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|
As Passed by the House
123rd General Assembly
Regular Session
1999-2000 | Am. Sub. H. B. No. 15 |
REPRESENTATIVE S
MOTTLEY-TIBERI-SCHULER-ALLEN-JAMES-GRENDELL-
D.MILLER-OPFER-WILLAMOWSKI-LUCAS-GARDNER-TERWILLEGER-BRITTON-
THOMAS-SULZER-BENDER-OLMAN-EVANS-JOLIVETTE-VESPER-OGG-HOLLISTER-
PERRY-CORBIN-DISTEL-PETERSON-SMITH-ROBERTS-PATTON-BARNES-AUSTRIA-
JONES-VERICH-SALERNO
A BILL
To amend sections 145.294, 145.37, 3307.281,
3307.41, 3309.27, and 3309.35 and to enact
sections 145.311, 145.312, 3307.282,
3307.283, 3309.261, and 3309.262
of the Revised Code to allow a member of the Public
Employees Retirement System, School Employees Retirement System,
or State Teachers Retirement System to restore by payroll
deduction service credit for certain prior service covered by one of the other
systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.294, 145.37, 3307.281,
3307.41, 3309.27, and 3309.35 be amended
and sections 145.311, 145.312, 3307.282,
3307.283, 3309.261, and 3309.262
of the Revised Code be enacted to read as follows:
Sec. 145.294. (A) The public employees retirement board
may establish by rule a payroll deduction plan for payment
of the
cost of restoring service credit under section 145.31 OR
145.311 of the
Revised Code or purchasing any service credit members of the
public employees retirement system are eligible to purchase under
this chapter. In addition to any other matter considered
relevant by the board, the rules shall specify all of the
following:
(1) The types of service credit that may be paid for
through payroll deduction, including the section of the Revised
Code that authorizes the purchase of each type of service credit
for which payment may be made by payroll deduction;
(2) The procedure to be followed by a member to inform his FOR
INFORMING THE
MEMBER'S
employer and the system that he THE MEMBER wishes to purchase
service credit
under this chapter through payroll deduction;
(3) The procedure to be followed by the system and
employers to determine for each request the amount to be
deducted, the number of deductions to be made, and the interval
at which deductions will be made. The rules may provide for a
minimum amount for each deduction or a maximum number of
deductions for the purchase of any type of credit.
(4) The procedure to be followed by employers in
transmitting amounts deducted from the salaries of their
employees to the system;
(5) The procedure to be followed by the system in
crediting service credit to members who choose to purchase it
through payroll deduction.
(B) If the board establishes a payroll deduction plan
under this section, it shall certify to the member's employer for
each member for whom deductions are to be made, the amount of
each deduction and the payrolls from which deductions are to be
made. The employer shall make the deductions as certified and
transmit the amounts deducted in accordance with the rules
established by the board under this section.
(C) Rules adopted under this section shall not affect any
right to purchase service credit conferred by any other section
of the Revised Code, including the right of a member under any
such section to purchase only part of the service credit he THE
MEMBER is
eligible to purchase.
(D) No payroll deduction made pursuant to this section may
exceed the amount of a member's net compensation after all other
deductions and withholdings required by law.
Sec. 145.311. (A) A MEMBER OF THE PUBLIC EMPLOYEES RETIREMENT
SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF CONTRIBUTING SERVICE
CREDIT IN THE SYSTEM, THE POLICE AND FIREMEN'S DISABILITY AND
PENSION FUND, SCHOOL EMPLOYEES RETIREMENT SYSTEM, STATE TEACHERS
RETIREMENT SYSTEM, OR STATE HIGHWAY PATROL RETIREMENT SYSTEM, AND
IS A FORMER MEMBER OF AND NO LONGER CONTRIBUTING TO THE SCHOOL
EMPLOYEES RETIREMENT SYSTEM OR STATE TEACHERS RETIREMENT SYSTEM
MAY RESTORE SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26 OF THE
REVISED CODE BY MAKING PAYMENTS PURSUANT TO THIS SECTION
THROUGH A PAYROLL DEDUCTION PLAN ESTABLISHED UNDER SECTION 145.294 of the Revised Code. A
MEMBER SEEKING TO RESTORE THIS SERVICE CREDIT SHALL
NOTIFY THE PUBLIC EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED
BY THE PUBLIC EMPLOYEES RETIREMENT BOARD. AFTER RECEIVING THE
NOTICE, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL REQUEST THAT
THE FORMER RETIREMENT SYSTEM CALCULATE UNDER SECTION 3307.283 OR
3309.262 OF THE REVISED CODE THE COST TO THE MEMBER TO
RESTORE
SERVICE CREDIT FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE FOR WHICH THE
MEMBER SEEKS TO RESTORE THE SERVICE CREDIT. THE AMOUNT
THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE COST OF RESTORING
THE SERVICE CREDIT, PLUS INTEREST DESCRIBED IN DIVISION (B) OF
THIS SECTION, IS THE COST TO THE MEMBER OF RESTORING THE SERVICE
CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER RETIREMENT
SYSTEM, THE PUBLIC EMPLOYEES RETIREMENT SYSTEM SHALL NOTIFY THE
MEMBER OF THE COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT RESTORED
UNDER SECTION 3307.28
OR 3309.26 OF THE REVISED CODE, A MEMBER
SHALL PAY TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM THE AMOUNT CERTIFIED BY
THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT A RATE
SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 3307.283 OR
3309.262 OF THE REVISED CODE FOR THE PERIOD DURING WHICH
DEDUCTIONS ARE MADE UNDER SECTION 145.294 OF THE REVISED
CODE.
(C) THE PUBLIC EMPLOYEES
RETIREMENT BOARD SHALL ANNUALLY NOTIFY THE FORMER RETIREMENT SYSTEM THAT A
PAYMENT TO RESTORE SERVICE CREDIT UNDER SECTION 3307.28 OR 3309.26
OF THE REVISED
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS
TRANSFERRED UNDER DIVISION (D) OF THIS SECTION, THE FORMER
RETIREMENT SYSTEM SHALL RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF
A YEAR FOR WHICH THE
PAYMENT WAS MADE.
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED CONTRIBUTIONS OR
AN AGE AND SERVICE RETIREMENT,
DISABILITY, OR SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309.
OF THE
REVISED CODE BY A MEMBER WHO MADE
PAYMENTS UNDER THIS SECTION TO RESTORE SERVICE CREDIT IN A FORMER RETIREMENT
SYSTEM, THE PUBLIC
EMPLOYEES RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT SYSTEM AN
AMOUNT EQUAL TO THE TOTAL
AMOUNT PAID BY THE MEMBER UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.
Sec. 145.312. AFTER RECEIVING A REQUEST FROM THE
STATE TEACHERS RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 3307.282
OR THE SCHOOL EMPLOYEES
RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 3309.261 OF THE
REVISED
CODE, THE PUBLIC EMPLOYEES
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING:
(A) CALCULATE AND CERTIFY TO THE REQUESTING
RETIREMENT SYSTEM THE COST TO A FORMER MEMBER
TO RESTORE SERVICE CREDIT UNDER SECTION 145.31 of the Revised Code
FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO
RESTORE
SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN AUTHORIZED
UNDER SECTION 145.294 OF THE REVISED CODE.
Sec. 145.37. (A) As used in this section:
(1) "State retirement system" means the public employees
retirement system, school employees retirement system, or state
teachers retirement system.
(2) "Total service credit" means all service credit earned
in the state retirement systems, except credit for service
subject to section 145.38 of the Revised Code. Total service
credit shall not exceed one year of credit for any twelve-month
period.
(3) In addition to the meaning given in division (N) of
section 145.01 of the Revised Code, "disability benefit" means
"disability benefit" as defined in sections 3307.01 and 3309.01
of the Revised Code.
(B) To coordinate and integrate membership in the state
retirement systems, the following provisions apply:
(1) At the option of a member, total contributions and
service credit in all state retirement systems, INCLUDING AMOUNTS
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 3309.261
of the Revised Code, shall be used in
determining the eligibility and total retirement or disability
benefit payable. When total contributions and service credit are
so combined, the following provisions apply:
(a) Age and service retirement or disability benefits are
effective on the first day of the month immediately following the
later of:
(i) The last day for which compensation was paid;
(ii) The attainment of minimum age or service credit
eligibility for benefits provided under this section.
(b) In determining eligibility for a disability benefit,
the medical examiner's report to the retirement board of any
state retirement system, showing that the member's disability
incapacitates him THE MEMBER for the performance of duty, may be
accepted by
the state retirement boards as sufficient for granting a
disability benefit.
(c) The state retirement system in which the member had
the greatest service credit, without adjustment, shall determine
and pay the total retirement or disability benefit. Where his THE
MEMBER'S
credit is equal in two or more state retirement systems, the
system having the largest total contributions of the member shall
determine and pay the total benefit.
(d) In determining the total credit to be used in
calculating a retirement or disability benefit, credit shall not
be reduced below that certified by the system or systems
transferring credit, except that such total combined service
credit shall not exceed one year of credit for any one "year" as
defined in the law of the system making the calculation.
(e) The state retirement system determining and paying a
retirement or disability benefit shall receive from the other
system or systems the member's refundable account at retirement
or the effective date of a disability benefit plus an equal
amount from the employer's accumulation fund.
(i) The annuity rates and mortality tables of the state
retirement system making the calculation and paying the benefit
shall be exclusively applicable.
(ii) Deposits made for the purpose of an additional
annuity, and including guaranteed interest, upon the request of
the member, shall be transferred to the state retirement system
paying the benefit. The return upon such deposits shall be that
offered by the state retirement system making the calculation and
paying the benefit.
(2) A former member receiving a retirement or disability
benefit under this section, who accepts employment amenable to
coverage in any state retirement system that participated in his THE
FORMER MEMBER'S
combined benefit, shall be subject to the applicable provisions
of law governing such re-employment. If the former member is
subject to section 3307.381 of the Revised Code and exceeds the
limits on re-employment established by that section, the state
retirement system paying a combined benefit shall terminate the
entire pension portion of the benefit for the period of
re-employment that exceeds the limit in that section. If a
former member should be paid any amount in a retirement benefit,
to which he THE FORMER MEMBER is not entitled under the
applicable provisions of
law governing such re-employment, such amount shall be recovered
by the state retirement system paying such benefit by utilizing
any recovery procedure available under the code provisions of the
state retirement system covering such re-employment.
(C) A PERS retirant or other system retirant, as defined
in section 145.38 of the Revised Code, is not eligible to receive
any benefit under this section for service subject to section
145.38 of the Revised Code.
Sec. 3307.281. (A) The state teachers retirement board
may establish by rule payroll deduction plans for payment
of the
following:
(1) The cost of restoring service credit under section
3307.28 OR 3307.282 of the Revised Code or purchasing any
service credit
members of the state teachers retirement system are eligible to
purchase under this chapter;
(2) Charges for participation in programs established
under section 3307.741 of the Revised Code.
(B) In addition to any other matter considered relevant by
the board, the rules adopted under this section shall specify all
of the following:
(1) The types of service credit that may be paid for
through payroll deduction, including the section of the Revised
Code that authorizes the purchase of each type of service credit
for which payment may be made by payroll deduction;
(2) The procedure to be followed by a member to inform his FOR
INFORMING THE
MEMBER'S
employer and the system that he THE MEMBER wishes to use payroll
deduction
to purchase service credit or pay for participation in programs
established under section 3307.741 of the Revised Code;
(3) The procedure to be followed by the system and
employers to determine for each request the amount to be
deducted, the number of deductions to be made, and the interval
at which deductions will be made. The rules may provide for a
minimum amount for each deduction. They may also provide for a
maximum number of deductions for the purchase of any type of
service credit.
(4) The procedure to be followed by employers in
transmitting amounts deducted from the compensation of their
employees to the system;
(5) The procedure to be followed by the system in
crediting service credit to members who choose to purchase it
through payroll deduction;
(6) The time period within which employers are required to
transmit amounts deducted from payrolls to the system.
(C)(1) If the board establishes a payroll deduction plan
under this section, it shall certify to the member's employer,
for each member for whom deductions are to be made, the amount of
each deduction and the payrolls from which deductions are to be
made. The employer shall make the deductions as certified and
transmit the amounts deducted in accordance with the rules
established by the board under this section.
(2) If an employer does not transmit amounts deducted from
the compensation of an employee to the system within the time
period specified in rules adopted under division (B)(6) of this
section, the employer shall pay interest on the deducted amount
compounded annually at a rate to be determined by the board from
the date the amount is deducted to the date it is transmitted to
the system.
(D) Rules adopted under this section shall not affect any
right to purchase service credit conferred by any other section
of the Revised Code, including the right of a member under any
such section to purchase only part of the service credit he THE
MEMBER is
eligible to purchase.
(E) No payroll deduction made pursuant to this section may
exceed the amount of a member's net compensation after all other
deductions and withholdings required by law.
(F) No payments made to the system under this section
shall affect any contribution required by section 3307.51 or
3307.53 of the Revised Code.
Sec. 3307.282. (A) A MEMBER OF THE STATE TEACHERS RETIREMENT
SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF CONTRIBUTING SERVICE CREDIT IN THE SYSTEM, THE POLICE AND FIREMEN'S DISABILITY AND
PENSION FUND, PUBLIC EMPLOYEES RETIREMENT SYSTEM, SCHOOL EMPLOYEES
RETIREMENT SYSTEM, OR STATE HIGHWAY PATROL RETIREMENT SYSTEM, AND
IS A FORMER MEMBER OF AND NO LONGER CONTRIBUTING TO THE PUBLIC
EMPLOYEES RETIREMENT SYSTEM OR SCHOOL EMPLOYEES RETIREMENT SYSTEM
MAY RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 OF THE
REVISED CODE BY MAKING PAYMENTS PURSUANT TO THIS SECTION
THROUGH A PAYROLL DEDUCTION PLAN ESTABLISHED UNDER SECTION 3307.281 of the Revised Code. A
MEMBER SEEKING TO RESTORE THIS SERVICE
CREDIT SHALL NOTIFY THE STATE TEACHERS RETIREMENT SYSTEM ON A FORM APPROVED BY
THE STATE TEACHERS RETIREMENT BOARD.
AFTER RECEIVING THE NOTICE, THE STATE TEACHERS RETIREMENT SYSTEM
SHALL REQUEST THAT THE FORMER RETIREMENT SYSTEM CALCULATE UNDER
SECTION 145.312 OR 3309.262 OF THE REVISED CODE THE COST TO
THE
MEMBER TO RESTORE SERVICE CREDIT FOR EACH YEAR OR PORTION OF A
YEAR OF SERVICE FOR WHICH THE MEMBER SEEKS TO RESTORE THE SERVICE
CREDIT. THE AMOUNT THE FORMER RETIREMENT SYSTEM CERTIFIES AS THE
COST OF RESTORING THE SERVICE CREDIT, PLUS INTEREST DESCRIBED IN
DIVISION (B) OF THIS SECTION, IS THE COST TO THE MEMBER OF
RESTORING THE SERVICE CREDIT. ON RECEIVING THE CERTIFICATION FROM THE FORMER
RETIREMENT SYSTEM,
THE STATE TEACHERS RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER OF THE
COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT RESTORED
UNDER SECTION 145.31 OR 3309.26 OF THE REVISED CODE, A
MEMBER
SHALL PAY TO THE STATE TEACHERS RETIREMENT SYSTEM THE AMOUNT CERTIFIED BY THE
FORMER RETIREMENT SYSTEM PLUS INTEREST AT A RATE
SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 145.312 OR
3309.262 OF THE REVISED CODE FOR THE PERIOD DURING WHICH
DEDUCTIONS ARE MADE UNDER SECTION 3307.281 OF THE REVISED
CODE.
(C) THE STATE TEACHERS RETIREMENT
BOARD SHALL ANNUALLY NOTIFY THE FORMER RETIREMENT SYSTEM THAT A PAYMENT TO
RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3309.26 OF THE
REVISED CODE HAS BEEN MADE. AT
THE TIME THE PAYMENT IS TRANSFERRED UNDER DIVISION (D) OF THIS
SECTION, THE FORMER RETIREMENT SYSTEM SHALL RESTORE THE SERVICE
CREDIT FOR THE YEAR OR PORTION OF A YEAR FOR WHICH THE PAYMENT WAS
MADE.
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED CONTRIBUTIONS OR
AN AGE AND SERVICE RETIREMENT,
DISABILITY, OR SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309.
OF THE
REVISED CODE BY A MEMBER WHO MADE
PAYMENTS UNDER THIS SECTION TO RESTORE SERVICE CREDIT IN A FORMER RETIREMENT
SYSTEM, THE STATE
TEACHERS RETIREMENT SYSTEM SHALL PAY TO THE FORMER RETIREMENT SYSTEM AN AMOUNT
EQUAL TO THE TOTAL
AMOUNT PAID BY THE MEMBER UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.
Sec. 3307.283. AFTER RECEIVING A REQUEST FROM THE
PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 145.311
OR THE SCHOOL EMPLOYEES
RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 3309.261 OF THE
REVISED
CODE, THE STATE TEACHERS
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING:
(A) CALCULATE AND CERTIFY TO THE REQUESTING
RETIREMENT SYSTEM THE COST TO A FORMER MEMBER
TO RESTORE SERVICE CREDIT UNDER SECTION 3307.28
of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO
RESTORE SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN AUTHORIZED
UNDER SECTION 3307.281 OF THE REVISED CODE.
Sec. 3307.41. To coordinate and integrate membership in
the state retirement systems, the following provisions apply:
(A) As used in this section:
(1) "Retirement systems" means the public employees
retirement system, the state teachers retirement system, and the
school employees retirement system.
(2) In addition to the meaning given in division (L) of
section 3307.01 of the Revised Code, "disability benefit" means
"disability benefit" as defined in sections 145.01 and 3309.01 of
the Revised Code.
(B) At the member's option, total contributions and
service credit in all retirement systems, INCLUDING AMOUNTS PAID TO
RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 3309.261
of the Revised Code, shall be used in
determining the eligibility for benefits. If total contributions
and service credit are combined, the following provisions apply:
(1) Service retirement or a disability benefit is
effective on the first day of the month next following the later
of:
(a) The last day for which compensation was paid;
(b) The attainment of minimum age or service credit for
benefits provided under this section.
(2) "Total service credit" includes the total credit in
all retirement systems except that such credit shall not exceed
one year for any period of twelve months.
(3) In determining eligibility for a disability benefit,
the medical examiner's report to the board of any retirement
system, showing that the member's disability incapacitates him THE
MEMBER
for the performance of duty, may be accepted as sufficient for
granting a disability benefit.
(4) The retirement system in which the member had the
greatest service credit, without adjustment, shall determine and
pay the total benefit. If his THE MEMBER'S credit is equal in
two or more
retirement systems, the system having the member's largest total
contributions shall determine and pay the total benefit.
(5) In determining the total credit to be used in
calculating a benefit, credit shall not be reduced below that
certified by the system or systems transferring credit, except
that such total combined service credit shall not exceed one year
of credit for any one "year" as defined in the statute governing
the system making the calculation.
(6) The retirement system determining and paying the
benefit shall receive from the other system or systems the
member's refundable account at retirement or the effective date
of a disability benefit plus an equal amount from the employers'
trust fund.
(a) The annuity rates and mortality tables of the
retirement system making the calculation and paying the benefit
shall be applicable.
(b) Deposits made for the purchase of additional income,
with guaranteed interest, upon the member's request, shall be
transferred to the retirement system paying the regular benefit.
The return upon such deposits shall be that offered by the
retirement system making the calculation and paying the regular
benefit.
(C) A person receiving a benefit under this section, who
accepts employment amenable to coverage in any retirement system
that participated in his THE PERSON'S combined benefit, shall be
subject to
the applicable provisions of law governing such re-employment. If the person
is subject to section 3307.381 of the Revised Code
and exceeds the limits on re-employment established by that
section, the retirement system paying a combined benefit shall
terminate the entire pension portion of the benefit for the
period of re-employment that exceeds the limit in that section.
If a retirant should be paid any amount to which he THE RETIRANT
is not
entitled under the applicable provisions of law governing such
re-employment, such amount shall be recouped by the retirement
system paying such benefit by utilizing any recovery procedure
available under the law of the retirement system covering such
re-employment.
Sec. 3309.261. (A) A MEMBER OF THE SCHOOL EMPLOYEES RETIREMENT
SYSTEM WHO HAS AT LEAST EIGHTEEN MONTHS OF CONTRIBUTING SERVICE CREDIT IN THE
SYSTEM, THE POLICE AND FIREMEN'S DISABILITY AND
PENSION FUND, PUBLIC EMPLOYEES RETIREMENT SYSTEM, STATE TEACHERS
RETIREMENT SYSTEM, OR STATE HIGHWAY PATROL RETIREMENT SYSTEM, AND
IS A FORMER MEMBER OF AND NO LONGER CONTRIBUTING TO THE PUBLIC
EMPLOYEES RETIREMENT SYSTEM OR STATE TEACHERS RETIREMENT SYSTEM
MAY RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28 OF THE
REVISED CODE BY MAKING PAYMENTS PURSUANT TO THIS SECTION
THROUGH A PAYROLL DEDUCTION PLAN ESTABLISHED UNDER SECTION 3309.27 of the Revised Code. A
MEMBER SEEKING TO RESTORE SERVICE
CREDIT SHALL NOTIFY THE SCHOOL EMPLOYEES RETIREMENT SYSTEM ON A FORM APPROVED
BY THE SCHOOL EMPLOYEES RETIREMENT
BOARD. AFTER RECEIVING THE NOTICE, THE SCHOOL EMPLOYEES
RETIREMENT SYSTEM SHALL REQUEST THAT THE FORMER RETIREMENT SYSTEM
CALCULATE UNDER SECTION 145.312 OR 3307.283 OF THE REVISED
CODE
THE COST TO THE MEMBER TO RESTORE SERVICE CREDIT FOR EACH YEAR OR PORTION OF A
YEAR OF SERVICE FOR WHICH THE MEMBER SEEKS TO RESTORE
THE SERVICE CREDIT. THE AMOUNT THE FORMER RETIREMENT SYSTEM
CERTIFIES AS THE COST OF RESTORING THE SERVICE CREDIT, PLUS
INTEREST DESCRIBED IN DIVISION (B) OF THIS SECTION, IS THE COST TO
THE MEMBER OF RESTORING THE SERVICE CREDIT. ON RECEIVING THE
CERTIFICATION FROM THE FORMER RETIREMENT SYSTEM, THE SCHOOL
EMPLOYEES RETIREMENT SYSTEM SHALL NOTIFY THE MEMBER OF THE COST.
(B) FOR EACH YEAR OR PORTION OF A YEAR OF SERVICE CREDIT RESTORED
UNDER SECTION 145.31 OR 3307.28 OF THE REVISED CODE, A
MEMBER
SHALL PAY TO THE SCHOOL EMPLOYEES RETIREMENT SYSTEM THE AMOUNT
CERTIFIED BY THE FORMER RETIREMENT SYSTEM PLUS INTEREST AT A RATE
SPECIFIED BY THE FORMER RETIREMENT SYSTEM UNDER SECTION 145.312 OR
3307.283 OF THE REVISED CODE FOR THE PERIOD DURING WHICH
DEDUCTIONS ARE MADE UNDER SECTION 3309.27 OF THE REVISED
CODE.
(C) THE SCHOOL EMPLOYEES
RETIREMENT BOARD SHALL ANNUALLY NOTIFY THE FORMER RETIREMENT SYSTEM THAT A
PAYMENT TO RESTORE SERVICE CREDIT UNDER SECTION 145.31 OR 3307.28
OF THE REVISED
CODE HAS BEEN MADE. AT THE TIME THE PAYMENT IS
TRANSFERRED UNDER DIVISION (D) OF THIS SECTION, THE FORMER
RETIREMENT SYSTEM SHALL RESTORE THE SERVICE CREDIT FOR THE YEAR OR PORTION OF
A YEAR FOR WHICH THE
PAYMENT WAS MADE.
(D) ON APPLICATION FOR A PAYMENT OF ACCUMULATED CONTRIBUTIONS OR
AN AGE AND SERVICE RETIREMENT,
DISABILITY, OR SURVIVOR BENEFIT UNDER CHAPTER 145., 3307., OR 3309.
OF THE
REVISED CODE BY A MEMBER WHO MADE
PAYMENTS UNDER THIS SECTION TO RESTORE SERVICE CREDIT IN A FORMER
RETIREMENT SYSTEM, THE SCHOOL EMPLOYEES RETIREMENT SYSTEM SHALL
PAY TO THE FORMER RETIREMENT SYSTEM AN AMOUNT EQUAL TO THE TOTAL
AMOUNT PAID BY THE MEMBER UNDER THIS SECTION.
(E) THE BOARD SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.
Sec. 3309.262. AFTER RECEIVING A REQUEST FROM THE
PUBLIC EMPLOYEES RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 145.311
OR THE STATE TEACHERS
RETIREMENT SYSTEM UNDER DIVISION
(A) OF SECTION 3307.282 OF THE
REVISED
CODE, THE SCHOOL EMPLOYEES
RETIREMENT SYSTEM SHALL DO BOTH OF THE FOLLOWING:
(A) CALCULATE AND CERTIFY TO THE REQUESTING
RETIREMENT SYSTEM THE COST TO A FORMER MEMBER
TO RESTORE SERVICE CREDIT UNDER SECTION 3309.26
of the Revised Code FOR EACH YEAR OR PORTION OF A YEAR FOR WHICH THE FORMER MEMBER SEEKS TO
PURCHASE SERVICE CREDIT UNDER THAT SECTION.
(B) INFORM THE REQUESTING RETIREMENT SYSTEM OF THE RATE OF
INTEREST CHARGED TO A MEMBER UNDER A PAYROLL DEDUCTION PLAN AUTHORIZED
UNDER SECTION 3309.27 OF THE REVISED CODE.
Sec. 3309.27. (A) The school employees retirement board
may establish by rule payroll deduction plans for payment
of the
following:
(1) The cost of restoring service credit under section
3309.26 OR 3309.261 of the Revised Code or purchasing any
service credit
members of the school employees retirement system are eligible to
purchase under this chapter;
(2) Charges for participation in programs established
under section 3309.691 of the Revised Code.
(B) In addition to any other matter considered relevant by
the board, the rules adopted under this section shall specify all
of the following:
(1) The types of service credit that may be paid for
through payroll deduction, including the section of the Revised
Code that authorizes the purchase of each type of service credit
for which payment may be made by payroll deduction;
(2) The procedure to be followed by a member to inform his FOR
INFORMING THE
MEMBER'S
employer and the system that he THE MEMBER wishes to use payroll
deduction
to purchase service credit or pay for participation in programs
established under section 3309.691 of the Revised Code;
(3) The procedure to be followed by the system and
employers to determine for each request the amount to be
deducted, the number of deductions to be made, and the interval
at which deductions will be made. The rules may provide for a
minimum amount for each deduction or a maximum number of
deductions for the purchase of any type of service credit.
(4) The procedure to be followed by employers in
transmitting amounts deducted from the compensation of their
employees to the system;
(5) The procedure to be followed by the system in
crediting service credit to members who choose to purchase it
through payroll deduction.
(C) If the board establishes a payroll deduction plan
under this section, it shall certify to the member's employer,
for each member for whom deductions are to be made, the amount of
each deduction and the payrolls from which deductions are to be
made. The employer shall make the deductions as certified and
transmit the amounts deducted in accordance with the rules
established by the board under this section.
(D) Rules adopted under this section shall not affect any
right to purchase service credit conferred by any other section
of the Revised Code, including the right of a member under any
such section to purchase only part of the service credit he THE
MEMBER is
eligible to purchase.
(E) No payroll deduction made pursuant to this section may
exceed the amount of a member's net compensation after all other
deductions and withholdings required by law.
Sec. 3309.35. (A) As used in this section:
(1) "State retirement system" means the public employees
retirement system, state teachers retirement system, or school
employees retirement system.
(2) "Total service credit" means all service credit earned
in all state retirement systems, except credit for service
subject to section 3309.341 of the Revised Code. Total service
credit shall not exceed one year of credit for any twelve-month
period.
(3) In addition to the meaning given in division (O) of
section 3309.01 of the Revised Code, "disability benefit" means
"disability benefit" as defined in sections 145.01 and 3307.01 of
the Revised Code.
(B) To coordinate and integrate membership in the state
retirement systems, the following provisions apply:
(1) At AT the option of a member, total contributions and
service credit in all state retirement systems, INCLUDING AMOUNTS
PAID TO RESTORE SERVICE CREDIT UNDER SECTIONS 145.311, 3307.282, AND 3309.261
of the Revised Code, shall be used in
determining the eligibility and total retirement or disability
benefit payable. When total contributions and service credit are
so combined, the following provisions apply:
(a)(1) Service and commuted service retirement or a
disability benefit is effective no sooner than the first day of
the month next following the last day of employment for which
compensation was paid. If the application is filed after that
date, the board may retire the member on the first day of the
month next following the last day of employment for which
compensation was paid.
(b)(2) In determining eligibility for a disability benefit,
the medical examiner's report to the retirement board of any
state retirement system, showing that the member's disability
incapacitates him THE MEMBER for the performance of duty, may be
accepted by
the state retirement boards as sufficient for granting a
disability benefit.
(c)(3) The state retirement system in which the member had
the greatest service credit, without adjustment, shall determine
and pay the total retirement or disability benefit. Where his THE
MEMBER'S
credit is equal in two or more state retirement systems, the
system having the largest total contributions of the member shall
determine and pay the total benefit.
(d)(4) In determining the total credit to be used in
calculating a retirement allowance or disability benefit, credit
shall not be reduced below that certified by the system or
systems transferring credit, except that such total combined
service credit shall not exceed one year of credit for any one
"year" as defined in the law of the system making the
calculation.
(e)(5) The state retirement system determining and paying a
retirement or disability benefit shall receive from the other
system or systems the member's refundable account at retirement
or the effective date of a disability benefit plus an equal
amount from the employers' trust fund.
(i)(a) The annuity rates and mortality tables of the state
retirement system making the calculation and paying the benefit
shall be exclusively applicable.
(ii)(b) Deposits made for the purchase of an additional
annuity, and including guaranteed interest, upon the request of
the member, shall be transferred to the state retirement system
paying the retirement or disability benefit. The return upon
such deposits shall be that offered by the state retirement
system making the calculation and paying the retirement or
disability benefit.
(C) A former member receiving a retirement or disability
benefit under this section, who accepts employment amenable to
coverage in any state retirement system that participated in his THE
MEMBER'S
combined benefit, shall be subject to the applicable provisions
of law governing such re-employment. If the former member is
subject to section 3307.381 of the Revised Code and exceeds the
limits on re-employment established by that section, the state
retirement system paying a combined benefit shall terminate the
entire pension portion of the benefit for the period of
re-employment that exceeds the limit in that section. If a
former member should be paid any amount in a retirement
allowance, to which he THE FORMER MEMBER is not entitled under
the applicable
provisions of law governing such re-employment, such amount shall
be recovered by the state retirement system paying such allowance
by utilizing any recovery procedure available under the code
provisions of the state retirement system covering such
re-employment.
(D) An SERS retirant or other system retirant, as defined
in section 3309.341 of the Revised Code, is not eligible to
receive any benefit under this section for service subject to
section 3309.341 of the Revised Code.
Section 2. That existing sections 145.294, 145.37, 3307.281, 3307.41, 3309.27,
and 3309.35 of the Revised Code are hereby repealed.
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