Bill Text: OH HB69 | 2011-2012 | 129th General Assembly | Introduced


Bill Title: Regarding the state retirement systems.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-02-01 - To Health & Aging [HB69 Detail]

Download: Ohio-2011-HB69-Introduced.html
As Introduced

129th General Assembly
Regular Session
2011-2012
H. B. No. 69


Representative Wachtmann 



A BILL
To amend sections 145.01, 145.20, 145.201, 145.22, 1
145.28, 145.29, 145.291, 145.293, 145.294, 2
145.295, 145.297, 145.298, 145.299, 145.2911, 3
145.2912, 145.2913, 145.2914, 145.30, 145.32, 4
145.323, 145.33, 145.331, 145.34, 145.35, 145.36, 5
145.361, 145.362, 145.37, 145.383, 145.39, 145.40, 6
145.401, 145.41, 145.44, 145.45, 145.452, 145.462, 7
145.47, 145.48, 145.483, 145.49, 145.51, 145.54, 8
145.56, 145.561, 145.563, 145.58, 145.82, 145.87, 9
145.92, 145.95, 145.97, 742.01, 742.31, 742.33, 10
742.34, 742.35, 742.37, 742.3716, 742.38, 742.39, 11
742.44, 742.444, 742.63, 2329.66, 3305.06, 12
3307.26, 3307.501, 3307.58, 3307.67, 3309.26, 13
3309.312, 3309.33, 3309.34, 3309.341, 3309.343, 14
3309.353, 3309.354, 3309.36, 3309.362, 3309.371, 15
3309.373, 3309.376, 3309.379, 3309.3710, 16
3309.3711, 3309.39, 3309.401, 3309.45, 3309.46, 17
3309.69, 3375.411, 5505.01, 5505.03, 5505.15, 18
5505.174, and 5505.54; to amend, for the purpose 19
of adopting new section numbers as indicated in 20
parentheses, sections 145.29 (145.292) and 145.325 21
(145.584); to enact new sections 145.29 and 22
145.332 and sections 145.016, 145.017, 145.036, 23
145.037, 145.038, 145.2915, 145.2916, 145.363, 24
145.573, 2901.431, and 2929.193; and to repeal 25
sections 145.02, 145.292, 145.321, 145.322, 26
145.324, 145.326, 145.327, 145.328, 145.329, 27
145.3210, 145.3211, 145.3212, 145.3213, 145.332, 28
145.42, 145.44, and 3309.38 of the Revised Code 29
regarding the state retirement systems.30


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

       Section 1. That sections 145.01, 145.20, 145.201, 145.22, 31
145.28, 145.29, 145.291, 145.293, 145.294, 145.295, 145.297, 32
145.298, 145.299, 145.2911, 145.2912, 145.2913, 145.2914, 145.30, 33
145.32, 145.323, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 34
145.362, 145.37, 145.383, 145.39, 145.40, 145.401, 145.41, 145.44, 35
145.45, 145.452, 145.462, 145.47, 145.48, 145.483, 145.49, 145.51, 36
145.54, 145.56, 145.561, 145.563, 145.58, 145.82, 145.87, 145.92, 37
145.95, 145.97, 742.01, 742.31, 742.33, 742.34, 742.35, 742.37, 38
742.3716, 742.38, 742.39, 742.44, 742.444, 742.63, 2329.66, 39
3305.06, 3307.26, 3307.501, 3307.58, 3307.67, 3309.26, 3309.312, 40
3309.33, 3309.34, 3309.341, 3309.343, 3309.353, 3309.354, 3309.36, 41
3309.362, 3309.371, 3309.373, 3309.376, 3309.379, 3309.3710, 42
3309.3711, 3309.39, 3309.401, 3309.45, 3309.46, 3309.69, 3375.411, 43
5505.01, 5505.03, 5505.15, 5505.174, and 5505.54 be amended; 44
sections 145.29 (145.292) and 145.325 (145.584) be amended for the 45
purpose of adopting new section numbers as indicated in 46
parentheses; and new sections 145.29 and 145.332 and sections 47
145.016, 145.017, 145.036, 145.037, 145.038, 145.2915, 145.2916, 48
145.363, 145.573, 2901.431, and 2929.193 of the Revised Code be 49
enacted to read as follows:50

       Sec. 145.01.  As used in this chapter:51

       (A) "Public employee" means:52

       (1) Any person holding an office, not elective, under the 53
state or any county, township, municipal corporation, park 54
district, conservancy district, sanitary district, health 55
district, metropolitan housing authority, state retirement board, 56
Ohio historical society, public library, county law library, union 57
cemetery, joint hospital, institutional commissary, state 58
university, or board, bureau, commission, council, committee, 59
authority, or administrative body as the same are, or have been, 60
created by action of the general assembly or by the legislative 61
authority of any of the units of local government named in 62
division (A)(1) of this section, or employed and paid in whole or 63
in part by the state or any of the authorities named in division 64
(A)(1) of this section in any capacity not covered by section 65
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.66

       (2) A person who is a member of the public employees 67
retirement system and who continues to perform the same or similar 68
duties under the direction of a contractor who has contracted to 69
take over what before the date of the contract was a publicly 70
operated function. The governmental unit with which the contract 71
has been made shall be deemed the employer for the purposes of 72
administering this chapter.73

       (3) Any person who is an employee of a public employer, 74
notwithstanding that the person's compensation for that employment 75
is derived from funds of a person or entity other than the 76
employer. Credit for such service shall be included as total 77
service credit, provided that the employee makes the payments 78
required by this chapter, and the employer makes the payments 79
required by sections 145.48 and 145.51 of the Revised Code.80

       (4) A person who elects in accordance with section 145.015 of 81
the Revised Code to remain a contributing member of the public 82
employees retirement system.83

       In all cases of doubt, the public employees retirement board 84
shall determine under section 145.036, 145.037, or 145.038 of the 85
Revised Code whether any person is a public employee, and its 86
decision is final.87

       (B) "Member" means any public employee, other than a public 88
employee excluded or exempted from membership in the retirement 89
system by section 145.03, 145.031, 145.032, 145.033, 145.034, 90
145.035, or 145.38 of the Revised Code. "Member" includes a PERS 91
retirant who becomes a member under division (C)(D) of section 92
145.38 of the Revised Code. "Member" also includes a disability 93
benefit recipient.94

       (C) "Head of the department" means the elective or appointive 95
head of the several executive, judicial, and administrative 96
departments, institutions, boards, and commissions of the state 97
and local government as the same are created and defined by the 98
laws of this state or, in case of a charter government, by that 99
charter.100

       (D) "Employer" or "public employer" means the state or any 101
county, township, municipal corporation, park district, 102
conservancy district, sanitary district, health district, 103
metropolitan housing authority, state retirement board, Ohio 104
historical society, public library, county law library, union 105
cemetery, joint hospital, institutional commissary, state medical 106
college, state university, or board, bureau, commission, council, 107
committee, authority, or administrative body as the same are, or 108
have been, created by action of the general assembly or by the 109
legislative authority of any of the units of local government 110
named in this division not covered by section 742.01, 3307.01, 111
3309.01, or 5505.01 of the Revised Code. In addition, "employer" 112
means the employer of any public employee.113

       (E) "Prior service" means all service as a public employee 114
rendered before January 1, 1935, and all service as an employee of 115
any employer who comes within the state teachers retirement system 116
or of the school employees retirement system or of any other 117
retirement system established under the laws of this state 118
rendered prior to January 1, 1935, provided that if the employee 119
claiming the service was employed in any capacity covered by that 120
other system after that other system was established, credit for 121
the service may be allowed by the public employees retirement 122
system only when the employee has made payment, to be computed on 123
the salary earned from the date of appointment to the date 124
membership was established in the public employees retirement 125
system, at the rate in effect at the time of payment, and the 126
employer has made payment of the corresponding full liability as 127
provided by section 145.44 of the Revised Code. "Prior military128
service" also means all service credited for active duty with the 129
armed forces of the United States as provided in section 145.30 of 130
the Revised Code. 131

       If an employee who has been granted prior service credit by 132
the public employees retirement system for service rendered prior 133
to January 1, 1935, as an employee of a board of education 134
establishes, before retirement, one year or more of contributing 135
service in the state teachers retirement system or school 136
employees retirement system, then the prior service ceases to be 137
the liability of this system. 138

       If the board determines that a position of any member in any 139
calendar year prior to January 1, 1935, was a part-time position, 140
the board shall determine what fractional part of a year's credit 141
shall be allowed by the following formula: 142

       (1) When the member has been either elected or appointed to 143
an office the term of which was two or more years and for which an 144
annual salary is established, the fractional part of the year's 145
credit shall be computed as follows: 146

       First, when the member's annual salary is one thousand 147
dollars or less, the service credit for each such calendar year 148
shall be forty per cent of a year. 149

       Second, for each full one hundred dollars of annual salary 150
above one thousand dollars, the member's service credit for each 151
such calendar year shall be increased by two and one-half per 152
cent. 153

       (2) When the member is paid on a per diem basis, the service 154
credit for any single year of the service shall be determined by 155
using the number of days of service for which the compensation was 156
received in any such year as a numerator and using two hundred 157
fifty days as a denominator.158

       (3) When the member is paid on an hourly basis, the service 159
credit for any single year of the service shall be determined by 160
using the number of hours of service for which the compensation 161
was received in any such year as a numerator and using two 162
thousand hours as a denominator. 163

       (F) "Contributor" means any person who has an account in the 164
employees' savings fund created by section 145.23 of the Revised 165
Code. When used in the sections listed in division (B) of section 166
145.82 of the Revised Code, "contributor" includes any person 167
participating in a PERS defined contribution plan.168

       (G) "Beneficiary" or "beneficiaries" means the estate or a 169
person or persons who, as the result of the death of a member, 170
contributor, or retirant, qualify for or are receiving some right 171
or benefit under this chapter.172

       (H)(1) "Total service credit," except as provided in section 173
145.37 of the Revised Code, means all service credited to a member 174
of the retirement system since last becoming a member, including 175
restored service credit as provided by section 145.31 of the 176
Revised Code; credit purchased under sections 145.293 and 145.299 177
of the Revised Code; all the member's prior service credit; all 178
the member's military service credit computed as provided in this 179
chapter; all service credit established pursuant to section 180
145.297 of the Revised Code; and any other service credited under 181
this chapter. In addition, "total service credit" includes any 182
period, not in excess of three years, during which a member was 183
out of service and receiving benefits under Chapters 4121. and 184
4123. of the Revised Code. For the exclusive purpose of satisfying 185
the service credit requirement and of determining eligibility for 186
benefits under sections 145.32, 145.33, 145.331, 145.35, 145.36, 187
and 145.361 of the Revised Code, "five or more years of total 188
service credit" means sixty or more calendar months of 189
contributing service in this system.190

       (2) "One and one-half years of contributing service credit," 191
as used in division (B) of section 145.45 of the Revised Code, 192
also means eighteen or more calendar months of employment by a 193
municipal corporation that formerly operated its own retirement 194
plan for its employees or a part of its employees, provided that 195
all employees of that municipal retirement plan who have eighteen 196
or more months of such employment, upon establishing membership in 197
the public employees retirement system, shall make a payment of 198
the contributions they would have paid had they been members of 199
this system for the eighteen months of employment preceding the 200
date membership was established. When that payment has been made 201
by all such employee members, a corresponding payment shall be 202
paid into the employers' accumulation fund by that municipal 203
corporation as the employer of the employees.204

       (3) Where a member also is a member of the state teachers 205
retirement system or the school employees retirement system, or 206
both, except in cases of retirement on a combined basis pursuant 207
to section 145.37 of the Revised Code or as provided in section 208
145.383 of the Revised Code, service credit for any period shall 209
be credited on the basis of the ratio that contributions to the 210
public employees retirement system bear to total contributions in 211
all state retirement systems.212

       (4) Not more than one year of credit may be given for any 213
period of twelve months.214

       (5) "Ohio service credit" means credit for service that was 215
rendered to the state or any of its political subdivisions or any 216
employer.217

       (I) "Regular interest" means interest at any rates for the 218
respective funds and accounts as the public employees retirement 219
board may determine from time to time.220

       (J) "Accumulated contributions" means the sum of all amounts 221
credited to a contributor's individual account in the employees' 222
savings fund together with any interest credited to the 223
contributor's account under section 145.471 or 145.472 of the 224
Revised Code.225

       (K)(1) "Final average salary" means the quotient obtained by 226
dividing by threethe appropriate number specified in section 227
145.017 of the Revised Code the sum of the threethat number of228
full calendar years of contributing service in which the member's 229
earnable salary was highest, except that if the member has a 230
partial year of contributing service in the year the member's 231
employment terminates and the member's earnable salary for the 232
partial year is higher than for any comparable period in the three233
specified number of years, the member's earnable salary for the 234
partial year shall be substituted for the member's earnable salary 235
for the comparable period during the three years in which the 236
member's earnable salary was lowest.237

       (2) If a member has less than threethe specified number of238
years of contributing service, the member's final average salary 239
shall be the member's total earnable salary divided by the total 240
number of years, including any fraction of a year, of the member's 241
contributing service.242

       (3) For the purpose of calculating benefits payable to a 243
member qualifying for service credit under division (Z)(Y) of this 244
section, "final average salary" means the total earnable salary on 245
which contributions were made divided by the total number of years 246
during which contributions were made, including any fraction of a 247
year. If contributions were made for less than twelve months, 248
"final average salary" means the member's total earnable salary.249

       (L) "Annuity" means payments for life derived from 250
contributions made by a contributor and paid from the annuity and 251
pension reserve fund as provided in this chapter. All annuities 252
shall be paid in twelve equal monthly installments.253

       (M) "Annuity reserve" means the present value, computed upon 254
the basis of the mortality and other tables adopted by the board, 255
of all payments to be made on account of any annuity, or benefit 256
in lieu of any annuity, granted to a retirant as provided in this 257
chapter.258

       (N)(1) "Disability retirement" means retirement as provided 259
in section 145.36 of the Revised Code.260

       (2) "Disability allowance" means an allowance paid on account 261
of disability under section 145.361 of the Revised Code.262

       (3) "Disability benefit" means a benefit paid as disability 263
retirement under section 145.36 of the Revised Code, as a 264
disability allowance under section 145.361 of the Revised Code, or 265
as a disability benefit under section 145.37 of the Revised Code.266

       (4) "Disability benefit recipient" means a member who is 267
receiving a disability benefit.268

       (O) "Age and service retirement" means retirement as provided 269
in sections 145.32, 145.33, 145.331, 145.34, 145.37, and 145.46 of 270
the Revised Code.271

       (P) "Pensions" means annual payments for life derived from 272
contributions made by the employer that at the time of retirement 273
are credited into the annuity and pension reserve fund from the 274
employers' accumulation fund and paid from the annuity and pension 275
reserve fund as provided in this chapter. All pensions shall be 276
paid in twelve equal monthly installments.277

       (Q) "Retirement allowance" means the pension plus that 278
portion of the benefit derived from contributions made by the 279
member.280

       (R)(1) Except as otherwise provided in division (R) of this 281
section, "earnable salary" means all salary, wages, and other 282
earnings paid to a contributor by reason of employment in a 283
position covered by the retirement system. The salary, wages, and 284
other earnings shall be determined prior to determination of the 285
amount required to be contributed to the employees' savings fund 286
under section 145.47 of the Revised Code and without regard to 287
whether any of the salary, wages, or other earnings are treated as 288
deferred income for federal income tax purposes. "Earnable salary" 289
includes the following:290

       (a) Payments made by the employer in lieu of salary, wages, 291
or other earnings for sick leave, personal leave, or vacation used 292
by the contributor;293

       (b) Payments made by the employer for the conversion of sick 294
leave, personal leave, and vacation leave accrued, but not used if 295
the payment is made during the year in which the leave is accrued, 296
except that payments made pursuant to section 124.383 or 124.386 297
of the Revised Code are not earnable salary;298

       (c) Allowances paid by the employer for full maintenance, 299
consisting of housing, laundry, and meals, as certified to the 300
retirement board by the employer or the head of the department 301
that employs the contributor;302

       (d) Fees and commissions paid under section 507.09 of the 303
Revised Code;304

       (e) Payments that are made under a disability leave program 305
sponsored by the employer and for which the employer is required 306
by section 145.296 of the Revised Code to make periodic employer 307
and employee contributions;308

       (f) Amounts included pursuant to divisionsdivision (K)(3) 309
and former division (Y) of this section and section 145.2916 of 310
the Revised Code.311

       (2) "Earnable salary" does not include any of the following:312

       (a) Fees and commissions, other than those paid under section 313
507.09 of the Revised Code, paid as sole compensation for personal 314
services and fees and commissions for special services over and 315
above services for which the contributor receives a salary;316

       (b) Amounts paid by the employer to provide life insurance, 317
sickness, accident, endowment, health, medical, hospital, dental, 318
or surgical coverage, or other insurance for the contributor or 319
the contributor's family, or amounts paid by the employer to the 320
contributor in lieu of providing the insurance;321

       (c) Incidental benefits, including lodging, food, laundry, 322
parking, or services furnished by the employer, or use of the 323
employer's property or equipment, or amounts paid by the employer 324
to the contributor in lieu of providing the incidental benefits;325

       (d) Reimbursement for job-related expenses authorized by the 326
employer, including moving and travel expenses and expenses 327
related to professional development;328

       (e) Payments for accrued but unused sick leave, personal 329
leave, or vacation that are made at any time other than in the 330
year in which the sick leave, personal leave, or vacation was 331
accrued;332

       (f) Payments made to or on behalf of a contributor that are 333
in excess of the annual compensation that may be taken into 334
account by the retirement system under division (a)(17) of section 335
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 336
U.S.C.A. 401(a)(17), as amended;337

       (g) Payments made under division (B), (C), or (E) of section 338
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill 339
No. 3 of the 119th general assembly, Section 3 of Amended 340
Substitute Senate Bill No. 164 of the 124th general assembly, or 341
Amended Substitute House Bill No. 405 of the 124th general 342
assembly;343

       (h) Anything of value received by the contributor that is 344
based on or attributable to retirement or an agreement to retire, 345
except that payments made on or before January 1, 1989, that are 346
based on or attributable to an agreement to retire shall be 347
included in earnable salary if both of the following apply:348

       (i) The payments are made in accordance with contract 349
provisions that were in effect prior to January 1, 1986;350

       (ii) The employer pays the retirement system an amount 351
specified by the retirement board equal to the additional 352
liability resulting from the payments.353

       (i) The portion of any amount included under section 145.2916 354
of the Revised Code that represents employer contributions.355

       (3) The retirement board shall determine by rule whether any 356
compensation not enumerated in division (R) of this section is 357
earnable salary, and its decision shall be final.358

       (S) "Pension reserve" means the present value, computed upon 359
the basis of the mortality and other tables adopted by the board, 360
of all payments to be made on account of any retirement allowance 361
or benefit in lieu of any retirement allowance, granted to a 362
member or beneficiary under this chapter.363

       (T)(1) "Contributing service" means all service credited to a 364
member of the system since January 1, 1935, for which 365
contributions are made as required by sections 145.47, 145.48, and 366
145.483 of the Revised Code. In any year subsequent to 1934, 367
credit for any service shall be allowed by the following formula:368

       (a) For each month for which the member's earnable salary is 369
two hundred fifty dollars or more, allow one month's credit.370

       (b) For each month for which the member's earnable salary is 371
less than two hundred fifty dollars, allow a fraction of a month's 372
credit. The numerator of this fraction shall be the earnable 373
salary during the month, and the denominator shall be two hundred 374
fifty dollars, except that if the member's annual earnable salary 375
is less than six hundred dollars, the member's credit shall not be 376
reduced below twenty per cent of a year for a calendar year of 377
employment during which the member worked each month. Division 378
(T)(1)(b) of this section shall not reduce any credit earned 379
before January 1, 1985.380

       (2) Notwithstanding division (T)(1) of this section, an 381
elected official who prior to January 1, 1980, was granted a full 382
year of credit for each year of service as an elected official 383
shall be considered to have earned a full year of credit for each 384
year of service regardless of whether the service was full-time or 385
part-time. The public employees retirement board has no authority 386
to reduce the creditin accordance with section 145.016 of the 387
Revised Code.388

       (U) "State retirement board" means the public employees 389
retirement board, the school employees retirement board, or the 390
state teachers retirement board.391

       (V) "Retirant" means any former member who retires and is 392
receiving a monthly allowance as provided in sections 145.32, 393
145.33, 145.331, 145.332, 145.34, and 145.46 of the Revised Code.394

       (W) "Employer contribution" means the amount paid by an 395
employer as determined under section 145.48 of the Revised Code.396

       (X) "Public service terminates" means the last day for which 397
a public employee is compensated for services performed for an 398
employer or the date of the employee's death, whichever occurs 399
first.400

       (Y) When a member has been elected or appointed to an office, 401
the term of which is two or more years, for which an annual salary 402
is established, and in the event that the salary of the office is 403
increased and the member is denied the additional salary by reason 404
of any constitutional provision prohibiting an increase in salary 405
during a term of office, the member may elect to have the amount 406
of the member's contributions calculated upon the basis of the 407
increased salary for the office. At the member's request, the 408
board shall compute the total additional amount the member would 409
have contributed, or the amount by which each of the member's 410
contributions would have increased, had the member received the 411
increased salary for the office the member holds. If the member 412
elects to have the amount by which the member's contribution would 413
have increased withheld from the member's salary, the member shall 414
notify the employer, and the employer shall make the withholding 415
and transmit it to the retirement system. A member who has not 416
elected to have that amount withheld may elect at any time to make 417
a payment to the retirement system equal to the additional amount 418
the member's contribution would have increased, plus interest on 419
that contribution, compounded annually at a rate established by 420
the board and computed from the date on which the last 421
contribution would have been withheld from the member's salary to 422
the date of payment. A member may make a payment for part of the 423
period for which the increased contribution was not withheld, in 424
which case the interest shall be computed from the date the last 425
contribution would have been withheld for the period for which the 426
payment is made. Upon the payment of the increased contributions 427
as provided in this division, the increased annual salary as 428
provided by law for the office for the period for which the member 429
paid increased contributions thereon shall be used in determining 430
the member's earnable salary for the purpose of computing the 431
member's final average salary. 432

       (Z) "Five years of service credit," for the exclusive purpose 433
of satisfying the service credit requirements and of determining 434
eligibility for benefits under section 145.33 of the Revised Code, 435
means employment covered under this chapter or under a former 436
retirement plan operated, recognized, or endorsed by the employer 437
prior to coverage under this chapter or under a combination of the 438
coverage.439

       (AA)(Z) "Deputy sheriff" means any person who is commissioned 440
and employed as a full-time peace officer by the sheriff of any 441
county, and has been so employed since on or before December 31, 442
1965; any person who is or has been commissioned and employed as a 443
peace officer by the sheriff of any county since January 1, 1966, 444
and who has received a certificate attesting to the person's 445
satisfactory completion of the peace officer training school as 446
required by section 109.77 of the Revised Code; or any person 447
deputized by the sheriff of any county and employed pursuant to 448
section 2301.12 of the Revised Code as a criminal bailiff or court 449
constable who has received a certificate attesting to the person's 450
satisfactory completion of the peace officer training school as 451
required by section 109.77 of the Revised Code.452

       (BB)(AA) "Township constable or police officer in a township 453
police department or district" means any person who is 454
commissioned and employed as a full-time peace officer pursuant to 455
Chapter 505. or 509. of the Revised Code, who has received a 456
certificate attesting to the person's satisfactory completion of 457
the peace officer training school as required by section 109.77 of 458
the Revised Code.459

       (CC)(BB) "Drug agent" means any person who is either of the 460
following:461

       (1) Employed full time as a narcotics agent by a county 462
narcotics agency created pursuant to section 307.15 of the Revised 463
Code and has received a certificate attesting to the satisfactory 464
completion of the peace officer training school as required by 465
section 109.77 of the Revised Code;466

       (2) Employed full time as an undercover drug agent as defined 467
in section 109.79 of the Revised Code and is in compliance with 468
section 109.77 of the Revised Code.469

       (DD)(CC) "Department of public safety enforcement agent" 470
means a full-time employee of the department of public safety who 471
is designated under section 5502.14 of the Revised Code as an 472
enforcement agent and who is in compliance with section 109.77 of 473
the Revised Code.474

       (EE)(DD) "Natural resources law enforcement staff officer" 475
means a full-time employee of the department of natural resources 476
who is designated a natural resources law enforcement staff 477
officer under section 1501.013 of the Revised Code and is in 478
compliance with section 109.77 of the Revised Code.479

       (FF)(EE) "Park officer" means a full-time employee of the 480
department of natural resources who is designated a park officer 481
under section 1541.10 of the Revised Code and is in compliance 482
with section 109.77 of the Revised Code.483

       (GG)(FF) "Forest officer" means a full-time employee of the 484
department of natural resources who is designated a forest officer 485
under section 1503.29 of the Revised Code and is in compliance 486
with section 109.77 of the Revised Code.487

       (HH)(GG) "Preserve officer" means a full-time employee of the 488
department of natural resources who is designated a preserve 489
officer under section 1517.10 of the Revised Code and is in 490
compliance with section 109.77 of the Revised Code.491

       (II)(HH) "Wildlife officer" means a full-time employee of the 492
department of natural resources who is designated a wildlife 493
officer under section 1531.13 of the Revised Code and is in 494
compliance with section 109.77 of the Revised Code.495

       (JJ)(II) "State watercraft officer" means a full-time 496
employee of the department of natural resources who is designated 497
a state watercraft officer under section 1547.521 of the Revised 498
Code and is in compliance with section 109.77 of the Revised Code.499

       (KK)(JJ) "Park district police officer" means a full-time 500
employee of a park district who is designated pursuant to section 501
511.232 or 1545.13 of the Revised Code and is in compliance with 502
section 109.77 of the Revised Code.503

       (LL)(KK) "Conservancy district officer" means a full-time 504
employee of a conservancy district who is designated pursuant to 505
section 6101.75 of the Revised Code and is in compliance with 506
section 109.77 of the Revised Code.507

       (MM)(LL) "Municipal police officer" means a member of the 508
organized police department of a municipal corporation who is 509
employed full time, is in compliance with section 109.77 of the 510
Revised Code, and is not a member of the Ohio police and fire 511
pension fund.512

       (NN)(MM) "Veterans' home police officer" means any person who 513
is employed at a veterans' home as a police officer pursuant to 514
section 5907.02 of the Revised Code and is in compliance with 515
section 109.77 of the Revised Code.516

       (OO)(NN) "Special police officer for a mental health 517
institution" means any person who is designated as such pursuant 518
to section 5119.14 of the Revised Code and is in compliance with 519
section 109.77 of the Revised Code.520

       (PP)(OO) "Special police officer for an institution for the 521
mentally retarded and developmentally disabled" means any person 522
who is designated as such pursuant to section 5123.13 of the 523
Revised Code and is in compliance with section 109.77 of the 524
Revised Code.525

       (QQ)(PP) "State university law enforcement officer" means any 526
person who is employed full time as a state university law 527
enforcement officer pursuant to section 3345.04 of the Revised 528
Code and who is in compliance with section 109.77 of the Revised 529
Code.530

       (RR)(QQ) "House sergeant at arms" means any person appointed 531
by the speaker of the house of representatives under division 532
(B)(1) of section 101.311 of the Revised Code who has arrest 533
authority under division (E)(1) of that section.534

       (SS)(RR) "Assistant house sergeant at arms" means any person 535
appointed by the house sergeant at arms under division (C)(1) of 536
section 101.311 of the Revised Code.537

       (TT)(SS) "Regional transit authority police officer" means a 538
person who is employed full time as a regional transit authority 539
police officer under division (Y) of section 306.35 of the Revised 540
Code and is in compliance with section 109.77 of the Revised Code.541

       (UU)(TT) "State highway patrol police officer" means a 542
special police officer employed full time and designated by the 543
superintendent of the state highway patrol pursuant to section 544
5503.09 of the Revised Code or a person serving full time as a 545
special police officer pursuant to that section on a permanent 546
basis on October 21, 1997, who is in compliance with section 547
109.77 of the Revised Code.548

       (VV)(UU) "Municipal public safety director" means a person 549
who serves full time as the public safety director of a municipal 550
corporation with the duty of directing the activities of the 551
municipal corporation's police department and fire department.552

       (WW)(VV) Notwithstanding section 2901.01 of the Revised Code, 553
"PERS law enforcement officer" means a sheriff or any of the 554
following whose primary duties are to preserve the peace, protect 555
life and property, and enforce the laws of this state: a deputy 556
sheriff, township constable or police officer in a township police 557
department or district, drug agent, department of public safety 558
enforcement agent, natural resources law enforcement staff 559
officer, park officer, forest officer, preserve officer, wildlife 560
officer, state watercraft officer, park district police officer, 561
conservancy district officer, veterans' home police officer, 562
special police officer for a mental health institution, special 563
police officer for an institution for the mentally retarded and564
developmentally disabled, state university law enforcement 565
officer, municipal police officer, house sergeant at arms, 566
assistant house sergeant at arms, regional transit authority 567
police officer, or state highway patrol police officer. PERS law 568
enforcement officer also includes a person serving as a municipal 569
public safety director at any time during the period from 570
September 29, 2005, to the effective date of this amendmentMarch 571
24, 2009, if the duties of that service were to preserve the 572
peace, protect life and property, and enforce the laws of this 573
state.574

       (XX)(WW) "Hamilton county municipal court bailiff" means a 575
person appointed by the clerk of courts of the Hamilton county 576
municipal court under division (A)(3) of section 1901.32 of the 577
Revised Code who is employed full time as a bailiff or deputy 578
bailiff, who has received a certificate attesting to the person's 579
satisfactory completion of the peace officer basic training 580
described in division (D)(1) of section 109.77 of the Revised 581
Code.582

       (YY)(XX) "PERS public safety officer" means a Hamilton county 583
municipal court bailiff, or any of the following whose primary 584
duties are other than to preserve the peace, protect life and 585
property, and enforce the laws of this state: a deputy sheriff, 586
township constable or police officer in a township police 587
department or district, drug agent, department of public safety 588
enforcement agent, natural resources law enforcement staff 589
officer, park officer, forest officer, preserve officer, wildlife 590
officer, state watercraft officer, park district police officer, 591
conservancy district officer, veterans' home police officer, 592
special police officer for a mental health institution, special 593
police officer for an institution for the mentally retarded and 594
developmentally disabled, state university law enforcement 595
officer, municipal police officer, house sergeant at arms, 596
assistant house sergeant at arms, regional transit authority 597
police officer, or state highway patrol police officer. PERS 598
public safety officer also includes a person serving as a 599
municipal public safety director at any time during the period 600
from September 29, 2005, to the effective date of this amendment601
March 24, 2009, if the duties of that service were other than to 602
preserve the peace, protect life and property, and enforce the 603
laws of this state.604

       (ZZ)(YY) "Fiduciary" means a person who does any of the 605
following:606

       (1) Exercises any discretionary authority or control with 607
respect to the management of the system or with respect to the 608
management or disposition of its assets;609

       (2) Renders investment advice for a fee, direct or indirect, 610
with respect to money or property of the system;611

       (3) Has any discretionary authority or responsibility in the 612
administration of the system.613

       (AAA)(ZZ) "Actuary" means an individual who satisfies all of 614
the following requirements:615

       (1) Is a member of the American academy of actuaries;616

       (2) Is an associate or fellow of the society of actuaries;617

       (3) Has a minimum of five years' experience in providing 618
actuarial services to public retirement plans.619

       (BBB)(AAA) "PERS defined benefit plan" means the plan 620
described in sections 145.201 to 145.79 of the Revised Code.621

       (CCC)(BBB) "PERS defined contribution plans" means the plan 622
or plans established under section 145.81 of the Revised Code.623

       Sec. 145.016. Contributing service shall be allowed in 624
accordance with the following:625

       (A) For service before the first full calendar year beginning 626
on or after the effective date of this section, credit for any 627
contributing service shall be allowed as follows:628

       (1) For each month for which the member's earnable salary is 629
two hundred fifty dollars or more, allow one month's credit;630

       (2) For each month for which the member's earnable salary is 631
less than two hundred fifty dollars, allow a fraction of a month's 632
credit. The numerator of this fraction shall be the earnable 633
salary during the month, and the denominator shall be two hundred 634
fifty dollars, except that if the member's annual earnable salary 635
is less than six hundred dollars, the member's credit shall not be 636
reduced below twenty per cent of a year for a calendar year of 637
employment during which the member worked each month. Division 638
(A)(2) of this section shall not reduce any credit earned before 639
January 1, 1985.640

       (B) For service during or after the first full calendar year 641
beginning after the effective date of this section, credit for any 642
contributing service shall be allowed in accordance with the 643
following:644

       (1) For each month for which the member's earnable salary 645
equals or exceeds the amount specified in division (B)(1)(a) or 646
(b) of this section, as appropriate, allow one month's credit:647

       (a) For the first full calendar year beginning after the 648
effective date of this section, one thousand dollars;649

       (b) For each calendar year thereafter, the sum of the prior 650
year's amount plus the amount determined by multiplying the prior 651
year's amount by the average wage index as described in 20 C.F.R. 652
404.272, as amended, rounded up to the next dollar for the most 653
recent year for which information is available on June 30 of the 654
year immediately preceding the year for which the sum is being 655
calculated.656

       (2) Except as provided in division (C) of this section, for 657
each month that the member's earnable salary is less than the 658
appropriate amount specified in division (B)(1) of this section, 659
allow a fraction of a month's credit. The numerator of the 660
fraction shall be the earnable salary during the month and the 661
denominator shall be the amount specified in division (B)(1)(a) or 662
(b) of this section, as appropriate. Division (B) of this section 663
shall not reduce any credit earned before the first full calendar 664
year beginning after the effective date of this section.665

       (C) Notwithstanding any other provision of this section, an 666
elected official who prior to January 1, 1980, was granted a full 667
year of credit for each year of service as an elected official 668
shall be considered to have earned a full year of credit for each 669
year of service regardless of whether the service was full-time or 670
part-time. The public employees retirement board has no authority 671
to reduce the credit.672

       Sec. 145.017. (A) For a person eligible for a retirement 673
allowance under division (A)(1) of section 145.32 of the Revised 674
Code or division (B) or (E)(1) of section 145.332 of the Revised 675
Code, the number of years used in the calculation of final average 676
salary shall be three and the sum of the earnable salary for those 677
years shall be divided by three.678

        (B) For a person eligible for a retirement allowance under 679
division (A)(2) of section 145.32 of the Revised Code or division 680
(C) or (E)(2) of section 145.332 of the Revised Code, the number 681
of years used in the calculation of final average salary shall be 682
five and the sum of the earnable salary for those years shall be 683
divided by five.684

        (C) For a person eligible for a retirement allowance under 685
section 145.331 of the Revised Code or a benefit under section 686
145.36 or 145.361 of the Revised Code, the number of years used in 687
the calculation of final average salary shall be five and the sum 688
of the earnable salary for those years shall be divided by five, 689
except that if the person is eligible for a retirement allowance 690
under division (A)(1) of section 145.32 of the Revised Code or 691
division (B) or (E)(1) of section 145.332 of the Revised Code, or 692
if able to continue in employment subject to this chapter would be 693
eligible, the number of years used in the calculation of final 694
average salary shall be three and the sum of the earnable salary 695
for those years shall be divided by three.696

        (D) For a person eligible for a benefit under section 145.45 697
of the Revised Code, the number of years used in the calculation 698
of final average salary shall be five and the sum of the earnable 699
salary for those years shall be divided by five, except that if 700
the deceased member would have been eligible for a retirement 701
allowance under division (A)(1) of section 145.32 of the Revised 702
Code or division (B) or (E)(1) of section 145.332 of the Revised 703
Code, or if able to continue in employment subject to this chapter 704
would have been eligible had the member not died, the number of 705
years used in the calculation of final average salary shall be 706
three and the sum of the earnable salary for those years shall be 707
divided by three.708

       Sec. 145.036. On or before the last day of January of each 709
year, each public employer shall transmit to the public employees 710
retirement system a list of all individuals providing personal 711
services who at any time during the preceding calendar year 712
received compensation from the employer for which no contributions 713
were deducted under section 145.47 of the Revised Code because the 714
employer classified the individual as an independent contractor or 715
another classification other than public employee or any other 716
reason. The list shall contain the name of the individual and any 717
other information required by the system.718

        If there is doubt at the time the list is compiled or at any 719
other time regarding whether an individual providing personal 720
services to a public employer is a public employee, the employer 721
shall make a written request to the public employees retirement 722
board for a determination of whether the individual is a public 723
employee for the purposes of this chapter. On receipt of the 724
request, the board shall determine whether the individual is a 725
public employee with regard to the services in question. If the 726
board determines that the individual is not a public employee, for 727
the purposes of this chapter the individual shall be considered an 728
independent contractor with regard to the services in question. 729
The board's determination is final.730

       The board shall notify the individual and the employer of its 731
determination. The determination shall apply to services performed 732
before, on, or after the effective date of this section for the 733
same employer in the same capacity.734

       Sec. 145.037. (A) As used in this section and section 145.038 735
of the Revised Code, "business entity" means a corporation, 736
association, firm, limited liability company, partnership, sole 737
proprietorship, or other entity engaged in business.738

       (B)(1) Except as provided in division (B)(2) of this section, 739
an individual who provided personal services to a public employer 740
on or before the effective date of this section but was not 741
classified as a public employee may request from the public 742
employees retirement board a determination of whether the 743
individual should have been classified as a public employee for 744
purposes of this chapter. The request shall be made on a form 745
provided by the board.746

       (2) Division (B)(1) of this section does not apply to an 747
individual employed by a business entity under contract with a 748
public employer to provide personal services to the employer.749

        (C) Not later than thirty days after the effective date of 750
this section, the board shall notify each employer of the right of 751
an individual described in division (B)(1) of this section to seek 752
the determination described in that division. The notice shall be 753
accompanied by copies of the form described in division (B)(1) of 754
this section.755

        Not later than sixty days after the effective date of this 756
section, the employer shall send to each individual described in 757
division (B)(1) of this section a copy of the form provided by the 758
retirement system and written notice of the right to seek a 759
determination of whether the individual should have been 760
classified as a public employee. The notice shall be sent to the 761
individual's last known address on record with the employer.762

        On receipt of a properly completed form, the board shall 763
determine whether the individual should have been classified as a 764
public employee. If the board determines that the individual is 765
not a public employee with regard to the services in question, for 766
the purposes of this chapter the individual shall be considered an 767
independent contractor with regard to the services in question. 768
The board's determination is final.769

        The board shall notify the individual and the employer of its 770
determination. The determination shall apply to services performed 771
before, on, or after the effective date of this section for the 772
same employer in the same capacity.773

        (D) Regardless of whether an individual actually receives 774
notice under this section, the request for a determination must be 775
made not later than one year after the effective date of this 776
section unless the individual can demonstrate to the board's 777
satisfaction through medical records that at the time the one-year 778
period ended the individual was physically or mentally 779
incapacitated and unable to request a determination.780

       Sec. 145.038. (A) A public employer who on or after the 781
effective date of this section begins to receive personal services 782
from an individual it classifies as an independent contractor or 783
another classification other than public employee shall inform the 784
individual of the classification and that no contributions will be 785
made to the public employees retirement system. Not later than 786
thirty days after the services begin, the employer shall require 787
the individual to acknowledge, in writing on a form provided by 788
the system, that the individual has been informed that the 789
employer does not consider the individual a public employee and no 790
contributions will be made to the public employees retirement 791
system. The employer shall retain the acknowledgement and 792
immediately transmit a copy of it to the system.793

        (B)(1) Regardless of whether the individual has made an 794
acknowledgement under division (A) of this section and, except as 795
provided in division (B)(2) of this section, an individual may 796
request that the public employees retirement board determine 797
whether the individual is a public employee for purposes of this 798
chapter. 799

       (2) Division (B)(1) of this section does not apply to an 800
individual employed by a business entity under contract with a 801
public employer to provide personal services to the employer.802

       (C) A request for a determination must be made not later than 803
five years after the individual begins to provide personal 804
services to the employer, unless one of the following is the case:805

        (1) The individual demonstrates to the board's satisfaction 806
through medical records that at the time the five-year period 807
ended the individual was physically or mentally incapacitated and 808
unable to request a determination;809

        (2) The employer has not obtained or has failed to retain the 810
acknowledgement required by division (A) of this section.811

        (D) On receipt of a request under division (B)(1) of this 812
section, the board shall determine whether the individual is a 813
public employee for the purposes of this chapter. If the board 814
determines that the individual is not a public employee, for the 815
purposes of this chapter the individual shall be considered an 816
independent contractor with regard to the services in question. 817
The board's determination is final.818

       The board shall notify the individual and the employer of its 819
determination. The determination shall apply to services performed 820
before, on, or after the effective date of this section for the 821
same employer in the same capacity.822

        (E) The board may adopt rules under section 145.09 of the 823
Revised Code to implement this section and sections 145.036 and 824
145.037 of the Revised Code.825

       Sec. 145.20. (A) Any elective official of the state of Ohio 826
or of any political subdivision thereof having employees in the 827
public employees retirement system shall be considered as an 828
employee of the state or such political subdivision, and may 829
become a member of the system upon application to the public 830
employees retirement board, with all the rights, privileges, and 831
obligations of membership. An elective official who becomes a 832
member of the system on or after the date the public employees 833
retirement board first establishes a PERS defined contribution 834
planJanuary 1, 2003, shall make an election pursuant to section 835
145.19 of the Revised Code not later than one hundred eighty days 836
after applying for membership in the system. The election is 837
effective as of the date the official applies for membership and 838
is irrevocable on receipt by the system. If a form evidencing an 839
election is not received by the system not later than the last day 840
of the one-hundred-eighty-day period, the official is deemed to 841
have elected to participate in the PERS defined benefit plan.842

       (B) Service as any such elective official by any member of 843
the system rendered prior to January 1, 1935, shall be included as 844
prior service, provided the member does both of the following:845

       (1) Completes three years of contributing service, or the 846
equivalent thereof, in the public employees retirement system 847
subsequent to the date that membership is established; 848

       (2) Participates in the PERS defined benefit plan or a PERS 849
defined contribution plan with definitely determinable benefits. 850

       (C) Credit for service between January 1, 1935, and the date 851
that membership is established, except service as an elective 852
official that was subject to the tax on wages imposed by the 853
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26 854
U.S.C.A. 3101, as amended, may be secured by the elective official 855
provided the elective official does all of the following:856

       (1) Pays into the employees' savings fund an amount 857
determined by applying the member contribution rate in effect at 858
the time of payment to the earnable salary of the member during 859
all periods of service after January 1, 1935, covered by this 860
chapter, for which contributions have not been paid, plus interest 861
on such amount compounded annually at a rate to be determined862
specified by the board that is equal to one hundred per cent of 863
the additional liability resulting from the purchase of that year 864
or portion of a year of credit as determined by an actuary 865
employed by the board;866

       (2) Completes one and one-half years of contributing 867
membership in the public employees retirement system subsequent to 868
the date membership was established;869

       (3) Participates in the PERS defined benefit plan or a PERS 870
defined contribution plan with definitely determinable benefits.871

       A member may choose to purchase in any one payment only part 872
of the credit the member is eligible to purchase, subject to board 873
rules. The public employees retirement board shall determine the 874
amount and manner of payment. In the event of death or withdrawal 875
from service, the payment into the employees' savings fund for 876
such service credit shall be considered as accumulated 877
contributions of the member.878

       Sec. 145.201.  (A) Subject to the limit described in division 879
(C) of this section, any member who is or has been an elected 880
official of the state or any political subdivision thereof or has 881
been appointed by the governor with the advice and consent of the 882
senate to serve full-time as a member of a board, commission, or 883
other public body may at any time prior to retirement purchase 884
additional service credit in an amount not to exceed thirty-five 885
per cent of the service credit allowed the member for the period 886
of service as an elected or appointed official subsequent to 887
January 1, 1935, other than credit for military service, part-time 888
service, and service subject to the tax on wages imposed by the 889
"Federal Insurance Contributions Act," 68A Stat. 415 (1954), 26 890
U.S.C.A. 3101, as amended.891

       TheFor each year of additional service credit may be892
purchased by payingunder this section, the member shall pay into 893
the employees' savings fund an amount computed by multiplying by 894
the employee contribution rate in effect at the time of purchase 895
the member's earnable salary for the period of service upon which 896
the purchased credit is based, by the number of years or portions 897
thereof of additional service credit to be purchased, and by 898
paying into the employers' accumulation fund an amount equal to 899
the full amount paid into the employees' savings fund. If a member 900
purchases less than the full amount of the additional service 901
credit to which the member is entitled, the period of service upon 902
which the purchase is computed shall be the member's earliest 903
period of such servicespecified by the public employees 904
retirement board that is equal to one hundred per cent of the 905
additional liability resulting from the purchase of that year or 906
portion of a year of credit as determined by an actuary employed 907
by the board. The member shall receive full credit for such 908
additional elective service in computing an allowance or benefit 909
under section 145.20, 145.33, 145.331, 145.332, 145.34, 145.36, 910
145.361, or 145.46 of the Revised Code, notwithstanding any other 911
provision of this chapter. The payment to the employees' savings 912
fund, and payments made to the employers' accumulation fund prior 913
to the effective date of this amendment, for such additional 914
elective service credit shall, in the event of death or withdrawal 915
from service, be considered as accumulated contributions of the 916
member.917

       A member of a board, commission, or other public body shall 918
be considered to be serving full-time if full-time service is 919
required by law or if the director of administrative services 920
determines that the duties of the position require full-time 921
service.922

       (B) Notwithstanding division (A) of this section, a member 923
who purchased service credit under this section prior to January 924
1, 1980, on the basis of part-time service shall be permitted to 925
retain the credit and shall be given full credit for it in 926
computing an allowance or benefit under section 145.20, 145.33, 927
145.331, 145.332, 145.34, 145.36, 145.361, or 145.46 of the 928
Revised Code. The public employees retirement board has no 929
authority to cancel or rescind such credit.930

       (C) A purchase made under this section shall not exceed the 931
limits established by division (n) of section 415 of the "Internal 932
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415(n), as 933
amended.934

       (D) Subject to rules adopted by the public employees 935
retirement board, a member who has purchased service credit under 936
this section is entitled to be refunded all or a portion of the 937
actual amount the member paid for the service credit if, in 938
computing an age and service retirement allowance under division 939
(A)(5) of section 145.33145.332 of Revised Code, the allowance 940
exceeds the limit established by division (A)(6) of that section.941

        A refund under this division cancels the equivalent amount of 942
service credit.943

       Sec. 145.22.  (A) The public employees retirement board shall 944
have prepared annually by or under the supervision of an actuary 945
an actuarial valuation of the pension assets, liabilities, and 946
funding requirements of the public employees retirement system as 947
established pursuant to this chapter. The actuary shall complete 948
the valuation in accordance with actuarial standards of practice 949
promulgated by the actuarial standards board of the American 950
academy of actuaries and prepare a report of the valuation. The 951
report shall include all of the following:952

       (1) A summary of the benefit provisions evaluated;953

       (2) A summary of the census data and financial information 954
used in the valuation;955

       (3) A description of the actuarial assumptions, actuarial 956
cost method, and asset valuation method used in the valuation, 957
including a statement of the assumed rate of payroll growth and 958
assumed rate of growth or decline in the number of members 959
contributing to the retirement system;960

       (4) A summary of findings that includes a statement of the 961
actuarial accrued pension liabilities and unfunded actuarial 962
accrued pension liabilities;963

       (5) A schedule showing the effect of any changes in the 964
benefit provisions, actuarial assumptions, or cost methods since 965
the last annual actuarial valuation;966

       (6) A statement of whether contributions to the retirement 967
system are expected to be sufficient to satisfy the funding 968
objectives established by the board.969

       The board shall submit the report to the Ohio retirement 970
study council and the standing committees of the house of 971
representatives and the senate with primary responsibility for 972
retirement legislation not later than the first day of September 973
following the year for which the valuation was made.974

       (B) At such time as the public employees retirement board 975
determines, and at least once in each five-year period, the board 976
shall have prepared by or under the supervision of an actuary an 977
actuarial investigation of the mortality, service, and other 978
experience of the members, retirants, contributors, and 979
beneficiaries of the system to update the actuarial assumptions 980
used in the actuarial valuation required by division (A) of this 981
section. The actuary shall prepare a report of the actuarial 982
investigation. The report shall be prepared and any recommended 983
changes in actuarial assumptions shall be made in accordance with 984
the actuarial standards of practice promulgated by the actuarial 985
standards board of the American academy of actuaries. The report 986
shall include all of the following:987

       (1) A summary of relevant decrement and economic assumption 988
experience observed over the period of the investigation;989

       (2) Recommended changes in actuarial assumptions to be used 990
in subsequent actuarial valuations required by division (A) of 991
this section;992

       (3) A measurement of the financial effect of the recommended 993
changes in actuarial assumptions.994

       The board shall submit the report to the Ohio retirement 995
study council and the standing committees of the house of 996
representatives and the senate with primary responsibility for 997
retirement legislation not later than the first day of November 998
following the last fiscal year of the period the report covers.999

       (C) The board may at any time request the actuary to make any 1000
studies or actuarial valuations to determine the adequacy of the 1001
contribution rate determined under section 145.48 of the Revised 1002
Code, and those rates may be adjusted by the board, as recommended 1003
by the actuary, effective as of the first of any year thereafter.1004

       (D) The board shall have prepared by or under the supervision 1005
of an actuary an actuarial analysis of any introduced legislation 1006
expected to have a measurable financial impact on the retirement 1007
system. The actuarial analysis shall be completed in accordance 1008
with the actuarial standards of practice promulgated by the 1009
actuarial standards board of the American academy of actuaries. 1010
The actuary shall prepare a report of the actuarial analysis, 1011
which shall include all of the following:1012

       (1) A summary of the statutory changes that are being 1013
evaluated;1014

       (2) A description of or reference to the actuarial 1015
assumptions and actuarial cost method used in the report;1016

       (3) A description of the participant group or groups included 1017
in the report;1018

       (4) A statement of the financial impact of the legislation, 1019
including the resulting increase, if any, in the employer normal 1020
cost percentage; the increase, if any, in actuarial accrued 1021
liabilities; and the per cent of payroll that would be required to 1022
amortize the increase in actuarial accrued liabilities as a level 1023
per cent of covered payroll for all active members over a period 1024
not to exceed thirty years;1025

       (5) A statement of whether the scheduled contributions to the 1026
system after the proposed change is enacted are expected to be 1027
sufficient to satisfy the funding objectives established by the 1028
board.1029

       Not later than sixty days from the date of introduction of 1030
the legislation, the board shall submit a copy of the actuarial 1031
analysis to the legislative service commission, the standing 1032
committees of the house of representatives and the senate with 1033
primary responsibility for retirement legislation, and the Ohio 1034
retirement study council.1035

       (E) The board shall have prepared annually a report giving a 1036
full accounting of the revenues and costs relating to the 1037
provision of benefits under sections 145.325 and 145.58 and 1038
145.584 of the Revised Code. The report shall be made as of 1039
December 31, 1997, and the thirty-first day of December of each 1040
year thereafter. The report shall include the following:1041

       (1) A description of the statutory authority for the benefits 1042
provided;1043

       (2) A summary of the benefits;1044

       (3) A summary of the eligibility requirements for the 1045
benefits;1046

       (4) A statement of the number of participants eligible for 1047
the benefits;1048

       (5) A description of the accounting, asset valuation, and 1049
funding method used to provide the benefits;1050

       (6) A statement of the net assets available for the provision 1051
of the benefits as of the last day of the fiscal year;1052

       (7) A statement of any changes in the net assets available 1053
for the provision of benefits, including participant and employer 1054
contributions, net investment income, administrative expenses, and 1055
benefits provided to participants, as of the last day of the 1056
fiscal year;1057

       (8) For the last six consecutive fiscal years, a schedule of 1058
the net assets available for the benefits, the annual cost of 1059
benefits, administrative expenses incurred, and annual employer 1060
contributions allocated for the provision of benefits;1061

       (9) A description of any significant changes that affect the 1062
comparability of the report required under this division;1063

       (10) A statement of the amount paid under division (C) of 1064
section 145.58 of the Revised Code.1065

       The board shall submit the report to the Ohio retirement 1066
study council and the standing committees of the house of 1067
representatives and the senate with primary responsibility for 1068
retirement legislation not later than the thirtieth day of June 1069
following the year for which the report was made.1070

       Sec. 145.28.  (A)(1) Except as provided in division (A)(2) of 1071
this section, a member of the public employees retirement system 1072
with at least eighteen months of contributing service in the 1073
system, the state teachers retirement system, or the school 1074
employees retirement system who exempted self from membership in 1075
one or more of the systems pursuant to section 145.03 or 3309.23 1076
of the Revised Code, or former section 3307.25 or 3309.25 of the 1077
Revised Code, or was exempt under section 3307.24 of the Revised 1078
Code, may purchase credit for each year or portion of a year of 1079
service for which the member was exempted.1080

       (2) A member may not purchase credit under this section for 1081
exempted service if the service was exempted from contribution 1082
under section 145.03 of the Revised Code and subject to the tax on 1083
wages imposed by the "Federal Insurance Contributions Act," 68A 1084
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended.1085

       (B) For each year or portion of a year of credit purchased 1086
under this section, a member shall pay to the retirement system an 1087
amount determined by multiplying the member's earnable salary for 1088
the twelve months of contributing service preceding the month in 1089
which the member applies to purchase the credit by a percentage 1090
rate established by rule of the public employees retirement board 1091
adopted under division (F) of this section.1092

       (C) Subject to board rules, a member may purchase all or part 1093
of the credit the member is eligible to purchase under this 1094
section in one or more payments. If the member purchases the 1095
credit in more than one payment, compound interest at a rate 1096
specified by rule of the board shall be charged on the balance 1097
remaining after the first payment is made.1098

       (D)Credit shall be purchased under this section in 1099
accordance with section 145.29 of the Revised Code.1100

       (C) Credit purchasable under this section shall not exceed 1101
one year of service for any twelve-month period. If the period of 1102
service for which credit is purchasable under this section is 1103
concurrent with a period of service that will be used to calculate 1104
a retirement benefit from this system, the state teachers 1105
retirement system, or school employees retirement system, the 1106
amount of the credit shall be adjusted in accordance with rules 1107
adopted by the public employees retirement board.1108

       A member who is also a member of the state teachers 1109
retirement system or the school employees retirement system shall 1110
purchase credit for any service for which the member exempted self 1111
under section 145.03 or 3309.23 of the Revised Code, or former 1112
section 3307.25 or 3309.25 of the Revised Code, or was exempt 1113
under section 3307.24 of the Revised Code, from the retirement 1114
system in which the member has the greatest number of years of 1115
service credit. If the member receives benefits under section 1116
145.37 of the Revised Code, the retirement system that determines 1117
and pays the benefit shall receive from the other system or 1118
systems the amounts paid by the member for purchase of credit for 1119
exempt service plus interest at the actuarial assumption rate of 1120
the system paying that amount. The interest shall be for the 1121
period beginning on the date of the member's last payment for 1122
purchase of the credit and ending on the date of the member's 1123
retirement.1124

       (E) If a member dies or withdraws from service, any payment 1125
made by the member under this section shall be considered as 1126
accumulated contributions of the member.1127

       (F)(D) The retirement board shall adopt rules to implement 1128
this section.1129

       Sec. 145.29.  (A) A member of the public employees retirement 1130
system who elects to purchase or otherwise obtain service credit 1131
under section 145.28, 145.291, 145.292, 145.293, or 145.299 or 1132
division (C) of section 145.47 of the Revised Code shall do both 1133
of the following:1134

       (1) Submit an application to the public employees retirement 1135
board in a manner or form approved by the board;1136

       (2) For each year, or portion of a year, of credit purchased 1137
or otherwise obtained, pay to the employees' savings fund an 1138
amount specified by the board that is equal to one hundred per 1139
cent of the additional liability resulting from the purchase or 1140
obtainment of that year or portion of a year of credit as 1141
determined by an actuary employed by the board.1142

       (B) Subject to board rules, a member may choose to purchase 1143
or otherwise obtain only part of any eligible service credit in 1144
any one payment.1145

       Sec. 145.291.  Any member of the public employees retirement 1146
system who subsequent to January 1, 1935, and the date membership 1147
was established was off the payroll either on a leave of absence 1148
approved by the then appointing authority or because the member 1149
resigned due to pregnancy or adoption of a child, shall have the 1150
right to make such payment, at the contribution rate in effect at 1151
the time of payment, with interest on such amount compounded 1152
annually at a rate to be determined by the retirement board as the 1153
member would have made if the member had continued on the payroll 1154
at the earnable salary the member was receiving at the time public 1155
service was interruptedmay purchase service credit for the period 1156
of absence or resignation, provided that subsequent to such leave 1157
of absence or resignation the member returned to regular 1158
contributing status in the retirement system for at least twelve 1159
calendar months. In the case of resignation, the member must 1160
submit evidence satisfactory to the retirement board documenting 1161
that the resignation was due to pregnancy or adoption of a child.1162

       The member may choose to purchase only part of the credit in 1163
any one payment, subject to board rules. The payment shall entitle 1164
the member to receive service credit for the leave or period of 1165
absence,Credit shall be purchased under this section in 1166
accordance with section 145.29 of the Revised Code, except that 1167
service credit purchased under this section shall not exceed one 1168
year. The payment, together with any regular interest, shall, in 1169
the event of death or withdrawal from service of the member prior 1170
to retirement, be considered as accumulated contributions of the 1171
member.1172

       Sec. 145.29.        Sec. 145.292. Three years of contributing membership 1173
in the public employees retirement system subsequent to the date 1174
that membership is established entitles a member to receive prior 1175
service credit for services prior to January 1, 1935, in any 1176
capacity which comes under this chapter, provided that such member 1177
has not lost membership at any time by the withdrawal of the 1178
member's accumulated contributions. Members who have withdrawn an 1179
exemption shall receive the prior service credit provided for 1180
under the conditions of this section, only in the event such 1181
member has made the payments required by section 145.28 of the 1182
Revised Code. If the public employees retirement board determines 1183
that a position of any employee member in any one calendar year 1184
prior to January 1, 1935, was a part-time position, the board may 1185
determine what fractional part of a year's credit shall be given. 1186
In determining what credit shall be allowed to regular, full-time 1187
employees who are paid on an hourly or per diem basis, the board 1188
shall allow a full day's credit to any employee toward retirement 1189
who is called to work and works any portion of a day. Credit for 1190
service between January 1, 1935, and the date of becoming a member 1191
of the public employees retirement system except a part-time 1192
employee who claimed exemption under the provisions of section 1193
145.03 of the Revised Code, may be securedpurchased by any public 1194
employee for service rendered an employer provided such public 1195
employee pays into the employees' savings fund an amount equal to 1196
the amount the member would have paid if deductions had been taken 1197
on the member's earnable salary at the member contribution rate in 1198
effect at the time of such payment for service after January 1, 1199
1935, or since the member's date of employment, plus interest on 1200
such amount compounded annually at a rate to be determined by the 1201
board. The member may choose to purchase only part of such credit 1202
in any one payment, subject to board rules. Such payment shall be 1203
refunded in the event of the death or withdrawal from service of 1204
the member prior to retirement under the same conditions and in 1205
the same manner as refunds are made under sections 145.40 and 1206
145.43 of the Revised Code, from the employees' savings fund. 1207
Credit shall be purchased under this section in accordance with 1208
section 145.29 of the Revised Code.1209

       Sec. 145.293.  (A) Service credit may be purchased under this 1210
section shall be included in the member's total service credit. 1211
Credit may be purchased for the following:1212

       (1) Service rendered in another state, and service in any 1213
entity operated by the United States government, that, if served 1214
in a comparable position in Ohio, would be covered by the public 1215
employees retirement system, Ohio police and fire pension fund, 1216
state teachers retirement system, school employees retirement 1217
system, or state highway patrol retirement system;1218

       (2) Service for which contributions were made by the member 1219
or on the member's behalf to a municipal retirement system in this 1220
state, except that if the conditions specified in section 145.2910 1221
of the Revised Code are met, service credit for this service may 1222
be purchased only in accordance with section 145.2911 of the 1223
Revised Code.1224

       The number of years purchased under this section shall not 1225
exceed the lesser of five years or the member's total accumulated 1226
number of years of Ohio service.1227

       (B) For each year of service purchased, a member shall pay to 1228
the public employees retirement system for credit to the member's 1229
accumulated account an amount equal to the member's retirement 1230
contribution for full-time employment for the first year of Ohio 1231
service following termination of the service to be purchased. To 1232
this amount shall be added an amount equal to compound interest at 1233
a rate established by the public employees retirement board from 1234
the date of membership in the public employees retirement system 1235
to date of payment. The member may choose to purchase only part of 1236
such credit in any one payment, subject to board rulesCredit 1237
shall be purchased under this section in accordance with section 1238
145.29 of the Revised Code.1239

       (C) A member is ineligible to purchase under this section 1240
credit for service for which the member has obtained credit under 1241
former section 145.44 of the Revised Code or service that is used 1242
in the calculation of any retirement benefit currently being paid 1243
or payable in the future to the member under any other retirement 1244
program except social security. At the time the credit is 1245
purchased the member shall certify on a form furnished by the 1246
retirement board that the member does and will conform to this 1247
requirement.1248

       (D) Credit purchased under this section may be combined 1249
pursuant to section 145.37 with credit purchased under sections 1250
3307.74 and 3309.31 of the Revised Code, except that not more than 1251
an aggregate total of five years' service credit purchased under 1252
this section and sections 3307.74 and 3309.31 of the Revised Code1253
shall be used in determining retirement eligibility or calculating 1254
benefits under section 145.37 of the Revised Code.1255

       Sec. 145.294.  (A)(1) The public employees retirement board 1256
may establish by rule a payroll deduction plan for payment of the 1257
cost of restoring service credit under section 145.31 or 145.311 1258
of the Revised Code or purchasing any service credit members of 1259
the public employees retirement system are eligible to purchase 1260
under this chapter, or for making additional deposits under 1261
section 145.583 or 145.62 of the Revised Code. In addition to any 1262
other matter considered relevant by the board, the rules shall 1263
specify all of the following:1264

       (1)(a) The types of service credit that may be paid for 1265
through payroll deduction, including the section of the Revised 1266
Code that authorizes the purchase of each type of service credit 1267
for which payment may be made by payroll deduction;1268

       (2)(b) The procedure for informing the member's employer and 1269
the system that the member wishes to purchase service credit under 1270
this chapter or make additional deposits under section 145.583 or 1271
145.62 of the Revised Code through payroll deduction;1272

       (3)(c) The procedure to be followed by the system and 1273
employers to determine for each request the amount to be deducted, 1274
the number of deductions to be made, and the interval at which 1275
deductions will be made. The rules may provide for a minimum 1276
amount for each deduction or a maximum number of deductions for 1277
the purchase of any type of credit.1278

       (4)(d) The procedure to be followed by employers in 1279
transmitting amounts deducted from the salaries of their employees 1280
to the system;1281

       (5)(e) The procedure to be followed by the system in 1282
crediting service credit to members who choose to purchase it 1283
through payroll deduction.1284

       (B)(2) If the board establishes a payroll deduction plan 1285
under this sectiondivision, it shall certify to the member's 1286
employer for each member for whom deductions are to be made, the 1287
amount of each deduction and the payrolls from which deductions 1288
are to be made. The employer shall make the deductions as 1289
certified and transmit the amounts deducted in accordance with the 1290
rules established by the board under this section.1291

       (C)(3) Rules adopted under this sectiondivision shall not 1292
affect any right to purchase service credit conferred by any other 1293
section of the Revised Code, including the right of a member under 1294
any such section to purchase only part of the service credit the 1295
member is eligible to purchase.1296

       (D)(4) No payroll deduction made pursuant to this section1297
division may exceed the amount of a member's net compensation 1298
after all other deductions and withholdings required by law.1299

       (B) The public employees retirement board may establish by 1300
rule a payment plan for the cost of restoring service credit under 1301
section 145.31 or 145.311 of the Revised Code or purchasing any 1302
service credit members of the public employees retirement system 1303
may purchase under this chapter. The plan may provide for partial 1304
payments and for payments by payroll deduction under division (A) 1305
of this section.1306

       On receipt of a request from a member eligible to restore or 1307
purchase service credit, the system shall determine and give 1308
notice to the member of the total cost of the credit and the time 1309
period in which the payments must be made for the credit to be 1310
available at that cost. The system may specify the amount and 1311
frequency of payments for credit not purchased in a single 1312
payment.1313

       Sec. 145.295.  (A) As used in this section and section 1314
145.2913 of the Revised Code:1315

       (1) "Uniform retirement system" or "uniform system" means the 1316
Ohio police and fire pension fund or state highway patrol 1317
retirement system.1318

       (2) "Military service credit" means credit purchased or 1319
obtained under this chapter or Chapter 742. or 5505. of the 1320
Revised Code for service in the armed forces of the United States.1321

       (B) A member of the public employees retirement system who 1322
has contributions on deposit with, but is no longer contributing 1323
to, a uniform retirement system shall, in computing years of 1324
service, be given full credit for service credit earned under 1325
Chapter 742. or 5505. of the Revised Code or for military service 1326
credit if a transfer to the public employees retirement system is 1327
made under this division. At the request of the member ,a 1328
transfer shall be made if all of the following conditions are met:1329

       (1) The member is eligible, or with the credit will be 1330
eligible, for a retirement or disability benefit.1331

       (2) The member agrees to retire or accept a disability 1332
benefit not later than ninety days after receiving notice from the 1333
public employees retirement system that the credit has been 1334
obtained;1335

       (3) For each year of service the uniform system shall 1336
transfertransfers to the public employees retirement system, for 1337
each year of service, the sum of the following:1338

       (1)(a) An amount equal to the member's accumulated 1339
contributions to the uniform system making the transfer and any 1340
payments by the member for military service credit;1341

       (2)(b) An amount equal to the lesser of the employer's 1342
contributions to the uniform system or the amount that would have 1343
been contributed by the employer for the service had the member 1344
been employed by the member's current employer as a member of the 1345
public employees retirement system at the time the credit was 1346
earned;1347

       (3)(c) Interest, determined as provided in division (H) of 1348
this section, on the amounts specified in divisions (B)(1)(3)(a)1349
and (2)(b) of this section for the period from the last day of the 1350
year for which the service credit in the uniform system was earned 1351
or in which the military service credit was purchased or obtained 1352
to the date the transfer is made.1353

       (C) A member of the public employees retirement system who 1354
has at least eighteen months of contributing service credit with 1355
the public employees retirement system, who is a former member of 1356
a uniform retirement system, and who has received a refund of the 1357
member's accumulated contributions to that uniform system shall, 1358
in computing years of service, be given fullmay obtain credit for 1359
service credit earned under Chapter 742. or 5505. of the Revised 1360
Code or for military service credit if, forall of the following 1361
conditions are met:1362

       (1) The member is eligible, or with the credit will be 1363
eligible, for a retirement or disability benefit.1364

       (2) The member agrees to retire or accept a disability 1365
benefit not later than ninety days after receiving notice from the 1366
public employees retirement system that the credit has been 1367
obtained.1368

       (3) For each year of service, the public employees retirement 1369
system receives the sum of the following:1370

       (1)(a) An amount, which shall be paid by the member, equal to 1371
the amount refunded by the uniform system to the member for that 1372
year for accumulated contributions and payments for military 1373
service credit, with interest at a rate established by the public 1374
employees retirement board on that amount from the date of the 1375
refund to the date of the payment;1376

       (2)(b) Interest, which shall be transferred by the uniform 1377
system, on the amount refunded to the member that is attributable 1378
to the year of service from the last day of the year for which the 1379
service credit was earned or in which payment was made for 1380
military service credit to the date the refund was made;1381

       (3)(c) An amount, which shall be transferred by the uniform 1382
system, equal to the lesser of the employer's contributions to the 1383
uniform system or the amount that would have been contributed by 1384
the employer for the service had the member been employed by the 1385
member's current employer as a member of the public employees 1386
retirement system at the time the credit was earned, with interest 1387
on that amount from the last day of the year for which the service 1388
credit was earned or in which payment was made for military 1389
service credit to the date of the transfer.1390

       On receipt of payment from the member, the public employees 1391
retirement system shall notify the uniform system, which, on 1392
receipt of the notice, shall make the transfer required by this 1393
division. Interest shall be determined as provided in division (H) 1394
of this section.1395

       (D) A member of the public employees retirement system who 1396
purchased credit under former division (A)(1) of this section, as 1397
it existed before August 25, 1995, for service as a member of a 1398
uniform retirement system may elect to have the amount the member 1399
paid for this service credit refunded to the member under this 1400
division if the member agrees to repurchase this service credit 1401
pursuant to division (C) of this section.1402

       (E) Service credit purchased or otherwise obtained under this 1403
section shall be considered the equivalent of Ohio service credit, 1404
except that it shall not be used in determining eligibility for 1405
any benefit provided under section 145.58 of the Revised Code.1406

       The public employees retirement system shall withdraw the 1407
credit and refund all amounts paid or transferred under this 1408
section if either of the following occurs:1409

       (1) The member fails to retire or accept a disability benefit 1410
not later than ninety days after receiving notice from the public 1411
employees retirement system that credit has been obtained.1412

       (2) The member's application for a disability benefit is 1413
denied.1414

       A member may choose to purchase only part of the credit the 1415
member is eligible to purchase under division (C) of this section1416
in any one payment, subject to rules of the public employees 1417
retirement board. A member is ineligible to purchase or otherwise 1418
obtain credit under this section for service to be used in 1419
calculation of any retirement benefit currently being paid or 1420
payable to the member in the future under any other retirement 1421
program or for service credit that may be transferred under 1422
section 145.2913 of the Revised Code.1423

       (F) If a member of the public employees retirement system who 1424
is not a current contributor elects to receive credit under 1425
section 742.21 or 5505.40 of the Revised Code for service for 1426
which the member contributed to the system or made payment for 1427
military service credit, the system shall transfer to the Ohio 1428
police and fire pension fund or the state highway patrol 1429
retirement system, as applicable, the amount specified in division 1430
(D) of section 742.21 or division (B)(2) of section 5505.40 of the 1431
Revised Code.1432

       (G) A member of the public employees retirement system who 1433
earned service credit in the public employees retirement system 1434
for full-time service as a township or municipal police officer 1435
and received service credit in the Ohio police and fire pension 1436
fund under section 742.511 or 742.512 of the Revised Code for such 1437
service may elect to have the credit restored as public employees 1438
retirement system service credit by paying the public employees 1439
retirement system an amount equal to the accumulated contributions 1440
paid by the member to the Ohio police and fire pension fund under 1441
section 742.511 or 742.512 of the Revised Code. When such an 1442
election is made, the Ohio police and fire pension fund shall 1443
transfer to the public employees retirement system the amount 1444
previously transferred under section 742.511 or 742.512 of the 1445
Revised Code from the public employees retirement system to the 1446
Ohio police and fire pension fund.1447

       (H) Interest charged under this section shall be calculated 1448
separately for each year of service credit. Unless otherwise 1449
specified in this section, it shall be calculated at the lesser of 1450
the actuarial assumption rate for that year of the public 1451
employees retirement system or of the uniform retirement system in 1452
which the credit was earned. The interest shall be compounded 1453
annually.1454

       (I) At the request of the public employees retirement system, 1455
the uniform retirement system shall certify to the public 1456
employees retirement system a copy of the records of the service 1457
and contributions of a public employees retirement system member 1458
who seeks service credit under this section.1459

       Sec. 145.297.  (A) As used in this section, "employing unit" 1460
means:1461

       (1) A municipal corporation, agency of a municipal 1462
corporation designated by the legislative authority, park 1463
district, conservancy district, sanitary district, health 1464
district, township, department of a township designated by the 1465
board of township trustees, metropolitan housing authority, public 1466
library, county law library, union cemetery, joint hospital, or 1467
other political subdivision or unit of local government.1468

       (2) With respect to state employees, any entity of the state 1469
including any department, agency, institution of higher education, 1470
board, bureau, commission, council, office, or administrative body 1471
or any part of such entity that is designated by the entity as an 1472
employing unit.1473

       (3)(a) With respect to employees of a board of alcohol, drug 1474
addiction, and mental health services, that board.1475

       (b) With respect to employees of a county board of 1476
developmental disabilities, that board.1477

       (c) With respect to other county employees, the county or any 1478
county agency designated by the board of county commissioners.1479

       (4) In the case of an employee whose employing unit is in 1480
question, the employing unit is the unit through whose payroll the 1481
employee is paid.1482

       (B) An employing unit may establish a retirement incentive 1483
plan for its eligible employees. In the case of a county or county 1484
agency, decisions on whether to establish a retirement incentive 1485
plan for any employees other than employees of a board of alcohol, 1486
drug addiction, and mental health services or county board of 1487
developmental disabilities and on the terms of the plan shall be 1488
made by the board of county commissioners. In the case of a 1489
municipal corporation or an agency of a municipal corporation, 1490
decisions on whether to establish a retirement incentive plan and 1491
on the terms of the plan shall be made by the legislative 1492
authority.1493

       All terms of a retirement incentive plan shall be in writing.1494

       A retirement incentive plan shall provide for purchase by the 1495
employing unit of service credit for eligible employees who elect 1496
to participate in the plan and for payment by the employing unit 1497
of the entire cost of the service credit purchased.1498

       Every retirement incentive plan shall remain in effect for at 1499
least one year. The employing unit shall give employees at least 1500
thirty days' notice before terminating the plan.1501

       Every retirement incentive plan shall include provisions for 1502
the timely and impartial resolution of grievances and disputes 1503
arising under the plan.1504

       No employing unit shall have more than one retirement 1505
incentive plan in effect at any time.1506

       (C) Any classified or unclassified employee of the employing 1507
unit who is a member of the public employees retirement system 1508
shall be eligible to participate in the retirement incentive plan 1509
established by the employee's employing unit if the employee meets 1510
the following criteria:1511

       (1) The employee is not any of the following:1512

       (a) An elected official;1513

       (b) A member of a board or commission;1514

       (c) A person elected to serve a term of fixed length;1515

       (d) A person appointed to serve a term of fixed length, other 1516
than a person appointed and employed by the person's employing 1517
unit.1518

       (2) The employee is or will be eligible to retire under 1519
section 145.32145.33, 145.34, or 145.37, or division (A) of 1520
section 145.33 of the Revised Code on or before the date of 1521
termination of the retirement incentive plan. Service credit to be 1522
purchased for the employee under the retirement incentive plan 1523
shall be included in making such determination.1524

       (3) The employee agrees to retire under section 145.321525
145.33, 145.34, or 145.37, or division (A) of section 145.33 of 1526
the Revised Code within ninety days after receiving notice from 1527
the public employees retirement system that service credit has 1528
been purchased for the employee under this section.1529

       Participation in the plan shall be available to all eligible 1530
employees except that the employing unit may limit the number of 1531
participants in the plan to a specified percentage of its 1532
employees who are members of the public employees retirement 1533
system on the date the plan goes into effect. The percentage shall 1534
not be less than five per cent of such employees. If participation 1535
is limited, employees with more total service credit have the 1536
right to elect to participate before employees with less total 1537
service credit. In the case of employees with the same total 1538
service credit, employees with a greater length of service with 1539
the employing unit have the right to elect to participate before 1540
employees with less service with the employing unit. Employees 1541
with less than eighteen months of service with the employing unit 1542
have the right to elect to participate only after all other 1543
eligible employees have been given the opportunity to elect to 1544
participate. For the purpose of determining which employees may 1545
participate in a plan, total service credit includes service 1546
credit purchased by the employee under this chapter after the date 1547
on which the plan is established.1548

       A retirement incentive plan that limits participation may 1549
provide that an employee who does not notify the employing unit of 1550
the employee's decision to participate in the plan within a 1551
specified period of time will lose priority to participate in the 1552
plan ahead of other employees with less seniority. The time given 1553
to an employee to elect to participate ahead of other employees 1554
shall not be less than thirty days after the employee receives 1555
written notice that the employee may participate in the plan.1556

       (D) A retirement incentive plan shall provide for purchase of 1557
the same amount of service credit for each participating employee, 1558
except that the employer may not purchase more service credit for 1559
any employee than the lesser of the following:1560

       (1) Five years of service credit;1561

       (2) An amount of service credit equal to one-fifth of the 1562
total service credited to the participant under this chapter, 1563
exclusive of service credit purchased under this section.1564

       For each year of service credit purchased under this section, 1565
the employing unit shall pay an amount equal to the additional 1566
liability resulting from the purchase of that year of service 1567
credit, as determined by an actuary employed by the public 1568
employees retirement board.1569

       (E) Upon the election by an eligible employee to participate 1570
in the retirement incentive plan, the employee and the employing 1571
unit shall agree upon a date for payment or contracting for 1572
payment in installments to the public employees retirement system 1573
of the cost of the service credit to be purchased. The employing 1574
unit shall submit to the public employees retirement system a 1575
written request for a determination of the cost of the service 1576
credit, and within forty-five days after receiving the request, 1577
the board shall give the employing unit written notice of the 1578
cost.1579

       The employing unit shall pay or contract to pay in 1580
installments the cost of the service credit to be purchased to the 1581
public employees retirement system on the date agreed to by the 1582
employee and the employing unit. The payment shall be made in 1583
accordance with rules adopted by the public employees retirement 1584
board. The rules may provide for payment in installments and for 1585
crediting the purchased credit to the employee's account upon the 1586
employer's contracting to pay the cost in installments. The board 1587
shall notify the member when the member is credited with service 1588
purchased under this section. If the employee does not retire 1589
within ninety days after receiving notice that the employee has 1590
been credited with the purchased service credit, the system shall 1591
refund to the employing unit the amount paid for the service 1592
credit.1593

       No payment made to the public employees retirement system 1594
under this section shall affect any payment required by section 1595
145.48 of the Revised Code.1596

       (F) For the purpose of determining whether the cost of a 1597
retirement incentive plan established by a county or county agency 1598
under this section is an allowable cost for the purpose of federal 1599
funding for any year, the cost shall be considered abnormal or 1600
mass severance pay only if fifteen per cent or more of the county 1601
or county agency's employees participate in the plan in that year.1602

        Nothing in this division shall relieve a county or county 1603
agency from seeking federal approval for any early retirement 1604
incentive plan that uses federal dollars in accordance with 1605
federal law.1606

       Sec. 145.298.  (A) As used in this section:1607

       (1) "State employing unit" means an employing unit described 1608
in division (A)(2) of section 145.297 of the Revised Code, except 1609
that it does not mean an employing unit with fifty or fewer 1610
employees.1611

       (2) "State institution" means a state correctional facility, 1612
a state institution for the mentally ill, or a state institution 1613
for the care, treatment, and training of the mentally retarded.1614

       (B)(1) Prior to the effective date of this amendmentJuly 17, 1615
2009, in the event of a proposal to close a state institution or 1616
lay off, within a six-month period, a number of persons employed 1617
at an institution that equals or exceeds the lesser of fifty or 1618
ten per cent of the persons employed at the institution, the 1619
employing unit responsible for the institution's operation shall 1620
establish a retirement incentive plan for persons employed at the 1621
institution.1622

       (2) On and after the effective date of this amendmentJuly 1623
17, 2009, in the event of a proposal to close a state institution 1624
or lay off, within a six-month period, a number of persons 1625
employed at an institution that equals or exceeds the lesser of 1626
three hundred fifty or forty per cent of the persons employed at 1627
the institution, the employing unit responsible for the 1628
institution's operation shall establish a retirement incentive 1629
plan for persons employed at the institution.1630

       (C)(1) Prior to the effective date of this amendmentJuly 17, 1631
2009, in the event of a proposal, other than the proposals 1632
described in division (B) of this section, to lay off, within a 1633
six-month period, a number of employees of a state employing unit 1634
that equals or exceeds the lesser of fifty or ten per cent of the 1635
employing unit's employees, the employing unit shall establish a 1636
retirement incentive plan for employees of the employing unit.1637

       (2) On and after the effective date of this amendmentJuly 1638
17, 2009, in the event of a proposal, other than the proposals 1639
described in division (B) of this section, to lay off, within a 1640
six-month period, a number of employees of a state employing unit 1641
that equals or exceeds the lesser of three hundred fifty or forty 1642
per cent of the employing unit's employees, the employing unit 1643
shall establish a retirement incentive plan for employees of the 1644
employing unit.1645

       (D)(1) A retirement incentive plan established under this 1646
section shall be consistent with the requirements of section 1647
145.297 of the Revised Code, except as provided in division (D)(2) 1648
of this section and except that the plan shall go into effect at 1649
the time the layoffs or proposed closings are announced and shall 1650
remain in effect until the date of the layoffs or closings.1651

       (2) A retirement incentive plan established under this 1652
section due to the proposed closing of a state institution by the 1653
department of mental health prior to July 1, 1997, shall be 1654
consistent with the requirements of section 145.297 of the Revised 1655
Code, except as follows:1656

       (a) The employing unit shall purchase at least three years of 1657
service credit for each participating employee, except that it 1658
shall not purchase more service credit than the amount allowed by 1659
division (D) of section 145.297 of the Revised Code;1660

       (b) The plan shall go into effect at the time the proposed 1661
closing is announced and shall remain in effect at least until the 1662
date of the closing.1663

       (3) If the employing unit already has a retirement incentive 1664
plan in effect, the plan shall remain in effect at least until the 1665
date of the layoffs or closings. The employing unit may revise the 1666
existing plan to provide greater benefits, but if it revises the 1667
plan, it shall give written notice of the changes to all employees 1668
who have elected to participate in the original plan, and it shall 1669
provide the greater benefits to all employees who participate in 1670
the plan, whether their elections to participate were made before 1671
or after the date of the revision.1672

       Sec. 145.299.  (A) As used in this section, "school board 1673
member" means a member of a city, local, exempted village, or 1674
joint vocational school district board of education and "governing 1675
board member" means a member of an educational service center 1676
governing board.1677

       (B) A member of the public employees retirement system may 1678
purchase credit for service as a school board member if all of the 1679
following conditions are met:1680

       (1) The member is eligible to retire under this chapter or 1681
will become eligible to retire as a result of purchasing the 1682
credit.1683

       (2) The member agrees to retire within ninety days after 1684
receiving notice of the additional liability under division (C) of 1685
this section 145.29 of the Revised Code.1686

       (3) The retirement system receives certification of the 1687
member's service and compensation as a school board or governing 1688
board member from the board of education or governing board of the 1689
district or educational service center in which the member served 1690
or, if that district or educational service center no longer 1691
exists, the board or governing board that controls the territory, 1692
or the largest part of the territory, of the district or 1693
educational service center in which the member served.1694

       (C) Credit shall be purchased under this section in 1695
accordance with section 145.29 of the Revised Code, except that 1696
payment for the credit or portion of credit shall be paid in full 1697
at the time of purchase.1698

       (D) The retirement system shall calculate the amount of 1699
credit the member is eligible to purchase by dividing the 1700
compensation received pursuant to section 3313.12 of the Revised 1701
Code for each month served as a school board or governing board 1702
member by the amount of compensation that, for the same month, the 1703
retirement system considered equivalent to full-time service.1704

       (E) Credit may be purchased for service as a school board or 1705
governing board member, other than service subject to the tax on 1706
wages imposed by the "Federal Insurance Contributions Act," 68A 1707
Stat. 415 (1954), 26 U.S.C.A. 3101, as amended, between January 1, 1708
1935, and the first day of January of the year in which the credit 1709
is purchased. A member may purchase not more than one-twelfth of a 1710
year's credit for each month of service as a school board or 1711
governing board member.1712

       (C) On receipt of a request from a member eligible to 1713
purchase credit under this section, the system shall obtain from 1714
its actuary certification of the additional liability to the 1715
system for each month of credit the member is eligible to 1716
purchase, and shall notify the member of such additional 1717
liability. The member may purchase in one-month increments any 1718
portion of the credit the member is eligible to purchase. For each 1719
month of credit purchased, the member shall pay to the system an 1720
amount equal to the additional liability resulting from the 1721
purchase. Payment shall be made in full at the time of purchase.1722

       (D)(F) The public employees retirement board shall adopt 1723
rules in accordance with section 111.15 of the Revised Code 1724
concerning the purchase of credit under this section. In addition 1725
to any other matters considered relevant by the retirement board, 1726
the rules shall specify the procedure to be followed by a member 1727
to inform the system of the member's desire to purchase credit for 1728
service as a school board or governing board member.1729

       (E)(G) If the member does not retire within ninety days after 1730
purchasing credit under this section, the system shall withdraw 1731
the credit and refund the amount paid by the member.1732

       Sec. 145.2911.  (A) If the conditions described in division 1733
(B) of section 145.2910 of the Revised Code are met, a member of 1734
the public employees retirement system who is not receiving a 1735
pension or benefit from the public employees retirement system is 1736
eligible to obtain credit for service as a member of the 1737
Cincinnati retirement system under this section.1738

       (B) A member of the public employees retirement system who 1739
has contributions on deposit with, but is no longer contributing 1740
to, the Cincinnati retirement system shall, in computing years of 1741
service credit, be given credit for service credit earned under 1742
the Cincinnati retirement system or purchased or obtained as 1743
military service credit if, forall of the following conditions 1744
are met:1745

       (1) The member is eligible, or with the credit will be 1746
eligible, for a retirement or disability benefit.1747

       (2) The member agrees to retire or accept a disability 1748
benefit not later than ninety days after receiving notice from the 1749
public employees retirement system that the credit has been 1750
obtained.1751

       (3) For each year of service, the Cincinnati retirement 1752
system transfers to the public employees retirement system the sum 1753
of the following:1754

       (1)(a) The amount contributed by the member, or, in the case 1755
of military service credit, paid by the member, that is 1756
attributable to the year of service;1757

       (2)(b) An amount equal to the lesser of the employer's 1758
contributions to the Cincinnati retirement system or the amount 1759
that would have been contributed by the employer for the service 1760
had the member been employed by the member's current employer as a 1761
member of the public employees retirement system at the time the 1762
credit was earned;1763

       (3)(c) Interest on the amounts specified in divisions 1764
(B)(1)(3)(a) and (2)(b) of this section from the last day of the 1765
year for which the service credit was earned or in which payment 1766
was made for military service credit to the date the transfer is 1767
made.1768

       (C) A member of the public employees retirement system with 1769
at least eighteen months of contributing service credit with the 1770
public employees retirement system who has received a refund of 1771
the member's contributions to the Cincinnati retirement system1772
shall, in computing years of service, be givenmay obtain credit 1773
for service credit earned under the Cincinnati retirement system 1774
or purchased or obtained as military service credit if, forall of 1775
the following conditions are met:1776

       (1) The member is eligible, or with the credit will be 1777
eligible, for a retirement or disability benefit.1778

       (2) The member agrees to retire or accept a disability 1779
benefit not later than ninety days after receiving notice from the 1780
public employees retirement system that the credit has been 1781
obtained.1782

       (3) For each year of service, the public employees retirement 1783
system receives the sum of the following:1784

       (1)(a) An amount, paid by the member, equal to the sum of the 1785
following:1786

       (a)(i) The amount refunded by the Cincinnati retirement 1787
system to the member for that year for contributions and payments 1788
for military service, with interest at a rate established by the 1789
public employees retirement board on that amount from the date of 1790
the refund to the date of payment;1791

       (b)(ii) The amount of interest, if any, the member received 1792
when the refund was made that is attributable to the year of 1793
service.1794

       (2)(b) An amount, transferred by the Cincinnati retirement 1795
system to the public employees retirement system, equal to the sum 1796
of the following:1797

       (a)(i) Interest on the amount refunded to the member that is 1798
attributable to the year of service from the last day of the year 1799
for which the service credit was earned or in which payment was 1800
made for military service credit to the date the refund was made;1801

       (b)(ii) An amount equal to the lesser of the employer's 1802
contributions to the Cincinnati retirement system or the amount 1803
that would have been contributed by the employer for the service 1804
had the member been employed by the member's current employer as a 1805
member of the public employees retirement system at the time the 1806
credit was earned, with interest on that amount from the last day 1807
of the year for which the service credit was earned to the date of 1808
the transfer.1809

       (D) The amount transferred under division (C)(2)(a)(3)(b)(i)1810
of this section shall not include any amount of interest the 1811
Cincinnati retirement system paid to the person when it made the 1812
refund.1813

       (E) On receipt of payment from the member under division 1814
(C)(1)(3)(a) of this section, the public employees retirement 1815
system shall notify the Cincinnati retirement system. On receipt 1816
of the notice, the Cincinnati retirement system shall transfer the 1817
amount described in division (C)(2)(3)(b) of this section.1818

       (F) Interest charged under this section shall be calculated 1819
separately for each year of service credit. Unless otherwise 1820
specified in this section, it shall be calculated at the lesser of 1821
the actuarial assumption rate for that year of the public 1822
employees retirement system or the Cincinnati retirement system. 1823
The interest shall be compounded annually.1824

       (G) At the request of the public employees retirement system, 1825
the Cincinnati retirement system shall certify to the public 1826
employees retirement system a copy of the records of the service 1827
and contributions of a member of the public employees retirement 1828
system who seeks service credit under this section.1829

       (H) Service credit purchased or otherwise obtained under this 1830
section shall be considered the equivalent of Ohio service credit, 1831
except that it shall not be used in determining eligibility for 1832
any benefit provided under section 145.58 of the Revised Code.1833

       The public employees retirement system shall withdraw the 1834
credit and refund all amounts paid or transferred under this 1835
section if either of the following occurs:1836

       (1) The member fails to retire or accept a disability benefit 1837
not later than ninety days after receiving notice from the public 1838
employees retirement system that credit has been obtained under 1839
this section.1840

       (2) The member's application for a disability benefit is 1841
denied.1842

       (I) A member may choose to purchase only part of the credit 1843
the member is eligible to purchase under division (C) of this 1844
section in any one payment, subject to rules of the public 1845
employees retirement board.1846

       (J) A member is ineligible to purchase or otherwise obtain 1847
credit under this section for the service to be used in 1848
calculation of any retiremementretirement benefit currently being 1849
paid or payable to the member in the future.1850

       Sec. 145.2912.  (A) If the conditions described in division 1851
(B) of section 145.2910 of the Revised Code are met and a person 1852
who is a member or former member of the public employees 1853
retirement system but not a current contributor and who is not 1854
receiving a pension or benefit from the public employees 1855
retirement system elects to receive credit under the Cincinnati 1856
retirement system for service for which the person contributed to 1857
the public employees retirement system or purchased or obtained as 1858
military service credit, the public employees retirement system 1859
shall transfer the amounts specified in divisions (B)(A)(3)(a) and 1860
(C)(b) of this section to the Cincinnati retirement system. A 1861
person may obtain credit if all of the following conditions are 1862
met:1863

       (1) The member is eligible, or with the credit will be 1864
eligible, for a retirement or disability benefit.1865

       (2) The member agrees to retire or accept a disability 1866
benefit not later than ninety days after receiving notice from the 1867
public employees retirement system that the credit has been 1868
obtained.1869

       (B)(3)(a) If the person has contributions on deposit with the 1870
public employees retirement system, the public employees 1871
retirement system shall, for each year of service credit, transfer1872
transfers to the Cincinnati retirement system the sum of the 1873
following:1874

       (1)(i) An amount equal to the person's contributions to the 1875
public employees retirement system and payments made by the member 1876
for military service credit;1877

       (2)(ii) An amount equal to the lesser of the employer's 1878
contributions to the public employees retirement system or the 1879
amount that would have been contributed by the employer for the 1880
service had the person been a member of the Cincinnati retirement 1881
system at the time the credit was earned;1882

       (3)(iii) Interest on the amounts specified in divisions 1883
(B)(1)(A)(3)(a)(i) and (2)(ii) of this section for the period 1884
from the last day of the year for which the service credit was 1885
earned or in which payment was made for military service credit to 1886
the date the transfer was made.1887

       (C)(1)(b) If the person has received a refund of accumulated 1888
contributions to the public employees retirement system, the 1889
public employees retirement system shall, for each year of service 1890
credit, transfertransfers to the Cincinnati retirement system the 1891
sum of the following:1892

       (a)(i) Interest on the amount refunded to the former member 1893
that is attributable to the year of service from the last day of 1894
the year for which the service credit was earned or in which 1895
payment was made for military service credit to the date the 1896
refund was made;1897

       (b)(ii) An amount equal to the lesser of the employer's 1898
contributions to the public employees retirement system or the 1899
amount that would have been contributed by the employer for the 1900
service had the person been a member of the Cincinnati retirement 1901
system at the time the credit was earned, with interest on that 1902
amount from the last day of the year for which the service credit 1903
was earned to the date of the transfer.1904

       (2)(B) The amount transferred under division (C)(1)(A)(3)(b)1905
of this section shall not include any amount of the employer's 1906
contributions or interest on employee contributions the person 1907
received under section 145.40 of the Revised Code.1908

       (3)(C) On receipt of notice from the Cincinnati retirement 1909
system that the Cincinnati retirement system has received payment 1910
from a person described in division (C)(1)(A)(3)(b) of this 1911
section, the public employees retirement system shall transfer the 1912
amount described in that division.1913

       (D) Interest charged under this section shall be calculated 1914
separately for each year of service credit. Unless otherwise 1915
specified in this section, it shall be calculated at the lesser of 1916
the actuarial assumption rate for that year of the public 1917
employees retirement system or the Cincinnati retirement system. 1918
The interest shall be compounded annually.1919

       (E) The transfer of any amount under this section cancels an 1920
equivalent amount of service credit.1921

       (F) At the request of the Cincinnati retirement system, the 1922
public employees retirement system shall certify to the Cincinnati 1923
retirement system a copy of the records of the service and 1924
contributions of a member or former member of the public employees 1925
retirement system who elects to receive service credit under the 1926
Cincinnati retirement system.1927

       Sec. 145.2913. (A) As used in this section, "transferred 1928
service credit" means service credit purchased or obtained under 1929
section 742.21, 742.214, 742.375, 5505.201, 5505.40, or 5505.41 of 1930
the Revised Code prior to the date a member commenced the 1931
employment covered by the public employees retirement system for 1932
which the member is currently contributing to the system.1933

       (B) A member of the public employees retirement system who 1934
has contributions on deposit with, but is no longer contributing 1935
to, a uniform retirement system shall, in computing years of 1936
service, be given full credit for transferred service credit if a 1937
transfer to the public employees retirement system is made under 1938
this sectiondivision. At the request of a member a transfer shall 1939
be made if all of the following conditions are met:1940

       (1) The member is eligible, or with the credit will be 1941
eligible, for a retirement or disability benefit.1942

       (2) The member agrees to retire or accept a disability 1943
benefit not later than ninety days after receiving notice from the 1944
public employees retirement system that the credit has been 1945
obtained.1946

       (3) For each year of service, the uniform system shall 1947
transfertransfers to the public employees retirement system the 1948
sum of the following:1949

       (1)(a) An amount equal to the amounts transferred to the 1950
uniform system under section 742.21, 742.214, 742.375, 5505.201, 1951
5505.40, or 5505.41 of the Revised Code;1952

       (2)(b) Interest, determined as provided in division (E) of 1953
this section, on the amount specified in division (B)(1)(3)(a) of 1954
this section for the period from the last day of the year in which 1955
the transfer under section 742.21, 742.214, 742.375, 5505.201, 1956
5505.40, or 5505.41 of the Revised Code was made to the date a 1957
transfer is made under this section.1958

       (C) A member of the public employees retirement system with 1959
at least eighteen months of contributing service credit with the 1960
public employees retirement system who has received a refund of 1961
contributions to a uniform retirement system shall, in computing 1962
years of service, be given full credit for transferred service 1963
credit if, forall of the following conditions are met:1964

       (1) The member is eligible, or with the credit will be 1965
eligible, for a retirement or disability benefit.1966

       (2) The member agrees to retire or accept a disability 1967
benefit not later than ninety days after receiving notice from the 1968
public employees retirement system that the credit has been 1969
obtained.1970

       (3) For each year of service, the public employees retirement 1971
system receives the sum of the following:1972

       (1)(a) An amount, which shall be paid by the member, equal to 1973
the amount refunded by the uniform system to the member for that 1974
year for transferred service credit, with interest on that amount 1975
from the date of the refund to the date a payment is made under 1976
this section;1977

       (2)(b) Interest, which shall be transferred by the uniform 1978
system, on the amount refunded to the member for the period from 1979
the last day of the year in which the transfer under section 1980
742.21, 742.214, 742.375, 5505.201, 5505.40, or 5505.41 of the 1981
Revised Code was made to the date the refund was made;1982

       (3)(c) If the uniform system retained any portion of the 1983
amount transferred under section 742.21, 742.214, 742.375, 1984
5505.201, 5505.40, or 5505.41 of the Revised Code, an amount, 1985
which shall be transferred by the uniform system, equal to the 1986
amount retained, with interest on that amount for the period from 1987
the last day of the year in which the transfer under section 1988
742.21, 742.214, 742.375, 5505.201, 5505.40, or 5505.41 of the 1989
Revised Code was made to the date a transfer is made under this 1990
section.1991

       On receipt of payment from the member, the public employees 1992
retirement system shall notify the uniform system, which, on 1993
receipt of the notice, shall make the transfer required by this 1994
division. Interest shall be determined as provided in division (E) 1995
of this section.1996

       (D) Service credit purchased or obtained under this section 1997
shall be considered the equivalent of Ohio service credit, except 1998
that it shall not be used in determining eligibility for any 1999
benefit provided under section 145.58 of the Revised Code if the 2000
transferred service credit was earned in a retirement system other 2001
than the public employees retirement system. A member may choose 2002
to purchase only part of the credit the member is eligible to 2003
purchase under division (C) of this section in any one payment, 2004
subject to rules adopted by the public employees retirement board. 2005
A member is ineligible to purchase or obtain service credit under 2006
this section for service to be used in the calculation of any 2007
retirement benefit currently being paid or payable to the member 2008
in the future under any other retirement program or for service 2009
credit that may be purchased or obtained under section 145.295 of 2010
the Revised Code.2011

       (E) Interest charged under this section shall be calculated 2012
separately for each year of service credit at the lesser of the 2013
actuarial assumption rate for that year of the public employees 2014
retirement system or of the uniform retirement system to which the 2015
credit was transferred under section 742.21, 742.214, 742.375, 2016
5505.201, 5505.40, or 5505.41 of the Revised Code. The interest 2017
shall be compounded annually.2018

       (F) Any amounts transferred or paid under divisions (B) and 2019
(C) of this section that are attributable to contributions made by 2020
the member or to amounts paid to purchase service credit shall be 2021
credited to the employees' savings fund created under section 2022
145.23 of the Revised Code. Any remaining amounts shall be 2023
credited to one or more of the funds created under that section as 2024
determined by the board.2025

       (G) At the request of the public employees retirement system, 2026
the uniform retirement system shall certify to the public 2027
employees retirement system a copy of the records of the service 2028
and contributions of a public employees retirement system member 2029
who seeks service credit under this section. The uniform 2030
retirement system shall specify the portions of the amounts 2031
transferred that are attributable to employee contributions, 2032
employer contributions, and interest.2033

       (H) If a member of the public employees retirement system who 2034
is not a current contributor elects to receive service credit 2035
under section 742.214 or 5505.41 of the Revised Code for 2036
transferred service credit, as defined in those sections, the 2037
system shall transfer to the uniform retirement system, as 2038
applicable, the amount specified in division (B) or (C) of section 2039
742.214 or division (B) or (C) of section 5505.41 of the Revised 2040
Code.2041

       (I) The public employees retirement system shall withdraw the 2042
credit and refund all amounts paid or transferred under this 2043
section if either of the following occurs:2044

       (1) The member fails to retire or accept a disability benefit 2045
not later than ninety days after receiving notice from the public 2046
employees retirement system that credit has been obtained under 2047
this section.2048

       (2) The member's application for a disability benefit is 2049
denied.2050

       (J) The board may adopt rules to implement this section.2051

       Sec. 145.2914. (A) The public employees retirement board may 2052
adopt rules in accordance with section 145.09 of the Revised Code 2053
to establish a program under which service credit earned under 2054
division (A) or (B)(2)(b) of section 145.33 of the Revised Code or 2055
division (B)(1)(b) or (C)(1)(b) of section 145.332 of the Revised 2056
Code is treated as service credit earned under division 2057
(B)(2)(a)(B)(1)(a) or (C)(1)(a) of that section 145.332 of the 2058
Revised Code if the member makes payment to the public employees 2059
retirement system in accordance with the rules.2060

       (B) If the board adopts rules under division (A) of this 2061
section, all of the following apply:2062

       (1) For each year or portion of a year of service credit 2063
earned under division (A) or (B)(2)(b) of section 145.33 of the 2064
Revised Code or division (B)(1)(b) or (C)(1)(b) of section 145.332 2065
of the Revised Code that is to be treated as service credit earned 2066
under division (B)(2)(a)(B)(1)(a) or (C)(1)(a) of that section 2067
145.332 of the Revised Code, the member shall pay to the 2068
retirement system an amount specified by the retirement board that 2069
is not less than one hundred per cent of the additional liability 2070
resulting from the purchase of that year, or portion of a year, of 2071
service.2072

       (2) The number of years of service credit earned under 2073
division (A) or (B)(2)(b) of section 145.33 of the Revised Code or 2074
division (B)(1)(b) or (C)(1)(b) of section 145.332 of the Revised 2075
Code that may be treated as service credit earned under division 2076
(B)(2)(a)(B)(1)(a) or (C)(1)(a) of that section 145.332 of the 2077
Revised Code shall not exceed five.2078

       (3) Any amounts paid under this section shall be credited to 2079
the employees' savings fund.2080

       (4) The amounts paid by the member under this section are 2081
subject to the limits established by division (n) of section 415 2082
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 2083
415(n), as amended.2084

       (C) A member may make payments authorized by this section if 2085
the member is eligible to retire under this chapter or will become 2086
eligible to retire as a result of the payment. The member shall 2087
agree to retire not later than ninety days after receiving notice 2088
of the additional liability specified under division (B)(1) of 2089
this section. Payment shall be made in full for any credit earned 2090
under division (A) or (B)(2)(b) of section 145.33 of the Revised 2091
Code or division (B)(1)(b) or (C)(1)(b) of section 145.332 of the 2092
Revised Code that is to be treated as service credit earned under 2093
division (B)(2)(a)(B)(1)(a) or (C)(1)(a) of that section 145.332 2094
of the Revised Code, but the member may choose to make payment for 2095
only part of the credit for which the member is eligible.2096

       (D) If the member does not retire not later than ninety days 2097
after making the payment authorized by this section, the system 2098
shall refund the payment and shall not treat the credit for which 2099
payment was made as service credit earned under division 2100
(B)(2)(a)(B)(1)(a) or (C)(1)(a) of section 145.33145.332 of the 2101
Revised Code.2102

       (E) The board's rules may deal with any other matter 2103
necessary to implement this section.2104

       Sec. 145.2915. (A) As used in this section, "workers' 2105
compensation" means benefits paid under Chapter 4121. or 4123. of 2106
the Revised Code.2107

       (B) A member of the public employees retirement system may 2108
purchase service credit under this section for any period during 2109
which the member was out of service and receiving workers' 2110
compensation.2111

       (C) For credit purchased under this section:2112

       (1) If the member is employed by one public employer, for 2113
each year of credit, the member shall pay to the system for credit 2114
to the employees' savings fund an amount equal to the employee 2115
contribution required under section 145.47 of the Revised Code 2116
that would have been paid had the member not been out of service 2117
based on the salary of the member before the member was out of 2118
service. To this amount shall be added an amount equal to compound 2119
interest at a rate established by the public employees retirement 2120
board from the first date the member was out of service to the 2121
final date of payment.2122

       (2) If the member is employed by more than one public 2123
employer, the member is eligible to purchase credit under this 2124
section and make payments under division (C)(2) of this section 2125
only for the position for which the member received workers' 2126
compensation. For each year of credit, the member shall pay to the 2127
system for credit to the employees' savings fund an amount equal 2128
to the employee contribution required under section 145.47 of the 2129
Revised Code that would have been paid had the member not been out 2130
of service based on the salary of the member earned for the 2131
position for which the member received workers' compensation 2132
before the member was out of service. To this amount shall be 2133
added an amount equal to compound interest at a rate established 2134
by the public employees retirement board from the first date the 2135
member was out of service to the final date of payment.2136

        (D) The member may choose to purchase only part of such 2137
credit in any one payment, subject to board rules. 2138

       (E) If a member makes a payment under division (C) of this 2139
section, the employer to which workers' compensation benefits are 2140
attributed shall pay to the system for credit to the employers' 2141
accumulation fund an amount equal to the employer contribution 2142
required under section 145.48 of the Revised Code corresponding to 2143
that payment that would have been paid had the member not been out 2144
of service based on the salary of the member before the member was 2145
out of service.2146

       Compound interest at a rate established by the board from the 2147
later of the member's date of re-employment or the effective date 2148
of this section to the date of payment shall be added to this 2149
amount if the employer pays all or any portion of the amount later 2150
than the earlier of five years or a period that is three times the 2151
period during which the member was out of service and receiving 2152
workers' compensation beginning from the later of the member's 2153
date of re-employment or the effective date of this section.2154

       (F) The number of years purchased under this section shall 2155
not exceed three.2156

       Sec. 145.2916. (A) When a member has been elected or 2157
appointed to an office, the term of which is two or more years, 2158
for which an annual salary is established, and in the event that 2159
the salary of the office is increased and the member is denied the 2160
additional salary by reason of any constitutional provision 2161
prohibiting an increase in salary during a term of office, the 2162
member may elect to have the amount of the member's and employer's 2163
contributions calculated upon the basis of the increased salary 2164
for the office. 2165

        At the member's request and on notification to the public 2166
employees retirement system, the public employees retirement board 2167
shall compute the total additional amount the member and employer 2168
would have contributed, or the amount by which each of the 2169
member's and employer's contributions would have increased, had 2170
the member received the increased salary for the office the member 2171
holds. If the member elects to have the combined amount by which 2172
the member's and employer's contribution would have increased 2173
withheld from the member's salary, the member shall notify the 2174
employer, and the employer shall make the withholding commensurate 2175
with the period of denied salary and transmit it to the retirement 2176
system. The payment of the amount by which the employer's 2177
contribution would have increased shall be credited to the 2178
employers' accumulation fund.2179

       If the payment of the increased contributions is made in 2180
accordance with this section, the increased annual salary as 2181
provided by law for the office for the period for which the member 2182
paid increased contributions thereon shall be used in determining 2183
the member's earnable salary for the purpose of computing the 2184
member's final average salary.2185

       (B) If a member dies or withdraws from service, the payment 2186
under division (A) of this section shall be considered as 2187
accumulated contributions of the member.2188

       Sec. 145.30.  (A) As used in this section and section 145.301 2189
of the Revised Code:2190

       (1) "Armed forces" of the United States includes the 2191
following:2192

       (a) Army, navy, air force, marine corps, coast guard, 2193
auxiliary corps as established by congress, red cross nurse 2194
serving with the army, navy, air force, or hospital service of the 2195
United States, army nurse corps, navy nurse corps, full-time 2196
service with the American red cross in a combat zone, and such 2197
other service as may be designated by congress as included 2198
therein;2199

       (b) Personnel of the Ohio national guard and the reserve 2200
components of any of the armed forces enumerated in division 2201
(A)(1) of this section who are called to active duty pursuant to 2202
an executive order issued by the president of the United States or 2203
an act of congress;2204

       (c) Persons on whom United States merchant marine veteran 2205
status has been conferred for service aboard oceangoing merchant 2206
ships in service to the United States during World War II.2207

       (2) "State retirement system" means any of the following: the 2208
Ohio police and fire pension fund, public employees retirement 2209
system, school employees retirement system, state highway patrol 2210
retirement system, or the state teachers retirement system.2211

       (B) Upon reemployment in the public service and completion of 2212
one year of service credit as covered by a state retirement system 2213
or the Cincinnati retirement system, within two years after 2214
service in the armed forces that is terminated in a manner other 2215
than as described in section 4304 of Title 38 of the United States 2216
Code, "Uniformed Services Employment and Reemployment Rights Act 2217
of 1994," 108 Stat. 3149, 38 U.S.C.A. 4304, and presentation of 2218
documentation of the service and subject to rules adopted by the 2219
retirement board, any member of the public employees retirement 2220
system who was a member with not less than one year of payroll 2221
deductions before entering active duty with the armed forces and 2222
maintained membership in the public employees retirement system as 2223
provided by section 145.41 of the Revised Code, and who was or is 2224
out of active service as a public employee by reason of having 2225
become a member of the armed forces of the United States on active 2226
duty or service shall have such service, not in excess of ten 2227
years, consideredincluded as the equivalent of prior military2228
service. Service in the armed forces as established by 2229
documentation of the service, not in excess of ten years, shall 2230
also be consideredincluded as prior military service for a person 2231
who was a public employee and who has acquired service credit for 2232
five years prior to, and within the one year preceding, the date 2233
of entering on active duty in the armed forces of the United 2234
States if such person was reemployed in the public service within 2235
one year after service in the armed forces that is terminated in a 2236
manner other than as described in section 4304 of Title 38 of the 2237
United States Code, "Uniformed Services Employment and 2238
Reemployment Rights Act of 1994," 108 Stat. 3149, 38 U.S.C.A. 2239
4304, and established total service credit as defined in section 2240
145.01 of the Revised Code of twenty years exclusive of credit for 2241
service in the uniformed services, as defined in section 145.302 2242
of the Revised Code. This division shall not serve to cancel any 2243
military service credit earned or granted prior to November 1, 2244
1965.2245

       (C) A member of the public employees retirement system is 2246
ineligible to receive service credit under this section for any 2247
year of military service credit used in the calculation of any 2248
retirement benefit currently being paid to the member or payable 2249
in the future under any other retirement program, except social 2250
security, or used to obtain service credit pursuant to section 2251
145.301 or 145.302 of the Revised Code. At the time such credit is 2252
requested, the member shall certify on a form supplied by the 2253
retirement board that the member does and will conform to this 2254
requirement. This division does not cancel any military service 2255
credit earned prior to March 15, 1979.2256

       Sec. 145.32. (A)(1)(a) A member, who has passed his sixtieth 2257
birthday and hasof the public employees retirement system is 2258
eligible for age and service retirement under this division if, 2259
not later than ten years after the effective date of this 2260
amendment, the member meets one of the following requirements:2261

       (i) Has five or more years of total service credit, or has2262
and has attained age sixty;2263

       (ii) Has twenty-five or more years of total service credit 2264
and has attained his fifty-fifth birthday, or hasage fifty-five;2265

       (iii) Has thirty or more years of total Ohio service credit, 2266
regardless ofat any age, may file.2267

       (b) A member who on the effective date of this amendment has 2268
twenty or more years of total service credit is eligible for age 2269
and service retirement under this division if the member meets one 2270
of the requirements of division (A)(1)(a) of this section, 2271
regardless of when the member meets the requirement.2272

       (c) Service credit purchased or obtained under this chapter 2273
shall be used in determining whether a member has the number of 2274
years of total service credit required under division (A)(1)(a) of 2275
this section only if the purchase or obtainment is completed not 2276
later than ten years after the effective date of this amendment.2277

       (2) A member who is not eligible for age and service 2278
retirement under division (A)(1) of this section, or who became a 2279
member on or after the effective date of this amendment, is 2280
eligible under this division if the member meets one of the 2281
following requirements:2282

       (a) Has five years or more of total service credit and has 2283
attained age sixty-two;2284

       (b) Has twenty-five years or more of total service credit and 2285
has attained age fifty-seven;2286

       (c) Has thirty-two years or more of total service credit and 2287
has attained age fifty-five.2288

       (B) A member seeking to retire shall file with the public 2289
employees retirement board an application for retirement.2290

       Service. Service retirement shall be effective on the first 2291
day of the month immediately following the later of:2292

       (A)(1) The last day for which compensation was paid;2293

       (B)(2) The attainment of minimum age or service credit 2294
eligibility provided under this section;2295

       (3) Ninety days prior to receipt by the board of the member's 2296
completed application for retirement.2297

       An employer may, except as otherwise provided in the "Age 2298
Discrimination in Employment Act of 1967," as amended, 81 Stat. 2299
602, 29 U.S.C. 621 to 634, as of the thirtieth day of June of any 2300
year, terminate the employment of any member who has attained the 2301
age of seventy years. A member may at the time of his retirement 2302
by written designation duly executed and filed with the public 2303
employees retirement board designate a beneficiary to receive any 2304
installment which may remain unpaid at the time of his death. 2305
Except as provided in section 145.46 of the Revised Code, after 2306
the date of his retirement such nomination shall not be changed if 2307
the member elects to receive histhe member's retirement allowance 2308
computed as provided in section 145.46 of the Revised Code as 2309
"plan A," "plan C," or "plan D."2310

       Sec. 145.323.  (A) TheExcept as otherwise provided in this 2311
section, the public employees retirement board shall annually 2312
increase each allowance, pension, or benefit payable under this 2313
chapter by three per cent, except that no allowance, pension, or 2314
benefit shall exceed the limit established by section 415 of the 2315
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 2316
as amended.2317

       Until the last day of December of the fifth full calendar 2318
year after the effective date of this amendment, the increase 2319
shall be three per cent. For each succeeding calendar year, the 2320
increase shall be as follows:2321

       (1) For each allowance, pension, or benefit granted not later 2322
than the effective date of this amendment, three per cent, except 2323
that no allowance, pension, or benefit shall exceed the limit 2324
established by section 415 of the "Internal Revenue Code of 1986," 2325
100 Stat. 2085, 26 U.S.C. 415, as amended;2326

       (2) For each allowance, pension, or benefit granted on or 2327
after the effective date of this amendment, the percentage 2328
increase in the consumer price index, not exceeding three per 2329
cent, as determined by the United States bureau of labor 2330
statistics (U.S. city average for urban wage earners and clerical 2331
workers: "all items 1982-84=100") for the twelve-month period 2332
ending on the thirtieth day of June of the immediately preceding 2333
calendar year. If the consumer price index for that period did not 2334
increase, no increase shall be made under division (A)(2) of this 2335
section. No allowance, pension, or benefit shall exceed the limit 2336
established by section 415 of the "Internal Revenue Code of 1986," 2337
100 Stat. 2085, 26 U.S.C. 415, as amended.2338

       The first increase is payable to all persons becoming 2339
eligible after June 30, 1971, upon such persons receiving an 2340
allowance for twelve months. The increased amount is payable for 2341
the ensuing twelve-month period or until the next increase is 2342
granted under this section, whichever is later. Subsequent 2343
increases shall be determined from the date of the first increase 2344
paid to the former member in the case of an allowance being paid a 2345
beneficiary under an option, or from the date of the first 2346
increase to the survivor first receiving an allowance or benefit 2347
in the case of an allowance or benefit being paid to the 2348
subsequent survivors of the former member.2349

       The date of the first increase under this section becomes the 2350
anniversary date for any future increases.2351

       The allowance or benefit used in the first calculation of an 2352
increase under this section shall remain as the base for all 2353
future increases, unless a new base is established.2354

       (B) If payment of a portion of a benefit is made to an 2355
alternate payee under section 145.571 of the Revised Code, 2356
increases under this section granted while the order is in effect 2357
shall be apportioned between the alternate payee and the benefit 2358
recipient in the same proportion that the amount being paid to the 2359
alternate payee bears to the amount paid to the benefit recipient.2360

       If payment of a portion of a benefit is made to one or more 2361
beneficiaries under "plan F" under division (B)(3)(e) of section 2362
145.46 of the Revised Code, each increase under this section 2363
granted while the plan of payment is in effect shall be divided 2364
among the designated beneficiaries in accordance with the portion 2365
each beneficiary has been allocated.2366

        (C) The board shall make all rules necessary to carry out 2367
this section.2368

       Sec. 145.33.  (A)(1) Except as provided in division (B) or 2369
(C) of this section 145.332 of the Revised Code, a member with at 2370
least five years of total service credit who has attained age 2371
sixty, orof the public employees retirement system who has thirty 2372
years of total Ohio service credit, may applyis eligible for age 2373
and service retirement, whichunder division (A)(1) of section 2374
145.32 of the Revised Code shall consistreceive a retirement 2375
allowance consisting of all of the following:2376

       (1)(a) An annuity having a reserve equal to the amount of the 2377
member's accumulated contributions at that time;2378

       (2)(b) A pension equal to the annuity provided by division 2379
(A)(1)(a) of this section, excluding amounts of the member's 2380
accumulated contributions deposited under former division (Y) of 2381
section 145.01 or former sections 145.02, 145.29, 145.292, and 2382
145.42, or sections 145.20, 145.201, 145.28, 145.291, 145.292, 2383
145.293, 145.299, 145.2916, 145.301, 145.47, and 145.814 of the 2384
Revised Code for the purchase of service credit;2385

       (3)(c) An additional pension, if the member can qualify for 2386
prior military service, equal to forty dollars multiplied by the 2387
number of years, and fraction thereof, of such prior and military 2388
service credit;2389

       (4)(d) A basic annual pension equal to one hundred eighty 2390
dollars if the member has ten or more years of total service 2391
credit as of October 1, 1956, except that the basic annual pension 2392
shall not exceed the sum of the annual benefits provided by 2393
divisions (A)(1)(a), (2)(b), and (3)(c) of this section.2394

       (5)(2) A member who is eligible for age and service 2395
retirement under division (A)(2) of section 145.32 of the Revised 2396
Code shall receive a retirement allowance consisting of all of the 2397
following:2398

       (a) An annuity having a reserve equal to the amount of the 2399
member's accumulated contributions at that time;2400

       (b) A pension equal to the annuity under division (A)(2)(a) 2401
of this section, excluding amounts of the member's accumulated 2402
contributions deposited under former division (Y) of section 2403
145.01 or former sections 145.02, 145.29, 145.292, and 145.42, or 2404
sections 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 2405
145.299, 145.2916, 145.301, 145.47, and 145.814 of the Revised 2406
Code for the purchase of service credit;2407

       (c) An additional pension, if the member can qualify for 2408
prior military service, equal to forty dollars multiplied by the 2409
number of years, and fraction thereof, of such prior military 2410
service credit.2411

       (B)(1) When a member retires on age and service retirement, 2412
the member's total annual single lifetime allowance, including the 2413
allowances provided in divisions (A)(1),and (2), (3), and (4) of 2414
this section, shall be not less than a base amount adjusted in 2415
accordance with division (A)(5)(B)(2) of this section and 2416
determined by multiplying the member's total service credit by the 2417
greater of the following:2418

       (a) Eighty-sixdollars;2419

       (b) TwoIf the member is eligible for age and service 2420
retirement under division (A)(1) of section 145.32 of the Revised 2421
Code, two and two-tenths per cent of the member's final average 2422
salary for each of the first thirty years of service plus two and 2423
one-half per cent of the member's final average salary for each 2424
subsequent year of service.;2425

       The(b) If the member is eligible for age and service 2426
retirement under division (A)(2) of section 145.32 of the Revised 2427
Code, two and two-tenths per cent of the member's final average 2428
salary for each of the first thirty-five years of service plus two 2429
and one-half per cent of the member's final average salary for 2430
each subsequent year of service.2431

       (2)(a) For a member for whom eligibility to retire under 2432
division (A)(1) of section 145.32 of the Revised Code occurs not 2433
later than five years after the effective date of this amendment, 2434
the allowance shall be adjusted by the factors of attained age or 2435
years of service to provide the greater amount as determined by 2436
the following schedule:2437

Years of Percentage 2438
Attained or Total Service of 2439
Birthday Credit Base Amount 2440

58 25 75 2441
59 26 80 2442
60 27 85 2443
61 88 2444
28 90 2445
62 91 2446
63 94 2447
29 95 2448
64 97 2449
65 30 or more 100 2450

       Members shall vest(b) For a member for whom eligibility to 2451
retire under division (A)(1) of section 145.32 of the Revised Code 2452
occurs after the date determined under division (B)(2)(a) of this 2453
section who has not either attained age sixty-five or earned 2454
thirty years of total service credit, the allowance determined 2455
under division (B)(1) of this section shall be adjusted to be the 2456
actuarial equivalent of the member's retirement allowance had the 2457
member retired at age sixty-five or with thirty years of total 2458
service credit.2459

       (3) For a member eligible to retire under division (A)(1) of 2460
section 145.32 of the Revised Code, the right to a benefit shall 2461
vest in accordance with the following schedule, based on the 2462
member's attained age by September 1, 1976:2463

Percentage 2464
Attained of 2465
Birthday Base Amount 2466
66 102 2467
67 104 2468
68 106 2469
69 108 2470
70 or more 110 2471

       (6)(4) For a member eligible to retire under division (A)(2) 2472
of section 145.32 of the Revised Code who has not either attained 2473
age sixty-seven or attained age fifty-five and earned thirty-two 2474
years of total service credit, the allowance determined under 2475
division (B)(1) of this section shall be adjusted to be the 2476
actuarial equivalent of the member's retirement allowance had the 2477
member retired at age sixty-seven or age fifty-five with 2478
thirty-two years of total service credit.2479

       (C) The total annual single lifetime allowance that a member 2480
shall receive under division (A)(5) of this section shall not 2481
exceed the lesser of one hundred per cent of the member's final 2482
average salary or the limit established by section 415 of the 2483
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 2484
as amended.2485

       (B)(1) For the purposes of divisions (B) to (G) of this 2486
section, "total service credit as a PERS law enforcement officer" 2487
and "total service credit as a PERS public safety officer" include 2488
credit for military service to the extent permitted by division 2489
(E)(2) of this section and credit for service as a police officer 2490
or state highway patrol trooper to the extent permitted by 2491
divisions (E)(3) and (4) of this section.2492

       (2) A member who meets the conditions in division (B)(2)(a), 2493
(b), or (c) of this section may apply for an age and service 2494
retirement benefit under this division:2495

       (a) The member has attained age forty-eight and has at least 2496
twenty-five years of total service credit as a PERS law 2497
enforcement officer;2498

       (b) The member has attained age fifty-two, and has at least 2499
twenty-five years of total service credit as a PERS public safety 2500
officer or has service as a PERS public safety officer and service 2501
as a PERS law enforcement officer that when combined equal at 2502
least twenty-five years of total service credit;2503

       (c) The member has attained age sixty-two and has at least 2504
fifteen years of total service credit as either of the following:2505

       (i) A PERS law enforcement officer;2506

       (ii) A PERS public safety officer.2507

       (3) A benefit paid under division (B)(2) of this section 2508
shall consist of an annual single lifetime allowance equal to the 2509
sum of two and one-half per cent of the member's final average 2510
salary multiplied by the first twenty-five years of the member's 2511
total service plus two and one-tenth per cent of the member's 2512
final average salary multiplied by the number of years of the 2513
member's total service credit in excess of twenty-five years.2514

       (4) A member with at least fifteen years of total service 2515
credit as a PERS law enforcement officer or PERS public safety 2516
officer who voluntarily resigns or is discharged for any reason 2517
except death, dishonesty, cowardice, intemperate habits, or 2518
conviction of a felony may apply for an age and service retirement 2519
benefit, which shall consist of an annual single lifetime 2520
allowance equal to one and one-half per cent of the member's final 2521
average salary multiplied by the number of years of the member's 2522
total service credit. The allowance shall commence on the first 2523
day of the calendar month following the month in which the 2524
application is filed with the public employees retirement board on 2525
or after the attainment by the applicant of age fifty-two.2526

       (C)(1) A member with at least twenty-five years of total 2527
service credit who would be eligible to retire under division 2528
(B)(2)(b) of this section had the member attained age fifty-two 2529
and who voluntarily resigns or is discharged for any reason except 2530
death, dishonesty, cowardice, intemperate habits, or conviction of 2531
a felony, on or after the date of attaining forty-eight years of 2532
age, but before the date of attaining fifty-two years of age, may 2533
elect to receive a reduced benefit as determined by the following 2534
schedule:2535

Attained Age Reduced Benefit 2536

48 75% of the benefit payable under 2537
division (B)(3) of this section 2538
49 80% of the benefit payable under 2539
division (B)(3) of this section 2540
50 86% of the benefit payable under 2541
division (B)(3) of this section 2542
51 93% of the benefit payable under 2543
division (B)(3) of this section 2544

       (2) If a member elects to receive a reduced benefit after 2545
attaining age forty-eight the reduced benefit is payable from the 2546
later of the date of the member's most recent birthday or the date 2547
the member becomes eligible to receive the reduced benefit.2548

       (3) Once a member elects to receive a reduced benefit 2549
determined by the schedule in division (C)(1) of this section and 2550
has received a payment, the member may not reelect to change that 2551
election.2552

       (4) If a member who has resigned or been discharged has left 2553
on deposit the member's accumulated contributions in the 2554
employees' savings fund and has not elected to receive a reduced 2555
benefit determined by the schedule in division (C)(1) of this 2556
section, upon attaining fifty-two years of age, the member shall 2557
be entitled to receive a benefit computed and paid under division 2558
(B)(3) of this section.2559

       (D) A benefit paid under division (B) or (C) of this section 2560
shall not exceed the lesser of ninety per cent of the member's 2561
final average salary or the limit established by section 415 of 2562
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 2563
415, as amended.2564

       (E)(1) A member with service credit as a PERS law enforcement 2565
officer or a PERS public safety officer and other service credit 2566
under this chapter may elect one of the following:2567

       (a) To have all the member's service credit under this 2568
chapter, including credit for service as a PERS law enforcement 2569
officer or PERS public safety officer, used in calculating a 2570
retirement allowance under division (A) of this section if the 2571
member qualifies for an allowance under that division;2572

       (b) If the member qualifies for an allowance under division 2573
(B)(2)(a) of this section, to have the member's service credit as 2574
a PERS law enforcement officer used in calculating a benefit under 2575
that division and the member's credit for all service other than 2576
PERS law enforcement service used in calculating a benefit 2577
consisting of a single life annuity having a reserve equal to the 2578
amount of the member's accumulated contributions for all service 2579
other than PERS law enforcement service and an equal amount of 2580
employer contributions.2581

       (c) If the member qualifies for an allowance under division 2582
(B)(2)(b) or (c), (B)(4), or (C) of this section, to have the 2583
member's service credit as a PERS law enforcement officer or PERS 2584
public safety officer used in calculating a benefit under the 2585
appropriate division and the member's credit for all service other 2586
than PERS law enforcement service or service as a PERS public 2587
safety officer under this chapter used in calculating a benefit 2588
consisting of a single life annuity having a reserve equal to the 2589
amount of the member's accumulated contributions for all service 2590
other than PERS law enforcement service or PERS public safety 2591
officer service and an equal amount of the employer's 2592
contributions.2593

       (2) Notwithstanding sections 145.01 and 145.30 of the Revised 2594
Code, no more than four years of military service credit granted 2595
under section 145.30 of the Revised Code and five years of 2596
military service credit purchased under section 145.301 or 145.302 2597
of the Revised Code shall be used in calculating service as a PERS 2598
law enforcement officer or PERS public safety officer or the total 2599
service credit of that person.2600

       (3) Only credit for the member's service as a PERS law 2601
enforcement officer, PERS public safety officer, or service credit 2602
obtained as a police officer or state highway patrol trooper shall 2603
be used in computing the benefit of a member who qualifies for a 2604
benefit under division (B) or (C) of this section for the 2605
following:2606

       (a) Any person who originally is commissioned and employed as 2607
a deputy sheriff by the sheriff of any county, or who originally 2608
is elected sheriff, on or after January 1, 1975;2609

       (b) Any deputy sheriff who originally is employed as a 2610
criminal bailiff or court constable on or after April 16, 1993;2611

       (c) Any person who originally is appointed as a township 2612
constable or police officer in a township police department or 2613
district on or after January 1, 1981;2614

       (d) Any person who originally is employed as a county 2615
narcotics agent on or after September 26, 1984;2616

       (e) Any person who originally is employed as an undercover 2617
drug agent as defined in section 109.79 of the Revised Code, 2618
department of public safety enforcement agent who prior to June 2619
30, 1999, was a liquor control investigator, park officer, forest 2620
officer, wildlife officer, state watercraft officer, park district 2621
police officer, conservancy district officer, veterans' home 2622
police officer, special police officer for a mental health 2623
institution, special police officer for an institution for the 2624
mentally retarded and developmentally disabled, or municipal 2625
police officer on or after December 15, 1988;2626

       (f) Any person who originally is employed as a state 2627
university law enforcement officer on or after November 6, 1996;2628

       (g) Any person who is originally employed as a state 2629
university law enforcement officer by the university of Akron on 2630
or after September 16, 1998;2631

       (h) Any person who originally is employed as a preserve 2632
officer on or after March 18, 1999;2633

       (i) Any person who originally is employed as a natural 2634
resources law enforcement staff officer on or after March 18, 2635
1999;2636

       (j) Any person who is originally employed as a department of 2637
public safety enforcement agent on or after June 30, 1999;2638

       (k) Any person who is originally employed as a house sergeant 2639
at arms or assistant house sergeant at arms on or after September 2640
5, 2001;2641

       (l) Any person who is originally appointed as a regional 2642
transit authority police officer or state highway patrol police 2643
officer on or after February 1, 2002;2644

       (m) Any person who is originally employed as a municipal 2645
public safety director on or after September 29, 2005, but not 2646
later than the effective date of this amendment.2647

       (4) Only credit for a member's service as a PERS public 2648
safety officer or service credit obtained as a PERS law 2649
enforcement officer, police officer, or state highway patrol 2650
trooper shall be used in computing the benefit of a member who 2651
qualifies for a benefit under division (B)(2)(b) or (c)(ii) or (4) 2652
or division (C) of this section for any person who originally is 2653
employed as a Hamilton county municipal court bailiff on or after 2654
November 6, 1996.2655

       (F)(D) Retirement allowances determined under this section 2656
shall be paid as provided in section 145.46 of the Revised Code.2657

       (G) For the purposes of this section, service prior to June 2658
30, 1999, as a food stamp trafficking agent under former section 2659
5502.14 of the Revised Code shall be considered service as a law 2660
enforcement officer.2661

       Sec. 145.331.  (A) A recipient of a disability allowance 2662
under section 145.361 of the Revised Code who is subject to 2663
division (C)(3) of that section may make application for age and 2664
service retirement under this section. Retirement shall be 2665
effective on the first day of the first month following the last 2666
day for which the disability allowance is paid.2667

       (B) The annual allowance payable under this section shall 2668
consist of the sum of the amounts determined under divisions 2669
(B)(1) and (2) of this section:2670

       (1) The greater of the following:2671

       (a) An allowance calculated as provided in section 145.33, 2672
145.332, or 145.34 of the Revised Code, excluding any period 2673
during which the applicant received a disability benefit under 2674
section 145.361 of the Revised Code;2675

       (b) An allowance calculated by multiplying the applicant's 2676
total service credit, including service credit for the last 2677
continuous period during which the applicant received a disability 2678
benefit under section 145.361 of the Revised Code, by two and 2679
two-tenths per cent of the applicant's final average salary, 2680
except that the allowance shall not exceed forty-five per cent of 2681
the applicant's final average salary.2682

       (2) An amount equal to the additional allowance the recipient 2683
would receive under section 145.323 of the Revised Code, plus any 2684
other additional amount the recipient would receive under this 2685
chapter, had the recipient retired under section 145.33, 145.332,2686
or 145.34 of the Revised Code effective on the effective date of 2687
the recipient's most recent continuous period of receipt of a 2688
disability benefit under section 145.361 of the Revised Code.2689

       (C) The allowance calculated under division (B) of this 2690
section, exclusive of any amount added under division (B)(2) of 2691
this section based on section 145.323 of the Revised Code, shall 2692
be the base for all future additional allowances under section 2693
145.323 of the Revised Code.2694

       The anniversary date for future additional allowances under 2695
section 145.323 of the Revised Code shall be the effective date of 2696
the recipient's most recent continuous period of receipt of a 2697
disability benefit under section 145.361 of the Revised Code.2698

       (D) The retirement allowance determined under this section 2699
shall be paid as provided in section 145.46 of the Revised Code.2700

       Sec. 145.332. (A) For the purposes of this section, "total 2701
service credit" includes credit for military service to the extent 2702
permitted by division (H) of this section and credit for service 2703
as a police officer or state highway patrol trooper to the extent 2704
permitted by division (I) of this section.2705

       (B)(1) A member of the public employees retirement system is 2706
eligible for age and service retirement under this division if, 2707
not later than ten years after the effective date of this section, 2708
the member meets one of the following requirements:2709

       (a) Has attained age forty-eight and has at least twenty-five 2710
years of total service credit as a PERS law enforcement officer;2711

       (b) Has attained age fifty-two and has at least twenty-five 2712
years of total service credit as a PERS public safety officer or 2713
has service as a PERS public safety officer and service as a PERS 2714
law enforcement officer that when combined equal at least 2715
twenty-five years of total service credit;2716

       (c) Has attained age sixty-two and has at least fifteen years 2717
of total service credit as a PERS law enforcement officer or PERS 2718
public safety officer.2719

       (2) A member with at least twenty-five years of total service 2720
credit who would be eligible to retire under division (B)(1)(b) of 2721
this section had the member attained age fifty-two and who 2722
voluntarily resigns or is discharged for any reason except death, 2723
dishonesty, cowardice, intemperate habits, or conviction of a 2724
felony, on or after attaining age forty-eight, but before 2725
attaining age fifty-two, may elect to receive a reduced benefit.2726

       (a)(i) If eligibility to make the election under division 2727
(B)(2) of this section occurs not later than five years after the 2728
effective date of this section, the benefit shall be calculated in 2729
accordance with the following schedule:2730

Attained Age Reduced Benefit 2731
48 75% of the benefit payable under division (D) of this section 2732
49 80% of the benefit payable under division (D) of this section 2733
50 86% of the benefit payable under division (D) of this section 2734
51 93% of the benefit payable under division (D) of this section 2735

       (ii) If eligibility to make the election occurs after the 2736
date determined under division (B)(2)(a)(i) of this section, the 2737
benefit shall be the actuarial equivalent of the allowance 2738
calculated under division (D) of this section adjusted for age.2739

       (b) If a member elects to receive a reduced benefit under 2740
division (B)(2) of this section, the reduced benefit is payable 2741
from the later of the date of the member's most recent birthday or 2742
the date the member becomes eligible to receive the reduced 2743
benefit. Once a member elects to receive a reduced benefit and has 2744
received a payment, the member may not change that election.2745

       (c) If a member who is eligible to do so has not elected to 2746
receive a reduced benefit determined by the schedule in division 2747
(B)(2) of this section, upon attaining age fifty-two the member 2748
shall be entitled to receive a benefit computed and paid under 2749
division (D) of this section.2750

       (C)(1) A member who is not eligible for age and service 2751
retirement under division (B) of this section is eligible under 2752
this division if the member meets one of the following 2753
requirements:2754

       (a) Has attained age fifty and has at least twenty-five years 2755
of total service credit as a PERS law enforcement officer;2756

       (b) Has attained age fifty-four and has at least twenty-five 2757
years of total service credit as a PERS public safety officer or 2758
has service as a PERS public safety officer and service as a PERS 2759
law enforcement officer that when combined equal at least 2760
twenty-five years of total service credit;2761

       (c) Has attained age sixty-four and has at least fifteen 2762
years of total service credit as a PERS law enforcement officer or 2763
PERS public safety officer.2764

       (2)(a)(i) A member with at least twenty-five years of total 2765
service credit who would be eligible to retire under division 2766
(C)(1)(a) of this section had the member attained age fifty and 2767
who voluntarily resigns or is discharged for any reason except 2768
death, dishonesty, cowardice, intemperate habits, or conviction of 2769
a felony, on or after attaining age forty-eight, but before 2770
attaining age fifty, may elect to receive a reduced benefit. The 2771
benefit shall be the actuarial equivalent of the allowance 2772
calculated under division (D) of this section adjusted for age.2773

       (ii) A member with at least twenty-five years of total 2774
service credit who would be eligible to retire under division 2775
(C)(1)(b) of this section had the member attained age fifty-four 2776
and who voluntarily resigns or is discharged for any reason except 2777
death, dishonesty, cowardice, intemperate habits, or conviction of 2778
a felony, on or after attaining age fifty, but before attaining 2779
age fifty-four, may elect to receive a reduced benefit. The 2780
benefit shall be the actuarial equivalent of the allowance 2781
calculated under division (D) of this section adjusted for age.2782

       (b) If a member elects to receive a reduced benefit under 2783
division (C)(2) of this section, the reduced benefit is payable 2784
from the later of the date of the member's most recent birthday or 2785
the date the member becomes eligible to receive the reduced 2786
benefit. Once a member elects to receive a reduced benefit and has 2787
received a payment, the member may not change that election.2788

       (c) If a member who is eligible to do so has not elected to 2789
receive a reduced benefit under division (C)(2) of this section, 2790
upon attaining the age of eligibility under division (C)(1) of 2791
this section the member shall be entitled to receive a benefit 2792
computed and paid under division (D) of this section.2793

       (D) A benefit paid under division (B)(1) or (C)(1) of this 2794
section shall consist of an annual single lifetime allowance equal 2795
to the sum of two and one-half per cent of the member's final 2796
average salary multiplied by the first twenty-five years of the 2797
member's total service credit plus two and one-tenth per cent of 2798
the member's final average salary multiplied by the number of 2799
years of the member's total service credit in excess of 2800
twenty-five years.2801

       (E) A member with at least fifteen years of total service 2802
credit as a PERS law enforcement officer or PERS public safety 2803
officer who voluntarily resigns or is discharged for any reason 2804
except death, dishonesty, cowardice, intemperate habits, or 2805
conviction of a felony may apply for an age and service retirement 2806
benefit, which shall consist of an annual single lifetime 2807
allowance equal to one and one-half per cent of the member's final 2808
average salary multiplied by the number of years of the member's 2809
total service credit.2810

       (1) If the member will attain age fifty-two not later than 2811
ten years after the effective date of this section, the retirement 2812
allowance shall commence on the first day of the calendar month 2813
following the month in which application is filed with the board 2814
on or after the member's attainment of age fifty-two.2815

       (2) If the member will not attain age fifty-two on or before 2816
the date determined under division (E)(1) of this section, the 2817
retirement allowance shall commence on the first day of the 2818
calendar month following the month in which application is filed 2819
with the board on or after the member's attainment of age 2820
fifty-four.2821

       (F) A benefit paid under this section shall not exceed the 2822
lesser of ninety per cent of the member's final average salary or 2823
the limit established by section 415 of the "Internal Revenue Code 2824
of 1986," 100 Stat. 2085, 26 U.S.C. 415, as amended.2825

       (G) A member with service credit as a PERS law enforcement 2826
officer or PERS public safety officer and other service credit 2827
under this chapter may elect one of the following:2828

       (1) To have all the member's service credit under this 2829
chapter, including credit for service as a PERS law enforcement 2830
officer or PERS public safety officer, used in calculating a 2831
retirement allowance under section 145.33 of the Revised Code if 2832
the member qualifies for an allowance under that section;2833

       (2) If the member qualifies for an allowance under division 2834
(B)(1)(a), (C)(1)(a), or (C)(2)(a)(i) of this section, to receive 2835
all of the following:2836

       (a) A benefit under division (B)(1)(a), (C)(1)(a), or 2837
(C)(2)(a)(i) of this section for the member's service credit as a 2838
PERS law enforcement officer;2839

       (b) A single life annuity having a reserve equal to the 2840
amount of the member's accumulated contributions for all service 2841
other than PERS law enforcement service;2842

       (c) A pension equal to the annuity provided under division 2843
(G)(2)(b) of this section, excluding amounts of the member's 2844
accumulated contributions deposited under former division (Y) of 2845
section 145.01 or former sections 145.02, 145.29, 145.292, and 2846
145.42, or sections 145.20, 145.201, 145.28, 145.291, 145.292, 2847
145.293, 145.299, 145.2916, 145.301, 145.47, and 145.814 of the 2848
Revised Code for the purchase of service credit;2849

       (3) If the member qualifies for an allowance under division 2850
(B)(1)(b) or (c), (B)(2), (C)(1)(b) or (c), or (C)(2)(a)(ii) of 2851
this section, to receive all of the following:2852

       (a) A benefit under division (B)(1)(b) or (c), (B)(2), 2853
(C)(1)(b) or (c), or (C)(2)(a)(ii) of this section for the 2854
member's service credit as a PERS law enforcement officer or PERS 2855
public safety officer;2856

       (b) A single life annuity having a reserve equal to the 2857
amount of the member's accumulated contributions for all service 2858
other than PERS law enforcement service or PERS public safety 2859
officer service;2860

       (c) A pension equal to the annuity provided under division 2861
(G)(3)(b) of this section, excluding amounts of the member's 2862
accumulated contributions deposited under former division (Y) of 2863
section 145.01 or former sections 145.02, 145.29, 145.292, and 2864
145.42, or sections 145.20, 145.201, 145.28, 145.291, 145.292, 2865
145.293, 145.299, 145.2916, 145.301, 145.47, and 145.814 of the 2866
Revised Code for the purchase of service credit.2867

       (H) Notwithstanding sections 145.01 and 145.30 of the Revised 2868
Code, not more than four years of military service credit granted 2869
under section 145.30 of the Revised Code and five years of 2870
military service credit purchased under section 145.301 or 145.302 2871
of the Revised Code shall be used in calculating service as a PERS 2872
law enforcement officer or PERS public safety officer or the total 2873
service credit of that person.2874

       (I)(1) Only credit for the member's service as a PERS law 2875
enforcement officer, PERS public safety officer, or service credit 2876
obtained as a police officer or state highway patrol trooper shall 2877
be used in computing the benefit of a member who qualifies for a 2878
benefit under this section for the following:2879

       (a) Any person who originally is commissioned and employed as 2880
a deputy sheriff by the sheriff of any county, or who originally 2881
is elected sheriff, on or after January 1, 1975;2882

       (b) Any deputy sheriff who originally is employed as a 2883
criminal bailiff or court constable on or after April 16, 1993;2884

       (c) Any person who originally is appointed as a township 2885
constable or police officer in a township police department or 2886
district on or after January 1, 1981;2887

       (d) Any person who originally is employed as a county 2888
narcotics agent on or after September 26, 1984;2889

       (e) Any person who originally is employed as an undercover 2890
drug agent as defined in section 109.79 of the Revised Code, 2891
department of public safety enforcement agent who prior to June 2892
30, 1999, was a liquor control investigator, park officer, forest 2893
officer, wildlife officer, state watercraft officer, park district 2894
police officer, conservancy district officer, veterans' home 2895
police officer, special police officer for a mental health 2896
institution, special police officer for an institution for the 2897
developmentally disabled, or municipal police officer on or after 2898
December 15, 1988;2899

       (f) Any person who originally is employed as a state 2900
university law enforcement officer on or after November 6, 1996;2901

       (g) Any person who is originally employed as a state 2902
university law enforcement officer by the university of Akron on 2903
or after September 16, 1998;2904

       (h) Any person who originally is employed as a preserve 2905
officer on or after March 18, 1999;2906

       (i) Any person who originally is employed as a natural 2907
resources law enforcement staff officer on or after March 18, 2908
1999;2909

       (j) Any person who is originally employed as a department of 2910
public safety enforcement agent on or after June 30, 1999;2911

       (k) Any person who is originally employed as a house sergeant 2912
at arms or assistant house sergeant at arms on or after September 2913
5, 2001;2914

       (l) Any person who is originally appointed as a regional 2915
transit authority police officer or state highway patrol police 2916
officer on or after February 1, 2002;2917

       (m) Any person who is originally employed as a municipal 2918
public safety director on or after September 29, 2005, but not 2919
later than March 24, 2009.2920

       (2) Only credit for a member's service as a PERS public 2921
safety officer or service credit obtained as a PERS law 2922
enforcement officer, police officer, or state highway patrol 2923
trooper shall be used in computing the benefit of a member who 2924
qualifies for a benefit under division (B)(1)(b) or (c), (B)(2), 2925
(C)(1)(b) or (c), or (C)(2) of this section for any person who 2926
originally is employed as a Hamilton county municipal court 2927
bailiff on or after November 6, 1996.2928

       (J) For purposes of this section, service prior to June 30, 2929
1999 as a food stamp trafficking agent under former section 2930
5502.14 of the Revised Code shall be considered service as a law 2931
enforcement officer.2932

       (K) Retirement allowances determined under this section shall 2933
be paid as provided in section 145.46 of the Revised Code.2934

       Sec. 145.34. Any(A)(1) A member who, not later than ten 2935
years after the effective date of this amendment, has completed2936
earned twenty-five or more years of total service credit and has 2937
attained the member's fifty-fifth birthday,age fifty-five may 2938
retire on a commuted age and service allowance. Upon retirement on 2939
a commuted age and service allowance on or after September 30, 2940
1963, a member shall be granted a retirement allowance consisting 2941
of:2942

       (A)(a) An annuity having a reserve equal to the amount of the 2943
member's accumulated contributions at that time;2944

       (B)(b) A pension equal to the annuity provided by division 2945
(A)(1)(a) of this section, excluding amounts of the member's 2946
accumulated contributions deposited under former division (Y) of 2947
section 145.01 or former sections 145.02, 145.29, 145.292, and 2948
145.42, or sections 145.20, 145.201, 145.28, 145.291, 145.292, 2949
145.293, 145.299, 145.2916, 145.301, 145.47, and 145.814 of the 2950
Revised Code for the purchase of service credit;2951

       (C)(c) An additional pension, if such member can qualify for 2952
prior military service credit, the reserve for which, based upon 2953
regular interest and the service tables approved by the board, 2954
shall be the present worth of the reserve required for the payment 2955
of the prior military service pension provided by section 145.33 2956
of the Revised Code, after either sixty years of age or thirty 2957
years of service credit, whichever can be attained first. The 2958
annual prior military service pension shall be determined by the 2959
amount of such commuted reserve divided by the age and service 2960
annuity rate for the attained age at retirement.2961

       (D)(d) The commuted value calculated as provided in division2962
(C)(A)(1)(c) of this section of a basic annual pension of one 2963
hundred eighty dollars, provided the member has ten or more years 2964
of total service credit as of October 1, 1956. 2965

       (E)(2) A member who is not eligible to retire under division 2966
(A)(1) of this section may retire under this division if the 2967
member has earned twenty-five years or more of total service 2968
credit and has attained age fifty-seven. A retirement allowance 2969
under this division shall consist of both of the following:2970

       (a) An annuity having a reserve equal to the amount of the 2971
member's accumulated contributions at that time;2972

       (b) A pension equal to the annuity under division (A)(2)(a) 2973
of this section, excluding amounts of the member's accumulated 2974
contributions deposited under former division (Y) of section 2975
145.01 or former sections 145.02, 145.29, 145.292, and 145.42, or 2976
sections 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 2977
145.299, 145.2916, 145.301, 145.47, and 145.814 of the Revised 2978
Code for the purchase of service credit.2979

       (B) When a member retires on commuted age and service 2980
retirement, the member's single lifetime allowance shall not be 2981
less than that provided by divisionsdivision (A), (B), (C), and 2982
(D)(1) or (2) of this section and division (A)(5) of section 2983
145.33 of the Revised Code and shall not exceed the limits 2984
established by division (A)(6) of that section.2985

       A year of service for the purpose of commuted age and service 2986
retirement and of applying the minimum retirement allowance as 2987
provided in this section is defined as a complete year of 2988
full-time employment, or the equivalent thereof. The board is the 2989
final authority in determining the eligibility of an employee for 2990
such form of retirement and for such minimum allowance.2991

       In determining eligibility only for retirement under this 2992
section the board shall include in "total service" the years of 2993
prior service credit granted members of the public employees 2994
retirement system by a publicly owned utility as provided for in 2995
section 145.48 of the Revised Code under a pension plan adopted by 2996
the publicly owned utility.2997

       (F)(C) Retirement allowances determined under this section 2998
shall be paid as provided in section 145.46 of the Revised Code.2999

       Sec. 145.35.  (A) As used in this section, "on-duty illness 3000
or injury" means an illness or injury that occurred during or 3001
resulted from performance of duties under the direct supervision 3002
of a member's appointing authoritypublic employer.3003

       (B) The public employees retirement system shall provide 3004
disability coverage to each member who has at least five years of 3005
total service credit and disability coverage for on-duty illness 3006
or injury to each member who is a PERS law enforcement officer or 3007
PERS public safety officer, regardless of length of service.3008

       The coverage shall extend only to illness or injury that 3009
occurs before the member's contributing service terminates or, in 3010
the case of illness or injury that results from contributing 3011
service, becomes evident not later than two years after the date 3012
the contributing service ends. The coverage shall not extend to 3013
disability resulting from elective cosmetic surgery other than 3014
reconstructive surgery.3015

       Not later than October 16, 1992, the public employees 3016
retirement board shall give each person who is a member on July 3017
29, 1992, the opportunity to elect disability coverage either 3018
under section 145.36 of the Revised Code or under section 145.361 3019
of the Revised Code. The board shall mail notice of the election, 3020
accompanied by an explanation of the coverage under each of the 3021
Revised Code sections and a form on which the election is to be 3022
made, to each member at the member's last known address. The board 3023
shall also provide the explanation and form to any member on 3024
request.3025

       Regardless of whether the member actually receives notice of 3026
the right to make an election, a member who fails to file a valid 3027
election under this section shall be considered to have elected 3028
disability coverage under section 145.36 of the Revised Code. To 3029
be valid, an election must be made on the form provided by the 3030
retirement board, signed by the member, and filed with the board 3031
not later than one hundred eighty days after the date the notice 3032
was mailed, or, in the case of a form provided at the request of a 3033
member, a date specified by rule of the retirement board. Once 3034
made, an election is irrevocable, but if the member ceases to be a 3035
member of the retirement system, the election is void. If a person 3036
who makes an election under this section also makes an election 3037
under section 3307.62 or 3309.39 of the Revised Code, the election 3038
made for the system that pays a disability benefit to that person 3039
shall govern the benefit.3040

       Disability coverage shall be provided under section 145.361 3041
of the Revised Code for persons who become members after July 29, 3042
1992, and for members who elect under this division to be covered 3043
under section 145.361 of the Revised Code.3044

       The retirement board may adopt rules governing elections made 3045
under this division.3046

       (C) Application for a disability benefit may be made by a 3047
member, by a person acting in the member's behalf, or by the 3048
member's employer, provided the member has disability coverage 3049
under section 145.36 or 145.361 of the Revised Code and is not 3050
receiving a disability benefit under any other Ohio state or 3051
municipal retirement program. Application must be made within two 3052
years from the date the member's contributing service under the 3053
PERS defined benefit plan terminated or the date the member ceased 3054
to make contributions to the PERS defined benefit plan under 3055
section 145.814 of the Revised Code, unless the retirement board 3056
determines that the member's medical records demonstrate 3057
conclusively that at the time the two-year period expired, the 3058
member was physically or mentally incapacitated for duty and 3059
unable to make an application. Application may not be made by or 3060
for any person receiving age and service retirement benefits under 3061
section 145.33, 145.331, 145.332, 145.34, or 145.37 of the Revised 3062
Code or any person who, pursuant to section 145.40 of the Revised 3063
Code, has been paid the accumulated contributions standing to the 3064
credit of the person's individual account in the employees' 3065
savings fund. The application shall be made on a form provided by 3066
the retirement board.3067

       (D) The benefit payable to any member who is approved for a 3068
disability benefit shall become effective on the first day of the 3069
month immediately following the later of the following:3070

       (1) The last day for which compensation was paid;3071

       (2) The attainment of eligibility for a disability benefit.3072

       (E) Medical examination of a member who has applied for a 3073
disability benefit shall be conducted by a competent disinterested 3074
physician or physicians selected by the board to determine whether 3075
the member is mentally or physically incapacitated for the 3076
performance of duty by a disabling condition either permanent or 3077
presumed to be permanent. The disability must have occurred since 3078
last becoming a member or have increased since last becoming a 3079
member to such extent as to make the disability permanent or 3080
presumed to be permanent. A disability is presumed to be permanent 3081
if it is expected to last for a continuous period of not less than 3082
twelve months following the filing of the application.3083

       The standard used to determine whether a member is 3084
incapacitated for duty is that the member is mentally or 3085
physically incapable of performing the duties of the position the 3086
member held at the time the disabling condition began or of a 3087
position with similar duties.3088

       If the physician or physicians determine that the member 3089
qualifies for a disability benefit, the board concurs with the 3090
determination, and the member agrees to medical treatment as 3091
specified in division (F) of this section, the member shall 3092
receive a disability benefit under section 145.36 or 145.361 of 3093
the Revised Code. The action of the board shall be final.3094

       (F) The public employees retirement board shall adopt rules 3095
requiring a disability benefit recipient, as a condition of 3096
continuing to receive a disability benefit, to agree in writing to 3097
obtain any medical treatment recommended by the board's physician 3098
and submit medical reports regarding the treatment. If the board 3099
determines that a disability benefit recipient is not obtaining 3100
the medical treatment or the board does not receive a required 3101
medical report, the disability benefit shall be suspended until 3102
the treatment is obtained, the report is received by the board, or 3103
the board's physician certifies that the treatment is no longer 3104
helpful or advisable. Should the recipient's failure to obtain 3105
treatment or submit a medical report continue for one year, the 3106
recipient's right to the disability benefit shall be terminated as 3107
of the effective date of the original suspension.3108

       The board shall require the recipient of a disability benefit 3109
who is described in section 145.363 of the Revised Code to comply 3110
with that section.3111

       (G) A disability benefit that has been granted a member but 3112
has not commenced shall not be paid if the member continues in or 3113
returns to employment with the same employer in the same position 3114
or in a position with duties similar to those of the position the 3115
member held at the time the benefit was granted.3116

       (H) In the event an employer files an application for a 3117
disability benefit as a result of a member having been separated 3118
from service because the member is considered to be mentally or 3119
physically incapacitated for the performance of the member's 3120
present duty, and the physician or physicians selected by the 3121
board reports to the board that the member is physically and 3122
mentally capable of performing service similar to that from which 3123
the member was separated and the board concurs in the report, the 3124
board shall so certify to the employer and the employer shall 3125
restore the member to the member's previous position and salary or 3126
to a similar position and salary.3127

       Sec. 145.36.  A member who has elected disability coverage 3128
under this section, has not attained age sixty, and is determined 3129
by the public employees retirement board under section 145.35 of 3130
the Revised Code to qualify for a disability benefit shall be 3131
retired on disability under this section.3132

       Upon disability retirement, a member shall receive an annual 3133
amount that shall consist of:3134

       (A) An annuity having a reserve equal to the amount of the 3135
retirant's accumulated contributions;3136

       (B) A pension that shall be the difference between the 3137
following:3138

       (1) The member's annuity and anunder division (A) of this 3139
section, excluding the portion of the pension attributable to 3140
contributions deposited under former division (Y) of section 3141
145.01 or former sections 145.02, 145.29, 145.292, and 145.42, or 3142
sections 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 3143
145.299, 145.2916, 145.301, 145.47, and 145.814 of the Revised 3144
Code for the purchase of service credit;3145

       (2) An annual amount determined by multiplying the total 3146
service credit of the retirant, and in addition thereto the 3147
projected number of years and fractions thereof between the 3148
effective date of the member's disability retirement and attained 3149
age sixty, assuming continuous service, by eighty-six dollars or 3150
two and two-tenths per cent of the member's final average salary, 3151
whichever is greater.3152

       Where the recipient is not receiving a disability benefit 3153
under section 145.37 of the Revised Code and is receiving a 3154
disability benefit from either the state teachers retirement 3155
system or the school employees retirement system, the recipient 3156
shall not be eligible for service credit based upon the number of 3157
years and fractions thereof between the date of disability and 3158
attained age sixty as provided for in this division.3159

       In no case shall disability retirement be less than thirty 3160
per cent or more than seventy-five per cent of the member's final 3161
average salary, except that it shall not exceed any limit to which 3162
the retirement system is subject under section 415 of the 3163
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 3164
as amended.3165

       A year of service for the purpose of disability retirement is 3166
a complete year of full-time employment, or the equivalent 3167
thereof. The public employees retirement board is the final 3168
authority in determining the eligibility of a member for 3169
disability retirement.3170

       Sec. 145.361.  (A) A member with disability coverage under 3171
this section who is determined by the public employees retirement 3172
board under section 145.35 of the Revised Code to qualify for a 3173
disability benefit shall receive a disability allowance under this 3174
section. The allowance shall be an annual amount equal to the 3175
greater of the following:3176

       (1) Forty-five per cent of the member's final average salary;3177

       (2) The member's total service credit multiplied by two and 3178
two-tenths per cent of the member's final average salary, not 3179
exceeding sixty per cent of the member's final average salary.3180

       (B) Sufficient reserves for payment of the disability 3181
allowance shall be transferred to the annuity and pension reserve 3182
fund from the employers' contribution fund. The accumulated 3183
contributions of the member shall remain in the employees' savings 3184
fund. No part of the allowance paid under this section shall be 3185
charged against the member's accumulated contributions.3186

       (C) A disability allowance paid under this section shall 3187
terminate at the earliest of the following:3188

       (1) The effective date of age and service retirement under 3189
sections 145.32 and, 145.33, and 145.332, or section 145.34 or 3190
145.37 of the Revised Code;3191

       (2) The date the allowance is terminated under section 3192
145.362 of the Revised Code;3193

       (3) The later of the last day of the month in which the 3194
recipient attains age sixty-five, or the last day of the month in 3195
which the benefit period ends as follows:3196

Attained Age at 3197
Effective Date of 3198
Disability Allowance Benefit Period 3199
60 or 61 60 months 3200
62 or 63 48 months 3201
64 or 65 36 months 3202
66, 67, or 68 24 months 3203
69 or older 12 months 3204

       Sec. 145.362.  A disability benefit recipient whose benefit 3205
effective date was before the effective date of this amendment3206
shall retain membership status and shall be considered on leave of 3207
absence from employment during the first five years following the 3208
effective date of a disability benefit, notwithstanding any 3209
contrary provisions in this chapter.3210

       A disability benefit recipient whose benefit effective date 3211
is on or after the effective date of this amendment shall retain 3212
membership status and shall be considered on leave of absence from 3213
employment during the first three years following the effective 3214
date of a disability benefit, except that, if the member is 3215
receiving rehabilitative services acceptable to a physician or 3216
physicians selected by the board, the board may permit the 3217
recipient to retain membership status and be considered on leave 3218
of absence from employment for up to five years following the 3219
effective date of a disability benefit.3220

       The public employees retirement board shall require any 3221
disability benefit recipient to undergo an annual medical 3222
examination, except that the board may waive the medical 3223
examination if the board's physician or physicians certify that 3224
the recipient's disability is ongoing. If any disability benefit 3225
recipient refuses to submit to a medical examination, the 3226
recipient's disability benefit shall be suspended until withdrawal 3227
of the refusal. Should the refusal continue for one year, all the 3228
recipient's rights in and to the disability benefit shall be 3229
terminated as of the effective date of the original suspension. 3230

       On completion of the examination by an examining physician or 3231
physicians selected by the board, the physician or physicians 3232
shall report and certify to the board whether the disability 3233
benefit recipient meets the applicable standard for termination of 3234
a disability benefit. If the recipient's benefit effective date is 3235
before the effective date of this amendment or, if after that 3236
date, the recipient has been receiving the benefit for less than 3237
three years or is receiving rehabilitative services acceptable to 3238
the physician or physicians and considered on leave of absence, 3239
the standard for termination is that the recipient is no longer 3240
physically and mentally incapable of resuming the service from 3241
which the recipient was found disabled. If the recipient's benefit 3242
effective date is on or after the effective date of this 3243
amendment, the recipient has been receiving the benefit for three 3244
years or longer, and the recipient is not receiving rehabilitative 3245
services acceptable to the physician or physicians, the standard 3246
for termination is that the recipient is not physically or 3247
mentally incapable of performing the duties of any position that 3248
meets all of the following criteria:3249

       (A) Replaces not less than seventy-five per cent of the 3250
member's final average salary, adjusted each year by the actual 3251
average increase in the consumer price index prepared by the 3252
United States bureau of labor statistics (U.S. city average for 3253
urban wage earners and clerical workers: "all items 3254
1982-1984=100");3255

       (B) Is reasonably to be found in the member's regional job 3256
market;3257

       (C) Is one that the member is qualified for by experience or 3258
education.3259

       If the board concurs in the report that the disability 3260
benefit recipient is no longer incapablemeets the applicable 3261
standard for termination of a disability benefit, the payment of 3262
the disability benefit shall be terminated not later than three 3263
months after the date of the board's concurrence or upon 3264
employment as a public employee. If the leave of absence has not 3265
expired, the retirement board shall certify to the disability 3266
benefit recipient's last employer before being found disabled that 3267
the recipient is no longer physically and mentally incapable of 3268
resuming service that is the same or similar to that from which 3269
the recipient was found disabled. The employer shall restore the 3270
recipient to the recipient's previous position and salary or to a 3271
position and salary similar thereto, unless the recipient was 3272
dismissed or resigned in lieu of dismissal for dishonesty, 3273
misfeasance, malfeasance, or conviction of a felony.3274

       Each disability benefit recipient shall file with the board 3275
an annual statement of earnings, current medical information on 3276
the recipient's condition, and any other information required in 3277
rules adopted by the board. The board may waive the requirement 3278
that a disability benefit recipient file an annual statement of 3279
earnings or current medical information if the board's physician 3280
certifies that the recipient's disability is ongoing.3281

       The board shall annually examine the information submitted by 3282
the recipient. If a disability benefit recipient refuses to file 3283
the statement or information, the disability benefit shall be 3284
suspended until the statement and information are filed. If the 3285
refusal continues for one year, the recipient's right to the 3286
disability benefit shall be terminated as of the effective date of 3287
the original suspension.3288

       If a disability benefit recipient is restored to service by, 3289
or elected to an elective office with, an employer covered by this 3290
chapter, the recipient's disability benefit shall cease.3291

       The board may terminate a disability benefit at the request 3292
of the recipient.3293

       If disability retirement under section 145.36 of the Revised 3294
Code is terminated for any reason, the annuity and pension 3295
reserves at that time in the annuity and pension reserve fund 3296
shall be transferred to the employees' savings fund and the 3297
employers' accumulation fund, respectively. If the total 3298
disability benefit paid is less than the amount of the accumulated 3299
contributions of the member transferred to the annuity and pension 3300
reserve fund at the time of the member's disability retirement, 3301
the difference shall be transferred from the annuity and pension 3302
reserve fund to another fund as may be required. In determining 3303
the amount of a member's account following the termination of 3304
disability retirement for any reason, the total amount paid shall 3305
be charged against the member's refundable account.3306

       If a disability allowance paid under section 145.361 of the 3307
Revised Code is terminated for any reason, the reserve on the 3308
allowance at that time in the annuity and pension reserve fund 3309
shall be transferred from that fund to the employers' accumulation 3310
fund.3311

       If a former disability benefit recipient again becomes a 3312
contributor, other than as an other system retirant under section 3313
145.38 of the Revised Code, to this system, the state teachers 3314
retirement system, or the school employees retirement system, and 3315
completes an additional two years of service credit, the former 3316
disability benefit recipient shall be entitled to full service 3317
credit for the period as a disability benefit recipient, except 3318
that the service credit shall not exceed five years' credit.3319

       If any employer employs any member who is receiving a 3320
disability benefit, the employer shall file notice of employment 3321
with the retirement board, designating the date of employment. In 3322
case the notice is not filed, the total amount of the benefit paid 3323
during the period of employment prior to notice shall be charged 3324
to and paid by the employer.3325

       Sec. 145.363. (A) A recipient of a disability benefit granted 3326
under this chapter on or after the effective date of this section 3327
shall apply for social security disability insurance benefit 3328
payments under 42 U.S.C. 423 if the recipient meets the 3329
requirements of divisions (a)(1)(A),(B), and (C) of that section. 3330
The application shall be made not later than ninety days after the 3331
recipient is granted a disability benefit under this chapter 3332
unless the public employees retirement board determines from the 3333
member's medical records that the member is physically or mentally 3334
unable to make the application. The recipient shall file a copy of 3335
the completed application with the public employees retirement 3336
system and the system shall accept the copy as evidence of the 3337
member's application. If a recipient fails without just cause to 3338
apply for social security disability insurance benefit payments or 3339
to file a copy of the application with the system, the disability 3340
benefit under this chapter shall be suspended until application is 3341
made and a copy of the application filed with the system.3342

       (B) Regardless of whether the recipient's disability is 3343
ongoing, a recipient of a disability benefit under this chapter 3344
who also receives social security disability insurance benefit 3345
payments shall file an annual statement of earnings under section 3346
145.362 of the Revised Code and include a copy of the social 3347
security disability insurance benefit annual reward letter that 3348
specifies the amount of the social security disability insurance 3349
program benefit.3350

       (C) Except as provided in division (D) of this section, if 3351
any year the total of a disability benefit recipient's benefit 3352
under this chapter and social security disability insurance 3353
benefit payments exceeds the recipient's adjusted final average 3354
salary, the annual benefit under this chapter shall be reduced so 3355
that the annual total equals the recipient's adjusted final 3356
average salary.3357

       The recipient's adjusted final average salary shall be 3358
determined by annually increasing the recipient's final average 3359
salary by the percentage increase in the consumer price index, not 3360
exceeding three per cent, as determined by the United States 3361
bureau of labor statistics (U.S. city average for urban wage 3362
earners and clerical workers: "all items 1982-84=100") for the 3363
twelve-month period ending on the thirtieth day of June of the 3364
immediately preceding calendar year. If the consumer price index 3365
for that period did not increase, no increase shall be made to the 3366
recipient's adjusted final average salary for that period. No 3367
adjustment to a benefit shall exceed the limit established by 3368
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 3369
2085, 26 U.S.C. 415, as amended.3370

        If a disability benefit recipient receives retroactive 3371
payments of social security disability insurance benefits, the 3372
system may reduce future disability benefit payments under this 3373
chapter to recoup any overpayments.3374

       (D) The reductions required by division (C) of this section 3375
do not apply to a recipient of a disability benefit under this 3376
chapter who has not less than five years of service credit for 3377
periods during which the recipient had earnings from other 3378
employment that was subject to the tax imposed by the "Federal 3379
Insurance Contributions Act," 26 U.S.C. 3101.3380

       Sec. 145.37.  (A) As used in this section:3381

       (1) "State retirement system" means the public employees 3382
retirement system, school employees retirement system, or state 3383
teachers retirement system.3384

       (2) "Total service credit" means all service credit earned in 3385
the state retirement systems, except credit for service subject to 3386
section 145.38 of the Revised Code. Total service credit shall not 3387
exceed one year of credit for any twelve-month period.3388

       (3) In addition to the meaning given in division (N) of 3389
section 145.01 of the Revised Code, "disability benefit" means 3390
"disability benefit" as defined in sections 3307.01 and 3309.01 of 3391
the Revised Code.3392

       (B) To coordinate and integrate membership in the state 3393
retirement systems, the following provisions apply:3394

       (1) At the option of a member, total contributions and 3395
service credit in all state retirement systems, including amounts 3396
paid to restore service credit under sections 145.311, 3307.711, 3397
and 3309.261 of the Revised Code, shall be used in determining the 3398
eligibility and total retirement or disability benefit payable. 3399
When total contributions and service credit are so combined, the 3400
following provisions apply:3401

       (a) Age and service retirement or disability benefits are 3402
effective on the first day of the month immediately following the 3403
later of:3404

       (i) The last day for which compensation was paid;3405

       (ii) The attainment of minimum age or service credit 3406
eligibility for benefits provided under this section.3407

       (b) In determining eligibility for a disability benefit, the 3408
medical examiner's report to the retirement board of any state 3409
retirement system, showing that the member's disability 3410
incapacitates the member for the performance of duty, may be 3411
accepted by the state retirement boards as sufficient for granting 3412
a disability benefit.3413

       (c) The state retirement system in which the member had the 3414
greatest service credit, without adjustment, shall determine and 3415
pay the total retirement or disability benefit. Where the member's 3416
credit is equal in two or more state retirement systems, the 3417
system having the largest total contributions of the member shall 3418
determine and pay the total benefit.3419

       (d) In determining the total credit to be used in calculating 3420
a retirement or disability benefit, credit shall not be reduced 3421
below that certified by the system or systems transferring credit, 3422
except that such total combined service credit shall not exceed 3423
one year of credit for any one "year" as defined in the law of the 3424
system making the calculation.3425

       (e) The state retirement system determining and paying a 3426
retirement or disability benefit shall receive from the other 3427
system or systems the sum of the following:3428

       (i) The member's refundable account at retirement or the 3429
effective date of a disability benefit plus an;3430

       (ii) An amount from the employers' accumulation fund equal 3431
to the member's refundable account less interest credited under 3432
section 145.471, 145.472, or 3307.563 of the Revised Code, 3433
excluding amounts of the member's accumulated contributions 3434
deposited under former division (Y) of section 145.01 or former 3435
sections 145.02, 145.29, 145.292, and 145.42, or sections 145.20, 3436
145.201, 145.28, 145.291, 145.292, 145.293, 145.299, 145.2916, 3437
145.301, 145.47, and 145.814 of the Revised Code for the purchase 3438
of service credit. If3439

       If applicable, the public employees retirement system shall 3440
pay to the retirement system determining and paying the benefit a 3441
portion of the amount paid on behalf of the member by an employer 3442
under section 145.483 of the Revised Code. The portion shall be 3443
paid from the employers' accumulation fund and shall equal the 3444
product obtained by multiplying by two the amount the member would 3445
have contributed during the period the employer failed to deduct 3446
contributions, as described in section 145.483 of the Revised 3447
Code.3448

       (i)(f) The annuity rates and mortality tables of the state 3449
retirement system making the calculation and paying the benefit 3450
shall be exclusively applicable.3451

       (ii)(g) Deposits made for the purpose of an additional 3452
annuity, and including guaranteed interest, upon the request of 3453
the member, shall be transferred to the state retirement system 3454
paying the benefit. The return upon such deposits shall be that 3455
offered by the state retirement system making the calculation and 3456
paying the benefit.3457

       (2) A former member receiving a retirement or disability 3458
benefit under this section, who accepts employment amenable to 3459
coverage in any state retirement system that participated in the 3460
former member's combined benefit, shall be subject to the 3461
applicable provisions of law governing such re-employment. If a 3462
former member should be paid any amount in a retirement benefit, 3463
to which the former member is not entitled under the applicable 3464
provisions of law governing such re-employment, such amount shall 3465
be recovered by the state retirement system paying such benefit by 3466
utilizing any recovery procedure available under the code 3467
provisions of the state retirement system covering such 3468
re-employment.3469

       (C) A PERS retirant or other system retirant, as defined in 3470
section 145.38 of the Revised Code, is not eligible to receive any 3471
benefit under this section for service subject to section 145.38 3472
of the Revised Code.3473

       Sec. 145.383.  (A) As used in this section:3474

       (1) "Compensation" has the same meaning as in section 3307.01 3475
or 3309.01 of the Revised Code, as appropriate.3476

       (2) "PERS position" means a position for which a member of 3477
the public employees retirement system is making contributions to 3478
the system.3479

       (3) "Other state retirement system" means the state teachers 3480
retirement system or the school employees retirement system.3481

       (4) "State retirement system" means the public employees 3482
retirement system, state teachers retirement system, or the school 3483
employees retirement system.3484

       (B)(1) A member of the public employees retirement system who 3485
holds two or more PERS positions may retire under section 145.32, 3486
145.33, 145.331, 145.332, 145.34, 145.37, or 145.46 of the Revised 3487
Code from the position for which the annual earnable salary at the 3488
time of retirement is highest and continue to contribute to the 3489
retirement system for the other PERS position or positions.3490

       (2) A member of the public employees retirement system who 3491
also holds one or more other positions covered by the other state 3492
retirement systems may retire under section 145.32, 145.33, 3493
145.331, 145.332, 145.34, 145.37, or 145.46 of the Revised Code 3494
from the PERS position and continue contributing to the other 3495
state retirement systems if the annual earnable salary for the 3496
PERS position at the time of retirement is greater than annual 3497
compensation for the position, or any of the positions, covered by 3498
the other state retirement systems.3499

       (3) A member of the public employees retirement system who 3500
holds two or more PERS positions and at least one other position 3501
covered by one of the other state retirement systems may retire 3502
under section 145.32, 145.33, 145.331, 145.332, 145.34, 145.37, or 3503
145.46 of the Revised Code from one of the PERS positions and 3504
continue contributing to the public employees retirement system 3505
and the other state retirement system if the annual earnable 3506
salary for the PERS position from which the member is retiring is, 3507
at the time of retirement, greater than the annual compensation or 3508
earnable salary for any of the positions for which the member is 3509
continuing to make contributions.3510

       (4) A member of the public employees retirement system who 3511
has retired as provided in division (B)(2) or (3) of section 3512
3307.351 or division (B)(2) or (3) of section 3309.343 of the 3513
Revised Code may continue to contribute to the public employees 3514
retirement system for a PERS position if the member held the 3515
position at the time of retirement from the other state retirement 3516
system.3517

       (5) A member who contributes to the public employees 3518
retirement system in accordance with division (B)(1), (3), or (4) 3519
of this section shall contribute in accordance with section 145.47 3520
of the Revised Code. The member's employer shall contribute as 3521
provided in section 145.48 of the Revised Code. Neither the member 3522
nor the member's survivors are eligible for any benefits based on 3523
those contributions other than those provided under section 3524
145.384, 3307.352, or 3309.344 of the Revised Code.3525

       (C)(1) In determining retirement eligibility and the annual 3526
retirement allowance of a member who retires as provided in 3527
division (B)(1), (2), or (3) of this section, the following shall 3528
be used to the date of retirement:3529

       (a) The member's earnable salary and compensation for all 3530
positions covered by a state retirement system;3531

       (b) Total service credit in any state retirement system, 3532
except that the credit shall not exceed one year of credit for any 3533
period of twelve months;3534

       (c) The member's accumulated contributions.3535

       (2) A member who retires as provided in division (B)(1), (2), 3536
or (3) of this section is a retirant for all purposes of this 3537
chapter, except that the member is not subject to section 145.38 3538
of the Revised Code for a position or positions for which 3539
contributions continue under those divisions or division (B)(4) of 3540
this section.3541

       (D) A retired member receiving a benefit under section 3542
145.384 of the Revised Code based on employment subject to this 3543
section is not a member of the public employees retirement system 3544
and does not have any rights, privileges, or obligations of 3545
membership. The retired member is a PERS retirant for purposes of 3546
section 145.38 of the Revised Code.3547

       (E) The public employees retirement board may adopt rules to 3548
carry out this section.3549

       Sec. 145.39.  Whenever the limits established by section 415 3550
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 3551
U.S.C.A. 415, as amended, are raised, the public employees 3552
retirement board shall increase the amount of the pension, 3553
benefit, or allowance of any person whose pension, benefit, or 3554
allowance payable under section 145.323, 145.33, 145.331, 145.332,3555
145.34, 145.36, or 145.361 of the Revised Code was limited by the 3556
application of section 415. The amount of the increased pension, 3557
benefit, or allowance shall not exceed the lesser of the amount 3558
the person would have received if the limits established by 3559
section 415 had not been applied or the amount the person is 3560
eligible to receive subject to the new limits established by 3561
section 415.3562

       Sec. 145.40.  (A)(1) Subject to the provisions of section 3563
145.57 of the Revised Code and except as provided in section 3564
145.402 of the Revised Code and division (B) of this section, if a 3565
member elects to become exempt from contribution to the public 3566
employees retirement system pursuant to section 145.03 of the 3567
Revised Code or ceases to be a public employee for any cause other 3568
than death, retirement, receipt of a disability benefit, or 3569
current employment in a position in which the member has elected 3570
to participate in an alternative retirement plan under section 3571
3305.05 or 3305.051 of the Revised Code, upon application the 3572
public employees retirement board shall pay the member the 3573
member's accumulated contributions, plus any applicable amount 3574
calculated under section 145.401 of the Revised Code, provided 3575
that both the following apply:3576

       (a) Three months have elapsed since the member's service 3577
subject to this chapter, other than service exempted from 3578
contribution pursuant to section 145.03 of the Revised Code, was 3579
terminated;3580

       (b) The member has not returned to service subject to this 3581
chapter, other than service exempted from contribution pursuant to 3582
section 145.03 of the Revised Code, during that three-month 3583
period.3584

       The payment of such accumulated contributions shall cancel 3585
the total service credit of such member in the public employees 3586
retirement system.3587

       (2) A member described in division (A)(1) of this section who 3588
is married at the time of application for payment and is eligible 3589
for age and service retirement under section 145.32, 145.33, 3590
145.331, 145.332, or 145.34 of the Revised Code or would be 3591
eligible for age and service retirement under any of those 3592
sections but for a forfeiture ordered under division (A) or (B) of 3593
section 2929.192 of the Revised Code shall submit with the 3594
application a written statement by the member's spouse attesting 3595
that the spouse consents to the payment of the member's 3596
accumulated contributions. Consent shall be valid only if it is 3597
signed and witnessed by a notary public.3598

       The board may waive the requirement of consent if the spouse 3599
is incapacitated or cannot be located, or for any other reason 3600
specified by the board. Consent or waiver is effective only with 3601
regard to the spouse who is the subject of the consent or waiver.3602

       (B) This division applies to any member who is employed in a 3603
position in which the member has made an election under section 3604
3305.05 or 3305.051 of the Revised Code and due to the election 3605
ceases to be a public employee for purposes of that position.3606

       Subject to section 145.57 of the Revised Code, the public 3607
employees retirement system shall do the following:3608

       (1) On receipt of a certified copy of a form evidencing an 3609
election under section 3305.05 or 3305.051 of the Revised Code, 3610
pay to the appropriate provider, in accordance with section 3611
3305.052 of the Revised Code, the amount described in section 3612
3305.052 of the Revised Code;3613

       (2) If a member has accumulated contributions, in addition to 3614
those subject to division (B)(1) of this section, standing to the 3615
credit of the member's individual account and is not otherwise 3616
employed in a position in which the member is considered a public 3617
employee for the purposes of that position, pay, to the provider 3618
the member selected pursuant to section 3305.05 or 3305.051 of the 3619
Revised Code, the member's accumulated contributions. The payment 3620
shall be made on the member's application.3621

       (C) Payment of a member's accumulated contributions under 3622
division (B) of this section cancels the member's total service 3623
credit in the public employees retirement system. A member whose 3624
accumulated contributions are paid to a provider pursuant to 3625
division (B) of this section is forever barred from claiming or 3626
purchasing service credit under the public employees retirement 3627
system for the period of employment attributable to those 3628
contributions.3629

       Sec. 145.401.  (A) As used in this section:3630

       (1) "Eligible contributions" means amounts contributed under 3631
section 145.47 of the Revised Code, amounts received from a member 3632
or transferred under division (C) of section 145.20 of the Revised 3633
Code as that section existed prior to the effective date of this 3634
amendment or former section 145.44 or section 145.20, 145.295, 3635
145.2911, 145.2915, 145.2916, or 145.302, or 145.44 of the Revised 3636
Code, and any interest credited under section 145.471 or 145.472 3637
of the Revised Code. "Eligible contributions" does not include 3638
contributions that were used in the payment of a disability 3639
benefit under section 145.36 of the Revised Code or, as provided 3640
in rules adopted by the board, were refunded to a member because 3641
the system was not authorized to accept the contributions.3642

       (2) "Service credit" means service credit earned for periods 3643
for which contributions were made under section 145.47 of the 3644
Revised Code and, if applicable, periods for which service credit 3645
was purchased or transferred under division (C) of section 145.20 3646
of the Revised Code as that section existed prior to the effective 3647
date of this amendment or former section 145.44 or section 145.20,3648
145.295, 145.2911, 145.2915, 145.2916, or 145.302, or 145.44 of 3649
the Revised Code.3650

       (B) If a member has, or at the time of death had, at least 3651
five years of service credit, the public employees retirement 3652
board shall include the amount specified in division (B)(1) or (2) 3653
of this section in the amount payable under section 145.40 of the 3654
Revised Code to the member, or under division (B) of section 3655
145.43 of the Revised Code to a beneficiary or beneficiaries of 3656
the member, unless at the time of death the member was a 3657
disability benefit recipient. The amount specified in division 3658
(B)(1) or (2) of this section shall be paid from the employers' 3659
accumulation fund.3660

       (1) If the member has, or had at the time of death, at least 3661
five but less than ten years of service credit, the amount 3662
included shall be equal to thirty-three per cent of the member's 3663
eligible contributions.3664

       (2) If the member has, or had at the time of death, at least 3665
ten years of service credit, the amount included shall be equal to 3666
sixty-seven per cent of the member's eligible contributions.3667

       Sec. 145.41.  Membership shall cease upon refund of 3668
accumulated contributions, death, or retirement except as provided 3669
in section 145.362 of the Revised Code. A member who separates 3670
from service for any reason other than death or retirement or who 3671
otherwise ceases to be a public employee for any reason other than 3672
death or retirement may leave the member's accumulated 3673
contributions on deposit with the public employees retirement 3674
board and, for the purposes of the public employees retirement 3675
system, be considered on a membership leave of absence. The 3676
member's membership rights shall continue until the member has 3677
withdrawn the member's accumulated contributions, retired on a 3678
retirement allowance as provided in section 145.33, 145.331, 3679
145.332, or 145.34 of the Revised Code, or died. The account of 3680
such a member shall remain in the employees' savings fund, except 3681
that the account of a member who has less than five calendar years 3682
of contributing service credit or is a member of the state 3683
teachers retirement system or the school employees retirement 3684
system may be transferred to the income fund if by the end of the 3685
fifth calendar year following the calendar year in which the last 3686
contribution was received the member has not died, claimed a 3687
refund of contributions, or requested the retirement board to 3688
continue the member's membership on a leave of absence basis. In 3689
case such a member later requests a refund, the member's account 3690
shall be restored to the employees' savings account and refunded 3691
therefrom. Members on such leaves of absence shall retain all 3692
rights, obligations, and privileges of membership in the public 3693
employees retirement system. A "contributor," as defined in 3694
division (F) of section 145.01 of the Revised Code, who formerly 3695
lost membership through termination of membership leave of absence 3696
and who has not withdrawn the contributor's account shall be 3697
reinstated as a member with all the rights, privileges, and 3698
obligations of membership in the system. In no case shall a member 3699
on leave of absence as provided in this section add to the 3700
member's total number of years of service credit by reason of such 3701
leave of absence, unless such member was receiving benefits from 3702
the state insurance fund and by reason of such benefits qualified 3703
for additional service credit as provided in division (H) of 3704
section 145.01 of the Revised Code, or wasis eligible to and does 3705
make a payment as provided in section 145.291 of the Revised Code.3706

       Sec. 145.44.  Members of the public employees retirement 3707
system who, prior to the date membership was established in said 3708
system, were employed by the state or any of the several local 3709
authorities mentioned in section 145.01 of the Revised Code, which 3710
state or local authority has a local retirement system established 3711
under the laws of this state for its employees, shall be permitted 3712
to pay into the employees' savings fund of the public employees 3713
retirement system the amount, with interest as determined by the 3714
public employees retirement board, said members would have paid 3715
through regular salary deductions had they been members of the 3716
public employees retirement system continuously since January 1, 3717
1935.3718

       In case a given member did not enter the employ of the 3719
governmental unit having its own retirement system until a date 3720
subsequent to January 1, 1935, the payment shall be computed on 3721
the earnable salary earned from the date of appointment to the 3722
date membership was established in the public employees retirement 3723
system, provided such members have not received and are not 3724
eligible for benefits from the retirement system of said state or 3725
local governmental unit. By such payment such member shall become 3726
eligible for the benefits provided in division (A)(1)(a) of 3727
section 145.33, section 145.331, division (A)(1)(a) of section 3728
145.34, section 145.36, or section 145.361 of the Revised Code, 3729
and such member shall not become eligible for the other benefits 3730
provided by the remaining divisions of those sections until after 3731
such governmental unit has paid into the public employees 3732
retirement system fund the full liability, as determined by the 3733
actuary engaged by the board to cover such services and payments. 3734
If the governmental unit has not paid the full liability, the 3735
retirement system shall refund the amount paid by the member under 3736
this section. "Full liability" as used in this section means an 3737
amount which, when added to the payment made by the member, will 3738
provide the remaining portion of the pension reserve on such 3739
service.3740

       Sec. 145.45.  Except as provided in division (C)(1) of this 3741
section, in lieu of accepting the payment of the accumulated 3742
account of a member who dies before service retirement, a 3743
beneficiary, as determined in this section or section 145.43 of 3744
the Revised Code, may elect to forfeit the accumulated 3745
contributions and to substitute certain other benefits under 3746
division (A) or (B) of this section.3747

       (A)(1) If a deceased member was eligible for a service 3748
retirement benefit as provided in section 145.33, 145.331, 3749
145.332, or 145.34 of the Revised Code, a surviving spouse or 3750
other sole dependent beneficiary may elect to receive a monthly 3751
benefit computed as the joint-survivor benefit designated as "plan 3752
D" in section 145.46 of the Revised Code, which the member would 3753
have received had the member retired on the last day of the month 3754
of death and had the member at that time selected such 3755
joint-survivor plan. Payment shall begin with the month subsequent 3756
to the member's death, except that a surviving spouse who is less 3757
than sixty-five years old may defer receipt of such benefit. Upon 3758
receipt, the benefit shall be calculated based upon the spouse's 3759
age at the time of first payment, and shall accrue regular 3760
interest during the time of deferral.3761

       (2) Beginning on a date selected by the public employees 3762
retirement board, which shall be not later than July 1, 2004, a 3763
surviving spouse or other sole dependent beneficiary may elect, in 3764
lieu of a monthly payment under division (A)(1) of this section, a 3765
plan of payment consisting of both of the following:3766

       (a) A lump sum in an amount the surviving spouse or other 3767
sole dependent beneficiary designates that constitutes a portion 3768
of the allowance that would be payable under division (A)(1) of 3769
this section;3770

       (b) The remainder of that allowance in monthly payments.3771

       The total amount paid as a lump sum and a monthly benefit 3772
shall be the actuarial equivalent of the amount that would have 3773
been paid had the lump sum not been selected.3774

       The lump sum amount designated by the surviving spouse or 3775
other sole dependent beneficiary under division (A)(2)(a) of this 3776
section shall be not less than six times and not more than 3777
thirty-six times the monthly amount that would be payable to the 3778
surviving spouse or other sole dependent beneficiary under 3779
division (A)(1) of this section and shall not result in a monthly 3780
payment that is less than fifty per cent of that monthly amount.3781

       (B) If a deceased member had, except as provided in division 3782
(B)(7) of this section, at least one and one-half years of 3783
contributing service credit, with, except as provided in division 3784
(B)(7) of this section, at least one-quarter year of contributing 3785
service credit within the two and one-half years prior to the date 3786
of death, or was receiving at the time of death a disability 3787
benefit as provided in section 145.36, 145.361, or 145.37 of the 3788
Revised Code, qualified survivors who elect to receive monthly 3789
benefits shall receive the greater of the benefits provided in 3790
division (B)(1)(a) or (b) and (4) of this section as allocated in 3791
accordance with division (B)(5) of this section.3792

(1)(a) Number Or 3793
of Qualified Monthly 3794
survivors Annual Benefit as a Per Benefit 3795
affecting Cent of Decedent's Final shall not be 3796
the benefit Average Salary less than 3797
1 25% $250 3798
2 40 400 3799
3 50 500 3800
4 55 500 3801
5 or more 60 500 3802

(b) Years of Annual Benefit as a Per Cent 3803
Service of Member's Final Average 3804
Salary 3805
20 29% 3806
21 33 3807
22 37 3808
23 41 3809
24 45 3810
25 48 3811
26 51 3812
27 54 3813
28 57 3814
29 or more 60 3815

       (2) Benefits shall begin as qualified survivors meet 3816
eligibility requirements as follows:3817

       (a) A qualified spouse is the surviving spouse of the 3818
deceased member, who is age sixty-two, or regardless of age meets 3819
one of the following qualifications:3820

       (i) Except as provided in division (B)(7) of this section, 3821
the deceased member had ten or more years of Ohio service credit.3822

       (ii) The spouse is caring for a qualified child.3823

       (iii) The spouse is adjudged physically or mentally 3824
incompetent. 3825

       A spouse of a member who died prior to August 27, 1970, whose 3826
eligibility was determined at the member's death, and who is 3827
physically or mentally incompetent on or after August 20, 1976, 3828
shall be paid the monthly benefit which that person would 3829
otherwise receive when qualified by age.3830

       (b) A qualified child is any child of the deceased member who 3831
has never been married and to whom one of the following applies:3832

       (i) Is under age eighteen, or under age twenty-two if the 3833
child is attending an institution of learning or training pursuant 3834
to a program designed to complete in each school year the 3835
equivalent of at least two-thirds of the full-time curriculum 3836
requirements of such institution and as further determined by 3837
board policy;3838

       (ii) Regardless of age, is adjudged physically or mentally 3839
incompetent at the time of the member's death.3840

       (c) A qualified parent is a dependent parent aged sixty-five 3841
or older or regardless of age if physically or mentally 3842
incompetent, a dependent parent whose eligibility was determined 3843
by the member's death prior to August 20, 1976, and who is 3844
physically or mentally incompetent on or after August 20, 1976, 3845
shall be paid the monthly benefit for which that person would 3846
otherwise qualify.3847

       (3) "Physically or mentally incompetent" as used in this 3848
section may be determined by a court of jurisdiction, or by a 3849
physician appointed by the retirement board. Incapability of 3850
making a living because of a physically or mentally disabling 3851
condition shall meet the qualifications of this division.3852

       (4) Benefits to a qualified survivor shall terminate upon 3853
ceasing to meet eligibility requirements as provided in this 3854
division, a first marriage, abandonment, adoption, or during 3855
active military service. Benefits to a deceased member's surviving 3856
spouse that were terminated under a former version of this section 3857
that required termination due to remarriage and were not resumed 3858
prior to September 16, 1998, shall resume on the first day of the 3859
month immediately following receipt by the board of an application 3860
on a form provided by the board.3861

       Upon the death of any subsequent spouse who was a member of 3862
the public employees retirement system, state teachers retirement 3863
system, or school employees retirement system, the surviving 3864
spouse of such member may elect to continue receiving benefits 3865
under this division, or to receive survivor's benefits, based upon 3866
the subsequent spouse's membership in one or more of the systems, 3867
for which such surviving spouse is eligible under this section or 3868
section 3307.66 or 3309.45 of the Revised Code. If the surviving 3869
spouse elects to continue receiving benefits under this division, 3870
such election shall not preclude the payment of benefits under 3871
this division to any other qualified survivor.3872

       Benefits shall begin or resume on the first day of the month 3873
following the attainment of eligibility and shall terminate on the 3874
first day of the month following loss of eligibility.3875

       (5)(a) If a benefit is payable under division (B)(1)(a) of 3876
this section, benefits to a qualified spouse shall be paid in the 3877
amount determined for the first qualifying survivor in division 3878
(B)(1)(a) of this section. All other qualifying survivors shall 3879
share equally in the benefit or remaining portion thereof.3880

       (b) All qualifying survivors shall share equally in a benefit 3881
payable under division (B)(1)(b) of this section, except that if 3882
there is a surviving spouse, the surviving spouse shall receive 3883
not less than the amount determined for the first qualifying 3884
survivor in division (B)(1)(a) of this section.3885

       (6) The beneficiary of a member who is also a member of the 3886
state teachers retirement system or of the school employees 3887
retirement system, must forfeit the member's accumulated 3888
contributions in those systems and in the public employees 3889
retirement system, if the beneficiary takes a survivor benefit. 3890
Such benefit shall be exclusively governed by section 145.37 of 3891
the Revised Code.3892

       (7) The following restrictions do not apply if the deceased 3893
member was contributing toward benefits under division (B) or (C) 3894
of section 145.33145.332 of the Revised Code at the time of 3895
death:3896

       (a) That the deceased member have had at least one and 3897
one-half years of contributing service credit, with at least 3898
one-quarter year of contributing service within the two and 3899
one-half years prior to the date of death;3900

       (b) If the deceased member was killed in the line of duty, 3901
that the deceased member have had ten or more years of Ohio 3902
service credit as described in division (B)(2)(a)(i) of this 3903
section.3904

       For the purposes of division (B)(7)(b) of this section, 3905
"killed in the line of duty," means either that death occurred in 3906
the line of duty or that death occurred as a result of injury 3907
sustained in the line of duty.3908

       (C)(1) Regardless of whether the member is survived by a 3909
spouse or designated beneficiary, if the public employees 3910
retirement system receives notice that a deceased member described 3911
in division (A) or (B) of this section has one or more qualified 3912
children, all persons who are qualified survivors under division 3913
(B) of this section shall receive monthly benefits as provided in 3914
division (B) of this section.3915

       If, after determining the monthly benefits to be paid under 3916
division (B) of this section, the system receives notice that 3917
there is a qualified survivor who was not considered when the 3918
determination was made, the system shall, notwithstanding section 3919
145.561 of the Revised Code, recalculate the monthly benefits with 3920
that qualified survivor included, even if the benefits to 3921
qualified survivors already receiving benefits are reduced as a 3922
result. The benefits shall be calculated as if the qualified 3923
survivor who is the subject of the notice became eligible on the 3924
date the notice was received and shall be paid to qualified 3925
survivors effective on the first day of the first month following 3926
the system's receipt of the notice.3927

       If the retirement system did not receive notice that a 3928
deceased member has one or more qualified children prior to making 3929
payment under section 145.43 of the Revised Code to a beneficiary 3930
as determined by the retirement system, the payment is a full 3931
discharge and release of the system from any future claims under 3932
this section or section 145.43 of the Revised Code.3933

       (2) If benefits under division (C)(1) of this section to all 3934
persons, or to all persons other than a surviving spouse or other 3935
sole beneficiary, terminate, there are no children under the age 3936
of twenty-two years, and the surviving spouse or beneficiary 3937
qualifies for benefits under division (A) of this section, the 3938
surviving spouse or beneficiary may elect to receive benefits 3939
under division (A) of this section. The benefits shall be 3940
effective on the first day of the month immediately following the 3941
termination.3942

       (D) The final average salary used in the calculation of a 3943
benefit payable pursuant to division (A) or (B) of this section to 3944
a survivor or beneficiary of a disability benefit recipient shall 3945
be adjusted for each year between the disability benefit's 3946
effective date and the recipient's date of death by the lesser of 3947
three per cent or the actual average percentage increase in the 3948
consumer price index prepared by the United States bureau of labor 3949
statistics (U.S. city average for urban wage earners and clerical 3950
workers: "all items 1982-84=100").3951

       (E) If the survivor benefits due and paid under this section 3952
are in a total amount less than the member's accumulated account 3953
that was transferred from the public employees' savings fund to 3954
the survivors' benefit fund, then the difference between the total 3955
amount of the benefits paid shall be paid to the beneficiary under 3956
section 145.43 of the Revised Code.3957

       Sec. 145.452. Upon the death of a member prior to receipt of 3958
service retirementThe surviving spouse of a member who dies on or 3959
after the effective date of this amendment shall have the right to 3960
continue to purchase any service credit the member initiated 3961
before death. A purchase shall be considered to have been 3962
initiated before the member's death if the member made one or more 3963
payments for the purchase before the member's death.3964

       Until one year after the effective date of this amendment, 3965
the surviving spouse or dependentsqualified survivor of the 3966
deceaseda member who died before the effective date of this 3967
amendment shall have the right to purchase any service credit the 3968
member, had the member not died, would have been eligible to 3969
purchase under this chapter upon the same terms and conditions 3970
that the deceased member could have purchased such service credit 3971
had the member not died. Any3972

       Any service credit purchased under this section shall be 3973
applied under the provisions of this chapter in the same manner as 3974
it would have been applied had it been purchased by the deceased 3975
member during the deceased member's lifetime.3976

       Sec. 145.462.  As used in this section, "benefit" means any 3977
allowance, pension, or other benefit to which an individual is 3978
entitled and that hethe individual receives pursuant to section 3979
145.32, 145.33, 145.332, 145.34, 145.36, 145.37, 145.45, or 145.46 3980
of the Revised Code.3981

       The annual amount of each benefit which was payable prior to 3982
February 1, 1984, shall, after the adjustment required by section 3983
145.323 of the Revised Code, be increased by five per cent.3984

       Sec. 145.47.  (A) Each public employee who is a contributor 3985
to the public employees retirement system shall contribute eight 3986
per cent of the contributor's earnable salary to the employees' 3987
savings fund, except that the public employees retirement board 3988
may raise the contribution rate to a rate not greater than ten per 3989
cent of the employee's earnable salary.3990

       (B) The head of each state department, institution, board, 3991
and commission, and the fiscal officer of each local authority 3992
subject to this chapter, shall deduct from the earnable salary of 3993
each contributor on every payroll of such contributor for each 3994
payroll period subsequent to the date of coverage, an amount equal 3995
to the applicable per cent of the contributor's earnable salary. 3996
The head of each state department and the fiscal officer of each 3997
local authority subject to this chapter shall transmit promptly to 3998
the system a report of contributions at such intervals and in such 3999
form as the system shall require, showing thereon all deductions 4000
for the system made from the earnable salary of each contributor 4001
employed, together with warrants, checks, or electronic payments 4002
covering the total of such deductions. A penalty shall be added 4003
when such report, together with warrants, checks, or electronic 4004
payments to cover the total amount due from the earnable salary of 4005
all amenable employees of such employer, is filed thirty or more 4006
days after the last day of such reporting period. The system, 4007
after making a record of all receipts under this division, shall 4008
deposit the receipts with the treasurer of state for use as 4009
provided by this chapter.4010

       (C) Unless the board adopts a rule under division (D) of this 4011
section, the penalty described in division (B) of this section for 4012
failing to timely transmit a report, pay the total amount due, or 4013
both is as follows:4014

       (1) At least one but not more than ten days past due, an 4015
amount equal to one per cent of the total amount due;4016

       (2) At least eleven but not more than thirty days past due, 4017
an amount equal to two and one-half per cent of the total amount 4018
due;4019

       (3) Thirty-one or more days past due, an amount equal to five 4020
per cent of the total amount due.4021

       The penalty described in this division shall be added to and 4022
collected on the next succeeding regular employer billing. 4023
Interest at a rate set by the retirement board shall be charged on 4024
the amount of the penalty in case such penalty is not paid within 4025
thirty days after it is added to the regular employer billing. 4026

       (D) The board may adopt rules to establish penalties in 4027
amounts that do not exceed the amounts specified in divisions 4028
(C)(1) to (3) of this section.4029

       (E) In addition to the periodical reports of deduction 4030
required by this section, the fiscal officer of each local 4031
authority subject to this chapter shall submit to the system at 4032
least once each year a complete listing of all noncontributing 4033
appointive employees. Where an employer fails to transmit 4034
contributions to the system, the system may make a determination 4035
of the employees' liability for contributions and certify to the 4036
employer the amounts due for collection in the same manner as 4037
payments due the employers' accumulation fund. Any amounts so 4038
collected shall be held in trust pending receipt of a report of 4039
contributions for such public employees for the period involved as 4040
provided by law and, thereafter, the amount in trust shall be 4041
transferred to the employees' savings fund to the credit of the 4042
employees. Any amount remaining after the transfer to the 4043
employees' savings fund shall be transferred to the employers' 4044
accumulation fund as a credit of such employer. 4045

       (F) The fiscal officer of each local authority subject to 4046
this chapter shall require each new contributor to submit to the 4047
system a detailed report of all the contributor's previous service 4048
as a public employee along with such other facts as the board 4049
requires for the proper operation of the system.4050

       (G) Any member who, because of the member's own illness, 4051
injury, or other reason which may be approved by the member's 4052
employer is prevented from making the member's contribution to the 4053
system for any payroll period, may pay such deductions as a back 4054
paymentpurchase service credit for the period of absence within 4055
one year. Credit shall be purchased under this division in 4056
accordance with section 145.29 of the Revised Code.4057

       Sec. 145.48.  (A) Each employer shall pay to the public 4058
employees retirement system an amount that shall be a certain per 4059
cent of the earnable salary of all contributors to be known as the 4060
"employer contribution," except that the public employees 4061
retirement board may raise the employer contribution to a rate not 4062
to exceed fourteen per cent of the earnable salaries of all 4063
contributors. 4064

       (B)(1) On the basis of regular interest and of such mortality 4065
and other tables as are adopted by the public employees retirement 4066
board, the actuary for the board shall determine the liabilities 4067
and employer rates of contribution as follows:4068

       (a) The percentage of earnable salary that, when added to the 4069
per cent of earnable salary contributed by each member, will cover 4070
the costs of benefits to be paid to members for each year of 4071
service rendered;4072

       (b) The percentage of earnable salary that, if paid over a 4073
period of future years, will discharge fully the system's unfunded 4074
actuarial accrued pension liability;4075

       (c) The percentage of earnable salary designated by the board 4076
to pay benefits authorized under section 145.58 of the Revised 4077
Code.4078

       (2) If recognized assets exceed the liabilities for service 4079
previously rendered, on approval of the board, a percentage of 4080
earnable salary may be deducted from the employer rates of 4081
contribution that, if deducted annually over a period of future 4082
years, will eliminate the excess.4083

       (C) Any publicly owned utility that became subject to this 4084
chapter subsequent to July 1, 1938, shall assume before January 1, 4085
1967, the obligation to pay those of its employees entitled to any 4086
prior service credit a pension for such service that is in an 4087
amount at least equal to the pension provided for other public 4088
employees under this chapter. No employers' contributions for 4089
prior service credit shall be required of such publicly owned 4090
utility. The public employees retirement system has no obligation 4091
to pay a prior service pension to any such employees of a publicly 4092
owned utility, nor is it obligated to grant any service credit for 4093
service with such utility prior to May 1, 1942, or prior to the 4094
date such utility became subject to this chapter, whichever is the 4095
later date.4096

       Sec. 145.483.  Upon a finding that an employer failed to 4097
deduct contributions pursuant to section 145.47 of the Revised 4098
Code during a period of employment for which such contributions 4099
were required, a statement of delinquent contributions shall be 4100
prepared showing the amount the contributor and employer would 4101
have contributed had regular payroll deductions been taken. Simple 4102
interest from the end of each calendar year at a rate set by the 4103
public employees retirement boardequal to the assumed actuarial 4104
rate of interest at the time the statement is prepared shall be 4105
included. If delinquent contribution statements are not paid not4106
later than thirty days after the end of the month in which they 4107
become an obligation of the employer, any balance remaining shall 4108
be collected with penalties and interest pursuant to section 4109
145.51 of the Revised Code.4110

       Any amount paid under this section by an employer shall be 4111
credited in accordance with section 145.23 of the Revised Code.4112

       Sec. 145.49. (A) Notwithstanding section 145.47 of the 4113
Revised Code:4114

       (1) The public employees retirement system shall be 4115
authorized to calculate the employee contribution rates separately 4116
for those public employees contributing toward benefits as PERS 4117
public safety officers under section 145.33145.332 of the Revised 4118
Code.4119

       (2) Each public employee contributing toward benefits as PERS 4120
law enforcement officers under section 145.33145.332 of the 4121
Revised Code shall contribute to the employees' savings fund the 4122
rate determined under division (A)(1) of this section plus an 4123
additional percentage specified by the public employees retirement 4124
board, which shall initially be one per cent of the employee's 4125
earnable salary and shall not be increased to more than two per 4126
cent of the employee's earnable salary.4127

       (B) Notwithstanding section 145.48 of the Revised Code, the 4128
public employees retirement system shall be authorized to 4129
calculate the employer contribution rates separately for those 4130
public employees contributing toward benefits as PERS public 4131
safety officers under section 145.33145.332 of the Revised Code 4132
or as PERS law enforcement officers under that section, except 4133
that the employer contribution rate shall not exceed eighteen and 4134
one-tenth per cent of the earnable salaries of those employees.4135

       Sec. 145.51. (A) Each employer described in division (D) of 4136
section 145.01 of the Revised Code shall pay into the employers' 4137
accumulation fund, in monthly installments, an amount certified by 4138
the public employees retirement board, which equals the employer 4139
obligation as described in section 145.12 or 145.69 of the Revised 4140
Code. In addition, the board shall add to the employer billing 4141
next succeeding the amount, with interest, to be paid by the 4142
employer to provide the member with contributing service credit 4143
for the service prior to the date of initial contribution to the 4144
system for which the member has made additional payments, except 4145
payments made pursuant to former section 145.29 or sections 145.28 4146
and 145.29145.292 of the Revised Code.4147

       (B) Except as provided in section 145.52 of the Revised Code, 4148
all employer obligations described in division (A) of this section 4149
must be received by the public employees retirement system not 4150
later than the thirtieth day after the last day of the calendar 4151
month for which related member contributions are withheld.4152

        (C) Unless the board adopts a rule under division (F) of this 4153
section establishing a different interest rate or penalty, 4154
interest and penalties for failing to pay the employer obligation 4155
when due under division (B) of this section shall be as follows:4156

        (1) Interest, compounded annually and charged monthly, for 4157
each day after the due date that the employer obligation remains 4158
unpaid in an amount equal to six per cent per annum of the past 4159
due amount of the employer obligation and any penalties imposed 4160
under this section;4161

        (2) The penalty for failing to pay the employer obligation 4162
when due under division (B) is as follows:4163

        (a) At least eleven but not more than thirty days past due, 4164
an amount equal to one per cent of the past due obligation;4165

        (b) At least thirty-one but not more than sixty days past 4166
due, an additional amount equal to one and one-half per cent of 4167
the past due obligation;4168

        (c) Sixty-one or more days past due, an additional amount 4169
equal to two and one-half per cent of the past due obligation.4170

        (D) The aggregate of all payments by employers under this 4171
section shall be sufficient, when combined with the amount in the 4172
employers' accumulation fund, to provide amounts payable under 4173
this chapter out of the fund, and if not, the additional amount so 4174
required shall be collected by means of an increased rate per 4175
cent, which shall be certified to such employers by the board.4176

       (E) Upon certification by the board to the director of budget 4177
and management, or to the county auditor, of an amount due from an 4178
employer within any county who is subject to this chapter, by 4179
reason of such employer's delinquency in making payments into the 4180
employers' accumulation fund for past billings, such amount shall 4181
be withheld from such employer from any funds subject to the 4182
control of the director or the county auditor to such employer and 4183
shall be paid to the public employees retirement system.4184

       (F) The board may adopt rules to do any of the following:4185

        (1) Establish interest at a rate that does not exceed the 4186
annual rate described in division (C)(1) of this section;4187

       (2) Establish penalties in amounts that do not exceed the 4188
amounts described in division (C)(2) of this section;4189

        (3) Permit the board to lengthen the periods of time or enter 4190
into repayment agreements for employers to comply with divisions 4191
(B) and (C) of this section.4192

       Sec. 145.54.  The public employees retirement board shall 4193
estimate annually the amount required to defray the expenses of 4194
the administration of the public employees retirement system in 4195
the ensuing year. If in the judgment of the board, as evidenced by 4196
a resolution of that board in its minutes, the amount in the 4197
income fund exceeds the amount necessary to cover the ordinary 4198
requirements of that fund, the board may transfer to the expense 4199
fund such excess amount not exceeding the entire amount required 4200
to cover the expenses as estimated for the year. TheIf the amount 4201
in the expense fund, including any amount transferred from the 4202
income fund, is not sufficient to defray the expenses of 4203
administration of the system in the ensuing year, the board may 4204
then apportiontransfer any remaining amount required for the 4205
expense fund for the year then current among contributors. The 4206
amount so apportioned in any year shall not exceed three dollars 4207
per contributorto that fund from the employer's accumulation 4208
fund.4209

       Sec. 145.56.  The right of an individual to a pension, an 4210
annuity, or a retirement allowance itself, the right of an 4211
individual to any optional benefit, any other right accrued or 4212
accruing to any individual, under this chapter, or under any 4213
municipal retirement system established subject to this chapter 4214
under the laws of this state or any charter, the various funds 4215
created by this chapter, or under such municipal retirement 4216
system, and all moneys, investments, and income from moneys or 4217
investments are exempt from any state tax, except the tax imposed 4218
by section 5747.02 of the Revised Code and are exempt from any 4219
county, municipal, or other local tax, except taxes imposed 4220
pursuant to section 5748.02 or 5748.08 of the Revised Code and, 4221
except as provided in sections 145.57, 145.572, 145.573, 3105.171, 4222
3105.65, and 3115.32 and Chapters 3119., 3121., 3123., and 3125. 4223
of the Revised Code, shall not be subject to execution, 4224
garnishment, attachment, the operation of bankruptcy or insolvency 4225
laws, or other process of law whatsoever, and shall be 4226
unassignable except as specifically provided in this chapter and 4227
sections 3105.171, 3105.65, and 3115.32 and Chapters 3119., 3121., 4228
3123., and 3125. of the Revised Code.4229

       Sec. 145.561. The(A) Except as provided in division (B) of 4230
this section and section 145.363 or 145.573 of the Revised Code, 4231
the granting of a retirement allowance, annuity, pension, or other 4232
benefit to any person pursuant to action of the public employees 4233
retirement board vests a right in such person, so long as hethe 4234
person remains the recipient of any benefit of the funds 4235
established by section 145.23 of the Revised Code, to receive such 4236
retirement allowance, annuity, pension, or other benefit at the 4237
rate fixed at the time of granting such retirement allowance, 4238
annuity, pension, or other benefit. Such right shall also be 4239
vested with equal effect in the recipient of a grant heretofore 4240
made from any of the funds named in section 145.23 of the Revised 4241
Code.4242

       (B) This section does not apply to an increase made under 4243
section 145.323 of the Revised Code on or after the effective date 4244
of this amendment.4245

       Sec. 145.563. If theNotwithstanding section 145.561 of the 4246
Revised Code, if any person who is a member, former member, 4247
contributor, former contributor, retirant, beneficiary, or 4248
alternate payee, as defined in section 3105.80 of the Revised 4249
Code, is paid any benefit or payment by the public employees 4250
retirement system, including any payment made to a third party on 4251
the person's behalf, to which the person is not entitled, the 4252
benefit or payment shall be repaid to the retirement system by the 4253
person or third party. If the person or third party fails to make 4254
the repayment, the retirement system shall withhold the amount or 4255
a portion of the amount due from any benefit or payment due the 4256
person or the person's beneficiary under this chapter, or may 4257
collect the amount in any other manner provided by law.4258

       Sec. 145.573.  Notwithstanding any other provision of this 4259
chapter, any right of a member of the public employees retirement 4260
system to a disability benefit is subject to a forfeiture order 4261
issued under section 2929.193 of the Revised Code.4262

        If the retirement system receives notice under section 4263
2901.431 of the Revised Code that felony charges have been filed 4264
against a member, the retirement system shall not grant the member 4265
a disability benefit unless it determines that the member's 4266
disability was not caused by commission of the felony. If the 4267
member has disability coverage under this chapter or was granted a 4268
disability benefit after the date on which the felony was 4269
committed, the retirement system shall notify the prosecutor who 4270
sent the notice under section 2901.431 of the Revised Code that 4271
the member may be subject to an order of forfeiture under section 4272
2929.193 of the Revised Code.4273

        On receipt under section 2929.193 of the Revised Code of a 4274
journal entry showing an order of forfeiture of any right a member 4275
may have to a disability benefit, the retirement system shall 4276
comply with the order. If a disability benefit was granted prior 4277
to receipt of the order, the retirement system shall terminate the 4278
benefit. Any disability benefit paid to the member prior to its 4279
termination may be recovered in accordance with section 145.563 of 4280
the Revised Code.4281

        Neither this section nor section 2929.193 of the Revised Code 4282
precludes a member from withdrawing the member's accumulated 4283
contributions in accordance with section 145.40 of the Revised 4284
Code if the member is not subject to section 145.572 of the 4285
Revised Code.4286

       Sec. 145.58.  (A) As used in this section, "ineligible 4287
individual" means all of the following:4288

       (1) A former member receiving benefits pursuant to section 4289
145.32, 145.33, 145.331, 145.332, 145.34, or 145.46 of the Revised 4290
Code for whom eligibility is established more than five years 4291
after June 13, 1981, and who, at the time of establishing 4292
eligibility, has accrued less than ten years' service credit, 4293
exclusive of credit obtained pursuant to section 145.297 or 4294
145.298 of the Revised Code, credit obtained under section 145.37, 4295
145.295, 145.2911, or 145.2913 of the Revised Code for service 4296
under another retirement system, credit obtained after January 29, 4297
1981, pursuant to section 145.293 or 145.301 of the Revised Code, 4298
and credit obtained after May 4, 1992, pursuant to section 145.28 4299
of the Revised Code;4300

       (2) The spouse of the former member;4301

       (3) The beneficiary of the former member receiving benefits 4302
pursuant to section 145.46 of the Revised Code.4303

       (B) The public employees retirement board may enter into 4304
agreements with insurance companies, health insuring corporations, 4305
or government agencies authorized to do business in the state for 4306
issuance of a policy or contract of health, medical, hospital, or 4307
surgical benefits, or any combination thereof, for those 4308
individuals receiving age and service retirement or a disability 4309
or survivor benefit subscribing to the plan, or for PERS retirants 4310
employed under section 145.38 of the Revised Code, for coverage of 4311
benefits in accordance with division (D)(C)(2) of section 145.38 4312
of the Revised Code. Notwithstanding any other provision of this 4313
chapter, the policy or contract may also include coverage for any 4314
eligible individual's spouse and dependent children and for any of 4315
the individual's sponsored dependents as the board determines 4316
appropriate. If all or any portion of the policy or contract 4317
premium is to be paid by any individual receiving age and service 4318
retirement or a disability or survivor benefit, the individual 4319
shall, by written authorization, instruct the board to deduct the 4320
premium agreed to be paid by the individual to the company, 4321
corporation, or agency. Service credit obtained under section 4322
145.295, 145.2911, 145.2913, or 145.37 of the Revised Code for 4323
service under another retirement system shall not be used in 4324
determining the amount of the premium.4325

       The board may contract for coverage on the basis of part or 4326
all of the cost of the coverage to be paid from appropriate funds 4327
of the public employees retirement system. The cost paid from the 4328
funds of the system shall be included in the employer's 4329
contribution rate provided by sections 145.48 and 145.51 of the 4330
Revised Code. The board may by rule provide coverage to ineligible 4331
individuals if the coverage is provided at no cost to the 4332
retirement system. The board shall not pay or reimburse the cost 4333
for coverage under this section or section 145.325145.584 of the 4334
Revised Code for any ineligible individual.4335

       The board may provide for self-insurance of risk or level of 4336
risk as set forth in the contract with the companies, 4337
corporations, or agencies, and may provide through the 4338
self-insurance method specific benefits as authorized by rules of 4339
the board.4340

       (C) The board shall, beginning the month following receipt of 4341
satisfactory evidence of the payment for coverage, pay monthly to 4342
each recipient of service retirement, or a disability or survivor 4343
benefit under the public employees retirement system who is 4344
eligible for medical insurance coverage under part B of Title 4345
XVIII of "The Social Security Act," 79 Stat. 301 (1965), 42 4346
U.S.C.A. 1395j, as amended, an amount determined by the board for 4347
such coverage that is not less than ninety-six dollars and forty 4348
cents, except that the board shall make no such payment to any 4349
ineligible individual or pay an amount that exceeds the amount 4350
paid by the recipient for the coverage.4351

       At the request of the board, the recipient shall certify to 4352
the retirement system the amount paid by the recipient for 4353
coverage described in this division.4354

       (D) The board shall establish by rule requirements for the 4355
coordination of any coverage, payment, or benefit provided under 4356
this section or section 145.325145.584 of the Revised Code with 4357
any similar coverage, payment, or benefit made available to the 4358
same individual by the Ohio police and fire pension fund, state 4359
teachers retirement system, school employees retirement system, or 4360
state highway patrol retirement system.4361

       (E) The board shall make all other necessary rules pursuant 4362
to the purpose and intent of this section.4363

       Sec. 145.325.        Sec. 145.584.  (A) Except as otherwise provided in 4364
division (B) of this section, the board of the public employees 4365
retirement system shall make available to each retirant or 4366
disability benefit recipient receiving a monthly allowance or 4367
benefit on or after January 1, 1968, who has attained the age of 4368
sixty-five years, and who is not eligible to receive hospital 4369
insurance benefits under the federal old age, survivors, and 4370
disability insurance program, hospital insurance coverage 4371
substantially equivalent to the federal hospital insurance 4372
benefits, Social Security Amendments of 1965, 79 Stat. 291, 42 4373
U.S.C.A. 1395c, as amended. This coverage shall also be made 4374
available to the spouse, widow, or widower of such retirant or 4375
disability benefit recipient provided such spouse, widow, or 4376
widower has attained age sixty-five and is not eligible to receive 4377
hospital insurance benefits under the federal old age, survivors, 4378
and disability insurance program. The widow or widower of a 4379
retirant or disability benefit recipient shall be eligible for 4380
such coverage only if he or she is the recipient of a monthly 4381
allowance or benefit from this system. One-half of the cost of the 4382
premium for the spouse shall be paid from the appropriate funds of 4383
the public employees retirement system and one-half by the 4384
recipient of the allowance or benefit.4385

       The cost of such coverage, paid from the funds of the system, 4386
shall be included in the employer's rate provided by section 4387
145.48 of the Revised Code. The retirement board is authorized to 4388
make all necessary rules pursuant to the purpose and intent of 4389
this section, and shall contract for such coverage as provided in 4390
section 145.58 of the Revised Code.4391

       (B) The board need not make the hospital insurance coverage 4392
described in division (A) of this section available to any person 4393
for whom it is prohibited by section 145.58 of the Revised Code 4394
from paying or reimbursing the premium cost of such insurance.4395

       Sec. 145.82.  (A) Except as provided in divisions (B) and (C) 4396
of this section, sections 145.201 to 145.70 of the Revised Code do 4397
not apply to a PERS defined contribution plan, except that a PERS 4398
defined contribution plan may incorporate provisions of those 4399
sections as specified in the plan document.4400

       (B) The following sections of Chapter 145. of the Revised 4401
Code apply to a PERS defined contribution plan: 145.22, 145.221, 4402
145.23, 145.25, 145.26, 145.27, 145.296, 145.38, 145.382, 145.383,4403
145.384, 145.391, 145.47, 145.48, 145.483, 145.51, 145.52, 145.53, 4404
145.54, 145.55, 145.56, 145.563, 145.57, 145.571, 145.572, 4405
145.573, 145.69, and 145.70 of the Revised Code.4406

       (C) A PERS defined contribution plan that includes definitely 4407
determinable benefits may incorporate by reference all or part of 4408
sections 145.201 to 145.79 of the Revised Code to allow a member 4409
participating in the plan to purchase service credit or to be 4410
eligible for any of the following:4411

       (1) Retirement, disability, survivor, or death benefits;4412

       (2) Health or long-term care insurance or any other type of 4413
health care benefit;4414

       (3) Additional increases under section 145.323 of the Revised 4415
Code;4416

       (4) A refund of contributions made by or on behalf of a 4417
member.4418

       With respect to the benefits described in division (C)(1) of 4419
this section, the public employees retirement board may establish 4420
eligibility requirements and benefit formulas or amounts that 4421
differ from those of members participating in the PERS defined 4422
benefit plan. With respect to the purchase of service credit by a 4423
member participating in a PERS defined contribution plan, the 4424
board may reduce the cost of the service credit to reflect the 4425
different benefit formula established for the member.4426

       Sec. 145.87.  For each member participating in a PERS defined 4427
contribution plan, the public employees retirement system shall4428
may transfer to the employers' accumulation fund a portion of the 4429
employer contribution required under section 145.48 of the Revised 4430
Code. TheIf the public employees retirement board elects to make 4431
a transfer under this section, the portion transferred shall equal4432
not exceed the percentage of earnable salary of members for whom 4433
the contributions are being made that is determined by an actuary 4434
appointed by the public employees retirement board to be necessary 4435
to mitigate any negative financial impact on the system of 4436
members' participation in a plan.4437

       The board shall have prepared annuallymay have prepared, at 4438
intervals determined by the board, an actuarial study to determine 4439
whether the percentage transferreda transfer under this section 4440
should be changedis necessary to reflect a change in the level of 4441
negative financial impact resulting from members' participation in 4442
a plan. The percentage transferred, if any, shall be increased or 4443
decreased to reflect the amount needed to mitigate the negative 4444
financial impact, if any, on the system, as determined by the 4445
study. A change in the percentage transferred shall take effect on 4446
the first day of the year following the date the conclusions of 4447
the study are reported to the board.4448

       TheIf a transfer under this section is made, the system 4449
shall make the transfer required under this section until the 4450
unfunded actuarial accrued liability for all benefits, except 4451
health care benefits provided under section 145.325 or 145.58 or 4452
145.584 of the Revised Code and benefit increases to members and 4453
former members participating in the PERS defined benefit plan 4454
granted after September 21, 2000, is fully amortized, as 4455
determined by the annual actuarial valuation prepared under 4456
section 145.22 of the Revised Code.4457

       Sec. 145.92.  If a member participating in a PERS defined 4458
contribution plan is married at the time benefits under the plan 4459
are to commence, unless the spouse consents to another plan of 4460
payment or the spouse's consent is waived, the member's retirement 4461
allowancebenefit under the plan shall be paid in a lesser amount 4462
payable for life and one-half of the allowancethat amount4463
continuing after death to the surviving spouse for the life of the 4464
spouse.4465

       Consent is valid only if it is evidenced by a written 4466
document signed by the spouse and the signature is witnessed by a 4467
notary public. A plan may waive the requirement of consent if the 4468
spouse is incapacitated or cannot be located or for any other 4469
reason specified by the plan or in rules adopted by the public 4470
employees retirement board.4471

       A plan shall waive the requirement of consent if a plan of 4472
payment that provides for payment in a specified portion of the 4473
retirement allowance continuing after the member's death to a 4474
former spouse is required by a court order issued under section 4475
3105.171 or 3105.65 of the Revised Code or laws of another state 4476
regarding division of marital property prior to the effective date 4477
of the member's retirement. If a court order requires this plan of 4478
payment, the member shall be required to annuitize the member's 4479
accumulated amounts in accordance with the order. If the member is 4480
married, the plan of payment selected by the member also shall 4481
provide for payment to the member's current spouse, unless the 4482
current spouse consents in writing to not being designated a 4483
beneficiary under the plan of payment or the current spouse's 4484
consent is waived by reason other than the court order.4485

       Consent or waiver is effective only with regard to the spouse 4486
who is the subject of the consent or waiver.4487

       Sec. 145.95. (A) Subject to division (B) of this section and4488
sections 145.38, 145.56, 145.57, and 145.572, and 145.573 of the 4489
Revised Code, the right of a member participating in a PERS 4490
defined contribution plan to any payment or benefit accruing from 4491
contributions made by or on behalf of the member under sections 4492
145.85 and 145.86 of the Revised Code shall vest in accordance 4493
with this section.4494

       A member's right to any payment or benefit that is based on 4495
the member's contributions is nonforfeitable.4496

       A member's right to any payment or benefit that is based on 4497
contributions by the member's employer is nonforfeitable as 4498
specified by the plan selected by the member. 4499

       (B) This section does not apply to an increase made under 4500
section 145.323 of the Revised Code on or after the effective date 4501
of this amendment.4502

       Sec. 145.97.  Each PERS defined contribution plan shall 4503
permit a member participating in the plan to do all of the 4504
following:4505

       (A) Maintain on deposit with the public employees retirement 4506
system, or the entity administering the plan pursuant to a 4507
contract with the public employees retirement board, any amounts 4508
that have accumulated on behalf of the member;4509

       (B) If the member has withdrawn the amounts described in 4510
division (A) of this section, returns to employment covered under 4511
this chapter, and is participating in a plan that includes 4512
definitely determinable benefits, pay to the system the amounts 4513
withdrawn in accordance with rules adopted under section 145.314514
145.80 of the Revised Code;4515

       (C) Make additional deposits as permitted by the "Internal 4516
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.4517

       Sec. 742.01.  As used in this chapter:4518

       (A)(1) "Police department" means the police department of a 4519
municipal corporation.4520

       (2) "Member of a police department" means any of the 4521
following:4522

       (a) Any person who receives an original appointment as a 4523
full-time regular police officer in a police department from a 4524
duly established civil service eligible list or pursuant to 4525
section 124.411 of the Revised Code, or who is described in 4526
section 742.511 of the Revised Code, or who transfers from the 4527
public employees retirement system to the Ohio police and fire 4528
pension fund pursuant to section 742.513 of the Revised Code, or 4529
who is appointed pursuant to section 737.15 or 737.16 of the 4530
Revised Code as a full-time regular police officer and is paid 4531
solely out of public funds of the employing municipal corporation;4532

       (b) Any person who, on October 1, 1965, was contributing four 4533
per cent of the person's annual salary to a police relief and 4534
pension fund established under former section 741.32 of the 4535
Revised Code;4536

       (c) Any person who commences employment on or after September 4537
16, 1998, as a full-time police officer with a police department 4538
in a position in which the person is required to satisfactorily 4539
complete a peace officer training course in compliance with 4540
section 109.77 of the Revised Code.4541

       (B)(1) "Fire department" means a fire department of the state 4542
or an instrumentality of the state or of a municipal corporation, 4543
township, joint fire district, or other political subdivision.4544

       (2) "Member of a fire department" means all of the following:4545

       (a) Any person who commences employment after November 8, 4546
1990, as a full-time firefighter with a fire department, in a 4547
position in which the person is required to satisfactorily 4548
complete or have satisfactorily completed a firefighter training 4549
course approved under former section 3303.07 or section 4765.55 or 4550
conducted under section 3737.33 of the Revised Code;4551

       (b) Any person who has elected under section 742.515 of the 4552
Revised Code to be transferred from the public employees 4553
retirement system to the Ohio police and fire pension fund;4554

       (c) Any full-time firefighter who, on November 8, 1990, is a 4555
member of the Ohio police and fire pension fund.4556

       (C) "Employee" means any person who is a member of a police 4557
department or a member of a fire department.4558

       (D) "Employer" means the government entity by which an 4559
employee is employed and paid.4560

       (E) "Member of the fund" means any person, except an other 4561
system retirant as defined in section 742.26 of the Revised Code, 4562
who is contributing a percentage of the person's annual salary to 4563
the Ohio police and fire pension fund or who is receiving a 4564
disability benefit or pension from the fund as a result of service 4565
in a police or fire department. A person, other than an other 4566
system retirant, who is contributing a percentage of the person's 4567
annual salary to the fund and is dismissed, resigns, or is granted 4568
a leave of absence from a police or fire department shall be 4569
considered a "member of the fund" for a period of twelve months 4570
after the first day of the dismissal, resignation, or leave of 4571
absence, provided the sum deducted from the person's salary and 4572
credited to the person's account in the fund remains on deposit in 4573
the fund.4574

       (F) "Year," for the purpose of determining benefits, means 4575
any twelve consecutive calendar months of active service as a 4576
member of the fund, or, in the case of a member whose salary is 4577
paid weekly or biweekly, fifty-two consecutive weeks of active 4578
service as a member.4579

       (G) "Average annual salary" means the highest average annual 4580
salary of a member of the fund during any threeof the number of4581
years of contributions specified in section 742.37 or 742.39 of 4582
the Revised Code, as appropriate, and determined by dividing the 4583
member's total salary as an employee during thethose years by 4584
threethat number.4585

       (H) "Normal service pension benefit" means the pension 4586
benefit payable to a member of the fund under division (C)(1) of 4587
section 742.37 of the Revised Code upon attaining age forty-eight4588
attainment of the applicable age listed in that section.4589

       (I) "Retirement allowance" means the total pension benefit or 4590
disability benefit to which a member of the fund may be entitled 4591
under division (C) of section 742.37 or section 742.39 of the 4592
Revised Code.4593

       (J) "Fiduciary" means a person who does any of the following:4594

       (1) Exercises any discretionary authority or control with 4595
respect to the management of the system, or with respect to the 4596
management or disposition of its assets;4597

       (2) Renders investment advice for a fee, direct or indirect, 4598
with respect to money or property of the system;4599

       (3) Has any discretionary authority or responsibility in the 4600
administration of the system.4601

       (K) "Terminal pay" means the following payments made by an 4602
employer to an employee onin contemplation of termination of 4603
employment regardless of whether the payments are made before or 4604
after termination:4605

       (1) Payments for accrued but unused leave, including sick 4606
leave, vacation, personal leave, and compensatory time;4607

       (2) Payments deferred more than one year compensating the 4608
employee for holidays worked or for longevity;4609

       (3) Payments for overtime worked that are not included either4610
in the payroll for the period in which the overtime is worked or 4611
for the next subsequent payroll for any period ending not later 4612
than sixty days after the overtime is worked;4613

       (4) Other payments that are not compensation for services 4614
rendered in the last pay period in which services were rendered 4615
and are designated as terminal pay by rule of the board of 4616
trustees of the Ohio police and fire pension fund. The board shall 4617
not designate as terminal pay payments deferred one year or less 4618
compensating an employee for holidays worked or for longevity.4619

       (L)(1) Except as otherwise provided in this division, 4620
"salary" means all compensation, wages, and other earnings paid to 4621
an employee by reason of employment, but without regard to whether 4622
compensation, wages, or other earnings are treated as deferred 4623
income for federal income tax purposes. "Salary" includes payments 4624
for overtime that are made not later than the payroll following 4625
the payroll period in which the overtime is worked.4626

       (2) "Salary" does not include any of the following:4627

       (a) Compensation for services outside the scope of an 4628
employee's regular employment;4629

       (b) Reimbursement of expenses;4630

       (c) Terminal pay;4631

       (d) Payments for accrued but unused sick leave or personal 4632
leave, or vacation pay covering periods for which salary, 4633
compensation, or benefits are paid;4634

       (e) Payments made under division (B), (C), or (E) of section 4635
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill 4636
No. 3 of the 119th general assembly, Section 3 of Amended 4637
Substitute Senate Bill No. 164 of the 124th general assembly, or 4638
Amended Substitute House Bill No. 405 of the 124th general 4639
assembly;4640

       (f) Payments made to or on behalf of an employee that are in 4641
excess of the annual compensation that may be taken into account 4642
by the fund under division (a)(17) of section 401 of the "Internal 4643
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 401(a)(17), as 4644
amended.4645

       (3) The board shall determine by rule whether any 4646
compensation, wages, or earnings not enumerated in this division 4647
is salary, and its decision shall be final.4648

       (M) "Actuary" means an individual who satisfies all of the 4649
following requirements:4650

       (1) Is a member of the American academy of actuaries;4651

       (2) Is an associate or fellow of the society of actuaries;4652

       (3) Has a minimum of five years' experience in providing 4653
actuarial services to public retirement plans.4654

       Sec. 742.31.  Each employee shall contribute an amount equal 4655
to ten per centa percentage of the employee's salary to the Ohio 4656
police and fire pension fund. Theaccording to the following 4657
schedule:4658

       (A) For salary earned on or before the last day of the 4659
employer's payroll period ending not later than thirty-one days 4660
after the effective date of this section, ten per cent;4661

       (B) For salary earned after the day described in division (A) 4662
of this section but on or before the last day of the employer's 4663
last payroll period ending in December 2011, ten and one-half per 4664
cent;4665

       (C) For salary earned after the last day of the employer's 4666
last payroll period ending in December 2011, but on or before the 4667
last day of the employer's last payroll period ending in December 4668
2012, eleven per cent;4669

       (D) For salary earned after the last day of the employer's 4670
last payroll period ending in December 2012, but on or before the 4671
last day of the employer's last payroll period ending in December 4672
2013, eleven and one-half per cent;4673

       (E) For salary earned after the last day of the employer's 4674
last payroll period ending in December 2013, twelve per cent.4675

       The amount shall be deducted by the employer from the 4676
employee's salary as defined in division (L) of section 742.01 of 4677
the Revised Code for each payroll period, irrespective of whether 4678
the minimum compensation provided by law for the employee is 4679
reduced thereby. Every employee shall be deemed to consent to the 4680
deductions, and payment to the employee less the deductions is a 4681
complete discharge and acquittance of all claims and demands for 4682
the services rendered by the employee during the period covered by 4683
such payment.4684

       Sec. 742.33.  (A) Each employer shall pay quarterlymonthly, 4685
on such dates as the board of trustees of the Ohio police and fire 4686
pension fund requires, from its general fund, or from a levy 4687
imposed pursuant to division (J) or (W) of section 5705.19 of the 4688
Revised Code, to the fund an amount known as the "police officer 4689
employers' contribution," which shall be nineteen and one-half per 4690
cent of the salaries as defined in division (L) of section 742.01 4691
of the Revised Code of the members of the police department of the 4692
employer.4693

       (B) The taxing authority of each municipal corporation in 4694
which there was a police relief and pension fund on October 1, 4695
1965, shall annually, in the manner provided for making other 4696
municipal levies and in addition to all other levies authorized by 4697
law, levy a tax of three-tenths of one mill upon all the real and 4698
personal property as listed for taxation in the municipal 4699
corporation for the purpose of paying the police officer 4700
employers' contribution and the municipal corporation's accrued 4701
liability for its former police relief and pension fund and 4702
interest thereon, and of defraying the current operating expenses 4703
of the municipal corporation. The annual revenues derived from the 4704
tax shall be used in the following order:4705

       (1) First, to pay the current police officer employers' 4706
contribution and any interest related thereto;4707

       (2) Second, to pay any accrued liability chargeable to the 4708
municipal corporation during the current calendar year for its 4709
former police relief and pension fund and any interest related 4710
thereto;4711

       (3) Third, to defray the current operating expenses of the 4712
municipal corporation.4713

       Sec. 742.34.  (A) Each employer shall pay quarterlymonthly, 4714
on such dates as the board of trustees of the Ohio police and fire 4715
pension fund requires, from its general fund, or from a levy 4716
imposed pursuant to division (I) or (W) of section 5705.19 of the 4717
Revised Code, to the fund an amount known as the "firefighter 4718
employers' contribution," which shall be twenty-four per cent of 4719
the salaries as defined in division (L) of section 742.01 of the 4720
Revised Code of the members of the fire department of the 4721
employer.4722

       (B) The taxing authority of each municipal corporation in 4723
which there was a firemen's relief and pension fund on October 1, 4724
1965, shall annually, in the manner provided for making other 4725
municipal levies and in addition to all other levies authorized by 4726
law, levy a tax of three-tenths of one mill upon all the real and 4727
personal property as listed for taxation in the municipal 4728
corporation for the purpose of paying the firefighter employers' 4729
contribution and the municipal corporation's accrued liability for 4730
its former firemen's relief and pension fund and interest thereon, 4731
and of defraying the current operating expenses of the municipal 4732
corporation. The annual revenues derived from the tax shall be 4733
used in the following order:4734

       (1) First, to pay the current firefighter employers' 4735
contribution and any interest related thereto;4736

       (2) Second, to pay any accrued liability chargeable to the 4737
municipal corporation during the current calendar year for its 4738
former firemen's relief and pension fund and any interest related 4739
thereto;4740

       (3) Third, to defray the current operating expenses of the 4741
municipal corporation.4742

       Sec. 742.35. As used in this section, "calendar quarter" 4743
means the three-month period ending on the last day of March, 4744
June, September, or December.4745

       Each employer shall pay its annual police officer employers' 4746
contribution and firefighter employers' contribution in four equal4747
monthly installments promptly as provided in sections 742.33 and 4748
742.34 of the Revised Code. If an employer fails to make a payment 4749
on or before the date that is sixty days after the last day of the 4750
calendar quarterThe employer shall pay each installment not later 4751
than the thirtieth day after the last day of the month for which 4752
the police officer or firefighter employee contributions were 4753
withheld. If an employer fails to make the required installment by 4754
the date it is due, a penalty determined under section 742.352 of 4755
the Revised Code shall be assessed against the employer. In 4756
addition, interest on past due accounts and penalties may be 4757
charged at a rate determined by the board from the date the 4758
installment is due to the date of payment.4759

       Upon certification by the board to the county auditor of an 4760
amount due from any employer within the county who is subject to 4761
this chapter, by reason of such employer's delinquency in making 4762
employer contribution payments to the fund for past months, such 4763
amount shall be withheld from such employer from any funds in the 4764
hands of the county treasurer for distribution to such employer. 4765
Upon receipt of such certification, the county auditor shall draw 4766
a warrant against such funds in favor of the fund for the amount.4767

       Sec. 742.37.  The board of trustees of the Ohio police and 4768
fire pension fund shall adopt rules for the management of the fund 4769
and for the disbursement of benefits and pensions as set forth in 4770
this section and section 742.39 of the Revised Code. Any payment 4771
of a benefit or pension under this section is subject to the 4772
provisions of section 742.461 of the Revised Code. Notwithstanding 4773
any other provision of this section, no pension or benefit paid or 4774
determined under division (B) or (C) of this section or section 4775
742.39 of the Revised Code shall exceed the limit established by 4776
section 415 of the "Internal Revenue Code of 1986," 100 Stat. 4777
2085, 26 U.S.C.A. 415, as amended.4778

       (A) Persons who were receiving benefit or pension payments 4779
from a police relief and pension fund established under former 4780
section 741.32 of the Revised Code, or from a firemen's relief and 4781
pension fund established under former section 521.02 or 741.02 of 4782
the Revised Code, at the time the assets of the fund were 4783
transferred to the Ohio police and fire pension fund, known at 4784
that time as the police and firemen's disability and pension fund, 4785
shall receive benefit and pension payments from the Ohio police 4786
and fire pension fund in the same amount and subject to the same 4787
conditions as such payments were being made from the former fund 4788
on the date of the transfer.4789

       (B) A member of the fund who, pursuant to law, elected to 4790
receive benefits and pensions from a police relief and pension 4791
fund established under former section 741.32 of the Revised Code, 4792
or from a firemen's relief and pension fund established under 4793
former section 741.02 of the Revised Code, in accordance with the 4794
rules of the fund governing the granting of benefits or pensions 4795
therefrom in force on April 1, 1947, shall receive benefits and 4796
pensions from the Ohio police and fire pension fund in accordance 4797
with such rules; provided, that any member of the fund who is not 4798
receiving a benefit or pension from the fund on August 12, 1975, 4799
may, upon application for a benefit or pension to be received on 4800
or after August 12, 1975, elect to receive a benefit or pension in 4801
accordance with division (C) of this section.4802

       (C) Members of the fund who have not elected to receive 4803
benefits and pensions from a police relief and pension fund or a 4804
firemen's relief and pension fund in accordance with the rules of 4805
the fund in force on April 1, 1947, shall receive pensions and 4806
benefits in accordance with the following provisions:4807

       (1) A member of the fund who has completed twenty-five years 4808
of active service in a police or fire departmentcredit and has 4809
attained forty-eight years ofthe requisite age may, at the 4810
member's election,elect to retire from the police or fire 4811
department. UponThe requisite age is forty-eight for a member 4812
whose membership began before January 1, 2011, and fifty-two for a 4813
member whose membership began on or after that date.4814

       Upon notifying the board in writing of the election, the 4815
member shall receive an annual pension, payable in twelve monthly 4816
installments, in an amount equal to a percentage of the member's 4817
average annual salary. TheIf, as of January 1, 2011, the member 4818
had fifteen or more years of service credit, the average annual 4819
salary shall be determined using three years of contributions. If, 4820
as of that date, the member had less than fifteen years of service 4821
credit, the average annual salary shall be determined using five 4822
years of contributions.4823

       The percentage shall be the sum of two and one-half per cent 4824
for each of the first twenty years the member was in the active4825
of service of the departmentcredit, plus two per cent for each of 4826
the twenty-first to twenty-fifth years the member was in the 4827
activeof service of the departmentcredit, plus one and one-half 4828
per cent for each year in excess of twenty-five years the member 4829
was in the activeof service of the departmentcredit. The annual 4830
pension shall not exceed seventy-two per cent of the member's 4831
average annual salary.4832

       A member who completedhas twenty-five years of active4833
service credit, has resigned or been discharged, and has left the 4834
sum deducted from the member's salary on deposit in the pension 4835
fund shall, upon attaining forty-eight years ofthe requisite age,4836
be entitled to receive a normal service pension benefit computed 4837
and paid under division (C)(1) of this section.4838

       While participating in the deferred retirement option plan 4839
established under section 742.43 of the Revised Code, a member 4840
shall not be considered to have elected retirement under division 4841
(C)(1) of this section. On notifying the board under division 4842
(B)(1) of section 742.444 of the Revised Code of the member's 4843
election to terminate active service, a member described in 4844
division (B) of that section shall receive an annual pension under 4845
division (C)(1) of this section calculated in accordance with 4846
section 742.442 of the Revised Code and rules that shall be 4847
adopted by the board of trustees of the Ohio police and fire 4848
pension fund.4849

       (2) A member of the fund who has served fifteen or more years 4850
as an active member of a police or fire departmentservice credit4851
and who voluntarily resigns or is discharged from the department 4852
for any reason other than dishonesty, cowardice, intemperate 4853
habits, or conviction of a felony, shall receive an annual 4854
pension, payable in twelve monthly installments, in an amount 4855
equal to one and one-half per cent of the member's average annual 4856
salary multiplied by the number of full years of the member was in 4857
the activemember's service of the departmentcredit. TheIf, as 4858
of January 1, 2011, the member had fifteen or more years of 4859
service credit, the average annual salary shall be determined 4860
using three years of contributions. If, as of that date, the 4861
member had less than fifteen years of service credit, the average 4862
annual salary shall be determined using five years of 4863
contributions.4864

       If a member's membership began before January 1, 2011, the4865
pension payments shall not commence until the member has attained 4866
the age of forty-eight years and until twenty-five years have 4867
elapsed from the date on which the member became a full-time 4868
regular police officer or firefighter in the department. Pension 4869
payments shall not commence for a member whose membership began on 4870
or after January 1, 2011, until the member has attained the age of 4871
fifty-two years and until twenty-five years have elapsed from the 4872
date on which the member became a full-time regular police officer 4873
or firefighter.4874

       (3) A member of the fund who has completed fifteen or more 4875
years of active service in a police or fire departmentcredit and 4876
who has attained sixty-two years of age, may retire from the 4877
department and, upon notifying the board in writing of the 4878
election to retire, shall receive an annual pension, payable in 4879
twelve monthly installments, in an amount equal to a percentage of 4880
the member's average annual salary. If, as of January 1, 2011, the 4881
member had fifteen or more years of service credit, the average 4882
annual salary shall be determined using three years of 4883
contributions. If, as of that date, the member had less than 4884
fifteen years of service credit, the average annual salary shall 4885
be determined using five years of contributions. The percentage 4886
shall be the sum of two and one-half per cent for each of the 4887
first twenty years the member was in the activeof service of the 4888
departmentcredit, plus two per cent for each of the twenty-first 4889
to twenty-fifth years the member was in the activeof service of 4890
the departmentcredit, plus one and one-half per cent for each 4891
year in excess of twenty-five years the member was in the active4892
of service of the departmentcredit. The annual pension shall not 4893
exceed seventy-two per cent of the member's average annual salary.4894

       (4) A member of the fund whose membership began on or after 4895
January 1, 2011, and who has twenty-five years of service credit 4896
and has attained forty-eight years of age may elect to retire. 4897
Upon notifying the board in writing of the election, the member 4898
shall receive an annual pension, payable in twelve monthly 4899
installments, in an amount determined under division (C)(1) of 4900
this section except that the amount shall be reduced to be the 4901
actuarial equivalent, as determined by the fund's actuary, of the 4902
amount payable had the member retired at fifty-two years of age.4903

       (5) With the exception of those persons who may make 4904
application for benefits as provided in section 742.26 of the 4905
Revised Code, no person receiving a pension or other benefit under 4906
division (C) of this section on or after July 24, 1986, shall be 4907
entitled to apply for any new, changed, or different benefit.4908

       If a member covered by division (C) of this section or 4909
section 742.38 of the Revised Code dies prior to the time the 4910
member has received a payment and leaves a surviving spouse or 4911
dependent child, the surviving spouse or dependent child shall 4912
receive a pension under division (D) or (E) of this section.4913

       (D)(1) Except as provided in division (D)(2) of this section, 4914
a surviving spouse of a deceased member of the fund or a surviving 4915
spouse described in division (D)(4) of this section shall receive 4916
a monthly pension as follows:4917

       (a) For the period beginning July 1, 1999, and ending June 4918
30, 2000, five hundred fifty dollars;4919

       (b) For the period beginning July 1, 2000, and ending June 4920
30, 2002, five hundred fifty dollars plus an amount determined by 4921
multiplying five hundred fifty dollars by the average percentage 4922
change in the consumer price index, not exceeding three per cent, 4923
as was annually determined by the board under former section 4924
742.3716 of the Revised Code as that section existed on January 4925
31, 2002;4926

       (c) For the period beginning July 1, 2002, and the period 4927
beginning the first day of July of each year thereafter and 4928
continuing for the following twelve months, an amount equal to the 4929
monthly amount paid during the prior twelve-month period plus 4930
sixteen dollars and fifty cents.4931

       (2) A surviving spouse of a deceased member of the fund shall 4932
receive a monthly pension of four hundred ten dollars if the 4933
surviving spouse is eligible for a benefit under division (B) or 4934
(D) of section 742.63 of the Revised Code. If the surviving spouse 4935
ceases to be eligible for a benefit under division (B) or (D) of 4936
section 742.63 of the Revised Code, the pension shall be 4937
increased, effective the first day of the first month following 4938
the day on which the surviving spouse ceases to be eligible for 4939
the benefit, to the amount it would be under division (D)(1) of 4940
this section had the spouse never been eligible for a benefit 4941
under division (B) or (D) of section 742.63 of the Revised Code.4942

       (3) A pension paid under this division shall continue during 4943
the natural life of the surviving spouse. Benefits to a deceased 4944
member's surviving spouse that were terminated under a former 4945
version of this section that required termination due to 4946
remarriage and were not resumed prior to September 16, 1998, shall 4947
resume on the first day of the month immediately following receipt 4948
by the board of an application on a form provided by the board.4949

       (4) A surviving spouse of a deceased member of or contributor 4950
to a fund established under former Chapter 521. or 741. of the 4951
Revised Code whose benefit or pension was terminated or not paid 4952
due to remarriage shall receive a monthly pension under division 4953
(D)(1) of this section.4954

       The pension shall commence on the first day of the month 4955
immediately following receipt by the board of a completed 4956
application on a form provided by the board and evidence 4957
acceptable to the board that at the time of death the deceased 4958
spouse was a member of or contributor to a police or firemen's 4959
relief and pension fund established under former Chapter 521. or 4960
741. of the Revised Code and that the surviving spouse's benefits 4961
were terminated or not granted due to remarriage.4962

       (E)(1) Each surviving child of a deceased member of the fund 4963
shall receive a monthly pension until the child attains the age of 4964
eighteen years, or marries, whichever event occurs first. A 4965
pension under this division, however, shall continue to be payable 4966
to a child under age twenty-two who is a student in and attending 4967
an institution of learning or training pursuant to a program 4968
designed to complete in each school year the equivalent of at 4969
least two-thirds of the full-time curriculum requirements of the 4970
institution, as determined by the board. If any surviving child, 4971
regardless of age at the time of the member's death, because of 4972
physical or mental disability, is totally dependent upon the 4973
deceased member for support at the time of death, the child shall 4974
receive a monthly pension under this division during the child's 4975
natural life or until the child has recovered from the disability.4976

       (2) An eligible surviving child shall receive a monthly 4977
pension as follows:4978

       (a) For the period beginning July 1, 2001, and ending June 4979
30, 2002, a monthly pension of one hundred fifty dollars plus the 4980
cost of living increase provided for inthat was determined under4981
former section 742.3720 of the Revised Code;4982

       (b) For the period beginning July 1, 2002, and ending June 4983
30, 2003, one hundred sixty-three dollars and fifty cents;4984

       (c) For the period beginning July 1, 2003, and the period 4985
beginning the first day of each July thereafter and continuing for 4986
the following twelve months, an amount equal to the monthly amount 4987
paid during the prior twelve-month period plus four dollars and 4988
fifty cents.4989

       (F)(1) If a deceased member of the fund leaves no surviving 4990
spouse or surviving children, but leaves one or two parents 4991
dependent upon the deceased member for support, each parent shall 4992
be paid a monthly pension. The pensions provided for in this 4993
division shall be paid during the natural life of the surviving 4994
parents, or until dependency ceases, or until remarriage, 4995
whichever event occurs first.4996

       (2) Each eligible surviving parent shall be paid a monthly 4997
pension as follows:4998

       (a) For the period ending June 30, 2002, one hundred six 4999
dollars for each parent or two hundred twelve dollars for a sole 5000
dependent parent;5001

       (b) For the period beginning July 1, 2002, and ending June 5002
30, 2003, one hundred nine dollars for each parent or two hundred 5003
eighteen dollars for a sole dependent parent;5004

       (c) For the period beginning July 1, 2003, and the first day 5005
of each July thereafter and continuing for the following twelve 5006
months, an amount equal to the monthly amount paid during the 5007
prior twelve-month period plus three dollars for each parent or 5008
six dollars for a sole dependent parent.5009

       (G)(1) Subject to the provisions of section 742.461 of the 5010
Revised Code, a member of the fund who voluntarily resigns or is 5011
removed from active service in a police or fire department is 5012
entitled to receive an amount equal to the sums deducted from the 5013
member's salary and credited to the member's account in the fund, 5014
except that a member receiving a disability benefit or service 5015
pension is not entitled to receive any return of contributions to 5016
the fund.5017

       (2) A member described in division (G)(1) of this section who 5018
is married at the time of application for payment and would be 5019
eligible for age and service retirement under this section or 5020
section 742.39 of the Revised Code but for a forfeiture ordered 5021
under division (A) or (B) of section 2929.192 of the Revised Code 5022
shall submit with the application a written statement by the 5023
member's spouse attesting that the spouse consents to the payment 5024
of the member's accumulated contributions. Consent shall be valid 5025
only if it is signed and witnessed by a notary public. The board 5026
may waive the requirement of consent if the spouse is 5027
incapacitated or cannot be located, or for any other reason 5028
specified by the board. Consent or waiver is effective only with 5029
regard to the spouse who is the subject of the consent or waiver.5030

       (H) On and after January 1, 1970, all pensions shall be 5031
increased in accordance with the following provisions:5032

       (1) A member of the fund who retired prior to January 1, 5033
1967, has attained age sixty-five on January 1, 1970, and was 5034
receiving a pension on December 31, 1969, pursuant to division (B) 5035
or (C)(1) of this section or former division (C)(2), (3), (4), or 5036
(5) of this section, shall have the pension increased by ten per 5037
cent.5038

       (2) The monthly pension payable to eligible surviving spouses 5039
under division (D) of this section shall be increased by forty 5040
dollars for each surviving spouse receiving a pension on December 5041
31, 1969.5042

       (3) The monthly pension payable to each eligible child under 5043
division (E) of this section shall be increased by ten dollars for 5044
each child receiving a pension on December 31, 1969.5045

       (4) The monthly pension payable to each eligible dependent 5046
parent under division (F) of this section shall be increased by 5047
thirty dollars for each parent receiving a pension on December 31, 5048
1969.5049

       (5) A member of the fund, including a survivor of a member, 5050
who is receiving a pension in accordance with the rules governing 5051
the granting of pensions and benefits in force on April 1, 1947, 5052
that provide an increase in the original pension from time to time 5053
pursuant to changes in the salaries of active members, shall not 5054
be eligible for the benefits provided in this division.5055

       (I) On and after January 1, 1977, a member of the fund who 5056
was receiving a pension or benefit on December 31, 1973, under 5057
division (A), (B), (C)(1), or former division (C)(2) or (7) of 5058
this section shall have the pension or benefit increased as 5059
follows:5060

       (1) If the member's annual pension or benefit is less than 5061
two thousand seven hundred dollars, it shall be increased to three 5062
thousand dollars.5063

       (2) If the member's annual pension or benefit is two thousand 5064
seven hundred dollars or more, it shall be increased by three 5065
hundred dollars.5066

       The following shall not be eligible to receive increased 5067
pensions or benefits as provided in this division:5068

       (a) A member of the fund who is receiving a pension or 5069
benefit in accordance with the rules in force on April 1, 1947, 5070
governing the granting of pensions and benefits, which provide an 5071
increase in the original pension or benefit from time to time 5072
pursuant to changes in the salaries of active members;5073

       (b) A member of the fund who is receiving a pension or 5074
benefit under division (A) or (B) of this section, based on funded 5075
volunteer or funded part-time service, or off-duty disability, or 5076
partial on-duty disability, or early vested service;5077

       (c) A member of the fund who is receiving a pension under 5078
division (C)(1) of this section, based on funded volunteer or 5079
funded part-time service.5080

       (J) On and after July 1, 1977, a member of the fund who was 5081
receiving an annual pension or benefit on December 31, 1973, 5082
pursuant to division (B) of this section, based upon partial 5083
disability, off-duty disability, or early vested service, or 5084
pursuant to former division (C)(3), (5), or (6) of this section, 5085
shall have such annual pension or benefit increased by three 5086
hundred dollars.5087

       The following are not eligible to receive the increase 5088
provided by this division:5089

       (1) A member of the fund who is receiving a pension or 5090
benefit in accordance with the rules in force on April 1, 1947, 5091
governing the granting of pensions and benefits, which provide an 5092
increase in the original pension or benefit from time to time 5093
pursuant to changes in the salaries of active members;5094

       (2) A member of the fund who is receiving a pension or 5095
benefit under division (B) or (C)(2) of this section or former 5096
division (C)(3), (5), or (6) of this section based on volunteer or 5097
part-time service.5098

       (K)(1) Except as otherwise provided in this division, every 5099
person who on July 24, 1986, is receiving an age and service or 5100
disability pension, allowance, or benefit pursuant to this chapter 5101
in an amount less than thirteen thousand dollars a year that is 5102
based upon an award made effective prior to February 28, 1984, 5103
shall receive an increase of six hundred dollars a year or the 5104
amount necessary to increase the pension or benefit to four 5105
thousand two hundred dollars after all adjustments required by 5106
this section, whichever is greater.5107

       (2) Division (K)(1) of this section does not apply to the 5108
following:5109

       (a) A member of the fund who is receiving a pension or 5110
benefit in accordance with rules in force on April 1, 1947, that 5111
govern the granting of pensions and benefits and that provide an 5112
increase in the original pension or benefit from time to time 5113
pursuant to changes in the salaries of active members;5114

       (b) A member of the fund who is receiving a pension or 5115
benefit based on funded volunteer or funded part-time service.5116

       (L) On and after July 24, 1986:5117

       (1) The pension of each person receiving a pension under 5118
division (D) of this section on July 24, 1986, shall be increased 5119
to three hundred ten dollars per month.5120

       (2) The pension of each person receiving a pension under 5121
division (E) of this section on July 24, 1986, shall be increased 5122
to ninety-three dollars per month.5123

       Sec. 742.3716.  (A)(1) As used in this section:5124

       (a) "Eligible person" means a person who meets all of the 5125
following conditions:5126

       (i) Has been receiving a pension or benefit under this 5127
chapter for one year or more based on an award made on or after 5128
July 24, 1986;5129

       (ii) Has not made the election provided for in division (B) 5130
of this section and is not the spouse or survivor of a member who 5131
has made the election provided for in division (B) of this 5132
section;5133

       (iii) Is not the spouse or survivor of a person who has made 5134
the election provided for in division (B) of this section;5135

       (iv) IsHas attained age fifty-five and is receiving a 5136
benefit in accordance with division (A), (B), or (C) of section 5137
742.37, division (C)(2), (3), (4), or (5) of former section 742.37 5138
as that section existed on September 15, 1998, section 742.3711, 5139
or section 742.39 of the Revised Code.5140

       (b) "Recalculated average annual salary" means the highest 5141
average annual compensation of a member of the Ohio police and 5142
fire pension fund during any three years of contributions, 5143
including amounts included in terminal pay attributable to such 5144
three years, determined by dividing the member's total earnings as 5145
an employee during such years by three.5146

       (2) In the case of a member participating in the deferred 5147
retirement option plan established under section 742.43 of the 5148
Revised Code or a member described in division (B) of section 5149
742.444 of the Revised Code, the period of one year or more 5150
described in division (A)(1)(a)(i) of this section begins on the 5151
effective date of the member's election under section 742.44 of 5152
the Revised Code.5153

       (B)(1) Notwithstanding section 742.37 or 742.39 of the 5154
Revised Code, a member of the fund who is not receiving a pension 5155
or benefit under this chapter and who on January 1, 1989, has5156
completed fifteen or more years of active service in a police or 5157
fire departmentcredit under this chapter may elect to have any 5158
future benefit or pension paid to the member or the member's 5159
spouse or survivors under this chapter calculated on the basis of 5160
the member's recalculated average annual salary rather than the 5161
member's average annual salary as determined under section 742.37 5162
or 742.39 of the Revised Code. The election shall be made by the 5163
member prior to or at the time of making an election under section 5164
742.3711 of the Revised Code. This division does not apply to a 5165
member of the fund who elected to participate in the deferred 5166
retirement option plan established under section 742.43 of the 5167
Revised Code unless the member's participation has terminated 5168
pursuant to division (C) of section 742.444 or to section 742.445 5169
of the Revised Code.5170

       (2) If the member eligible to make the election under 5171
division (B)(1) of this section dies prior to making the election 5172
and at the time of death is eligible to retire and receive a 5173
pension or benefit under division (C)(1) or (3) of section 742.37 5174
of the Revised Code, the person entitled to receive a benefit 5175
under section 742.3714 of the Revised Code may make the election 5176
provided for in division (B)(1) of this section.5177

       (3) The election under division (B)(1) or (2) of this section 5178
shall be made on forms provided by the trustees of the fund. Once 5179
received by the fund, the election shall be irrevocable and shall 5180
bind the member and any other person who receives a pension or 5181
benefit based on the member's service. No person who receives a 5182
pension or benefit calculated in accordance with division (B) of 5183
this section is eligible to receive a cost-of-living allowance 5184
under this section. If the person making the election receives a 5185
benefit under section 742.3714 of the Revised Code, that person is 5186
not eligible to receive a cost-of-living allowance under section 5187
742.3711 of the Revised Code.5188

       (C)(1) The board of trustees of the Ohio police and fire 5189
pension fund shall annually increase all benefits payable to 5190
eligible persons by three per cent, except that no benefit shall 5191
exceed the limit established by section 415 of the "Internal 5192
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, as 5193
amended.5194

       The first increase is payable to all eligible persons who on 5195
July 1, 1988, have been receiving a pension or benefit for twelve 5196
months or longer. The increase is payable for the ensuing 5197
twelve-month period or until the next increase is granted under 5198
this section, whichever is later.5199

       The date of the first increase paid under this section shall 5200
be the anniversary date for future increases. The pension or 5201
benefit used in the first calculation of an increase under this 5202
section shall remain as the base for all future increases paid 5203
under this section, unless a new base is established by law. In 5204
the case of a member who has elected to participate in the 5205
deferred retirement option plan established under section 742.43 5206
of the Revised Code or a member described in division (B) of 5207
section 742.444 of the Revised Code, the pension amount used in 5208
the first calculation of an increase under this section shall be 5209
the amount calculated under section 742.442 of the Revised Code 5210
unless the member's participation has terminated pursuant to 5211
division (C) of section 742.444 or to section 742.445 of the 5212
Revised Code.5213

       (2) Increases paid in years subsequent to the year of the 5214
first increase paid under this section shall be paid to all 5215
eligible persons who, on the date that the increase is authorized 5216
by the board, have been receiving a pension or benefit for twelve 5217
months.5218

       (E)(D) If payment of a portion of a benefit is made to an 5219
alternate payee under section 742.462 of the Revised Code, 5220
increases under this section granted while the order is in effect 5221
shall be apportioned between the alternate payee and the benefit 5222
recipient in the same proportion that the amount being paid to the 5223
alternate payee bears to the amount paid to the benefit recipient.5224

       If payment of a portion of a retirement allowance is made to 5225
one or more beneficiaries under "option 4" under division (A)(4) 5226
of section 742.3711 of the Revised Code, each increase under this 5227
section granted while the plan of payment is in effect shall be 5228
divided among the designated beneficiaries in accordance with the 5229
portion each beneficiary has been allocated.5230

       Sec. 742.38.  (A)(1) The board of trustees of the Ohio police 5231
and fire pension fund shall adopt rules establishing minimum 5232
medical testing and diagnostic standards or procedures to be 5233
incorporated into physical examinations administered by physicians 5234
to prospective members of the fund. The standards or procedures 5235
shall include diagnosis and evaluation of the existence of any 5236
heart disease, cardiovascular disease, or respiratory disease. The 5237
rules shall specify the form of the physician's report and the 5238
information to be included in it.5239

       The board shall notify all employers of the establishment of 5240
the minimum standards or procedures and shall include with the 5241
notice a copy of the standards or procedures. The board shall 5242
notify all employers of any changes made to the standards or 5243
procedures. Once the standards or procedures take effect, 5244
employers shall cause each prospective member of the fund to 5245
submit to a physical examination that incorporates the standards 5246
or procedures.5247

       (2) Division (A)(2) of this section applies to an employee 5248
who becomes a member of the fund on or after the date the minimum 5249
standards or procedures described in division (A)(1) of this 5250
section take effect. For each employee described in division 5251
(A)(2) of this section, the employer shall forward to the board a 5252
copy of the physician's report of a physical examination that 5253
incorporates the standards or procedures described in division 5254
(A)(1) of this section. If an employer fails to forward the report 5255
in the form required by the board on or before the date that is 5256
sixty days after the employee becomes a member of the fund, the 5257
board shall assess against the employer a penalty determined under 5258
section 742.353 of the Revised Code.5259

       (B) Application for a disability benefit may be made by a 5260
member of the fund or, if the member is incapacitated as defined 5261
in rules adopted by the board, by a person acting on the member's 5262
behalf. Not later than fourteen days after receiving an 5263
application for a disability benefit from a member or a person 5264
acting on behalf of a member, the board shall notify the member's 5265
employer that an application has been filed. The notice shall 5266
state the member's position or rank. Not later than twenty-eight 5267
days after receiving the notice or filing an application on behalf 5268
of a member, the employer shall forward to the board a statement 5269
certifying the member's job description and any other information 5270
required by the board to process the application.5271

       If the member applying for a disability benefit becomes a 5272
member of the fund prior to the date the minimum standards or 5273
procedures described in division (A)(1) of this section take 5274
effect, the board may request from the member's employer a copy of 5275
the physician's report of the member's physical examination taken 5276
on entry into the police or fire department or, if the employer 5277
does not have a copy of the report, a written statement certifying 5278
that the employer does not have a copy of the report. If an 5279
employer fails to forward the report or statement in the form 5280
required by the board on or before the date that is twenty-eight 5281
days after the date of the request, the board shall assess against 5282
the employer a penalty determined under section 742.353 of the 5283
Revised Code. The board shall maintain the information submitted 5284
under this division and division (A)(2) of this section in the 5285
member's file.5286

       (C) For purposes of determining under division (D) of this 5287
section whether a member of the fund is disabled, the board shall 5288
adopt rules establishing objective criteria under which the board 5289
shall make the determination. The rules shall include standards 5290
that provide for all of the following:5291

       (1) Evaluating a member's illness or injury on which an 5292
application for disability benefits is based;5293

       (2) Defining the occupational duties of a police officer or 5294
firefighter;5295

       (3) Providing for the board to assign competent and 5296
disinterested physicians and vocational evaluators to conduct 5297
examinations of a member;5298

       (4) Requiring a written report for each disability 5299
application that includes a summary of findings, medical opinions, 5300
including an opinion on whether the illness or injury upon which 5301
the member's application for disability benefits is based was 5302
caused or induced by the actual performance of the member's 5303
official duties, and any recommendations or comments based on the 5304
medical opinions;5305

       (5) Providing for the board to consider the member's 5306
potential for retraining or reemployment.5307

       (D) This division does not apply to members of the fund who 5308
have elected to receive benefits and pensions in accordance with 5309
division (A) or (B) of section 742.37 of the Revised Code or from 5310
a police relief and pension fund or a firemen's relief and pension 5311
fund in accordance with the rules of that fund in force on April 5312
1, 1947.5313

       (1) As used in division (D)(1) of this section:5314

       (a) "Totally disabled" means a member of the fund is unable 5315
to perform the duties of any gainful occupation for which the 5316
member is reasonably fitted by training, experience, and 5317
accomplishments. Absolute helplessness is not a prerequisite of 5318
being totally disabled.5319

       (b) "Permanently disabled" means a condition of disability 5320
from which there is no present indication of recovery.5321

       A member of the fund who is permanently and totally disabled 5322
as the result of the performance of the member's official duties 5323
as a member of a police or fire department shall be paid annual 5324
disability benefits in accordance with division (A) of section 5325
742.39 of the Revised Code. In determining whether a member of the 5326
fund is permanently and totally disabled, the board shall consider 5327
standards adopted under division (C) of this section applicable to 5328
the determination.5329

       (2) A member of the fund who is partially disabled as the 5330
result of the performance of the member's official duties as a 5331
member of a police or fire department shall, if the disability 5332
prevents the member from performing those duties and impairs the 5333
member's earning capacity, receive annual disability benefits in 5334
accordance with division (B) of section 742.39 of the Revised 5335
Code. In determining whether a member of the fund is partially 5336
disabled, the board shall consider standards adopted under 5337
division (C) of this section applicable to the determination.5338

       (3) A member of the fund who is disabled as a result of heart 5339
disease or any cardiovascular or respiratory disease of a chronic 5340
nature, which disease or any evidence of which disease was not 5341
revealed by the physical examination passed by the member on entry 5342
into the department, is presumed to have incurred the disease 5343
while performing the member's official duties, unless the contrary 5344
is shown by competent evidence.5345

       (4) A member of the fund who has completed five or more years 5346
of active service in a police or fire departmentcredit and has 5347
incurred a disability not caused or induced by the actual 5348
performance of the member's official duties as a member of the 5349
department, or by the member's own negligence, shall if the 5350
disability prevents the member from performing those duties and 5351
impairs the member's earning capacity, receive annual disability 5352
benefits in accordance with division (C) of section 742.39 of the 5353
Revised Code. In determining whether a member of the fund is 5354
disabled, the board shall consider standards adopted under 5355
division (C) of this section applicable to the determination.5356

       (5) The board shall notify a member of its final action 5357
awarding a disability benefit to the member within thirty days of 5358
the final action. The notice shall be sent by certified mail, 5359
return receipt requested. Not later than ninety days after receipt 5360
of notice from the board, the member shall elect, on a form 5361
provided by the board, either to accept or waive the disability 5362
benefit award. If the member elects to waive the disability 5363
benefit award or fails to make an election within the time period, 5364
the award is rescinded. A member who later seeks a disability 5365
benefit award shall be required to make a new application, which 5366
shall be dealt with in accordance with the procedures used for 5367
original disability benefit applications.5368

       A person is not eligible to apply for or receive disability 5369
benefits under this division, section 742.39 of the Revised Code, 5370
or division (C)(2), (3), (4), or (5) of former section 742.37 of 5371
the Revised Code unless the person is a member of the fund on the 5372
date on which the application for disability benefits is submitted 5373
to the fund.5374

       With the exception of persons who may make application for 5375
increased benefits as provided in division (D)(2) or (4) of this 5376
section or division (C)(3) or (5) of former section 742.37 of the 5377
Revised Code on or after July 24, 1986, or persons who may make 5378
application for benefits as provided in section 742.26 of the 5379
Revised Code, no person receiving a pension or benefit under this 5380
section or division (C) of former section 742.37 of the Revised 5381
Code may apply for any new, changed, or different benefit.5382

       Sec. 742.39.  (A) A member of the Ohio police and fire 5383
pension fund determined to be eligible for a disability benefit 5384
under division (D)(1) of section 742.38 of the Revised Code shall 5385
be paid annual disability benefits, payable in twelve monthly 5386
installments, in an amount equal to seventy-two per cent of the 5387
member's average annual salary. If, as of January 1, 2011, the 5388
member had fifteen or more years of service credit, the average 5389
annual salary shall be determined using three years of 5390
contributions. If, as of that date, the member had less than 5391
fifteen years of service credit, the average annual salary shall 5392
be determined using five years of contributions.5393

       (B) A member of the fund determined to be eligible for a 5394
disability benefit under division (D)(2) of section 742.38 of the 5395
Revised Code shall be paid annual disability benefits, payable in 5396
twelve monthly installments. If the member has fewer than 5397
twenty-five years of active service in a police or fire department5398
credit, the benefit shall be in an amount fixed by the board of 5399
trustees of the Ohio police and fire pension fund. The board may 5400
increase or decrease the benefit whenever the board determines 5401
that the impairment of the member's earning capacity warrants an 5402
increase or decrease based on the standards adopted under division 5403
(C) of section 742.38 of the Revised Code applicable to the 5404
determination, but in no event shall the benefit exceed sixty per 5405
cent of the member's average annual salary.5406

       A member who has completed twenty-five or more years of5407
active service in the departmentcredit shall receive annual 5408
disability benefits, payable in twelve monthly installments, in an 5409
amount equal to a percentage of the member's average annual 5410
salary. The percentage shall be the sum of two and one-half per 5411
cent for each of the first twenty years the member was in the 5412
activeof service of the departmentcredit, plus two per cent for 5413
each of the twenty-first to twenty-fifth years the member was in 5414
the activeof service of the departmentcredit, plus one and 5415
one-half per cent for each year in excess of twenty-five years the 5416
member was in the activeof service of the departmentcredit. The 5417
annual disability benefit shall not exceed seventy-two per cent of 5418
the member's average annual salary.5419

       In calculating a benefit under this division, a member's 5420
average annual salary shall be determined using three years of 5421
contributions if, as of January 1, 2011, the member had fifteen or 5422
more years of service credit. If, as of that date, the member had 5423
less than fifteen years of service credit, the average annual 5424
salary shall be determined using five years of contributions.5425

       (C) A member of the fund determined to be eligible for a 5426
disability benefit under division (D)(4) of section 742.38 of the 5427
Revised Code shall be paid annual disability benefits, payable in 5428
twelve monthly installments, in an amount to be fixed by the 5429
board. The board may increase or decrease the benefits whenever 5430
the board determines that the impairment of the member's earning 5431
capacity warrants an increase or decrease based on the standards 5432
adopted under division (C) of section 742.38 of the Revised Code 5433
applicable to the determination, but in no event shall a benefit 5434
paid to the member exceed sixty per cent of the member's average 5435
annual salary.5436

       (D) Each of the following persons who on July 1, 1999, is 5437
receiving annual benefits of less than six thousand six hundred 5438
dollars shall have the benefits increased to that amount effective 5439
July 1, 1999:5440

       (1) A person receiving annual benefits described in division 5441
(A) of this section;5442

       (2) A person receiving annual benefits described in division 5443
(C) of this section based on an award made prior to September 16, 5444
1998.5445

       (E) Benefits payable under this section continue until death 5446
unless adjusted under division (D)(5) of section 742.38 of the 5447
Revised Code or adjusted or terminated under division (C)(3) of 5448
section 742.40 of the Revised Code.5449

       Sec. 742.44. Except as provided in section 742.14 of the 5450
Revised Code, at any time prior to filing an application for 5451
retirement under division (C)(1) of section 742.37 of the Revised 5452
Code, a member who has attained age fifty-two and is eligible to 5453
retire under that division may elect to participate in the 5454
deferred retirement option plan established under section 742.43 5455
of the Revised Code.5456

       To make an election, an eligible member shall complete and 5457
submit to the Ohio police and fire pension fund a form prescribed 5458
by the fund. At this time the member may, but is not required to, 5459
elect under section 742.3711 of the Revised Code to have the 5460
member's monthly pension calculated as a retirement allowance 5461
payable throughout the member's life or a retirement allowance 5462
under option 2 in division (A) of section 742.3711 of the Revised 5463
Code. Unless rescinded during a period specified in rules adopted 5464
under section 742.43 of the Revised Code, the election is 5465
irrevocable from the date it is received by the fund until the 5466
employee ceases to participate in the plan as provided in section 5467
742.444 of the Revised Code.5468

       A member is not required to specify the number of years or 5469
portion of a year the member will participate in the plan but must 5470
agree to terminate active service in a police or fire department 5471
and begin receiving the member's pension not later than the date 5472
that is eight years after the effective date of the election to 5473
participate in the plan or be subject to the forfeiture provisions 5474
of division (C) of section 742.444 of the Revised Code.5475

       The effective date of an election made under this section is 5476
the first day of the employer's first payroll period immediately 5477
following the board's receipt of the notice of election.5478

       Sec. 742.444. (A) A member's participation in the deferred 5479
retirement option plan ceases on the occurrence of the earliest of 5480
the following:5481

       (1) Termination of the member's active service in a police or 5482
fire department;5483

       (2) The last day of the eight-year period that begins on the 5484
effective date of the member's election to participate in the 5485
plan;5486

       (3) Acceptance by the member of a disability benefit awarded 5487
by the board of trustees of the Ohio police and fire pension fund, 5488
unless the acceptance is revoked by the member in accordance with 5489
rules adopted by the board;5490

       (4) The member's death.5491

       (B) If a member terminates active service in a police or fire 5492
department not later than eight years after the effective date of 5493
the member's election to participate in the plan, all of the 5494
following apply:5495

       (1) The member shall notify the Ohio police and fire pension 5496
fund of the date of termination on a form prescribed by the fund. 5497
The member is not eligible to make another election under section 5498
742.44 of the Revised Code.5499

       (2) If the member's termination of active service occurs on 5500
or after the date that is the first day of the fourthsixth year 5501
after the effective date of the election to participate in the 5502
plan, the entire amount that has accrued to the member's benefit 5503
under the deferred retirement option plan shall be distributed to 5504
the member pursuant to the member's selection under division 5505
(B)(3) of this section. If the termination of active service 5506
occurs before the date that is foursix years after the effective 5507
date of the election to participate, the member shall forfeit the 5508
total amount of the interest credited under division (C) of 5509
section 742.443 of the Revised Code.5510

       (3) The member shall select one of the following as the 5511
method of distribution of the amount to be distributed to the 5512
member:5513

       (a) A single payment;5514

       (b) Periodic payments as determined by the board.5515

       The fund shall retain amounts accrued to the benefit of a 5516
member under the plan until a form specifying the method of 5517
distribution selected is filed with the fund by the member or an 5518
authorized representative of the member.5519

       The board shall afford a member who selects periodic payments 5520
the opportunity at least once during each calendar year to change 5521
the member's selection.5522

       (4) Distribution of the amount accrued to a member's benefit 5523
under the deferred retirement option plan shall not commence until 5524
the date that is the first day of the fourthsixth year after the 5525
effective date of the election.5526

       (5) The member shall select a plan of payment under section 5527
742.3711 of the Revised Code for the pension payable to the member 5528
under division (C) of section 742.37 of the Revised Code, unless 5529
the member selected a plan of payment at the time of electing to 5530
participate in the plan. The pension shall commence not later than 5531
the first day of the second month following the date the employee 5532
ceases to participate in the plan.5533

       (C) If, at the end of the eight-year period that begins on 5534
the effective date of a member's election to participate in the 5535
plan, the member has failed to terminate active service in a 5536
police or fire department, all of the following apply:5537

       (1) No further amounts shall accrue to the member's benefit, 5538
and the member shall forfeit all amounts that have accrued to the 5539
member's benefit under section 742.443 of the Revised Code. The 5540
amounts forfeited shall be treated as if the member had continued 5541
in the active service of a police or fire department and not 5542
elected to participate in the plan.5543

       (2) The member shall be granted service credit for the period 5544
the member was participating in the plan, and when the member's 5545
pension is calculated under section 742.37 of the Revised Code, 5546
the calculation shall be made as though the member had never 5547
participated in the plan.5548

       (3) Further contributions, and service credit for those 5549
contributions, shall be credited as provided in sections 742.31 5550
through 742.34 of the Revised Code.5551

       Sec. 742.63.  The board of trustees of the Ohio police and 5552
fire pension fund shall adopt rules for the management of the Ohio 5553
public safety officers death benefit fund and for disbursements of 5554
benefits as set forth in this section.5555

       (A) As used in this section:5556

       (1) "Member" means all of the following:5557

       (a) A member of the Ohio police and fire pension fund, 5558
including a member of the fund who has elected to participate in 5559
the deferred retirement option plan established under section 5560
742.43 of the Revised Code or a member of or contributor to a 5561
police or firemen's relief and pension fund established under 5562
former Chapter 521. or 741. of the Revised Code;5563

       (b) A member of the state highway patrol retirement system, 5564
including a member who is participating in the deferred retirement 5565
option plan established under section 5505.50 of the Revised Code;5566

       (c) A member of the public employees retirement system who at 5567
the time of the member's death was one of the following:5568

       (i) A county sheriff or deputy sheriff;5569

       (ii) A full-time regular police officer in a municipal 5570
corporation or township;5571

       (iii) A full-time regular firefighter employed by the state, 5572
an instrumentality of the state, a municipal corporation, a 5573
township, a joint fire district, or another political subdivision;5574

       (iv) A full-time park district ranger or patrol trooper;5575

       (v) A full-time law enforcement officer of the department of 5576
natural resources;5577

       (vi) A full-time department of public safety enforcement 5578
agent;5579

       (vii) A full-time law enforcement officer of parks, waterway 5580
lands, or reservoir lands under the control of a municipal 5581
corporation;5582

       (viii) A full-time law enforcement officer of a conservancy 5583
district;5584

       (ix) A correction officer at an institution under the control 5585
of a county, a group of counties, a municipal corporation, or the 5586
department of rehabilitation and correction;5587

       (x) A state university law enforcement officer;5588

       (xi) An investigator, as defined in section 109.541 of the 5589
Revised Code, or an investigator commissioned as a special agent 5590
of the bureau of criminal identification and investigation.5591

       (xii) A drug agent, as defined in section 145.01 of the 5592
Revised Code.5593

       (d) A member of a retirement system operated by a municipal 5594
corporation who at the time of death was a full-time law 5595
enforcement officer of parks, waterway lands, or reservoir lands 5596
under the control of the municipal corporation.5597

       (2) Notwithstanding section 742.01 of the Revised Code, "fire 5598
or police department" includes a fire department of the state or 5599
an instrumentality of the state or of a municipal corporation, 5600
township, joint fire district, or other political subdivision, the 5601
state highway patrol, a county sheriff's office, the security 5602
force of an institution under the control of the department of 5603
rehabilitation and correction, the security force of a jail or 5604
workhouse under the control of a county, group of counties, or 5605
municipal corporation, the security force of a metropolitan, 5606
county, or township park district, the security force of lands 5607
under the control of the department of natural resources, 5608
department of public safety enforcement agents, the security force 5609
of parks, waterway lands, or reservoir lands under the control of 5610
a municipal corporation, the security force of a conservancy 5611
district, the police department of a township or municipal 5612
corporation, and the police force of a state university.5613

       (3) "Firefighter or police officer" includes a state highway 5614
patrol trooper, a county sheriff or deputy sheriff, a correction 5615
officer at an institution under the control of a county, a group 5616
of counties, a municipal corporation, or the department of 5617
rehabilitation and correction, a police officer employed by a 5618
township or municipal corporation, a firefighter employed by the 5619
state, an instrumentality of the state, a municipal corporation, a 5620
township, a joint fire district, or another political subdivision, 5621
a full-time park district ranger or patrol trooper, a full-time 5622
law enforcement officer of the department of natural resources, a 5623
full-time department of public safety enforcement agent, a 5624
full-time law enforcement officer of parks, waterway lands, or 5625
reservoir lands under the control of a municipal corporation, a 5626
full-time law enforcement officer of a conservancy district, and a 5627
state university law enforcement officer.5628

       (4) "Correction officer" includes, in addition to any 5629
correction officer, any correction corporal, sergeant, lieutenant, 5630
or captain, and the equivalents of all such persons.5631

       (5) "A park district ranger or patrol trooper" means a peace 5632
officer commissioned to make arrests, execute warrants, and 5633
preserve the peace upon lands under the control of a board of park 5634
commissioners of a metropolitan, county, or township park 5635
district.5636

       (6) "Metropolitan, county, or township park district" means a 5637
park district created under the authority of Chapter 511. or 1545. 5638
of the Revised Code.5639

       (7) "Conservancy district" means a conservancy district 5640
created under the authority of Chapter 6101. of the Revised Code.5641

       (8) "Law enforcement officer" means an officer commissioned 5642
to make arrests, execute warrants, and preserve the peace upon 5643
lands under the control of the governmental entity granting the 5644
commission.5645

       (9) "Department of natural resources law enforcement officer" 5646
includes a forest officer designated pursuant to section 1503.29 5647
of the Revised Code, a preserve officer designated pursuant to 5648
section 1517.10 of the Revised Code, a wildlife officer designated 5649
pursuant to section 1531.13 of the Revised Code, a park officer 5650
designated pursuant to section 1541.10 of the Revised Code, and a 5651
state watercraft officer designated pursuant to section 1547.521 5652
of the Revised Code.5653

       (10) "Retirement eligibility date" means the last day of the 5654
month in which a deceased member would have first become eligible, 5655
had the member lived, for the retirement pension provided under 5656
section 145.33, section 145.332, Chapter 521. or 741., division 5657
(C)(1) of section 742.37, or division (A)(1) of section 5505.17 of 5658
the Revised Code or provided by a retirement system operated by a 5659
municipal corporation.5660

       (11) "Death benefit amount" means an amount equal to the full 5661
monthly salary received by a deceased member prior to death, minus 5662
an amount equal to the benefit received under section 145.45, 5663
742.37, 742.3714, or 5505.17 of the Revised Code or the benefit 5664
received from a retirement system operated by a municipal 5665
corporation, plus any increases in salary that would have been 5666
granted the deceased member.5667

       (12) "Killed in the line of duty" means either of the 5668
following:5669

       (a) Death in the line of duty;5670

       (b) Death from injury sustained in the line of duty, 5671
including heart attack or other fatal injury or illness caused 5672
while in the line of duty.5673

       (B) A spouse of a deceased member shall receive a death 5674
benefit each month equal to the full death benefit amount, 5675
provided that the deceased member was a firefighter or police 5676
officer killed in the line of duty and there are no surviving 5677
children eligible for a benefit under this section. The spouse 5678
shall receive this benefit during the spouse's natural life until 5679
the deceased member's retirement eligibility date, on which date 5680
the benefit provided under this division shall terminate.5681

       (C)(1) If a member killed in the line of duty as a 5682
firefighter or police officer is survived only by a child or 5683
children, the child or children shall receive a benefit each month 5684
equal to the full death benefit amount. If there is more than one 5685
surviving child, the benefit shall be divided equally among these 5686
children.5687

       (2) If the death benefit paid under this division is divided 5688
among two or more surviving children and any of the children 5689
become ineligible to continue receiving a portion of the benefit 5690
as provided in division (H) of this section, the full death 5691
benefit amount shall be paid to the remaining eligible child or 5692
divided among the eligible children so that the benefit paid to 5693
the remaining eligible child or children equals the full death 5694
benefit amount.5695

       (3) Notwithstanding divisions (C)(1) and (2) of this section, 5696
all death benefits paid under this division shall terminate on the 5697
deceased member's retirement eligibility date.5698

       (D) If a member killed in the line of duty as a firefighter 5699
or police officer is survived by both a spouse and a child or 5700
children, the monthly benefit provided shall be as follows:5701

       (1)(a) If there is a surviving spouse and one surviving 5702
child, the spouse shall receive an amount each month equal to 5703
one-half of the full death benefit amount and the child shall 5704
receive an amount equal to one-half of the full death benefit 5705
amount.5706

       (b) If the surviving spouse dies or the child becomes 5707
ineligible as provided in division (H) of this section, the 5708
surviving spouse or child remaining eligible shall receive the 5709
full death benefit amount.5710

       (2)(a) If there is a surviving spouse and more than one 5711
child, the spouse shall receive an amount each month equal to 5712
one-third of the full death benefit amount and the children shall 5713
receive an amount, equally divided among them, equal to two-thirds 5714
of the full death benefit amount.5715

       (b) If a spouse and more than one child each are receiving a 5716
death benefit under division (D)(2)(a) of this section and the 5717
spouse dies, the children shall receive an amount each month, 5718
equally divided among them, equal to the full death benefit 5719
amount.5720

       (c) If a spouse and more than one child each are receiving a 5721
benefit under division (D)(2)(a) of this section and any of the 5722
children becomes ineligible to receive a benefit as provided in 5723
division (H) of this section, the spouse and remaining eligible 5724
child or children shall receive a death benefit as follows:5725

       (i) If there are two or more remaining eligible children, the 5726
spouse shall receive an amount each month equal to one-third of 5727
the full death benefit amount and the children shall receive an 5728
amount each month, equally divided among them, equal to two-thirds 5729
of the full death benefit amount;5730

       (ii) If there is one remaining eligible child, the spouse 5731
shall receive an amount each month equal to one-half of the full 5732
death benefit amount, and the child shall receive an amount each 5733
month equal to one-half of the full death benefit amount.5734

       (d) If a spouse and more than one child each are receiving a 5735
benefit under division (D)(2)(a) of this section and all of the 5736
children become ineligible to receive a benefit as provided in 5737
division (H) of this section, the spouse shall receive the full 5738
death benefit amount.5739

       (3) Notwithstanding divisions (D)(1) and (2) of this section, 5740
death benefits paid under this division to a surviving spouse 5741
shall terminate on the member's retirement eligibility date. Death 5742
benefits paid to a surviving child or children shall terminate on 5743
the deceased member's retirement eligibility date unless earlier 5744
terminated pursuant to division (H) of this section.5745

       (E) If a member, on or after January 1, 1980, is killed in 5746
the line of duty as a firefighter or police officer and is 5747
survived by only a parent or parents dependent upon the member for 5748
support, the parent or parents shall receive an amount each month 5749
equal to the full death benefit amount. If there is more than one 5750
surviving parent dependent upon the deceased member for support, 5751
the death benefit amount shall be divided equally among the 5752
surviving parents. On the death of one of the surviving parents, 5753
the full death benefit amount shall be paid to the other parent.5754

       (F)(1) The following shall receive a monthly death benefit 5755
under this division:5756

       (a) A surviving spouse whose benefits are terminated in 5757
accordance with division (B) or (D)(3) of this section on the 5758
deceased member's retirement eligibility date, or who would 5759
qualify for a benefit under division (B) or (D) of this section 5760
except that the deceased member reached the member's retirement 5761
eligibility date prior to the member's death;5762

       (b) A qualified surviving spouse of a deceased member of or 5763
contributor to a police or firemen's relief and pension fund 5764
established under former Chapter 521. or 741. of the Revised Code 5765
who was a firefighter or police officer killed in the line of 5766
duty.5767

       (2) The monthly death benefit shall be one-half of an amount 5768
equal to the monthly salary received by the deceased member prior 5769
to the member's death, plus any salary increases the deceased 5770
member would have received prior to the member's retirement 5771
eligibility date. The benefit shall terminate on the surviving 5772
spouse's death. A death benefit payable under this division shall 5773
be reduced by an amount equal to any allowance or benefit payable 5774
to the surviving spouse under section 742.3714 of the Revised 5775
Code.5776

       (3) A benefit granted to a surviving spouse under division 5777
(F)(1)(b) of this section shall commence on the first day of the 5778
month immediately following receipt by the board of a completed 5779
application on a form provided by the board and any evidence the 5780
board may require to establish that the deceased spouse was killed 5781
in the line of duty.5782

       (G)(1) If there is not a surviving spouse eligible to receive 5783
a death benefit under division (F) of this section or the 5784
surviving spouse receiving a death benefit under that division 5785
dies, a surviving child or children whose benefits under division 5786
(C) or (D) of this section are or have been terminated pursuant to 5787
division (C)(3) or (D)(3) of this section or who would qualify for 5788
a benefit under division (C) or (D) of this section except that 5789
the deceased member reached the member's retirement eligibility 5790
date prior to the member's death shall receive a monthly death 5791
benefit under this division. The monthly death benefit shall be 5792
one-half of an amount equal to the monthly salary received by the 5793
deceased member prior to the member's death, plus any salary 5794
increases the member would have received prior to the member's 5795
retirement eligibility date. If there is more than one surviving 5796
child, the benefit shall be divided equally among the surviving 5797
children.5798

       (2) If two or more surviving children each are receiving a 5799
benefit under this division and any of those children becomes 5800
ineligible to continue receiving a benefit as provided in division 5801
(H) of this section, the remaining eligible child or children 5802
shall receive an amount equal to one-half of the monthly salary 5803
received by the deceased member prior to death, plus any salary 5804
increases the deceased member would have received prior to the 5805
retirement eligibility date. If there is more than one remaining 5806
eligible child, the benefit shall be divided equally among the 5807
eligible children.5808

       (3) A death benefit, or portion of a death benefit, payable 5809
to a surviving child under this division shall be reduced by an 5810
amount equal to any allowance or benefit payable to that child 5811
under section 742.3714 of the Revised Code, but the reduction in 5812
that child's benefit shall not affect the amount payable to any 5813
other surviving child entitled to a portion of the death benefit.5814

       (H) A death benefit paid to a surviving child under division 5815
(C), (D), or (G) of this section shall terminate on the death of 5816
the child or, unless one of the following is the case, when the 5817
child reaches age eighteen:5818

       (1) The child, because of physical or mental disability, is 5819
unable to provide the child's own support, in which case the death 5820
benefit shall terminate when the disability is removed;5821

       (2) The child is unmarried, under age twenty-two, and a 5822
student in and attending an institution of learning or training 5823
pursuant to a program designed to complete in each school year the 5824
equivalent of at least two-thirds of the full-time curriculum 5825
requirements of the institution, as determined by the trustees of 5826
the fund.5827

       (I) Acceptance of any death benefit under this section does 5828
not prohibit a spouse or child from receiving other benefits 5829
provided under the Ohio police and fire pension fund, the state 5830
highway patrol retirement system, the public employees retirement 5831
system, or a retirement system operated by a municipal 5832
corporation.5833

       (J) No person shall receive a benefit under this section if 5834
any of the following occur:5835

       (1) The person fails to exercise the right to a monthly 5836
survivor benefit under division (A) or (B) of section 145.45, 5837
division (D), (E), or (F) of section 742.37, or division (A)(3), 5838
(4), or (7) of section 5505.17 of the Revised Code; to a monthly 5839
survivor benefit from a retirement system operated by a municipal 5840
corporation; or to a retirement allowance under section 742.3714 5841
of the Revised Code.5842

       (2) The member's accumulated contributions under this chapter 5843
or Chapter 145. or 5505. of the Revised Code are refunded unless 5844
the member had been a member of the public employees retirement 5845
system and had fewer than eighteen months of total service credit 5846
at the time of death.5847

       (3) In the case of a full-time park district ranger or patrol 5848
trooper, a full-time law enforcement officer of the department of 5849
natural resources, a full-time law enforcement officer of parks, 5850
waterway lands, or reservoir lands under the control of a 5851
municipal corporation, a full-time law enforcement officer of a 5852
conservancy district, a correction officer at an institution under 5853
the control of a county, group of counties, or municipal 5854
corporation, or a member of a retirement system operated by a 5855
municipal corporation who at the time of the member's death was a 5856
full-time law enforcement officer of parks, waterway lands, or 5857
reservoir lands under the control of the municipal corporation, 5858
the member died prior to April 9, 1981, in the case of a benefit 5859
under division (B), (C), or (D) of this section, or prior to 5860
January 1, 1980, in the case of a benefit under division (E) of 5861
this section.5862

       (4) In the case of a full-time department of public safety 5863
enforcement agent who prior to June 30, 1999, was a liquor control 5864
investigator of the department of public safety, the member died 5865
prior to December 23, 1986;5866

       (5) In the case of a full-time department of public safety 5867
enforcement agent other than an enforcement agent who, prior to 5868
June 30, 1999, was a liquor control investigator, the member died 5869
prior to June 30, 1999.5870

       (K) A surviving spouse whose benefit was terminated prior to 5871
June 30, 1999, due to remarriage shall receive a benefit under 5872
division (B), (D), or (F) of this section beginning on the first 5873
day of the month following receipt by the board of an application 5874
on a form provided by the board. The benefit amount shall be 5875
determined as of that date.5876

       (1) If the benefit will begin prior to the deceased member's 5877
retirement eligibility date, it shall be paid under division (B) 5878
or (D) of this section and shall terminate as provided in those 5879
divisions. A benefit paid to a surviving spouse under division (D) 5880
of this section shall be determined in accordance with that 5881
division, even if benefits paid to surviving children are reduced 5882
as a result.5883

       (2) If the benefit will begin on or after the deceased 5884
member's retirement eligibility date, it shall be paid under 5885
division (F) of this section and shall terminate as provided in 5886
that division. A benefit paid to a surviving spouse under division 5887
(F) of this section shall be determined in accordance with that 5888
division, even if benefits paid to surviving children are 5889
terminated as a result.5890

       Sec. 2329.66.  (A) Every person who is domiciled in this 5891
state may hold property exempt from execution, garnishment, 5892
attachment, or sale to satisfy a judgment or order, as follows:5893

       (1)(a) In the case of a judgment or order regarding money 5894
owed for health care services rendered or health care supplies 5895
provided to the person or a dependent of the person, one parcel or 5896
item of real or personal property that the person or a dependent 5897
of the person uses as a residence. Division (A)(1)(a) of this 5898
section does not preclude, affect, or invalidate the creation 5899
under this chapter of a judgment lien upon the exempted property 5900
but only delays the enforcement of the lien until the property is 5901
sold or otherwise transferred by the owner or in accordance with 5902
other applicable laws to a person or entity other than the 5903
surviving spouse or surviving minor children of the judgment 5904
debtor. Every person who is domiciled in this state may hold 5905
exempt from a judgment lien created pursuant to division (A)(1)(a) 5906
of this section the person's interest, not to exceed twenty 5907
thousand two hundred dollars, in the exempted property.5908

       (b) In the case of all other judgments and orders, the 5909
person's interest, not to exceed twenty thousand two hundred 5910
dollars, in one parcel or item of real or personal property that 5911
the person or a dependent of the person uses as a residence.5912

       (2) The person's interest, not to exceed three thousand two 5913
hundred twenty-five dollars, in one motor vehicle;5914

       (3) The person's interest, not to exceed four hundred 5915
dollars, in cash on hand, money due and payable, money to become 5916
due within ninety days, tax refunds, and money on deposit with a 5917
bank, savings and loan association, credit union, public utility, 5918
landlord, or other person, other than personal earnings.5919

        (4)(a) The person's interest, not to exceed five hundred 5920
twenty-five dollars in any particular item or ten thousand seven 5921
hundred seventy-five dollars in aggregate value, in household 5922
furnishings, household goods, wearing apparel, appliances, books, 5923
animals, crops, musical instruments, firearms, and hunting and 5924
fishing equipment that are held primarily for the personal, 5925
family, or household use of the person;5926

        (b) The person's aggregate interest in one or more items of 5927
jewelry, not to exceed one thousand three hundred fifty dollars, 5928
held primarily for the personal, family, or household use of the 5929
person or any of the person's dependents.5930

       (5) The person's interest, not to exceed an aggregate of two 5931
thousand twenty-five dollars, in all implements, professional 5932
books, or tools of the person's profession, trade, or business, 5933
including agriculture;5934

       (6)(a) The person's interest in a beneficiary fund set apart, 5935
appropriated, or paid by a benevolent association or society, as 5936
exempted by section 2329.63 of the Revised Code;5937

       (b) The person's interest in contracts of life or endowment 5938
insurance or annuities, as exempted by section 3911.10 of the 5939
Revised Code;5940

       (c) The person's interest in a policy of group insurance or 5941
the proceeds of a policy of group insurance, as exempted by 5942
section 3917.05 of the Revised Code;5943

       (d) The person's interest in money, benefits, charity, 5944
relief, or aid to be paid, provided, or rendered by a fraternal 5945
benefit society, as exempted by section 3921.18 of the Revised 5946
Code;5947

       (e) The person's interest in the portion of benefits under 5948
policies of sickness and accident insurance and in lump sum 5949
payments for dismemberment and other losses insured under those 5950
policies, as exempted by section 3923.19 of the Revised Code.5951

       (7) The person's professionally prescribed or medically 5952
necessary health aids;5953

       (8) The person's interest in a burial lot, including, but not 5954
limited to, exemptions under section 517.09 or 1721.07 of the 5955
Revised Code;5956

       (9) The person's interest in the following:5957

       (a) Moneys paid or payable for living maintenance or rights, 5958
as exempted by section 3304.19 of the Revised Code;5959

       (b) Workers' compensation, as exempted by section 4123.67 of 5960
the Revised Code;5961

       (c) Unemployment compensation benefits, as exempted by 5962
section 4141.32 of the Revised Code;5963

       (d) Cash assistance payments under the Ohio works first 5964
program, as exempted by section 5107.75 of the Revised Code;5965

       (e) Benefits and services under the prevention, retention, 5966
and contingency program, as exempted by section 5108.08 of the 5967
Revised Code;5968

       (f) Disability financial assistance payments, as exempted by 5969
section 5115.06 of the Revised Code;5970

       (g) Payments under section 24 or 32 of the "Internal Revenue 5971
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.5972

       (10)(a) Except in cases in which the person was convicted of 5973
or pleaded guilty to a violation of section 2921.41 of the Revised 5974
Code and in which an order for the withholding of restitution from 5975
payments was issued under division (C)(2)(b) of that section, in 5976
cases in which an order for withholding was issued under section 5977
2907.15 of the Revised Code, and in cases in which an order for 5978
forfeiture was issued under division (A) or (B) of section 5979
2929.192 of the Revised Code, and in cases in which an order was 5980
issued under 2929.193 of the Revised Code, and only to the extent 5981
provided in the order, and except as provided in sections 5982
3105.171, 3105.63, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06 5983
of the Revised Code, the person's right to a pension, benefit, 5984
annuity, retirement allowance, or accumulated contributions, the 5985
person's right to a participant account in any deferred 5986
compensation program offered by the Ohio public employees deferred 5987
compensation board, a government unit, or a municipal corporation, 5988
or the person's other accrued or accruing rights, as exempted by 5989
section 145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 5990
5505.22 of the Revised Code, and the person's right to benefits 5991
from the Ohio public safety officers death benefit fund;5992

       (b) Except as provided in sections 3119.80, 3119.81, 3121.02, 5993
3121.03, and 3123.06 of the Revised Code, the person's right to 5994
receive a payment under any pension, annuity, or similar plan or 5995
contract, not including a payment from a stock bonus or 5996
profit-sharing plan or a payment included in division (A)(6)(b) or 5997
(10)(a) of this section, on account of illness, disability, death, 5998
age, or length of service, to the extent reasonably necessary for 5999
the support of the person and any of the person's dependents, 6000
except if all the following apply:6001

       (i) The plan or contract was established by or under the 6002
auspices of an insider that employed the person at the time the 6003
person's rights under the plan or contract arose.6004

       (ii) The payment is on account of age or length of service.6005

       (iii) The plan or contract is not qualified under the 6006
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as 6007
amended.6008

       (c) Except for any portion of the assets that were deposited 6009
for the purpose of evading the payment of any debt and except as 6010
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 6011
3123.06 of the Revised Code, the person's right in the assets held 6012
in, or to receive any payment under, any individual retirement 6013
account, individual retirement annuity, "Roth IRA," or education 6014
individual retirement account that provides benefits by reason of 6015
illness, disability, death, or age, to the extent that the assets, 6016
payments, or benefits described in division (A)(10)(c) of this 6017
section are attributable to any of the following:6018

       (i) Contributions of the person that were less than or equal 6019
to the applicable limits on deductible contributions to an 6020
individual retirement account or individual retirement annuity in 6021
the year that the contributions were made, whether or not the 6022
person was eligible to deduct the contributions on the person's 6023
federal tax return for the year in which the contributions were 6024
made;6025

       (ii) Contributions of the person that were less than or equal 6026
to the applicable limits on contributions to a Roth IRA or 6027
education individual retirement account in the year that the 6028
contributions were made;6029

       (iii) Contributions of the person that are within the 6030
applicable limits on rollover contributions under subsections 219, 6031
402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B), 6032
408A(d)(3), and 530(d)(5) of the "Internal Revenue Code of 1986," 6033
100 Stat. 2085, 26 U.S.C.A. 1, as amended.6034

       (d) Except for any portion of the assets that were deposited 6035
for the purpose of evading the payment of any debt and except as 6036
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and 6037
3123.06 of the Revised Code, the person's right in the assets held 6038
in, or to receive any payment under, any Keogh or "H.R. 10" plan 6039
that provides benefits by reason of illness, disability, death, or 6040
age, to the extent reasonably necessary for the support of the 6041
person and any of the person's dependents.6042

       (11) The person's right to receive spousal support, child 6043
support, an allowance, or other maintenance to the extent 6044
reasonably necessary for the support of the person and any of the 6045
person's dependents;6046

       (12) The person's right to receive, or moneys received during 6047
the preceding twelve calendar months from, any of the following:6048

       (a) An award of reparations under sections 2743.51 to 2743.72 6049
of the Revised Code, to the extent exempted by division (D) of 6050
section 2743.66 of the Revised Code;6051

       (b) A payment on account of the wrongful death of an 6052
individual of whom the person was a dependent on the date of the 6053
individual's death, to the extent reasonably necessary for the 6054
support of the person and any of the person's dependents;6055

       (c) Except in cases in which the person who receives the 6056
payment is an inmate, as defined in section 2969.21 of the Revised 6057
Code, and in which the payment resulted from a civil action or 6058
appeal against a government entity or employee, as defined in 6059
section 2969.21 of the Revised Code, a payment, not to exceed 6060
twenty thousand two hundred dollars, on account of personal bodily 6061
injury, not including pain and suffering or compensation for 6062
actual pecuniary loss, of the person or an individual for whom the 6063
person is a dependent;6064

       (d) A payment in compensation for loss of future earnings of 6065
the person or an individual of whom the person is or was a 6066
dependent, to the extent reasonably necessary for the support of 6067
the debtor and any of the debtor's dependents.6068

       (13) Except as provided in sections 3119.80, 3119.81, 6069
3121.02, 3121.03, and 3123.06 of the Revised Code, personal 6070
earnings of the person owed to the person for services in an 6071
amount equal to the greater of the following amounts:6072

       (a) If paid weekly, thirty times the current federal minimum 6073
hourly wage; if paid biweekly, sixty times the current federal 6074
minimum hourly wage; if paid semimonthly, sixty-five times the 6075
current federal minimum hourly wage; or if paid monthly, one 6076
hundred thirty times the current federal minimum hourly wage that 6077
is in effect at the time the earnings are payable, as prescribed 6078
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29 6079
U.S.C. 206(a)(1), as amended;6080

       (b) Seventy-five per cent of the disposable earnings owed to 6081
the person.6082

       (14) The person's right in specific partnership property, as 6083
exempted by division (B)(3) of section 1775.24 of the Revised Code 6084
or the person's rights in a partnership pursuant to section 6085
1776.50 of the Revised Code, except as otherwise set forth in 6086
section 1776.50 of the Revised Code;6087

       (15) A seal and official register of a notary public, as 6088
exempted by section 147.04 of the Revised Code;6089

       (16) The person's interest in a tuition unit or a payment 6090
under section 3334.09 of the Revised Code pursuant to a tuition 6091
payment contract, as exempted by section 3334.15 of the Revised 6092
Code;6093

       (17) Any other property that is specifically exempted from 6094
execution, attachment, garnishment, or sale by federal statutes 6095
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11 6096
U.S.C.A. 101, as amended;6097

       (18) The person's aggregate interest in any property, not to 6098
exceed one thousand seventy-five dollars, except that division 6099
(A)(18) of this section applies only in bankruptcy proceedings.6100

       (B) On April 1, 2010, and on the first day of April in each 6101
third calendar year after 2010, each dollar amount set forth in 6102
this section shall be adjusted, when determining the amount that 6103
is exempt from execution, garnishment, attachment, or sale 6104
pursuant to this section, to reflect the change in the consumer 6105
price index for all urban consumers, as published by the United 6106
States department of labor, or, if that index is no longer 6107
published, a generally available comparable index, for the 6108
three-year period ending on the thirty-first day of December of 6109
the preceding year. Any adjustments required by this division 6110
shall be rounded to the nearest twenty-five dollars.6111

       (C) As used in this section:6112

       (1) "Disposable earnings" means net earnings after the 6113
garnishee has made deductions required by law, excluding the 6114
deductions ordered pursuant to section 3119.80, 3119.81, 3121.02, 6115
3121.03, or 3123.06 of the Revised Code.6116

       (2) "Insider" means:6117

       (a) If the person who claims an exemption is an individual, a 6118
relative of the individual, a relative of a general partner of the 6119
individual, a partnership in which the individual is a general 6120
partner, a general partner of the individual, or a corporation of 6121
which the individual is a director, officer, or in control;6122

       (b) If the person who claims an exemption is a corporation, a 6123
director or officer of the corporation; a person in control of the 6124
corporation; a partnership in which the corporation is a general 6125
partner; a general partner of the corporation; or a relative of a 6126
general partner, director, officer, or person in control of the 6127
corporation;6128

       (c) If the person who claims an exemption is a partnership, a 6129
general partner in the partnership; a general partner of the 6130
partnership; a person in control of the partnership; a partnership 6131
in which the partnership is a general partner; or a relative in, a 6132
general partner of, or a person in control of the partnership;6133

       (d) An entity or person to which or whom any of the following 6134
applies:6135

       (i) The entity directly or indirectly owns, controls, or 6136
holds with power to vote, twenty per cent or more of the 6137
outstanding voting securities of the person who claims an 6138
exemption, unless the entity holds the securities in a fiduciary 6139
or agency capacity without sole discretionary power to vote the 6140
securities or holds the securities solely to secure to debt and 6141
the entity has not in fact exercised the power to vote.6142

       (ii) The entity is a corporation, twenty per cent or more of 6143
whose outstanding voting securities are directly or indirectly 6144
owned, controlled, or held with power to vote, by the person who 6145
claims an exemption or by an entity to which division (C)(2)(d)(i) 6146
of this section applies.6147

       (iii) A person whose business is operated under a lease or 6148
operating agreement by the person who claims an exemption, or a 6149
person substantially all of whose business is operated under an 6150
operating agreement with the person who claims an exemption.6151

       (iv) The entity operates the business or all or substantially 6152
all of the property of the person who claims an exemption under a 6153
lease or operating agreement.6154

       (e) An insider, as otherwise defined in this section, of a 6155
person or entity to which division (C)(2)(d)(i), (ii), (iii), or 6156
(iv) of this section applies, as if the person or entity were a 6157
person who claims an exemption;6158

       (f) A managing agent of the person who claims an exemption.6159

       (3) "Participant account" has the same meaning as in section 6160
148.01 of the Revised Code.6161

       (4) "Government unit" has the same meaning as in section 6162
148.06 of the Revised Code.6163

       (D) For purposes of this section, "interest" shall be 6164
determined as follows:6165

       (1) In bankruptcy proceedings, as of the date a petition is 6166
filed with the bankruptcy court commencing a case under Title 11 6167
of the United States Code;6168

       (2) In all cases other than bankruptcy proceedings, as of the 6169
date of an appraisal, if necessary under section 2329.68 of the 6170
Revised Code, or the issuance of a writ of execution.6171

       An interest, as determined under division (D)(1) or (2) of 6172
this section, shall not include the amount of any lien otherwise 6173
valid pursuant to section 2329.661 of the Revised Code.6174

       Sec. 2901.431. On the filing of charges against a person who 6175
is a member of the public employees retirement system alleging 6176
that the person committed a felony on or after the effective date 6177
of this section, the prosecutor assigned to the case shall send 6178
written notice to the retirement system that the charges have been 6179
filed. The notice shall specifically identify the person.6180

        For purposes of this section, a violation or offense that 6181
includes as an element a course of conduct or the occurrence of 6182
multiple acts is committed on or after the effective date of this 6183
section if the course of conduct continues, one or more of 6184
multiple acts occurs, or the person's accountability for the 6185
course of conduct or one or more of the multiple acts continues on 6186
or after that date.6187

       Sec. 2929.193. (A) This section applies to members of the 6188
public employees retirement system except that in any circumstance 6189
in which section 2929.192 of the Revised Code applies this section 6190
does not apply.6191

       (B) If an offender is being sentenced for a felony offense 6192
that was the cause of a physical or mental disability in the 6193
offender and was committed on or after the effective date of this 6194
section while the offender was a member of the public employees 6195
retirement system, in addition to any sanction it imposes under 6196
section 2929.14, 2929.15, 2929.16, 2929.17, or 2929.18 of the 6197
Revised Code but subject to division (C) of this section, the 6198
court shall order forfeiture of any right of the offender to a 6199
disability benefit from the retirement system that is based on the 6200
disability caused by commission of the felony. The forfeiture 6201
shall be ordered regardless of whether a disability benefit has 6202
been requested or granted. A forfeiture ordered under this section 6203
is part of, and shall be included in, the offender's sentence.6204

        (C) Before sentencing in a case in which the sentencing court 6205
is required to order forfeiture under division (B) of this 6206
section, the offender may request a hearing regarding the 6207
forfeiture by delivering a written request for a hearing to the 6208
court. If there is a timely request, the court shall schedule the 6209
hearing to be conducted before sentencing. Not later than ten days 6210
prior to the scheduled date of the hearing, the court shall give 6211
notice of the hearing date to the offender, the prosecutor who 6212
handled the case, and the retirement system. The hearing shall be 6213
limited to determination of whether the offender's disability 6214
resulted from commission of the offense. If a disability benefit 6215
has already been granted, the retirement system shall submit to 6216
the court documentation of the evidence on which the benefit was 6217
granted.6218

       (D) If the offender does not make a timely request for a 6219
hearing or if a hearing is held and the court determines that the 6220
disability resulted from commission of the offense, the court 6221
shall order the forfeiture of any right the offender may have to a 6222
disability benefit from the retirement system that is based on the 6223
disability caused by commission of the felony. If the disability 6224
benefit has already been granted, the court shall order 6225
termination of the benefit. Any disability benefit paid to the 6226
offender prior to its termination may be recovered in accordance 6227
with section 145.563 of the Revised Code.6228

        (E) The court shall send a copy of the journal entry imposing 6229
sentence on the offender to the retirement system.6230

        (F) For purposes of this section, any violation or offense 6231
that includes as an element a course of conduct or the occurrence 6232
of multiple acts is committed on or after the effective date of 6233
this section if the course of conduct continues, one or more of 6234
multiple acts occurs, or the offender's accountability for the 6235
course of conduct or for one or more of the multiple acts 6236
continues on or after the effective date of this section.6237

       Sec. 3305.06.  (A) Each electing employee shall contribute an 6238
amount, which shall be a certain percentage of the employee's 6239
compensation, to the provider of the investment option the 6240
employee has selected. This percentage shall be the percentage the 6241
electing employee would have otherwise been required to contribute 6242
to the state retirement system that applies to the employee's 6243
position, except that the percentage shall not be less than three 6244
per cent. Employee contributions under this division may be 6245
treated as employer contributions in accordance with Internal 6246
Revenue Code 414(h).6247

       (B) Each public institution of higher education employing an 6248
electing employee shall contribute a percentage of the employee's 6249
compensation to the provider of the investment option the employee 6250
has selected. This percentage shall be equal to the percentage 6251
that the public institution of higher education would otherwise 6252
contribute on behalf of that employee to the state retirement 6253
system that would otherwise cover that employee's position, less 6254
the percentage contributed by the public institution of higher 6255
education under division (D) of this section.6256

       (C)(1) In no event shall the amount contributed by the 6257
electing employee pursuant to division (A) of this section and on 6258
the electing employee's behalf pursuant to division (B) of this 6259
section be less than the amount necessary to qualify the plan as a 6260
state retirement system pursuant to Internal Revenue Code 6261
3121(B)(7) and the regulations adopted thereunder.6262

       (2) The full amount of the electing employee's contribution 6263
under division (A) of this section and the full amount of the 6264
employer's contribution made on behalf of that employee under 6265
division (B) of this section shall be paid to the appropriate 6266
provider for application to the electing employee's investment 6267
option.6268

       (D) Each public institution of higher education employing an 6269
electing employee shall contribute on behalf of that employee to 6270
the state retirement system that otherwise applies to the electing 6271
employee's position a percentage of the electing employee's 6272
compensation to mitigate any negative financial impact of the 6273
alternative retirement program on the state retirement system. The 6274
percentage shall be six per cent, except that the percentage may 6275
be adjusted by the Ohio retirement study council to reflect the 6276
determinations made by actuarial studies conducted under section 6277
171.07 of the Revised Code. Any adjustment shall become effective 6278
on the first day of the second month following submission of the 6279
actuarial study to the board of regents under section 171.07 of 6280
the Revised Code.6281

       Contributions on behalf of an electing employee shall 6282
continue in accordance with this division until the occurrence of 6283
the following:6284

       (1) If the electing employee would be subject to Chapter 145. 6285
of the Revised Code had the employee not made an election pursuant 6286
to section 3305.05 or 3305.051 of the Revised Code, until the 6287
unfunded actuarial accrued liability for all benefits, except 6288
health care benefits provided under section 145.325 or 145.58 or 6289
145.584 of the Revised Code and benefit increases provided after 6290
March 31, 1997, is fully amortized, as determined by the annual 6291
actuarial valuation prepared under section 145.22 of the Revised 6292
Code;6293

       (2) If the electing employee would be subject to Chapter 6294
3307. of the Revised Code had the employee not made an election 6295
pursuant to section 3305.05 or 3305.051 of the Revised Code, until 6296
the unfunded actuarial accrued liability for all benefits, except 6297
health care benefits provided under section 3307.39 or 3307.61 of 6298
the Revised Code and benefit increases provided after March 31, 6299
1997, is fully amortized, as determined by the annual actuarial 6300
valuation prepared under section 3307.51 of the Revised Code;6301

       (3) If the electing employee would be subject to Chapter 6302
3309. of the Revised Code had the employee not made an election 6303
pursuant to section 3305.05 or 3305.051 of the Revised Code, until 6304
the unfunded actuarial accrued liability for all benefits, except 6305
health care benefits provided under section 3309.375 or 3309.69 of 6306
the Revised Code and benefit increases provided after March 31, 6307
1997, is fully amortized, as determined by the annual actuarial 6308
valuation prepared under section 3309.21 of the Revised Code.6309

       Sec. 3307.26. (A) Each teacher shall contribute eighta 6310
certain per cent of the teacher's earned compensation, except that 6311
the state teachers retirement board may raise the contribution 6312
rate to a rate not greater than ten per cent of the teacher's 6313
earned compensation. Foras follows:6314

       (1) For compensation earned not later than June 30, 2011, ten 6315
per cent;6316

       (2) For compensation earned not earlier than July 1, 2011, 6317
but not later than June 30, 2012, not greater than ten and 6318
one-half per cent;6319

       (3) For compensation earned not earlier than July 1, 2012, 6320
but not later than June 30, 2013, not greater than eleven per 6321
cent;6322

       (4) For compensation earned not earlier than July 1, 2013, 6323
but not later than June 30, 2014, not greater than eleven and 6324
one-half per cent;6325

        (5) For compensation earned not earlier than July 1, 2014, 6326
but not later than June 30, 2015, not greater than twelve per 6327
cent;6328

       (6) For compensation earned on or after July 1, 2015, not 6329
greater than twelve and one-half per cent.6330

       (B) For teachers participating in the plan described in 6331
sections 3307.50 to 3307.79 of the Revised Code, contributions 6332
shall be deposited in the teachers' savings fund. For teachers 6333
participating in a plan established under section 3307.81 of the 6334
Revised Code, contributions shall be deposited in the defined 6335
contribution fund. Contributions made pursuant to this section 6336
shall not exceed the limits established by section 415 of the 6337
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 6338
as amended.6339

       (C) The contribution for all teachers shall be deducted by 6340
the employer on each payroll in an amount equal to the applicable 6341
per cent of the teachers' paid compensation for such payroll 6342
period or other period as the board may approve. All contributions 6343
on paid compensation for teachers participating in plans 6344
established under section 3307.81 of the Revised Code shall be 6345
remitted at intervals required by the state teachers retirement 6346
system under section 3307.86 of the Revised Code. All 6347
contributions on earned compensation for teachers participating in 6348
the plan described in sections 3307.50 to 3307.79 of the Revised 6349
Code shall be remitted to the state teachers retirement system by 6350
the thirtieth day of June of each year. Each school district shall 6351
encumber sufficient moneys by the thirtieth day of June of each 6352
year to account for the difference, if any, that may exist between 6353
contributions that would be withheld based upon compensation 6354
earned by a teacher during the year ending the thirtieth day of 6355
June and the contributions withheld based upon compensation paid 6356
to the teacher for the year. Deductions from payroll for 6357
contributions under this section, on an annual basis, shall not 6358
exceed eight per cent or other percentage established by the board 6359
authorized by this section.6360

       (D) At retirement under the plan described in sections 6361
3307.50 to 3307.79 of the Revised Code, or upon a member's death 6362
prior to retirement under that plan, if contributions have been 6363
made after September 1, 1959, in excess of the contributions 6364
normally required to provide the retirement or survivor benefit, 6365
the excess contributions may be refunded to the member, to the 6366
member's beneficiary, or to the member's estate in a lump sum, or 6367
may be used to provide additional income.6368

       (E) The board may determine with regard to any member 6369
participating in the plan described in sections 3307.50 to 3307.79 6370
of the Revised Code whether the limits established by division 6371
(C)(D) of section 3307.58 of the Revised Code have resulted in 6372
exclusion from use in the calculation of benefits under section 6373
3307.58, 3307.59, or 3307.60 of the Revised Code of any 6374
compensation on which contributions have been made under this 6375
section. The board may adopt rules in accordance with section 6376
111.15 of the Revised Code providing for the disposition of 6377
contributions attributable to such compensation and may dispose of 6378
the contributions in accordance with those rules. Any disposition 6379
of contributions made by the board in accordance with the rules 6380
shall be final.6381

       (F) The deductions under this section shall be made even 6382
though the minimum compensation provided by law for any teacher 6383
shall be reduced thereby. Every teacher shall be deemed to consent 6384
to the deductions made. Payment less the deductions shall be a 6385
complete discharge and acquittance of all claims and demands for 6386
the services rendered by the person during the period covered by 6387
the payment.6388

       (G) Additional deposits may be made to a member's account in 6389
the teachers' savings fund or defined contribution fund, subject 6390
to rules of the board. At retirement, the amount deposited with 6391
interest may be used to provide additional annuity income. The 6392
additional deposits may be refunded to the member before 6393
retirement, and shall be refunded if the member withdraws the 6394
member's refundable account. The deposits may be refunded to the 6395
beneficiary or estate if the member dies before retirement.6396

       Sec. 3307.501.  (A) As used in this section, "percentage 6397
increase" means the percentage that an increase in compensation is 6398
of the compensation paid prior to the increase.6399

       (B) Notwithstanding division (L) of section 3307.01 of the 6400
Revised Code, for the purpose of determining final average salary 6401
under this section, "compensation" has the same meaning as in that 6402
division, except that it does not include any amount resulting 6403
from a percentage increase paid to a member during the member's 6404
two highest years of compensation that exceeds the greater of the 6405
following:6406

       (1) The highest percentage increase in compensation paid to 6407
the member during any of the three years immediately preceding the 6408
member's two highest years of compensation and any subsequent 6409
partial year of compensation used in calculating the member's 6410
final average salary;6411

       (2) A percentage increase paid to the member as part of an 6412
increase generally applicable to members employed by the employer. 6413
An increase shall be considered generally applicable if it is paid 6414
to members employed by a school district board of education in 6415
positions requiring a license issued under section 3319.22 of the 6416
Revised Code in accordance with uniform criteria applicable to all 6417
such members or if paid to members employed by an employer other 6418
than a school district board of education in accordance with 6419
uniform criteria applicable to all such members.6420

       (C) The state teachers retirement board shall determine the 6421
final average salary of a member by dividing the sum of the 6422
member's annual compensation for the threefive highest years of 6423
compensation for which the member made contributions plus any 6424
amount determined under division (E) of this section by three6425
five, except that if the member has a partial year of contributing 6426
service in the year the member's employment terminates and the 6427
compensation for the partial year is at a rate higher than the 6428
rate of compensation for any one of the member's highest three6429
five years of compensation, the board shall substitute the 6430
compensation for the partial year for the compensation for the 6431
same portion of the lowest of the member's threefive highest 6432
years of compensation. If a member has less than threefive years 6433
of contributing membership, the member's final average salary 6434
shall be the member's total compensation for the period of 6435
contributing membership plus any amount determined under division 6436
(E) of this section divided by the total years, including any 6437
portion of a year, of contributing service.6438

       For the purpose of calculating benefits payable to a member 6439
qualifying for service credit under division (I) of section 6440
3307.01 of the Revised Code, the board shall calculate the 6441
member's final average salary by dividing the member's total 6442
compensation as a teacher covered under this chapter plus any 6443
amount determined under division (E) of this section by the total 6444
number of years, including any portion of a year, of contributing 6445
membership during that period. If contributions were made for less 6446
than twelve months, the member's final average salary is the total 6447
amount of compensation paid to the member during all periods of 6448
contributions under this chapter.6449

       (D) Contributions made by a member and an employer on amounts 6450
that, pursuant to division (B) of this section, are not 6451
compensation or are not included, pursuant to division (E) of this 6452
section, for the purpose of determining final average salary shall 6453
be treated as additional deposits to the member's account under 6454
section 3307.26 of the Revised Code and used to provide additional 6455
annuity income.6456

       (E) The state teachers retirement board shall adopt rules 6457
establishing criteria and procedures for administering this 6458
division.6459

       The board shall notify each applicant for retirement of any 6460
amount excluded from the applicant's compensation in accordance 6461
with division (B) of this section and of the procedures 6462
established by the board for requesting a hearing on this 6463
exclusion.6464

       Any applicant for retirement who has had any amount excluded 6465
from the applicant's compensation in accordance with division (B) 6466
of this section may request a hearing on this exclusion. Upon 6467
receiving such a request, the board shall determine in accordance 6468
with its criteria and procedures whether, for good cause as 6469
determined by the board, all or any portion of any amount excluded 6470
from the applicant's compensation in accordance with division (B) 6471
of this section, up to a maximum of seventy-five hundred dollars, 6472
is to be included in the determination of final average salary 6473
under division (C) of this section. Any determination of the board 6474
under this division shall be final.6475

       Sec. 3307.58.  Any member participating in the plan described 6476
in sections 3307.50 to 3307.79 of the Revised Code who has five 6477
years of service credit and has attained age sixty, or who has6478
twenty-fivethirty years of service credit and has attained age 6479
fifty-five, or who has thirtythirty-five years of service credit 6480
at any age shall be granted service retirement after filing with 6481
the state teachers retirement board a completed application on a 6482
form approved by the board.6483

       (A) Service retirement shall be effective on the first day of 6484
the month next following the later of:6485

       (1) The last day for which compensation was paid; or6486

       (2) The attainment of minimum age or service credit 6487
eligibility for benefits provided under this section.6488

       Except as provided in division (E)(F) of this section, the 6489
service retirement benefit shall be the greater of the benefits 6490
provided in divisions (B) and (D)(E) of this section.6491

       (B) Subject to any adjustment made under(1) Except as 6492
provided in division (C)(B)(2) of this section, the annual single 6493
lifetime benefit of a member shall be the greater of the amounts 6494
determined by the member's Ohio service credit multiplied by one 6495
of the following:6496

       (1)(a) Eighty-six dollars;6497

       (2)(a) The sum of the following amounts:6498

       (i) For each of the first thirty years of Ohio service 6499
credit, two(b) Two and two-tenths per cent of the member's final 6500
average salary or, subject to the limitation described in division 6501
(B)(2)(b) of this section,for each of the first thirty years of 6502
Ohio service credit plus two and five-tenths per cent of the 6503
member's final average salary if the member has thirty-five or 6504
more years of service credit under section 3307.53, 3307.57, 6505
3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, or 6506
3307.771 of the Revised Code, division (A)(2) or (B) of former 6507
section 3307.513 of the Revised Code, former section 3307.514 of 6508
the Revised Code, section 3307.72 of the Revised Code earned after 6509
July 1, 1978, or any combination of service credit under those 6510
sections;6511

       (ii) For each year or fraction of a year of Ohio service 6512
credit in excess of thirty years, two and two-tenths per cent of 6513
the member's final average salary or, subject to the limitation 6514
described in division (B)(2)(b) of this section, if the member has 6515
more than thirty years service credit under section 3307.53, 6516
3307.57, 3307.75, 3307.751, 3307.752, 3307.761, 3307.763, 3307.77, 6517
or 3307.771 of the Revised Code, division (A)(2) or (B) of former 6518
section 3307.513 of the Revised Code, former section 3307.514 of 6519
the Revised Code, section 3307.72 of the Revised Code earned after 6520
July 1, 1978, or any combination of service credit under those 6521
sections, the per cent of final average salary shown in the 6522
following schedule for each corresponding year or fraction of a 6523
year of service credit under those sections that is in excess of 6524
thirty years:6525

Year Per Year Per 6526
of Cent of Cent 6527
Service for that Service for that 6528
Credit Year Credit Year 6529
30.01 - 31.00 2.5% 35.01 - 36.00 3.0% 6530
31.01 - 32.00 2.6 36.01 - 37.00 3.1 6531
32.01 - 33.00 2.7 37.01 - 38.00 3.2 6532
33.01 - 34.00 2.8 38.01 - 39.00 3.3 6533
34.01 - 35.00 2.9 6534

For purposes of this schedule, years of service credit shall be 6535
rounded to the nearest one-hundredth of a year.6536

       (b) For purposes of division (B)(2)(a) of this section, a 6537
percentage of final average salary in excess of two and two-tenths 6538
per cent shall be applied to service credit under section 3307.57 6539
of the Revised Code only if the service credit was established 6540
under section 145.30, 145.301, 145.302, 145.47, 145.483, 3309.02, 6541
3309.021, 3309.022, or 3309.47 of the Revised Code or restored 6542
under section 145.31 or 3309.26 of the Revised Codefor each 6543
subsequent year of Ohio service credit.6544

       (2) A member's annual single lifetime benefit shall be 6545
reduced by a percentage determined by the board's actuary for each 6546
year the member retires before attaining the earliest of the 6547
following: earned at least thirty-five years of Ohio service 6548
credit, attained at least age sixty and earned at least thirty 6549
years of Ohio service credit, or attained at least age sixty-five 6550
and earned at least five years of Ohio service credit. The board's 6551
actuary may use an actuarially based average percentage reduction 6552
for purposes of division (B)(2) of this section.6553

       (C) The annual single lifetime benefit of a member determined 6554
under division (B) of this section shall be adjusted by the 6555
greater per cent shown in the following schedule opposite the 6556
member's attained age or Ohio service credit.6557

Years of Per Cent 6558
Attained or Ohio Service of Base 6559
Age Credit Amount 6560
58 25 75% 6561
59 26 80 6562
60 27 85 6563
61 88 6564
28 90 6565
62 91 6566
63 94 6567
29 95 6568
64 97 6569
65 30 or more 100 6570

       Members shall vest the right to a benefit in accordance with 6571
the following schedule, based on the member's attained age by 6572
September 1, 1976:6573

Per Cent 6574
Attained of Base 6575
Age Amount 6576
66 102% 6577
67 104 6578
68 106 6579
69 108 6580
70 or more 110 6581

       TheNotwithstanding divisions (A) and (B) of this section, on 6582
application, a member who, on July 1, 2015, has five or more years 6583
of Ohio service credit and has attained age sixty, has twenty-five 6584
or more years of Ohio service credit and has attained age 6585
fifty-five, or has thirty or more years of Ohio service credit 6586
shall be granted service retirement according to former section 6587
3307.58 of the Revised Code as in effect on that date. The 6588
member's benefit shall be the greater of the amount calculated 6589
under this section or the benefit the member would have been 6590
eligible for under the law in effect on July 1, 2015.6591

       (D) The annual single lifetime benefit determined under 6592
division (B) or (C) of this section shall not exceed the lesser of 6593
one hundred per cent of the final average salary or the limit 6594
established by section 415 of the "Internal Revenue Code of 1986," 6595
100 Stat. 2085, 26 U.S.C.A. 415, as amended.6596

       (D)(E) The annual single lifetime benefit of a member shall 6597
not exceed the lesser of the sum of the following amounts or the 6598
limit established by section 415 of the "Internal Revenue Code of 6599
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended:6600

       (1) An annuity with a reserve equal to the member's 6601
accumulated contributions;6602

       (2) A pension equal to the amount in division (D)(E)(1) of 6603
this section;6604

       (3) An additional pension of forty dollars annually 6605
multiplied by the number of years of prior and military service 6606
credit, except years of credit purchased under section 3307.751 or 6607
3307.752 of the Revised Code;6608

       (4) An additional basic annual pension of one hundred eighty 6609
dollars, provided the member had ten or more years of Ohio service 6610
credit as of October 1, 1956, except that the additional basic 6611
annual pension shall not exceed the sum of the annual benefits 6612
provided by divisions (D)(E)(1), (2), and (3) of this section.6613

       (E)(F) Benefits determined under this section shall be paid 6614
as provided in section 3307.60 of the Revised Code.6615

       Sec. 3307.67.  (A) The state teachers retirement board shall 6616
annually increase each allowance or benefit payable under sections 6617
3307.50 to 3307.79 of the Revised Code by three per cent, except 6618
that noas follows:6619

       (1) Two per cent for each allowance or benefit that begins 6620
not later than July 31, 2011, or is preceded by a disability 6621
allowance granted prior to that date under section 3307.631 of the 6622
Revised Code that has been terminated under division (C)(1) or (3) 6623
of that section;6624

       (2) One and one-half per cent for each allowance or benefit 6625
that begins on or after August 1, 2011.6626

       (B) No allowance or benefit shall exceed the limit 6627
established by section 415 of the "Internal Revenue Code of 1986," 6628
100 Stat. 2085, 26 U.S.C.A. 415, as amended.6629

       (C) The first increase is payable to all persons becoming 6630
eligible after June 30, 1971, upon such persons receiving an 6631
allowance or benefit for twelve months. The increased amount is 6632
payable for the ensuing twelve-month period or until the next 6633
increase is granted under this section, whichever is later. 6634
Subsequent increases shall be determined from the date of the 6635
first increase paid to the former member in the case of an 6636
allowance being paid a beneficiary under an option, or from the 6637
date of the first increase to the survivor first receiving an 6638
allowance or benefit in the case of an allowance or benefit being 6639
paid to the subsequent survivors of the former member.6640

       The date of the first increase under this section becomes the 6641
anniversary date for any future increases.6642

       The allowance or benefit used in the first calculation of an 6643
increase under this section shall remain as the base for all 6644
future increases, unless a new base is established.6645

       (B)(D) If payment of a portion of a benefit is made to an 6646
alternate payee under section 3307.371 of the Revised Code, 6647
increases under this section granted while the order is in effect 6648
shall be apportioned between the alternate payee and the benefit 6649
recipient in the same proportion that the amount being paid to the 6650
alternate payee bears to the amount paid to the benefit recipient.6651

       If payment of a portion of a benefit is made to one or more 6652
beneficiaries under "option 4" under division (A)(4) of section 6653
3307.60 of the Revised Code, each increase under this section 6654
granted while the plan of payment is in effect shall be divided 6655
among the designated beneficiaries in accordance with the portion 6656
each beneficiary has been allocated.6657

       (C)(E) The board shall make all rules necessary to carry out 6658
this section.6659

       Sec. 3309.26.  The membership of any person in the school 6660
employees retirement system shall terminate if the person 6661
withdraws the person's accumulated contributions, retires on a 6662
retirement allowance as provided in sections 3309.36, 3309.38, and 6663
3309.381 of the Revised Code, or dies, unless otherwise provided 6664
in Chapter 3309. of the Revised Code.6665

       A former member with an account in the employees' savings 6666
fund who formerly lost membership shall be reinstated as a member 6667
with all the rights, privileges, and obligations as provided in 6668
Chapter 3309. of the Revised Code.6669

       Except as provided in this section, a member or former member 6670
of the school employees retirement system with at least one and 6671
one-half years of contributing service credit in this system, the 6672
public employees retirement system, the state teachers retirement 6673
system, the Ohio police and fire pension fund, or the state 6674
highway patrol retirement system, subsequent to the withdrawal of 6675
contributions and cancellation of service credit in this system 6676
may restore such service credit by redepositing in the employees' 6677
savings fund the amount withdrawn with interest at a rate to be 6678
determined by the board, compounded annually, from the first of 6679
the month of withdrawal to and including the month of redeposit. A 6680
member may choose to purchase only part of such credit in any one 6681
payment, subject to board rules. The total payment to restore 6682
cancelled service credit, plus any interest credited thereto, 6683
shall be considered as accumulated contributions of the member. If 6684
a former member is eligible to buy the service credit as a member 6685
of the Ohio police and fire pension fund, the state highway patrol 6686
retirement system, or the city of Cincinnati retirement system, 6687
the former member is ineligible to restore that service credit 6688
under this section.6689

       Sec. 3309.312.  (A) Not later than ninety days after 6690
September 16, 1998, a member who, on September 16, 1998, is 6691
employed full time pursuant to section 3345.04 of the Revised Code 6692
by the university of Akron as a state university law enforcement 6693
officer may elect to transfer to the public employees retirement 6694
system in accordance with this section. An election shall be made 6695
by giving notice to the school employees retirement system on a 6696
form provided by the school employees retirement board and shall 6697
be irrevocable.6698

       (B) When a member makes the election described in this 6699
section, the school employees retirement system shall notify the 6700
public employees retirement system. The school employees 6701
retirement system shall transfer all of the member's service 6702
credit to the public employees retirement system and shall certify 6703
to the public employees retirement system a copy of the member's 6704
records of service and contributions. For each year or portion of 6705
a year of credit, the school employees retirement system shall 6706
transfer to the public employees retirement system all of the 6707
following:6708

       (1) An amount equal to the accumulated contributions standing 6709
to the member's credit;6710

       (2) An amount equal to the total employer contributions paid 6711
on behalf of the member;6712

       (3) Any amount paid by the member or employer to the school 6713
employees retirement system for the purchase of service credit.6714

       At the request of the public employees retirement system, the 6715
employer of a member who makes an election under this section 6716
shall certify to the public employees retirement system the 6717
member's salary.6718

       (C) A member who elects to transfer to the public employees 6719
retirement system under this section shall make contributions and 6720
receive benefits in accordance with divisions (B) to (F) of6721
section 145.33145.332 of the Revised Code.6722

       (D) A member who fails to make an election in accordance with 6723
this section shall remain a member of the school employees 6724
retirement system.6725

       Sec. 3309.33. (A) An employer may establish a retirement 6726
incentive plan for its employees who are members of the school 6727
employees retirement system. The plan shall provide for purchase 6728
by the employer of service credit for eligible employees who 6729
choose to participate in the plan and for payment by the employer 6730
of the entire cost of such service credit. A plan established 6731
under this section shall remain in effect until terminated by the 6732
employer, except that, once established, the plan must remain in 6733
effect for at least one year.6734

        (B) ToAn employee who is a member of the school employees 6735
retirement system shall be eligible to participate in a retirement 6736
incentive plan, an employee must meet the following requirements:6737

       (1) Either of the following:6738

       (a) If the employee became a member of the retirement system 6739
before the effective date of this amendment, the member has 6740
attained fifty years of age;6741

       (b) If the employee became a member of the retirement system 6742
on or after the effective date of this amendment,established by 6743
the employer if the employee has attained fifty-fivefifty-seven6744
years of age;6745

       (2) The employeeand agrees to retire and retires under 6746
section 3309.36 of the Revised Code effective within ninety days 6747
after receiving notice from the school employees retirement system 6748
that service credit has been purchased for the employee under this 6749
section.6750

       (C) Participation in the plan shall be available to all 6751
eligible employees except that the employer may limit the number 6752
of persons for whom it purchases credit in any calendar year to a 6753
specified percentage of its employees who are members of the 6754
school employees retirement system on the first day of January of 6755
that year. The percentage shall not be less than five per cent of 6756
such employees. If participation is limited, employees with a 6757
greater length of service with the employer have the right to 6758
elect to have credit purchased before employees with a lesser 6759
length of service with the employer.6760

       (D) The amount of service credit purchased for any 6761
participant shall be uniformly determined but shall not exceed the 6762
lesser of the following:6763

       (1) Five years of service credit;6764

       (2) An amount of service credit equal to one-fifth of the 6765
total service credited to the participant under Chapter 3309. of 6766
the Revised Code.6767

       For each year of service credit purchased under this section, 6768
the employer shall pay an amount specified by the school employees 6769
retirement board equal to the additional liability resulting from 6770
the purchase of that year of service credit as determined by an 6771
actuary employed by the board. Payments shall be made in 6772
accordance with rules adopted by the board, and the board shall 6773
notify each member when the member is credited with service 6774
purchased under this section.6775

       No payment made to the school employees retirement system 6776
under this section shall affect any payment required by section 6777
3309.49 of the Revised Code.6778

       Sec. 3309.34. (A)(1) A member of the school employees 6779
retirement system whose membership began before the effective date 6780
of this amendment is eligible for service retirement if the member 6781
has at least five years of total service credit and has attained 6782
sixty years of age, or if the member has at least thirty years of 6783
total service credit at any age. A member whose membership began 6784
before the effective date of this amendment is eligible for 6785
commuted service retirement if the member has at least twenty-five 6786
years of total service credit and has attained fifty-five years of 6787
age.6788

       (2) A member whose membership began on or after the effective 6789
date of this amendment is eligible for service retirement if the 6790
member meets one of the following requirements:6791

       (a)(1) Has earned at least ten years of total service credit 6792
and has attained sixty-two years of age;6793

       (b)(2) Has earned at least twenty-five years of total service 6794
credit and has attained sixty years of age;6795

       (c)(3) Has earned at least thirty years of total service 6796
credit and has attained fifty-fivefifty-seven years of age.6797

       (B) A member may retire by filing an application for 6798
retirement with the school employees retirement board on a form 6799
provided by the board. The board shall not retire the member 6800
sooner than the first day of the month next following the later 6801
of:6802

       (1) The last day of employment for which compensation was 6803
paid;6804

       (2) The attainment of minimum age and service credit 6805
eligibility for service or commuted service retirement.6806

       (C) At least once every ten years, the board shall direct its 6807
actuary to evaluate the retirement eligibility requirements of 6808
this section.6809

       Sec. 3309.341.  (A) As used in this section and section 6810
3309.344 of the Revised Code:6811

       (1) "SERS retirant" means any person who is receiving a 6812
retirement allowance from the school employees retirement system 6813
under section 3309.36, 3309.38, or 3309.381 or former section 6814
3309.38 of the Revised Code or any benefit paid under a plan 6815
established under section 3309.81 of the Revised Code.6816

       (2) "Other system retirant" means a member or former member 6817
of the public employees retirement system, Ohio police and fire 6818
pension fund, state teachers retirement system, state highway 6819
patrol retirement system, or Cincinnati retirement system who is 6820
receiving age and service or commuted age and service retirement, 6821
or a disability benefit from a system of which the retirant is a 6822
member or former member.6823

       (B)(1) Subject to this section and section 3309.345 of the 6824
Revised Code, an SERS retirant or other system retirant may be 6825
employed by a public employer. If so employed, the SERS retirant 6826
or other system retirant shall contribute to the school employees 6827
retirement system in accordance with section 3309.47 of the 6828
Revised Code, and the employer shall make contributions in 6829
accordance with section 3309.49 of the Revised Code.6830

       (2) An employer that employs an SERS retirant or other system 6831
retirant shall notify the retirement board of the employment not 6832
later than the end of the month in which the employment commences. 6833
On receipt of notice from an employer that a person who is an 6834
other system retirant has been employed, the school employees 6835
retirement system shall notify the state retirement system of 6836
which the other system retirant was a member of such employment.6837

       (C) An SERS retirant or other system retirant who has 6838
received a retirement allowance or disability benefit for less 6839
than two months when employment subject to this section commences 6840
shall forfeit the retirement allowance or disability benefit for 6841
any month the SERS retirant or other system retirant is employed 6842
prior to the expiration of the two-month period. Service and 6843
contributions for that period shall not be included in the 6844
calculation of any benefits payable to the SERS retirant or other 6845
system retirant, and those contributions shall be refunded on 6846
death or termination of the employment. Contributions made on 6847
compensation earned after the expiration of such period shall be 6848
used in the calculation of the benefit or payment due under 6849
section 3309.344 of the Revised Code.6850

       (D) On receipt of notice from the Ohio police and fire 6851
pension fund, public employees retirement system, or state 6852
teachers retirement system of the re-employment of an SERS 6853
retirant, the school employees retirement system shall not pay, or 6854
if paid shall recover, the amount to be forfeited by the SERS 6855
retirant in accordance with section 145.38, 742.26, or 3307.35 of 6856
the Revised Code.6857

       (E) An SERS retirant or other system retirant subject to this 6858
section is not a member of the school employees retirement system; 6859
does not have any of the rights, privileges, or obligations of 6860
membership, except as specified in this section; and is not 6861
eligible to receive health, medical, hospital, or surgical 6862
benefits under section 3309.69 of the Revised Code for employment 6863
subject to this section.6864

       (F) If the disability benefit of an other system retirant 6865
employed under this section is terminated, the retirant shall 6866
become a member of the school employees retirement system, 6867
effective on the first day of the month next following the 6868
termination, with all the rights, privileges, and obligations of 6869
membership. If the retirant, after the termination of the 6870
disability benefit, earns two years of service credit under this 6871
retirement system or under the public employees retirement system, 6872
Ohio police and fire pension fund, state teachers retirement 6873
system, or state highway patrol retirement system, the retirant's 6874
prior contributions as an other system retirant under this section 6875
shall be included in the retirant's total service credit as a 6876
school employees retirement system member, and the retirant shall 6877
forfeit all rights and benefits of this section. Not more than one 6878
year of credit may be given for any period of twelve months.6879

       (G) This section does not affect the receipt of benefits by 6880
or eligibility for benefits of any person who on August 29, 1976, 6881
was receiving a disability benefit or service retirement pension 6882
or allowance from a state or municipal retirement system in Ohio 6883
and was a member of any other state or municipal retirement system 6884
of this state.6885

       (H) The school employees retirement board may adopt rules to 6886
carry out this section.6887

       Sec. 3309.343.  (A) As used in this section:6888

       (1) In addition to the meaning in section 3309.01 of the 6889
Revised Code, when appropriate "compensation" has the same meaning 6890
as in section 3307.01 of the Revised Code.6891

       (2) "Earnable salary" has the same meaning as in section 6892
145.01 of the Revised Code.6893

       (3) "SERS position" means a position for which a member of 6894
the school employees retirement system is making contributions to 6895
the system.6896

       (4) "Other state retirement system" means the public 6897
employees retirement system or the state teachers retirement 6898
system.6899

       (5) "State retirement system" means the public employees 6900
retirement system, state teachers retirement system, or the school 6901
employees retirement system.6902

       (B)(1) A member of the school employees retirement system who 6903
holds two or more SERS positions may retire under section 3309.35, 6904
3309.36, 3309.38, or 3309.46 of the Revised Code from the position 6905
for which the annual compensation at the time of retirement is 6906
highest and continue to contribute to the retirement system for 6907
the other SERS position or positions.6908

       (2) A member of the school employees retirement system who 6909
also holds one or more other positions covered by the other state 6910
retirement systems may retire under section 3309.35, 3309.36,6911
3309.38, or 3309.46 of the Revised Code from the SERS position and 6912
continue contributing to the other state retirement systems if the 6913
annual compensation for the SERS position at the time of 6914
retirement is greater than annual compensation or earnable salary 6915
for the position, or any of the positions, covered by the other 6916
state retirement systems.6917

       (3) A member of the school employees retirement system who 6918
holds two or more SERS positions and at least one other position 6919
covered by one of the other state retirement systems may retire 6920
under section 3309.35, 3309.36, 3309.38, or 3309.46 of the Revised 6921
Code from one of the SERS positions and continue contributing to 6922
the school employees retirement system and the other state 6923
retirement system if the annual compensation for the SERS position 6924
from which the member is retiring is, at the time of retirement, 6925
greater than the annual compensation or earnable salary for any of 6926
the positions for which the member is continuing to make 6927
contributions.6928

       (4) A member of the school employees retirement system who 6929
has retired as provided in division (B)(2) or (3) of section 6930
145.383 or division (B)(2) or (3) of section 3307.351 of the 6931
Revised Code may continue to contribute to the school employees 6932
retirement system for an SERS position if the member held the 6933
position at the time of retirement from the other state retirement 6934
system.6935

       (5) A member who contributes to the school employees 6936
retirement system in accordance with division (B)(1), (3), or (4) 6937
of this section shall contribute in accordance with section 6938
3309.47 of the Revised Code. The member's employer shall 6939
contribute as provided in section 3309.49 of the Revised Code. 6940
Neither the member nor the member's survivors are eligible for any 6941
benefits based on those contributions other than those provided 6942
under section 145.384, 3307.352, or 3309.344 of the Revised Code.6943

       (C)(1) In determining retirement eligibility and the annual 6944
retirement allowance of a member who retires as provided in 6945
division (B)(1), (2), or (3) of this section, the following shall 6946
be used to the date of retirement:6947

       (a) The member's earnable salary and compensation for all 6948
positions covered by a state retirement system;6949

       (b) Total service credit in any state retirement system, 6950
except that the credit shall not exceed one year of credit for any 6951
period of twelve months;6952

       (c) The member's accumulated contributions.6953

       (2) A member who retires as provided in division (B)(1), (2), 6954
or (3) of this section is a retirant for all purposes of this 6955
chapter, except that the member is not subject to section 3309.341 6956
of the Revised Code for a position or positions for which 6957
contributions continue under those divisions or division (B)(4) of 6958
this section.6959

       (D) A retired member receiving a benefit under section 6960
3309.344 of the Revised Code based on employment subject to this 6961
section is not a member of the school employees retirement system 6962
and does not have any rights, privileges, or obligations of 6963
membership. The retired member is an SERS retirant for purposes of 6964
section 3309.341 of the Revised Code.6965

       (E) The school employees retirement board may adopt rules to 6966
carry out this section.6967

       Sec. 3309.353.  As used in this section, "benefit" means any 6968
allowance, pension, or other benefit to which an individual is 6969
entitled and that hethe individual receives pursuant to section 6970
3309.36, 3309.38, 3309.40, 3309.45, or 3309.46 or former section 6971
3309.38 of the Revised Code.6972

       The annual amount of each benefit for which eligibility was 6973
established prior to February 1, 1983, shall, after the adjustment 6974
required by section 3309.374 of the Revised Code, be increased by 6975
five per cent.6976

       Sec. 3309.354.  As used in this section, "benefit" means any 6977
allowance, pension, or other benefit to which an individual is 6978
entitled and that he receives pursuant to section 3309.35, 6979
3309.36, 3309.38, 3309.40, 3309.45, or 3309.46 or former section 6980
3309.38 of the Revised Code.6981

       Effective the first day of the month following the effective 6982
date of this sectionSeptember 9, 1988, the annual amount of 6983
benefits shall be increased as follows:6984

       (A) The annual amount of each benefit for which eligibility 6985
was established prior to February 1, 1983, shall, after all 6986
adjustments required by this chapter, be increased by two per 6987
cent;6988

       (B) The annual amount of each benefit for which eligibility 6989
was established on or after February 1, 1983, but prior to the 6990
effective date of this sectionSeptember 9, 1988, shall, after all 6991
adjustments required by this chapter, be increased by five per 6992
cent.6993

       Sec. 3309.36.  (A)(1) A member of the school employees 6994
retirement system whose membership began before the effective date 6995
of this amendment who retires on service retirement shall be 6996
granted a retirement allowance consisting of the lesser of the sum 6997
of the following amounts or the limit established by section 415 6998
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 6999
415, as amended:7000

       (a)(1) An annuity having a reserve equal to the amount of the 7001
employee's accumulated contributions at that time;7002

       (b)(2) A pension of equivalent amount;7003

       (c) An additional pension of forty dollars multiplied by the 7004
number of years of such prior service credit;7005

       (d)(3) For members who have ten or more years of service 7006
credit accumulated prior to October 1, 1956, a basic annual 7007
pension equal to one hundred eighty dollars, except that such 7008
basic annual pension shall not exceed the sum of the total annual 7009
benefits provided by divisions (A)(1),and (2), and (3) of this 7010
section.7011

       (2) A member whose membership began on or after the effective 7012
date of this amendment who retires on service retirement shall be 7013
granted a retirement allowance consisting of the lesser of the sum 7014
of the following amounts or the limit established by section 415 7015
of the "Internal Revenue Code of 1986":7016

       (a) An annuity having a reserve equal to the amount of the 7017
employee's accumulated contributions at that time;7018

       (b) A pension of equivalent amount.7019

       (B)(1) When a member retires on service retirement, the 7020
member's allowance when computed as an annual single lifetime 7021
allowance as provided in divisionsdivision (A)(1) and (2) of this 7022
section and section 3309.38 of the Revised Code, based upon 7023
attained age sixty-fivesixty-seven or thirty years of total 7024
service credit, shall be not less than the greater of the amounts 7025
determined by multiplying the member's total service credit by the 7026
following:7027

       (a) Eighty-six dollars;7028

       (b) Two and two-tenths per cent of the member's final average 7029
salary for each of the first thirty years of service credit or 7030
fraction thereof plus two and one-half per cent of the member's 7031
final average salary for each subsequent year of service credit or 7032
fraction thereof.7033

       (2) For a member whose membership began before the effective 7034
date of this amendment, the annual single lifetime allowance 7035
determined under division (B)(1) of this section shall be adjusted 7036
by the greater percentage shown in the following schedule opposite 7037
the member's attained age or years of Ohio service credit:7038

Years of Per Cent 7039
Attained or Ohio Service of 7040
Age Credit Base Amount 7041
58 25 75% 7042
59 26 80 7043
60 27 85 7044
61 88 7045
28 90 7046
62 91 7047
63 94 7048
29 95 7049
64 97 7050
65 30 or more 100 7051

For a member whose membership began before the effective date of 7052
this amendment, the right to a benefit shall vest in accordance 7053
with the following schedule, based on the member's attained age by 7054
September 1, 1976:7055

Per Cent 7056
Attained of 7057
Age Base Amount 7058
66 102 7059
67 104 7060
68 106 7061
69 108 7062
70 or more 110 7063

       (3) For a member whose membership began on or after the 7064
effective date of this amendment, theThe annual single lifetime 7065
allowance determined under division (B)(1) of this section shall 7066
be adjusted to be the actuarial equivalent of the member's 7067
retirement allowance, as determined by the retirement board's 7068
actuary, had the member retired at age sixty-fivesixty-seven or 7069
with thirty years of service credit, except that the retirement 7070
allowance shall not be less than the following:7071

Per Cent 7072
Years of Service of 7073
Credit Base Amount 7074
25 75% 7075
26 80 7076
27 85 7077
28 90 7078
29 95 7079

       (4)(3) The annual single lifetime allowance which a retirant 7080
shall receive under this division shall not exceed the lesser of 7081
one hundred per cent of the member's final average salary or the 7082
limit established by section 415 of the "Internal Revenue Code of 7083
1986," 100 Stat. 2085, 26 U.S.C.A. 415, as amended.7084

       (C) Retirement allowances determined under this section shall 7085
be paid as provided in section 3309.46 of the Revised Code.7086

       (D) At least once every ten years, the school employees 7087
retirement board shall direct its actuary to evaluate the 7088
actuarial equivalents in division (B)(3)(2) of this section to 7089
determine their appropriateness. The board may adjust the 7090
actuarial equivalents in accordance with the actuary's 7091
recommendations.7092

       Sec. 3309.362.  As used in this section, "benefit" means any 7093
allowance, pension, or other benefit to which an individual is 7094
entitled and that hethe individual receives under section 7095
3309.35, 3309.36, 3309.38, 3309.40, 3309.45, or 3309.46 or former 7096
section 3309.38 of the Revised Code.7097

       Effective July 1, 1981:7098

       (A) The annual amount of each benefit for which eligibility 7099
was established prior to January 1, 1977, shall, after the 7100
adjustment required by section 3309.374 of the Revised Code, be 7101
increased by six per cent or six hundred dollars, whichever is 7102
less.7103

       (B) The annual amount of each benefit for which eligibility 7104
was established on or after January 1, 1977, but prior to January 7105
1, 1980, shall, after the adjustment required by section 3309.374 7106
of the Revised Code, be increased by four per cent or four hundred 7107
dollars, whichever is less.7108

       Sec. 3309.371.  On and after October 1, 1957, all persons in 7109
receipt of, or who are or become eligible to receive, a monthly 7110
allowance, pension, or other benefit effective prior to June 29, 7111
1955, which is payable or becomes payable pursuant to sections 7112
3309.36 to 3309.383309.3712, 3309.40, and 3309.65 and former 7113
section 3309.38 of the Revised Code, or an allowance payable at 7114
any time under an option elected by a member and effective prior 7115
to that date, shall be paid an increased allowance, pension, or 7116
benefit as follows:7117

       (A) An amount determined by increasing the original 7118
allowance, pension, or benefit by the following percentages as 7119
determined by the calendar year in which the allowance, pension, 7120
or benefit became effective:7121

Calendar Year Per Cent 7122
Effective of Increase 7123
1937 - 1939 100 7124
1940 94 7125
1941 89 7126
1942 77 7127
1943 70 7128
1944 68 7129
1945 66 7130
1946 55 7131
1947 35 7132
1948 23 7133
1949 25 7134
1950 23 7135
1951 8 7136
1952 4 7137
1953 3 7138
1954 2 7139
Prior to June 29, 1955 2 7140

       (B) If the amount of any such allowance, pension, or other 7141
benefit is increased by division (A) of this section to an amount 7142
less than one hundred ten per cent of the present amount payable 7143
immediately prior to October 1, 1957, such present amount shall be 7144
increased by ten per cent.7145

       (C) On and after August 1, 1959, the monthly allowance, 7146
pension, or other benefit effective prior to June 29, 1955, 7147
(exclusive of any amount receivable monthly by reason of a 7148
voluntary deposit made for additional annuity), together with the 7149
supplemental allowance payable pursuant to divisions (A) and (B) 7150
of this section, shall be increased by twelve per cent.7151

       Sec. 3309.373.  (A) On and after July 1, 1968, all 7152
allowances, pensions, or other benefits, which are payable or 7153
become payable and for which eligibility is established prior to 7154
July 1, 1968, pursuant to sections 3309.35, 3309.36, 3309.38,7155
3309.40, 3309.45, and 3309.46 and former section 3309.38 of the 7156
Revised Code shall be increased by the percentages as determined 7157
by the effective date of the allowance, pension, or benefit as 7158
follows:7159

Effective Date of Benefit Percentage of 7160
Calendar Year Increase 7161
1937 through 1955 24.3 7162
1956 22.5 7163
1957 18.4 7164
1958 15.2 7165
1959 14.3 7166
1960 12.5 7167
1961 11.3 7168
1962 10.1 7169
1963 8.7 7170
1964 7.3 7171
1965 5.6 7172
1966 2.6 7173
1967 2.0 7174
January 1, 1968 through June 30, 1968 2.0 7175

       (B)(1) All increases as determined by applying the 7176
percentages in the table in division (A) of this section shall be 7177
reduced by the dollar amount of the increases granted in 1965 7178
pursuant to section 3309.372 of the Revised Code, except that no 7179
allowance, pension, or benefit shall be reduced below the amount 7180
due June 30, 1968 and no allowance granted under this section 7181
shall be less than a total annual sum of thirty-six dollars.7182

       (2) The allowances increased by division (A) of this section 7183
shall exclude any monthly amount payable by reason of any 7184
voluntary deposits made under section 3309.47 of the Revised Code.7185

       (3) The increases provided by this section shall be granted 7186
notwithstanding the final average salary limitation in sections 7187
3309.36, 3309.40, and 3309.45 of the Revised Code.7188

       (4) The cost of the increases provided by this section shall 7189
be included in the employer contribution rate provided by section 7190
3309.49 of the Revised Code. Such employer's contribution rate 7191
shall not be increased until July 1, 1969 or later to reflect the 7192
increased costs created by this section.7193

       Sec. 3309.376.  On and after December 31, 1971, all persons 7194
who retired and were eligible to receive a pension that was 7195
payable prior to July 1, 1968, pursuant to section 3309.36, 7196
3309.38, or 3309.40 or former section 3309.38 of the Revised Code, 7197
or in the event of the death of such persons, the person 7198
designated by the deceased to receive payments under section 7199
3309.46 of the Revised Code, shall receive an additional monthly 7200
payment of two dollars for each year between the member's 7201
effective date of retirement or disability and December 31, 1971, 7202
or an additional fifty dollars, whichever is less.7203

       Sec. 3309.379.  (A) On and after the first day of the month 7204
following the effective date of this section, each person eligible 7205
to receive an allowance, pension, or benefit, pursuant to sections 7206
3309.35, 3309.36, 3309.38, 3309.40, division (A) of section 7207
3309.45, and section 3309.46 and former section 3309.38 of the 7208
Revised Code, that was based upon an award made effective before 7209
June 30, 1955, shall have the allowance, pension, or benefit 7210
payable as of September 30, 1974, recalculated by the school 7211
employees retirement board so that each such person shall receive 7212
an annual single lifetime allowance, pension, or benefit or its 7213
actuarial equivalent of not less than one hundred forty dollars 7214
for each year of the member's total service credit, except that 7215
service credit exceeding thirty-two years shall not be used in the 7216
recalculation, and a final average salary limitation shall not be 7217
applied.7218

       If the amount of the allowance, pension, or benefit 7219
recalculated under this division is less than the amount that is 7220
payable on the effective date of this section, then the greater 7221
allowance, pension, or benefit shall be continued.7222

       (B) On and after the first day of the month following the 7223
effective date of this section, each person receiving an 7224
allowance, pension, or benefit, pursuant to sections 3309.35, 7225
3309.36, 3309.38, 3309.40, division (A) of section 3309.45, and 7226
section 3309.46 and former section 3309.38 of the Revised Code, 7227
that was first effective on and after June 30, 1955, through June 7228
30, 1971, shall be paid an increased allowance, pension, or 7229
benefit as follows:7230

Effective Date of the Member's 7231
Allowance, Pension, or Benefit: Per Cent of Increase: 7232
June 30, 1955 through June 29, 1959 33 7233
June 30, 1959, through October 31, 1965 21 7234
November 1, 1965, through June 30, 1968 14 7235
July 1, 1968, through June 30, 1971  5 7236

       The increase shall be applied to the allowance, pension, or 7237
benefit payable on the effective date of this section.7238

       (C) On and after the first day of the month following the 7239
effective date of this section, each person receiving or qualified 7240
to receive an allowance, pension, or benefit, pursuant to division 7241
(B) of section 3309.45 of the Revised Code, that was effective on 7242
and after June 14, 1951, through August 26, 1970, shall receive an 7243
increase in such allowance, pension, or benefit in the amount of 7244
twenty per cent.7245

       Sec. 3309.3710.  (A) Effective July 1, 1981, each person 7246
eligible to receive an allowance, pension, or benefit pursuant to 7247
sections 3309.35, 3309.36, 3309.38, 3309.40, division (A) of 7248
section 3309.45, and section 3309.46 and former section 3309.38 of 7249
the Revised Code that was based upon an award made effective 7250
before July 1, 1974, shall have the person's monthly allowance, 7251
pension, or benefit increased by five per cent, except that the 7252
twelve-month sum of such increases shall not exceed five per cent 7253
of the first five thousand dollars of the annual allowance, 7254
pension, or benefit.7255

       (B) Effective July 1, 1981, each person receiving or 7256
qualified to receive a benefit, pursuant to division (B) of 7257
section 3309.45 of the Revised Code, that was effective on and 7258
after June 14, 1951, through August 26, 1970, shall receive an 7259
increase in such benefit of five per cent.7260

       (C) The increases provided in divisions (A) and (B) of this 7261
section shall be applied to the benefit payable on and after July 7262
1, 1981.7263

       (D) The increase in the monthly allowance, pension, or 7264
benefit provided in divisions (A) and (B) of this section shall be 7265
included in the calculation of additional benefits to recipients 7266
under section 3309.374 of the Revised Code.7267

       (E) The benefits provided in divisions (A) and (B) of this 7268
section are a continuation of those first provided in Am. Sub. 7269
H.B. 204 as passed by the 113th general assembly.7270

       Sec. 3309.3711.  Whenever the limits established by section 7271
415 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 7272
U.S.C.A. 415, as amended, are raised, the school employees 7273
retirement board shall increase the amount of the pension, 7274
benefit, or allowance of any person whose pension, benefit, or 7275
allowance payable under section 3309.36, 3309.374, 3309.38,7276
3309.381, 3309.40, or 3309.401 or former section 3309.38 of the 7277
Revised Code was limited by the application of section 415. The 7278
amount of the increased pension, benefit, or allowance shall not 7279
exceed the lesser of the amount the person would have received if 7280
the limits established by section 415 had not been applied or the 7281
amount the person is eligible to receive subject to the new limits 7282
established by section 415.7283

       Sec. 3309.39.  (A) The school employees retirement system 7284
shall provide disability coverage to each member who has at least 7285
five years of total service credit.7286

       Not later than October 16, 1992, the school employees 7287
retirement board shall give each person who is a member on July 7288
29, 1992, the opportunity to elect disability coverage either 7289
under section 3309.40 of the Revised Code or under section 7290
3309.401 of the Revised Code. The board shall mail notice of the 7291
election, accompanied by an explanation of the coverage under each 7292
of the Revised Code sections and a form on which the election is 7293
to be made, to each member at the member's last known address. The 7294
board shall also provide the explanation and form to any member at 7295
the member's request.7296

       Regardless of whether the member actually receives notice of 7297
the right to make an election, a member who fails to file a valid 7298
election under this section shall be considered to have elected 7299
disability coverage under section 3309.40 of the Revised Code. To 7300
be valid, an election must be made on the form provided by the 7301
retirement board, signed by the member, and filed with the board 7302
not later than one hundred eighty days after the date the notice 7303
was mailed, or, in the case of a form provided at the request of a 7304
member, a date specified by rule of the retirement board. Once 7305
made, an election is irrevocable, but if the member ceases to be a 7306
member of the retirement system, the election is void. If a person 7307
who makes an election under this section also makes an election 7308
under section 145.35 or 3307.62 of the Revised Code, the election 7309
made for the system that pays a disability benefit to that person 7310
shall govern the benefit.7311

       Disability coverage shall be provided under section 3309.401 7312
of the Revised Code for persons who become members after July 29, 7313
1992, and for members who elect under this division to be covered 7314
under section 3309.401 of the Revised Code.7315

       The retirement board may adopt rules governing elections made 7316
under this division.7317

       (B) Application for a disability benefit may be made by a 7318
member, by a person acting in the member's behalf, or by the 7319
member's employer, provided the member has at least five years of 7320
total service credit and has disability coverage under section 7321
3309.40 or 3309.401 of the Revised Code. The application for a 7322
disability benefit shall be made on a form provided by the 7323
retirement board. The benefit payable to any member who is 7324
approved for a disability benefit shall become effective on the 7325
first day of the month next following the later of the following:7326

       (1) The last day for which compensation was paid;7327

       (2) The date on which the member was first incapacitated by 7328
the disabling condition.7329

       (C) Medical examination of a member who has applied for a 7330
disability benefit shall be conducted by a competent disinterested 7331
physician or physicians selected by the retirement board to 7332
determine whether the member is mentally or physically 7333
incapacitated for the performance of the member's last assigned 7334
primary duty as an employee by a disabling condition either 7335
permanent or presumed to be permanent for twelve continuous months 7336
following the filing of an application. Such disability must have 7337
occurred since last becoming a member or have increased since last 7338
becoming a member to such extent as to make the disability 7339
permanent or presumed to be permanent for twelve continuous months 7340
following the filing of an application.7341

       (D) Application for a disability benefit must be made within 7342
two years from the date the member's contributing service 7343
terminated, unless the retirement board determines that the 7344
member's medical records demonstrate conclusively that at the time 7345
the two-year period expired, the member was physically or mentally 7346
incapacitated for duty as an employee and unable to make 7347
application. Application may not be made by any person receiving a 7348
service retirement allowance or commuted service retirement 7349
allowance under section 3309.36, 3309.38, or 3309.381 or former 7350
section 3309.38 of the Revised Code or any person who, pursuant to 7351
section 3309.42 of the Revised Code, has been paid the accumulated 7352
contributions standing to the credit of the person's individual 7353
account in the employees' savings fund.7354

       (E) If the physician or physicians determine that the member 7355
qualifies for a disability benefit, the retirement board concurs 7356
with the determination, and the member agrees to medical treatment 7357
as specified in division (F) of this section, the member shall 7358
receive a disability benefit under section 3309.40 or 3309.401 of 7359
the Revised Code. The action of the board shall be final. At the 7360
time the board decides it concurs with the determination of the 7361
physician or physicians, the board shall determine the date on 7362
which the member was first incapacitated by the disabling 7363
condition.7364

       (F) The school employees retirement board shall adopt rules 7365
requiring a disability benefit recipient, as a condition of 7366
continuing to receive a disability benefit, to agree in writing to 7367
obtain any medical treatment recommended by the board's physician 7368
and submit medical reports regarding the treatment. If the board 7369
determines that a disability benefit recipient is not obtaining 7370
the medical treatment or the board does not receive a required 7371
medical report, the disability benefit shall be suspended until 7372
the treatment is obtained, the report is received by the board, or 7373
the board's physician certifies that the treatment is no longer 7374
helpful or advisable. Should the recipient's failure to obtain 7375
treatment or submit a medical report continue for one year, the 7376
recipient's right to the disability benefit shall be terminated as 7377
of the effective date of the original suspension.7378

       (G) In the event an employer files an application for a 7379
disability benefit as a result of a member having been separated 7380
from service because the member is considered to be mentally or 7381
physically incapacitated for the performance of the member's last 7382
assigned primary duty as an employee, and the physician or 7383
physicians selected by the board report to the board that the 7384
member is physically and mentally capable of performing service 7385
similar to that from which the member was separated, and the board 7386
concurs in such report, then the board shall so certify to the 7387
employer and the employer shall restore the member to the member's 7388
previous position and salary or to a similar position and salary.7389

       Sec. 3309.401.  (A) A member with disability coverage under 7390
this section who is determined by the school employees retirement 7391
board under section 3309.39 of the Revised Code to qualify for a 7392
disability benefit shall receive a disability allowance under this 7393
section. The allowance shall be an annual amount equal to the 7394
greater of the following:7395

       (1) Forty-five per cent of the member's final average salary;7396

       (2) The member's total service credit multiplied by two and 7397
two-tenths per cent of the member's final average salary, not 7398
exceeding sixty per cent of the member's final average salary.7399

       (B) Sufficient reserves for payment of the disability 7400
allowance shall be transferred to the annuity and pension reserve 7401
fund from the employers' accumulation fund. The accumulated 7402
contributions of the member shall remain in the employees' savings 7403
fund. No part of the allowance paid under this section shall be 7404
charged against the member's accumulated contributions.7405

       (C) A disability allowance paid under this section shall 7406
terminate at the earliest of the following:7407

       (1) The effective date of service retirement under section 7408
3309.35,or 3309.36, or 3309.38 of the Revised Code;7409

       (2) The date the allowance is terminated under section 7410
3309.41 of the Revised Code;7411

       (3) The later of the last day of the month in which the 7412
recipient attains age sixty-five, or the last day of the month in 7413
which the benefit period ends as follows:7414

Attained Age at Effective Date 7415
of Disability Allowance Benefit Period 7416

60 or 61 60 months 7417
62 or 63 48 months 7418
64 or 65 36 months 7419
66, 67, or 68 24 months 7420
69 or older 12 months 7421

       Sec. 3309.45.  Except as provided in division (C)(1) of this 7422
section, in lieu of accepting the payment of the accumulated 7423
account of a member who dies before service retirement, the 7424
beneficiary, as determined in section 3309.44 of the Revised Code, 7425
may elect to forfeit the accumulated account and to substitute 7426
certain other benefits either under division (A) or (B) of this 7427
section.7428

       (A)(1) If a deceased member was eligible for a service 7429
retirement allowance as provided in section 3309.36, 3309.38, or 7430
3309.381 of the Revised Code, a surviving spouse or other sole 7431
dependent beneficiary may elect to receive a monthly benefit 7432
computed as the joint-survivor allowance designated as "plan D" in 7433
section 3309.46 of the Revised Code, which the member would have 7434
received had the member retired on the last day of the month of 7435
death and had the member at that time selected such joint-survivor 7436
plan. Payment shall begin with the month subsequent to the 7437
member's death.7438

       (2) Beginning on a date selected by the school employees 7439
retirement board, which shall be not later than July 1, 2004, a 7440
surviving spouse or other sole dependent beneficiary may elect, in 7441
lieu of a monthly payment under division (A)(1) of this section, a 7442
plan of payment consisting of both of the following:7443

       (a) A lump sum in an amount the surviving spouse or other 7444
sole dependent beneficiary designates that constitutes a portion 7445
of the allowance that would be payable under division (A)(1) of 7446
this section;7447

       (b) The remainder of that allowance in monthly payments.7448

       The total amount paid as a lump sum and a monthly benefit 7449
shall be the actuarial equivalent of the amount that would have 7450
been paid had the lump sum not been selected.7451

       The lump sum amount designated by the surviving spouse or 7452
other sole dependent beneficiary under division (A)(2)(a) of this 7453
section shall be not less than six times and not more than 7454
thirty-six times the monthly amount that would be payable to the 7455
surviving spouse or other sole dependent beneficiary under 7456
division (A)(1) of this section and shall not result in a monthly 7457
benefit that is less than fifty per cent of that monthly amount.7458

       (B) If the deceased member had completed at least one and 7459
one-half years of credit for Ohio service, with at least 7460
one-quarter year of Ohio contributing service credit within the 7461
two and one-half years prior to the date of death, or was 7462
receiving at the time of death a disability benefit as provided in 7463
section 3309.40 or 3309.401 of the Revised Code, qualified 7464
survivors who elect to receive monthly benefits shall receive the 7465
greater of the benefits provided in division (B)(1)(a) or (b) as 7466
allocated in accordance with division (B)(5) of this section.7467

(1)(a) Number Or 7468
of Qualified Monthly 7469
survivors Annual Benefit as a Per Benefit 7470
affecting Cent of Decedent's Final shall not be 7471
the benefit Average Salary less than 7472

1 25% $96 7473
2 40 186 7474
3 50 236 7475
4 55 236 7476
5 or more 60 236 7477

(b) Years of Service Annual Benefit as a Per Cent of Member's Final Average Salary 7478

20 29% 7479
21 33 7480
22 37 7481
23 41 7482
24 45 7483
25 48 7484
26 51 7485
27 54 7486
28 57 7487
29 or more 60 7488

       (2) Benefits shall begin as qualified survivors meet 7489
eligibility requirements as follows:7490

       (a) A qualified spouse is the surviving spouse of the 7491
deceased member who is age sixty-two, or regardless of age if the 7492
deceased member had ten or more years of Ohio service credit, or 7493
regardless of age if caring for a surviving child, or regardless 7494
of age if adjudged physically or mentally incompetent.7495

       (b) A qualified child is any child of the deceased member who 7496
has never been married and to whom one of the following applies:7497

       (i) Is under age eighteen, or under age twenty-two if the 7498
child is attending an institution of learning or training pursuant 7499
to a program designed to complete in each school year the 7500
equivalent of at least two-thirds of the full-time curriculum 7501
requirements of such institution and as further determined by 7502
board policy;7503

       (ii) Regardless of age, is adjudged physically or mentally 7504
incompetent if the incompetence existed prior to the member's 7505
death and prior to the child attaining age eighteen, or age 7506
twenty-two if attending an institution described in division 7507
(B)(2)(b)(i) of this section.7508

       (c) A qualified parent is a dependent parent aged sixty-five 7509
or older.7510

       (3) "Physically or mentally incompetent" as used in this 7511
section may be determined by a court of jurisdiction, or by a 7512
physician appointed by the retirement board. Incapability of 7513
earning a living because of a physically or mentally disabling 7514
condition shall meet the qualifications of this division.7515

       (4) Benefits to a qualified survivor shall terminate upon a 7516
first marriage, abandonment, adoption, or during active military 7517
service. Benefits to a deceased member's surviving spouse that 7518
were terminated under a former version of this section that 7519
required termination due to remarriage and were not resumed prior 7520
to September 16, 1998, shall resume on the first day of the month 7521
immediately following receipt by the board of an application on a 7522
form provided by the board.7523

       Upon the death of any subsequent spouse who was a member of 7524
the public employees retirement system, state teachers retirement 7525
system, or school employees retirement system, the surviving 7526
spouse of such member may elect to continue receiving benefits 7527
under this division, or to receive survivor's benefits, based upon 7528
the subsequent spouse's membership in one or more of the systems, 7529
for which such surviving spouse is eligible under this section or 7530
section 145.45 or 3307.66 of the Revised Code. If the surviving 7531
spouse elects to continue receiving benefits under this division, 7532
such election shall not preclude the payment of benefits under 7533
this division to any other qualified survivor.7534

       Benefits shall begin or resume on the first day of the month 7535
following the attainment of eligibility and shall terminate on the 7536
first day of the month following loss of eligibility.7537

       (5)(a) If a benefit is payable under division (B)(1)(a) of 7538
this section, benefits to a qualified spouse shall be paid in the 7539
amount determined for the first qualifying survivor in division 7540
(B)(1)(a) of this section, but shall not be less than one hundred 7541
six dollars per month if the deceased member had ten or more years 7542
of Ohio service credit. All other qualifying survivors shall share 7543
equally in the benefit or remaining portion thereof.7544

       (b) All qualifying survivors shall share equally in a benefit 7545
payable under division (B)(1)(b) of this section, except that if 7546
there is a surviving spouse, the surviving spouse shall receive no 7547
less than the greater of the amount determined for the first 7548
qualifying survivor in division (B)(1)(a) of this section or one 7549
hundred six dollars per month.7550

       (6) The beneficiary of a member who is also a member of the 7551
public employees retirement system, or of the state teachers 7552
retirement system, must forfeit the member's accumulated 7553
contributions in those systems, if the beneficiary takes a 7554
survivor benefit. Such benefit shall be exclusively governed by 7555
section 3309.35 of the Revised Code.7556

       (C)(1) Regardless of whether the member is survived by a 7557
spouse or designated beneficiary, if the school employees 7558
retirement system receives notice that a deceased member described 7559
in division (A) or (B) of this section has one or more qualified 7560
children, all persons who are qualified survivors under division 7561
(B) of this section shall receive monthly benefits as provided in 7562
division (B) of this section.7563

       If, after determining the monthly benefits to be paid under 7564
division (B) of this section, the system receives notice that 7565
there is a qualified survivor who was not considered when the 7566
determination was made, the system shall, notwithstanding section 7567
3309.661 of the Revised Code, recalculate the monthly benefits 7568
with that qualified survivor included, even if the benefits to 7569
qualified survivors already receiving benefits are reduced as a 7570
result. The benefits shall be calculated as if the qualified 7571
survivor who is the subject of the notice became eligible on the 7572
date the notice was received and shall be paid to qualified 7573
survivors effective on the first day of the first month following 7574
the system's receipt of the notice.7575

       If the retirement system did not receive notice that a 7576
deceased member has one or more qualified children prior to making 7577
payment under section 3309.44 of the Revised Code to a beneficiary 7578
as determined by the retirement system, the payment is a full 7579
discharge and release of the system from any future claims under 7580
this section or section 3309.44 of the Revised Code.7581

       (2) If benefits under division (C)(1) of this section to all 7582
persons, or to all persons other than a surviving spouse or other 7583
sole beneficiary, terminate, there are no children under the age 7584
of twenty-two years, and the surviving spouse or beneficiary 7585
qualifies for benefits under division (A) of this section, the 7586
surviving spouse or beneficiary may elect to receive benefits 7587
under division (A) of this section. Benefits shall be effective on 7588
the first day of the month following receipt by the board of an 7589
application for benefits under division (A) of this section.7590

       (D) The final average salary used in the calculation of a 7591
benefit payable pursuant to division (A) or (B) of this section to 7592
a survivor or beneficiary of a disability benefit recipient shall 7593
be adjusted for each year between the disability benefit's 7594
effective date and the recipient's date of death by the lesser of 7595
three per cent or the actual average percentage increase in the 7596
consumer price index prepared by the United States bureau of labor 7597
statistics (U.S. City Average for Urban Wage Earners and Clerical 7598
Workers: "All Items 1982-84=100").7599

       (E) If the survivor benefits due and paid under this section 7600
are in a total amount less than the member's accumulated account 7601
that was transferred from the employees' savings fund, the state 7602
teachers retirement fund, and the public employees retirement fund 7603
to the survivors' benefit fund, then the difference between the 7604
total amount of the benefits paid shall be paid to the beneficiary 7605
under section 3309.44 of the Revised Code.7606

       Sec. 3309.46.  (A) The retirement allowance calculated under 7607
section 3309.36, 3309.38, or 3309.381 of the Revised Code shall be 7608
paid as provided in this section. If the member is eligible to 7609
elect a plan of payment under this section, the election shall be 7610
made on the application for retirement. A plan of payment elected 7611
under this section shall be effective only if it is certified by 7612
the actuary engaged by the school employees retirement board to be 7613
the actuarial equivalent of the member's retirement allowance and 7614
is approved by the retirement board.7615

       (B)(1)(a) Except as provided in divisions (B)(1)(b) and (c) 7616
of this section, a member who retires under section 3309.36, 7617
3309.38, or 3309.381 of the Revised Code shall receive a 7618
retirement allowance under "plan A," which shall consist of the 7619
actuarial equivalent of the member's retirement allowance 7620
determined under section 3309.36, 3309.38, or 3309.381 of the 7621
Revised Code in a lesser amount payable for life and one-half of 7622
such allowance continuing after death to the member's surviving 7623
spouse for the life of the spouse.7624

       (b) A member may receive a retirement allowance under a plan 7625
of payment other than "plan A" if either of the following is the 7626
case:7627

       (i) The member is not married or either the member's spouse 7628
consents in writing to the member's election to a plan of payment 7629
other than "plan A" or the board waives the requirement that the 7630
spouse consent;7631

        (ii) A plan of payment providing for payment in a specified 7632
amount continuing after the member's death to a former spouse is 7633
required by a court order issued prior to the effective date of 7634
the member's retirement under section 3105.171 or 3105.65 of the 7635
Revised Code or the laws of another state regarding division of 7636
marital property.7637

       (c) If a member is subject to division (B)(1)(b)(ii) of this 7638
section and the board has received a copy of the order described 7639
in that division, the board shall accept the member's election of 7640
a plan of payment under this section only if the member complies 7641
with both of the following:7642

       (i) The member elects a plan of payment that is in accordance 7643
with the order described in division (B)(1)(b)(ii) of this 7644
section.7645

       (ii) If the member is married, the member elects "plan F" and 7646
designates the member's current spouse as a beneficiary under that 7647
plan unless that spouse consents in writing to not being 7648
designated a beneficiary under any plan of payment or the board 7649
waives the requirement that the current spouse consent.7650

       (2) An application for retirement shall include an 7651
explanation of all of the following:7652

       (a) That, if the member is married, unless the spouse 7653
consents to another plan of payment or there is a court order 7654
dividing marital property issued under section 3105.171 or 3105.65 7655
of the Revised Code or the laws of another state regarding the 7656
division of marital property that provides for payment in a 7657
specified amount, the member's retirement allowance will be paid 7658
under "plan A," which consists of the actuarial equivalent of the 7659
member's retirement allowance in a lesser amount payable for life 7660
and one-half of the allowance continuing after death to the 7661
surviving spouse for the life of the spouse;7662

       (b) A description of the alternative plans of payment, 7663
including all plans described in divisions (B)(3) and (4) of this 7664
section, available with the consent of the spouse;7665

       (c) That the spouse may consent to another plan of payment 7666
and the procedure for giving consent;7667

       (d) That consent is irrevocable once notice of consent is 7668
filed with the board.7669

       Consent shall be valid only if it is in writing, signed by 7670
the spouse, and witnessed by an employee of the school employees 7671
retirement system or a notary public. The board may waive the 7672
requirement of consent if the spouse is incapacitated or cannot be 7673
located or for any other reason specified by the board. Consent or 7674
waiver is effective only with regard to the spouse who is the 7675
subject of the consent or waiver.7676

       (3)(a) A member eligible to elect to receive a retirement 7677
allowance under a plan of payment other than "plan A" shall 7678
receive the retirement allowance under the plan described in 7679
division (B)(4) of this section or one of the following plans:7680

       (a) "Plan B," which shall consist of an allowance determined 7681
under section 3309.36, 3309.38, or 3309.381 of the Revised Code;7682

       (b) "Plan C," which shall consist of the actuarial equivalent 7683
of the member's retirement allowance determined under section 7684
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser 7685
amount payable for life and one-half or some other portion of the 7686
allowance continuing after death to the member's sole surviving 7687
beneficiary designated at the time of the member's retirement, 7688
provided that the amount payable to the beneficiary does not 7689
exceed the amount payable to the member;7690

       (c) "Plan D," which shall consist of the actuarial equivalent 7691
of the member's retirement allowance determined under section 7692
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser 7693
amount payable for life and continuing after death to a surviving 7694
designated beneficiary designated at the time of the member's 7695
retirement;7696

       (d) "Plan E," which shall consist of the actuarial equivalent 7697
of the member's retirement allowance determined under section 7698
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser 7699
amount payable for a certain period from the member's retirement 7700
date as elected by the member and approved by the retirement 7701
board, and on the member's death before the expiration of that 7702
certain period, the member's lesser retirement allowance continued 7703
for the remainder of that period to, and in such order, the 7704
beneficiaries as the member has nominated by written designation 7705
and filed with the retirement board.7706

       Monthly benefits shall not be paid to joint beneficiaries, 7707
but they may receive the present value of any remaining payments 7708
in a lump sum settlement. If all beneficiaries die before the 7709
expiration of the certain period, the present value of all such 7710
payments yet remaining in such period shall be paid to the estate 7711
of the beneficiary last receiving.7712

       (e) "Plan F," which shall consist of the actuarial equivalent 7713
of the member's retirement allowance determined under section 7714
3309.36, 3309.38, or 3309.381 of the Revised Code in a lesser 7715
amount payable to the member for life and some portion of the 7716
lesser amount continuing after death to two, three, or four 7717
surviving beneficiaries designated at the time of the member's 7718
retirement. The portion of the lesser amount that continues after 7719
the member's death shall be allocated among the beneficiaries at 7720
the time of the member's retirement. If the member elects this 7721
plan as required by a court order issued under section 3105.171 or 7722
3105.65 of the Revised Code or the laws of another state regarding 7723
the division of marital property and compliance with the court 7724
order requires the allocation of a portion less than ten per cent 7725
to any person, the member shall allocate a portion less than ten 7726
per cent to that beneficiary in accordance with that order. In all 7727
other circumstances, no portion allocated under this plan of 7728
payment shall be less than ten per cent. The total of the portions 7729
allocated shall not exceed one hundred per cent of the member's 7730
lesser allowance.7731

       (4)(a) Beginning on a date selected by the board, which shall 7732
be not later than July 1, 2004, a member may elect, in lieu of a 7733
plan of payment under division (B)(1) or (3) of this section, a 7734
plan consisting of both a lump sum in an amount the member 7735
designates that constitutes a portion of the retirement allowance 7736
payable under a plan described in division (B)(1) or (3) of this 7737
section and the remainder of the allowance payable under that plan 7738
in monthly payments.7739

       The total amount paid as a lump sum and a monthly benefit 7740
shall be the actuarial equivalent of the amount that would have 7741
been paid had the lump sum not been selected.7742

       (b) The lump sum amount designated by the member shall be not 7743
less than six times and not more than thirty-six times the monthly 7744
amount that would be payable to the member under the plan of 7745
payment elected under this section had the lump sum not been 7746
elected and shall not result in a monthly benefit that is less 7747
than fifty per cent of that amount.7748

       (5) An election under division (B)(3) or (4) of this section 7749
shall be made at the time the member makes application for 7750
retirement.7751

       (6) A member eligible to elect to receive a retirement 7752
allowance under a plan of payment other than "plan A" because the 7753
member is unmarried who fails to make an election on retirement 7754
shall receive a retirement allowance under "plan B."7755

       (C) Until the first payment of any retirement allowance is 7756
made, as provided in sections 3309.36, 3309.38, or 3309.381 of the 7757
Revised Code, a member may change the member's election of a 7758
payment plan if the election is made in accordance with and is 7759
consistent with division (B) of this section.7760

       (D) If the retirement allowances due and paid under the above 7761
provisions of this section are in a total amount less than (1) the 7762
accumulated contributions, (2) the deposits for additional credit 7763
as provided by section 3309.31 of the Revised Code, (3) the 7764
deposits for additional annuities as provided by section 3309.47 7765
of the Revised Code, (4) the deposits for repurchase of service 7766
credit as provided by section 3309.26 of the Revised Code, (5) the 7767
accumulated contributions provided by section 3309.65 of the 7768
Revised Code, (6) the deposits for purchase of military service 7769
credit provided by section 3309.021 or 3309.022 of the Revised 7770
Code, and (7) the deposits for the purchase of service credit 7771
provided by section 3309.73 of the Revised Code, standing to the 7772
credit of the member at the time of retirement, then the 7773
difference between the total amount of the allowances paid and the 7774
accumulated contributions and other deposits shall be paid to the 7775
beneficiary provided under division (D) of section 3309.44 of the 7776
Revised Code.7777

       (E)(1) The death of a spouse or any other designated 7778
beneficiary following the member's retirement shall cancel the 7779
portion of the plan of payment providing continuing lifetime 7780
benefits to the deceased spouse or deceased designated 7781
beneficiary. The retirant shall receive the actuarial equivalent 7782
of the retirant's single lifetime retirement allowance as 7783
determined by the board based on the number of remaining 7784
beneficiaries, with no change in the amount payable to any 7785
remaining beneficiary.7786

       (2) On divorce, annulment, or marriage dissolution, a 7787
retirant receiving a retirement allowance under a plan of payment 7788
that provides for continuation of all or part of the allowance 7789
after death for the lifetime of the retirant's surviving spouse 7790
may elect to cancel the portion of the plan providing continuing 7791
lifetime benefits to that spouse. The retirant shall receive the 7792
actuarial equivalent of the retirant's single lifetime retirement 7793
allowance as determined by the retirement board based on the 7794
number of remaining beneficiaries, with no change in the amount 7795
payable to any remaining beneficiary. In the case of a member who 7796
retires on or after July 24, 1990, the election may be made only 7797
with the written consent of the spouse or pursuant to an order of 7798
the court with jurisdiction over the termination of the marriage. 7799
The election shall be made on a form provided by the board and 7800
shall be effective the month following its receipt by the board.7801

       (3)(a) Following marriage or remarriage, both of the 7802
following apply:7803

       (i) A retirant who is receiving a benefit pursuant to "plan 7804
B" may elect a new plan of payment under division (B)(1), (3)(b), 7805
or (3)(c) of this section based on the actuarial equivalent of the 7806
retirant's single lifetime retirement allowance as determined by 7807
the board.7808

       (ii) A retirant who is receiving a benefit pursuant to a plan 7809
of payment providing for payment to a former spouse pursuant to a 7810
court order described in division (B)(1)(b)(ii) of this section 7811
may elect a new plan of payment under division (B)(3)(e) of this 7812
section based on the actuarial equivalent of the retirant's single 7813
lifetime retirement allowance as determined by the board if the 7814
new plan of payment elected does not reduce the payment to the 7815
former spouse.7816

        (b) If the marriage or remarriage occurs on or after the 7817
effective date of this amendmentJune 6, 2005, the election must 7818
be made not later than one year after the date of the marriage or 7819
remarriage.7820

       The plan elected under division (E)(3) of this section shall 7821
become effective on the date of receipt by the board of an 7822
application on a form approved by the board, but any change in the 7823
amount of the retirement allowance shall commence on the first day 7824
of the month following the effective date of the plan.7825

       Sec. 3309.69.  (A) As used in this section, "ineligible 7826
individual" means all of the following:7827

       (1) A former member receiving benefits pursuant to section 7828
3309.34, 3309.35, 3309.36, 3309.38, or 3309.381 or former section 7829
3309.38 of the Revised Code for whom eligibility is established 7830
more than five years after June 13, 1981, and who, at the time of 7831
establishing eligibility, has accrued less than ten years of 7832
service credit, exclusive of credit obtained after January 29, 7833
1981, pursuant to sections 3309.021, 3309.301, 3309.31, and 7834
3309.33 of the Revised Code;7835

       (2) The spouse of the former member;7836

       (3) The beneficiary of the former member receiving benefits 7837
pursuant to section 3309.46 of the Revised Code.7838

       (B) The school employees retirement board may enter into an 7839
agreement with insurance companies, health insuring corporations, 7840
or government agencies authorized to do business in the state for 7841
issuance of a policy or contract of health, medical, hospital, or 7842
surgical benefits, or any combination thereof, for those 7843
individuals receiving service retirement or a disability or 7844
survivor benefit subscribing to the plan and their eligible 7845
dependents.7846

       If all or any portion of the policy or contract premium is to 7847
be paid by any individual receiving service retirement or a 7848
disability or survivor benefit, the person shall, by written 7849
authorization, instruct the board to deduct the premiums agreed to 7850
be paid by the individual to the companies, corporations, or 7851
agencies.7852

       The board may contract for coverage on the basis of part or 7853
all of the cost of the coverage to be paid from appropriate funds 7854
of the school employees retirement system. The cost paid from the 7855
funds of the system shall be included in the employer's 7856
contribution rate provided by sections 3309.49 and 3309.491 of the 7857
Revised Code. The board shall not pay or reimburse the cost for 7858
health care under this section or section 3309.375 of the Revised 7859
Code for any ineligible individual.7860

       The board may provide for self-insurance of risk or level of 7861
risk as set forth in the contract with the companies, 7862
corporations, or agencies, and may provide through the 7863
self-insurance method specific benefits as authorized by the rules 7864
of the board.7865

       (C) The board shall, beginning the month following receipt of 7866
satisfactory evidence of the payment for coverage, make a monthly 7867
payment to each recipient of service retirement, or a disability 7868
or survivor benefit under the school employees retirement system 7869
who is eligible for insurance coverage under part B of "The Social 7870
Security Amendments of 1965," 79 Stat. 301, 42 U.S.C.A. 1395j, as 7871
amended, except that the board shall make no such payment to any 7872
ineligible individual. Effective on the first day of the month 7873
after April 9, 2001, the amount of the payment shall be the lesser 7874
of an amount equal to the basic premium for such coverage, or an 7875
amount equal to the basic premium in effect on January 1, 1999.7876

       (D) The board shall establish by rule requirements for the 7877
coordination of any coverage, payment, or benefit provided under 7878
this section or section 3309.375 of the Revised Code with any 7879
similar coverage, payment, or benefit made available to the same 7880
individual by the public employees retirement system, Ohio police 7881
and fire pension fund, state teachers retirement system, or state 7882
highway patrol retirement system.7883

       (E) The board shall make all other necessary rules pursuant 7884
to the purpose and intent of this section.7885

       Sec. 3375.411.  A board of library trustees of a free public 7886
library, appointed pursuant to the provisions of sections 3375.06, 7887
3375.08, 3375.12, 3375.15, and 3375.22 of the Revised Code, which 7888
has not less than seventy-five full-time employees, and which, 7889
prior to September 16, 1943, was providing for retirement of the 7890
employees of such library with annuities, insurance, or other 7891
provisions, under authority granted by former section 7889 of the 7892
General Code, may provide such retirement, insurance, or other 7893
provisions in the same manner authorized by former section 7889 of 7894
the General Code, as follows: the library board of such library 7895
which has appropriated and paid the board's portion provided in 7896
such system or plan, may continue to appropriate and pay the 7897
board's portion provided in such system or plan out of the funds 7898
received to the credit of such board by taxation or otherwise. 7899
Each employee of such library who is to be included in a system of 7900
retirement shall contribute to the retirement fund not less than 7901
four per cent per annum of the employee's salary from the time of 7902
eligibility to join the retirement system to the time of 7903
retirement. If a group insurance plan is installed by any library, 7904
not less than fifty per cent of the cost of such insurance shall 7905
be borne by the employees included in such plan.7906

       Provided, any employee whose employment by said library began 7907
on or after September 16, 1943, may exempt self from inclusion in 7908
such retirement system, or withdraw from such retirement system. 7909
Upon such exemption or withdrawal, such person shall become a 7910
member of the public employees retirement system in accordance 7911
with former section 145.02 and sections 145.02, 145.03, and 145.28 7912
of the Revised Code, respectively. All employees appointed for the 7913
first time on and after January 1, 1956, shall, for retirement 7914
purposes, be eligible only for membership in the public employees 7915
retirement system as provided in Chapter 145. of the Revised Code.7916

       A library board which provides for the retirement of its 7917
employees with annuities, insurance, or other provisions under the 7918
authority granted by this section may, pursuant to a board 7919
resolution adopted within thirty days after the effective date of 7920
this section, terminate such retirement plan. Upon the effective 7921
date of such termination, which is specified in the resolution, 7922
each employee covered by such retirement plan shall become a 7923
member of the public employees retirement system.7924

       Sec. 5505.01.  As used in this chapter:7925

       (A) "Employee" means any qualified employee in the uniform 7926
division of the state highway patrol, any qualified employee in 7927
the radio division hired prior to November 2, 1989, and any state 7928
highway patrol cadet attending training school pursuant to section 7929
5503.05 of the Revised Code whose attendance at the school begins 7930
on or after June 30, 1991. "Employee" includes the superintendent 7931
of the state highway patrol. In all cases of doubt, the state 7932
highway patrol retirement board shall determine whether any person 7933
is an employee as defined in this division, and the decision of 7934
the board is final.7935

       (B) "Prior service" means all service rendered as an employee 7936
of the state highway patrol prior to September 5, 1941, to the 7937
extent credited by the board, provided that in no case shall prior 7938
service include service rendered prior to November 15, 1933.7939

       (C) "Total service" means all service rendered by an employee 7940
to the extent credited by the board. Total service includes all of 7941
the following:7942

       (1) Contributing service rendered by the employee since last 7943
becoming a member of the state highway patrol retirement system;7944

       (2) All prior service credit;7945

       (3) Restored service credit as provided in this chapter;7946

       (4) Military service credit purchased under division (D) of 7947
section 5505.16 or section 5505.25 of the Revised Code;7948

       (5) Credit granted under division (C) of section 5505.17 or 7949
section 5505.201, 5505.40, or 5505.402 of the Revised Code;7950

       (6) Credit for any period, not to exceed three years, during 7951
which the member was out of service and receiving benefits under 7952
Chapters 4121. and 4123. of the Revised Code.7953

       (D) "Beneficiary" means any person, except a retirant, who is 7954
in receipt of a pension or other benefit payable from funds of the 7955
retirement system.7956

       (E) "Regular interest" means interest compounded at rates 7957
designated from time to time by the retirement board.7958

       (F) "Plan" means the provisions of this chapter.7959

       (G) "Retirement system" or "system" means the state highway 7960
patrol retirement system created and established in the plan.7961

       (H) "Contributing service" means all service rendered by a 7962
member since September 4, 1941, for which deductions were made 7963
from the member's salary under the plan.7964

       (I) "Retirement board" or "board" means the state highway 7965
patrol retirement board provided for in the plan.7966

       (J) Except as provided in section 5505.18 of the Revised 7967
Code, "member" means any employee included in the membership of 7968
the retirement system, whether or not rendering contributing 7969
service.7970

       (K) "Retirant" means any member who retires with a pension 7971
payable from the retirement system.7972

       (L) "Accumulated contributions" means the sum of the 7973
following credited to a member's individual account in the 7974
employees' savings fund:7975

       (1) All amounts deducted from the salary of the member;7976

       (2) All amounts paid by the member to purchase state highway 7977
patrol retirement system service credit pursuant to this chapter 7978
or other state law.7979

       (M)(1) Except as provided in division (M)(2) of this section, 7980
"final average salary" means the average of the highest salary 7981
paid a member during any threefive consecutive or nonconsecutive 7982
years.7983

       If a member has less than threefive years of contributing 7984
service, the member's final average salary shall be the average of 7985
the annual rates of salary paid to the member during the member's 7986
total years of contributing service.7987

       (2) If a member is credited with service under division 7988
(C)(6) of this section or division (D) of section 5505.16 of the 7989
Revised Code, the member's final average salary shall be the 7990
average of the highest salary that was paid to the member or would 7991
have been paid to the member, had the member been rendering 7992
contributing service, during any threefive consecutive or 7993
nonconsecutive years. If that member has less than threefive7994
years of total service, the member's final average salary shall be 7995
the average of the annual rates of salary that were paid to the 7996
member or would have been paid to the member during the member's 7997
years of total service.7998

       (N) "Pension" means an annual amount payable by the 7999
retirement system throughout the life of a person or as otherwise 8000
provided in the plan.8001

       (O) "Pension reserve" means the present value of any pension, 8002
or benefit in lieu of any pension, computed upon the basis of 8003
mortality and other tables of experience and interest the board 8004
shall from time to time adopt.8005

       (P) "Deferred pension" means a pension for which an eligible 8006
member of the system has made application and which is payable as 8007
provided in division (A) or (B) of section 5505.16 of the Revised 8008
Code.8009

       (Q) "Retirement" means termination as an employee of the 8010
state highway patrol, with application having been made to the 8011
system for a pension or a deferred pension.8012

       (R) "Fiduciary" means any of the following:8013

       (1) A person who exercises any discretionary authority or 8014
control with respect to the management of the system, or with 8015
respect to the management or disposition of its assets;8016

       (2) A person who renders investment advice for a fee, direct 8017
or indirect, with respect to money or property of the system;8018

       (3) A person who has any discretionary authority or 8019
responsibility in the administration of the system.8020

       (S)(1) Except as otherwise provided in this division, 8021
"salary" means all compensation, wages, and other earnings paid to 8022
a member by reason of employment but without regard to whether any 8023
of the compensation, wages, or other earnings are treated as 8024
deferred income for federal income tax purposes. Salary includes 8025
all of the following:8026

       (a) Payments for shift differential, hazard duty, 8027
professional achievement, and longevity;8028

       (b) Payments for occupational injury leave, personal leave, 8029
sick leave, bereavement leave, administrative leave, and vacation 8030
leave used by the member;8031

       (c) Payments made under a disability leave program sponsored 8032
by the state for which the state is required by section 5505.151 8033
of the Revised Code to make periodic employer and employee 8034
contributions to the retirement system.8035

       (2) "Salary" does not include any of the following:8036

       (a) Payments resulting from the conversion of accrued but 8037
unused sick leave, personal leave, compensatory time, and vacation 8038
leave;8039

       (b) Payments made by the state to provide life insurance, 8040
sickness, accident, endowment, health, medical, hospital, dental, 8041
or surgical coverage, or other insurance for the member or the 8042
member's family, or amounts paid by the state to the member in 8043
lieu of providing that insurance;8044

       (c) Payments for overtime work;8045

       (d) Incidental benefits, including lodging, food, laundry, 8046
parking, or services furnished by the state, use of property or 8047
equipment of the state, and reimbursement for job-related expenses 8048
authorized by the state including moving and travel expenses and 8049
expenses related to professional development;8050

       (e) Payments made to or on behalf of a member that are in 8051
excess of the annual compensation that may be taken into account 8052
by the retirement system under division (a)(17) of section 401 of 8053
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 8054
401 (a)(17), as amended;8055

       (f) Payments made under division (B), (C), or (E) of section 8056
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill 8057
No. 3 of the 119th general assembly, Section 3 of Amended 8058
Substitute Senate Bill No. 164 of the 124th general assembly, or 8059
Amended Substitute House Bill No. 405 of the 124th general 8060
assembly.8061

       (3) The retirement board shall determine by rule whether any 8062
compensation, wages, or earnings not enumerated in this division 8063
are salary, and its decision shall be final.8064

       (T) "Actuary" means an individual who satisfies all of the 8065
following requirements:8066

       (1) Is a member of the American academy of actuaries;8067

       (2) Is an associate or fellow of the society of actuaries;8068

       (3) Has a minimum of five years' experience in providing 8069
actuarial services to public retirement plans.8070

       Sec. 5505.03.  (A) The funds created by this section are the 8071
"employees' savings fund," "employer's accumulation fund," 8072
"pension reserve fund," "survivors' benefit fund," "income fund," 8073
and "expense fund." When reference is made to any of such funds, 8074
such reference is made to each as a separate legal entity; 8075
provided that the moneys in the funds may be intermingled for 8076
deposit and investment purposes.8077

       (B) The employees' savings fund is the fund in which shall be 8078
accumulated the contributions deducted from the salaries of 8079
members, except as provided in division (B)(1)(b) of section 8080
5505.54 of the Revised Code. Any refunds of accumulated 8081
contributions, as provided in the plan, shall be paid from such 8082
fund. Upon a member's retirement, histhe accumulated 8083
contributions standing to histhe member's credit in the fund 8084
shall be transferred to the pension reserve fund if histhe 8085
member's retirement occurs on or after January 1, 1966, or to the 8086
employer's accumulation fund if histhe member's retirement 8087
occurred prior to January 1, 1966. If a pension is payable on 8088
account of the death of a member, histhe accumulated 8089
contributions standing to histhe member's credit in the 8090
employees' savings fund shall be transferred to the survivors' 8091
benefit fund if histhe member's death occurs after January 1, 8092
1966, or to the employer's accumulation fund if histhe member's8093
death occurs prior to January 1, 1966.8094

       (C)(1) The employer's accumulation fund is the fund in which 8095
shall be accumulated the state's contribution to the state highway 8096
patrol retirement system and the amounts contributed under 8097
division (B)(1)(b) of section 5505.54 of the Revised Code. Upon a 8098
member's retirement after January 1, 1966, the difference between 8099
histhe member's pension reserve and histhe member's accumulated 8100
contributions shall be transferred to the pension reserve fund. If 8101
a pension is payable on account of a member's death occurring 8102
after January 1, 1966, the difference between the pension reserve 8103
for that pension and histhe member's accumulated contributions 8104
shall be transferred to the survivors' benefit fund.8105

       (2) All pensions allowed and payable prior to January 1, 8106
1966, shall be continued according to the provisions of the plan 8107
in force the day preceding January 1, 1966, unless otherwise 8108
provided for in this chapter and shall be paid from the employer's 8109
accumulation fund.8110

       (D) The pension reserve fund is the fund from which shall be 8111
paid all pensions on account of members who retire on or after 8112
January 1, 1966. If a disability retirant returns to the employ of 8113
the state highway patrol, histhe disability retirant's pension 8114
reserve at that time shall be transferred to the employees' 8115
savings fund and the employer's accumulation fund in the same 8116
proportion as the pension reserve was originally transferred to 8117
the pension reserve fund.8118

       (E) The survivors' benefit fund is the fund from which shall 8119
be paid all pensions, payable under section 5505.17 of the Revised 8120
Code, on account of members who die on or after January 1, 1966.8121

       (F)(1) The income fund is the fund to which shall be credited 8122
all interest, dividends, distributions, and other income derived 8123
from deposits and investments of moneys of the retirement system, 8124
all gifts and bequests to the system, all transfers from the 8125
employees' savings fund because of lack of claimant, and any other 8126
moneys the disposition of which is not otherwise provided for in 8127
the plan.8128

       (2) If the balance in the income fund exceeds the 8129
requirements of the fund, the state highway patrol retirement 8130
board may transfer amounts from the income fund to meet special 8131
requirements of the various other funds of the retirement system.8132

       (G) The expense fund is the fund from which the expense of 8133
the administration of this chapter shall be paid, exclusive of 8134
amounts payable as retirement allowances and as other benefits. 8135
The state highway patrol retirement board shall estimate annually 8136
the amount to be provided in the expense fund and such amount 8137
shall be transferred from the income fund. If such amount is 8138
insufficient during any year, the board is authorized to transfer 8139
the amount of such insufficiency from the income fund.8140

       Sec. 5505.15.  (A)(1) A member of the state highway patrol 8141
retirement system shall contribute teneleven per cent of the 8142
member's annual salary to the state highway patrol retirement 8143
fund. The amount shall be deducted by the employer from the 8144
employee's salary for each payroll period.8145

       (2) The total contributions arising from deductions made 8146
prior to January 1, 1966, from the salaries of members in the 8147
employ of the state highway patrol and standing to the credit of 8148
their individual accounts in the retirement fund shall be 8149
transferred and credited to their respective individual accounts 8150
in the employees' savings fund.8151

       (B) The state shall annually pay into the employer 8152
accumulation fund, in monthly or less frequent installments as the 8153
state highway patrol retirement board requires, the employer 8154
contribution. The employer contribution shall be an amount equal 8155
to twenty-six and one-half per cent of the total salaries paid 8156
contributing members. If a member severs connection with the 8157
patrol or is dismissed, the employer contribution shall remain in 8158
the retirement system.8159

       The rate percentage of the employer contribution shall be 8160
certified by the board to the director of budget and management 8161
and shall not be lower than nine per cent of the total salaries 8162
paid contributing members and shall not exceed three times the 8163
rate percentage being deducted from the annual salaries of 8164
contributing members. The board shall prepare and submit to the 8165
director, on or before the first day of November of each 8166
even-numbered year, an estimate of the amounts necessary to pay 8167
the state's obligations accruing during the biennium beginning the 8168
first day of July of the following year. Such amounts shall be 8169
included in the budget and allocated as certified by the board.8170

       Sec. 5505.174.  (A) The following persons are eligible to 8171
receive an increase under this section:8172

       (1) Persons fifty-threesixty years old or older who have 8173
been receiving pensions pursuant to division (B) of section 8174
5505.16, section 5505.162, division (A)(1), (3), (4), (5), (6), or 8175
(7) of section 5505.17, or division (B) of section 5505.18 of the 8176
Revised Code for not less than twelve months;are eligible to 8177
receive an increase under this section8178

       (2) Persons who have been receiving pensions pursuant to 8179
division (B) of section 5505.18 of the Revised Code for not less 8180
than sixty months regardless of age;8181

       (3) Persons who have been receiving pensions pursuant to 8182
section 5505.162 or division (A)(3), (4), (5), (6), or (7) of 8183
section 5505.17 of the Revised Code for not less than twelve 8184
months regardless of age.8185

       (B)(1) The state highway patrol retirement board shall 8186
annually increase each benefitpensions payable to eligible 8187
persons under this chapter by three per cent, except that no 8188
benefit shall exceed the limit established by section 415 of the 8189
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 415, 8190
as amended.8191

       The first increase is payable to all persons becoming 8192
eligible on or after November 18, 1981. The increase is payable 8193
for each ensuing twelve-month period or until the next increase is 8194
granted under this section, whichever is laterin accordance with 8195
the following:8196

       (a) For each person sixty-five years of age or older who is 8197
receiving a pension not greater than one hundred eighty-five per 8198
cent of the federal poverty level for a family of two persons, as 8199
revised annually by the United States department of health and 8200
human services in accordance with section 673(2) of the "Omnibus 8201
Reconciliation Act of 1981," 95 Stat. 511, 42 U.S.C. 9902, as 8202
amended, the board shall increase the pension by three per cent.8203

       (b) For persons other than those described in division 8204
(B)(1)(a) of this section, the board shall increase the pension by 8205
two per cent, except that for any calendar year in which the 8206
actuarial valuation required by section 5505.12 of the Revised 8207
Code demonstrates that a period of less than thirty years is 8208
required to amortize the state highway patrol retirement system's 8209
unfunded actuarial accrued pension liabilities, the board may 8210
increase the pension by not more than three per cent.8211

       (2) No increase under this section shall exceed the limit 8212
established by section 415 of the "Internal Revenue Code of 1986," 8213
100 Stat. 2085, 26 U.S.C. 415, as amended.8214

       (3) The date of the first increase paid under this section 8215
shall be the anniversary date for future increases. The pension 8216
used in the first calculation of an increase under this section 8217
shall remain as the base for all future increases paid under this 8218
section, unless a new base is established.8219

       Increases paid in years subsequent to the year of the first 8220
increase paid under this section shall be paid to all persons who, 8221
on the date that the increase is authorized by the board, are 8222
eligible as provided in this section.8223

       (C) If payment of a portion of a benefit is made to an 8224
alternate payee under section 5505.261 of the Revised Code, 8225
increases under this section granted while the order is in effect 8226
shall be apportioned between the alternate payee and the eligible 8227
person in the same proportion that the amount being paid to the 8228
alternate payee bears to the amount paid to the eligible person.8229

       If payment of a portion of a benefit is made to one or more 8230
beneficiaries under "option 4" under division (A)(4) of section 8231
5505.162 of the Revised Code, each increase under this section 8232
granted while the plan of payment is in effect shall be divided 8233
among the designated beneficiaries in accordance with the portion 8234
each beneficiary has been allocated.8235

        (D) The board shall adopt, and may amend or rescind, any rule 8236
necessary to carry out this section.8237

       Sec. 5505.54.  (A) During the period beginning on the 8238
effective date of an election to participate in the deferred 8239
retirement option plan and ending on the date participation 8240
ceases, a member's monthly pension amount determined under section 8241
5505.53 of the Revised Code shall accrue to the member's benefit. 8242
To this amount shall be added any benefit increases the member 8243
would be eligible for under section 5505.174 of the Revised Code 8244
had the member, on the effective date of the member's election, 8245
retired under section 5505.16 of the Revised Code.8246

       (B)(1) The amountseleven per cent of the member's annual 8247
salary contributed under division (A) of section 5505.15 of the 8248
Revised Code by a member participating in the deferred retirement 8249
option plan shall accrue to the member's benefitbe credited as 8250
follows:8251

       (a) Ten per cent of the member's annual salary shall accrue 8252
to the member's benefit.8253

       (b) One per cent of the member's annual salary shall be 8254
credited to the employer's accumulation fund.8255

       (2) The state highway patrol retirement system shall credit 8256
to the employer's accumulation fund the amounts contributed by the 8257
state under section 5505.15 of the Revised Code on behalf of a 8258
member participating in the deferred retirement option plan.8259

       (C) During the period beginning on the election's effective 8260
date and ending on the date the member ceases participation in the 8261
plan, the amounts described in divisions (A) and (B)(1)(a) of this 8262
section shall earn interest at an annual rate established by the 8263
state highway patrol retirement board and compounded annually 8264
using a method established by rule adopted under section 5505.50 8265
of the Revised Code.8266

       Section 2. That existing sections 145.01, 145.20, 145.201, 8267
145.22, 145.28, 145.29, 145.291, 145.293, 145.294, 145.295, 8268
145.297, 145.298, 145.299, 145.2911, 145.2912, 145.2913, 145.2914, 8269
145.30, 145.32, 145.323, 145.33, 145.331, 145.34, 145.35, 145.36, 8270
145.361, 145.362, 145.37, 145.383, 145.39, 145.40, 145.401, 8271
145.41, 145.44, 145.45, 145.452, 145.462, 145.47, 145.48, 145.483, 8272
145.49, 145.51, 145.54, 145.56, 145.561, 145.563, 145.58, 145.82, 8273
145.87, 145.92, 145.95, 145.97, 742.01, 742.31, 742.33, 742.34, 8274
742.35, 742.37, 742.3716, 742.38, 742.39, 742.44, 742.444, 742.63, 8275
2329.66, 3305.06, 3307.26, 3307.501, 3307.58, 3307.67, 3309.26, 8276
3309.312, 3309.33, 3309.34, 3309.341, 3309.343, 3309.353, 8277
3309.354, 3309.36, 3309.362, 3309.371, 3309.373, 3309.376, 8278
3309.379, 3309.3710, 3309.3711, 3309.39, 3309.401, 3309.45, 8279
3309.46, 3309.69, 3375.411, 5505.01, 5505.03, 5505.15, 5505.174, 8280
and 5505.54 and sections 145.02, 145.292, 145.321, 145.322, 8281
145.324, 145.326, 145.327, 145.328, 145.329, 145.3210, 145.3211, 8282
145.3212, 145.3213, 145.332, 145.42, 145.44, and 3309.38 of the 8283
Revised Code are hereby repealed.8284

       Section 3.  Notwithstanding the times specified in the 8285
amendments to section 145.87 of the Revised Code made by this act, 8286
if the Public Employees Retirement Board determines from an 8287
actuarial study that a decrease in the percentage transferred 8288
under that section is warranted, the Board may decrease the 8289
percentage transferred not later than one hundred twenty days 8290
after the effective date of this section. The decrease shall take 8291
effect on the first day of the second month following the Board's 8292
action.8293

       Section 4. (A) The amendments by this act regarding the 8294
purchase or obtainment of service credit from the Public Employees 8295
Retirement System apply to any purchase or obtainment of service 8296
credit a member of the retirement system initiated not later than 8297
six months after the effective date of this section. A purchase or 8298
obtainment of service credit shall be considered to have been 8299
initiated not later than six months after the effective date of 8300
this section if the member made one or more payments before that 8301
date. 8302

       (B) Any purchase or obtainment of service credit under 8303
Chapter 145. of the Revised Code shall continue at the total cost 8304
of that credit immediately before the period ending six months 8305
after the effective date of this section if the retirement system 8306
receives from the member one or more payments not later than six 8307
months after the effective date of this section. The total cost 8308
shall continue unchanged unless the requirements of section 8309
145.294 of the Revised Code, and any applicable rules adopted 8310
pursuant to that section, are not met.8311

       Section 5.  (A) The amendments by this act of sections 8312
742.33, 742.34, and 742.35 of the Revised Code regarding the 8313
frequency of employer payments to the Ohio Police and Fire Pension 8314
Fund apply to police officer employers' contributions and 8315
firefighter employers' contributions due the Fund for employee 8316
payrolls paid on or after the ninety-first day after the effective 8317
date of this section.8318

       (B) Police officer employers' contributions and firefighter 8319
employers' contributions due the Fund for employee payrolls paid 8320
before the ninety-first day after the effective date of this 8321
section shall be paid to the Fund not later than the date the 8322
contributions would have been due under section 742.33 or 742.34 8323
of the Revised Code, as those sections existed immediately prior 8324
to the effective date of this section.8325

       (C) Any applicable penalty determined under section 742.352 8326
of the Revised Code shall be assessed against an employer if the 8327
employer fails to make a payment on or before the date the payment 8328
is due. 8329

       Section 6.  The amendment by this act of section 3307.67 of 8330
the Revised Code takes effect July 1, 2011.8331

       Section 7.  The amendments by this act of sections 3307.501 8332
and 3307.58 of the Revised Code take effect August 1, 2015.8333

       Section 8.  The amendments by this act of sections 3309.26, 8334
3309.33, 3309.34, 3309.341, 3309.343, 3309.353, 3309.354, 3309.36, 8335
3309.362, 3309.371, 3309.373, 3309.376, 3309.379, 3309.3710, 8336
3309.3711, 3309.39, 3309.401, 3309.45, 3309.46, and 3309.69 of the 8337
Revised Code take effect August 1, 2015.8338

       Section 9.  The amendments by this act of section 5505.01 of 8339
the Revised Code take effect January 1, 2015.8340

       Section 10.  Section 2329.66 of the Revised Code is presented 8341
in this act as a composite of the section as amended by Sub. H.B. 8342
332, Sub. S.B. 3, and Sub. S.B. 281 of the 127th General Assembly. 8343
The General Assembly, applying the principle stated in division 8344
(B) of section 1.52 of the Revised Code that amendments are to be 8345
harmonized if reasonably capable of simultaneous operation, finds 8346
that the composite is the resulting version of the section in 8347
effect prior to the effective date of the section as presented in 8348
this act.8349

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