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Sub. H. B. No. 84As Re-referred to the Senate Ways and Means CommitteeAs Re-referred to the Senate Ways and Means Committee
124th General Assembly | Regular Session | 2001-2002 |
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REPRESENTATIVES Schmidt, Schuring, Schneider, Ogg, Barrett, Flowers, Driehaus, Peterson, Niehaus, Carmichael, Carano, Schaffer, Setzer, Metzger, Boccieri, Fessler, Grendell, Rhine, Webster, Krupinski, Clancy, Trakas, Jolivette, Blasdel, Cates, Reidelbach, Hughes, Sulzer, Hoops, Allen, Flannery, Collier, Beatty, G. Smith, Goodman, Latta, Hagan, Kearns, Patton, Wilson, D. Miller, Salerno, Stapleton, Womer Benjamin, R. Miller, Britton, Damschroder, Otterman, Lendrum, Sferra, Ford, Latell, Gilb, DePiero, Hartnett
A BILL
To amend sections 145.38 and 3305.08 of the Revised
Code and to
repeal Section 6 of Am. Sub. S.B. 144
of the 123rd
General Assembly, as subsequently
amended, to
prohibit an elected official from
receiving a
Public Employees Retirement System
pension while
earning a salary for the same public
office, to subject
employee contributions to a
higher education alternative
retirement plan to
certain local taxes, and to
declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.38 and 3305.08 of the Revised
Code be amended
to read as follows:
Sec. 145.38. (A) As used in this section and section
145.384 of the Revised Code: (1)
"PERS retirant" means a former member of the public
employees retirement system who is receiving one of the
following: (a) Age and service retirement benefits under section
145.32, 145.33, 145.331, 145.34, or 145.46 of the Revised Code; (b) Age and service retirement benefits paid by the public
employees retirement system under section 145.37 of the Revised
Code; (c) Any benefit paid by the system under a plan established
under
section 145.81 of the Revised Code. (2)
"Other system retirant" means both of the following: (a) A member or former member of the Ohio police and
fire
pension fund, state teachers retirement system,
school employees
retirement system, state highway patrol
retirement system, or
Cincinnati retirement system who is
receiving age and service or
commuted age and service retirement
benefits or a disability
benefit from a system of which the
person is a member or former
member; (b) A member or former member of the public employees
retirement system who is receiving age and service retirement
benefits or a disability benefit under section 145.37 of the
Revised Code paid by the school employees retirement system or
the
state teachers retirement system. (B)(1) Subject to this section, a PERS retirant or other
system retirant may be employed by a public employer. If so
employed, the PERS retirant or other system retirant shall
contribute to the public employees retirement system in
accordance
with section 145.47 of the Revised Code, and the
employer shall
make contributions in accordance with section
145.48 of the
Revised Code. (2) A public employer that employs a PERS retirant or
other
system retirant, or enters into a contract for services as
an
independent contractor with a PERS retirant
shall notify the
retirement board of the employment or contract not
later than the
end of the month in which the employment or contract
commences.
Any overpayment of benefits to a PERS retirant by the
retirement
system resulting from delay or failure of the employer
to give the
notice shall be repaid to the retirement system by
the employer. (3) On receipt of notice from a public employer that a
person who is an other system retirant has been employed, the
retirement system shall notify the retirement system of which the
other system retirant was a member of such employment. (4)(a) A PERS retirant who has received a retirement
allowance for less than two months when employment subject to
this
section commences shall forfeit the retirement allowance for
any
month the PERS retirant is employed prior to the
expiration of the
two-month period. Service and contributions for
that period shall
not be included in calculation of any benefits
payable to the PERS
retirant and those contributions shall be
refunded on the
retirant's death or termination of the
employment. (b) An other system retirant who has received a retirement
allowance or disability benefit for less than two
months when
employment subject to this section commences shall
forfeit the
retirement allowance or disability benefit for any month
the
other
system retirant is employed prior to the expiration of the
two-month period. Service
and contributions for that period
shall
not be included in the
calculation of any benefits payable
to the
other system retirant
and those contributions shall be
refunded on
the retirant's
death or termination of the employment. (c) Contributions made on compensation earned after the
expiration of the two-month period shall be used in the
calculation of the
benefit or payment due under section 145.384 of
the Revised Code. (5) On receipt of notice from the Ohio police and
fire
pension fund, school employees retirement
system,
or state
teachers retirement system of the re-employment of a
PERS
retirant, the public employees retirement system shall not pay,
or
if paid, shall recover, the amount to be forfeited by the PERS
retirant in accordance with section 742.26, 3307.35,
or 3309.341
of the Revised Code. (6) A PERS retirant who enters into a contract to provide
services as an independent contractor to the employer by which
the
retirant was employed at the time of retirement or, less
than two
months after the retirement allowance commences, begins
providing
services as an independent contractor pursuant to a contract with
another public employer, shall forfeit the pension portion of
the
retirement benefit for the period beginning the first day of the
month following the month in which the services begin and ending
on the first day of the month following the month in which the
services end. The annuity portion of the retirement allowance
shall be suspended on the day services under the contract begin
and shall accumulate to the credit of the retirant to be paid in
a
single payment after services provided under the contract
terminate. A PERS retirant subject to division (B)(6) of this
section shall not contribute to the retirement system and shall
not become a member of the system. (7) As used in this division,
"employment" includes service
for which a
PERS retirant or other system retirant, the retirant's
employer, or
both, have waived any earnable salary for the
service. (C)(1) This division applies to both of the following: (a) A PERS retirant who, prior to September 14, 2000,
made
an election
under
was subject to division (C)(1)(b) of this
section as that
division existed immediately prior to September
14, 2000,
and
a
PERS retirant who elects under Section 6 of Am.
Sub. S.B. No.
144
of the 123rd General
Assembly
has not elected
pursuant to Am. Sub. S.B. 144 of the 123rd general assembly to
cease to be subject to
this section
that division;
(b) A PERS retirant to whom both of the following apply: (i) The retirant held elective office in this state, or in
any municipal corporation, county, or other political subdivision
of this
state at the time of retirement under this chapter. (ii) The retirant was elected or appointed to the same
office for the remainder of the term or the term immediately
following the term during which the retirement occurred. (2) A PERS retirant who is subject to this division is a
member of the public employees retirement system with all the
rights,
privileges, and obligations of membership, except that the
membership does
not include survivor benefits provided pursuant to
section 145.45 of the
Revised Code or, beginning on the ninetieth
day after September 14, 2000, any amount
calculated under section
145.401 of the Revised
Code. The pension portion of the PERS
retirant's retirement
allowance shall be forfeited until the first
day of the first month following
termination of the employment.
The annuity portion of the retirement
allowance shall accumulate
to the credit of the
PERS retirant to
be paid in a single payment
after termination of the employment.
The retirement allowance
shall resume on the first day of the
first month following
termination of the employment. On
termination of the employment,
the PERS retirant shall elect to
receive either a refund of the
retirant's contributions to
the retirement
system during the
period of employment subject to this section or
a supplemental
retirement allowance based on the retirant's
contributions and
service credit for that period of employment. (D)(1) Except as provided in division (C) of this
section,
a PERS
retirant or other system retirant subject to
this section
is not
a member of the public employees
retirement system, and,
except as
specified in this section does not
have any of the
rights,
privileges, or
obligations of membership. Except as
specified in
division
(D)(2) of this
section, the retirant is not
eligible to
receive health, medical,
hospital, or surgical
benefits under
section 145.58 of the Revised Code for employment
subject to this
section.
(2) A PERS retirant subject to this
section shall receive
primary health, medical,
hospital, or surgical insurance coverage
from the retirant's employer, if the
employer provides coverage to
other employees performing
comparable work. Neither the employer
nor the PERS retirant may
waive the employer's coverage, except
that the PERS retirant may
waive the employer's coverage if the
retirant has coverage comparable to
that provided by the employer
from a source other than the
employer or the public employees
retirement system. If a claim
is made, the employer's coverage
shall be the primary coverage
and shall pay first. The benefits
provided under section 145.58
of the Revised Code shall pay only
those medical expenses not
paid through the employer's coverage or
coverage the PERS
retirant receives through a source other than
the retirement
system. (E) If the disability benefit of an other system retirant
employed under this section is terminated, the retirant shall
become a member of the public employees retirement system,
effective on
the first day of the month next following the
termination with
all the rights, privileges, and obligations of
membership. If
such person, after the termination of the
disability benefit,
earns two years of service credit under this
system or under the
Ohio police and fire
pension fund, state
teachers
retirement system, school employees retirement system, or
state
highway patrol retirement system, the person's prior
contributions as an
other system retirant under this section shall
be included in the person's
total service credit as a public
employees retirement system
member, and the person shall forfeit
all rights and benefits of this
section. Not more than one year
of credit may be given for any
period of twelve months. (F) This section does not affect the receipt of benefits
by
or
eligibility for benefits of any person who on August 20,
1976,
was
receiving a disability benefit or service retirement
pension
or
allowance from a state or municipal retirement system
in Ohio
and
was a member of any other state or municipal
retirement system
of
this state. (G) The public employees retirement board may adopt rules
to
carry out this section.
Sec. 3305.08. Any payment, benefit, or other right accruing
to any
electing
employee under a contract entered into for
purposes of an alternative retirement plan,
any contributions
to
a
provider pursuant to section
3305.06 of the Revised Code, and
all
moneys, investments, and income of
those contracts are
exempt
from
any state tax, except the tax imposed by section 5747.02 of
the
Revised Code, are exempt from any
county, municipal, or other
local tax, except taxes imposed pursuant to
section 5748.02 or
5748.08 of
the Revised Code,
and
except as provided in sections
3105.171, 3105.65,
3111.23, 3113.21, 3115.32, 3119.80, 3119.81,
3121.02, 3121.03, 3123.06, and 3305.09 of the
Revised
Code, shall
not
be
subject to execution, garnishment,
attachment, the
operation of bankruptcy or
the insolvency law, or
other process of
law, and shall be unassignable except
as
specifically provided in
this section and sections 3105.171,
3105.65, 3119.80, 3119.81,
3121.02, 3121.03,,, and 3115.32, and 3123.06 of
the Revised Code
or in
any contract the electing employee has entered into
for
purposes
of an
alternative retirement plan.
Section 2. That existing sections 145.38 and 3305.08 of the
Revised Code
are hereby repealed.
Section 3. That Section 6 of Am. Sub. S.B. 144 of the 123rd
General Assembly, as amended by Sub. H.B. 535 of the 123rd General
Assembly, is hereby repealed.
The intent of the repeal by this act of Section 6 of Am. Sub.
S.B. 144 of the 123rd General Assembly, as amended, is to
eliminate the authority to make the election described in that
section. The repeal does not affect any election made pursuant to
that section prior to the effective date of this act.
Section 4. Section 3305.08 of the Revised Code is
presented
in
this act as a composite of the section as amended by
both Sub.
H.B. 535 and Am. Sub. S.B. 180 of
the 123rd General
Assembly. The
General Assembly, applying the
principle stated in
division (B) of
section 1.52 of the Revised
Code that amendments
are to be
harmonized if reasonably capable of
simultaneous
operation, finds
that the composite is the resulting
version of
the section in
effect prior to the effective date of
the section
as presented in
this act.
Section 5. This act is hereby declared to be an emergency
measure necessary for the immediate preservation of the public
peace, health, and safety. The reason for such necessity is that
this act is needed to prevent certain elected officials from
collecting at the same time both a public pension and compensation
for service in the same office. Therefore, this act shall go into
immediate effect.
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