Chapter 145-1 Benefits

145-1-01 Organization.

(A) Offices

(1) The general offices of the public employees retirement board and its address of record is "277 East Town Street, Columbus, Ohio 43215-4642."

(2) The location of the office may be changed or additional offices may be established or closed by appropriate board resolution.

(B) Meetings

(1) Regular meetings shall be held at nine a.m. on the third Wednesday of each calendar month. The date and hour of a regular meeting may be changed by appropriate board resolution.

(2) Special meetings may be held at the call of the chair, or in the event of the chair's incapacity, at the call of the vice chair. Should both the chair and vice chair be incapacitated, a special meeting of the board may be called by any two members of the board.

(3) The January meeting in each year shall be the annual meeting, at which time as the first order of new business, the board shall elect from its members a chair and a vice chair who shall take office immediately following their election. The chair-elect shall announce committee appointments for the coming year no later than the regular February meeting. The composition of the committees shall remain the same until the new appointments. New board members and re-elected board members shall be sworn in at the annual meeting.

(4) The director of administrative services may designate a member of such individual's staff to act on the board in such individual's absence, provided the person designated is not disqualified by operation of law to act as such a representative.

(5) A majority of the actual number of members that have been elected or appointed to and are serving on the board at the time of a meeting where official action is to be taken constitutes a quorum to conduct a meeting. A majority of those members present and voting yes on a proposal shall constitute a favorable vote. An abstention from voting shall not be counted as either an affirmative or negative vote, and a member who abstains shall not be counted as a member present to determine whether a majority needed for a favorable vote has been reached. A roll call shall occur if there is a division in the vote. Any board member may request a roll call on any vote.

(6) The regular order of business for any meeting of the board shall be as follows:

(a) Roll call. An employee or retirant member of the board not able to be present may request to be excused. A request to be excused shall be moved by the chair and voted on by the board.

(b) Items of business as presented on a written agenda sent to each board member, and made available to the public, prior to the meeting and such other items that may arise between the release date of the written agenda and the meeting date.

(c) Announcement of next regular or special meeting date, hour and place.

(d) Adjournment.

(e) Without objection, the regular order of business may be changed by the chair or upon the request of a board member. If there is an objection, a motion, second and vote to consider an item out of turn is in order.

(7) When a question of parliamentary procedure arises, the most current edition of "Robert's Rules of Order" shall be followed unless in conflict with Chapter 145. of the Revised Code, or this rule.

(8) The minutes shall be the record of the proceedings of the board. Draft copies of the written minutes shall be circulated to the board in advance of each meeting. After approval, the final form shall be inserted in the minutes book of the board.

(C) Officers and their duties

(1) The chair shall be elected and take office at the annual meeting in January of each year for a one-year term. The chair shall be the voice of the board and shall preside at all board meetings. The chair may call upon the vice chair to preside during a meeting. The chair shall appoint committees; make the determination whether a special meeting of the board is required; and when required, call the meeting. The chair shall present to the board for a vote the member's request to be excused for members unable to attend meetings.

(2) The vice chair shall be elected and take office at the annual meeting in January of each year for a one-year term. The vice chair shall succeed to the chair in the event of the resignation, retirement or death of the chair. The vice chair shall preside in the event of the absence or incapacity of the chair or upon the request of the chair.

(3) Under the direction of the chair, the executive director or other designated person shall keep the minutes of board proceedings.

(4) Other officers of the board shall include the chairs of standing or special committees.

(D) Committees

(1) The investment committee shall consist of all board members. The chair of the investment committee shall be appointed by the board chair. The investment committee shall, through its chair and its written reports, make recommendations to the board on investment related policies and actions.

(2) The personnel and salary review committee shall consist of an odd number of board members up to a maximum of seven members. The exact number of members on the committee, the committee chair, and members shall be determined and appointed by the board chair. This committee shall meet at the call of its chair, as occasion requires, to review compensation and personnel matters and to make recommendations through its chair and reports to the board on these matters.

(3) The audit committee shall consist of five members: the board chair, the director of administrative services, an employee member appointed by the board chair, a retirant member appointed by the board chair, and one additional member appointed by the board chair. The board chair shall make appointments to the committee by considering the accounting, finance, or business management background of the board members. This committee shall meet twice annually, and at any other time at the call of the board chair, to review audit plans and audit findings of the retirement system's independent and/or internal auditors. The committee shall, through the board chair, make its reports to the board. The committee shall prepare and submit an annual report of its activities to the Ohio retirement study council.

(4) Appointments of the committee chairs and appointments of members to the regular committees listed are concurrent with the board chair who makes the appointment.

(5) The chair of the board may, at times as required, appoint temporary or special committees for such purposes as the chair deems necessary. The chair of a temporary or special committee shall be announced when the members are named. Unless otherwise stated for a shorter period in the appointment, temporary or special committee appointments shall be concurrent with the board chair who makes such appointment.

(6) The minutes shall be the record of the proceedings of a committee or subcommittee. Draft copies of the written minutes shall be circulated to the committee or subcommittee for approval. After approval, the final form shall be inserted in the minutes book of the board.

Effective: 4/1/2018
Five Year Review (FYR) Dates: 9/21/2022
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.04, 145.05, 145.06, 145.07, 145.08, 145.09
Prior Effective Dates: 03/29/1976, 12/12/1976, 02/01/1988, 05/09/1988, 10/11/1988, 04/05/1993, 04/30/1994, 06/01/1996, 07/06/2000, 01/05/2001, 03/22/2002, 12/24/2004, 11/30/2007, 10/01/2009 (Emer.), 01/01/2010, 01/01/2014

145-1-02 Election of board members.

(A) Notifications

(1) At its regular March meeting in each year that an election of members to the board is required the public employees retirement board shall establish an election time schedule. The schedule shall establish the first Monday in October as the date and place for the election count to be conducted under the supervision of the secretary of state's office.

(2) This schedule shall include the release of news articles to interested employee and employer organizations and other interested parties, a preliminary notice to employers, the mailing of notice of elections and nominating petitions, the last date for receipt of nominating petitions and required forms, the date of the meeting at which the board shall certify candidates for election, the date by which voting materials must be mailed to eligible voters at their home addresses, and the final date for receipt of votes.

(B) Nominations

(1) Candidates for board members shall be nominated by petition on forms provided by the public employees retirement system.

(2)

(a) Petitions and required forms for candidates as an employee representative on the board shall be mailed to employers by the system with the notice of election posters not later than the thirtieth day of June. At that time petitions and required forms may be sent to members who have requested them.

(b) Any member, except a member receiving a disability benefit pursuant to sections 145.35 and 145.36 of the Revised Code, who is not otherwise ineligible under Chapter 145. of the Revised Code, may be nominated to represent the employee group to which the member belongs by submitting petitions that contain at least five hundred valid nominating signatures. Petitions for an employee representative candidate shall contain not less than twenty signatures of members from each of at least ten counties in Ohio. The member's place of employment shall determine the county for such member.

(c) Members shall be eligible to sign a petition for an employee representative candidate if they are contributing members under an employing unit which would be represented by the candidate as of June thirtieth of the election year.

(3)

(a) A notice of election procedures shall be sent to retirants at their home addresses of record with, or at the same time that, the June benefit payment is released in the year of a retirant representative election. Petitions and required forms for candidates as the retirant representative board member shall be sent, to retirants who have requested them, on the date set by the board pursuant to paragraph (A) of this rule; however, such date shall be no later than June thirtieth.

(b) Any retirant, who is not otherwise ineligible under Chapter 145. of the Revised Code, may be nominated to represent the retirant group with petitions which contain at least two hundred fifty valid nominating signatures. Petitions for a retirant representative candidate shall contain not less than ten signatures of retirants from each of at least five counties in Ohio. The retirant's place of residence shall determine the county of such retirant.

(c) Individuals shall be eligible to sign a petition for a retirant representative candidate if they are retirants eligible to receive a monthly benefit as of July first of the election year.

(4)

(a) Petitions and completed required forms for a candidate shall be received by the system no later than the petition filing date established by the board in the election time schedule. A petition received after such date is invalid.

(b) Petition signatures shall be verified based on records of the retirement system and the requirements of Chapter 145. of the Revised Code. Signatures that cannot be conclusively verified shall not be counted.

(c) The board shall certify qualified candidates for election. A qualified candidate is an individual who meets the requirements of Chapter 145. of the Revised Code and this rule as established by the records of the system. Based on the certification, the names of qualified candidates shall be placed on the ballot for election.

(C) Voting

(1) The board may conduct an election by paper ballots or through electronic methods.

(2)

(a) Voting materials for each voting member or retirant of the system shall include a list of candidates, a biographical statement for each candidate, voting instructions, a disclaimer that neither the board nor the system endorses any particular candidate or statement, and any other materials the board deems necessary.

(b)

(i) The biographical statement of a candidate shall be completed on a template provided by the system. The template shall provide for the candidate's name and county of residence , and may include an email address, website address, and telephone number. The employee representative candidate(s) shall also indicate the current public employer and job title.

The biographical statement of a candidate shall include a brief description of current or prior work and relevant industry knowledge or specific experience. The biographical statement shall not exceed two hundred words. The candidate must provide an affidavit signed by the candidate verifying the accuracy and truthfulness of the statement. The board reserves the right to edit such statement for length or inappropriate content with notice to the candidate.

(ii) In addition, a candidate must provide a disclaimer on or with any written or spoken campaign material that neither the board nor the system endorses any particular candidate or statement, and submit such materials to staff to pre-approve the disclaimer prior to disseminating.

(3) If a candidate is elected by a margin of less than one percent of the votes cast, a recount will automatically be conducted.

(4) In the event there is a tie vote, the vote shall be decided by a coin toss. Certification of the election results shall be provided by the secretary of state at the office of the system.

(D) Protests

(1)

(a) An individual who fails to obtain sufficient valid nominating signatures by the petition filing date may file a protest on the insufficiency of such individual's petitions. The protest shall be in writing and received by the system no later than five calendar days after notice of the insufficiency.

(b) A protest shall be heard at the board's next meeting. The individual may be represented by legal counsel at the hearing and may present any information and/or documents relevant to the protest for the board's consideration. The executive director shall notify the individual in writing of the board's decision. If the board determines that the protest is valid, it shall certify the individual for that representative group election.

(c) Once the board makes a determination of a protest on the sufficiency of an individual's petitions, neither the insufficiency nor determination shall be the basis for any other protest to the board pertaining to that individual. The board's decision is final.

(2)

(a) An unsuccessful candidate in an election may file a protest in the candidate's representative group election. This protest shall be in writing and received by the system no later than five calendar days after notice of the unofficial election results.

(b) A protest shall be heard at the board's next meeting.

(i) The protesting candidate may be represented by legal counsel at the hearing. The successful candidate may appear, and may be represented by legal counsel. The protesting candidate and the successful candidate may submit any information and/or documents relevant to the protest for the board's consideration.

(ii) The executive director shall notify the protesting candidate in writing of the board's decision.

(iii) If the board determines that the protest is valid, it shall declare the election for that representative group void, and the position vacant. A new election for that representative group shall be held pursuant to division (C) of section 145.06 of the Revised Code. The board's decision is final.

(E) Vacancies

(1) Except as provided in this paragraph, if a vacancy occurs in the term of an employee member or retirant member of the board, the remaining retirement board members shall determine the schedule and manner in which they will select a successor member. The board is not required to elect a successor member for a vacancy that occurs on or after the first day of October of the year in which the vacated term ends, as described in section 145.06 of the Revised Code.

(a) The board shall notify the membership or retirant group affected by the vacancy in the same manner as is done for elections of retirement board members. This notice shall state the procedure for candidates for the vacancy to submit their names to the board, and the procedures for selection by the board of the candidate to fill the vacancy. Candidates shall qualify under the same eligibility requirements as the predecessor in office.

(b) The board shall select a successor member from those names submitted to it. A successor member shall be selected by a majority vote in which successive ballots shall occur until one candidate receives a majority. However, in the event there is a tie vote, the vote shall be decided by a coin toss.

(2) If a vacancy occurs because an individual is unable to assume the office at the January meeting of the board following the individual's election, the board shall conduct a new election as provided in this rule, except that the time schedule for the election shall occur in order to comply with section 145.06 of the Revised Code.

(3) All documents regarding filling the vacancy, including resumes and forms required by the system, shall be made available to any person upon request and payment of the costs of compiling, copying, and mailing the documents.

Five Year Review (FYR) Dates: 9/21/2017 and 09/21/2022
Promulgated Under: 119.03
Statutory Authority: 145.09, 145.058
Rule Amplifies: 145.04, 145.05 , 145.051, 145.058 , 145.06, 145.27
Prior Effective Dates: 5/16/73, 6/9/78, 3/17/89, 6/1/96, 5/31/97, 1/5/01, 10/7/01, 6/20/03, 4/10/05, 11/30/07, 5/27/10, 12/10/12

145-1-03 Board travel and expense reimbursement policy.

(A)

(1) As provided in section 145.08 of the Revised Code and this rule, members of the public employees retirement board described in section 145.04 of the Revised Code shall be reimbursed by the public employees retirement system for travel expenses incurred for retirement system business that are:

(a) Actual, necessary and reasonable, and

(b)

(i) Incurred during attendance at meetings of the retirement board or its committees, or,

(ii) At meetings, conferences, seminars, workshops or sessions presented by other organizations and other group meetings as authorized by the retirement board.

(2) Meetings shall provide education to board members, be necessary for the performance of their duties, be appropriate to the general purpose of the retirement system and be in the interest of the retirement system's participants.

(3) "Actual, necessary and reasonable expenses" mean expenses which are incurred, appropriate in the circumstances, and within prudent judgment.

(B) Travel expenses for approved travel that are reimbursable from the retirement system include, but are not limited to, the following:

(1) Transportation

(a) Travel by common carrier shall be reimbursed in an amount limited to the actual cost of a coach or economy class ticket, except if no such ticket is available and the travel is necessary then at the actual cost of the available ticket.

(b) In-state travel by personal vehicle shall be reimbursed for mileage at the established reimbursable rate. Out-of-state travel by personal vehicle shall be reimbursed at the lesser of "portal to portal" or "air travel cost."

(i) "Portal to portal" expenditures for this calculation include the actual cost of lodging, meals, parking at place of lodging in route, and mileage at the established reimbursable rate.

(ii) "Air travel cost" expenditures for this calculation include the actual cost of a thirty-day advance coach air fare, airport parking, transportation from the airport to destination lodging, and mileage between home and the airport at the established reimbursable rate.

(c) The cost of a rental automobile if it is a reasonable alternative means of transportation under the circumstances.

(d) The cost of parking for a personal or rental vehicle if necessary and required.

(e) The cost of taxi cabs or public transportation where reasonable under the circumstances.

(2) Lodging at the single occupancy rate.

(3) Meals and beverages, excluding alcohol, at reasonable amounts not to exceed limits set by the board.

(4) Tips based on reasonable and customary amounts, not to exceed limits set by the board.

(5)

(a) Telephone calls or other electronic transmissions that are for retirement system business.

(b) Personal telephone calls to home/family when travel will require an overnight stay and then such calls must not exceed limits set by the retirement board.

(C) Reimbursement shall not be made for personal expenditures which include, but are not limited to, the following:

(1) Entertainment such as movies, theater or sports tickets, or green fees.

(2) Personal services such as valet service, laundry or dry cleaning, or other such goods or services. However, if travel is seven days or longer, reasonable laundry and dry cleaning expenses may be reimbursed.

(D)

(1) The board, at a regular or other meeting, shall approve in advance all travel for its board members except travel:

(a) To and from meetings of the board or its committees or other retirement system business within the state of Ohio, or

(b) For which a board member will not seek reimbursement.

(2) Requests for travel authorization shall be made in writing and submitted to the executive director who shall present the request to the board at its next meeting.

(3) A board member shall not be reimbursed for any expense if the travel for which the expense was incurred was not for system business, or the travel has not been authorized by the board.

(E) Requests for reimbursement of expenses for travel shall be submitted with the required documentation on a form provided by the system and in accordance with the system's reimbursement procedures.

Five Year Review (FYR) Dates: 9/21/2017 and 09/21/2022
Promulgated Under: 111.15
Statutory Authority: 145.08
Rule Amplifies: 145.08
Prior Effective Dates: 12/9/95, 4/10/05, 11/30/07

145-1-05 Investment department incentive plan payouts policy.

(A) Pursuant to section 145.09 of the Revised Code, payment of employee bonuses are subject to the guidelines established by the public employees retirement board as reflected in the investment department annual incentive plan. The plan shall be reviewed and approved on an annual basis by the board, and may be interpreted, amended, rescinded, and/or terminated at any time in the board's discretion. The plan shall establish incentive awards weighted against quantitative performance components, focusing on the public employees retirement system's actual relative investment performance compared with external benchmarks. The plan may also incorporate a qualitative component based on annual goals. Any and all material modifications to the plan, including, but not limited to those related to the assignment of incentive awards, identification of performance measures and standards, and determination of plan payouts and actual payouts, require the board's prior approval.

(B) Participation in the plan is limited to certain public employees retirement system full-time investment professionals. Participation in the plan in any one year does not confer the right to participate in the plan in the current or any other year and does not confer the right to continued employment.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.09 , 145.092
Prior Effective Dates: 4/10/05, 1/1/15

145-1-06 Ohio-qualified agents and investment managers.

(A) For purposes of division (A)(4) of section 145.114 and section 145.116 of the Revised Code, an investment manager may be designated as an "Ohio-qualified investment manager" if the investment manager and/or any parents, affiliates, or subsidiaries of the investment manager meets the requirements of divisions (A)(1) and (A)(2) of section 145.116 of the Revised Code.

(B) For purposes of sections 145.114 and 145.116 of the Revised Code, "principal place of business" includes an office in which the agent or investment manager regularly provides securities or investment advisory services and solicits, meets with, or otherwise communicates with clients.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.114, 145.116
Prior Effective Dates: 4/10/05

145-1-07 Investment entities.

The retirement board, pursuant to sections 145.09 and 145.11 of the Revised Code, may create limited liability companies, partnerships, trusts, corporations or other qualified entities to facilitate the investment of its funds.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.11, 145.98
Prior Effective Dates: 7/17/74, 9/27/97, 12/7/00, 1/1/03, 1/1/06

145-1-09 Staff authority.

(A) The public employees retirement board authorizes its staff to make determinations required under Chapter 145. of the Revised Code, including, but not limited to, membership, exemptions or exclusions from membership, earnable salary, benefits, and employer reporting. Membership determinations may be appealed to the retirement board pursuant to rule 145-1-11 of the Administrative Code. A staff or senior staff membership determination as described in rules 145-1-10 and 145-1-11 of the Administrative Code that is not timely appealed shall be the final determination of the public employees retirement board. Determinations mandated by statute may not be appealed to the board.

(B) The public employees retirement board authorizes its staff to establish payment plans with public employers within staff's discretion to satisfy employer billings issued pursuant to Chapter 145. of the Revised Code.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.012, 145.03, 145.036, 145.037, 145.038, 145.32, 145.33, 145.331, 145.332, 145.35, 145.36, 145.361, 145.362, 145.38, 145.382, 145.383, 145.40, 145.43, 145.431, 145.45, 145.46, 145.47, 145.48, 145.483, 145.51
Prior Effective Dates: 3/17/76, 11/2/91, 9/27/97, 11/2/00, 1/1/03, 6/20/03, 4/24/07 (Emer.), 8/9/07, 1/1/11, 1/7/13 (Emer.), 3/24/13, 5/8/14

145-1-10 Staff determination of membership.

(A) Any affected person may request a determination of membership by providing the public employees retirement system with a written request and supporting documentation of the nature of work performed for which a determination is requested.

(B) Upon receipt of a membership determination request, the system shall review the submitted information and, if necessary, request additional information from any party. The system shall obtain certification from the public employer prior to issuing a determination. Based upon a review of all information submitted, the system shall issue the staff determination by certified mail to the impacted parties. Any affected person may appeal the staff determination . An appeal, together with additional supporting information, shall be submitted in writing and received by the system not later than thirty days after the issuance of the staff determination.

(C) After submission of a timely notice of appeal, the system shall review all information and issue a senior staff determination. The senior staff membership determination may be appealed as provided in rule 145-1-11 of the Administrative Code.

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.036, 145.037, 145.038, 145.09
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13

145-1-11 Appeal of staff membership determination.

(A) Any affected person may appeal a senior staff membership determination made pursuant to the staff's authority provided in rule 145-1-09 of the Administrative Code to the public employees retirement board as provided in this rule.

(B) The senior staff membership determination shall be in writing and sent by certified mail, return receipt requested. An appeal shall be submitted in writing and received by the executive director not later than sixty days after the date of the senior staff membership determination. It shall state the senior staff membership determination to be reviewed and the basis for the review.

(C)

(1) The retirement board may delegate its authority to hear an appeal to an independent hearing examiner prior to the retirement board making its final decision on the appeal.The hearing may be conducted in person or, based on the agreement of the parties, through written submission.

(a) The independent hearing examiner must be licensed to practice law in the state of Ohio. The independent hearing examiner shall conduct a hearing or review of the parties' written submissions and issue a report and recommendation to the retirement board.

(b) If a hearing is conducted, there shall be a transcript of the hearing. At the hearing, parties to the appeal and staff are permitted to submit evidence in the form of witness testimony and any form of documentation. At the hearing, parties to the appeal may be represented by counsel or other representative, and staff may be represented by the office of the attorney general.

(c) The original report and recommendation shall be sent to the retirement board. Copies of the report and recommendation shall be provided to the parties to the appeal and to staff. Within fifteen days of the date of issuance of the report and recommendation by the hearing examiner, the parties to the appeal and staff may submit written objections to the report and recommendation. The written objections shall be submitted to the retirement board and shall not exceed fifteen pages in length. Copies of the written objections shall be sent to the parties to the appeal and to staff.

(2) If a written objection is filed under paragraph (C)(1)(c) of this rule, the retirement board may permit the parties to the appeal and staff to make a personal appearance before the retirement board prior to the retirement board's final review of the appeal.

(a) If a personal appearance is permitted, the parties to the appeal shall be notified in writing by certified mail, return receipt requested, of the time and place of such appearance.

(b) A party to the appeal may be represented by counsel or other representative at the retirement board meeting at which the personal appearance is scheduled and staff may be represented by the office of the attorney general.

(c) Each party and staff will be given the opportunity to make final arguments, not to exceed five minutes, to the retirement board, and answer any questions of the retirement board.

(d) No additional testimony or documentation from the parties will be accepted by the retirement board during the personal appearance. The staff shall prepare and submit a summary memorandum.

(3) The record of any appeal shall consist of the information submitted by the parties and staff to the hearing examiner , the report and recommendation, the transcript of the hearing, if applicable, any objections to the report and recommendation and the minutes of any personal appearance.

(4) The retirement board shall review the report and recommendation and any objections to the report and recommendation in determining whether to accept, reject, or modify the report and recommendation and may remand to the hearing examiner for further findings before making its final decision.

(5) The parties to the appeal and their representatives shall be notified in writing by certified mail, return receipt requested, of the retirement board's final decision.

(D) The retirement board's decision on any determination conducted pursuant to this rule shall be final and determinative and may be summarily applied to all similarly situated employees of the same employer.

(E) The executive director or the director's designee shall notify the parties to the appeal in writing of any notice required by this rule.

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.036, 145.037, 145.038, 145.09
Prior Effective Dates: 11/17/76, 11/2/91, 2/3/00, 1/5/01, 3/25/02 (Emer.), 6/15/02, 1/1/03, 4/24/07 (Emer.), 8/9/07, 11/30/07, 12/10/12; 1/7/13 (Emer.), 3/24/13

145-1-13 Notice of meetings.

(A) Any person may determine the time and place of all regularly scheduled meetings and the time, place, and purpose of all special meetings by any of the following methods:

(1) Consulting the website of the public employees retirement system atwww.opers.org;

(2) Calling the retirement system during normal business hours at (800) 222-7377.

(3) Requesting electronic notice of all meetings of the public employees retirement board. The retirement system shall maintain a list of all persons and news media who have requested such notification. A request for such notification shall comply with all of the following:

(a) Contain the name of the person making the request and an email address to which electronic notice should be sent;

(b) Be sent to the retirement system by electronic mail to boardnotice@opers.org; and

(c) Be received by the retirement system not less than forty-eight hours prior to any regularly scheduled meeting or special meeting.

(B) The retirement system shall provide notice of meetings in accordance with the following:

(1) For regular meetings, notice shall be given at least four days prior to the meeting and shall specify the time and place of the meeting.

(2) For special meetings, notice shall be given immediately upon scheduling the meeting, but not less than twenty-four hours before the meeting and shall specify the time, place, and purpose of the meeting.

(3) For special meetings in the event of an emergency requiring immediate board action, notice shall be given as soon as possible and shall specify the time, place, and purpose of the meeting.

Replaces: 145-1-13

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 121.22
Rule Amplifies: 145.07, 121.22
Prior Effective Dates: 1/21/76, 4/30/94, 1/1/03, 1/1/06, 12/10/12

145-1-15 Rule on rules.

(A) Except as otherwise provided in Chapter 145. of the Revised Code, the public employees retirement board shall adopt rules pursuant to section 111.15 of the Revised Code.

(B) Any person or organization may obtain notice of any proposed amendment, rescission, or adoption of a rule by making a written request that their name be placed on the mailing list to receive the retirement board's meeting agenda. Notice shall be provided to only one representative of an organization.

(C) Notice of adopted rules after such rules are effective shall be mailed to public employers, and, when applicable, reported in publications sent to members, contributors, or retirants and benefit recipients.

(D) Any form or document referenced in Chapters 145-1 to 145-4 of the Administrative Code shall not be incorporated into such chapters unless specifically provided for within the rule.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.09
Prior Effective Dates: 9/22/76, 9/27/97, 1/1/03, 1/1/06

145-1-21 Federal tax compliance provisions.

(A) This rule is applicable to Chapter 145. of the Revised Code excluding sections 145.80 to 145.98 of the Revised Code.

(B) The board shall distribute the funds established in Chapter 145. of the Revised Code to participants and their beneficiaries in accordance with the provisions of such chapter. No part of the corpus or income of these funds may be used for or diverted to any purpose other than the exclusive benefit of the participants and their beneficiaries.

(C) A member who satisfies the eligibility requirements of section 145.32 or 145.332 of the Revised Code shall have a non-forfeitable right to receive the benefit payable as allowed by Chapter 145. of the Revised Code. If there is a termination of the plan described in sections 145.201 to 145.79 of the Revised Code, the rights of each affected member to the benefits accrued at the date of termination, to the extent then funded, are non-forfeitable.

(D) Employer contribution forfeitures arising from severance of employment, death, or for any other reason of the member may not be applied to increase the benefits any participant would otherwise receive under Chapter 145. of the Revised Code in accordance with section 401(a)(8) of the Internal Revenue Code and applicable regulations thereunder.

(E) Notwithstanding any provision in Chapter 145. of the Revised Code or Chapters 145-1 to 145-4 of the Administrative Code to the contrary, distributions to members and beneficiaries shall be made in accordance with section 401(a)(9) of the Internal Revenue Code and applicable regulations thereunder and with the following rules.

(1) The entire interest of a member shall be distributed to such member:

(a) Not later than the required beginning date; or

(b) Beginning not later than the required beginning date, in accordance with applicable regulations, over the life of such member and a designated beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code.

(2) The required beginning date means April first of the calendar year following the later of:

(a) The calendar year in which the member attains age seventy and one half years of age; or

(b) The calendar year in which the member retires.

(3) If distribution of a member's benefit has begun in accordance with section 401(a)(9) of the Internal Revenue Code and the accompanying regulations, and the member dies, any survivor benefits will be distributed at least as rapidly as under the plan of payment selected and effective as of the date of the member's death.

(4) If a member dies before the distribution of the member's interest has begun in accordance with section 401(a)(9) of the Internal Revenue Code and the accompanying regulations, the entire interest of the member will be distributed within five years after the death of such member. However, if a benefit is payable to or for the benefit of a beneficiary within the meaning of section 401(a)(9) of the Internal Revenue Code, the benefit may be distributed (in accordance with applicable regulations) over the life of such beneficiary (or over a period not extending beyond the life expectancy of such beneficiary), provided that such distributions begin not later than one year after the date of the member's death. If the beneficiary is the surviving spouse of the member, distributions shall not be required, pursuant to this section, to begin until the end of the calendar year in which the member would have attained age seventy and one-half.

(5) Any death benefit amounts payable under Chapter 145. of the Revised Code must comply with the incidental death benefit requirements of section 401(a)(9)(G) of the Internal Revenue Code and regulations thereunder.

(6) A reasonable and good faith interpretation of section 401(a)(9) of the Internal Revenue Code and the final regulations issued December 29, 2004 shall apply to all plan years commencing on and after January 1, 2006.

(7) A retiree or beneficiary who would have been required to receive required minimum distributions for 2009 from an additional annuity or money purchase account but for the enactment of Section 401(a)(9)(H) of the Internal Revenue Code ("2009 RMDs"), and who would have satisfied that requirement by receiving distributions that are (a) equal to the 2009 RMDs or (b) one or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the retiree, the joint lives of the retiree and retiree's designated beneficiary, or for a period of at least ten years ("Extended 2009 RMDs"), will not receive those distributions for 2009 unless the retiree or beneficiary chooses to receive such distributions. Retirees and beneficiaries described in this paragraph shall be given the opportunity to elect to receive the distributions described in this paragraph.

(F) Whenever the amount of any benefit is to be determined on the basis of actuarial assumptions, the assumptions shall be specified by resolution of the board in a way that precludes employer discretion.

(G) The term "spouse" shall mean:

(1) A member's legal spouse at the applicable time.

(2) For purposes of meeting any requirements under the code, an individual who is legally married to a member, including a marriage of same-sex individuals that is validly entered into in a state whose laws authorize the marriage of two individuals of the same sex, even if the individuals are domiciled in a state that does not recognize the validity of same-sex marriages.

(3) As and when required by law, for all purposes under the plan, an individual who is legally married to a member, including a marriage of same-sex individuals that is validly entered into in any state.

Further, the terms "married" and "marriage" shall have a meaning consistent with the definition of spouse at the applicable time. Individuals (whether part of an opposite-sex or same-sex couple) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state are not legally married. For this purpose, the term "state" means any domestic or foreign jurisdiction having the legal authority to sanction marriages.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.09
Prior Effective Dates: 12/27/01 (Emer.), 3/22/02, 1/1/03, 4/1/08 (Emer.), 6/23/08, 1/1/11, 1/7/13 (Emer.), 3/24/13

145-1-23 Determination of employer contribution rate.

(A) The employer contribution rate for a newly created public employer shall be established by examining the enabling statute, ordinance or resolution. If such enabling authority creates a local government employer, or which is primarily funded by such employers, the local government employer contribution rate shall apply. If the enabling authority creates a state government employer, or which is primarily funded by such employers, the state government employer contribution rate shall apply.

(B) If there is a change in an enabling statute, ordinance or resolution that causes an employer contribution rate to no longer be accurate, the employer's rate shall change to the appropriate rate described in paragraph (A) of this rule.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.48
Prior Effective Dates: 7/19/72, 9/27/97, 1/1/03, 1/1/06

145-1-24 Contribution rates.

Pursuant to sections 145.22, 145.47, 145.48, and 145.49 of the Revised Code the public employees retirement board shall establish employee, state government employer, local government employer, public safety, and law enforcement contribution rates after the recommendation by the retirement board's actuary.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.22, 145.47, 145.48, 145.49
Prior Effective Dates: 6/16/76, 7/31/89, 1/1/91, 9/30/91, 9/27/97, 11/2/00, 4/5/01, 3/22/02, 1/1/03, 1/1/10

145-1-26 Definition of earnable salary.

(A) This rule amplifies and is in addition to the provisions of division (R) of section 145.01 of the Revised Code.

(B) As used in division (R)(1) of section 145.01 of the Revised Code and this rule:

(1) "During the year" means the calendar year or not later than one month following the calendar year in which a payment is made;

(2) "Sponsored by the employer" means the employer funded a program in whole or in part.

(C) For purposes of section 145.016 of the Revised Code, the earnable salary for each month upon which a member's service credit is allowed shall be the salary reported by the employer for all pay period end dates in each calendar month or more frequent interval.

(D) Provided the amount is not otherwise excluded from earnable salary under section 145.01 of the Revised Code or this rule, for the purposes of the calculations required pursuant to sections 145.47, 145.48, and 145.49 of the Revised Code, a public employee's salary, wages, or earnings shall include amounts:

(1) Treated as deferred income for federal income taxation under Internal Revenue Code section 401(k), 403(b) or 457;

(2) Designated by the employer as picked-up contributions under Internal Revenue Code section 414(h)(2) by either a salary reduction method or the gross salary under a fringe benefit method; or

(3) Not treated as income for federal income taxation under Internal Revenue Code section 125 except as provided in paragraph (F)(5) of this rule.

(E) For purposes of section 145.01 of the Revised Code and this rule:

(1) "Conversion program" means the employer's annual program for conversion of sick leave, personal leave, and vacation leave, as described in division (R)(1)(b) of section 145.01 of the Revised Code, and that meets all of the following:

(a) The retirement system has received a copy of the employer's resolution, meeting minutes, or other formal documentation detailing the terms and adoption of the conversion program;

(b) The documentation described in paragraph (E)(1)(a) of this rule is submitted annually to the public employees retirement system not later than December thirty-first of the year for which the program applies to determine compliance with section 145.01 of the Revised Code and this rule;

(c) Payments under the conversion program are not issued before the retirement system reviews and approves the program;

(d) Participation in the program is not based on the member's service credit in the retirement system or an agreement to retire.

(2) Earnable salary shall be reported on a report of retirement contributions for the year in which such payment was accrued.

(3) "Leave accrued, but not used" means any leave accrued during the calendar year , less any leave used in the calendar year.

(F) The following payments made by the public employer are "earnable salary":

(1) Payments for overtime worked and payments for accrued but unused compensatory time for overtime worked if such payments are made during the year in which the compensatory time is accrued.

(2) Payments made annually or more frequently as a supplement for longevity of service.

(3) Stipends paid to a student that are subject to federal income taxation.

(4) Payments made for assuming call or stand-by responsibility.

(5) Payments made in lieu of salary, wages, or other earnings for sick leave used under a donated sick leave program.

(G) The following payments made by the public employer are not "earnable salary":

(1) Payments made by the employer for accrued overtime worked or for compensatory time for overtime worked that are made at any time other than in the year in which the overtime or compensatory time is accrued;

(2) Payments made by the employer as a residency bonus to employees;

(3) Payments made pursuant to an agreement and representing either one-time lump-sum payments or bonus payments made periodically but not related to or not made upon the basis of the individual employee's basic rate of pay;

(4) Retroactive payments made by the employer within thirty-six months of the employee's effective date of retirement and with an understanding that the employee would retire;

(5) Monetary amounts that are in excess of the employee's gross salary paid in lieu of a fringe benefit or a cash value placed on that fringe benefit;

(6) The amount in excess of gross salary paid under a fringe benefit method as picked-up contributions under Internal Revenue Code section 414(h)(2);

(7) Stipends paid to a student that are not subject to federal income taxation;

(8) Payments made as honoraria that means a nominal payment made for services for which there is no binding legal obligation to pay;

(9) Payments made as fees or commissions that are fixed charges or calculated as a percentage of an amount , including but not limited to, percentages of sales, tips, amounts paid to individuals who serve on a fee basis or compensation on a per page, per meeting, per inspection, or per emergency response event;

(10) Payments paid by the employer to an individual who is not a public employee;

(11) Payments for accrued, but unused sick leave, personal leave, or vacation leave that are made at the time of termination of employment; and

(12) Reimbursement for expenses.

(H)

(1) If a member or retirant is reinstated without interruption or loss of time to the member or retirant's former or comparable position of employment and awarded back wages pursuant to a final court order, arbitration or personnel board of review order, grievance award, or other settlement or order, the earnable salary upon which employee and employer contributions are due is the earnable salary that would have been due the employee for the entire period of reinstatement."Comparable position" includes positions with similar titles, grades, classifications, occupational categories or salaries.

(a) Employee and employer contributions shall be reported and paid in the same amount as would have been contributed if the member or retirant had been reported to the retirement system during the period of reinstatement. If the member or retirant is reinstated to a comparable position, contributions for the period of reinstatement are based on the salary of the comparable position. If the amount of earnable salary cannot be reasonably determined, then the amount shall be the average earnable salary during the twelve-month period immediately preceding the date of termination.

(b) If a member had previously taken a refund of the member's accumulated contributions pursuant to section 145.40 of the Revised Code or article VIII of the combined plan document at the time of termination, the member may purchase the refunded service pursuant to section 145.31 of the Revised Code or rule 145-3-22 of the Administrative Code.

(c) If a member on or after the date of termination, applied for and received a benefit pursuant to section 145.32, 145.33, 145.332, 145.35, 145.36, 145.361, 145.37, or 145.46 of the Revised Code, article IX or X of the combined plan document, or article IX of the member-directed plan document, and any period of reinstatement is concurrent with a period for which the member received a benefit, section 145.362, 145.38, 145.382, or 145.383 of the Revised Code, whichever is applicable, shall apply.

(2) If a member or retirant is awarded additional earnable salary pursuant to a final court order, arbitration or personnel board of review order, grievance award, or other settlement or order for any period of employment for which contributions were made, the earnable salary upon which employee and employer contributions are due is the additional earnable salary that would have been due for the period of the award. Employee and employer contributions shall be reported and paid in the same amount as would have been contributed if the member or retirant had been reported to the retirement system during the period of employment.

(I)

(1) Prior to remitting deductions on compensation on which there is a question of whether such compensation is earnable salary, the employer shall request a determination by the retirement board.

(2) If the employer fails to request a prior determination and the board determines the salary, wage or earning to be earnable salary, then the employer shall be liable for employee and employer contributions pursuant to section 145.483 of the Revised Code if no deductions have been remitted.

(3) If the employer fails to request a prior determination and the board determines the salary, wage or earning is not earnable salary, then the retirement system may do either of the following:

(a) Except as provided in paragraph (I)(3)(b) of this rule, refund up to a maximum of the current year plus three full calendar years of contributions prior to the current year;

(b) For a member who is within one year of attaining age and service retirement eligibility, refund not more than twelve months of contributions.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.01, 145.09
Rule Amplifies: 145.01, 145.016, 145.47, 145.48, 145.49
Prior Effective Dates: 6/18/86 (Emer.), 8/28/86, 5/27/88, 10/31/88, 3/17/89, 8/31/91, 8/31/92, 6/1/96, 9/27/97, 11/2/00, 1/1/03, 1/1/06, 1/1/07, 1/1/12, 1/7/13 (Emer.), 3/24/13, 1/1/14, 7/1/14

145-1-27 Remittance of employer liabilities.

(A) For the purposes of this rule:

(1) "Employer account summary" means the statement issued each calendar month, quarter, or year by the public employees retirement system to a public employer that represents the obligations for the preceding calendar period.

(2) "Employer liabilities" means any amount due to the retirement system under Chapter 145. of the Revised Code or section 3305.06 of the Revised Code but does not mean nor include employee contributions or deductions due pursuant to section 145.47 or 145.294 of the Revised Code.

(3) "Received" means actual receipt by the retirement system, the postmark date, or the date scheduled to pay via electronic payment.

(4) "Supplemental report" has the same meaning as in rule 145-1-28 of the Administrative Code.

(5) The ninetieth day and thirtieth day shall be computed in the method as described in section 1.14 of the Revised Code.

(B)

(1) Employer liabilities shall be received by the retirement system not later than the ninetieth day after the calendar end of the quarter in which it became a liability.

(2) Beginning on January 1, 2008, employer liabilities shall be received by the retirement system not later than the thirtieth day after the last day of the calendar month for which related member contributions are withheld.

(C)

Employer liabilities received after the due date described in paragraph (B) of this rule shall be assessed penalties and interest pursuant to division (C) of section 145.51 of the Revised Code.

(D)

(1) Notwithstanding paragraph (B)(1) of this rule, amounts due from an employer based on a supplemental report shall be received by the retirement system not later than the end of the quarter following the date the supplemental report was received. .

(2) Notwithstanding paragraph (B)(2) of this rule, amounts due from an employer based on a supplemental report shall be received by the retirement system not later than the thirtieth day after the last day of the calendar month following the date the supplemental report was received.

(3) If the amount due under the supplemental report as described in this paragraph is past due, interest and penalty on the amount shall be assessed in the same manner as described in division (C) of section 145.51 of the Revised Code.

(E) Pursuant to division (A)(2) of section 145.01 of the Revised Code, the governmental unit with which the contract has been made as described in that section shall remain the employer for purposes of section 145.51 of the Revised Code and this rule.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.51
Prior Effective Dates: 5/31/97, 9/27/97, 1/1/03, 1/1/06, 4/6/07 (Emer.), 7/1/07, 1/1/14

145-1-28 Remittance of employer contributions.

(A) For the purposes of this rule and sections 145.294 and 145.47 of the Revised Code:

(1) "Employee contribution" means the full amount of employee contributions due for a particular reporting period pursuant to section 145.47 of the Revised Code or employee deductions pursuant to section 145.294 of the Revised Code.

(2) "Filed" means actual receipt by the public employees retirement system, the postmark date, or the date scheduled to pay via electronic payment.

(3) "Report" means a record of the employee contributions that is free from errors or omissions and is in the form required by the public employees retirement board.

(4) "Reporting period" means the monthly or more frequent interval for which an employer reports employee contributions that contains all pay period ending dates occurring in the calendar month.

(5) "Supplemental report" means a report of employee contributions that is submitted by the employer in addition to the regular report due to the employer's need to report additional contributions for the employer's payment of a disability payment, retroactive salary payment, payment pursuant to a settlement agreement, longevity payment, payment to a terminated or deceased employee, or payment to an election worker that requries membership in the system.

(6) The thirtieth day shall be computed in the method as described in section 1.14 of the Revised Code.

(B) The employer shall transmit for each reporting period subsequent to the date of coverage an amount equal to the applicable percent of each contributor's earnable salary. Both employee contributions to the retirement system and a corresponding report shall be filed with the system no later than the thirtieth day after the last day of the reporting period for which they are due.

(C) For employee contributions due on or after the effective date of this rule, if either an employee contribution or the corresponding report is not filed on or before the thirtieth day after the last day of the reporting period for which they were due, a penalty as described in section 145.47 of the Revised Code shall be added.

(D)

(1) Upon submission of a supplemental report, the employer shall also submit additional documentation, as required by the retirement system, to substantiate the nature and reason for the supplemental report.

(2) Notwithstanding paragraph (B) of this rule, the supplemental report, the corresponding contributions, and the documentation required in paragraph (D)(1) of this rule shall be received by the system not later than the thirtieth day after the last day of the month during which the member was paid the supplemental amount.

(3) Failure to provide any of the items in paragraph (D)(2) of this rule by the date specified in that paragraph shall cause the deductions to be subject to the penalty described in paragraph (C) of this rule.

(E) If a member elects to have additional contributions remitted to the retirement system pursuant to section 145.2916 of the Revised Code, the contributions shall be remitted concurrently with the period of denied salary.

(F) Pursuant to division (A)(2) of section 145.01 of the Revised Code, the governmental unit with which the contract has been made as described in that section shall remain the employer for purposes of section 145.47 of the Revised Code and this rule.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.294, 145.2916, 145.47
Prior Effective Dates: 1/1/06, 1/1/11, 1/7/13 (Emer.), 3/24/13, 1/1/14, 5/8/14

145-1-31 Payment for periods of noncontributing service.

(A) This rule amplifies section 145.483 of the Revised Code.

(B) For purposes of this rule:

(1) "Exempt" means exempt from membership in the public employees retirement system pursuant to Chapter 145. of the Revised Code as effective during the period of noncontributing service and for which there is a properly executed written exemption.

(2) "Excluded" means excluded from membership in the retirement system because Chapter 145. of the Revised Code specifically excludes a person, or the person is not a public employee.

(3) "Noncontributing service" means a period of employment or service for which employee contributions pursuant to section 145.47 of the Revised Code were due, but not deducted by an employer, because the service was neither exempt nor excluded.

(4) "Properly executed written exemption" means:

(a) For employment which began before November 20, 1973, an exemption form provided by the retirement system which was signed by both the employee and employer and received by the retirement system within one month from the date employment began.

(b) For employment beginning on or after November 20, 1973, an exemption form provided by the retirement system which was signed by both the employee and employer, received by the retirement system within one month from the date employment began, and approved by the retirement system.

(C) An employer that failed to deduct employee contributions from a public employee during a period of employment, after January 1, 1935, for state employees or after July 1, 1938, for all other employees, for which employee contributions were required shall certify the earnable salary for such noncontributing service period on a form provided by the retirement system. This certification must be based on records available to the employer.

(D)

(1) After receipt of the employer's certification, the retirement system shall prepare an employer billing statement for employee and employer contributions and interest for the period of noncontributing service.

(2) Interest shall be calculated through the end of the year preceding the date of the employer billing statement.

(3) The amount of employee contributions shall be calculated using the employee contribution rate, earnable salary and maximum contribution limits in effect during the period of noncontributing service.

(4) The amount of employer contributions shall be calculated using the employer contribution rate in effect during the period of noncontributing service.

(5) The employer is liable for the total amount due in the employer billing statement.

(6) If the amount contained in the employer billing statement is not paid it will be added to the employer's quarterly billing summary.

(E)

(1) An employer shall not be billed for a period of noncontributing service which occurred before a period of contributing service for which a member received a refund of the member's accumulated contributions, pursuant to section 145.40 of the Revised Code or Article VIII of the combined plan document, until the member has made a redeposit of the refund, pursuant to section 145.31 of the Revised Code or rule 145-3-22 of the Administrative Code.

(2) The following applies when an employee who is or was exempt from membership pursuant to section 145.03 of the Revised Code with a public employer also has noncontributing service and is an employee with the same public employer.

(a) Absent a written exemption, the period of noncontributing service shall be billed to the employer pursuant to section 145.483 of the Revised Code and this rule.

(b) An employer shall not be billed for periods of exempt service that are subsequent to a period of noncontributing service unless the subsequent period of exempt service begins within three months from the last date of compensation for the noncontributing service.

(3) A member who has service that was exempt and not billed to an employer may purchase such exempt service pursuant to section 145.28 of the Revised Code and PERS rules.

(F) Except as provided in paragraph (F)(4) of this rule:

(1) Employee contributions paid by the employer pursuant to section 145.483 of the Revised Code and this rule shall be held in the employers' accumulation fund as defined in division (B) of section 145.23 of the Revised Code.

(2) Employee contributions paid by the employer, pursuant to section 145.483 of the Revised Code and this rule, shall be refunded to such employer in the event the member receives a refund of the member's accumulated contributions pursuant to section 145.40 of the Revised Code or a distribution under article VIII of the combined plan document. Amounts paid for employer contributions, interest or other fees, pursuant to section 145.483 of the Revised Code, shall remain with the retirement system.

(3) The employer which received employee contributions, pursuant to paragraph (F)(2) of this rule, shall be liable for a return of such employee contributions if the employee again becomes a member of the retirement system and either makes a redeposit pursuant to section 145.31 of the Revised Code or rule 145-3-22 of the Administrative Code. The retirement system shall bill the employer for the employee contributions plus interest calculated from the date of the refund through the end of the year preceding the date of the statement.

(4)

(a) For members participating in the member-directed plan, employee contributions and interest paid by the employer pursuant to section 145.483 and this rule shall be held in the member's employer contribution account, as defined in section 1.19 of the member-directed plan document. The amount credited to the member's employer contribution account pursuant to section 145.483 of the Revised Code shall vest in accordance with section 7.02 of the member-directed plan document. If the member receives a distribution under article VII of the member-directed plan document, the non-vested portion of the employee contributions shall be refunded at the employer.

(b) For members participating in the member-directed plan, employer contributions and interest paid by the employer pursuant to section 145.483 of the Revised Code and this rule shall be credited to the member's employer contribution account, as defined in section 1.19 of the member-directed plan document, and the retiree medical account, as defined in rule 145-4-01 of the Administrative Code, in the percentages determined by the OPERS board. The amount credited shall vest in accordance with the relevant provisions of the member-directed and retiree medical account plan documents. If the member receives a distribution under article VIII of the member-directed plan document, the non-vested portion of the amounts paid for employer contributions, corresponding interest or other fees pursuant to section 145.483 of the Revised Code shall be transferred as described in section 7.04 of the member-directed plan document or section 4.02 of the retiree medical account plan document, as applicable.

(G) If a member has contributions in more than one retirement plan, the contributions paid by the employer pursuant to section 145.483 of the Revised Code shall be credited to the plan in which the noncontributing service would have been earned, if it were remitted at the time the service occurred. If the member no longer has contributions in the retirement plan in which the noncontributing service would have been earned, the contributions paid by the employer pursuant to section 145.483 of the Revised Code shall be credited to the plan in which the member is now contributing.

Effective: 9/1/2016
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.47, 145.48, 145.483, 145.49
Prior Effective Dates: 12/20/72, 11/2/91, 10/4/93, 5/3/97, 11/2/00, 1/1/03, 1/1/06, 1/1/09, 7/11/09, 1/1/16, 7/1/16 (Emer.)

145-1-33 Omitted contributions.

All payments made by employees and their employers for omitted contributions, completed before January 25, 1972, having been made in accordance with the board policy interpreting the statute in effect at the time of payment, are proper and are not subject to recomputation.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.47, 145.48
Prior Effective Dates: 6/18/75, 1/1/03

145-1-35 Service purchase.

(A) For purposes of Chapter 145. of the Revised Code and Chapters 145-1 to 145-4 of the Administrative Code:

(1) "Service purchase" means both of the following:

(a) For members participating in the traditional pension plan, payment for the purchase of service credit pursuant to section 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 145.299, 145.2915, 145.301, 145.302, 145.31, or 145.47 of the Revised Code, former section 145.295, 145.2911, or 145.2913 of the Revised Code as they existed prior to January 7, 2013, or rule 145-2-18 of the Administrative Code.

(b) For members participating in the combined plan, payment for the purchase of service credit pursuant to section 145.20, 145.201, 145.291, 145.292, 145.293, 145.299, 145.2915, 145.302, or 145.47 of the Revised Code, former section 145.295, 145.2911, or 145.2913 of the Revised Code as they existed prior to January 7, 2013, rule 145-3-21, 145-3-22, or 145-3-40 of the Administrative Code, or section 3.11 or 3.12 of the combined plan document.

(2) "One-time or lump-sum payment" means a service purchase that is the full cost of the service credit a member elects to purchase and is paid directly to the public employees retirement system.

(3) "Partial payment" means a service purchase that is less than the full cost of the service credit a member elects to purchase and is paid directly to the retirement system.

(4) "Payroll deduction" means a service purchase made pursuant to section 145.294 of the Revised Code and rule 145-1-38 of the Administrative Code.

(5) A "statement of cost" means a bill prepared by the retirement system stating the cost of the service credit to be purchased. If a statement of cost described in this paragraph is not paid in full prior to its expiration, the member may complete the purchase of the remaining service credit by a lump sum or one-time partial payment of the cost, as recalculated by the system at the time of the final payment.

(6) "Sixty-month amortization amount" means the monthly dollar amount necessary to complete a service purchase prior to the expiration of a statement of cost.

(B) A member participating in the traditional pension plan or combined plan may make a service purchase, pursuant to Chapter 145. of the Revised Code and Chapters 145-1 to 145-4 of the Administrative Code and federal Internal Revenue Code section 415, either directly to the retirement system or by payroll deduction. A statement of cost issued on or after July 7, 2013, shall expire not later than five years after the date of the first payment or first deduction.

(C)

(1) Except as otherwise provided in Chapter 145. of the Revised Code, the interest rate to be used in calculating the cost of a service purchase shall be six per cent compounded annually. Beginning on January 1, 2014, the interest rate shall be a per cent equal to the assumed actuarial rate of interest compounded annually. Interest shall be calculated under the applicable Revised Code section from the first date through the end of the month of payment.

(2) Interest shall be applied to unpaid balances of service purchases by partial payment or payroll deduction at a rate equal to the assumed actuarial rate of interest compounded annually after the first payment or deduction. Interest shall be calculated from the date of the first payment through the last day of the month in which the cost statement expires.

(3) The public employees retirement board may adjust the interest rates in paragraphs (C)(1) and (C)(2) of this rule. If adjusted, the new interest rate shall apply to any statement of cost issued or initial payroll deduction begun after the adjustment.

(D) If the retirement system is required to apply the member's contribution rate at the time the service occurred against the member's earnable salary in calculating the cost of a service purchase, such rate shall not exceed the maximum employee contribution limits that were applicable at the time the service occurred.

(E)

(1) Service credit shall be granted following receipt of all lump-sum payments, partial payments, or payroll deductions received in a month.

(2) Except as otherwise provided in Chapter 145. of the Revised Code, when a member makes a service purchase by partial payment or by payroll deduction, interest at a per cent equal to the assumed actuarial rate of interest compounded annually shall be applied to the unpaid balance. The minimum payment accepted by the system shall be the greater of one hundred dollars or the sixty-month amorization amount. The system may recalculate the sixty-month amortization amount when the member's payment or payments cause a material increase or reduction in the sixty-month amorization amount, as determined by the system. Service credit shall be granted by multiplying the service credit not yet purchased by a fraction having as the numerator the payment amount less current interest paid and as the denominator the unpaid balance on which the current interest was calculated.

(F)

In addition to the requirements specified in paragraph (B) of this rule, all service purchases shall be completed prior to issuance of the initial benefit payment. Subject to the requirements specified in paragraph (B) of this rule, a disability benefit recipient may purchase service credit after the issuance of the initial benefit payment while on a leave of absence described in section 145.362 of the Revised Code. Any service purchased by a disability benefit recipient during the leave of absence described in this paragraph shall take effect on the first day of the month following the date of purchase.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.294, 145.80, 145.82
Rule Amplifies: 145.01, 145.20, 145.201, 145.28, 145.29 , 145.291, 145.292, 145.293, 145.294, 145.299, 145.301, 145.302, 145.31, 145.47, 145.81
Prior Effective Dates: 8/20/76, 1/1/78, 12/14/89, 5/29/95, 11/2/96, 9/27/97, 9/27/98, 3/27/99, 2/3/00, 3/22/02, 1/1/03, 12/24/04, 1/1/06, 7/1/07 (Emer.), 8/9/07, 1/12/08, 4/1/08 (Emer.), 6/23/08, 1/1/12, 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13, 5/8/14, 1/1/15, 3/23/15 (Emer.), 6/6/15

145-1-36 Service credit purchase under Substitute S.B.343.

(A) This rule amplifies section 4 of Substitute S.B. 343 of the 129th General Assembly.

(B) For purposes of this rule, "service credit" means all of the following:

(1) Service credit that may be purchased or obtained under former division (H) of section 145.01 and former sections 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.299, 145.30, and 145.47 of the Revised Code, as those sections existed immediately prior to January 7, 2013.

(2) Additional contributions paid by a member under former division (Y) of section 145.01 of the Revised Code, as that section existed immediately prior to January 7, 2013.

(3) Service credit that may be purchased under section 145.301 of the Revised Code.

(4) Service credit that may be purchased or obtained under section 145.814 of the Revised Code or rule 145-2-18 or 145-3-40 of the Administrative Code for an election that is effective on or before July 1, 2013, under section 2.03 of the combined or member-directed plan document, as amended on January 7, 2013.

(C) Except as provided in paragraph (E) of this rule, each member who is purchasing or is eligible to purchase service credit must initiate or continue the purchase by making one or more direct payments to the public employees retirement system during the period beginning on January 7, 2013, and ending on July 7, 2013, or by commencing a payroll deduction during the same period as described in this rule and in rule 145-1-38 of the Administrative Code. A payroll deduction shall be initiated if the system receives a payroll deduction form with a postmark date that is on or after January 7, 2013, but not later than July 7, 2013, and the amount to be deducted from the member's payroll is received by the system not later than one hundred twenty days after the postmark date.

(D) Except as provided in paragraph (E) of this rule, each member is who eligible to obtain service credit under former section 145.30 of the Revised Code shall initiate a request to obtain the credit during the six-month period described in paragraph (C) of this rule. A request shall be initiated if the system receives during the same period described in this paragraph the member's report(s) of separation (form DD214) or other satisfactory documentation as evidence of the member's military service accompanied by a request by the member to obtain the credit.

(E) A member who, by reason of service in the uniformed services as defined in section 145.302 of the Revised Code, is prevented from taking action under paragraph (C) of this rule may, not later than ninety days after the reemployment with member's public employer, apply to the system to have reestablished all or a portion of the six-month period described that paragraph. The member shall submit to the system report(s) of separation (form DD214) or other satisfactory documentation as evidence of the member's military service.

(F) A member who, as of January 7, 2013, has made a partial payment or is subject to a post-tax payroll deduction agreement for the purchase of service credit under section 145.201 of the Revised Code may, during the six-month period described in paragraph (C) of this rule, request that the member's cost statement or payroll deduction agreement be recalculated to include any additional credit the member is eligible to purchase under section 145.201 of the Revised Code. If the system does not receive a request from the member prior to the end of the six-month period, any additional credit the member is eligible to purchase under section 145.201 of the Revised Code shall be eligible for purchase under rules 145-2-02 and 145-3-23 of the Administrative Code.

(G) A member described in division (C) of section 4 of Substitute S.B. 343 of the 129th General Assembly is ineligible to purchase additional service credit as described in that division if any of the service upon which the purchase is based has a monthly earnable salary of less than one thousand dollars.

(H) A purchase of service credit under this rule shall be completed by the member not later than July 7, 2018.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: Section 4of Sub. S.B. 343, 129th GA
Prior Effective Dates: 1/7/13 (Emer.), 3/24/23

145-1-37 Purchases made with a rollover distribution.

(A) For purposes of this chapter, "eligible rollover distribution" or "rollover distribution" means any amount that qualifies as an eligible rollover distribution under section 402(c)(4) of the Internal Revenue Code of 1986, 26 U.S.C.A. 415, and paid to a member or the surviving spouse of the member from:

(1) Another employer plan qualified under section 401(a) of the Internal Revenue Code;

(2) An individual retirement account, or annuity other than an endowment contract, under section 408 of the Internal Revenue Code;

(3) A governmental deferred compensation plan under section 457 of the Internal Revenue Code;

(4) An annuity plan under section 403(a) of the Internal Revenue Code; or

(5) A tax-sheltered annuity qualified under section 403(b) of the Internal Revenue Code.

(6) A governmental plan under section 414(d) of the Internal Revenue Code.

(7) A keogh plan under section 410 of the Internal Revenue Code of 1986, 26 U.S.C.A. 410.

(B)

(1) The public employees retirement system may accept eligible rollover distributions for the purchase of service credit pursuant to section 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.31, or 145.47 of the Revised Code, section 3.11 or 3.12 of the combined plan document, or the deposit to an additional annuity account pursuant to section 145.62 of the Revised Code.

(2)

(a) A member or surviving spouse must be otherwise eligible to purchase the service credit or deposit to an additional annuity account pursuant to Chapter 145. of the Revised Code and Chapters 145-1 to 145-4 of the Administrative Code.

(b) A retirant reemployed under section 145.38, 145.382, or 145.383 of the Revised Code may use a rollover distribution to deposit only an additional annuity account.

(c) A combined or member-directed plan retirant may use a rollover distribution to deposit to an additional annuity account or as provided in article V of the combined or member-directed plan document.

(3) The retirement system shall accept rollover distributions for a purchase of service that is made only by post-tax payroll deduction, partial, or one-time lump-sum payment as defined in rule 145-1-35 of the Administrative Code.

(4)

(a) If the amount of the rollover distribution received by the retirement system exceeds the cost of the service to be purchased, the amount in excess shall be returned to the financial institution that transmitted the rollover.

(b) If the financial institution will not accept the excess rollover amount, the retirement system shall pay the amount in excess to the member. Any amount that the retirement system cannot return to the financial institution or member shall be deposited in an additional annuity account or the member's rollover account, as appropriate based on the member's retirement plan.

(C) An eligible rollover distribution of a member participating in the combined plan may be:

(1) Credited to the member in the member's rollover account, as defined in section 1.35 of the combined plan document; or,

(2) If used to purchase any service credit available under the combined plan, as described in rule 145-3-21 of the Administrative Code, credited to the member in the employee's savings fund or any other appropriate fund under section 145.23 of the Revised Code.

(D) Any non-taxable portion of an eligible rollover distribution to a member of the combined plan or member-directed plan shall be treated in accordance with section 5.01 of the member-directed or combined plan document.

(E) A member who is entitled to a distribution from this retirement system that qualifies as an eligible rollover distribution pursuant to sections 401(a)(31) and 402(f)(2)(A) of the Internal Revenue Code may request that the distribution be paid in a direct rollover to another eligible retirement plan to the extent permitted by section 401(a)(31) of the Internal Revenue Code.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80, 145.82
Rule Amplifies: 145.01, 145.20, 145.201, 145.23, 145.28, 145.29, 145.291, 145.292, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.31, 145.452, 145.47, 145.62, 145.81
Prior Effective Dates: 12/6/93, 11/2/96, 3/27/99, 1/1/02 (Emer.), 3/22/02, 1/1/03, 1/1/06, 4/6/07 (Emer.), 7/1/07, 1/1/12, 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13

145-1-38 Purchase of service credit by payroll deduction.

(A)

(1) A member of the public employees retirement system who is participating in the traditional pension plan may purchase service credit by post-tax payroll deduction, pursuant to this rule, rule 145-2-18 of the Administrative Code, section 145.20, 145.201, 145.28, 145.291, 145.292, 145.293, 145.301, 145.302, or 145.31, of the Revised Code, or former section 145.295 or 145.2911 of the Revised Code as they existed prior to January 7, 2013.

(2) A member who is participating in the combined plan may purchase service credit by post-tax payroll deduction pursuant to this rule, rule 145-3-40 of the Administrative Code, section 145.20, 145.201, 145.291, 145.292, 145.293, or 145.302 of the Revised Code, former section 145.295 or 145.2911 of the Revised Code as it existed prior to January 7, 2013, or section 3.11 or 3.12 of the combined plan document.

(3) Under a plan that is in compliance with Internal Revenue Code section 414(h)(2), a member may complete a purchase of service credit by pre-tax payroll deduction with amounts designated by the member's employer as picked-up contributions which is also known as an irrevocable pre-tax payroll deduction agreement as permitted by paragraph (E)(2) of this rule.

(4) A member may purchase service credit in any combination of lump sum payment, partial payment, or post-tax payroll deductions.

(B)

(1) Upon a member's request for purchase of service credit by post-tax payroll deduction the retirement system shall prepare a payroll deduction form that is in compliance with rule 145-1-35 of the Administrative Code and states all of the following:

(a) The service to be purchased;

(b) The total cost of the service credit to be purchased;

(c) Alternate plans of monthly payments.

(2) The member shall complete such payroll deduction form by marking a plan of payment, signing the authorization for payroll deduction and returning the form to the retirement system.

(3) A separate payroll deduction form shall be completed for each separate type of service credit.

(C)

(1) After receipt of the member's post-tax payroll deduction form, the retirement system shall notify the member's employer that payroll deductions shall begin within sixty days.

(2) The employer shall report at least monthly all members who have authorized payroll deductions on one report provided by the retirement system. Payment shall be remitted with this report. If the employer fails to timely file a report or remit payment to the retirement system, the employer shall be subject to the same penalty and interest described in section 145.47 of the Revised Code.

(D)

(1) A member may increase or decrease the member's post-tax payroll deduction by written notice to the member's employer.

(2) Except as provided in paragraph (E)(2) of this rule, a payroll deduction shall be terminated:

(a) Within thirty days after a member's written notice to the member's employer;

(b) Upon termination of employment;

(c) Upon termination of participation in the plan under which the payroll deduction commenced.

(3) Except as provided in paragraph (E)(2) of this rule, a payroll deduction shall be suspended for any period that the payroll deduction exceeds the member's net pay.

(4) A member may request to purchase the remainder of a service purchase that is being made by post-tax payroll deduction. Upon receipt of such request, the retirement system shall provide the member with a statement of the balance due for the remaining service credit available. A member shall notify the member's employer to terminate deductions upon payment of the balance due.

(E) The retirement system shall accept new elections to purchase service credit by pre-tax payroll deduction, as described in paragraph (A)(3) of this rule, only if such election is received by the retirement system or post-marked on or before December 31, 2011.

(1) A member who, on December 31, 2011, is purchasing service credit through a pre-tax deduction agreement may make an irrevocable election, on a form provided by the retirement system and received by the retirement system not later than March 31, 2012, to have the deduction agreement terminated. The member may purchase the balance of the service credit by any other method permitted by the retirement system.

(2) A member who does not elect to terminate the pre-tax deduction agreement shall continue under the agreement for the duration of the purchase period. A member who is purchasing service credit under a pre-tax deduction agreement may not purchase the period of service subject to the agreement through any other method while the agreement is in effect. The member and employer shall not:

(a) Decrease or increase such payroll deduction;

(b) Terminate such payroll deduction unless the member has terminated employment, terminated participation in the plan under which the payroll deduction commenced, is reported by the employer as laid off for at least six consecutive months, or all of such service credit has been purchased by such payroll deduction; or

(c) Make a partial payment as defined in rule 145-1-35 of the Administrative Code.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80, 145.82
Rule Amplifies: 145.01, 145.20, 145.201, 145.28, 145.29, 145.291, 145.292, 145.293, 145.294, 145.301, 145.302, 145.31, 145.81
Prior Effective Dates: 12/4/89, 12/3/90, 11/2/96, 2/1/97, 3/27/99, 1/1/03, 1/1/06, 7/1/07 (Emer.), 8/9/07, 1/1/09, 1/1/11, 1/1/12, 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13

145-1-39 Replacement of payments.

The public employees retirement system may issue a replacement payment for a previously issued payment which has been lost, stolen or destroyed if the payee of such payment makes application for a replacement payment on a form provided by the retirement system. The replacement payment shall not be issued any earlier than five business days or any later than thirteen business days after a stop payment order is made on the previous payment. Any replacement payments issued by a third-party administrator shall be issued in accordance with the operating policies of the third-party administrator.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.33, 145.331, 145.332, 145.36, 145.361, 145.37, 145.384, 145.40, 145.43, 145.45, 145.46, 145.63, 145.64, 145.65, 145.81
Prior Effective Dates: 10/21/70, 4/5/93, 1/1/03, 1/1/06, 4/6/07 (Emer.), 7/1/07, 1/1/11, 1/7/13 (Emer.), 3/24/13

145-1-41 Membership determination.

(A) In making any determination as to whether an individual is a contract employee or independent contractor under section 145.036 of the Revised Code, the public employees retirement board shall review, including but not limited to, the elements described in paragraphs (A)(1) and (A)(2) of rule 145-1-42 of the Administrative Code.

(B) If the employer fails to request a determination and the retirement board determines the individual should be a member, then the employer shall be liable for employee and employer contributions pursuant to section 145.483 of the Revised Code if no deductions have been made.

(C) If the employer fails to request a determination and the retirement board determines the individual shall not be a member, then any employee contributions received prior to the determination are unauthorized and shall be returned to the employer. Any employer contributions shall be credited against future employer liabilities.

(D) A public employer who engages or contracts with a business entity as defined in section 145.037 of the Revised Code is not required to perform the acknowledgment provisions described in section 145.038 of the Revised Code with regard to the business entity.

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.012, 145.036, 145.037, 145.038
Prior Effective Dates: Date 8/31/92, 9/27/98, 1/1/03, 1/1/06, 1/7/13 (Emer.), 3/24/13

145-1-42 Services under a contract.

(A) For purposes of Chapter 145. of the Revised Code, and Chapter 145-1 of the Administrative Code, the following definitions apply:

(1) "Contract employee" means an individual who:

(a) Is a party to a bilateral agreement which may be a written document, ordinance, or resolution that defines the compensation, rights, obligations, benefits and responsibilities of the individual as an employee;

(b) Is paid earnable salary at a specific periodic rate for services personally performed for the public employer and who appears on the employer's payroll;

(c) Is eligible for workers' compensation or unemployment compensation;

(d) May be eligible for employee fringe benefits such as vacation or sick leave;

(e) Is controlled or supervised by personnel of the public employer as to the manner of work; and

(f) Should receive an Internal Revenue Service form W-2 for income tax reporting purposes.

(2) "Independent contractor" means an individual who:

(a) Is a party to a bilateral agreement which may be a written document, ordinance, or resolution that defines the compensation, rights, obligations, benefits and responsibilities of both parties;

(b) Is paid a fee, retainer or other payment by contractual arrangement for particular services;

(c) Is not eligible for workers' compensation or unemployment compensation;

(d) May not be eligible for employee fringe benefits such as vacation or sick leave;

(e) Does not appear on a public employer's payroll;

(f) Is required to provide his own supplies and equipment, and provide and pay his assistants or replacements if necessary;

(g) Is not controlled or supervised by personnel of the public employer as to the manner of work; and

(h) Should receive an Internal Revenue Service form 1099 for income tax reporting purposes.

(3) "Personal service contract" means the same as a contract for an independent contractor.

(B)

(1)

(a) A contract employee is a public employee and shall become a contributor to the public employees retirement system.

(b) Contributions are due on the employee's earnable salary, as defined in division (R) of section 145.01 of the Revised Code and rule 145-1-26 of the Administrative Code, which is paid by the public employer to the employee for services actually performed by the employee.

(2) An independent contractor is not a public employee and shall not become a contributor to the retirement system.

(C) Notwithstanding rule 145-1-26 or 145-1-53 of the Administrative Code, if a contract employee performs services for which the employee also receives a payment, fee or commission over and above services for which the employee receives earnable salary, and for which the individual is an independent contractor , the payments for those services over and above their salary services are not earnable salary. The employee is not a member for such additional services, no contributions are due, and no service credit shall be granted.

(D) An individual who entered into a personal service contract with a public employer prior to August 20, 1976, shall be a member of the retirement system and contributions shall be remitted for the remaining period of the contract if the duties and working relationship are substantially similar to a classification position paid on the payroll of the public employer.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.012, 145.036, 145.037, 145.038, 145.38
Prior Effective Dates: 8/31/92, 9/27/98, 1/1/03, 1/1/06, 1/7/13 (Emer.), 3/24/13

145-1-43 Alternative retirement programs.

(A) For the purpose of this rule:

(1) "Administrative employee" means an administrative employee as defined in division (A) of section 3305.05 of the Revised Code for whom the public employees retirement system would be the applicable state retirement system.

(2) "Eligible employee" means an employee as defined in division (C) of section 3305.01 of the Revised Code for whom this retirement system would be the applicable state retirement system.

(3) "Election period" means:

(a) For an administrative employee who was eligible to make an election under division (B) of section 3305.051 of the Revised Code, the one hundred twenty days after the employee's first day on the institution's payroll or the employee was reclassified as an administrative employee.

(b) For administrative employees who were eligible to make elections under division (C) of section 3305.051 of the Revised Code, the one hundred twenty days after the effective date of the alternative retirement program adopted by the institution.

(c) For an eligible employee who is eligible to make an election under division (B)(2) or (B)(3) of section 3305.05 of the Revised Code, the one hundred twenty days after the employee's first day on the institution's payroll or, in the case of a part-time employee who is transferred to a full-time position, one hundred twenty days from the first date of full-time employment.

(4) "Employee" means either an administrative employee or an eligible employee.

(5) "Institution" means a public institution of higher education as defined in division (A) of section 3305.01 of the Revised Code.

(B) Within thirty days of its adoption of an alternative retirement plan under Chapter 3305. of the Revised Code, an institution shall notify the retirement system of its adoption of the plan on a form provided by the retirement system. A copy of the plan adopted shall be attached to the form. The institution also shall file a report in the manner and form prescribed by the retirement system of all current employees.

(C)

(1) Each institution that employs an employee eligible to elect an alternative retirement program shall:

(a) Notify the retirement system at the time it employs the employee, but in no event later than ten days after the employee's first day on the institution's payroll.

(b) Notify the retirement system at the time an employee of the institution changes to a classification which qualifies the employee to elect an alternative retirement plan, but in no event later than ten days after such change.

(2) The notice required under paragraph (C)(1) of this rule shall be given on a form provided by the retirement system, and shall include the employee's name, address, social security number, date of birth, and any other information required by the retirement system.

(D)

(1) Elections by an employee of an alternative retirement plan shall be made on a form provided by the retirement system and completed by the employee and the institution.

(2) Not later than ten days after an election is filed with the institution, the institution shall file a copy with the retirement system of the election made by an employee.

(E)

(1) Elections made by employees under division (B)(2) or (B)(3) of section 3305.05 of the Revised Code or division 3305.051 of the Revised Code will be implemented no later than thirty days after a copy of the employee's election is filed with the retirement system.

(2) The election, when implemented, shall be effective as of the first day upon which the employee appears on the institution's payroll or was reclassified to a position as an administrative or eligible employee.

(3) Once an election is filed with the retirement system, the death of the employee shall not affect such election and the election shall be implemented and effective as set forth in this rule.

(F)

(1) Elections made by employees under division (C) of section 3305.051 of the Revised Code will be implemented no later than thirty days after the copy of the employee's election is filed with the retirement system.

(2) The election, when implemented, shall be effective as of the following dates:

(a) On March 31, 1998, where the public institution's alternative retirement program is established on or after December 8, 1998, but no later than March 31, 1999; or

(b) On the first day of the month in which the public institution's alternative retirement program is established where the program is established after March 31, 1999.

(3) Once an election is filed with the retirement system, the death of the employee shall not affect such election and the election shall be implemented and effective as set forth in this rule.

(G)

(1) Employee and employer contributions for an employee shall be collected and remitted to the retirement system until an election is implemented pursuant to paragraph (E)(1) or (F)(1) of this rule.

(2) Those employee and employer contributions received after the effective date of an election as determined by this rule for an employee who elects an alternative retirement plan shall be returned as unauthorized contributions to the provider identified on the form required by paragraph (D) of this rule. The amount of employer contributions refunded shall be less the amount due pursuant to division (D) of section 3305.06 of the Revised Code.

(H)

(1) An application under division (B) of section 145.40 of the Revised Code for transfer of a member's accumulated contributions to the provider of an alternative retirement plan shall be made on a form provided by the retirement system.

(2) The institution shall certify:

(a) The name and address of the institution's plan administrator; and

(b) The plan is eligible to receive a trustee-to-trustee transfer from the retirement system, which is a plan qualified under Internal Revenue Code section 401(a).

(3) If an employee dies prior to the transfer of their account to an alternative retirement plan, the application shall be cancelled.

(I) Not later than the thirtieth day of each month following a month in which an employee who elected an alternative retirement plan was on the institution's payroll, the institution shall:

(1) Remit to the retirement system the contributions required under division (D) of section 3305.06 of the Revised Code.

(2) Submit a report in a form and manner prescribed by the retirement system of all employees who elected an alternative retirement plan and appeared on the institution's payroll for the preceding month.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.012, 145.40, 3305.05, 3305.051, 3305.052, 3305.06
Prior Effective Dates: 8/1/98, 10/31/98, 3/27/99, 4/5/01, 1/1/03, 1/1/06

145-1-44 Election workers.

As used in section 145.012 of the Revised Code, "election worker" means an individual who performs services as a precinct election official or voting location manager for the board of elections for a day the election polls are open and training or preparation for such service.

Effective: 4/18/2016
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.012
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13, 1/21/16 (Emer.)

145-1-45 Retirement deductions during faculty improvement leave.

(A) Section 3345.28 of the Revised Code provides, in part, that no university faculty member shall suffer a reduction in his regular employee retirement benefits during a professional leave of absence.

(B) During a professional leave the member shall contribute the prevailing member deduction rate applied to the salary he would have received had he been working at the university, on the regular reports of contribution submitted by the university.

(C) The full salary also shall be the base on which the corresponding employer contribution shall be remitted.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 3345.28
Prior Effective Dates: 12/31/77, 1/1/03

145-1-47 Humane society employment.

Employees of humane societies are not eligible for membership in the public employees retirement system unless they are employed by and paid directly by a public employer.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01
Prior Effective Dates: 5/16/40, 9/30/91, 1/1/03

145-1-48 Board and commission members.

Membership is required for all appointed and elected members of boards and commissions who receive salary for their services. Members who serve without pay or who only receive reimbursement for expenses are not eligible for membership in the public employees retirement system.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01

145-1-49 Mental health and developmental disability boards.

(A) "648 board" means a county or community mental health and developmental disability board established pursuant to Am. H.B. 648 of the 107th General Assembly.

(1) A 648 board is a public employer as defined in division (D) of section 145.01 of the Revised Code.

(2) An employee of a 648 board is a public employee as defined in division (A) of section 145.01 of the Revised Code.

(B)

(1) "Contract agency" means an agency with whom a 648 board contracts for services pursuant to section 340.03 of the Revised Code. A "public contract agency" means any public agency as specifically named in division (D) of section 145.01 of the Revised Code. A "private contract agency" means one other than a public contract agency.

(2) The following are public employees.

(a) An employee of a public contract agency.

(b) An employee of a private contract agency who was a member of public employees retirement system at the time of his employment with the private contract agency and who continues to perform the same or similar duties under the direction of the private contract agency.

(3) Except as provided in paragraph (B)(2)(b) of this rule, an employee of a private contract agency is not a public employee and is not subject to retirement system coverage during their employment with the private contract agency.

(C)

(1) On or before September 30, 1975, each 648 board shall certify a list showing, as of September 30, 1975, each of the following:

(a) All of its own employees;

(b) All employees of contract agencies who qualify as public employees under paragraph (B) of this rule; and,

(c) All employees of contract agencies who although members are not public employees as defined in paragraph (B) of this rule.

(2)

(a) Employees who are certified as public employees shall continue membership.

(b) Employees who are not certified by a 648 board as public employees shall receive refunds of unauthorized contributions for their employment.

(c) Employees who are not certified as public employees, but who have accounts from other public employment may apply for a refund or may leave their funds on deposit. A refund application shall be certified by the executive director of the 648 board.

(D) All individuals employed by either a 648 board or a contract agency after September 30, 1975, who are public employees as defined in paragraph (A) or (B) of this rule shall be certified as such by a 648 board by letter accompanying the report of deductions on which the first deduction is reported.

(E) A 648 board shall report all deductions for its own employees and for employees of a private contract agency who are defined in paragraph (B)(2)(b) of this rule. Membership and employee and employer contributions begun must continue as long as the employment continues. All members appearing on the report of retirement contributions of a 648 board shall be deemed to be employees of that board.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.03
Prior Effective Dates: 8/20/75, 9/27/98, 1/1/03, 1/1/06, 1/1/10

145-1-50 Firefighters.

(A) For the purposes of Chapter 145. of the Revised Code, this rule, and rule 145-2-17 of the Administrative Code:

(1) "Firefighter" means a person who:

(a) Is employed as a firefighter by a public employer; and

(b) Is hired or appointed, controlled and paid earnable salary and otherwise treated as an employee by the public employer.

(2) "Volunteer firefighter" means a person who:

(a) Is an employee of a private fire company or association;

(b) Performs service as a firefighter for no compensation or for an honorarium;

(c) Is an employee of a nonprofit fire company or association; or

(d) Is not a firefighter pursuant to paragraph (A)(1) of this rule.

(B)

(1) Except as otherwise provided by law, effective May 1, 1991, a firefighter shall be a member of the retirement system subject to all the rights and obligations of Chapter 145. of the Revised Code.

(2) Notwithstanding paragraph (B)(1) of this rule, a firefighter employed before May 1, 1991, shall be a member of the retirement system unless an exemption from membership on a form approved by the public employees retirement board is filed on or before May 31, 1991.

(3) Once filed an approved exemption is valid pursuant to the limitations in section 145.03 of the Revised Code or through June 29, 1991, whichever is later.

(C) Effective May 1, 1991, a volunteer firefighter is not a public employee and shall not be a member of the retirement system.

(D) A firefighter employed before May 1, 1991, who is or becomes a member on May 1, 1991 may purchase the firefighter service as described in rule 145-2-17 of the Administrative Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.012, 145.03
Prior Effective Dates: 1/21/76, 10/30/78, 5/1/91, 8/1/92, 1/1/03, 1/1/06

145-1-51 County agricultural societies.

Employees and officials of a county agricultural society are not public employees as defined in section 145.01 of the Revised Code, and are not eligible for membership in the public employees retirement system.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01
Prior Effective Dates: 1/14/59, 9/30/91, 1/1/03

145-1-53 Payment by fee, commission, stipend or honorarium.

(A) For purposes of this rule:

(1) "Fee or commission" means compensation which is a fixed charge or calculated as a percentage of an amount not directly related to work or services performed.

(2) "Stipend" means compensation paid to a student that is not subject to federal income taxation.

(3) "Honorarium" means a nominal payment made for services for which there is no binding legal obligation to pay.

(B) An individual whose sole compensation is a fee or commission, stipend or honorarium is not a public employee pursuant to Chapter 145. of the Revised Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01
Prior Effective Dates: 11/30/60, 3/17/89, 8/31/92, 1/1/03

145-1-55 Exemption termination.

An exemption from membership in the public employees retirement system pursuant to section 145.03 of the Revised Code shall be valid only during the current period of employment for the public employer by whom a public employee is employed at the time the exemption is approved. When the employment is terminated the exemption also terminates. Upon a return to public employment either for the former employer or another employer membership in the system is mandatory unless the employee may be exempt or excluded from membership.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.03
Prior Effective Dates: 11/13/46, 9/30/91, 1/1/03

145-1-57 [Rescinded] Accounts of law enforcement members.

Effective: 03/24/2013
R.C. 119.032 review dates: 01/04/2013
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.01, 145.02
Prior Effective Dates: 8/20/76, 7/31/89, 12/30/91, 12/6/93, 2/3/00, 4/5/01, 3/22/02, 1/1/03, 1/1/06

145-1-61 Release of names, addresses and individual case information and maintenance of records.

(A) The name, account number, address, including electronic mail address, or other individual case information of a member or benefit recipient shall not be released to anyone other than the member or benefit recipient except as provided in this rule.

(B) Except as otherwise provided in section 145.27 of the Revised Code, the following individual case information may be released to a third party only upon the written authorization of the member or benefit recipient.

(1) Any part of an individual's personal history record, including but not limited to, any record identifying beneficiary information or an account balance, benefit or allowance paid or payable to that member or benefit recipient or any record identifying the service history or service credit of that member or benefit recipient.

(2) Medical reports and recommendations shall not be released, except that such reports and recommendations shall be made available to a member or benefit recipient's physician, attorney or authorized agent upon the member or benefit recipient's written authorization, and further, may be released to a physician assigned by the public employees retirement system when necessary for the proper administration of the retirement system.

(C) Except as otherwise provided by law, all other individual case information not described in paragraph (B) of this rule shall be made available for inspection by the public as follows:

(1) Requests to inspect or receive copies of information contained in records kept by the retirement system shall be made in writing on forms provided by the retirement system.

(2) For all services required in preparing, copying and mailing retirement system records available to the public, a reasonable cost shall be assessed for materials, copying and electronic processing, to be paid before release of the requested information.

(D) Except as otherwise provided by law, all other retirement system information shall be made available to the public after a request for inspection and for copies provided the requesting person pays any applicable costs for copying and mailing such information.

(E) The executive director may designate any staff member to authenticate retirement system records to be sent to a court or officer of this state.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.27
Prior Effective Dates: 8/20/76, 10/29/09, 9/30/91, 3/18/00, 8/22/02, 1/1/03, 1/1/10, 1/1/11, 7/7/13 (Emer.), 9/16/13

145-1-62 Proof of date of birth and legal name change.

(A) For the purpose of proving a date of birth, an individual may submit the following documents or certified copies wherein the certifying official indicates that the original bears no alteration or erasure:

(1) A birth certificate;

(2) An official baptismal record;

(3) A parent's affidavit;

(4) A life insurance policy issued at least ten years ago which contains a penalty clause for misstatement of age and which states age or date of birth;

(5) An original family bible which contains entries of family births;

(6) A child's birth certificate which states the parent's age or date of birth for proof of the parent's age;

(7) An official hospital record of birth;

(8) A United States census bureau record;

(9) An original United States certificate of citizenship or naturalization

(10) An original United States passport; or

(11) An unexpired state-issued driver's license or identification card.

(B) If none of the above documents exists, an individual may submit for review:

(1) An affidavit stating that none of the above-listed documents exist; and

(2) Any other document(s) which state(s) a date of birth.

(C) For the purpose of proving a name change, an individual may submit a copy of one of the following documents:

(1) A marriage certificate, certified abstract of marriage, or marriage license that evidences the marriage has been legally solemnized;

(2) A decree of divorce or dissolution that restores the individual to a prior name;

(3) An entry of change of name pursuant to section 2717.01 of the Revised Code, or a comparable entry of legal name change issued by a probate court in another jurisdiction;

(4) A copy of a social security card;

(5) An original United States passport; or

(6) An unexpired state-issued driver's license or identification card.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.32, 145.35, 145.37, 145.43, 145.45, 145.46
Prior Effective Dates: 1/16/38, 4/1/88, 1/1/03, 1/1/06, 1/1/09, 12/10/12

145-1-63 Guardianship and power of attorney.

(A) For the purpose of this rule, "recipient" means a member, contributor, retirant, or beneficiary as provided in Chapter 145. of the Revised Code.

(B) Unless expressly authorized by Ohio law or as described in this rule, the member or benefit recipient who is not subject to guardianship of the person or estate shall execute all forms and applications under his or her own power and signature, including electronic forms and signatures, and shall personally direct and manage all aspects of his or her account with the public employees retirement system.

(C) Guardianship of estate shall be required to perform any of the following actions on behalf of a person who suffers from a legal disability as defined in division (B) or (D) of section 2131.02 of the Revised Code:

(1) Apply for retirement on behalf of a recipient and only upon providing a court order approving the selection of the retirement plan of payment and beneficiary designation, unless expressly authorized as provided in paragraph (F)(2)(a) of this rule;

(2) Apply for and receive a refund that is in excess of twenty-five thousand dollars (gross) under section 145.40 of the Revised Code or article VIII of the member-directed or combined plan document on behalf of a recipient;

(3) Receive benefits that are in excess of twenty-five thousand dollars (gross) annually on behalf of a

recipient;

(4) In the case of a qualified child who is eligible for a survivor benefit, only a guardian acting with the court's approval may elect to waive a survivor benefit on behalf of the qualified child; and

(5) Designate a beneficiary, unless expressly authorized as provided in paragraph (F)(2)(c) of this rule.

(D) Unless guardianship has been established, a recipient who is incarcerated may continue to direct and manage his or her account or permit an attorney in fact to direct the account.

(E) A guardian of the person is eligible to receive the account information of his or her ward, but shall not make any changes or elections regarding the account.

(F) The following apply to the power a member or benefit recipient grants to an attorney in fact in writing and on file with the retirement system:

(1) If authorized by general language regarding retirement plan transactions, an attorney in fact may perform the following actions:

(a) Authorize the release of account information;

(b) Provide and update bank account information for direct deposit of a recipient's benefits;

(c) Update the address of a member or benefit recipient;

(d) Receive correspondence and account information on behalf of a member or benefit recipient;

(e) Make additional deposits and purchase service credit;

(f) Make an initial plan selection under section 145.19 of the Revised Code or change the plan selection under section 145.814 of the Revised Code;

(g) Direct the OPERS investment options for participants in the combined and member-directed plans;

(h) Receive benefits on behalf of a recipient that do not exceed $25,000 (gross) annually.

(2) If authorized by express language regarding retirement plan transactions or helath care decisions, as applicable, in a power of attorney, an attorney in fact may perform the following actions:

(a) Apply for retirementor or other annuity on behalf of a recipient that is a joint and survivor annuity leaving one-half to the spouse if the member is married, a single life annuity if the member is single, and excluding any plan that includes a partial lump sum option payment, or elect to change a plan of payment;

(b) Apply for and receive a refund that is not in excess of twenty-five thousand dollars (gross) under to section 145.40 of the Revised Code or article VIII of the member-directed or combined plan document on behalf of a recipient;

(c) Designate a beneficiary under section 145.384, 145.43, 145.431, 145.451, or 145.64 of the Revised Code;

(d) Make health care elections and changes.

(G) In lieu of guardianship, a court of competent jurisdiction may issue a limited order pursuant to section 2111.02, 2111.021, 2111.05 or 2111.131 of the Revised Code or a comparable non-Ohio statute that directs the retirement system to issue a recipient's payment to a specific person or entity and specifies the address and direct deposit routing and account numbers for the financial institution to receive such payment.

(H) The retirement system shall accept the direction of the guardian of the estate or attorney in fact until such time as the retirement system receives a copy of the court order terminating the guardianship or the written instrument signed by the principal that revokes the authority granted to the attorney in fact.

(I) Monthly or lump sum payment due to minor recipients that are less than twenty-five thousand dollars (gross) annually may be issued to the natural parent caring for the recipient or the legal custodian of the recipient. After the age of eighteen, payments shall be issued directly to the recipient unless the recipient is subject to an ongoing guardianship.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.32, 145.35, 145.36, 145.361, 145.384, 145.40, 145.43, 145.431, 145.45, 145.451, 145.46, 145.64
Prior Effective Dates: 10/17/73, 9/27/85, 12/9/88, 1/1/90, 8/31/92, 5/29/95, 1/1/03, 12/24/04, 1/1/06, 1/1/07, 4/6/07 (Emer.), 12/30/07, 12/10/12, 1/7/13 (Emer.), 3/24/13

145-1-64 Death of designated beneficiary.

(A) This rule applies to a beneficiary designation in which two or more persons are designated as beneficiaries under section 145.384, 145.43, or 145.65 of the Revised Code, section 13.02 of the combined plan document, or section 11.02 of the member-directed plan document.

(B) The death of a designated beneficiary prior to the death of a contributor shall cancel only the designation of the deceased beneficiary. The percentage of the lump sum payment that would have been paid to the deceased beneficiary shall be apportioned equally to the contributor's remaining designated beneficiaries.

Replaces: 4/6/07(Emer.)

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.384, 145.43, 145.65
Prior Effective Dates: 4/6/07 (Emer.), 7/1/07

145-1-65 Interim benefit payment.

(A) For purposes of this rule and rules 145-1-71 and 145-1-73 of the Administrative Code:

(1) "Finalized retirement benefit" means:

(a) Any monthly benefit amount paid to a benefit recipient pursuant to section 145.32, 145.33, 145.331, 145.332, 145.35, 145.36, 145.361, 145.37 or 145.46 of the Revised Code calculated after the receipt of the final report of retirement contributions upon which the member appears;

(b) Any monthly benefit amount paid to a beneficiary pursuant to section 145.45 of the Revised Code calculated after the receipt of the final report of retirement contributions upon which the member appears;

(c) Any monthly benefit amount paid pursuant to section 9.03 of the combined plan document calculated after the receipt of the final report of retirement contributions upon which the member appears;

(d) Any monthly annuity paid pursuant to section 9.02 of the combined or member-directed plan documents after the receipt of the final report of retirement contributions upon which the member appears.

(2) "Interim benefit payment" means:

(a) Any monthly benefit amount paid to a benefit recipient pursuant to section 145.32, 145.33, 145.331, 145.332, 145.35, 145.36, 145.361, 145.37 or 145.46 of the Revised Code prior to the payment of a finalized retirement benefit;

(b) Any monthly benefit amount paid to a beneficiary pursuant to section 145.45 of the Revised Code prior to the payment of a finalized retirement benefit;

(c) Any monthly benefit amount paid pursuant to section 9.03 of the combined plan document prior to the payment of a finalized retirement benefit;

(d) Any monthly annuity paid pursuant to section 9.02 of the combined or member-directed plan documents prior to the payment of a finalized retirement benefit.

(3) "Beneficiary" means a person qualified to receive a monthly benefit pursuant to section 145.45 of the Revised Code after the death of a member or disability recipient.

(4) "Partial lump sum option payment" means the lump sum payment described in division (A)(2) of section 145.45, division (E)(1) of section 145.46 of the Revised Code, or section 9.03(e)(4) of the combined plan document.

(5) "Initial benefit payment" means the first benefit check or payment to a member or beneficiary. In the case that more than one initial payment is disbursed from one or more of the retirement plans defined in rule 145-1-81 of the Administrative Code, the first payment issued by the retirement system shall constitute the initial benefit payment for purposes of determining whether a benefit recipient is eligible to withdraw an application.

(B) Interim benefit payments may be paid in accordance with this rule.

(C) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.332, 145.37, 145.46, or 145.64 of the Revised Code, or section 9.03 of the combined plan document that includes a partial lump sum option payment, shall receive the partial lump sum option payment no earlier than ninety days after issuance of the initial benefit payment.

(D) A member or contributor of the public employees retirement system may receive an interim benefit payment if either of the following is fully satisfied:

(1)

(a) The member is eligible for retirement pursuant to section 145.32, 145.33, 145.331, 145.332, 145.37, or 145.46 of the Revised Code or article IX of the combined or member-directed plan document at the time the retirement application is filed;

(b) The member has filed all applications, forms and documents necessary to process the retirement benefit at least thirty days prior to the effective retirement benefit date;

(c) The member's employer has certified the last day for which the member will receive earnable salary;

(d) The member or contributor who makes payment for an additional annuity, pursuant to section 145.62 of the Revised Code, has at least one hundred dollars in an additional annuity account.

(2)

(a) The member or contributor is eligible for disability benefits pursuant to section 145.35, 145.36, 145.361, or 145.37 of the Revised Code;

(b) The public employees retirement board has approved the application for disability benefits by the member or contributor; and

(c) In the case of a member, the member's employer has certified the last day for which the member will receive earnable salary.

(E) A beneficiary may receive an interim benefit payment if all of the following are satisfied:

(1) The beneficiary is eligible for a benefit pursuant to section 145.45 of the Revised Code at the time the application is filed;

(2) The beneficiary has filed all applications, forms and documents necessary to process the benefit.

(F)

(1) For benefits payable under the traditional pension plan and section 9.03 of the combined plan document, an interim benefit payment shall be calculated using the earnable salary and service credit available in the account of a member or contributor at the time of the calculation. For a monthly annuity payment option under section 9.02 of the combined or member-directed plan document, an interim benefit payment shall be calculated using the portion of the member's individual defined contribution account specified by the member on the member's retirement application.

(2)

(a) Except as provided in paragraph (F)(3) of this rule, the retirement system shall revise the monthly benefit to which the member is entitled following the receipt of the final report of retirement contributions upon which the member appears.

(b) The retirement system shall revise the monthly benefit to which a beneficiary is entitled upon receipt of a report of contributions on which the deceased member appears if the contributions were not used in the calculation of the interim benefit payment. If no additional contributions are received by the retirement system, the interim benefit payment shall be the finalized retirement benefit.

(c)

(i) If the finalized retirement benefit is greater than the interim benefit payment, the retirement system shall increase the current benefit and issue a retroactive payment for the difference between the prior interim benefit payment and the finalized retirement benefit.

(ii) If the finalized retirement benefit is less than the interim benefit payment, the retirement system shall decrease the current benefit. The benefit recipient or the beneficiary shall repay to the retirement system the amount of the overpayment of benefits. If the benefit recipient or the beneficiary fails to repay such amount, the retirement system shall withhold the amount from any benefit due the benefit recipient or the beneficiary.

(3) Monthly additional annuity payments shall commence as described in rule 145-2-43 of the Administrative Code.

(G) A member or a beneficiary may withdraw their application for benefits prior to receipt of the initial benefit payment by providing the retirement system with a written request to withdraw the application over the signature of the member or beneficiary.

(H)

(1) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.332, 145.37, 145.46, or 145.64 of the Revised Code, or section 9.03 of the combined plan document that does not include a partial lump sum option payment may make a one-time election to receive a partial lump sum option payment, or the member or contributor may make a one-time change to their plan of payment, at any time prior to issuance of the finalized retirement benefit payment.

(2) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.332, 145.37, 145.46, or 145.64 of the Revised Code, or section 9.03 of the combined plan document that includes a partial lump sum option payment may make a one-time change to their partial lump sum option payment amount, or the member or contributor may make a one-time change to their plan of payment, at any time prior to issuance of the partial lump sum option payment or transfer of the partial lump sum option payment by the retirement system to their financial institution.

(3) A member or contributor is ineligible to name a different beneficiary under a plan of payment selected by the member or contributor unless the member or contributor reselects or elects a different plan of payment under this rule. The spouse of a member or contributor who reselects or elects a different plan of payment shall consent on a form provided by the retirement system to the new plan of payment selected by the retirant.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.32, 145.33, 145.331, 145.332, 145.35, 145.36, 145.361, 145.37, 145.43, 145.431, 145.45, 145.46, 145.64, 145.82
Prior Effective Dates: 3/30/92, 10/31/94, 5/29/95, 1/1/03, 6/20/03, 1/1/04 (Emer.), 2/16/04, 12/24/04, 1/1/06, 10/27/06, 4/6/07 (Emer.), 7/1/07, 1/12/08: 4/1/10, 1/1/11, 1/7/13 (Emer.), 3/24/13, 9/1/13 (Emer.), 9/16/13

145-1-66 Forms provided by OPERS.

The public employees retirement system may provide an electronic medium to perform an action or notice and such medium shall constitute a form provided or required by the system.

The system is not required to create an electronic medium to take the place of any form or notice, nor accept an electronic medium or document that is not designated by the system as the form necessary to perform an action or notice.

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.037, 145.038, 145.19, 145.191, 145.293, 145.30, 145.301, 145.302, 145.311, 145.35, 145.384, 145.43, 145.431, 145.45, 145.451, 145.46, 145.64, 145.65, 145.814

145-1-67 Monthly benefit payment date.

Monthly benefit payments shall be issued by the public employees retirement system at the beginning of each month for which due. If a benefit recipient dies on or after the first day of a month, the entire benefit payment for such month shall still be payable.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.23, 145.33, 145.331, 145.332, 145.36, 145.361, 145.37, 145.384, 145.45, 145.46, 145.81
Prior Effective Dates: 2/21/73, 2/1/93, 10/7/01, 1/1/03, 1/1/06, 1/1/09, 1/7/13 (Emer.), 3/24/13

145-1-68 Forfeiture orders under section 145.574 of the Revised Code.

For purposes of section 145.574 of the Revised Code, the public employees retirement system shall accept the determination of the court under section 2929.194 of the Revised Code in determining whether a member's disability was caused by the commission of a felony.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.574
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13

145-1-69 Waiver of benefits by guardian of estate.

A waiver pursuant to section 145.562 of the Revised Code shall be made by the beneficiary's guardian of estate and pursuant to a court order approving the waiver of benefits under either of the following circumstances:

(A) The beneficiary is under eighteen year of age;

(B) The beneficiary is eighteen years of age or older and has a legal disability as defined in division (B), (C), or (D) of section 2131.02 of the Revised Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.562
Prior Effective Dates: 3/17/65, 11/2/91, 1/1/03, 1/1/06

145-1-70 Waiver of spousal consent.

(A) The public employees retirement board may waive the requirement of spousal consent upon receipt of one of the following:

(1) A written statement of the spouse's physician certifying that the spouse is medically incapable of consent;

(2) The affidavits of the contributor and at least two other persons, one of whom must be unrelated to the contributor, attesting that currently and during the year prior to the contributor's application for benefits the whereabouts of the spouse are unknown.

(3) A court order or orders issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property requiring the contributor to designate the maximum amount payable to a joint and survivor beneficiary or beneficiaries.

(B) The affidavits described in paragraph (A)(2) of this rule shall be on forms approved by the board.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.46
Rule Amplifies: 145.32, 145.33, 145.331, 145.332, 145.37, 145.384, 145.40, 145.46 , 145.63, 145.64
Prior Effective Dates: 8/6/90, 2/1/93, 9/27/98, 11/2/00, 4/5/01, 1/1/03, 1/1/06, 10/27/06 (Emer.), 4/6/07 (Emer.), 7/1/07, 1/1/11, 1/7/13 (Emer.), 3/24/13

145-1-71 Withdrawal of benefit application.

(A) Except as provided in paragraph (F) of this rule, a member or contributor of the public employees retirement system may withdraw an application for retirement, disability, or annuity payments pursuant to section 145.384 or 145.64 of the Revised Code by either of the following methods:

(1) Returning to the retirement system not later than thirty days after issuance of the initial benefit payment, all uncashed payments, along with a written request over the member's or retirant's signature to withdraw the application;

(2) Remitting to the retirement system a personal check or money order repaying the benefit payment(s) transmitted by or on behalf of the retirement system to the member's or retirant's financial institution not later than thirty days after the institution's receipt of the initial benefit payment, along with a written request over the member's or retirant's signature to withdraw the application.

(B) Except as provided in division (C)(1) of section 145.45 of the Revised Code or paragraph (F) of this rule, a beneficiary eligible for monthly benefits pursuant to division (A) or (B) of section 145.45 of the Revised Code may withdraw an application for those benefits by either of the following methods:

(1) Returning to the retirement system not later than thirty days after issuance of the initial benefit payment, all uncashed payments, along with a written request over the beneficiary's signature to withdraw the application and a completed application for a lump sum payment of the member's accumulated account;

(2) Remitting to the retirement system a personal check or money order repaying the benefit payments(s) transmitted by the retirement system to the beneficiary's financial institution, not later than thirty days after the institution's receipt of the initial benefit payment, along with a written request over the beneficiary's signature to withdraw the application and a completed application for a lump sum payment of the member's accumulated account.

(C) If a member participating in the member-directed or combined plan, or the member's beneficiary, withdraws an application as provided in this rule and all or any portion of the member's individual defined contribution account is used to pay the benefit, the member or the beneficiary is not entitled to any investment gains or losses on the amount that was used to pay the benefit for the period beginning on the date the retirement system converts the units in the account for payment and ending on the date the account is reestablished by the retirement system as provided in this rule. The amount used to pay the benefit as provided in this rule shall be credited to the member's individual defined contribution account and invested in the same OPERS investment options and in the same proportion as the account existed immediately prior to the payment.

(D) Any non-vested amounts that were forfeited by a member participating in the member-directed plan or the member's beneficiary who withdraws a retirement application under this rule shall be restored to the member's individual defined contribution account or retiree medical account, as defined in rule 145-4-01 of the Administrative Code. Investment gains or losses shall not be applied to the amounts for the period that the amounts were not in the member's individual defined contribution account.

(E)

(1) If a member or contributor participating in the traditional pension plan withdraws an application as provided in this rule, the application of the member or contributor for an additional annuity payment under section 145.64 of the Revised Code, if any, shall also be withdrawn.

(2) All payments issued pursuant to section 145.64 of the Revised Code shall be returned to the retirement system in accordance with paragraph (A) of this rule.

(3) A member is not entitled to any investment gains or losses on the additional annuity account for the period beginning on the date the retirement system converts the units in the account for payment and ending on the date the account is reestablished by the retirement system. The member's additional annuity account shall be credited based on the daily value of the OPERS stable value fund on the date the account is reestablished by the retirement system.

(F) A member, contributor, or beneficiary may not withdraw an application as described in this rule if either any of the following have occurred:

(1) The retirement system has made a distribution from the health reimbursement arrangement, retiree medical account or wellness retiree medical account, as those terms are defined in rule 145-4-01 of the Administrative Code.

(2) The retirement system has paid a portion of the benefit to satisfy a court order.

(3) The retirement system has made a distribution in accordance with paragraph (E) of rule 145-1-21 of the Administrative Code.

(4) In the case of an application for an additional annuity payment under section 145.64 of the Revised Code, the member, contributor, or beneficiary fails to also withdraw the individual's application for retirement, disability, or annuity payments under section 145.384 of the Revised Code.

Effective: 9/1/2016
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.32, 145.33, 145.331, 145.332, 145.35, 145.36, 145.361, 145.37, 145.384, 145.45, 145.46
Prior Effective Dates: 6/19/74, 8/6/90, 3/30/92, 10/9/00, 1/1/03, 1/1/04 (Emer.), 2/16/04, 12/24/04, 1/1/06, 4/6/07 (Emer.), 7/1/07, 1/12/08, 1/7/13 (Emer.), 3/24/13, 7/1/16 (Emer.)

145-1-72 Division of property orders.

(A) For purposes of this rule:

(1) "Order" means an order described in section 3105.81 of the Revised Code.

(2) "Alternate payee," "benefit," "lump sum payment," and "participant" have the meanings set forth in divisions (A) to (D) of section 3105.80 of the Revised Code.

(B)

(1) The public employees retirement system may retain an order that provides the last four digits of the participant or alternate payee's social security numbers.

(2) After the retirement system retains an order, the alternate payee shall provide information required on a form provided by the retirement system. The retirement system shall not issue payment to the alternate payee until the retirement system receives the information required for payment. The alternate payee shall notify this retirement system in writing of any change in the information.

(C) Pursuant to section 3105.90 of the Revised Code, an order shall be on the form prescribed by the appendix to this rule. The retirement system shall accept both the version of the form prescribed by the appendix to former rule 145-1-72 of the Administrative Code that was effective January 1, 2014, and the version of the form prescribed by the current appendix.

(D) Any benefit or lump sum payment that is owed and unpaid to an alternate payee at the time of the alternate payee's death shall be paid to the estate of the alternate payee.

(E) For purposes of division (B) of section 145.571 of the Revised Code, if permitted or required by the court that issued the order, the retirement system may return the order to the court by an electronic medium.

Click to view Appendix

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.561, 3105.80, 3105.81, 3105.82, 3105.821, 3105.83, 3105.84, 3105.85, 3105.86, 3105.87, 3105.88, 3105.89, 3105.90
Prior Effective Dates: 1/1/02 (Emer.); 3/22/02; 1/1/03; 8/22/03; 1/1/10, 1/1/14, 1/1/16

145-1-73 Withdrawal of application for refund or money purchase or additional annuity lump sum payments.

(A)

(1) Except as provided in paragraph (A)(2), (B), or (E) of this rule, a member or contributor of the public employees retirement system may withdraw a refund application by returning all uncashed refund payments to the retirement system not later than thirty days after issuance of the initial payment, along with a written request over the member's or contributor's signature to withdraw the application.

(2) A member or contributor who requested a rollover of a refund or lump sum payment to a financial institution may withdraw the application if both of the following occur:

(a) The member or contributor submits to the retirement system, not later than thirty days after issuance of the initial rollover payment, a written request over the member's or contributor's signature to withdraw the application;

(b) The financial institution transmits to the retirement system, not later than sixty days after issuance of the initial rollover payment, the amounts transmitted to the financial institution.

(B)

(1) Except as provided in paragraph (B)(2) or (E) of this rule, a beneficiary who elects to receive a lump sum payment of the member's contributions in lieu of a benefit pursuant to division (A) or (B) of section 145.45 of the Revised Code or article XI of the combined plan document may withdraw an application for that payment by returning all uncashed refund payments to the retirement system not later than thirty days after issuance of the initial payment, along with a written request over the beneficiary's signature to withdraw the application and a completed application for a benefit under division (A) or (B) of section 145.45 of the Revised Code or article XI of the combined plan document.

(2) A qualified spouse who elects to rollover the member's contributions to a financial institution may withdraw a refund application if all of the following occur:

(a) The qualified spouse submits to the retirement system, not later than thirty days after issuance of the initial rollover payment, a written request over the spouse's signature to withdraw the application;

(b) The qualified spouse submits to the retirement system, not later than thirty days after issuance of the initial rollover payment, a completed application for benefits pursuant to division (A) or (B) of section 145.45 of the Revised Code or article XI of the combined plan document;

(c) The financial institution transmits to the retirement system, not later than sixty days after issuance of the initial rollover payment, the amounts transmitted to the financial institution.

(C) If a member participating in the member-directed or combined plan, or the member's beneficiary, withdraws an application as provided in this rule, the member or the beneficiary is not entitled to any investment gains or losses on the amount that was paid from the member's individual defined contribution account for the period beginning on the date the retirement system converts the units in the account for payment and ending on the date the payment(s) is reestablished in the account by the retirement system as provided in this rule. The amount paid from the member's individual defined contribution account that is returned to the retirement system as provided in this rule shall be credited to the member's individual defined contribution account and invested in the same OPERS investment options and in the same proportion as the account existed immediately prior to the refund.

(D) Any non-vested amounts forfeited by a member participating in the member-directed plan or the member's beneficiary who withdraws a refund application under this rule shall be restored to the member's individual defined contribution account or retiree medical account, as defined in rule 145-4-01 of the Administrative Code. Investment gains and losses shall not be applied to the amounts for the period that the amounts were not in the member's individual defined contribution account.

(E) A member, contributor, or beneficiary may not withdraw a refund application as provided in this rule if any of the following have occurred:

(1) The retirement system has made a distribution from the health reimbursement arrangement, retiree medical account or wellness retiree medical account, as those terms are defined in rule 145-4-01 of the Administrative Code;

(2) The retirement system has paid a portion of the refund or lump sum payment to satisfy a court order.

(3) The retirement system has made a distribution in accordance with paragraph (E) of rule 145-1-21 of the Administrative Code.

(4) In the case of an application for payment under section 145.63 of the Revised Code, the member, contributor, or beneficiary fails to also withdraw the individual's application for a refund or for retirement, disability, or annuity payments under section 145.384 of the Revised Code.

(F) A member, contributor, or beneficiary who withdraws an application for an additional annuity payment under section 145.63 of the Revised Code is not entitled to any investment gains or losses on the additional annuity account for the period beginning on the date the retirement system converts the units in the account for payment and ending on the date the account is reestablished by the retirement system. The member's additional annuity account shall be credited based on the daily value of the OPERS stable value fund on the date the account is reestablished by the retirement system.

Effective: 9/1/2016
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.384, 145.40, 145.401
Prior Effective Dates: 1/1/04 (Emer.), 2/16/04, 1/1/06, 4/6/07 (Emer.), 7/1/07, 1/12/08, 7/1/16 (Emer.)

145-1-74 Re-employment restrictions applicable to a member.

(A) For the purpose of this rule and section 145.38 or 145.382 of the Revised Code:

(1) "Effective retirement benefit date" means the date upon which a retirement allowance begins.

(2) "Ohio retirement system" means public employees retirement system, state teachers retirement system, school employees retirement system, Ohio police and fire pension fund, highway patrol retirement system, and Cincinnati retirement system.

(B)

(1) Forfeiture of a retirement allowance under section 145.38 of the Revised Code for employment in a position covered by another Ohio retirement system shall apply only to a PERS retirant whose effective retirement benefit date is on or after September 1, 1991.

(2) A PERS retirant who has received a retirement allowance for less than two months and who becomes employed in a position covered by an Ohio retirement system shall forfeit such allowance for any month in which the PERS retirant is so employed during the two month period immediately following such retirant's effective retirement benefit date.

(3) Notwithstanding paragraphs (B)(1) and (B)(2) of this rule, forfeiture of a retirement allowance shall not apply to a PERS retirant who is employed in a position covered by an Ohio retirement system if the retirant was continuously employed in the position for at least two months prior to the effective retirement benefit date in this system.

(C)

(1)

(a) Where a member of this system who also has established membership in another Ohio retirement system or systems is terminating all employment covered by all the systems, and is electing to take a retirement benefit from one or more of the other systems as of the effective retirement benefit date, the member shall elect to:

(i) Apply for a benefit if eligible pursuant to section 145.32, 145.33, 145.332, 145.37 or 145.46 of the Revised Code or article IX of the combined or member-directed plan document; or

(ii) Apply for a refund of contributions pursuant to section 145.40 of the Revised Code or article VIII of the combined or member-directed plan document.

(b) If, as of the effective retirement benefit date from an Ohio retirement system the member has sufficient service credit to qualify for a benefit in this system, the member's effective retirement benefit date shall be the first of the month following the later of the member's benefit date in the Ohio retirement system or attainment of eligibility for a benefit in this system, but not more than ninety days prior to receipt by the public employees retirement system of the member's completed retirement application.

(2)

(a) A member of this system who also is a member of an Ohio retirement system and who has applied for a retirement benefit in the that system may continue employment in the position covered by this system, provided that contributions made to this system after the member's effective retirement benefit date in the Ohio retirement system shall accrue only a benefit as described in section 145.384 of the Revised Code.

(b) If the member does not terminate all employment as described in paragraph (C)(1)(a) of this rule, the member may, upon termination of all service, elect to apply for a refund of contributions to this system made prior to the effective retirement benefit date in the Ohio retirement system .

(c) A member described in paragraph (C)(2)(b) of this rule may elect, at any time prior to commencement of a benefit under section 145.384 of the Revised Code, to have deposited to an additional annuity account described in section 145.62 of the Revised Code the member's refund amount under paragraph (C)(2)(b) of this rule. The accrual of allowable interest shall not begin until the additional annuity account is established.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.38
Rule Amplifies: 145.38 , 145.382
Prior Effective Dates: 8/1/92, 3/17/94, 2/3/00, 4/5/01, 1/1/03, 1/1/06, 1/7/13 (Emer.), 3/24/13, 3/23/15 (Emer.), 6/6/15

145-1-75 Re-employment of a retirant.

(A) Definitions

For the purpose of this rule and section 145.362, 145.37, 145.38, 145.382, 145.384, or 145.385 of the Revised Code:

(1) "PERS retirant" means any former member of the public employees retirement system who retires as provided in section 145.32, 145.331, 145.332, or 145.37 of the Revised Code and is receiving a retirement allowance as provided in section 145.33 , 145.331, 145.332, or 145.46 of the Revised Code.

(2) "Combined retirement" means retirement based upon section 145.37 of the Revised Code.

(3) "A contract to provide services, or for services, as an independent contractor" means an agreement that establishes a relationship in which the individual is an independent contractor and not a public employee.

(4) "Disability benefit recipient" means an individual defined in division (N) of section 145.01 of the Revised Code.

(5) "Employed" means the relationship between a public employer and an individual who is a public employee rather than an independent contractor.

(6) "Other system retirant" means an individual defined in division (A)(2) of section 145.38 of the Revised Code.

(B) Elective positions

(1) The provisions of section 145.38 of the Revised Code, and this rule shall apply to an age and service or other system retirant who is elected to an office, or is appointed to an elective office, of the state or its political subdivisions covered by this retirement system.

(2) The provisions of section 145.362 of the Revised Code, and these rules shall apply to a disability retirant who is elected to an office of the state or its political subdivisions covered by this retirement system.

(C) Employed positions

A PERS retirant who has received a retirement allowance for less than two months and who becomes employed by a public employer shall forfeit the retirement allowance for any month in which such retirant is employed during the two month period immediately following such retirant's effective retirement benefit date.

(D) Employment by legislative authority

(1) A PERS retirant may be employed irrespective of the length of time such retirant has received a retirement benefit:

(a) In a position authorized by section 101.31, 121.03 or 121.04 of the Revised Code; or

(b) In a position to which appointment is made by the governor with the advice and consent of the senate; or

(c) As the head of a division of a state department.

(2) A retirant described in paragraph (D)(1) of this rule, upon employment, shall elect in writing to the retirement system to have such employment covered either by:

(a) Section 145.38 of the Revised Code; or

(b) Section 145.382 of the Revised Code and paragraph (D)(3) of this rule.

(3)

(a) A retirant described in paragraph (D)(1) of this rule who elects to have such employment covered by section 145.382 of the Revised Code, upon employment, shall become a member of the retirement system based upon such employment with all obligations and rights except those pursuant to section 145.45 of the Revised Code, and shall forfeit such retirant's retirement allowance.

(b) Upon termination of employment, the retirant shall have a retirement allowance recalculated based on an allowance described in section 145.33 or 145.46 of the Revised Code utilizing the retirant's original service and service after retirement covered by section 145.382 of the Revised Code.

(E) Health care coverage

(1) The public employer for which a PERS retirant is employed on February 9, 1994, or after, shall provide health care coverage for such retirant if such coverage is provided to its employees doing comparable work or in a comparable position.

(2) The employer shall notify the retirement system of the status of health care coverage for a PERS retirant who is re-employed.

(3) If the retirant should be covered under the employer's health care plan as required by section 145.38 of the Revised Code but fails to enroll in the employer's health care plan, the retirant is ineligible to participate in a plan provided under section 145.58 of the Revised Code.

(F) Restoration to service by a disability benefit recipient shall be governed by section 145.362 of the Revised Code and rule 145-2-22 of the Administrative Code.

(G) Determinations

A retirant or benefit recipient may request a determination from the retirement system as to the effect on the benefit of the retirant or recipient of a return to employment or restoration to service covered by Chapter 145. of the Revised Code, rule 145-2-22 of the Administrative Code, or other employment.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.38
Rule Amplifies: 145.362, 145.37, 145.38 , 145.382
Prior Effective Dates: 2/19/60, 9/6/88, 8/1/92, 2/1/93, 3/17/94, 1/31/98, 8/1/98, 4/5/01, 2/14/02, 1/1/03, 1/1/06, 1/1/07, 1/1/09, 7/11/09, 1/7/13 (Emer.), 3/24/13, 5/8/14, 11/6/14

145-1-76 Benefits payable to a re-employed retirant.

(A)

(1) Benefits payable to a PERS or other system retirant pursuant to section 145.384 of the Revised Code shall be effective as provided in that section.

(2) Benefits payable to the beneficiary of a PERS or other system retirant shall be effective the first of the month following the retirant's date of death.

(B) A PERS or other system retirant may withdraw an application for benefits in the same method as described in rule 145-1-71 of the Administrative Code.

(C) Unless voided by an event as described in division (G) of section 145.384 of the Revised Code, the designation of a beneficiary by a PERS or other system retirant shall apply for all re-employment periods except for a period for which a benefit has already been paid or for which a retirant is accruing a supplemental benefit. A designation shall be made on a form provided by the public employees retirement board, signed by the retirant and filed with the board.

(D) If a retirant makes an application for a benefit pursuant to division (B)(2) of section 145.384 of the Revised Code, the retirant shall select a plan of payment as described in division (B) of section 145.46 of the Revised Code and designate a beneficiary.

(E) For those contributors whose benefit under section 145.384 of the Revised Code is commenced under the single-life plan in accordance with section 401(a)(9) of the Internal Revenue Code and the regulations thereunder, not later than one year after the effective date of the benefit described in this paragraph, a contributor who was married on the effective date of the benefit may elect the joint-life plan based on the actuarial equivalent of the contributor's single life annuity as determined by the board. The election shall be made on a form approved by the retirement system and shall be effective on the effective date of the benefit paid under the single-life plan . Any benefit overpayment may be recovered as provided in section 145.563 of the Revised Code.

(F) Except as provided in section 145.384 of the Revised Code or this rule, beneficiary and plan of payment changes shall be made in accordance with rules 145-2-44 and 145-2-47 of the Administrative Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.38, 145.383, 145.384
Prior Effective Dates: 8/1/92, 4/5/01, 1/1/03, 6/20/03, 10/27/06, 4/1/08 (Emer.), 6/23/08, 1/1/10, 1/7/13 (Emer.), 3/24/13, 9/1/13 (Emer.), 9/16/13

145-1-77 Reemployment of member-directed or combined plan participant.

(A) This rule amplifies sections 145.38 and 145.384 of the Revised Code and rules 145-1-74 to 145-1-76 of the Administrative Code.

(B) As used in rule 145-1-74 of the Administrative Code, "PERS retirant" includes a member or former member of the public employees retirement system who is or has received a payment under article IX of the combined plan document or member-directed plan document, and has not withdrawn the application for retirement pursuant to rule 145-1-71 of the Administrative Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.38, 145.384
Prior Effective Dates: 1/1/03, 1/1/06, 1/7/13 (Emer.), 3/24/13, 3/23/15 (Emer.), 6/6/15

145-1-78 Retirement of a member pursuant to section 145.383 of the Revised Code.

(A) For purposes of section 145.383 of the Revised Code and this rule:

(1) "Active position" means a position for which contributions were being received by a state retirement system at the time of retirement pursuant to section 145.383 of the Revised Code.

(2) "PERS annual earnable salary" means a member's earnable salary for each active position reported by a public employer to the public employees retirement system for a calendar year. If a member has held an active position for less than a calendar year this system shall convert the earnable salary to an annual amount.

(3) "Other retirement system annual compensation" means a member's annual compensation for an active position as certified to this system by the state teachers retirement system or the school employees retirement system.

(4) "Highest annual compensation" means the highest of the PERS annual earnable salary or the other retirement system annual compensation for an active position.

(5) "Position" means employment for which a member is covered and contributing to a state retirement system.

(6) "State retirement system" means the public employees retirement system, school employees retirement system or state teachers retirement system.

(7) "Other retirement system" means the school employees retirement system or state teachers retirement system.

(B)

(1) When a member holds more than one active position in this system, no active positions in an other retirement system, and is electing to take a retirement benefit pursuant to section 145.383 of the Revised Code, the member shall:

(a) Apply for a benefit pursuant to section 145.32, 145.33, 145.332, or 145.46 of the Revised Code, for the active position which has the highest PERS annual salary, and,

(b) Select which other active position or positions upon which the member shall continue to contribute to this system.

(2) In computing the benefit described in paragraph (B)(1) of this rule all service credit in this system shall be used.

(C)

(1) When a member holds one or more active positions in this system and one or more active positions in an other retirement system, and the active position which has the highest annual compensation is in this system, the member shall:

(a) Apply for a benefit pursuant to section 145.32, 145.33, 145.332 or 145.46 of the Revised Code, for the active position which has the highest annual compensation, and,

(b) Select which other active position or positions upon which the member shall continue to contribute to this system or an other retirement system.

(2) In computing the benefit described in paragraph (C)(1) of this rule all service credit in this system shall be used.

(D) Employment in any position covered by this system that begins subsequent to the effective retirement benefit date under section 145.383 of the Revised Code shall be subject to section 145.38 or 145.382 of the Revised Code, and rule 145-1-75 of the Administrative Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.383
Rule Amplifies: 145.383
Prior Effective Dates: 4/5/01, 1/1/03, 1/7/13 (Emer.), 3/24/13

145-1-79 Reemployment covered by Section 145.381 of the Revised Code.

A board, commission, or legislative authority that proposes to continue the employment as a reemployed retirant or rehire as a reemployed retirant in the same position, a person who is or most recently has been employed by a public employer in a position that is customarily filled by a vote of members of a board or commission or by the legislative authority of a county, municipal corporation, or township, shall certify on a form provided by the public employees retirement system that the employer has done both of the following:

(A) Not less than sixty days before the employment as a reemployed retirant was to begin, gave public notice that the person is or will be retired and is seeking employment with the public employer;

(B) Between fifteen and thirty days before the employment as a reemployed retirant was to begin and after complying with paragraph (A) of this rule, held a public meeting on the issue of the person being employed by the public employer.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.381
Rule Amplifies: 145.381
Prior Effective Dates: 10/23/03 (Emer.), 1/12/04, 1/1/06

145-1-80 Effect of applicant's death on payment plan.

(A) If a member has filed an application for retirement pursuant to section 145.32, 145.33, 145.331, 145.332, 145.37 or 145.46 of the Revised Code or article IX of the combined or member-directed plan documents and the member's death occurs subsequent to the effective retirement benefit date, the beneficiary and benefit payable shall be determined by the plan of payment and beneficiary designated by the member on the application for retirement benefits.

(B) If a PERS retirant or other system retirant as defined in section 145.38 of the Revised Code, or a retirant described in section 145.382, or 145.383 of the Revised Code has filed an application for a benefit pursuant to section 145.382, 145.383 or 145.384 of the Revised Code, and the retirant dies subsequent to the effective date of the benefit, the benefit payable to the beneficiary shall be determined by the plan specified by the retirant on the application.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.38
Rule Amplifies: 145.32, 145.33, 145.331, 145.332, 145.37, 145.38 , 145.382, 145.383, 145.384, 145.46
Prior Effective Dates: 2/15/67, 8/6/90, 2/3/92, 2/1/93, 11/2/00, 3/22/02, 1/1/03, 6/6/05 (Emer.), 8/11/05, 1/1/09, 1/7/13 (Emer.), 3/24/13

145-1-81 Retirement plans.

(A) As used in Chapters 145-1 to 145-4 of the Administrative Code:

(1) "Traditional pension plan" means the PERS defined benefit plan established under sections 145.201 to 145.70 of the Revised Code.

(2) "Combined plan" means the PERS combined defined benefit/defined contribution plan established under section 145.81 of the Revised Code. Unless specifically identified otherwise within the text of the Administrative Code, references to the combined plan document refer to the version that includes amendments adopted through January 1, 2017.

(3) "Member-directed plan" means the PERS defined contribution plan established under section 145.81 of the Revised Code. Unless specifically identified otherwise within the text of the Administrative Code, references to the member-directed plan document refer to the version that includes amendments adopted through January 1, 2017.

(B) The text of the combined and member-directed plan documents shall not be incorporated into this or any other rule of the Administrative Code. Current versions of the plan documents are available on the web site of the public employees retirement system at www.opers.org.

Effective: 1/1/2017
Five Year Review (FYR) Dates: 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81
Prior Effective Dates: 1/1/03, 1/1/06, 5/8/14, 3/23/15 (Emer.), 6/6/15, 4/18/16

145-1-82 Exceptions to duty to notify.

(A) This rule amplifies sections 145.16, 145.17, and 145.171 of the Revised Code.

(B) The public employees retirement system is not required to inform a public employee of the requirements of section 145.19 of the Revised Code if either of the following apply:

(1) The public employee fails to file the statement required under section 145.16 of the Revised Code.

(2) The head of each department, as defined in section 145.01 of the Revised Code, fails to provide the notice required by section 145.17 of the Revised Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.171, 145.81
Prior Effective Dates: 1/1/03

145-1-83 Application of USERRA to one hundred eighty-day election period.

(A) This rule amplifies section 145.19 and 145.191 of the Revised Code.

(B) As used in this rule, "service in the uniformed services" and "uniformed services" have the same meanings as in section 145.302 of the Revised Code.

(C) This rule applies to a member whose service in the uniformed services occurs during the member's one hundred eighty day election period as described in section 145.19 or 145.191 of the Revised Code.

(D) Upon a member described in paragraph (C) of this rule being reemployed with the same public employer that employed the member prior to the member's service in the uniformed services, the member may, not later than ninety days after the reemployment, apply to the public employees retirement system on a form provided by the system to reestablish all or a portion of the member's one hundred eighty day election period.

(1) On receipt of the application, the system shall request from the public employer that employed the member prior to the military service a certification that the member was employed by the public employer prior to, and returned to employment with the employer within three months of honorable discharge or release from, service in the uniformed services. If the public employer can so certify, the employer shall do so.

(2) The member shall submit to the system report(s) of separation (form DD214) or other satisfactory documentation as evidence of the member's military service.

(E) On receipt of the certification and documentation under paragraph (D) of this rule and approval of the certification, the system shall reestablish the member's election period as follows:

(1) If all of the member's one hundred eighty day election period was interrupted by the member's service in the uniformed services, the member shall have one hundred eighty days after the date certification is approved by the system to make an election under section 145.19 or 145.191 of the Revised Code.

(2) If a portion of the member's one hundred eighty day election period was interrupted by the member's service in the uniformed services, the member shall have the same portion of the member's one hundred eighty day election period after the date certification is approved by the system to make an election under section 145.19 or 145.191 of the Revised Code.

(F) The election of a member under this rule takes effect as follows:

(1) For members who are eligible to make an election under section 145.191 of the Revised Code, the election shall take effect on January 1, 2003.

(2) For members who are eligible to make an election under section 145.19 of the Revised Code, the election shall take effect on the date employment began.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.16, 145.191
Prior Effective Dates: 11/15/03

145-1-84 [Rescinded] Transfer of accumulated contributions to new plan.

Effective: 03/24/2013
R.C. 119.032 review dates: 01/04/2013
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.191(C), 145.81
Prior Effective Dates: 1/1/03, 1/1/06, 1/1/09

145-1-86 [Rescinded] Provisions applicable to law enforcement officers.

Effective: 03/24/2013
R.C. 119.032 review dates: 01/04/2013
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.19(D)(1), 145.191(E)(2), 145.193, 145.81
Prior Effective Dates: 1/1/03

145-1-88 Changes to election to participate.

(A) This rule amplifies section 145.814 of the Revised Code and section 2.03 of the combined and member-directed plan documents.

(B) As used in this rule and rules 145-1-89, 145-2-18, and 145-3-40 of the Administrative Code:

(1) "Eligible member" has the same meaning as in section 145.814 of the Revised Code and includes a member who was not eligible to make an election under section 145.19 or 145.191 of the Revised Code due to the member's status as a law enforcement or public safety officer and who is not currently contributing as a law enforcement or public safety officer;

(2) "Amount on deposit" means the sum of the amounts available to a member to purchase service credit in the member's new plan as described in section 6.01 of the combined plan or section 6.01 or 6.02 of the member-directed plan.

(C)

(1) As used in this rule, "total service credit" means the sum of a member's service credit in the traditional pension plan, service credit in the combined plan, and contributing months in the member-directed plan.

(2) Subject to the requirements of this rule and rule 145-1-89 of the Administrative Code, in addition to the enrollment period described in sections 145.19 and 145.191 of the Revised Code, an eligible member who is actively contributing to the retirement system may elect to participate in a different plan as follows:

(a) For elections effective on or before July 1, 2015, during the following periods of service as a public employee:

(i) Once prior to attaining five years of total service credit;

(ii) Once after attaining five and prior to attaining ten years of total service credit;

(iii) Once after attaining ten years of total service credit.

(b) For elections effective on and after August 1, 2015, once at any time prior to retirement under any of the plans defined in rule 145-1-81 of the Administrative Code or a refund from the member's current plan.

(3) An election that is not used within the specified time period may not be made in a subsequent time period.

(D) Except as provided in rule 145-1-89 of the Administrative Code, an election under this rule applies only to employer and employee contributions made after the effective date of the election.

(E) An election to transfer to the traditional pension plan under section 10.03(a) of the combined plan document for the payment of a disability benefit is irrevocable. Any member that returns to service as a public employee following receipt of a disability benefit shall remain a member of the traditional pension plan and is not eligible to make an election under paragraph (C) of this rule.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.814
Prior Effective Dates: 1/1/03, 11/15/03, 1/1/06; 1/1/09, 1/1/11, 7/7/13 (Emer.), 9/16/13, 3/23/15 (Emer.), 6/6/15

145-1-89 Transfer of contributions under rule 145-1-88 of the Administrative Code.

(A) This rule amplifies section 145.814 of the Revised Code and section 2.04 and article VI of the combined and member-directed plan documents.

(B) Except as provided in paragraph (C) of this rule, an eligible member who elects a different plan under rule 145-1-88 of the Administrative Code may have the amounts on deposit for the prior plan transferred in accordance with the member's new plan if one of the following applies:

(1) The member, by an election under rule 145-1-88 of the Administrative Code, will cease participation in the member-directed plan and begin participating in the combined plan or traditional pension plan;

(2) The member, by an election under rule 145-1-88 of the Administrative Code, will cease participating in the combined plan and begin participating in the traditional pension plan.

(C) For an election under rule 145-1-88 of the Administrative Code that is effective on or before July 1, 2015, the eligible member may transfer the amounts described in paragraph (B) of this rule to the member's new plan not later than one hundred eighty days after the effective date of the election. For an election that is effective on and after August 1, 2015, an eligible member may transfer such amounts at any time prior to retirement or distribution under any of the plans defined in rule 145-1-81 of the Administrative Code or a refund from the member's current plan.

(D)

(1) For a member described in paragraph (B)(1) or (2) of this rule who will begin participating in the traditional pension plan, the amount on deposit shall be transferred in accordance with rule 145-2-18 of the Administrative Code.

(2) For a member described in paragraph (B)(1) of this rule who will begin participating in the combined plan, the amount on deposit shall be transferred in accordance with rule 145-3-40 of the Administrative Code.

Five Year Review (FYR) Dates: 09/29/2015 and 09/29/2020
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.814
Prior Effective Dates: 1/1/03, 3/23/15 (Emer.), 6/6/15