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Sub. H. B. No. 272 As Reported by the House Financial Institutions Real Estate and Securities CommitteeAs Reported by the House Financial Institutions Real Estate and Securities Committee
126th General Assembly | Regular Session | 2005-2006 |
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Representatives Schneider, Evans, D., Reidelbach
A BILL
To amend sections 145.057, 145.06, 145.201, 145.23, 145.294, 145.351, 145.43, 145.45, 145.471, 145.472, 145.483, 145.51, 145.82, 145.92, 742.046, 742.05, 742.381, 742.56, 3307.06, 3307.061, 3307.513, 3307.70, 3309.06, 3309.061, 3309.27, 3309.391, 5505.043, 5505.098, 5505.181, and 5505.203 and to enact sections 145.52, 145.53, 145.583, 145.62, 145.63, 145.64, 145.65, 742.451, 3307.393, 3309.692, and 5505.281 of the Revised Code regarding the state retirement systems.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.057, 145.06, 145.201, 145.23, 145.294, 145.351, 145.43, 145.45, 145.471, 145.472, 145.483, 145.51, 145.82, 145.92, 742.046, 742.05, 742.381, 742.56, 3307.06, 3307.061, 3307.513, 3307.70, 3309.06, 3309.061, 3309.27, 3309.391, 5505.043, 5505.048, 5505.181, and 5505.203 be amended and sections 145.52, 145.53, 145.583, 145.62, 145.63, 145.64, 145.65, 742.451, 3307.393, 3309.692, and 5505.281 of the Revised Code be enacted to read as follows:
Sec. 145.057. (A) The office of an employee member or retirant member of the public employees retirement board who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member or retirant member of the public employees retirement board. (B) A member of the public employees retirement board who willfully and flagrantly exercises authority or power not authorized by law, refuses or willfully neglects to enforce the law or to perform any official duty imposed by law, or is guilty of gross neglect of duty, gross immorality, drunkenness, misfeasance, malfeasance, or nonfeasance is guilty of misconduct in office. On complaint and hearing in the manner provided for in this section, the board member shall have judgment of forfeiture of the office with all its emoluments entered against the board member, creating in the office a vacancy to be filled as provided by law. (C) Proceedings for removal of a board member on any of the grounds enumerated in division (B) of this section shall be commenced by filing with the court of appeals common pleas of the district county in which the board member resides a written complaint specifically setting forth the charge. The complaint shall be accepted if signed by the governor or signed as follows: (1) If the complaint is against an employee member of the board, the complaint must be signed by a number of members of the employee group represented by the member that equals at least the following and must include signatures of at least twenty employee members residing in at least five different counties:
(a) If the employee member was most recently elected in accordance with section 145.05 of the Revised Code, ten per cent of the number of members of the employee group represented by the employee member who voted in that election;
(b) If the employee member was most recently elected under section 145.06 of the Revised Code or took office in accordance with section 145.051 of the Revised Code, ten per cent of the number of members of the employee group represented by the employee member who voted in the most recent election held in accordance with section 145.05 of the Revised Code for that employee member position on the board. (2) If the complaint is against a retirant member of the board, the complaint must be signed by a number of former members of the system authorized to vote for a retirant member in an election under section 145.05 of the Revised Code that equals at least the following and must include signatures of at least twenty former members residing in at least five different counties:
(a) If the retirant member was most recently elected in accordance with section 145.05 of the Revised Code, ten per cent of the number of former members of the system who voted in that election;
(b) If the retirant member was most recently elected under section 145.06 of the Revised Code or took office in accordance with section 145.051 of the Revised Code, ten per cent of the number of former members of the system who voted in the most recent election held in accordance with section 145.05 of the Revised Code for that retirant member position on the board.
(D) The clerk of the court of appeals common pleas in which a complaint against a member of the board is filed under division (C) of this section shall do both of the following with respect to the complaint:
(1) Submit the signatures obtained pursuant to division (C) of this section to the board for purposes of verifying the validity of the signatures. The board shall verify the validity of the signatures and report its findings to the court. (2) Cause
a copy of the complaint to be served on the board member at least ten days before the hearing on the complaint. The court shall hold a public hearing not later than thirty days after the filing of the complaint. The court may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which the witness resides. Witness fees and other fees in connection with the proceedings shall be the same as in civil cases. The court may suspend the board member pending the hearing. If the court finds that one or more of the charges in the complaint are true, it shall make a finding for removal of the board member. The court's finding shall include a full, detailed statement of the reasons for the removal. The finding shall be filed with the clerk of the court and be made a matter of public record. The board member has the right of review or to appeal to the supreme court on leave first obtained. The supreme court shall hear the case in not more than thirty court days after granting leave. In other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals. (E) No individual who has been removed from the board pursuant to this section shall be eligible to fill an elective or appointed position as a member of the board.
Sec. 145.06. (A) If Except as provided in division (D) of this section, if a vacancy occurs in the term of any
employee member of the public employees retirement board, the
remaining members of the board shall elect a successor employee member
from the employee group lacking representation because of the
vacancy. On certification of the election results in accordance with rules adopted under section 145.058 of the Revised Code, the successor employee member shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor employee member's election. Any employee member of the board who fails to attend the
meetings of the board for three months or longer, without valid
excuse, shall be considered as having resigned, and the board
shall declare the employee member's office vacated as of the
date of the adoption
of a proper resolution. (B) If Except as provided in division (D) of this section, if a vacancy occurs during the term of office of a
retirant member of the board, the remaining members of the board
shall elect a successor retirant member who shall be a former member of the public
employees retirement system who is eligible for election under section 145.04
of the
Revised Code as a retirant member of the board. On certification of the election results in accordance with rules adopted under section 145.058 of the Revised Code, the successor retirant member shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor retirant member's election. If a retirant member of the board fails to attend the
meetings of the board for three months or longer, without valid
excuse, the retirant member shall be considered as having
resigned, and the board
shall declare the member's office vacated as of the date of
the adoption
of a proper resolution. If as a result of changed circumstances a retirant member
would no longer qualify for membership on the board as the
retirant member, the retirant member's office shall be
considered vacant, and a
successor retirant member shall be chosen in the manner specified
in this division. (C) Elections under this section to fill a vacancy on the board shall be conducted in accordance with rules adopted under section 145.058 of the Revised Code.
(D) A successor member need not be elected under division (A) or (B) of this section for a vacancy that occurs on or after the first day of October of the year in which the vacated term ends.
Sec. 145.201. (A) Subject to the limit described in division
(C) of this section, any member who is or has been an
elected official of the state or any political subdivision
thereof or has been appointed by the governor with the advice and consent
of the senate to serve full-time as a member of a board, commission, or other
public body may at any time prior to retirement purchase additional
service credit in an amount not to exceed thirty-five per cent of
the service credit allowed the member for the period of
service as an
elected or appointed official subsequent to January 1, 1935, other than
credit for military service, part-time service, and service subject to
the tax on wages imposed by the "Federal Insurance Contributions
Act," 68A Stat. 415 (1954), 26 U.S.C.A. 3101, as amended. The
additional service credit may be purchased by paying
into the employees' savings fund an amount computed by
multiplying by the employee contribution rate in effect at the
time of purchase the member's earnable salary for the period of
service upon which the purchased credit is based, by the number
of years or portions thereof of additional service credit to be
purchased, and by paying into the employers' accumulation fund an
amount equal to the full amount paid into the employees' savings
fund. If a member purchases less than the full amount of the
additional service credit to which the member is entitled,
the period of
service upon which the purchase is computed shall be the
member's earliest
period of such service. The member shall receive full credit for
such additional elective service in computing an allowance or
benefit under section 145.20, 145.33, 145.331, 145.34, 145.36,
145.361, or 145.46 of the Revised Code, notwithstanding any other
provision of this chapter.
The payment to the employees' savings
fund and the employers' accumulation fund for such additional
elective service credit shall, in the event of death or
withdrawal from service, be considered as accumulated
contributions of the member. A member of a board, commission, or other public body shall
be considered to be serving full-time if full-time service is
required by law or if the director of administrative services
determines that the duties of the position require full-time
service. (B) Notwithstanding division (A) of this section, a member
who purchased service credit under this section prior to January
1, 1980, on the basis of part-time service shall be permitted to
retain the credit and shall be given full credit for it in
computing an allowance or benefit under section 145.20, 145.33,
145.331, 145.34, 145.36, 145.361, or 145.46 of the Revised Code.
The public employees retirement board has no authority to cancel
or rescind such credit. (C) A purchase made under this section
shall not
exceed the limits established by division (n) of section 415
of the "Internal
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.
415(n), as amended.
(D) Subject to rules adopted by the public employees retirement board, a member who has purchased service credit under this section is entitled to be refunded all or a portion of the actual amount the member paid for the service credit if, in computing an age and service retirement allowance under division (A)(5) of section 145.33 of Revised Code, the allowance exceeds the limit established by division (A)(6) of that section.
A
refund under this division cancels the equivalent amount of service credit. Sec. 145.23. The funds hereby created are the employees'
savings fund, the employers' accumulation fund, the annuity and
pension reserve fund, the income fund, the survivors' benefit
fund, the defined contribution fund, and the expense fund. (A) The employees' savings fund is the fund in which shall
be accumulated contributions from the earnable salaries of
contributors for the purchase of annuities or retirement
allowances. The accumulated contributions of a contributor returned to
the contributor upon withdrawal, or paid to
the contributor's
estate or designated
beneficiary in the event of death, shall be
paid from the
employees' savings fund. Any accumulated
contributions forfeited
by failure of a member, or a member's
estate, to claim the
same, shall
be transferred from the
employees' savings fund to the income
fund. The accumulated
contributions of a contributor shall be
transferred from the
employees' savings fund to the annuity and
pension reserve fund in
the event of the contributor's
retirement. (B) The employers' accumulation fund is the fund in which
shall be accumulated the reserves for the payment of all pensions
and disability benefits payable as provided in this chapter. The
amounts paid by any employer under section 145.48
of the
Revised
Code shall be
credited to the employers' accumulation fund. Amounts paid by an employer under section 145.483 of the Revised Code shall be credited to the employers' accumulation fund, except that if the amounts paid by the employer are for members participating in a PERS defined contribution plan those amounts may be credited to the defined contribution fund. Any payments made into the employers' accumulation fund by
a
member as provided in section 145.31 of the Revised Code shall
be
refunded to such member under the conditions specified in
section
145.40 of the Revised Code. Upon the retirement of a contributor, the full amount of
the
contributor's pension reserve shall be transferred from
the
employers'
accumulation fund to the annuity and pension reserve
fund. (C) The annuity and pension reserve fund is the fund from
which shall be paid all pensions, disability benefits, annuities,
and benefits in lieu thereof, because of which reserves have been
transferred from the employees' savings fund and the employers'
accumulation fund. Any
member participating in the PERS defined
benefit plan
may deposit in the employees' savings fund,
subject
to rules
established by the public
employees retirement
system,
additional
amounts, and, at
the time of age and service
retirement, shall
receive in return
therefor, at the
participant's
option, either
an annuity
having a reserve equal
to
the amount
deposited or a
cash refund of such amounts together
with such
interest as may
have been allowed by the
board.
Such
deposits for
additional
annuity together with such interest
as may
have been
allowed by
the board
at the end of each calendar year
shall be
refunded in
the event
of death prior to retirement or
withdrawal
of
accumulated
contributions as provided in sections
145.40 and
145.43 of the
Revised Code or upon application of the
contributor
prior to age
and service retirement.
Any additional deposits that were made under this section by
a member who elects under section 145.191 of the Revised Code to
participate in a PERS defined contribution plan shall be credited
to the defined contribution plan elected by the member under that
section.
For deposits received in a calendar year,
interest shall be
earned beginning on the first day of the calendar year next
following and ending on the last day of that year,
except that in
the case of a
payment under this division
made prior to the last
day of a year, interest shall be earned ending on the
last day of
the month prior to the date of payment.
The board shall credit
interest at the end of the calendar year in which it is
earned.
(D) The income fund is the fund from which interest is
transferred and credited on the amounts in the funds described in
divisions (B), (C), and (F) of this section, and is a contingent
fund from which the special requirements of the funds may be paid
by transfer from this fund. All income derived from the
investment of the funds of the system,
together with
all gifts and
bequests, or the income therefrom, shall be paid
into this fund. Any deficit occurring in any other fund that will not be
covered by payments to that fund, as otherwise provided in
Chapter
145. of the Revised Code, shall be paid by transfers of
amounts
from the income fund to such fund or funds. If the
amount in the
income fund is insufficient at any time to meet the
amounts
payable to the funds described in divisions
(C) and (F) of this
section, the amount of the
deficiency shall be transferred from
the
employers' accumulation fund. The system may accept gifts
and
bequests. Any gifts or
bequests, any
funds which may be
transferred from the employees'
savings fund by reason of lack of
a claimant, any surplus in any
fund created by this section,
or any other funds whose disposition
is not otherwise provided
for, shall be credited to the income
fund. (E) The expense fund is the fund from which shall be paid
the expenses of the administration of this chapter, exclusive of
amounts payable as retirement allowances and as other benefits. (F) The survivors' benefit fund is the fund from which
shall
be paid dependent survivor benefits provided by section
145.45 of
the Revised Code. (G) The defined contribution fund is the fund in
which
shall
be accumulated the contributions deducted from the earnable salary
of
members participating in
a
PERS defined contribution plan, as
provided
in
section 145.85 of the
Revised Code, together with any
earnings
and
employer
contributions, as provided in section 145.86
of the
Revised Code,
credited thereon. The defined contribution
fund is
the fund from
which shall be paid all benefits provided
under
a
PERS defined contribution plan.
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, or for making additional deposits under section 145.583 or 145.62 of the Revised Code. 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 for
informing the
member's
employer and the system that the member wishes to purchase
service credit
under this chapter or make additional deposits under section 145.583 or 145.62 of the Revised Code 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 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. 145.351. Not later than
March 1, 2000, and each first day of
March for the succeeding five years thereafter, the
public employees retirement board shall make and submit a report
for the preceding fiscal year of the disability retirement
experience of each employer. The report shall specify the total
number of disability applications submitted, the status of each
application as of the last day of the fiscal year, total
applications granted or denied, and the percentage of disability
benefit recipients to the total number of the employer's
employees who are members of the public employees retirement
system. The report shall be submitted to the governor, the
Ohio retirement study council,
and the chairpersons of the standing committees and subcommittees of
the senate and house of representatives with primary
responsibility for retirement legislation.
Sec. 145.43. (A) As used in this section and in section
145.45 of the
Revised Code: (1)
"Child" means a
biological or legally adopted child of a
deceased member. If a court hearing
for an interlocutory decree
for adoption was held prior to the member's death,
"child"
includes the child who was the subject of the hearing
notwithstanding
the fact that the final decree of adoption,
adjudging the surviving spouse as
the adoptive parent, is made
subsequent to the member's death. (2)
"Parent" is a
parent or legally adoptive parent of a
deceased
member. (3)
"Dependent" means a beneficiary who receives one-half
of
the beneficiary's support from a member during the twelve
months
prior to the member's death. (4)
"Surviving spouse" means an individual who
establishes a
valid marriage to a member at the time of the
member's death by
marriage certificate or pursuant to division
(E) of this section. (5)
"Survivor" means a surviving spouse, child, or
parent.
(6) "Accumulated contributions" has the meaning given in section 145.01 of the Revised Code, except that, notwithstanding that section, it does not include additional amounts deposited in the employees' savings fund pursuant to the version of division (C) of section 145.23 of the Revised Code as it existed immediately prior to the effective date of this amendment or pursuant to section 145.62 of the Revised Code. (B) Except as provided in division (C)(1) of
section
145.45
of the Revised Code, should a member
die before age and service
retirement,
the member's accumulated contributions, any deposits
for
purchase of
additional annuity, any payment the member has
made to
restore
previously forfeited service credit as provided in
section 145.31
of the Revised Code, and any applicable amount
calculated under section
145.401 of the Revised Code, shall be
paid to the person or persons
the member has designated in writing
duly executed on a form
provided by
the public employees
retirement board, signed by the member,
and filed
with the board
prior to the member's death. A member may
designate two or
more
persons as beneficiaries jointly to be paid the accumulated
account in a lump sum. The Subject to rules adopted by the board, a member who designates two or more persons as beneficiaries under this division shall specify the percentage of the lump sum that each beneficiary is to be paid. If the member has not specified the percentages, the lump sum shall be divided equally among the beneficiaries. The last designation of any beneficiary
revokes all previous designations. The member's marriage,
divorce, marriage dissolution, legal separation, or withdrawal of
account, or the birth of the member's child, or
adoption of a
child,
shall constitute an automatic revocation of the member's
previous designation. If a deceased member was also a member of
the
school employees retirement system or the state teachers
retirement system, the beneficiary last established among the
systems shall be the sole beneficiary in all the systems. If the accumulated contributions of a deceased member are
not
claimed by a beneficiary or by the estate of the deceased
member
within five years, the contributions
shall be transferred
to the
income fund and thereafter paid to the beneficiary
or to
the
member's estate upon application to the board. The board
shall
formulate and adopt the necessary rules governing all
designations
of beneficiaries. (C) Except as provided in division (C)(1) of section
145.45
of the Revised Code, if a member
dies before age and service
retirement and
is not survived by a designated beneficiary, any
beneficiaries the following shall
qualify, with all attendant rights and privileges, in the following order of precedence,
with all attendant rights and privileges the member's: (2) Children, share and share alike; (3) A dependent parent of a member, if that parent
takes
survivor benefits under division (B) of section
145.45 of
the
Revised Code; (4) Parents, share and share alike; If the beneficiary is deceased or is not located within
ninety days, the beneficiary ceases to qualify for any benefit
and
the beneficiary next in order of precedence shall qualify as
a
beneficiary. Any payment made to a beneficiary as determined by the
public
employees retirement board shall be a full discharge and
release
to the board from any future claims. (D) Any amount due a retirant or disability benefit
recipient
receiving a monthly benefit
and unpaid to the retirant
or recipient at
death shall be paid to the beneficiary
designated
in writing on a form approved by the board, signed by
the retirant
or recipient and filed with the board. If no such
designation
has
been filed, or if the designated beneficiary is not located within
ninety days, any amounts
payable under this chapter due to the
death of the retirant or
recipient shall
be paid in the following
order of precedence to the retirant's or
recipient's: (2) Children, share and share alike; (3) Parents, share and share alike; The payment shall be a full discharge and release to the
board from any future claim for the payment. Any amount due a beneficiary receiving a monthly benefit
and
unpaid to the beneficiary at the
beneficiary's death shall be paid
to the beneficiary's
estate. (E) If the validity of marriage cannot be established to
the
satisfaction of the retirement board for the purpose of
disbursing
any amount due under this section or section 145.45 of
the Revised
Code, the board may accept a decision rendered by a
court having
jurisdiction in the state in which the member was
domiciled at the
time of death that the relationship constituted
a valid marriage
at the time of death, or the
"spouse" would have
the same status
as a widow or widower for purposes of sharing the
distribution of
the member's intestate personal property. (F) As used in this division,
"recipient" means an
individual who is
receiving or may be eligible to receive an
allowance or benefit under
this chapter based on the individual's
service to a public
employer. If the death of a member, a recipient, or any individual who
would
be eligible to receive an allowance or benefit under this
chapter by virtue of
the death of a member or recipient is caused
by one of the
following beneficiaries, no amount due under this
chapter to the beneficiary
shall be paid to the beneficiary in the
absence of a
court order to the contrary filed with the board: (1) A beneficiary who is convicted of, pleads guilty to,
or
is found not guilty by reason of insanity of a violation of
or
complicity in the violation of either of the
following: (a) Section 2903.01, 2903.02, or 2903.03 of the
Revised
Code; (b) An existing or former law of any other state,
the United
States, or a foreign nation
that is substantially equivalent to
section 2903.01, 2903.02, or 2903.03 of the
Revised Code. (2) A beneficiary who is indicted for a violation of or
complicity in the violation of the sections or laws described in
division (F)(1)(a) or
(b) of this section and is adjudicated
incompetent to stand trial; (3) A beneficiary who is a juvenile found to be a
delinquent
child by reason of committing an act that, if
committed by an
adult, would be a violation of or complicity in
the violation of
the sections or laws described in
division (F)(1)(a) or (b) of
this section. Sec. 145.45. Except as provided in division (C)(1) of
this
section, in lieu of accepting the payment of the
accumulated
account of a member who dies before service
retirement, a
beneficiary, as determined in this section or
section 145.43 of
the Revised Code, may elect to forfeit the
accumulated
contributions and to substitute certain other
benefits under
division (A) or (B) of this section. (A)(1) If a deceased member was eligible for a service
retirement benefit as provided in section 145.33, 145.331, or
145.34 of the Revised Code, a surviving spouse or other sole
dependent beneficiary
may elect to receive a monthly benefit
computed as the joint-survivor benefit designated as
"plan D" in
section 145.46 of the Revised Code, which the member would have
received had the member retired on the last day of the month of
death and
had the member at that time selected such joint-survivor
plan.
Payment
shall begin with the month subsequent to the
member's death,
except that a surviving spouse who is less than
sixty-five years
old may defer receipt of such benefit. Upon
receipt, the benefit
shall be calculated based upon the spouse's
age at the time of
first payment, and shall accrue regular
interest during the time
of deferral.
(2) Beginning on a date selected by the public employees
retirement board, which shall be not later than July 1, 2004, a
surviving spouse or other sole dependent beneficiary may elect, in
lieu of a monthly payment under division (A)(1) of this section, a
plan of payment consisting of both of the following: (a) A lump sum in an amount the surviving spouse or other
sole dependent beneficiary designates that constitutes a portion
of the allowance that would be payable under division (A)(1) of
this section; (b) The remainder of that allowance in monthly payments. The total amount paid as a lump sum and a monthly benefit
shall be the actuarial equivalent of the amount that would have
been paid had the lump sum not been selected. The lump sum amount designated by the surviving spouse or
other sole dependent beneficiary under division (A)(2)(a) of this
section shall be not less than six times and not more than
thirty-six times the monthly amount that
would be payable to the
surviving spouse or other sole dependent
beneficiary under
division (A)(1) of this section and shall not result in a monthly
payment that is less than fifty per cent of that monthly amount. (B) If a deceased member had, except as provided in division
(B)(7) of this section, at least one and one-half
years
of
contributing service credit, with, except as provided in division
(B)(7) of this section, at least one-quarter
year of
contributing
service credit within the two and one-half
years
prior to the date
of death, or was receiving at the time of
death
a disability
benefit as provided in section 145.36,
145.361, or
145.37 of the
Revised Code, qualified survivors
who elect to
receive monthly
benefits shall receive the greater of the benefits
provided
in
division (B)(1)(a) or (b)
and (4) of this section as
allocated in
accordance with
division (B)(5) of this section.
|
(1)(a) Number |
|
|
|
Or |
|
of Qualified |
|
|
|
Monthly |
|
survivors |
|
Annual Benefit as a Per |
|
Benefit |
|
affecting |
|
Cent of Decedent's Final |
|
shall not be |
|
the benefit |
|
Average Salary |
|
less than |
|
1 |
|
25% |
|
$250 |
|
2 |
|
40
|
|
400 |
|
3 |
|
50
|
|
500 |
|
4 |
|
55
|
|
500 |
|
5 or more |
|
60 |
|
500 |
|
(b) Years of |
Annual Benefit as a Per Cent |
|
Service |
of Member's Final Average |
|
|
Salary |
|
20 |
29% |
|
21 |
33
|
|
22 |
37
|
|
23 |
41
|
|
24 |
45
|
|
25 |
48
|
|
26 |
51
|
|
27 |
54
|
|
28 |
57
|
|
29 or more |
60
|
(2)
Benefits shall begin as qualified survivors meet
eligibility
requirements as follows: (a) A qualified spouse is the surviving spouse of the
deceased member, who is age
sixty-two,
or regardless of age if meets one of the following qualifications: (i) Except as provided in division (B)(7) of this section, the
deceased member had ten or
more years of Ohio
service credit, or
regardless of age if. (ii) The spouse is caring for a
qualified child, or regardless
of age if. (iii) The spouse is adjudged physically or
mentally
incompetent. A A spouse
of a member who died prior to August 27,
1970, whose eligibility
was determined at the member's death, and
who is physically or
mentally incompetent on or after August 20,
1976, shall be paid
the monthly benefit which that person would
otherwise receive when
qualified by age. (b) A qualified child is any
child of
the
deceased member
who has never been married and to whom one of
the following
applies: (i) Is under age eighteen, or under age twenty-two if
the
child is attending an institution of learning or training
pursuant
to a program designed to complete in each school year
the
equivalent of at least two-thirds of the full-time curriculum
requirements of such institution and as further determined by
board policy; (ii) Regardless of age, is adjudged
physically or
mentally
incompetent at the time of the member's death.
(c) A qualified parent is a dependent parent aged sixty-five
or
older
or regardless of age if physically or mentally
incompetent, a
dependent parent whose eligibility was determined
by the member's
death prior to August 20, 1976, and who is
physically or mentally
incompetent on or after August 20, 1976,
shall be paid the
monthly benefit for which that person would
otherwise qualify. (3)
"Physically or mentally incompetent" as used in this
section may be determined by a court of jurisdiction, or by a
physician appointed by the retirement board. Incapability of
making a living because of a physically or mentally disabling
condition shall meet the qualifications of this division. (4) Benefits to a qualified survivor shall terminate
upon
ceasing to meet eligibility requirements as provided in this
division, a first marriage, abandonment, adoption, or during
active military service. Benefits to a deceased member's
surviving spouse that were terminated under a former version of
this section
that required termination due to remarriage and were
not resumed prior to
September 16, 1998, shall resume on the first
day of the month
immediately following receipt by the board of an
application on a form
provided by the board. Upon the death of any subsequent
spouse who was a member of
the public
employees retirement system, state teachers retirement
system, or
school employees retirement system, the surviving
spouse of such
member may elect to continue receiving benefits
under this
division, or to receive survivor's benefits, based upon
the
subsequent spouse's membership in one or more of the systems,
for
which such surviving spouse is eligible under this section or
section 3307.66 or 3309.45 of the Revised Code. If
the surviving
spouse elects to continue receiving benefits under this division,
such election shall not preclude the payment of benefits under
this division to any other qualified survivor. Benefits shall begin or resume on the first day of the
month
following the attainment of eligibility and shall terminate
on the
first day of the month following loss of eligibility. (5)(a) If a benefit is payable under
division (B)(1)(a) of
this section, benefits to a
qualified spouse shall be paid in the
amount determined for the first qualifying survivor in
division
(B)(1)(a) of this section. All other qualifying
survivors shall
share equally in the benefit or remaining portion
thereof. (b) All qualifying survivors shall share equally in a
benefit
payable under division (B)(1)(b) of this section,
except
that if there is a surviving spouse, the surviving spouse shall
receive not
less than the
amount determined for the first
qualifying survivor in division
(B)(1)(a) of this section. (6) The beneficiary of a member who is also a member of
the
state teachers retirement system or of the school employees
retirement system, must forfeit the member's accumulated
contributions in those systems and in the public employees
retirement system, if the beneficiary takes a
survivor benefit.
Such benefit shall be exclusively governed by section
145.37 of
the Revised Code.
(7) The restriction that the deceased member have at
least
one and one-half years of contributing service credit, with
at
least one-quarter year of contributing service within the two
and
one-half years prior to the date of death, does following restrictions do not apply if
the
deceased member was contributing toward benefits under
division
(B) or (C) of section 145.33 of the Revised Code at the
time of
death: (a) That the deceased member have had at least one and one-half years of contributing service credit, with at least one-quarter year of contributing service within the two and one-half years prior to the date of death; (b) If the deceased member was killed in the line of duty, that the deceased member have had ten or more years of Ohio service credit as described in division (B)(2)(a)(i) of this section.
For the purposes of division (B)(7)(b) of this section, "killed in the line of duty," means either that death occurred in the line of duty or that death occurred as a result of injury sustained in the line of duty. (C)(1) Regardless
of whether the member is survived by
a
spouse or designated beneficiary, if the public employees
retirement system
receives notice that a deceased member described
in division
(A) or (B) of this section has one or more qualified
children, all persons who
are qualified survivors under division
(B) of this section
shall receive monthly benefits as provided in
division (B) of
this section. If, after determining the monthly benefits to be paid under
division
(B) of this section, the system receives notice that
there is a
qualified survivor who was not considered when the
determination was made, the
system shall, notwithstanding section
145.561
of the Revised Code, recalculate the monthly
benefits with
that qualified survivor
included, even if the benefits to
qualified survivors already receiving
benefits are reduced as a
result. The benefits shall be calculated as if the
qualified
survivor who is the subject of the notice became eligible on the
date the notice was received and shall be paid to qualified
survivors
effective on the first day of the first month following
the system's receipt
of the notice. If the retirement system did not receive notice that a
deceased member has one or more qualified children prior
to making
payment under section 145.43 of the Revised
Code to a beneficiary
as
determined by the retirement system, the payment is a full
discharge and release of the system from any future claims under
this section or section 145.43 of the Revised Code. (2) If benefits under division (C)(1) of this section to all
persons, or to
all persons other than a surviving spouse or other
sole beneficiary,
terminate, there are no children under the age
of
twenty-two years, and the surviving spouse or
beneficiary
qualifies for benefits under division
(A) of this section, the
surviving spouse or
beneficiary may elect to receive benefits
under division
(A) of this section. The benefits shall be
effective on the first
day of the month immediately following the
termination. (D) The final average salary used in the calculation of a
benefit payable
pursuant to division (A) or (B) of this section to
a
survivor or beneficiary of a disability benefit
recipient shall
be adjusted for each year between the disability benefit's
effective date and the recipient's date of death by the lesser of
three per
cent or the actual average percentage increase in the
consumer price index
prepared by the United States bureau of labor
statistics
(U.S. city average for urban
wage earners and clerical
workers:
"all items 1982-84=100"). (E) If the survivor benefits due and paid under this
section
are in a total amount less than the member's accumulated
account
that was transferred from the public employees' savings
fund to
the survivors' benefit fund, then the difference between
the total
amount of the benefits paid shall be paid to the
beneficiary under
section 145.43 of the Revised Code.
Sec. 145.471. (A)(1) On and after the effective date of this
section December 13, 2000, the public employees
retirement board shall credit interest to the
individual accounts of contributors, except
that interest shall not be credited to the individual account of
a PERS or other system retirant, as defined in section
145.38 of the Revised Code, for contributions received
during the period described in division (B)(4)(a)
or (b) of section 145.38 of the
Revised Code. For amounts deposited by a contributor under section 145.62 or the version of
division (C) of
section 145.23 of the Revised Code as it existed immediately prior to the effective date of this amendment, interest or earnings shall be
credited in accordance with that section and former division. (2) Except as provided in section 145.472 of the Revised Code, the board
shall not credit
interest to individual accounts for the period beginning
December 31, 1958, and ending on the effective date of this section
December 13, 2000. (B) For contributions received in a calendar year,
interest shall be earned beginning on the first day of the calendar year next
following and ending on the last day of that year,
except that interest shall be earned, in the case of an
application for retirement or payment under section
145.40 or 145.43 of the Revised Code, ending on the last day of
the month prior to retirement or payment under those sections.
The board shall credit interest at the end of the calendar year in which it is
earned.
Sec. 145.472. This section applies to individuals who are contributors on
the effective date of this section December 13,
2000. (A) Not later than thirty days after the effective date of this
section December 13, 2000, the public employees retirement board shall
credit interest to the individual
account of each contributor in accordance with this section,
except that interest shall not be credited to the individual account of
a PERS or other system retirant, as defined in section 145.38
of the Revised Code, for contributions received during the
period described in division (B)(4)(a) or
(b) of section 145.38 of the
Revised Code. For amounts deposited by a contributor under section 145.62 or the version of
division (C) of section 145.23 of the Revised Code as it existed immediately prior to the effective date of this amendment, interest or earnings shall be credited
in
accordance with that section or former division. For contributors with service credit earned prior to December 31,
1981, the board may reflect the compounding of
interest by using factors provided by the board's actuary. (B) The interest credited under this section shall be calculated
on all amounts
on deposit in an individual's account in the employees' savings fund as
follows: (1) If this section takes effect on or before
December 31, 2000, interest shall be calculated on amounts on deposit
on December 31, 1998. (2) If this section takes effect after December 31, 2000,
interest shall be calculated on amounts on deposit on December 31,
1999.
Sec. 145.483. Upon a finding that an employer failed to deduct contributions
pursuant to section 145.47 of the Revised Code during a period of employment
for which such contributions were required, a statement of delinquent
contributions shall be prepared showing the amount the contributor and
employer would have contributed had regular payroll deductions been taken.
Simple interest from the end of each calendar year at a rate set by the public employees
retirement board shall be included. If delinquent contribution statements are
not paid not later than ninety thirty days after the end of the quarterly period month in
which they become an obligation of the employer, any balance remaining shall
be collected with penalties and interest pursuant to section 145.51 of the
Revised Code.
Any amount paid under this section by an employer shall be credited in accordance with section 145.23 of the Revised Code.
Sec. 145.51. (A) Each employer described in division (D) of
section 145.01 of the Revised Code shall pay into the employers'
accumulation fund, in such monthly or less frequent installments
as the public employees retirement board requires, an amount
certified by the public employees retirement board which equals the employer obligation as
described in section 145.12 or 145.69 of the Revised Code. In addition,
the board shall add to the employer billing next succeeding the
amount, with interest, to be paid by the employer to provide the
member with contributing service credit for the service prior to
the date of initial contribution to the system for which the
member has made additional payments, except payments made
pursuant to sections 145.28 and 145.29 of the Revised Code.
Ninety days after the end of a quarterly period, any amounts that
remain unpaid are subject to a penalty for late payment in the
amount of five per cent. In addition, interest on past due
amounts and penalties may be charged at a rate set by the
retirement board.
(B) Except as provided in section 145.52 of the Revised Code, all employer obligations described in division (A) of this section must be received by the public employees retirement system not later than the thirtieth day after the last day of the calendar month for which related member contributions are withheld.
(C) Unless the board adopts a rule under division (F) of this section establishing a different interest rate or penalty, interest and penalties for failing to pay the employer obligation when due under division (B) of this section shall be as follows:
(1) Interest, compounded annually and charged monthly, for each day after the due date that the employer obligation remains unpaid in an amount equal to six per cent per annum of the past due amount of the employer obligation and any penalties imposed under this section;
(2) The penalty for failing to pay the employer obligation when due under division (B) is as follows:
(a) At least eleven but not more than thirty days past due, an amount equal to one per cent of the past due obligation;
(b) At least thirty-one but not more than sixty days past due, an additional amount equal to one and one-half per cent of the past due obligation;
(c) Sixty-one or more days past due, an additional amount equal to two and one-half per cent of the past due obligation.
(D) The aggregate of all such payments by such employers under this section shall
be sufficient, when combined with the amount in the employers'
accumulation fund, to provide amounts payable under this chapter
out of the fund, and if not, the additional amount so required
shall be collected by means of an increased rate per cent which
shall be certified to such employers by the board. (E) Upon certification by the board to the director of budget
and management, or to the county auditor, of an amount due from
an employer within any county who is subject to this chapter, by
reason of such employer's delinquency in making payments into the
employers' accumulation fund for past billings, such amount shall
be withheld from such employer from any funds subject to the
control of the director or the county auditor to such employer
and shall be paid to the public employees retirement system. (F) The board may adopt rules to do any of the following:
(1) Establish interest at a rate that does not exceed the annual rate described in division (C)(1) of this section; (2) Establish penalties in amounts that do not exceed the amounts described in division (C)(2) of this section;
(3) Permit the board to lengthen the periods of time or enter into repayment agreements for employers to comply with divisions (B) and (C) of this section.
Sec. 145.52. (A) As used in this section and section 145.53 of the Revised Code, "transitional liability" means an amount equal to the employer obligation due under division (A) of section 145.51 of the Revised Code for the months of October, November, and December of 2007.
(B) The transitional liability is payable in three installments on or before December 31, 2008, December 31, 2009, and December 31, 2010.
(1) The first installment is due not later than December 31, 2008, and equals the portion of the transitional liability for the month of October 2007.
(2) The second installment is due not later than December 31, 2009, and equals the portion of the transitional liability for the month of November 2007.
(3) The third installment is due not later than December 31, 2010, and equals the portion of the transitional liability for the month of December 2007.
(C) Interest and penalties for failing to pay amounts when due under division (B) of this section shall be calculated in accordance with division (C) of section 145.51 of the Revised Code.
Sec. 145.53. (A) From the employer obligation for the month of February 2008, under section 145.51 of the Revised Code, an amount equal to the portion of the employer obligation attributable to section 145.86 of the Revised Code for the months of October, November, and December of 2007, shall be credited to the PERS defined contribution plan to satisfy the portion of the transitional liability attributable to section 145.86 of the Revised Code.
(B) When the amount described in division (A) of this section is credited to the PERS defined contribution plan, an equal amount shall be added to the transitional liability described in section 145.52 of the Revised Code to satisfy a portion of the February 2008 employer obligation that is attributable to the PERS defined benefit plan. This amount shall be paid in accordance with section 145.52 of the Revised Code, and shall be prorated to correspond with the portion of the transitional liability due under division (B) of that section.
Sec. 145.583. The PERS defined benefit plan or a PERS defined contribution plan may include a
program under which a
member participating in the plan, the member's employer, or a retirant is permitted to
make deposits for
the purpose of providing funds to
the member or retirant for the payment of
health, medical, hospital, surgical,
dental, vision care, or drug
expenses, including insurance premiums,
deductible amounts, or
copayments. Deposits made under this section are in addition to contributions required by this chapter and any other deposits made under it. A program established under this section may be a voluntary
employees' beneficiary
association, as described in section
501(c)(9) of the Internal
Revenue Code,
26 U.S.C. 501(c)(9), as
amended; an account described in section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h), as amended; a medical savings account; or a
similar type of program
under which an individual may accumulate
funds for the purpose of
paying such expenses. To implement the
program, the public
employees retirement board may enter into
agreements with
insurance companies or other entities authorized
to conduct
business in this state. If the PERS defined benefit plan or a PERS defined contribution plan
includes a program
described in this section, the board shall
adopt rules to
establish and administer the program.
Sec. 145.62. Subject to rules adopted by the public employees retirement system under section 145.09 of the Revised Code, a contributor participating in the PERS defined benefit plan or contributing under section 145.38 of the Revised Code may deposit additional amounts in the employees' savings fund established under section 145.23 of the Revised Code. The additional deposits may be made either directly to the retirement system or by payroll deduction under section 145.294 of the Revised Code. The contributor shall receive in return either an annuity, as provided in section 145.64 of the Revised Code, having a reserve equal to the amount deposited or a refund under section 145.63 of the Revised Code of the amount deposited, together with earnings on the amount deposited as the public employees retirement board determines appropriate. If the annuity under the plan of payment selected by the contributor under section 145.64 of the Revised Code would be less than twenty-five dollars per month, the contributor shall receive the refund.
Sec. 145.63. (A) Deposits under section 145.62 of the Revised Code, together with earnings, shall be refunded under whichever of the following circumstances applies:
(1) On withdrawal of accumulated contributions as provided in sections 145.40 and 145.43 of the Revised Code;
(2) On the death of a contributor prior to retirement;
(3) In the case of a contributor participating in the PERS defined benefit plan, on application of the contributor prior to attaining eligibility for age and service retirement;
(4) In the case of a contributor under section 145.38 of the Revised Code, on application of the contributor prior to attaining eligibility for a benefit under section 145.384 of the Revised Code;
(5) In the case of a contributor who has attained eligibility for an age and service retirement benefit or a benefit under section 145.384 of the Revised Code and is not married, on application;
(6) In the case of a contributor who has attained eligibility for an age and service retirement benefit or a benefit under section 145.384 of the Revised Code and is married, on application if the application is accompanied by a statement of the spouse's consent to the refund or the public employees retirement board waives the requirement that the spouse consent.
(B) The consent of a spouse to a refund is valid only if it is in writing, signed, and witnessed by a notary public.
The board may waive the requirement of consent if the spouse is incapacitated or cannot be located or for any other reason specified by the board. Consent or waiver is effective only with regard to the spouse who is the subject of the consent or waiver.
Sec. 145.64. (A) As used in this section: (1) "Plan A" means a plan of payment that is the same as "plan A" as described in section 145.46 of the Revised Code. (2) "Plan B" means a plan of payment that is the same as "plan B" as described in section 145.46 of the Revised Code. (3) "Plan F" means a plan of payment that is the same as "plan F" as described in section 145.46 of the Revised Code. (B) A contributor who has not received a refund of amounts deposited under section 145.62 or the version of division (C) of section 145.23 of the Revised Code as it existed immediately prior to the effective date of this section may file an application with the public employees retirement system for a benefit under this section. The benefit shall consist of an annuity under a plan of payment described in division (A) of this section.
(1) Except as provided in division (B)(2) of this section, a contributor who is married at the time of application for a benefit under this section shall receive the benefit as a monthly annuity under "plan A."
(2) A contributor may receive a benefit under this section under a plan of payment other than "plan A" if one of the following is the case:
(a) The contributor is unmarried;
(b) The benefit application is accompanied by a statement of the spouse's consent to another plan of payment or the public employees retirement board waives the requirement that the spouse consent;
(c) A plan of payment providing for payment in a specified portion of the benefit continuing after the member's death to a former spouse is required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding division of marital property prior to the effective date of the contributor's benefit application.
(3) If a member is subject to division (B)(2)(c) of this section and the board has received a copy of the order described in that division, the board shall accept the member's election of a plan of payment under this section only if the member complies with both of the following:
(a) The member elects a plan of payment that is in accordance with the order described in division (B)(2)(c) of this section.
(b) If the member is married, the member elects "plan F" and designates the member's current spouse as a beneficiary under that plan unless that spouse consents in writing to not being designated a beneficiary or the board waives the requirement that the current spouse consent.
(4) The contributor shall designate the beneficiary or beneficiaries under a plan of payment in writing at the time the plan is selected. (5) A plan of payment, other than "plan B," shall be effective only if it is certified by an actuary engaged by the board to be the actuarial equivalent of the contributor's "plan B" annuity and is approved by the board.
(6) A contributor who is eligible to select a plan of payment under this section but fails to do so shall receive a monthly annuity under the plan of payment specified in rules adopted by the board.
(C) An annuity shall be paid monthly and consist of an amount determined by the public employees retirement system or the actuarial equivalent of that amount paid under a plan of payment described in this section. Payments shall begin on whichever of the following applies: (1) The effective date of the contributor's age and service retirement allowance; (2) The effective date of a benefit under section 145.384 of the Revised Code; (3) The date on which a member receiving disability retirement under section 145.36 of the Revised Code would have been eligible for an age and service retirement allowance.
(D) The consent of a spouse to a plan of payment other than "plan A" is valid only if it is in writing, signed, and witnessed by a notary public. The board may waive the requirement of consent if the spouse is incapacitated or cannot be located or for any other reason specified by the board. Consent or waiver is effective only with regard to the spouse who is the subject of the consent or waiver.
(E)(1) The death of a spouse or any designated beneficiary shall cancel the portion of an annuity providing continuing lifetime payments to the deceased spouse or deceased designated beneficiary. The contributor shall receive the actuarial equivalent of the contributor's remaining annuity, as determined by the board, based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. The change shall be effective the month following receipt by the board of notice of the death.
(2) On divorce, annulment, or marriage dissolution, a contributor receiving an annuity under a plan of payment that provides for continuation of all or part of the annuity after death for the lifetime of the contributor's surviving spouse may, with the written consent of the spouse or pursuant to an order of the court with jurisdiction over the termination of the marriage, elect to cancel the portion of the plan providing continuing lifetime payments to that spouse. The contributor shall receive the actuarial equivalent of the contributor's annuity as determined by the board based on the number of remaining beneficiaries, with no change in the amount payable to any remaining beneficiary. The election shall be made on a form provided by the board and shall be effective the month following its receipt by the board.
(F)(1) Following a marriage or remarriage, both of the following apply:
(a) A contributor who is receiving payments under "plan B" may elect a new plan of payment based on the actuarial equivalent of the contributor's "plan B" annuity as determined by the board.
(b) A contributor receiving an annuity under this section pursuant to a plan of payment providing for payment to a former spouse pursuant to a court order as described in division (B)(2)(c) of this section may elect a new plan of payment under "plan F" based on the actuarial equivalent of the contributor's benefit as determined by the board if the new plan of payment does not reduce the payment to the former spouse.
(2) An election under division (F)(1) of this section must be made not later than one year after the date of the marriage or remarriage.
The plan elected shall become effective on the date of receipt by the board of an application on a form approved by the board, but any change in the amount of the annuity payment shall commence on the first day of the month following the effective date of the plan.
(G) If at the time of death a contributor receiving a monthly annuity under "plan B" has received less than the retirant's deposits under section 145.62 or the version of division (C) of section 145.23 of the Revised Code as it existed immediately prior to the effective date of this section, plus earnings on those deposits, the difference between the amount received and the amount of the contributor's deposits plus earnings shall be paid to the contributor's beneficiary under section 145.65 of the Revised Code. If any designated beneficiary receiving a monthly annuity under this section dies and at the time of the beneficiary's death the amounts paid to the contributor and the beneficiary are less than the amount of the contributor's deposits plus earnings on those deposits, the difference between the amount received by the contributor and the beneficiary and the amount of the contributor's deposits plus earnings shall be paid to the beneficiary's estate.
(H)
Receipt of the first month's annuity payment constitutes final acceptance of the plan of payment and may be changed only as provided in this section.
Sec. 145.65. (A) As used in this section, "child," "parent," and "surviving spouse" have the same meanings as in section 145.43 of the Revised Code. (B) Should a contributor
die before commencement of a benefit under section 145.64 of the Revised Code, any deposits made under section 145.62 or the version of division (C) of section 145.23 of the Revised Code as it existed immediately prior to the effective date of this section
plus earnings shall be
paid to the person or persons
the contributor has designated in writing
duly executed on a form
provided by
the public employees
retirement system, signed by the contributor,
and filed
with the system
prior to the contributor's death. A contributor may
designate two or
more
persons as beneficiaries. Subject to rules adopted by the public employees retirement board, a contributor who designates two or more persons as beneficiaries under this division shall specify the percentage of the deposits that each beneficiary is to be paid. If the contributor has not specified the percentage, the deposits shall be divided equally among the beneficiaries. The last designation of any beneficiary
revokes all previous designations. The contributor's marriage,
divorce, marriage dissolution, legal separation, or refund under section 145.63 of the Revised Code, or the birth of the contributor's child, or
adoption of a
child,
shall constitute an automatic revocation of the contributor's
previous designation. If the deposits of a deceased contributor are
not
claimed by a beneficiary or by the estate of the deceased
contributor
within five years, the deposits
shall be transferred
to the
income fund and thereafter paid to the beneficiary
or to
the
contributor's estate on application to the system. The board
shall
formulate and adopt the necessary rules governing all
designations
of beneficiaries. (C) If a contributor
dies before commencement of a benefit under section 145.64 of the Revised Code and
is not survived by a designated beneficiary, the following shall
qualify with all attendant rights and privileges, in the following order of precedence, the contributor's: (2) Children, share and share alike; (3) Parents, share and share alike; If the beneficiary is deceased or is not located within
ninety days, the beneficiary ceases to qualify for any benefit
and
the beneficiary next in order of precedence shall qualify as
a
beneficiary. Any payment made to a beneficiary as determined by the
board shall be a full discharge and
release
to the board from any future claims. (D) If the validity of marriage cannot be established to
the
satisfaction of the board for the purpose of
disbursing
any amount due under sections 145.63 or 145.64 of
the Revised
Code, the board may accept a decision rendered by a
court having
jurisdiction in the state in which the contributor was
domiciled at the
time of death that the relationship constituted
a valid marriage
at the time of death, or the
"spouse" would have
the same status
as a widow or widower for purposes of sharing the
distribution of
the contributor's intestate personal property. (E) If the death of a contributor or any individual who
would
be eligible to receive a refund under section 145.63 of the Revised Code or an annuity payment under section 145.64 of the Revised Code by virtue of
the death of a contributor is caused
by a beneficiary, as described in division (F) of section 145.43 of the Revised Code, no amount due under section 145.63 or 145.64 of the Revised Code to that beneficiary
shall be paid to that beneficiary in the
absence of a
court order to the contrary filed with the board.
Sec. 145.82. (A) Except as provided in
divisions
(B)
and
(C)
of
this
section, sections 145.201 to 145.70 of the
Revised
Code do
not
apply to
a
PERS defined contribution plan, except that
a
PERS defined contribution plan may
incorporate provisions of
those sections
as specified in the plan document. (B) The following sections of Chapter 145. of the
Revised
Code
apply to
a
PERS defined contribution plan: 145.22, 145.221,
145.23,
145.25, 145.26, 145.27, 145.296,
145.38, 145.382,
145.383,
145.384, 145.391, 145.47,
145.48, 145.483,
145.51, 145.52, 145.53, 145.54,
145.55, 145.56,
145.563, 145.57,
145.571,
145.69,
and 145.70 of
the Revised Code.
(C) A PERS defined contribution plan that includes definitely
determinable benefits may incorporate by
reference all or part of
sections 145.201 to 145.79 of the Revised
Code to allow a member
participating in the plan to purchase
service credit or to be
eligible for any of the following: (1) Retirement, disability, survivor, or death benefits; (2) Health or long-term care insurance or any other type of
health care benefit; (3) Additional increases under section 145.323 of the
Revised
Code; (4) A refund of contributions made by or on behalf of a
member. With respect to the benefits described in division (C)(1) of
this section, the public employees retirement board may establish
eligibility requirements and benefit formulas or amounts that
differ from those of members participating in the PERS defined
benefit plan. With respect to the purchase of service credit by a
member participating in a PERS defined contribution plan, the
board may reduce the cost of the service credit to reflect the
different benefit formula established for the member.
Sec. 145.92. If a member participating in
a
PERS defined
contribution plan
is married at the
time
benefits under the plan
are to
commence,
unless the spouse consents to another plan
of
payment or the spouse's consent is waived, the member's retirement allowance under the plan shall
be
paid in a lesser amount payable for life and one-half of the
allowance continuing after death to the surviving spouse for the
life of the spouse. Consent is valid only if it is evidenced by
a written
document signed by the member spouse and the signature is
witnessed by a
notary public. A plan may waive
the requirement of
consent if the
spouse
is incapacitated or cannot be located or for
any
other
reason specified
by the plan or in
rules adopted by the public
employees
retirement board. A plan shall waive the requirement of consent if a plan of payment that provides for payment in a specified portion of the retirement allowance continuing after the member's death to a former spouse is required by a court order issued under section 3105.171 or 3105.65 of the Revised Code or laws of another state regarding division of marital property prior to the effective date of the member's retirement. If a court order requires this plan of payment, the member shall be required to annuitize the member's accumulated amounts in accordance with the order. If the member is married, the plan of payment selected by the member also shall provide for payment to the member's current spouse, unless the current spouse consents in writing to not being designated a beneficiary under the plan of payment or the current spouse's consent is waived by reason other than the court order. Consent or waiver is effective only with regard to the spouse
who
is the subject of the consent or waiver.
Sec. 742.046. (A) The office of an employee member, firefighter retirant member, or police retirant member of the board of trustees of the police and fire pension fund who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member, firefighter retirant member, or police retirant member of the board of trustees of the police and fire pension fund.
(B) A member of the board of trustees of the police and fire pension fund who willfully and flagrantly exercises authority or power not authorized by law, refuses or willfully neglects to enforce the law or to perform any official duty imposed by law, or is guilty of gross neglect of duty, gross immorality, drunkenness, misfeasance, malfeasance, or nonfeasance is guilty of misconduct in office. On complaint and hearing in the manner provided for in this section, the board member shall have judgment of forfeiture of the office with all its emoluments entered against the board member, creating in the office a vacancy to be filled as provided by law. (C) Proceedings for removal of a board member on any of the grounds enumerated in division (B) of this section shall be commenced by filing with the court of appeals common pleas of the district county in which the board member resides a written complaint specifically setting forth the charge. The complaint shall be accepted if signed by the governor or signed as follows:
(1) If the complaint is against a police officer employee member of the board, the complaint must be signed by a number of police officer members of the fund that equals at least the following and must include signatures of at least twenty police officer members residing in at least five different counties:
(a) If the police officer employee member was most recently elected in accordance with section 742.04 of the Revised Code, ten per cent of the number of police officers who voted in that election;
(b) If the police officer employee member most recently became a member of the board of trustees pursuant to section 742.05 of the Revised Code or took office in accordance with section 742.041 of the Revised Code, ten per cent of the number of police officers who voted in the most recent election held in accordance with section 742.04 of the Revised Code for that police officer employee member position on the board of trustees. (2) If the complaint is against a firefighter employee member of the board of trustees, the complaint must be signed by a number of firefighter members of the fund that equals at least the following and must include signatures of at least twenty firefighter members residing in at least five different counties:
(a) If the firefighter employee member was most recently elected in accordance with section 742.04 of the Revised Code, ten per cent of the number of firefighters who voted in that election;
(b) If the firefighter employee member most recently became a member of the board of trustees pursuant to section 742.05 of the Revised Code or took office in accordance with section 742.041 of the Revised Code, ten per cent of the number of firefighters who voted in the most recent election held in accordance with section 742.04 of the Revised Code for that firefighter employee member position on the board. (3) If the complaint is against the police retirant member of the board of trustees, the complaint must be signed by a number of police retirants that equals at least the following and must include signatures of at least twenty police retirants residing in at least five different counties:
(a) If the police retirant member was most recently elected in accordance with section 742.04 of the Revised Code, ten per cent of the number of police retirants who voted in that election;
(b) If the police retirant member most recently became a member of the board of trustees under section 742.05 of the Revised Code or took office in accordance with section 742.041 of the Revised Code, ten per cent of the number of police retirants who voted in the most recent election held in accordance with section 742.04 of the Revised Code for the police retirant member position on the board. (4) If the complaint is against the firefighter retirant member of the board of trustees, the complaint must be signed by a number of firefighter retirants that equals at least the following and must include signatures of at least twenty firefighter retirants residing in at least five different counties:
(a) If the firefighter retirant member was most recently elected in accordance with section 742.04 of the Revised Code, ten per cent of the number of firefighter retirants who voted in that election;
(b) If the firefighter retirant member most recently became a member of the board of trustees under section 742.05 of the Revised Code or took office in accordance with section 742.041 of the Revised Code, ten per cent of the number of firefighter retirants who voted in the most recent election held in accordance with section 742.04 of the Revised Code for the firefighter retirant member position on the board. (D) The clerk of the court of appeals common pleas in which a complaint against a member of the board of trustees is filed under division (A) of this section shall do both of the following with respect to the complaint: (1) Submit the signatures obtained pursuant to division (C) of this section to the board for purposes of verifying the validity of the signatures. The board shall verify the validity of the signatures and report its findings to the court. (2) Cause
a copy of the complaint to be served on the board member at least ten days before the hearing on the complaint. The court shall hold a public hearing not later than thirty days after the filing of the complaint. The court may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which the witness resides. Witness fees and other fees in connection with the proceedings shall be the same as in civil cases. The court may suspend the board member pending the hearing.
If the court finds that one or more of the charges in the complaint are true, it shall make a finding for removal of the board member. The court's finding shall include a full, detailed statement of the reasons for the removal. The finding shall be filed with the clerk of the court and be made a matter of public record. The board member has the right of review or to appeal to the supreme court on leave first obtained. The supreme court shall hear the case in not more than thirty court days after granting leave. In other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals. (E) No individual who has been removed from the board pursuant to this section shall be eligible to fill an elective or appointed position as a member of the board.
Sec. 742.05. (A) Any vacancy occurring in the term of a member
of the board of trustees of the Ohio police and fire
pension fund who is the fiscal
officer of a municipal corporation shall be filled by appointment by the
governor for the unexpired term of such member. If (B) Except as provided in division (C) of this section, if a vacancy occurs in the term of an employee or retirant member of
the board, all the remaining members of the board shall elect a successor employee or retirant member. On certification of the election results in accordance with rules adopted under section 742.045 of the Revised Code, the successor member shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor member's election, or until the end of the term for which the successor member was elected, whichever is sooner. Elections under this section to fill a vacancy on the board shall be conducted in accordance with rules adopted under section 742.045 of the Revised Code. If a member of the board who is the fiscal officer of a
municipal corporation ceases to be a fiscal officer of a
municipal corporation, a vacancy shall exist.
If an employee member of the board ceases to be a member of the fund, a
vacancy
shall exist. If as a result of changed circumstances a retirant member
no longer qualifies for membership on the board as a
retirant member, a vacancy shall exist. Any elected or appointed member of the board
who fails to attend three consecutive meetings of the board,
without valid excuse, shall be considered as having resigned from
the board and the board shall declare the member's office
vacated and as of the date of the adoption of a proper resolution a vacancy
shall exist. (C) A successor member need not be elected under division (B) of this section to fill a vacancy if on the day the vacancy occurs less than ninety days remain in the vacated term.
Sec. 742.381. Not later than March 1, 2000, and each
first day of March for the succeeding five years thereafter, the
board of trustees of the Ohio police and fire
pension fund shall make and submit a report for the preceding
fiscal year of the disability retirement experience of each
employer. The report shall specify the total number of
disability applications submitted, the status of each
application as of the last day of the fiscal year, total
applications granted or denied, and the percentage of disability
benefit recipients to the total number of the employer's
employees who are members of the fund. The report shall be
submitted to the governor, the
Ohio retirement study council,
and the chairpersons of the standing committees and subcommittees of
the senate and house of representatives with primary
responsibility for retirement legislation.
Sec. 742.451. The board of trustees of the Ohio police and fire pension fund may establish a
program under which a
member or a member's employer is permitted to
make additional deposits for
the purpose of providing funds for the payment of
health, medical, hospital, surgical,
dental, or vision care
expenses, including insurance premiums,
deductible amounts, or
copayments. The program may be a voluntary
employees' beneficiary
association, as described in section
501(c)(9) of the Internal
Revenue Code,
26 U.S.C. 501(c)(9), as
amended; an account described in section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h), as amended; a medical savings account; or a
similar type of program
under which an individual may accumulate
funds for the purpose of
paying such expenses. To implement the
program, the board may enter into
agreements with
insurance companies or other entities authorized
to conduct
business in this state. If the board establishes a program
under this section, it shall
adopt rules to
administer the program.
Sec. 742.56. (A) The board of trustees of the Ohio police
and fire pension fund may by rule establish a
payroll deduction
plan for payment of the following: (1) The cost of service credit members of the fund are
eligible to purchase under this chapter; (2) Charges for participation in programs established
under
section 742.53 of the Revised Code; (3) Deposits under section 742.451 of the Revised Code and any charges for participation in the program established under that section. (B) In addition to any other matter considered relevant by
the trustees, 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 the
member's employer and the Ohio police and fire pension fund
that
the member wishes to purchase service credit under this
chapter or
pay for participation in programs established under section
742.53
of the Revised Code and chooses to pay for it through
payroll
deduction; (3) The procedure to be followed by the fund 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, but shall provide that no deduction may
exceed
the member's net compensation after all deductions and
withholdings required by law. (4) The procedure to be followed by employers in
transmitting amounts deducted from the salaries of their
employees
to the fund; (5) The procedure to be followed by the fund in crediting
service credit to members who choose to purchase it through
payroll deduction. (C) If the trustees of the fund establish a payroll
deduction plan under this section, the trustees shall certify to
the member's employer for each member for which 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
on or
before the
last day of the month following the last day of the
reporting
period during
which the deductions are made. The
deduction shall
be accompanied by a report, in such form as the
board requires,
that includes the name of each member for whom
deductions were
made and the deductions attributed to that member.
If the employer
fails to transmit
the deductions or the report on
or before the
last day of the month following the last day of
the
reporting
period during which the deductions are made, a penalty
determined
under section 742.352
of the Revised Code
shall
be assessed
against the
employer. On
certification by the board
to the county
auditor of
an amount due
from an employer within the
county who is
subject to
this
division, by reason of the
employer's delinquency
in
transmitting
amounts due under this
division for past months,
those amounts
shall be withheld from the
employer from any funds
in the hands of
the county treasurer for
distribution to the
employer. On receipt
of the certification,
the county auditor
shall draw a warrant
against the funds in favor
of the Ohio police
and fire pension
fund for the amount. (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 the
member is
eligible to purchase.
Sec. 3307.06. (A) Annually on the first Monday of May, one
contributing member, as defined in division (D) of section 3307.05 of
the Revised Code, shall be elected by ballot to the state
teachers retirement board, except that, beginning with the annual
election for contributing members in May, 1978, and in the annual
election of each fourth year thereafter, two contributing members
shall be elected to the board. Elected contributing members shall
begin their respective terms of office on the first day of
September following their election and shall serve for a term of
four years. (B) The retired teacher members of the board, as defined in
division (E) of section 3307.05 of the Revised Code, shall be
elected for a term of four years. The
retired teacher members shall be elected to the board at the
annual election for contributing members of the board, as provided in
division (A) of this section, in the year in which the term of
the current retired teacher members would expire. The retired
teacher members shall begin their respective terms of office on
the first day of September following their election. No contributing member of the board who retires while a member
of the board shall be eligible to become a retired teacher member
of the board for three years after the date of the member's
retirement.
(C) If Except as provided in division (E) of this section, if a vacancy occurs during the term of office of any
elected member of the board, the remaining members of the board
shall elect a successor member. On certification of the election results in accordance with rules adopted under section 3307.075 of the Revised Code the successor member shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor member's election, or until the end of the term for which the successor member was elected, whichever is sooner. The successor member
shall
qualify for board membership under the same division of section
3307.05 of the Revised Code as the member's predecessor in
office. Elections under this division shall be conducted in accordance with rules adopted under section 3307.075 of the Revised Code. (D) If as a result of changed circumstances an elected
member of the board would no longer qualify for board membership
under that division of section 3307.05 of the Revised Code on the
basis of which the member was elected, or if such a member
fails to attend the meetings of the board for four months or longer,
without being excused, the member's position on the board
shall be considered vacant, and a successor member shall be elected, under this
division (C) of this section, for the remainder of the
unexpired term. (E) A successor member need not be elected under division (C) of this section to fill a vacancy if on the day the vacancy occurs less than ninety days remain in the vacated term.
Sec. 3307.061. (A) The office of a contributing member or retired teacher member of the state teachers retirement board who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of contributing or retired teacher member of the state teachers retirement board. (B) A member of the state teachers retirement board who willfully and flagrantly exercises authority or power not authorized by law, refuses or willfully neglects to enforce the law or to perform any official duty imposed by law, or is guilty of gross neglect of duty, gross immorality, drunkenness, misfeasance, malfeasance, or nonfeasance is guilty of misconduct in office. On complaint and hearing in the manner provided for in this section, the board member shall have judgment of forfeiture of the office with all its emoluments entered against the board member, creating in the office a vacancy to be filled as provided by law.
(C) Proceedings for removal of a board member on any of the grounds enumerated in division (B) of this section shall be commenced by filing with the court of appeals common pleas of the district county in which the board member resides a written complaint specifically setting forth the charge. The complaint shall be accepted if signed by the governor or signed as follows: (1) If the complaint is against a contributing member of the board, the complaint must be signed by a number of contributing members of the retirement system that equals at least the following and must include signatures of at least twenty contributing members residing in at least five different counties:
(a) If the contributing member was most recently elected in accordance with division (A) of section 3307.06 of the Revised Code, ten per cent of the number of contributing members of the system who voted in that election;
(b) If the contributing member was most recently elected under division (D) of section 3307.06 of the Revised Code or took office in accordance with section 3307.071 of the Revised Code, ten per cent of the number of contributing members of the system who voted in the most recent election held in accordance with division (A) of section 3307.06 of the Revised Code for that contributing member position on the board. (2) If the complaint is against a retired teacher member of the board, the complaint must be signed by a number of former members of the system who are superannuates, as defined in section 3307.01 of the Revised Code, that equals at least the following and must include signatures of at least twenty retired teacher members residing in at least five different counties:
(a) If the retired teacher member was most recently elected in accordance with division (C) of section 3307.06 of the Revised Code, ten per cent of the number of former members of the system who voted in that election;
(b) If the retired teacher member was most recently elected under division (D) of section 3307.06 of the Revised Code or took office in accordance with section 3307.071 of the Revised Code, ten per cent of the number of former members of the system who voted in the most recent election held in accordance with division (B) of section 3307.06 of the Revised Code for that retired teacher member position on the board. (D) The clerk of the court of appeals common pleas in which a complaint against a member of the state teachers retirement board is filed under division (C) of this section shall do both of the following with respect to the complaint:
(1) Submit the signatures obtained pursuant to division (C) of this section to the board for purposes of verifying the validity of the signatures. The board shall verify the validity of the signatures and report its findings to the court.
(2) Cause
a copy of the complaint to be served on the board member at least ten days before the hearing on the complaint. The court shall hold a public hearing not later than thirty days after the filing of the complaint. The court may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which the witness resides. Witness fees and other fees in connection with the proceedings shall be the same as in civil cases. The court may suspend the board member pending the hearing.
If the court finds that one or more of the charges in the complaint are true, it shall make a finding for removal of the board member. The court's finding shall include a full, detailed statement of the reasons for the removal. The finding shall be filed with the clerk of the court and be made a matter of public record. The board member has the right of review or to appeal to the supreme court on leave first obtained. The supreme court shall hear the case in not more than thirty court days after granting leave. In other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals. (E) No individual who has been removed from the board pursuant to this section shall be eligible to fill an elective or appointed position as a member of the board.
Sec. 3307.393. As used in this section, "STRS defined benefit plan" means the plan established under sections 3307.50 to 3307.79 of the Revised Code and "STRS defined contribution plan" means a plan established under section 3307.81 of the Revised Code. The STRS defined benefit plan or a STRS defined contribution plan may include a
program under which a
member participating in the plan or a member's employer is permitted to
make additional deposits for
the purpose of providing funds for the payment of
health, medical, hospital, surgical,
dental, or vision care
expenses, including insurance premiums,
deductible amounts, or
copayments. The program may be a voluntary
employees' beneficiary
association, as described in section
501(c)(9) of the Internal
Revenue Code,
26 U.S.C. 501(c)(9), as
amended; an account described in section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h), as amended; a medical savings account; or a
similar type of program
under which an individual may accumulate
funds for the purpose of
paying such expenses. To implement the
program, the state teachers retirement board may enter into
agreements with
insurance companies or other entities authorized
to conduct
business in this state. If the STRS defined benefit plan or a STRS defined contribution plan
includes a program
described in this section, the board shall
adopt rules to
establish and administer the program.
Sec. 3307.513. Not later than
September 1, 2000, and each first day of
September for the succeeding five years thereafter, the
state teachers retirement board shall make and submit a report
for the preceding fiscal year of the disability retirement
experience of each employer. The report shall specify the total
number of disability applications submitted under section 3307.62 of the
Revised Code,
the status of each
application as of the last day of the fiscal year, total
applications granted or denied, and the percentage of disability
benefit recipients, as defined in section 3307.50 of the Revised Code,
to the
total number of the employer's
employees who are members of the state teachers retirement
system. The report shall be submitted to the governor, the
Ohio retirement study council,
and the chairpersons of the standing committees and subcommittees of
the senate and house of representatives with primary
responsibility for retirement legislation.
Sec. 3307.70. (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
3307.71 or 3307.711 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 3307.391 of the Revised Code; (3) Deposits under section 3307.393 of the Revised Code and any charges for participating in the program established under that section. (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 for
informing the
member's
employer and the system that the member wishes to use payroll
deduction
to purchase service credit or pay for participation in programs
established under section 3307.391 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 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
3307.26 or
3307.28 of the Revised Code.
Sec. 3309.06. (A) Elections for employee and retirant members of the school
employees retirement board shall be held on the first Monday of March. Terms
of office of the employee and retirant members of the board shall
be for four years each, commencing on the first day of July following the
election and ending on the thirtieth day of June. The initial terms of the first
retirant member and the new employee member shall commence on July 1, 1984,
and end on June 30, 1988. (B) The initial election of the second retirant member shall be held at the first election that occurs later than ninety days after September 15, 2004. Subsequent elections shall be held each fourth year thereafter. (C) If Except as provided in division (E) of this section, if a vacancy occurs during the
term of an elected member of the board, the remaining members of
the board shall elect a successor member. On certification of the election results in accordance with rules adopted under section 3309.075 of the Revised Code, the successor member shall hold office until the first day of the new term that follows the next board election that occurs not less than ninety days after the successor member's election, or until the end of the term for which the successor member was elected, whichever is sooner. The successor member shall qualify for board membership under the same division of section 3309.05 of the Revised Code as the member's predecessor in office. Elections under this division shall be conducted in accordance with rules adopted under section 3309.075 of the Revised Code.
(D) Employee members or retirant members of
the board who fail to attend the meetings of the board for four months or
longer, without being excused, shall be considered as having resigned and
successors shall be elected for their unexpired terms pursuant to division (C) of this section. If as a result of
changed circumstances the retirant member would no longer qualify for
membership on the board as a retirant member, the office shall be considered
vacant, and a successor retirant member shall be elected pursuant to division (C) of this section. (E) A successor member need not be elected under division (C) of this section for a vacancy that occurs on or after the first day of March of the year in which the vacated term ends.
Sec. 3309.061. (A) The office of an employee member or retirant member of the school employees retirement board who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee or retirant member of the school employees retirement board. (B) A member of the school employees retirement board who willfully and flagrantly exercises authority or power not authorized by law, refuses or willfully neglects to enforce the law or to perform any official duty imposed by law, or is guilty of gross neglect of duty, gross immorality, drunkenness, misfeasance, malfeasance, or nonfeasance is guilty of misconduct in office. On complaint and hearing in the manner provided for in this section, the board member shall have judgment of forfeiture of the office with all its emoluments entered against the board member, creating in the office a vacancy to be filled as provided by law.
(C) Proceedings for removal of a board member on any of the grounds enumerated in division (B) of this section shall be commenced by filing with the court of appeals common pleas of the district county in which the board member resides a written complaint specifically setting forth the charge. The complaint shall be accepted if signed by the governor or signed as follows: (1) If the complaint is against an employee member of the board, the complaint must be signed by a number of members of the retirement system that equals at least the following and must include signatures of at least twenty employee members residing in at least five different counties:
(a) If the employee member was most recently elected in accordance with division (B) of section 3309.07 of the Revised Code, ten per cent of the number of members of the system who voted in that election;
(b) If the employee member most recently became a member of the board pursuant to section 3309.06 of the Revised Code to fill a vacancy in the board or took office in accordance with section 3309.061 of the Revised Code, ten per cent of the number of members of the system who voted in the most recent election held in accordance with division (B) of section 3309.07 of the Revised Code for that employee member position on the board. (2) If the complaint is against a retirant member of the board, the complaint must be signed by a number of system retirants that equals at least the following and must include signatures of at least twenty retirant members residing in at least five different counties:
(a) If the retirant member was most recently elected in accordance with division (C) of section 3309.07 of the Revised Code, ten per cent of the number of former members of the system who voted in that election;
(b) If the retirant member most recently became a member of the board pursuant to section 3309.06 of the Revised Code to fill a vacancy in the board or took office in accordance with section 3309.061 of the Revised Code, ten per cent of the number of former members of the system who voted in the most recent election held in accordance with division (C) of section 3309.07 of the Revised Code for that retirant member position on the board. (D) The clerk of the court of appeals common pleas in which a complaint against a board member is filed under division (C) of this section shall do both of the following with respect to the complaint:
(1) Submit the signatures obtained pursuant to division (C) of this section to the board for purposes of verifying the validity of the signatures. The board shall verify the validity of the signatures and report its findings to the court. (2) Cause a copy of the complaint to be served on the board member at least ten days before the hearing on the complaint. The court shall hold a public hearing not later than thirty days after the filing of the complaint. The court may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which the witness resides. Witness fees and other fees in connection with the proceedings shall be the same as in civil cases. The court may suspend the board member pending the hearing.
If the court finds that one or more of the charges in the complaint are true, it shall make a finding for removal of the board member. The court's finding shall include a full, detailed statement of the reasons for the removal. The finding shall be filed with the clerk of the court and be made a matter of public record. The board member has the right of review or to appeal to the supreme court on leave first obtained. The supreme court shall hear the case in not more than thirty court days after granting leave. In other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals. (E) No individual who has been removed from the board pursuant to this section shall be eligible to fill an elective or appointed position as a member of the board.
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; (3) Deposits under section 3309.692 of the Revised Code and any charges for participating in the program established under that section. (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 for
informing the
member's
employer and the system that 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 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. 3309.391. Not later than
September 1, 2000, and each first day of
September for the succeeding five years thereafter, the
school employees retirement board shall make and submit a report
for the preceding fiscal year of the disability retirement
experience of each employer. The report shall specify the total
number of disability applications submitted, the status of each
application as of the last day of the fiscal year, total
applications granted or denied, and the percentage of disability
benefit recipients to the total number of the employer's
employees who are members of the school employees retirement
system. The report shall be submitted to the governor, the
Ohio retirement study council,
and the chairpersons of the standing committees and subcommittees of
the senate and house of representatives with primary
responsibility for retirement legislation.
Sec. 3309.692. As used in this section, "SERS defined benefit plan" means the plan established under sections 3309.18 to 3309.70 of the Revised Code and "SERS defined contribution plan" means the plan established under section 3309.81 of the Revised Code. The SERS defined benefit plan or a SERS defined contribution plan may include a program under which a member participating in the plan or a member's employer is permitted to make additional deposits for the purpose of providing funds for the payment of health, medical, hospital, surgical, dental, or vision care expenses, including insurance premiums, deductible amounts, or copayments. The program may be a voluntary employees' beneficiary association, as described in section 501(c)(9) of the Internal Revenue Code, 26 U.S.C. 501(c)(9), as amended; an account described in section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h), as amended; a medical savings account; or a similar type of program under which an individual may accumulate funds for the purpose of paying such expenses. To implement the program, the school employees retirement board may enter into agreements with insurance companies or other entities authorized to conduct business in this state.
If the SERS defined benefit plan or a SERS defined contribution plan includes a program described in this section, the board shall adopt rules to administer the program. Sec. 5505.043. (A) The state highway patrol retirement board is not required to hold an election for a position on the board as a retirant member, or employee member, or vacancy for a retirant member or employee member if only one candidate has been nominated for the position or vacancy in accordance with rules governing the election adopted under section 5505.047 of the Revised Code. The candidate shall take office as if elected. In the case of a retirant member or employee member, and the term of office shall be four years beginning in August of the year the candidate was nominated. In the case of a vacancy, the candidate shall fill the unexpired term.
(B) The board is not required to hold an election for a vacated position on the board as a retirant member or employee member if either of the following is the case: (1) Only one candidate has been nominated for the vacancy in accordance with rules governing the election adopted under section 5505.047 of the Revised Code, in which case the candidate shall fill the unexpired term. (2) Less than ninety days remain in the member's term on the day that member's position becomes vacant. Sec. 5505.048. (A) The office of an employee member or retirant member of the state highway patrol retirement board who is convicted of or pleads guilty to a felony, a theft offense as defined in section 2913.01 of the Revised Code, or a violation of section 102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, 2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be deemed vacant. A person who has pleaded guilty to or been convicted of an offense of that nature is ineligible for election to the office of employee member or retirant member of the state highway patrol retirement board. (B) A member of the state highway patrol retirement board who willfully and flagrantly exercises authority or power not authorized by law, refuses or willfully neglects to enforce the law or to perform any official duty imposed by law, or is guilty of gross neglect of duty, gross immorality, drunkenness, misfeasance, malfeasance, or nonfeasance is guilty of misconduct in office. On complaint and hearing in the manner provided for in this section, the board member shall have judgment of forfeiture of the office with all its emoluments entered against the board member, creating in the office a vacancy to be filled as provided by law. (C) Proceedings for removal of a state retirement system board member on any of the grounds enumerated in division (B) of this section shall be commenced by filing with the court of appeals common pleas of the district county in which the board member resides a written complaint specifically setting forth the charge. The complaint shall be accepted if signed by the governor or signed as follows: (1) If the complaint is against an employee member of the board, the complaint must be signed by a number of members of the retirement system that equals at least the following and must include signatures of at least twenty employee members residing in at least five different counties:
(a) If the employee member was most recently elected in accordance with division (C)(2) of section 5505.04 of the Revised Code, ten per cent of the number of contributing members of the system who voted in that election;
(b) If the employee member was most recently elected to the board pursuant to division (C)(3) of section 5505.04 of the Revised Code or took office in accordance with division (C)(4) of that section, ten per cent of the number of contributing members of the system who voted in the most recent election held in accordance with division (C)(2) of section 5505.04 of the Revised Code for that employee member position on the board. (2) If the complaint is against the retirant member of the board, the complaint must be signed by a number of service and disability retirants that equals at least the following and must include signatures of at least twenty service and disability members residing in at least five different counties:
(a) If the retirant member was most recently elected in accordance with division (C)(1) of section 5505.04 of the Revised Code, ten per cent of the number of service and disability retirants who voted in that election;
(b) If the retirant member was most recently elected to the board pursuant to division (C)(3) of section 5505.04 of the Revised Code or took office in accordance with division (C)(4) of that section, ten per cent of the number of service and disability retirants who voted in the most recent election held in accordance with division (C)(1) of section 5505.04 of the Revised Code for that retirant member position on the board. (D) The clerk of the court of appeals common pleas in which a complaint against a board member is filed under division (C) of this section shall do both of the following with respect to the complaint:
(1) Submit the signatures obtained pursuant to division (C) of this section to the board for purposes of verifying the validity of the signatures. The board shall verify the validity of the signatures and report its findings to the court. (2) Cause a copy of the complaint to be served on the board member at least ten days before the hearing on the complaint. The court shall hold a public hearing not later than thirty days after the filing of the complaint. The court may subpoena witnesses and compel their attendance in the same manner as in civil cases. Process shall be served by the sheriff of the county in which the witness resides. Witness fees and other fees in connection with the proceedings shall be the same as in civil cases. The court may suspend the board member pending the hearing.
If the court finds that one or more of the charges in the complaint are true, it shall make a finding for removal of the board member. The court's finding shall include a full, detailed statement of the reasons for the removal. The finding shall be filed with the clerk of the court and be made a matter of public record. The board member has the right of review or to appeal to the supreme court on leave first obtained. The supreme court shall hear the case in not more than thirty court days after granting leave. In other respects, the hearing shall follow the regular procedure in appealable cases that originate in the court of appeals. (E) No individual who has been removed from the board pursuant to this section shall be eligible to fill an elective or appointed position as a member of the board.
Sec. 5505.181. Not later than
March 1, 2000, and each first day of
March for the succeeding five years thereafter, the
state highway patrol retirement board shall make and submit a
report for the preceding fiscal year of the disability
retirement experience of the state highway patrol. The report
shall specify the total number of disability applications
submitted, the status of each application as of the last day of
the fiscal year, total applications granted or denied, and the
percentage of disability benefit recipients to the total number
of the patrol's employees who are members of the state highway
patrol retirement system. The report shall be submitted to the
governor, the Ohio retirement
study council, and the chairpersons of the standing committees and
subcommittees of the senate and house of representatives with
primary responsibility for retirement legislation.
Sec. 5505.203. (A) The state highway patrol retirement
board may establish by rule a payroll deduction plan for payment
of the following: (1) The cost of restoring service credit under section
5505.20 of the Revised Code or purchasing any service credit
members of the state highway patrol retirement system are
eligible to purchase under this chapter; (2) Charges for participation in programs established
under section 5505.33 of the Revised Code; (3) Deposits under section 5505.281 of the Revised Code and any charges for participation in the program established under that section. (B) 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 the
member's employer and the system that he the member wishes
to purchase service credit under this chapter or pay for participation in
programs
established under section 5505.33 of the Revised Code 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. (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. 5505.281. The state highway patrol retirement board may establish a
program under which a
member or a member's employer is permitted to
make additional deposits for
the purpose of providing funds for the payment of
health, medical, hospital, surgical,
dental, or vision care
expenses, including insurance premiums,
deductible amounts, or
copayments. The program may be a voluntary
employees' beneficiary
association, as described in section
501(c)(9) of the Internal
Revenue Code,
26 U.S.C. 501(c)(9), as
amended; an account described in section 401(h) of the Internal Revenue Code, 26 U.S.C. 401(h), as amended; a medical savings account; or a
similar type of program
under which an individual may accumulate
funds for the purpose of
paying such expenses. To implement the
program, the board may enter into
agreements with
insurance companies or other entities authorized
to conduct
business in this state. If the board establishes a program
under this section, it shall
adopt rules to
administer the program.
Section 2. That existing sections 145.057, 145.06, 145.201, 145.23, 145.294, 145.351, 145.43, 145.45, 145.471, 145.472, 145.483, 145.51, 145.82, 145.92, 742.046, 742.05, 742.381, 742.56, 3307.06, 3307.061, 3307.513, 3307.70, 3309.06, 3309.061, 3309.27, 3309.391, 5505.043, 5505.048, 5505.181, and 5505.203 of the Revised Code are hereby repealed.
Section 3. Notwithstanding sections 742.03 and 742.04 of the Revised Code, the police retirant member of the Board of Trustees of the Ohio Police and Fire Pension Fund whose term of office commenced on June 2, 2003, shall serve a term of five years.
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