Bill Text: OH HB72 | 2009-2010 | 128th General Assembly | Introduced

Ohio House Bill 72 (Prior Session Legislation)

Introduced

Bill Title: To provide for confidentiality of certain records maintained by the Ohio Public Employees Deferred Compensation Board, to require the Treasurer of State to be the custodian of contributions into the deferred compensation program, to require new employees to be notified of the deferred compensation program and provided with the opportunity to elect to participate or not participate in the program, and to make other changes to the Deferred Compensation Law.

Spectrum: Slight Partisan Bill (Democrat 5-3)

Status: (Introduced - Dead) 2009-03-17 - To Financial Institutions, Real Estate, & Securities [HB72 Detail]

Download: Ohio-2009-HB72-Introduced.html

As Introduced

128th General Assembly

Regular Session

2009-2010

H. B. No. 72

Representatives Hottinger, Dodd

Cosponsors: Representatives Huffman, Pryor, Luckie, Domenick, Evans, Letson

A BILL

To amend sections 148.02, 148.04, and 3105.87 and to

enact section 148.05 of the Revised Code to

provide for confidentiality of certain records

maintained by the Ohio Public Employees Deferred

Compensation Board, to require the Treasurer of

State to be the custodian of contributions into

the deferred compensation program, to require new

employees to be notified of the deferred

compensation program and provided with the

opportunity to elect to participate or not

participate in the program, and to make other

changes to the Deferred Compensation Law.

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

Section 1. That sections 148.02, 148.04, and 3105.87 be	13
amended and section 148.05 of the Revised Code be enacted to read	14
as follows:	15

Sec. 148.02. The Ohio public employees deferred compensation	16
board shall be comprised of a member of the house of	17
representatives and a member of the senate, who shall not be of	18
the same political party, each to be appointed to serve at the	19
pleasure of the member's respective leadership, and the members of	20
the public employees retirement board as constituted by section	21
145.04 of the Revised Code, who are hereby created as a separate	22
legal entity for the purpose of administering a deferred	23
compensation system for all eligible employees. The public	24
employees retirement board may utilize its employees and property	25
in the administration of the system on behalf of the Ohio public	26
employees deferred compensation board, in consideration of a	27
reasonable service charge to be applied in a nondiscriminatory	28
manner to all amounts of compensation deferred under this system.	29

The Ohio public employees deferred compensation board may	30
exercise the same powers granted by section 145.09 of the Revised	31
Code necessary to its functions. The attorney general shall be the	32
legal adviser of the board. The treasurer of state shall be the	33
custodian of contributions into the deferred compensation program.	34

Sec. 148.04. (A) The Ohio public employees deferred	35
compensation board shall initiate, plan, expedite, and, subject to	36
an appropriate assurance of the approval of the internal revenue	37
service, promulgate and offer to all eligible employees, and	38
thereafter administer on behalf of all participating employees and	39
continuing members, and alter as required, a program for deferral	40
of compensation, including a reasonable number of options to the	41
employee for the investment of deferred funds, ~~including life~~	42
~~insurance, annuities, variable annuities, pooled investment funds~~	43
~~managed by the board, or other forms of investment approved by the~~	44
~~board,~~ always in such form as will assure the desired tax	45
treatment of such funds. The members of the board are the trustees	46
of any deferred funds and shall discharge their duties with	47
respect to the funds solely in the interest of and for the	48
exclusive benefit of participating employees, continuing members,	49
and their beneficiaries. With respect to such deferred funds,	50
section 148.09 of the Revised Code shall apply to claims against	51
participating employees or continuing members and their employers.	52

(B)(1) Whenever an individual becomes employed in a position	53
paid by warrant of the director of budget and management, the	54
individual's employer shall do both of the following at the time	55
the employee completes the employee's initial employment	56
paperwork:	57

(a) Provide information to the employee either verbally or in	58
writing regarding the benefits of long-term savings through	59
deferred compensation;	60

(b) Secure, in writing, the employee's election to	61
participate or not participate in a deferred compensation program	62
offered by the board.	63

If the employee elects to participate in the deferred	64
compensation program, the employee also shall execute a	65
participation agreement to become a member of the program.	66

An election regarding participation under this section shall	67
be made in such manner and form as is prescribed by the Ohio	68
public employees deferred compensation program and shall be filed	69
with the program.	70

The employer shall forward each election completed under this	71
division to the deferred compensation program not later than	72
thirty days after the date on which the employee's employment	73
begins.	74

(2) Every employer of an eligible employee shall contract	75
with the employee upon the employee's application for	76
participation in a deferred compensation program offered by the	77
board. ~~Every retirement system serving an eligible employee shall~~	78
~~serve as collection agent for compensation deferred by any of its~~	79
~~members and account for and deliver such sums to the board.~~	80

(C) The board shall, subject to any applicable contract	81
provisions, undertake to obtain as favorable conditions of tax	82
treatment as possible, both in the initial programs and any	83
permitted alterations of them or additions to them, as to such	84
matters as terms of distribution, designation of beneficiaries,	85
withdrawal upon disability, financial hardship, or termination of	86
public employment, and other optional provisions.	87

(D) In no event shall the total of the amount of deferred	88
compensation to be set aside under a deferred compensation program	89
and the employee's nondeferred income for any year exceed the	90
total annual salary or compensation under the existing salary	91
schedule or classification plan applicable to the employee in that	92
year.	93

Such a deferred compensation program shall be in addition to	94
any retirement or any other benefit program provided by law for	95
employees of this state. The board shall adopt rules pursuant to	96
Chapter 119. of the Revised Code to provide any necessary	97
standards or conditions for the administration of its programs,	98
including any limits on the portion of a participating employee's	99
compensation that may be deferred in order to avoid adverse	100
treatment of the program by the internal revenue service or the	101
occurrence of deferral, withholding, or other deductions in excess	102
of the compensation available for any pay period.	103

Any income deferred under such a plan shall continue to be	104
included as regular compensation for the purpose of computing the	105
contributions to and benefits from the retirement system of such	106
employee. Any sum so deferred shall not be included in the	107
computation of any federal and state income taxes withheld on	108
behalf of any such employee.	109

(E) This section does not limit the authority of any	110
municipal corporation, county, township, park district,	111
conservancy district, sanitary district, health district, public	112
library, county law library, public institution of higher	113
education, or school district to provide separate authorized plans	114
or programs for deferring compensation of their officers and	115
employees in addition to the program for the deferral of	116
compensation offered by the board. Any municipal corporation,	117
township, public institution of higher education, or school	118
district that offers such plans or programs shall include a	119
reasonable number of options to its officers or employees for the	120
investment of the deferred funds, including annuities, variable	121
annuities, regulated investment trusts, or other forms of	122
investment approved by the municipal corporation, township, public	123
institution of higher education, or school district, that will	124
assure the desired tax treatment of the funds.	125

Sec. 148.05. (A)(1) As used in this division, "personal	126
history record" means information maintained by the Ohio public	127
employees deferred compensation board on an individual who is a	128
participating employee or continuing member that includes the	129
address, telephone number, social security number, record of	130
contributions, records of benefits, correspondence with the Ohio	131
public employees deferred compensation program, or other	132
information the board determines to be confidential.	133

(2) The records of the board shall be open to public	134
inspection, except that the following shall be excluded, except	135
with the written authorization of the individual concerned:	136

(a) Information pertaining to an individual's participant	137
account;	138

(b) The individual's personal history record.

139

(B)(1) All medical reports, records, and recommendations of a	140
participating employee or a continuing member that are in the	141
possession of the board are privileged.	142

(2) All tax information of a participating employee,	143
continuing member, or former participant or member that is in the	144
possession of the board shall be confidential to the extent the	145
information is confidential under Title LVII or any other	146
provision of the Revised Code.	147

(C) Notwithstanding the exceptions to public inspection in	148
division (A)(2) of this section, the board may furnish the	149
following information:	150

(1) If a participating employee, continuing member, or former	151
participant or member is subject to an order issued under section	152
2907.15 of the Revised Code or is convicted of or pleads guilty	153
to a violation of section 2921.41 of the Revised Code, on written	154
request of a prosecutor as defined in section 2935.01 of the	155
Revised Code, the board shall furnish to the prosecutor the	156
information requested from the individual's personal history	157
record or participant account.	158

(2) Pursuant to a court or administrative order issued	159
pursuant to Chapter 3119., 3121., 3123., or 3125. of the Revised	160
Code, the board shall furnish to a court or child support	161
enforcement agency the information required under that section.	162

(3) Pursuant to an administrative subpoena issued by a state	163
agency, the board shall furnish the information required by the	164
subpoena.	165

(4) The board shall comply with orders issued under section	166
3105.87 of the Revised Code.	167

(D) A statement that contains information obtained from the	168
program's records that is signed by the executive director or the	169
director's designee and to which the board's official seal is	170
affixed, or copies of the program's records to which the	171
signature and seal are attached, shall be received as true copies	172
of the board's records in any court or before any officer of this	173
state.	174

Sec. 3105.87. The court may order a public retirement	175
program or the Ohio public employees deferred compensation program	176
to provide information from a participant's personal history	177
record necessary to determine the amounts described in division	178
(D) of section 3105.82 of the Revised Code.	179