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H. B. No. 71 As IntroducedAs Introduced
126th General Assembly | Regular Session | 2005-2006 |
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Representatives J. Stewart, Martin, Hartnett, Seitz, Faber, Seaver, Reidelbach, White, Taylor, D. Evans, Bubp, Barrett, C. Evans, Latta, Perry, Ujvagi, Carano
A BILL
To amend sections 145.30, 145.301, 3307.58, 3307.751, and 3309.021 of the Revised Code to permit a member of the Public Employees Retirement System to purchase military service credit for inactive duty in the Ohio National Guard or reserves.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 145.30, 145.301, 3307.58, 3307.751, and 3309.021 of the Revised Code be amended to read as follows:
Sec. 145.30. (A) As used in this section and section 145.301 of the Revised
Code: (1) "Armed forces" of the United States includes the following: (a) Army, navy, air force, marine corps, coast guard, auxiliary corps as
established by congress, red cross nurse serving with the army, navy, air
force, or hospital service of the United States, army nurse corps, navy nurse
corps, full-time service with the American red cross in a combat zone, and
such other service as may be designated by congress as included therein; (b) Personnel of the Ohio national guard and the reserve components of any of
the armed forces enumerated in division (A)(1) of this section who are called
to active duty pursuant to an executive order issued by the president of the
United States or an act of congress; (c) Persons on whom United States merchant marine veteran status has been
conferred for service aboard oceangoing merchant ships in service to the
United States during World War II. (2) "State retirement system" means any of the following: the
Ohio police and
fire pension fund, public employees
retirement system,
school employees retirement system, state highway patrol retirement system, or
the state teachers retirement system. (B) Upon reemployment in the public service and completion of one year of
service credit as covered by a state retirement system or the Cincinnati
retirement system, within two years after service in the armed forces
that is terminated in a manner other than as described in section 4304 of
Title 38 of the United States Code, "Uniformed Services Employment and
Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 4304, and
presentation of documentation of the service and subject to rules adopted by
the retirement board, any member of the public employees retirement system who
was a member with not less than one year of payroll deductions before entering
active duty with the armed forces and maintained membership in the public
employees retirement system as provided by section 145.41 of the Revised Code,
and who was or is out of active service as a public employee by reason of
having become a member of the armed forces of the United States on active duty
or service shall have such service, not in excess of ten
years,
considered as the equivalent of prior service.
Service in the armed forces as
established by documentation of the service, not in excess of ten years, shall
also be considered prior service for a person who was a public employee and
who has acquired service credit for five years prior to, and within the one
year preceding, the date of entering on active duty in the armed forces of the
United States if such person was reemployed in the public service within one
year after service in the armed forces that
is terminated in a manner
other than as described in section 4304 of Title 38 of the United States Code,
"Uniformed Services Employment and Reemployment Rights Act of 1994," 108 Stat.
3149, 38 U.S.C.A. 4304, and established total service credit as defined in
section 145.01 of the Revised Code of twenty years exclusive of credit for
service in
the uniformed
services, as defined in section 145.302 of the Revised Code. This
division shall not serve to cancel any military service credit
earned or granted prior to November 1, 1965. (C) A member of the public employees retirement system is ineligible to
receive service credit under this section for any year of military service
credit used in the calculation of any retirement benefit currently being paid
to the member or payable in the future under any other retirement program,
except social security, or used to obtain service credit pursuant to section
145.301 or 145.302 of the Revised Code. At the time such credit is requested,
the member shall certify on a form supplied by the retirement board that the
member does and will conform to this requirement. This division does not
cancel any military service credit earned prior to March 15, 1979.
Sec. 145.301. (A) As used in this section:
(1) "Armed forces of the United States" includes both of the following:
(a) Army, navy, air force, marine corps, coast guard, auxiliary corps as established by congress, red cross nurse serving with the army, navy, air force, or hospital service of the United States, army nurse corps, navy nurse corps, full-time service with the American red cross in a combat zone, and such other service as may be designated by congress as included therein;
(b) Persons on whom United States merchant marine veteran status has been conferred for service aboard oceangoing merchant ships in service to the United States during World War II.
(2) "Prisoner of war" means any regularly appointed, enrolled, enlisted, or inducted member of the armed forces of the United States, reserves, or Ohio national guard who was captured, separated, and incarcerated by an enemy of the United States.
(3) "Reserves" means personnel of the reserve components of any of the armed forces of the United States enumerated in division (A)(1)(a) of this section.
(B) A member may purchase service credit
that shall be considered as the equivalent of Ohio service for
each year of service incurred by reason of having been on active
duty as a member of the armed forces of the United States, as
defined in section 145.30 of the Revised Code or active or inactive duty as a member of the reserves or Ohio national guard. The credit may be
purchased at any time prior to receipt of a retirement allowance. The
number of years purchased shall not
exceed five. The member may choose to purchase only part of such
credit in any one payment, subject to public employees retirement board
rules. (B) For the purposes of this division, "prisoner of war"
means any regularly appointed, enrolled, enlisted, or inducted
member of the armed forces of the United States who was captured,
separated, and incarcerated by an enemy of the United States.
(C) A member may purchase service credit that shall be
considered as the equivalent of Ohio service for each year of
service such member was a prisoner of war. The number of years
purchased under this division shall not exceed five. Service
credit may be purchased under this division for the same years of
service used to purchase service credit under division (A)(B) of
this section. The member may choose to purchase only part of
such credit in any one payment, subject to board rules. (C)(D) The total number of years purchased under this section
shall not exceed the member's total accumulated number of years
of Ohio service.
(D)(E) For each year of service purchased under division (A)(B)
or (B)(C) of this section, the member shall pay to the public
employees retirement system for credit to the member's
accumulated account
an amount specified by the retirement board that shall be not
less than the following:
(1) If the service credit is for active duty in the armed forces of the United States, reserves, or Ohio national guard or for service as a prisoner of war, fifty per cent of the additional liability resulting from the
purchase of that year of service as determined by an actuary employed by the
board; (2) If the service credit is for inactive duty in the reserves or Ohio national guard, seventy-five per cent of the additional liability resulting from the purchase of that year of service as determined by an actuary employed by the board. (E)(F) A member is ineligible to purchase service credit
under this section for any year of military service that was:
(1) Used in the
calculation of any retirement benefit currently being paid to the
member or payable in the future under any other retirement
program, except social security, or for retired pay
for nonregular service under Chapter 1223 of Section 1662 of Title
XVI of the "National Defense
Authorization Act for Fiscal Year 1995," 108 Stat. 2998 (1994), 10
U.S.C.A. 12731 to 12739; (2) Used to obtain service credit pursuant to section
145.30 or 145.302 of the Revised Code. At the time the credit is
purchased, the member shall certify on a form furnished by the
retirement board that the member does and will conform to
this requirement. (F)(G) A member who, on March 17, 2000, is
purchasing service credit under this section
by making installment payments to the system or by a payroll
deduction plan authorized under section 145.294 of the Revised
Code may elect, on a form provided by the board, to have a portion of the cost
of the service credit recalculated under
division (D)(E) of this section as amended by House
Bill 186 of the 123rd general assembly. The
recalculation shall apply only to the amount still owed by the member as of
the date the election
is filed with the board.
For each member who makes an election, the board shall do all of
the following: (1) Determine the amount of the total cost of the service credit
still owed by the member as of the date the election is filed with the
board and the number of years or portion of a year of service credit
attributable to that amount; (2) Recalculate under division (D)(E) of this section the cost of
the service credit described in division (F)(G)(1) of this section; (3) Notify the member of the recalculated amount. If the recalculated amount is less than the amount still owed by
the member as of the date the election is filed, the recalculated amount
shall be the amount owed by the member. (G)(H) Credit purchased under this section may be combined
pursuant to section 145.37 with credit for military service
purchased under sections 3307.751 and 3309.021,
except that not
more than an aggregate total of five years of credit purchased
under division (A)(B) of this section, division (A) of section
3307.751, and division (A) of section 3309.021, and
not more than
an aggregate total of five years of credit purchased under
division (B)(C) of this section, division (B) of section
3307.751,
and division (B) of section 3309.021 shall be used in determining
retirement eligibility or calculating benefits under section
145.37 of the Revised Code.
Sec. 3307.58. Any member participating in the plan
described
in sections 3307.50 to 3307.79 of the Revised Code who has five
years of
service
credit and has attained age sixty, or who has
twenty-five years
of service credit and has attained age
fifty-five, or who has
thirty years of service credit shall be
granted service
retirement after filing with the state teachers
retirement board
a completed application on a form approved by the
board. (A) Service retirement shall be effective on the first day
of the month next following the later of: (1) The last day for which compensation was paid; or (2) The attainment of minimum age or service credit
eligibility for benefits provided under this section. Except as provided in division (E) of this
section, the
service retirement benefit shall be the greater of
the benefits
provided in divisions (B) and (D) of this
section. (B) Subject to any adjustment made under division
(C) of
this section, the annual single lifetime benefit
of
a member shall
be the greater of the amounts determined by the
member's Ohio
service credit multiplied by one of the following: (2)(a) The sum of the following amounts: (i) For each of the first thirty years of Ohio service
credit, two and two-tenths per cent
of the member's final
average
salary
or, subject to the limitation described
in division
(B)(2)(b) of this section, two and
five-tenths per cent of the
member's final average salary if the
member has thirty-five or
more years of service credit under section 3307.53,
3307.57,
3307.75, 3307.751, 3307.752,
3307.761,
3307.763, 3307.77, or
3307.771 of the
Revised Code, division
(A)(2) or (B) of former
section 3307.513 of
the Revised Code, former
section 3307.514 of
the Revised Code,
section 3307.72
of the Revised Code earned after
July 1, 1978, or
any combination
of service credit under those
sections; (ii) For each year or fraction of a year of Ohio service
credit
in excess of thirty years, two and two-tenths per cent of
the member's final
average salary or, subject
to the limitation
described in division (B)(2)(b) of
this section,
if the member has
more than thirty years service
credit under section
3307.53,
3307.57, 3307.75, 3307.751, 3307.752, 3307.761,
3307.763,
3307.77,
or
3307.771 of the
Revised Code, division (A)(2) or (B) of former
section
3307.513 of the Revised Code, former section 3307.514 of
the Revised Code, section 3307.72 of the Revised Code earned
after
July 1, 1978, or any combination of service credit
under those
sections,
the per cent of final average salary shown in the
following schedule
for each corresponding year or
fraction of a
year of service credit under those
sections
that is in excess of
thirty years:
Year |
Per |
Year |
Per |
of |
Cent |
of |
Cent |
Service |
for that |
Service |
for that |
Credit |
Year |
Credit |
Year |
30.01 - 31.00 |
2.5% |
35.01 - 36.00 |
3.0% |
31.01 - 32.00 |
2.6 |
36.01 - 37.00 |
3.1 |
32.01 - 33.00 |
2.7 |
37.01 - 38.00 |
3.2 |
33.01 - 34.00 |
2.8 |
38.01 - 39.00 |
3.3 |
34.01 - 35.00 |
2.9 |
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For purposes of this schedule, years of service
credit shall be
rounded to the nearest one-hundredth of a year. (b) For purposes of division (B)(2)(a)
of this section, a
percentage of final average salary in excess of two and two-tenths
per
cent shall be applied to service credit under section 3307.57
of the Revised Code only if the service credit was
established
under section
145.30, 145.301, 145.302, 145.47, 145.483, 3309.02,
3309.021, 3309.022,
or 3309.47 of the Revised Code or,
restored
under
section 145.31 or 3309.26 of the
Revised Code, purchased under division (B) of section 145.301 of the Revised Code for service in the active duty of the armed forces of the United States, reserves, or Ohio national guard, or purchased under division (C) of section 145.301 of the Revised Code. (C) The annual single lifetime benefit of a member
determined under division (B) of this section shall be
adjusted by
the greater per cent shown in the following schedule
opposite the
member's attained age or Ohio service credit.
|
Years of |
Per Cent |
Attained
|
or |
Ohio Service |
of Base |
Age |
Credit |
Amount |
58 |
25 |
75% |
59 |
26 |
80 |
60 |
27 |
85 |
61 |
|
88 |
|
28 |
90 |
62 |
|
91 |
63 |
|
94 |
|
29 |
95 |
64 |
|
97 |
65 |
30 or more |
100 |
Members shall vest the right to a benefit in accordance with
the
following schedule, based on the member's attained age by
September 1, 1976:
|
|
Per Cent |
|
|
Attained |
of Base |
|
|
Age |
Amount |
|
|
66 |
102% |
|
|
67 |
104 |
|
|
68 |
106 |
|
|
69 |
108 |
|
|
70 or more |
110 |
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The annual single lifetime benefit determined under
division
(B) of this section shall not exceed the
lesser of one
hundred per
cent
of the final average salary or the limit established by
section
415 of the "Internal Revenue Code of 1986," 100 Stat.
2085, 26
U.S.C.A. 415, as amended. (D) The annual single lifetime benefit of a member shall
not
exceed the lesser of the sum of the following amounts or the
limit
established by section 415 of the "Internal Revenue Code of
1986,"
100 Stat. 2085, 26 U.S.C.A. 415, as amended: (1) An annuity with a reserve equal to the member's
accumulated contributions; (2) A pension equal to the amount in division (D)(1) of
this
section; (3) An additional pension of forty dollars annually
multiplied by the number of years of prior and military service
credit, except years of credit purchased under section
3307.751 or
3307.752
of the Revised Code; (4) An additional basic annual pension of one hundred
eighty
dollars, provided the member had ten or more years of Ohio
service
credit as of October 1, 1956, except that the
additional basic
annual pension shall not exceed the sum of the annual
benefits
provided by divisions (D)(1), (2), and (3) of this
section. (E) Benefits determined under this section shall be paid
as
provided in section 3307.60 of the Revised Code.
Sec. 3307.751. (A) A member participating in the
plan described in sections 3307.50 to 3307.79 of the Revised Code may purchase
service
credit
that shall be considered as the equivalent of Ohio service for
each year of service incurred by reason of having been on active
duty as a member of the armed forces of the United States, as
defined in section 3307.75 of the Revised Code. The
credit may
be purchased at any time prior to the effective date of a benefit. The
number of years purchased under
this division shall not exceed five. (B) For the purposes of this division, "prisoner of war"
means any regularly appointed, enrolled, enlisted, or inducted
member of the armed forces of the United States who was captured,
separated, and incarcerated by an enemy of the United States. A member participating in the plan described in sections 3307.50 to 3307.79
of the Revised Code may purchase service credit that shall be
considered as the equivalent of Ohio service for each year of
service such member was a prisoner of war. The number of years
purchased under this division shall not exceed five. Service
credit may be purchased under this division for the same years of
service used to purchase service credit under division (A) of
this section. (C) The total number of years purchased under this section
shall not exceed the member's total accumulated number of years
of Ohio service. (D)(1) Except as otherwise provided in division (D)(2) of
this section, for each year of service purchased under division
(A) or (B) of this section, the member shall pay to the state
teachers retirement system for credit to the member's
accumulated account
an amount determined by the member rate of contribution in effect
at the time the military service began multiplied by the
member's annual
compensation for full-time employment during the first year of
service in Ohio following termination of military service. If,
however, a limit on maximum salary or maximum contribution was in
effect at the time the military service began, the limit shall be
applied to the salary received during the first year of service
in Ohio to calculate the amount of payment. To this amount shall
be added an amount equal to compound interest at a rate
established by the state teachers retirement board from the date
active military service terminated to date of payment. (2) For each year of service purchased under division (A)
or (B) of this section for military service that commenced on or
after July 1, 1989, and, without regard to when the military
service commenced, for each year of service purchased under
division (A) or (B) of this section by a member who first
established membership in the retirement system on or after July
1, 1989, the member shall pay to the retirement system for credit
to the member's individual account an amount specified by
the state
teachers retirement board that shall be not less than fifty per
cent of the additional liability resulting from the purchase of
that year of service as determined by an actuary employed by the
board. (3) A member may choose to purchase only part of the
credit the member is eligible to purchase under this section
in any one
payment, subject to board rules. (E) A member of the state teachers retirement system is
ineligible to purchase service credit under this section for any
year of military service that was: (1) Used in the calculation of any
retirement benefit currently being paid to such member or payable
in the future under any other retirement program, except for
retired pay for non-regular service under Chapter 1223 of
Section 1662 of
Title XVI of the "National Defense
Authorization Act for Fiscal Year 1995,"
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social
security; (2) Used to obtain service credit pursuant to section
3307.75 or 3307.752
of the Revised Code. At the time the credit is
purchased, the member shall certify on a form furnished by the
board that the member does and will conform to
this
requirement. (F) Credit (1) Subject to division (F)(2) of this section, credit purchased under this section may be combined
pursuant to section 3307.57 of the Revised Code with
credit for
military service purchased under sections 145.301 and section 3309.021 of
the Revised Code, except that not, division (B) of section 145.301 of the Revised Code for active duty in the armed forces of the United States, reserves, or Ohio national guard, and division (C) of section 145.301 of the Revised Code. (2) Not more than a total of five years
of credit purchased under division (A) of this section, division
(A)(B) of section 145.301 for active duty in the armed forces of the United States, reserves, or Ohio national guard, and division (A) of section 3309.021 and
not more than a total of five years of credit purchased under
division (B) of this section, division (B)(C) of section 145.301,
and division (B) of section 3309.021 of the Revised Code shall be
used in determining retirement eligibility or calculating
benefits under section 3307.57 of the Revised Code.
Sec. 3309.021. (A) A member may purchase service credit
that shall be considered as the equivalent of Ohio service for
each year of service incurred by reason of having been on active
duty as a member of the armed forces of the United States, as
defined in section 3309.02 of the Revised Code. All or part of
the credit may be purchased at any time prior to receipt of a retirement
allowance. The number of years
purchased under this division shall not exceed five. (B) For the purposes of this division, "prisoner of war"
means any regularly appointed, enrolled, enlisted, or inducted
member of the armed forces of the United States who was captured,
separated, and incarcerated by an enemy of the United States. A member may purchase service credit that shall be
considered as the equivalent of Ohio service for each year of
service such member was a prisoner of war. The number of years
purchased under this division shall not exceed five. Service
credit may be purchased under this division for the same years of
service used to purchase service credit under division (A) of
this section. The member may choose to purchase only part of
such credit in any one payment, subject to board rules. (C) The total number of years purchased under this section
shall not exceed the member's total accumulated number of years
of Ohio service. (D) For each year of service purchased under division (A)
or (B) of this section, the member shall pay to the school
employees retirement system for credit to the member's
accumulated account
an amount determined by the member rate of contribution in effect
at the time the military service began multiplied by the annual
compensation for full-time employment during the first year of
service covered by the school employees retirement system,
public employees retirement system, or state teachers retirement system
following termination of military service. If,
however, a limit on maximum salary or maximum contribution was in
effect at the time the military service began, the limit shall be
applied to the salary received during the first year of service
in Ohio to calculate the amount of payment. To this amount shall
be added an amount equal to compound interest at a rate
established by the school employees retirement board from the
date of the member's first service covered by the school
employees retirement system, public employees retirement system, or state
teachers retirement system following termination of the military service
to date of payment. (E) A member of the school employees retirement system is
ineligible to purchase service credit under this section for any
year of military service that was: (1) Used in the calculation of any
retirement benefit currently being paid to the member or payable
in the future under any other retirement program, except for
retired pay for nonregular service under Chapter 1223 of
Section 1662 of
Title XVI of the "National Defense
Authorization Act for Fiscal Year 1995,"
108 Stat. 2998 (1994), 10 U.S.C.A. 12731 to 12739, or social
security; (2) Used to obtain service credit pursuant to section 3309.02 or 3309.022
of the Revised Code. At the time such credit
is purchased, the member shall certify on a form furnished by the
retirement board that the member does and will conform to
this
requirement. (F) Credit (1) Subject to division (F)(2) of this section, credit purchased under this section may be combined
pursuant to section 3309.35 of the Revised Code with credit for
military service purchased under sections 145.301 and
section 3307.751 of
the Revised Code, except that not, division (B) of section 145.301 of the Revised Code for active duty in the armed forces of the United States, reserves, or Ohio national guard, and division (C) of section 145.301 of the Revised Code. (2) Not more than an aggregate total of
five years of credit purchased under division (A) of this
section, division (A)(B) of section 145.301 for active duty in the armed forces of the United States, reserves, or Ohio national guard, and division (A) of
section 3307.751 of the Revised Code, and not more
than an
aggregate total of five years of credit purchased under division
(B) of this section, division (B)(C) of section 145.301, and
division (B) of section 3307.751 of the Revised Code
shall be
used in determining retirement eligibility or calculating
benefits under section 3309.35 of the Revised Code.
Section 2. That existing sections 145.30, 145.301, 3307.58, 3307.751, and 3309.021 of the Revised Code are hereby repealed.
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