirements of the state highway patrol retirement	5988
system as established pursuant to this chapter. The actuary shall	5989
complete the valuation in accordance with actuarial standards of	5990
practice promulgated by the actuarial standards board of the	5991
American academy of actuaries and prepare a report of the	5992
valuation. The report shall include all of the following:	5993

(1) A summary of the benefit provisions evaluated;

5994

(2) A summary of the census data and financial information	5995
used in the valuation;	5996

(3) A description of the actuarial assumptions, actuarial	5997
cost method, and asset valuation method used in the valuation,	5998
including a statement of the assumed rate of payroll growth and	5999
assumed rate of growth or decline in the number of members	6000
contributing to the retirement system;	6001

(4) A summary of findings that includes a statement of the	6002
actuarial accrued pension liabilities and unfunded actuarial	6003
accrued pension liabilities;	6004

(5) A schedule showing the effect of any changes in the	6005
benefit provisions, actuarial assumptions, or cost methods since	6006
the last annual actuarial valuation;	6007

(6) A statement of whether contributions to the retirement	6008
system are expected to be sufficient to satisfy the funding	6009
objectives established by the board.	6010

The board shall submit the report to the Ohio retirement	6011
study council, the director of budget and management, and the	6012
standing committees of the house of representatives and the senate	6013
with primary responsibility for retirement legislation immediately	6014
upon its availability and not later than the first day of ~~July~~	6015
September following the year for which the valuation was made.	6016

(B) At such times as the state highway patrol retirement	6017
board determines, and at least once in each five-year period ~~after~~	6018
~~January 1, 1966~~, the board shall have prepared by or under the	6019
supervision of an actuary an actuarial investigation of the	6020
mortality, service, and other experience of the members,	6021
retirants, and beneficiaries to update the actuarial assumptions	6022
used in the actuarial valuation required by division (A) of this	6023
section. The actuary shall prepare a report of the actuarial	6024
investigation. The report shall be prepared and any recommended	6025
changes in actuarial assumptions shall be made in accordance with	6026
the actuarial standards of practice promulgated by the actuarial	6027
standards board of the American academy of actuaries. The report	6028
shall include all of the following:	6029

(1) A summary of relevant decrement and economic assumption	6030
experience observed over the period of the investigation;	6031

(2) Recommended changes in actuarial assumptions to be used	6032
in subsequent actuarial valuations required by division (A) of	6033
this section;	6034

(3) A measurement of the financial effect of the recommended	6035
changes in actuarial assumptions;	6036

(4) If the investigation required by this division includes	6037
the investigation required by division (F) of this section, a	6038
report of the result of that investigation.	6039

The board shall submit the report to the Ohio retirement	6040
study council and the standing committees of the house of	6041
representatives and the senate with primary responsibility for	6042
retirement legislation not later than the first day of November	6043
following the last fiscal year of the period the report covers.	6044

(C) The board may at any time request the actuary to make any	6045
studies or actuarial valuations to determine the adequacy of the	6046
rates of contributions provided by section 5505.15 of the Revised	6047
Code.	6048

(D) The board shall have prepared by or under the supervision	6049
of an actuary an actuarial analysis of any introduced legislation	6050
expected to have a measurable financial impact on the retirement	6051
system. The actuarial analysis shall be completed in accordance	6052
with the actuarial standards of practice promulgated by the	6053
actuarial standards board of the American academy of actuaries.	6054
The actuary shall prepare a report of the actuarial analysis,	6055
which shall include all of the following:	6056

(1) A summary of the statutory changes that are being	6057
evaluated;	6058

(2) A description of or reference to the actuarial	6059
assumptions and actuarial cost method used in the report;	6060

(3) A description of the participant group or groups included	6061
in the report;	6062

(4) A statement of the financial impact of the legislation,	6063
including the resulting increase, if any, in the employer normal	6064
cost percentage; the increase, if any, in actuarial accrued	6065
liabilities; and the per cent of payroll that would be required to	6066
amortize the increase in actuarial accrued liabilities as a level	6067
per cent of covered payroll for all active members over a period	6068
not to exceed thirty years;	6069

(5) A statement of whether the scheduled contributions to the	6070
system after the proposed change is enacted are expected to be	6071
sufficient to satisfy the funding objectives established by the	6072
board.	6073

Not later than sixty days from the date of introduction of	6074
the legislation, the board shall submit a copy of the actuarial	6075
analysis to the legislative service commission, the standing	6076
committees of the house of representatives and the senate with	6077
primary responsibility for retirement legislation, and the Ohio	6078
retirement study council.	6079

(E) The board shall have prepared annually a report giving a	6080
full accounting of the revenues and costs relating to the	6081
provision of benefits under section 5505.28 of the Revised Code.	6082
The report shall be made ~~as of December 31, 1997, and~~not later	6083
than the thirty-first day of December of each year ~~thereafter~~. The	6084
report shall include the following:	6085

(1) A description of the statutory authority for the benefits	6086
provided;	6087

(2) A summary of the benefits;

6088

(3) A summary of the eligibility requirements for the	6089
benefits;	6090

(4) A statement of the number of participants eligible for	6091
the benefits;	6092

(5) A description of the accounting, asset valuation, and	6093
funding method used to provide the benefits;	6094

(6) A statement of the net assets available for the provision	6095
of the benefits as of the last day of the fiscal year;	6096

(7) A statement of any changes in the net assets available	6097
for the provision of benefits, including participant and employer	6098
contributions, net investment income, administrative expenses, and	6099
benefits provided to participants, as of the last day of the	6100
fiscal year;	6101

(8) For the last six consecutive fiscal years, a schedule of	6102
the net assets available for the benefits, the annual cost of	6103
benefits, administrative expenses incurred, and annual employer	6104
contributions allocated for the provision of benefits;	6105

(9) A description of any significant changes that affect the	6106
comparability of the report required under this division;	6107

(10) A statement of the amount paid under division (B) of	6108
section 5505.28 of the Revised Code.	6109

The board shall submit the report to the Ohio retirement	6110
study council, the director of budget and management, and the	6111
standing committees of the house of representatives and the senate	6112
with primary responsibility for retirement legislation immediately	6113
upon its availability and not later than the thirtieth day of June	6114
following the year for which the report was made.	6115

(F) At least once in each five-year period, the board shall	6116
have prepared by or under the supervision of an actuary an	6117
actuarial investigation of the deferred retirement option plan	6118
established under section 5505.50 of the Revised Code. The	6119
investigation shall include an examination of the financial	6120
impact, if any, on the retirement system of offering the plan to	6121
members.	6122

The actuary shall prepare a report of the actuarial	6123
investigation. The report shall include a determination of whether	6124
the plan, as established or modified, has a negative financial	6125
impact on the retirement system and, if so, recommendations on how	6126
to modify the plan to eliminate the negative financial impact. If	6127
the actuarial report indicates that the plan has a negative	6128
financial impact on the retirement system, the board shall modify	6129
the plan. If the board modifies the plan, the rights and	6130
obligations of members who have already elected to participate	6131
shall not be altered.	6132

The state's contributions to the employer accumulation fund	6133
shall not be increased to offset any negative financial impact of	6134
the deferred retirement option plan.	6135

The board may include the actuarial investigation required	6136
under this division as part of the actuarial investigation	6137
required under division (B) of this section. If the report of the	6138
actuarial investigation required by this division is not included	6139
in the report required by division (B) of this section, the board	6140
shall submit the report required by this division to the Ohio	6141
retirement study council and the standing committees of the house	6142
of representatives and the senate with primary responsibility for	6143
retirement legislation not later than the first day of November	6144
following the last fiscal year of the period the report covers.	6145

Sec. 5505.14. Subject to such rules and regulations as the	6146
state highway patrol retirement board adopts, the board shall	6147
issue, upon written request of the member, a certificate	6148
certifying to the aggregate length of all ~~his~~the member's prior	6149
service as a state highway patrol employee. ~~In no event shall~~	6150
~~service be computed prior to November 15, 1933.~~	6151

Sec. 5505.15. (A)~~(1)~~ A member of the state highway patrol	6152
retirement system shall contribute a certain percentage of the	6153
member's annual salary to the state highway patrol retirement	6154
fund. The percentage shall be not less than ten per cent of the	6155
member's annual salary but not more than fourteen per cent. The	6156
state highway patrol retirement board shall establish and may	6157
adjust the rate as it considers necessary to meet the amortization	6158
period requirement of section 5505.121 of the Revised Code. The	6159
board shall base its determination of the necessary rate on the	6160
annual actuarial valuation required by section 5505.12 of the	6161
Revised Code. The amount shall be deducted by the employer from	6162
the employee's salary for each payroll period.	6163

~~(2) The total contributions arising from deductions made~~	6164
~~prior to January 1, 1966, from the salaries of members in the~~	6165
~~employ of the state highway patrol and standing to the credit of~~	6166
~~their individual accounts in the retirement fund shall be~~	6167
~~transferred and credited to their respective individual accounts~~	6168
~~in the employees' savings fund.~~	6169

(B) The state shall annually pay into the employer	6170
accumulation fund, in monthly or less frequent installments as the	6171
state highway patrol retirement board requires, the employer	6172
contribution. The employer contribution shall be an amount equal	6173
to twenty-six and one-half per cent of the total salaries paid	6174
contributing members. If a member severs connection with the	6175
patrol or is dismissed, the employer contribution shall remain in	6176
the retirement system.	6177

The rate percentage of the employer contribution shall be	6178
certified by the board to the director of budget and management	6179
and shall not be lower than nine per cent of the total salaries	6180
paid contributing members and shall not exceed three times the	6181
rate percentage being deducted from the annual salaries of	6182
contributing members. The board shall prepare and submit to the	6183
director, on or before the first day of November of each	6184
even-numbered year, an estimate of the amounts necessary to pay	6185
the state's obligations accruing during the biennium beginning the	6186
first day of July of the following year. Such amounts shall be	6187
included in the budget and allocated as certified by the board.	6188

Sec. 5505.16. (A) A member of the state highway patrol	6189
retirement system who has ~~been in the service of the state highway~~	6190
~~patrol for a period of~~ twenty-five years ~~as an employee~~of service	6191
credit according to the rules adopted by the state highway patrol	6192
retirement board may make application for a pension which, if the	6193
member is under age forty-eight, shall be deferred until age	6194
forty-eight.	6195

(B) A member ~~of the retirement system~~ who has ~~been in the~~	6196
~~service of the highway patrol for a period of~~ twenty years ~~as an~~	6197
~~employee~~of service credit according to the rules adopted by the	6198
retirement board, may make application for a pension that, if the	6199
member is under age fifty-two, shall be deferred until age	6200
fifty-two, except that any such member who has attained twenty	6201
years of service may, on or after attaining age forty-eight but	6202
before attaining age fifty-two, elect to receive a reduced pension	6203
of the greater of nine hundred dollars or an amount computed as	6204
follows:	6205

Attained Age	Reduced Pension	6206
48	75% of normal service pension	6207
49	80% of normal service pension	6208
50	86% of normal service pension	6209
51	93% of normal service pension	6210

In the case of a member who elects to receive a reduced	6211
pension after attaining age forty-eight, the reduced pension is	6212
payable from the later of the date of the member's most recent	6213
birthday or the date the member becomes eligible to receive the	6214
reduced pension.	6215

A member who has elected to receive a reduced pension in	6216
accordance with the schedule provided in this division and has	6217
received a payment in connection therewith may not change the	6218
election.	6219

(C) Any member who attains the age of sixty years and has	6220
~~been in the service of the patrol for a period of~~ twenty years as	6221
~~a uniformed patrol officer~~of service credit according to the	6222
rules adopted by the board, shall file application for retirement	6223
with the board, and if the member refuses or neglects to do so,	6224
the board may deem the member's application to have been filed on	6225
the member's sixtieth birthday. The member may, upon written	6226
application approved by the superintendent of the state highway	6227
patrol, be continued in service after attaining the age of sixty	6228
years, but only until the member has accumulated twenty years of	6229
service credit in accordance with rules adopted by the board.	6230

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

6231

(a) "Service in the uniformed services" means the performance	6232
of duty on a voluntary or involuntary basis in a uniformed service	6233
under competent authority and includes active duty, active duty	6234
for training, initial active duty for training, inactive duty	6235
training, full-time national guard duty, and a period for which a	6236
person is absent from a position of employment for the purpose of	6237
an examination to determine the fitness of the person to perform	6238
any such duty.	6239

(b) "Uniformed services" of the United States includes both:

6240

(i) Army, navy, air force, marine corps, coast guard, or any	6241
reserve components of these services; auxiliary corps as	6242
established by congress; army nurse corps; navy nurse corps;	6243
service as red cross nurse with the army, navy, air force, or	6244
hospital service of the United States, or serving full-time with	6245
the American red cross in a combat zone; and such other service as	6246
is designated by congress as included therein;	6247

(ii) Personnel of the Ohio national guard, the Ohio military	6248
reserve, the Ohio naval militia, and the reserve components of the	6249
armed forces enumerated in division (D)(1) of this section who are	6250
called to active duty pursuant to an executive order issued by the	6251
president of the United States or an act of congress.	6252

(2) A member's total service credit may include periods not	6253
to exceed a total of seven years, while the member's employment	6254
with the state highway patrol is or was interrupted due to service	6255
in the uniformed services of the United States. Such military	6256
service shall be credited to the member towards total service as	6257
provided by this chapter and to the extent approved by the board,	6258
provided that:	6259

(a) The member is or was honorably discharged from service in	6260
the uniformed services;	6261

(b) The member is or was re-employed by the state highway	6262
patrol within ninety days immediately following termination of	6263
service in the uniformed services;	6264

(c) The member, subject to board rules, pays into the	6265
retirement system to the member's credit in the employees' savings	6266
fund an amount equal to the total contributions the member would	6267
have paid had state highway patrol employment not been so	6268
interrupted. Such payment may be made at any time prior to receipt	6269
of a pension.	6270

(3) If the member meets the requirements of division (D)(2)	6271
of this section, on receipt of contributions from the member, the	6272
state highway patrol shall be billed for the employer contribution	6273
that would have been paid pursuant to section 5505.15 of the	6274
Revised Code if the member had not rendered service in the	6275
uniformed services, subject to board rules.	6276

(4) If under division (D)(2)(c) of this section a member pays	6277
all or any portion of the contributions later than the lesser of	6278
five years or a period that is three times the member's period of	6279
service in the uniformed services beginning from the ~~later of the~~	6280
member's date of re-employment ~~or October 29, 1996~~, an amount	6281
equal to compound interest at a rate established by the board from	6282
the ~~later of the~~ member's date of re-employment ~~or October 29,~~	6283
~~1996,~~ to the date of payment shall be added to the remaining	6284
amount to be paid by the member to purchase service credit under	6285
this section.	6286

(5) Credit purchased by a member under division (D)(2) of	6287
this section shall be used to determine the member's eligibility	6288
for retirement under this section and section 5505.17 of the	6289
Revised Code.	6290

Sec. 5505.17. (A)(1) Upon retirement as provided in section	6291
5505.16 of the Revised Code, a member of the state highway patrol	6292
retirement system shall receive a life pension, without guaranty	6293
or refund, equal to the greater of one thousand fifty dollars or	6294
the sum of two and one-half per cent of the member's final average	6295
salary multiplied by the first twenty years of total service	6296
credit, plus two and one-quarter per cent of the member's final	6297
average salary multiplied by the number of years, and fraction of	6298
a year, of total service credit in excess of twenty years but not	6299
in excess of twenty-five years, plus two per cent of the member's	6300
final average salary multiplied by the number of years, and	6301
fraction of a year, in excess of twenty-five years; provided that	6302
in no case shall the pension exceed the lesser of seventy-nine and	6303
one-quarter per cent of the member's final average salary or the	6304
limit established by section 415 of the "Internal Revenue Code of	6305
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	6306

(2) A member with fifteen or more years of total service	6307
credit, who voluntarily resigns or who is discharged from the	6308
state highway patrol for any reason except retirement under this	6309
chapter, death, dishonesty, cowardice, intemperate habits, or	6310
conviction of a felony, shall receive a pension equal to one and	6311
one-half per cent of the member's final average salary multiplied	6312
by the number of years, and fraction of a year, of total service	6313
credit, except that the pension shall not exceed the limit	6314
established by section 415 of the "Internal Revenue Code of 1986,"	6315
100 Stat. 2085, 26 U.S.C.A. 415, as amended. The pension shall	6316
commence at the end of the calendar month in which the application	6317
is filed with the retirement board on or after the attainment of	6318
age fifty-five years by the applicant. A member who withdraws any	6319
part or all of the accumulated contributions from the employees'	6320
savings fund shall thereupon forfeit all rights to a pension	6321
provided for in this division.	6322

(3)(a) A surviving spouse of a deceased member shall receive	6323
a monthly pension, determined as follows, during the spouse's	6324
life:	6325

(i) If at the time of death the member was not eligible to be	6326
granted a pension payable under this section or to elect to	6327
receive a reduced pension payable under section 5505.16 of the	6328
Revised Code, nine hundred dollars;	6329

(ii) If at the time of death the member was eligible to be	6330
granted a pension payable under this section or to elect to	6331
receive a reduced pension payable under section 5505.16 of the	6332
Revised Code, the greater of nine hundred dollars or fifty per	6333
cent of the computed monthly pension the member would have	6334
received had the member been granted a pension under this section	6335
or elected to receive a reduced pension under section 5505.16 of	6336
the Revised Code.	6337

(b) The surviving spouse of a retirant shall receive a	6338
monthly pension, determined as follows, during the spouse's life:	6339

(i) If the retirant had applied for a pension payable under	6340
section 5505.16 of the Revised Code, but at the time of death had	6341
not attained the age of eligibility for the pension, nine hundred	6342
dollars;	6343

(ii) If the retirant had applied for a pension payable under	6344
section 5505.16 of the Revised Code and had attained the age of	6345
eligibility for the pension, but at the time of death had not	6346
elected to begin receiving the pension, the greater of nine	6347
hundred dollars or fifty per cent of the computed monthly pension	6348
the retirant was eligible to receive under section 5505.16 of the	6349
Revised Code;	6350

(iii) If the retirant was receiving a pension under this	6351
section or section 5505.16 or 5505.18 of the Revised Code, or,	6352
regardless of whether or not the retirant had actually received	6353
any payment, if the retirant was eligible to receive a pension	6354
under this section or section 5505.16 or 5505.18 of the Revised	6355
Code and had elected to begin receiving it, the greater of nine	6356
hundred dollars or fifty per cent of the computed monthly pension	6357
awarded the retirant.	6358

(c) If a monthly pension to a surviving spouse was terminated	6359
due to a remarriage, the surviving spouse is eligible to receive a	6360
monthly pension under division (A)(3) of this section effective	6361
the first day of the first month following June 5, 1996. The	6362
pension shall be computed under division (A)(3) of this section as	6363
of June 5, 1996. The pension payable to a person who is the	6364
surviving spouse of more than one state highway patrol retirement	6365
system member or retirant shall be computed on the basis of the	6366
service of the member or retirant to whom the surviving spouse was	6367
most recently married.	6368

(4) A pension of one hundred fifty dollars per month shall be	6369
paid by the system to or for the benefit of each child of a	6370
deceased member or retirant until the child attains the age of	6371
eighteen years or marries, whichever event occurs first, or until	6372
the child attains twenty-three years of age if the child is a	6373
student in and attending an institution of learning or training	6374
pursuant to a program designed to complete in each school year the	6375
equivalent of at least two-thirds of the full-time curriculum	6376
requirements of the institution, as determined by the retirement	6377
board. If any surviving child, regardless of age at the time of	6378
the member's or retirant's death, because of physical or mental	6379
disability, was totally dependent upon the deceased member or	6380
retirant for support at the time of death, a pension of one	6381
hundred fifty dollars per month shall be paid by the system to or	6382
for the benefit of the child during the child's natural life or	6383
until the child recovers from the disability.	6384

(5)(a) If a retirant died prior to June 6, 1988, and the	6385
surviving spouse was not married to the retirant while the	6386
retirant was in the active service of the patrol, the surviving	6387
spouse shall receive a pension of the greater of four hundred	6388
twenty-five dollars per month or fifty per cent of the computed	6389
monthly pension the retirant was receiving.	6390

(b) If the pension payable to a person receiving a pension	6391
under division (A)(5)(a) of this section on ~~the effective date of~~	6392
~~this amendment~~June30, 2000, is less than nine hundred dollars	6393
per month, the pension shall be increased to nine hundred dollars	6394
per month.	6395

(6)~~(a) If the pension payable to the surviving spouse of a~~	6396
~~deceased member or retirant under division (A)(3) of this section~~	6397
~~on the effective date of this amendment is less than nine hundred~~	6398
~~dollars per month, the pension shall be increased to nine hundred~~	6399
~~dollars per month.~~	6400

~~(b) The pension payable to a child of a deceased member or~~	6401
~~retirant who is receiving a pension under division (A)(4) of this~~	6402
~~section on June 5, 1996, shall be increased to one hundred fifty~~	6403
~~dollars per month.~~	6404

~~(7)~~ If a deceased member or retirant leaves no spouse or	6405
surviving children, but leaves two parents depending solely upon	6406
the deceased member or retirant for support, each parent shall be	6407
paid a monthly pension of one hundred fifty-four dollars. If in	6408
such case there is only one parent dependent solely upon the	6409
deceased member or retirant for support, such parent shall be paid	6410
a monthly pension of one hundred fifty-four dollars. Such pension	6411
shall be paid during the life of the surviving parents, or until	6412
dependency ceases, or until remarriage, whichever event occurs	6413
first.	6414

~~(8)~~(7) Any amount remaining as accumulated contributions at	6415
the time of death of a ~~member or~~ retirant who leaves no surviving	6416
spouse or dependent children or parents shall be paid to the	6417
estate of the ~~member or~~ retirant.	6418

~~(9)~~(8) The ~~increases~~increase provided for by ~~divisions~~	6419
division (A)(5) ~~and (A)(6)(a)~~ of this section shall be included in	6420
the calculation of the additional benefit paid under section	6421
5505.174 of the Revised Code.	6422

(B) The board shall adopt, and may amend or rescind, the	6423
necessary rules for the administration of this section and all	6424
decisions of the board shall be final. Any payment of a pension or	6425
benefit under this section is subject to the provisions of section	6426
5505.26 of the Revised Code.	6427

(C) A member's total service credit may include periods	6428
during which the member's employment with the state highway patrol	6429
is interrupted by a leave of absence, when requested by the	6430
governor, to accept employment with another agency of the state,	6431
provided that:	6432

(1) The member is reemployed by the state highway patrol	6433
within thirty days following termination of such other employment;	6434

(2) The member pays into the retirement system, to the credit	6435
of the employees' savings fund, an amount equal to the total	6436
contributions the member would have paid had the state highway	6437
patrol employment not been so interrupted. Such repayment shall	6438
begin within ninety days after the member's return to duty with	6439
the state highway patrol and be completed within a period equal to	6440
that of the leave of absence.	6441

(D) Service credits granted under division (C) of this	6442
section shall not include any duplications of credits for which a	6443
pension is payable by the public employees retirement system.	6444

Sec. 5505.174. (A) Eligibility for an increase under this	6445
section shall be determined as follows:	6446

(1) For a person whose pension effective date is prior to ~~the~~	6447
~~effective date of this amendment~~January 7, 2013, an "eligible	6448
person" is one of the following:	6449

(a) A person fifty-three years old or older who has been	6450
receiving a pension pursuant to division (B) of section 5505.16,	6451
division (A)(1) of section 5505.17, or division (B) of section	6452
5505.18 of the Revised Code for not less than twelve months;	6453

(b) A person who has been receiving a pension pursuant to	6454
division (B) of section 5505.18 of the Revised Code for not less	6455
than sixty months regardless of age;	6456

(c) A person who has been receiving a pension pursuant to	6457
section 5505.162 or division (A)(3), (4), (5), or (6)~~, or (7)~~ of	6458
section 5505.17 of the Revised Code for not less than twelve	6459
months regardless of age.	6460

(2) For a person whose pension effective date is on or after	6461
~~the effective date of this amendment~~January 7, 2013, an "eligible	6462
person" is a person who is sixty years old or older who has been	6463
receiving a pension pursuant to division (B) of section 5505.16,	6464
section 5505.162, division (A)(1), (3), (4), (5), or (6)~~, or (7)~~	6465
of section 5505.17, or division (B) of section 5505.18 of the	6466
Revised Code for not less than twelve months.	6467

(B)(1) Except as otherwise provided in this section, the	6468
state highway patrol retirement board shall annually increase	6469
pensions payable to eligible persons under this chapter in	6470
accordance with the following:	6471

(a) For each person sixty-five years of age or older who is	6472
receiving a pension not greater than one hundred eighty-five per	6473
cent of the federal poverty level for a family of two persons, as	6474
revised annually by the United States department of health and	6475
human services in accordance with section 673(2) of the "Omnibus	6476
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as	6477
amended, the board shall increase the pension by three per cent.	6478

(b) For persons other than those described in division	6479
(B)(1)(a) of this section, the board may increase the pension. Any	6480
increase shall be determined by the board based on compliance with	6481
the amortization period requirement of section 5505.121 of the	6482
Revised Code. The board's determination shall be based on the	6483
annual actuarial valuation required by section 5505.12 of the	6484
Revised Code. If the board determines that an increase may be	6485
made, the increase shall not exceed three per cent of the eligible	6486
person's pension.	6487

(2) No increase under this section shall exceed the limit	6488
established by section 415 of the "Internal Revenue Code of 1986,"	6489
100 Stat. 2085, 26 U.S.C. 415, as amended.	6490

(3) The date of the first increase paid under this section	6491
shall be the anniversary date for future increases. The pension	6492
used in the first calculation of an increase under this section	6493
shall remain as the base for all future increases paid under this	6494
section, unless a new base is established.	6495

(C) If payment of a portion of a benefit is made to an	6496
alternate payee under section 5505.261 of the Revised Code,	6497
increases under this section granted while the order is in effect	6498
shall be apportioned between the alternate payee and the eligible	6499
person in the same proportion that the amount being paid to the	6500
alternate payee bears to the amount paid to the eligible person.	6501

If payment of a portion of a benefit is made to one or more	6502
beneficiaries under "option 4" under division (A)(4) of section	6503
5505.162 of the Revised Code, each increase under this section	6504
granted while the plan of payment is in effect shall be divided	6505
among the designated beneficiaries in accordance with the portion	6506
each beneficiary has been allocated.	6507

(D) The board shall adopt, and may amend or rescind, any rule	6508
necessary to carry out this section.	6509

Sec. 5505.18. As used in this section, "member" does not	6510
include state highway patrol cadets attending training schools	6511
pursuant to section 5503.05 of the Revised Code.	6512

(A) Upon the application of a member of the state highway	6513
patrol retirement system, a person acting on behalf of a member,	6514
or the superintendent of the state highway patrol on behalf of a	6515
member, a member who becomes totally and permanently incapacitated	6516
for duty in the employ of the state highway patrol may be retired	6517
on disability by the board.	6518

The medical or psychological examination of a member who has	6519
applied for disability retirement shall be conducted by a	6520
competent health-care professional or professionals appointed by	6521
the board. The health-care professional or professionals shall	6522
file a written report with the board containing the following	6523
information:	6524

(1) Whether the member is totally incapacitated for duty in	6525
the employ of the patrol;	6526

(2) Whether the incapacity is expected to be permanent;

6527

(3) The cause of the member's incapacity.

6528

The board shall determine whether the member qualifies for	6529
disability retirement and its decision shall be final. The board	6530
shall consider the written medical or psychological report,	6531
opinions, statements, and other competent evidence in making its	6532
determination. If the incapacity is a result of heart disease or	6533
any cardiovascular disease of a chronic nature, which disease or	6534
any evidence of which was not revealed by the physical examination	6535
passed by the member on entry into the patrol, the member is	6536
presumed to have incurred the disease in the line of duty as a	6537
member of the patrol, unless the contrary is shown by competent	6538
evidence.	6539

(B)(1) Except as provided under division (A) of section	6540
5505.58 of the Revised Code, a member whose retirement on account	6541
of disability incurred in the line of duty shall receive the	6542
applicable pension provided for in section 5505.17 of the Revised	6543
Code, except that if the member has less than twenty-five years of	6544
contributing service, the member's service credit shall be deemed	6545
to be twenty-five years for the purpose of this provision. In no	6546
case shall the member's disability pension be less than sixty-one	6547
and one-quarter per cent or exceed the lesser of seventy-nine and	6548
one-quarter per cent of the member's final average salary or the	6549
limit established by section 415 of the "Internal Revenue Code of	6550
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.	6551

(2) Except as provided under division (B) of section 5505.58	6552
of the Revised Code, a member whose retirement on account of	6553
disability incurred not in the line of duty shall receive the	6554
applicable pension provided for in section 5505.17 of the Revised	6555
Code, except that if the member has less than twenty years of	6556
contributing service, the member's service credit shall be deemed	6557
to be twenty years for the purpose of this provision. In no case	6558
shall the member's disability pension exceed the lesser of	6559
seventy-nine and one-quarter per cent of the member's final	6560
average salary or the limit established by section 415 of the	6561
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415,	6562
as amended.	6563

(C) The state highway patrol retirement board shall adopt	6564
rules requiring a disability ~~pension recipient~~retirant, as a	6565
condition of continuing to receive a disability pension, to agree	6566
in writing to obtain any medical or psychological treatment	6567
recommended by the board's health-care professional and submit	6568
medical or psychological reports regarding the treatment. If the	6569
board determines that a disability ~~pension recipient~~retirant is	6570
not obtaining the medical or psychological treatment or the board	6571
does not receive a required medical or psychological report, the	6572
disability pension shall be suspended until the treatment is	6573
obtained, the report is received by the board, or the board's	6574
health-care professional certifies that the treatment is no longer	6575
helpful or advisable. Should the ~~recipient's~~retirant's failure to	6576
obtain treatment or submit a medical or psychological report	6577
continue for one year, the recipient's right to the disability	6578
~~benefit~~pension shall be terminated as of the effective date of	6579
the original suspension.	6580

(D) A ~~member placed on a disability pension~~disability	6581
retirant who has not attained the age of sixty years shall be	6582
subject to an annual medical or psychological re-examination by	6583
health-care professionals appointed by the board, except that the	6584
board may waive the re-examination if the board's health-care	6585
professionals certify that the ~~member's~~retirant's disability is	6586
ongoing. If any ~~member placed on a disability pension~~retirant	6587
refuses to submit to a medical or psychological re-examination,	6588
the ~~member's~~retirant's disability pension shall be suspended	6589
until the ~~member~~retirant withdraws the refusal. If the refusal	6590
continues for one year, all the ~~member's~~retirant's rights under	6591
and to the disability pension shall be terminated as of the	6592
effective date of the original suspension.	6593

(E) Each ~~recipient of a disability pension~~disability	6594
retirant who has not attained the age of sixty years shall file	6595
with the board an annual statement of earnings, current medical or	6596
psychological information on the recipient's condition, and any	6597
other information required in rules adopted by the board. The	6598
board may waive the requirement that a disability ~~benefit~~	6599
~~recipient~~retirant file an annual statement of earnings or current	6600
medical or psychological information if the board's health-care	6601
professional certifies that the ~~recipient's~~retirant's disability	6602
is ongoing.	6603

The board shall annually examine the information submitted by	6604
the ~~recipient~~retirant. If a ~~recipient~~retirant refuses to file	6605
the statement or information, the disability pension shall be	6606
suspended until the statement and information are filed. If the	6607
refusal continues for one year, the right to the pension shall be	6608
terminated as of the effective date of the original suspension.	6609

(F)(1) Except as provided in division (F)(2) of this section,	6610
a disability retirant ~~who has been on disability pension, and~~ who	6611
has been physically or psychologically examined and found no	6612
longer incapable of performing the retirant's duties, shall be	6613
restored to the rank the retirant held at the time the retirant	6614
was pensioned and all previous rights shall be restored, including	6615
the retirant's civil service status, and the disability pension	6616
shall terminate. Upon return to employment in the patrol, the	6617
retirant shall again become a contributing member of the	6618
retirement system, the total service at the time of the retirant's	6619
retirement shall be restored to the retirant's credit, and the	6620
retirant shall be given service credit for the period the retirant	6621
was in receipt of a disability pension. The provisions of division	6622
(F)(1) of this section shall be retroactive to September 5, 1941.	6623

(2) The state highway patrol is not required to take action	6624
under division (F)(1) of this section if the retirant was	6625
dismissed or resigned in lieu of dismissal for dishonesty,	6626
misfeasance, malfeasance, or conviction of a felony.	6627

(G) The board may adopt rules to carry out this section,	6628
including rules that specify the types of health-care	6629
professionals the board may appoint for the purpose of this	6630
section.	6631

Sec. 5505.33. (A) As used in this section:

6632

(1) "Long-term care insurance" has the same meaning as in	6633
section 3923.41 of the Revised Code.	6634

(2) "Retirement systems" has the same meaning as in division	6635
(A) of section 145.581 of the Revised Code.	6636

(B) The state highway patrol retirement board ~~shall~~may	6637
establish a program under which members of the retirement system,	6638
employers on behalf of members, and persons receiving service or	6639
disability pensions or survivor benefits are permitted to	6640
participate in contracts for long-term care insurance.	6641
Participation may include dependents and family members. If a	6642
participant in a contract for long-term care insurance leaves	6643
employment, the person and the person's dependents and family	6644
members may, at their election, continue to participate in a	6645
program established under this section in the same manner as if	6646
the person had not left employment, except that no part of the	6647
cost of the insurance shall be paid by the person's former	6648
employer. Such program may be established independently or jointly	6649
with one or more of the retirement systems.	6650

(C) The board may enter into an agreement with insurance	6651
companies, health insuring corporations, or government agencies	6652
authorized to do business in the state for issuance of a long-term	6653
care insurance policy or contract. However, prior to entering into	6654
such an agreement with an insurance company or health insuring	6655
corporation, the board shall request the superintendent of	6656
insurance to certify the financial condition of the company or	6657
corporation. The board shall not enter into the agreement if,	6658
according to that certification, the company or corporation is	6659
insolvent, is determined by the superintendent to be potentially	6660
unable to fulfill its contractual obligations, or is placed under	6661
an order of rehabilitation or conservation by a court of competent	6662
jurisdiction or under an order of supervision by the	6663
superintendent.	6664

(D) The board ~~shall~~may adopt rules in accordance with	6665
section 111.15 of the Revised Code governing the program. ~~The~~Any	6666
rules adopted by the board shall establish methods of payment for	6667
participation under this section, which may include establishment	6668
of a payroll deduction plan under section 5505.203 of the Revised	6669
Code, deduction of the full premium charged from a person's	6670
service or disability pension or survivor benefit, or any other	6671
method of payment considered appropriate by the board. If the	6672
program is established jointly with one or more of the other	6673
retirement systems, the rules also shall establish the terms and	6674
conditions of such joint participation.	6675

Sec. 5505.34. If a person ~~who is a disability benefit~~	6676
~~recipient or an alternate payee, as defined in section 3105.80 of~~	6677
~~the Revised Code,~~ is paid any benefit or payment by the state	6678
highway patrol retirement system to which the person is not	6679
entitled, the ~~person shall repay~~benefit or payment shall be	6680
repaid to the retirement system by the person. If the person fails	6681
to ~~repay~~make the repayment, the retirement system shall withhold	6682
the amount due from any benefit or payment due the person or the	6683
person's beneficiary or may collect the amount in any other manner	6684
provided by law.	6685

Sec. 5505.59. If a member dies while participating in the	6686
deferred retirement option plan, all of the following apply:	6687

(A) The amounts accrued to the member's benefit shall be paid	6688
to the member's surviving spouse or, if there is no surviving	6689
spouse, the beneficiary designated by the member on a form	6690
provided by the state highway patrol retirement system. If there	6691
is no surviving spouse or designated beneficiary, the amounts	6692
accrued to the member's benefit shall be paid to the member's	6693
estate.	6694

Any payment made under this division shall be made in the	6695
form of a single lump sum payment.	6696

(B) The surviving spouse and, if eligible, each surviving	6697
child, shall receive a pension as described in division	6698
(A)(3)(b)(iii) or (4) of section 5505.17 of the Revised Code,	6699
utilizing the pension amount calculated under section 5505.53 of	6700
the Revised Code.	6701

(C) If the member has no surviving spouse or surviving	6702
children, but has a parent or parents dependent on the member for	6703
support, the parent or parents shall receive a pension determined	6704
under division (A)~~(7)~~(6) of section 5505.17 of the Revised Code.	6705

(D) The lump sum payment described in section 5505.30 of the	6706
Revised Code shall be paid to the member's surviving spouse or, if	6707
there is no surviving spouse, to the member's estate.	6708

Section 2. That existing sections 145.012, 145.09, 145.191,	6709
145.194, 145.28, 145.29, 145.295, 145.297, 145.2914, 145.2915,	6710
145.31, 145.311, 145.33, 145.35, 145.362, 145.363, 145.37,	6711
145.384, 145.391, 145.40, 145.43, 145.431, 145.45, 145.46,	6712
145.563, 145.58, 145.581, 145.584, 145.63, 145.64, 145.82, 145.88,	6713
145.92, 145.95, 171.04, 311.01, 742.53, 742.63, 3307.04, 3307.35,	6714
3307.39, 3307.41, 3307.56, 3307.563, 3307.57, 3307.58, 3307.62,	6715
3307.66, 3307.70, 3307.71, 3307.711, 3307.73, 3309.01, 3309.11,	6716
3309.26, 3309.261, 3309.28, 3309.301, 3309.35, 3309.381, 3309.42,	6717
3309.45, 3309.49, 3309.51, 3309.55, 3309.56, 3309.57, 3309.571,	6718
3309.691, 3309.82, 5505.03, 5505.04, 5505.12, 5505.14, 5505.15,	6719
5505.16, 5505.17, 5505.174, 5505.18, 5505.33, 5505.34, and 5505.59	6720
and sections 145.402, 3307.561, and 3309.43 of the Revised Code	6721
are hereby repealed.	6722

Section 3. Notwithstanding sections 742.03 and 742.04 of the	6723
Revised Code, the individual who receives the second highest	6724
number of votes in the 2015 election for the two employee member	6725
firefighter positions on the Board of Trustees of the Ohio Police	6726
and Fire Pension Fund shall serve a term of three years.	6727

Section 4. Section 742.63 of the Revised Code is presented in	6728
this act as a composite of the section as amended by both Sub.	6729
S.B. 340 and Sub. S.B. 343 of the 129th General Assembly. The	6730
General Assembly, applying the principle stated in division (B) of	6731
section 1.52 of the Revised Code that amendments are to be	6732
harmonized if reasonably capable of simultaneous operation, finds	6733
that the composite is the resulting version of the section in	6734
effect prior to the effective date of the section as presented in	6735
this act.	6736