Chapter 145-1 Benefits

(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 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. 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. Meetings of the investment committee will be held on the Tuesday before the third Wednesday of each calendar month, however, such meetings may be changed by vote of the committee.

(2) The personnel and salary review committee shall consist of five board members. The committee chair and members shall be 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: 11/30/2007

R.C. 119.032 review dates: 09/14/2007 and 09/29/2012

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: 12/24/04; 3/22/02; 1/5/01; 7/6/00; 6/1/96; 4/30/94; 4/5/93; 10/11/88; 5/9/88;2/1/88; 12/12/76; 3/29/76.

(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 30th 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, and any other materials the board deems necessary.

(b)

(i) The biographical statement of an employee representative shall carry the name, county of residence, public employer and job title of each candidate. Job title may be the candidate’s official job classification, or a descriptive title. The biographical statement of a retirant ballot shall carry the name and county of residence of each candidate.

(ii) In addition, a candidate may provide a statement, not to exceed seventy-five words, along with 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.

(3) 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.

(4) Within ten calendar days after the election count, an unsuccessful candidate may request in writing a recount of the candidate’s election.

(a) The cost of a recount shall be payable in advance by the candidate requesting the recount.

(b) The cost shall be an amount equal to the cost of the original election count for all elections multiplied by the ratio of the number of valid votes received in the representative group to the number of valid votes cast in all elections but in no event in an amount less than two hundred fifty dollars.

(c) If the candidate requesting the recount wins the election after the recount, the system shall refund the recount cost paid by the candidate.

(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 ten calendar days after the board has approved the ballot count.

(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.

Effective: 11/30/2007

R.C. 119.032 review dates: 09/14/2007 and 09/29/2012

Promulgated Under: 119.03

Statutory Authority: 145.058.

Rule Amplifies: 145.04, 145.05, 145.051, 145.058, 145.06, 145.27.

Prior Effective Dates: 4/10/05; 6/20/03; 10/7/01; 1/5/01; 5/31/97; 6/1/96; 3/17/89; 6/9/78; 5/16/73

(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.

Effective: 11/30/2007

R.C. 119.032 review dates: 09/14/2007 and 09/29/2012

Promulgated Under: 111.15

Statutory Authority: 145.08

Rule Amplifies: 145.08

Prior Effective Dates: 4/10/05; 12/9/95

(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 target incentive awards weighted against quantitative performance components, focusing on the public employees retirement system’s actual relative investment performance compared with external benchmarks. Any and all material modifications to the plan, including, but not limited to those related to the assignment of target 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.

Effective: 04/10/2005

R.C. 119.032 review dates: 09/29/2009

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.09, 145.092.

(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 (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.

(C) For purposes of division (E)(4) of section 145.114 of the Revised Code, “compensation” shall mean the commissions paid on equity securities transactions and the cost or proceeds on fixed income securities transactions.

Effective: 04/10/2005

R.C. 119.032 review dates: 09/29/2009

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.114, 114.116.

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.

Effective: 01/01/2006

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.09, 145.11.

Prior Effective Dates: 1/1/03, 12/7/00, 9/27/97, 7/17/74.

(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. 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: 08/09/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.01, 145.012, 145.03, 145.32, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 145.38, 145.382, 145.383, 145.40, 145.45, 145.46, 145.47, 145.48, 145.51.

Prior Effective Dates: 4/24/07 (Emer.); 6/20/03; 1/1/03; 11/2/00;9/27/97; 11/2/91; 3/17/76

(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 to the executive director in writing 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.

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

(b) 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) 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, 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: 11/30/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.09

Prior Effective Dates: 8/9/07; 4/24/07 (Emer.); 1/1/03; 6/15/02; 3/25/02 (Emer.); 1/5/01; 2/3/00; 11/2/91; 11/17/76

(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:

(1) Writing to the following address:

“Ohio Public Employees Retirement System

277 East Town Street

Columbus, Ohio 43215-4642”

(2) Calling the following telephone number during normal business hours: (800) 222-7377 (800-222-pers).

(3) By consulting the statehouse press room.

(B) Any representative of the news media may obtain notice of all special meetings by making a written request that such notice be provided. However, such notice will be given to only one representative of any particular publication or radio or television station. A request for such notification shall be sent to the system’s executive director at the address listed in paragraph (A) of this rule.

(1) The request shall provide the name, mailing address, and no more than two telephone numbers of the individual media representative to be contacted. The system shall maintain a list of all representatives of the media who have requested notice of special meetings pursuant to this paragraph.

(2) In the event of a special meeting which is not an emergency, the system shall notify all media representatives on its list of such requests by doing at least one of the following:

(a) Sending written notice, which must be mailed no later than four calendar days prior to the day of the special meeting;

(b) Notifying such representative by telephone no later than twenty-four hours prior to the special meeting; such telephone notice shall be complete if a message has been left for the representative, or, if after reasonable effort, the system has been unable to provide such telephone notice;

(c) Informing such representative personally no later than twenty-four hours prior to the special meeting.

(C) In the event of a special meeting which is an emergency, the system shall notify all media representatives on its list of such requests by providing either the notice described in paragraph (B)(2)(b) or (B)(2)(c) of this rule, or notifying the clerk of the statehouse press room, except the notice is not required to be given twenty-four hours prior to the meeting but shall be given as soon as possible.

(D) In giving notices required by this rule, the system may rely on assistance provided by any member of the Ohio legislative correspondents association. Such notice is complete if given to such member as provided in this rule.

(E) The system shall maintain a list of all persons who have requested, in writing, notice of all meetings of the public employees retirement board.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 121.22, 145.09

Rule Amplifies: 121.22, 145.07

Prior Effective Dates: 1/1/03, 4/30/94, 1/21/76

(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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.09

Prior Effective Dates: 1/1/03, 9/27/97, 9/22/76

(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 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 PERS rules or Chapter 145. of the Revised 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) The final regulations under section 401(a)(9) of the Internal Revenue Code issued December 29, 2004 shall apply to all plan years commencing on and after January 1, 2006.

(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.

Effective: 06/23/2008

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.09.

Prior Effective Dates: 4/1/08 (Emer.); 1/1/03; 3/22/02; 12/27/01 (Emer.)

(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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.48

Prior Effective Dates: 1/1/03, 9/27/97, 7/19/72

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, and law enforcement contribution rates after the recommendation by the retirement board’s actuary.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.22, 145.47, 145.48, 145.49

Prior Effective Dates: 1/1/03, 3/22/02, 4/5/01, 11/2/00, 9/27/97, 9/30/91, 1/1/91, 7/31/89, 6/16/76.

(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)(e) of section 145.01 and section 145.296 of the Revised Code, “sponsored by the employer” means the employer funded a program in whole or in part.

(C) 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 (E)(5) of this rule.

(D) 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 for which 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;

(2) “During the year” means in the year or not later than one month following the year in which a payment is earned under a conversion program for its employees. Such earnable salary shall be reported on a report of retirement contributions for the year in which such payment was accrued.

(E) 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.

(F) 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 which 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 not directly related to work or services performed;

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

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

(G)

(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.

(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 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, such 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, 145.34, 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.

(H)

(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 any contributions received prior to the determination shall be unauthorized and shall be refunded.

(4) A determination by the board will be applicable to similar pending requests while the board amends this rule or one hundred twenty days, whichever occurs first.

Effective: 01/01/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.01, 145, 09.

Rule Amplifies: 145.01, 145.47, 145.48, 145.49.

Prior Effective Dates: 1/1/06; 1/1/03; 11/2/00; 9/27/97; 6/1/96; 8/31/92; 8/31/91; 3/17/89;10/31/88; 5/27/88; 8/28/86, 6/18/86 (Emer.).

(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.

Effective: 07/01/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.51.

Prior Effective Dates: 4/6/07 (Emer.); 1/1/06; 1/1/03; 9/27/97; 5/31/97

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

(1) “Employee deduction” means the full amount of employee deductions due for a particular reporting period pursuant to section 145.47 or 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 deductions that is free from errors or omissions and is in the form required by the public employees retirement board.

(4) “Reporting period” means the established interval for which an employer reports employee deductions.

(5) “Supplemental report” means a report of employee deductions that is submitted by the employer in addition to the regular report due to the employer’s need to report additional deductions for the employer’s payment of a disability payment, retroactive salary payment, or payment pursuant to a settlement agreement.

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

(B) For employee deductions filed on or after the effective date of this rule, both employee deductions 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 deductions due on or after the effective date of this rule, if either an employee deduction 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 deductions, 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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.294, 145.47

(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 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 total amount paid by an employer pursuant to section 145.483 of the Revised Code shall vest in accordance with section 7.02 of the member-directed plan document.

(b) The non-vested portion of the employee contributions described in paragraph (F)(4)(a) of this rule shall be refunded to the employer in the event 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, interest or other fees, pursuant to section 145.483 of the Revised Code, shall be transferred to a separate account in the defined contribution fund, as described in article VII of the member-directed plan document.

(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: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.47, 145.48, 145.483, 145.49

Prior Effective Dates: 1/1/03, 11/2/00, 5/3/97, 10/4/93, 11/2/91, 12/20/72

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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.47, 145.48

Prior Effective Dates: 1/1/03, 6/18/75.

(A) For purposes of Chapter 145. of the Revised Code and PERS rules:

(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 division (Y) of section 145.01, section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.31, 145.42, 145.44, or 145.47 of the Revised Code 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 rule 145-3-21 of the Administrative Code, division (Y) of 145.01 and section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.44, or 145.47 of the Revised Code, or rule 145-3-40 of the Administrative Code.

(2) “One-time or lump-sum payment” means a service purchase that is the full cost of the entire service credit to which a member is entitled and is paid directly to the retirement system.

(3) “Partial payment” means a service purchase that is less than the full cost of the entire service credit to which a member is entitled and is paid directly to the public employees 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.

(B)

(1) A member participating in the traditional pension plan or combined plan may make a service purchase, pursuant to Chapter 145. of the Revised Code, PERS rules, and federal Internal Revenue Code section 415, either directly to the retirement system or by payroll deduction.

(2) Except as otherwise provided in rule 145-1-38 of the Administrative Code, a member is not eligible to purchase concurrently by direct payment and payroll deduction the same period of service purchase.

(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 by a one-time or lump sum payment, partial payment, or payroll deduction shall be six per cent 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 of six per cent compounded annually after the first payment.

(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 six per cent compounded annually shall be applied to the unpaid balance. The member’s payment shall first be applied to the amount of current interest on the unpaid balance and the remainder of the member’s payment shall be used to reduce the unpaid balance. 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)

Except as provided in this paragraph, all service purchases shall be completed prior to issuance of the initial benefit payment. A disability benefit recipient may purchase service credit 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.

Effective: 06/23/2008

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.80, 145.82.

Rule Amplifies: 145.01, 145.02, 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.294, 145.295, 145.299, 145.2913, 145.301, 145.302, 145.31, 145.42, 145.44, 145.47, 145.81.

Prior Effective Dates: 4/1/08 (Emer.); 1/12/08; 8/9/07; 7/1/07 (Emer.); 1/1/06; 12/24/04; 1/1/03; 3/22/02; 2/3/00; 3/27/99; 9/27/98; 9/27/97; 11/2/96; 5/29/95; 12/14/89; 1/1/78; 8/20/76

(A) For purposes of these rules, “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, as amended, 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.

(B)

(1) The public employees retirement system may accept eligible rollover distributions for the purchase of service credit pursuant to division (Y) of section 145.01, section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.31, 145.42, 145.44, or 145.47 of the Revised Code, or the purchase of an additional annuity 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 annuity pursuant to Chapter 145. of the Revised Code and PERS rules.

(b) A retirant reemployed under section 145.38, 145.382, or 145.383 may use a rollover distribution to purchase only an additional annuity.

(c) A combined or member-directed plan retirant may use a rollover distribution to purchase an additional annuity 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 accepted by the retirement system for a member in the traditional pension plan exceeds the cost of the service to be purchased by one hundred fifty dollars or more, the amount in excess shall be used to purchase an additional annuity in accordance with this rule.

(b) If the amount of the rollover distribution accepted by the retirement system for a member in the traditional pension plan exceeds the cost of the service to be purchased by less than one hundred fifty dollars, the amount in excess shall be paid to the member by the retirement system, unless the member requests, on a form provided by the retirement system, that such amount be used to purchase an additional annuity.

(5) If the amount of the rollover distribution accepted by the retirement system for a member in the combined plan exceeds the cost of the service being purchased, the amount in excess to shall be deposited to the member’s rollover account.

(C) An eligible rollover distribution of a member participating in the member-directed plan shall be credited to the member’s rollover account as defined in section 1.31 of the member-directed plan document.

(D) 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.

(E) 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.

(F) 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: 07/01/2007

R.C. 119.032 review dates: 09/29/2010

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, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.301, 145.302, 145.31, 145.42, 145.44, 145.452, 145.47, 145.62, 145.81

Prior Effective Dates: 4/6/07 (Emer.); 1/1/06; 1/1/03; 3/22/02; 1/1/02 (Emer.); 3/27/99; 11/2/96; 12/6/93

(A)

(1)

(a) A member of the public employees retirement system who is participating in the traditional pension plan may purchase service credit by payroll deduction, pursuant to this rule, rule 145-2-18 of the Administrative Code, division (Y) of section 145.01, and section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.2911, 145.301, 145.302, 145.31, or 145.42 of the Revised Code.

(b) A member who is participating in the combined plan may purchase service credit by payroll deduction pursuant to this rule, rule 145-3-40 of the Administrative Code, division (Y) of section 145.01, and section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.2911, 145.301, or 145.302 of the Revised Code.

(c) Under a plan that is in compliance with Internal Revenue Code section 414(h)(2), a member may purchase any such service credit by 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.

(2) A member may purchase service credit in any combination of lump sum payment, partial payment, or post-tax payroll deductions. A member who has entered into a payroll deduction agreement as described in paragraph (A)(1)(c) of this rule, may not purchase a period of service credit by any other method while the agreement is in effect.

(B)

(1) Upon a member’s request for purchase of service credit by payroll deduction the retirement system shall prepare a payroll deduction form which states:

(a) The service to be purchased;

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

(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 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 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 prohibited in this paragraph, 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; or

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

(3) Except as prohibited in this paragraph, 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.

(5)

(a) Notwithstanding any provision in this rule, a member, who is purchasing credit pursuant to this rule with amounts described in paragraph (A)(1)(c) of this rule:

(i) Decrease or increase such payroll deduction;

(ii) Terminate such payroll deduction unless the member has terminated employment, terminated participation in the plan under which the payroll deduction commenced, or all of such service credit has been purchased by such payroll deduction; or

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

(b) The member’s employer shall not decrease, increase or terminate such payroll deduction unless the member has terminated employment or all of such service credit has been purchased.

Effective: 08/09/2007

R.C. 119.032 review dates: 09/29/2010

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, 145.293, 145.294, 145.295, 145.2911, 145.301, 145.302, 145.31, 145.42, 145.81.

Prior Effective Dates: 7/1/07 (Emer.); 1/1/06; 1/1/03; 3/27/99; 2/1/97; 11/2/96; 12/3/90; 12/4/89

The public employees retirement system may issue a replacement warrant for a previously issued warrant which has been lost, stolen or destroyed if the payee of such warrant makes application for a replacement warrant on a form provided by the retirement system. The replacement warrant 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 warrant. Any replacement warrants issued by a third-party administrator shall be issued in accordance with the operating policies of the third-party administrator.

Effective: 07/01/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.80.

Rule Amplifies: 145.33, 145.331, 145.34, 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: 4/6/07 (Emer.); 1/1/06; 1/1/03; 4/5/93; 10/21/70

(A) If a public employer is unable to determine whether an individual is a public employee, as defined in division (A) of section 145.01 of the Revised Code, it shall make a request in writing to the public employees retirement board for a determination of whether the individual is a public employee eligible for membership in the public employees retirement system.

(B)

(1) If a public employer is unable to determine whether an individual performing services under a contract is eligible for membership, it shall make a request in writing to the public employees retirement board for a determination.

(2) In making any determination as to whether an individual is a contract employee or independent contractor, the 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.

(C) If the employer fails to request a prior 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.

(D) If the employer fails to request a prior determination and the retirement board determines the individual shall not be a member, then any contributions received prior to the determination are unauthorized and shall be returned.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.01, 145.012, 145.38

Prior Effective Dates: 1/1/03, 9/27/98, 8/31/92

(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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145, 09.

Rule Amplifies: 145.01, 145.012, 145.38

Prior Effective Dates: 1/1/03, 9/27/98, 8/31/92

(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 is 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)(1) of section 3305.05 of the Revised Code, the one hundred twenty days after August 1, 2005.

(d) 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 (B)(1) of section 3305.05 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 date described in division (C)(2)(a) of section 3305.05 of the Revised Code.

(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) 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.

(H)

(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), (F)(1), or (G)(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.

(I)

(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.

(J) 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: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

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: 1/1/03, 4/5/01, 3/27/99, 10/31/98, 8/1/98

(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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 3345.28.

Prior Effective Dates: 1/1/03, 12/31/77.

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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.01.

Prior Effective Dates: 1/1/03, 9/30/91, 5/16/40.

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

Replaces: 145-1-48.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.01.

Prior Effective Dates: 1/1/03, 9/30/91, 4/16/75.

(A) “648 board” means a county or community mental health and mental retardation 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 not 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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.01, 145.03

Prior Effective Dates: 1/1/03, 9/27/98, 8/20/75

(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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.01, 145.012, 145.03

Prior Effective Dates: 1/1/03, 8/1/92, 5/1/91, 10/30/78, 1/21/76

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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.01

Prior Effective Dates: 1/1/03, 9/30/91, 1/14/59.

(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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.01

Prior Effective Dates: 1/1/03, 8/31/92, 3/17/89, 11/30/60.

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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.03

Prior Effective Dates: 1/1/03, 9/30/91, 11/13/46.

(A) Definitions

(1) “Law enforcement service” means service as a law enforcement officer as described in division (WW) and defined in divisions (AA) to (VV) of section 145.01 of the Revised Code.

(2) “Non-law enforcement service” means service covered by the public employees retirement system which is other than law enforcement service.

(B) Pursuant to the version of division (A) of section 145.02 of the Revised Code, effective prior to June 30, 1991, a law enforcement officer was not eligible to make contributions and receive credit for concurrent service covered by Chapter 145. of the Revised Code which was not law enforcement service. If the retirement system received employee and employer contributions for concurrent non-law enforcement service prior to June 30, 1991, the retirement system shall refund return employee and employer contributions for the concurrent non-law enforcement service as unauthorized.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.01, 145.02.

Prior Effective Dates: 1/1/03, 3/22/02, 4/5/01, 2/3/00, 12/6/93, 12/30/91, 7/31/89, 8/20/76

(A) The name, address, account number 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.

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.27

Prior Effective Dates: 1/1/03, 8/22/02, 3/18/00, 9/30/91, 10/29/90, 8/20/76.

(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; or

(10) An original United States’ passport.

(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;

(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.

Effective: 01/01/2006

R.C. 119.032 review dates: 09/29/2005 and 09/29/2010

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: 1/1/03; 4/1/88; 1/16/38.

(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 the language in a power of attorney or in division (F) of this rule, guardianship of the estate shall be required and the guardian shall obtain a court order approving an initial plan selection under section 145.19 of the Revised Code, change of retirement plan, selection of a plan of payment, designation of a beneficiary, or application for and receipt of a refund if the recipient is eighteen years of age or older and suffers from a legal disability as defined in division (B), (C), or (D) of section 2131.02 of the Revised Code.

(C) Except as provided in division (F) of this rule, guardianship of estate shall be required for receipt of a survivor benefit or refund if the recipient is a beneficiary and is under eighteen years of age. If applying for a refund, the guardian shall also obtain a court order approving the guardian’s application and receipt of payment on behalf of the beneficiary.

(D) An attorney in fact granted general power with respect to retirement plan transactions is permitted to do the following:

(1) Authorize the release of account information;

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

(3) Update the address of a recipient;

(4) Receive correspondence on behalf of a recipient;

(5) Make additional deposits and purchase service credit;

(6) Make an initial plan selection under section 145.19 of the Revised Code;

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

(8) Select a plan of payment and designate one or more beneficiaries under section 145.384, 145.46, or 145.64 of the Revised Code, section 9.02 or 9.03 of the combined plan document, section 9.02 of the member-directed plan document, or rule 145-1-76 of the Administrative Code that meets the minimum requirements of a court order issued under section 3105.171 or 3105.65 of the Revised Code or the laws of another state regarding the division of marital property that requires the member or contributor to elect the plan of payment under which a portion of the member’s or contributor’s benefit continues, after the death of the member or contributor, to the member’s or contributor’s former spouse.

(E) If expressly authorized by the language in a power of attorney, an attorney in fact may do any of the following:

(1) Elect or change a retirement allowance plan of payment under section 145.384, 145.46, or 145.64 of the Revised Code, section 9.02 or 9.03 of the combined plan document, section 9.02 of the member-directed plan document, or rule 145-1-76 of the Administrative Code, other than 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, or any plan that includes a partial lump sum option payment;

(2) Elect to participate in a different defined contribution plan or the PERS defined benefit plan, as provided under section 145.814 of the Revised Code;

(3) Apply for and receive a refund of a member’s accumulated contributions and any applicable amounts pursuant to section 145.40 of the Revised Code or article VIII of the member-directed or combined plan document;

(4) Designate a beneficiary under section 145.384, 145.43, or 145.64 of the Revised Code.

(F) Notwithstanding paragraphs (B), (C), and (D) of this rule, power of attorney and guardianship of estate shall not be required if:

(1) The lump sum amount payable to a recipient, regardless of the recipient’s legal disability or age and when the recipient who is in the care of the recipient’s parent, that does not exceed ten thousand dollars per recipient

(2) The annual amount payable to a recipient under eighteen who is in the care of the recipient’s parent will not exceed five thousand dollars per recipient.

(3) A court of competent jurisdiction has issued 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.

(4) The recipient is a member who is eligible to receive a refund pursuant to section 145.40 of the Revised Code or article VIII of the member-directed or combined plan document and is under eighteen years of age and otherwise competent.

(G) 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.

Effective: 12/30/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.32, 145.35, 145.36, 145.361, 145.384, 145.40, 145.43, 145.45, 145.46, 145.64.

Prior Effective Dates: 4/6/07 (Emer.); 1/1/07; 1/1/06; 12/24/04; 1/1/03; 5/29/95; 8/31/92; 1/1/90; 12/9/88; 9/27/85; 10/17/73.

(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.)

Effective: 07/01/2007

R.C. 119.032 review dates: 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.384, 145.43, 145.65.

Prior Effective Dates: 4/6/07 (Emer.)

(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