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 and voting yes on a proposal shall constitute a favorable vote. An abstention from voting shall not be counted as either an affirmative or negative vote, and a member who abstains shall not be counted as a member present to determine whether a majority needed for a favorable vote has been reached. A roll call shall occur if there is a division in the vote. Any board member may request a roll call on any vote.

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

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

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

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

(d) Adjournment.

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

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

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

(C) Officers and their duties

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

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

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

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

(D) Committees

(1) The investment committee shall consist of all board members. The chair of the investment committee shall be appointed by the board chair. The investment committee shall, through its chair and its written reports, make recommendations to the board on investment related policies and actions. 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: 10/01/2009

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: 3/29/76, 12/12/76, 5/9/88, 10/11/88, 4/5/93, 4/30/94, 6/1/96, 7/6/00, 1/5/01, 3/22/02, 12/24/04, 11/30/07

(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: 09/24/2009 and 09/24/2014

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: 09/24/2009 and 09/24/2014

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 amount credited to the member’s employer contribution account pursuant to section 145.483 of the Revised Code shall vest in accordance with section 7.02 of the member-directed plan document. If the member receives a distribution under article VII of the member-directed plan document, the non-vested portion of the employee contributions shall be refunded ot the employer.

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

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

Effective: 07/11/2009

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

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.47, 145.48, 145.483, 145.49.

Prior Effective Dates: 12/20/72; 11/2/91; 10/4/93; 5/3/97; 11/2/00; 1/1/03; 1/1/06; 1/1/09

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 cannot:

(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: 01/01/2009

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: 8/9/07; 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, certified abstract of marriage, or marriage license that evidences the marriage has been legally solemnized;

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

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

(4) A copy of a social security card.

Effective: 01/01/2009

R.C. 119.032 review dates: 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: 1/1/06; 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 amount paid to a benefit recipient pursuant to section 145.32, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 145.37 or 145.46 of the Revised Code calculated after the receipt of the final report of retirement contributions upon which the member appears;

(b) Any monthly additional annuity benefit paid to a member or contributor pursuant to section 145.64 of the Revised Code calculated as provided in paragraph (F)(3) of this rule;

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

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

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

(2) “Interim benefit payment” means:

(a) Any monthly benefit amount paid to a benefit recipient pursuant to section 145.32, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 145.37 or 145.46 of the Revised Code prior to the payment of a finalized retirement benefit;

(b) Any monthly additional annuity amount paid to a member or contributor pursuant to section 145.64 of the Revised Code calculated as provided in paragraph (F)(1) of this rule;

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

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

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

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

(4) “Partial lump sum option payment” means the lump sum payment described in division (A)(2) of section 145.45, division (B)(4) of section 145.46 of the Revised Code, or section 9.03(e)(3) of the combined plan document. In the case of a monthly annuity paid pursuant to section 9.02 of the combined or member-directed plan document, “partial lump sum option payment” means the lump sum payment a member may elect for the member’s monthly annuity plan of payment.

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

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

(C) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.34, 145.37, 145.46, or 145.64 of the Revised Code, sections 9.02 or 9.03 of the combined plan document, or section 9.02 of the member-directed plan document, that includes a partial lump sum option payment, shall receive the partial lump sum option payment no earlier than thirty days after issuance of the initial benefit payment.

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

(1)

(a) The member is eligible for retirement pursuant to section 145.32, 145.33, 145.331, 145.34, 145.37, or 145.46 of the Revised Code or article IX of the combined or member-directed plan document at the time the retirement application is filed;

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

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

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

(2)

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

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

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

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

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

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

(F)

(1) For benefits payable under the traditional pension plan and section 9.03 of the combined plan document, an interim benefit payment shall be calculated using the earnable salary and service credit available in the account of a member or contributor at the time of the calculation and, if the member or contributor makes payment for an additional annuity pursuant to section 145.62 of the Revised Code, using the additional annuity account available in the member’s account at the time of the calculation. For a monthly annuity payment option under section 9.02 of the combined or member-directed plan document, an interim benefit payment shall be calculated using the portion of the member’s individual defined contribution account specified by the member on the member’s retirement application.

(2)

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

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

(c)

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

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

(3) Except as provided in this paragraph, the retirement system shall not revise the monthly additional annuity of a member or contributor calculated under paragraph (F)(1) of this rule. If, on the application for an age and service retirement benefit, a member or contributor elects to deposit additional amounts for the payment of an additional annuity, the retirement system shall revise the monthly additional annuity benefit in accordance with paragraph (F)(2) of this rule no earlier than sixty days after the issuance of the initial benefit payment.

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

(H)

(1) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.34, 145.37, 145.46, or 145.64 of the Revised Code, section 9.02 or 9.03 of the combined plan document, or section 9.02 of the member-directed plan document that does not include a partial lump sum option payment may elect to receive a partial lump sum option payment, or the member or contributor may change the their plan of payment, at any time prior to issuance of the finalized retirement benefit payment.

(2) A beneficiary applying for a benefit under division (A)(2) of section 145.45 of the Revised Code, or a member or contributor applying for a monthly benefit under section 145.32, 145.33, 145.331, 145.34, 145.37, 145.46, or 145.64 of the Revised Code, section 9.02 or 9.03 of the combined plan document, or section 9.02 of the member-directed plan document, that includes a partial lump sum option payment may change their partial lump sum option payment amount, or the member or contributor may change their plan of payment, at any time prior to issuance of the partial lump sum option payment or transfer of the partial lump sum option payment by the retirement system to their financial institution.

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

Effective: 01/12/2008

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

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.80.

Rule Amplifies: 145.32, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 145.37, 145.43, 145.45, 145.46, 145.64, 145.82

Prior Effective Dates: 7/1/07; 4/6/07 (Emer); 10/27/06; 1/1/06; 12/24/04; 2/16/04; 1/1/04 (Emer.); 6/20/03; 1/1/03; 5/29/95; 10/31/94; 3/30/92

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

Effective: 01/01/2009

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

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.80

Rule Amplifies: 145.23, 145.33, 145.331, 145.36, 145.361, 145.37, 145.384, 145.45, 145.46, 145.81

Prior Effective Dates: 1/1/06; 1/1/03; 10/7/01; 2/1/93; 2/21/73

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

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

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

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: 145.562

Prior Effective Dates: 1/1/03, 11/2/91, 3/17/65

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

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

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

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

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

Effective: 07/01/2007

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

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.46.

Rule Amplifies: 145.32, 145.33, 145.331, 145.34, 145.37, 145.384, 145.40, 145.46, 145.63, 145.64

Prior Effective Dates: 4/6/07 (Emer.); 1/1/06; 1/1/03; 11/2/00; 9/27/98; 2/1/93; 8/6/90; 4/5/01

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

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

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

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

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

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

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

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

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

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

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

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

(1) The retirement system has made a distribution from a retiree medical account or 401(h) retiree medical account, as those terms are defined in rule 145-4-01 of the Administrative Code.

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

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

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

Effective: 01/12/2008

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

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.32, 145.33, 145.331, 145.34, 145.35, 145.36, 145.361, 145.37, 145.384, 145.45, 145.46.

Prior Effective Dates: 7/1/07; 4/6/07 (Emer.); 1/1/06; 12/24/04; 2/16/04; 1/1/04 (Emer.); 1/1/03; 10/9/00; 3/30/92; 8/6/90; 6/19/74

(A) For purposes of this rule:

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

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

(B)

(1) Subsequent to the time the public employees retirement system receives an order, an alternate payee shall provide information required on a form provided by the retirement system. An alternate payee shall notify this retirement system in writing of any change in the information.

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

(C) Pursuant to section 3105.90 of the Revised Code, an order shall be on the form prescribed by the appendix to this rule. The public employees retirement system shall accept the version of the form prescribed by the appendix to former rule 145-1-72, effective January 1, 2003 and the version of the form prescribed by the current appendix until December 31, 2003. After December 31, 2003, the public employees retirement system shall only accept the form prescribed by the current appendix.

Appendix 145-1-72

IN THE COURT OF COMMON PLEAS OF __________ COUNTY, OHIO

DIVISION OF DOMESTIC RELATIONS

______________________________ : Plaintiff/Petitioner, : : Case No.

v.                               :

                                                                     Judge

______________________________ : Defendant/Petitioner. :

The Court finds the following facts and issues the following Order pursuant to Sections 3105.80 to 3105.90, Revised Code:

I. Terms:

A. The “Plan Participant” or “Participant” means __________, Social Security number __________, whose date of birth is; __________, whose current address is ______________________________, and whose current mailing address is ______________________________.

B. The “Alternate Payee” means ______________________________, Social Security number __________, whose date of birth is __________, whose current address is __________, and whose current mailing address is __________.

C. The “Public Retirement Program(s) means (please check the name and address of the public retirement program(s) and/or University/College Alternative Retirement Plan Administrator):

[] Ohio Public Employees Retirement System 277 East Town Street Columbus, Ohio 43215-4642

[] State Teachers Retirement System of Ohio 275 East Broad Street Columbus, Ohio 43215-3771

[] School Employees Retirement System of Ohio 300 East Broad Street Suite 100 Columbus, Ohio 43215-3746

[] Ohio Police and Fire Pension Fund 140 East Town Street Columbus, Ohio 43215

[] Ohio State Highway Patrol Retirement System 6161 Busch Boulevard Suite 119 Columbus, Ohio 43229-2553

[] University/College Alternative Retirement Plan Name and address of University/College Plan Administrator: ______________________________ ______________________________

D. Obligation of Plan Participant and Alternate Payee: The Plan Participant and the Alternate Payee are ordered to notify in writing the Public Retirement Program of a change in the individual’s mailing address.

II. Amount Payable to the Alternate Payee: Upon the Plan Participant receiving a payment from the Public Retirement Program, the court orders that the Alternate Payee shall receive payment in accordance with and subject to the limitations set forth in Sections 3105.82 to 3105.90, Revised Code. Please designate the type and the method of payment:

A. Type of Payment: If the Participant is eligible to receive more than one benefit payment or more than one lump sum payment, please check the benefit(s) or lump sum payment(s) from which payment to the Alternate Payee shall be made. If no benefit or lump sum payment is designated, the Alternate Payee shall receive payment from the first benefit payment or lump sum payment for which the Participant is eligible to apply and to receive. Please check all applicable benefit(s) or lump sum payment(s):

[] Age and service retirement benefit, including Partial Lump Sum Payments received under Sections 145.46(B)(3),3307.60(B), 3309.46(B)(3), or 5505.162(A)(3), Revised Code, and Deferred Retirement Option Plan under Section 742.43, Revised Code.

[] Age and service retirement benefit, but excluding Partial Lump Sum Payments received under Sections 145.46(B)(3),3307.60(B), 3309.46(B)(3) or 5505.162(A)(3), Revised Code, and Deferred Retirement Option Plan under Section 742.43, Revised Code.

[] Disability monthly benefit

[] Account refund

[] Additional money purchase annuity /additional annuity lump sum refund

[] Reemployed retiree money purchase annuity (when monthly payment exceeds $25.00) or lump sum refund

[] Defined contribution plan benefit

B. Method of Payment: If the Plan Participant is a reemployed retiree contributing to a money purchase annuity or is eligible to receive or is receiving monthly benefits or a lump sum payment from a money purchase annuity, the Alternate Payee shall receive payment from the money purchase annuity and any other type of payment designated in Paragraph II(A) above in a monthly or one-time dollar amount as specified in Paragraph II(B)(1)(a) below. If the Plan Participant is participating in the defined contribution program, or any of its constituent plans, the Alternate Payee shall receive payment from the defined contribution program, or any of its constituent plans, and any other type of payment designated in Paragraph II(A) above in a percentage of a fraction as specified in Paragraph II(B)(2) below. If the Plan Participant is participating in any other plan in a Public Retirement Program, the Alternate Payee shall receive payment in either a dollar amount or a percentage of a fraction as specified below (i.e. Please complete Dollar Amount or Percentage).

1. Dollar Amount: Please complete both Paragraphs II(B)(1)(a) and (b) below:-

a. If the Participant elects a plan of payment that consists of a lump sum payment or a plan of payment that consists of periodic benefits:

$__________ per benefit from the Participant’s periodic benefit upon the Participant’s receipt of the aggregate periodic benefit; or

$__________ from the Participant’s lump sum payment upon the Participant’s receipt of the payment.

b. If the Participant elects a plan of payment consisting of both a lump sum benefit and a periodic benefit:

$__________ per benefit from the Participant’s periodic benefit upon the Participant’s receipt of the periodic benefit; and

$__________ from the Participant’s lump sum benefit upon the Participant’s receipt of the payment.

OR

2. Percentage:

a. If the Participant elects a plan of payment that consists of either periodic benefits or a lump sum payment, the Public Retirement Program shall pay directly to the Alternate Payee per benefit or in a one-time lump sum payment __________ percent (__________ %) of a fraction as set forth in Paragraph II(B)(2)(c) below of the Plan Participant’s periodic benefit or one-time lump sum payment.

b. If the Plan Participant elects a plan of payment consisting of both a lump sum benefit and a periodic benefit, the Public Retirement Program shall pay directly to the Alternate Payee percent (__________ %) of a fraction as set forth in Paragraph II(B)(2)(c) below of the Plan Participant’s periodic benefit and __________ percent (__________ %) of a fraction as set forth below of the Plan Participant’s lump sum benefit.

c. Fraction:

i. The numerator of the fraction shall be __________ which is the number of years during which the Plan Participant was both a member of the Public Retirement Program and married to the Alternate Payee. The date of marriage is __________ .

ii. The denominator, which shall be determined by the Public Retirement Program at the time that the Plan Participant elects to take a benefit or a payment, shall be the Participant’s total years of service credit with the Public Retirement Program or, in the case of a Participant in a retirement plan established under Chapter 3305, Revised Code, the years of participation in the plan.

C. Applicable Benefit: The monthly benefit amount used to determine the amount paid to the Alternate Payee from the Participant’s monthly benefit shall be whichever applies:

1. If the Participant is receiving a monthly benefit, the monthly benefit shall be the gross monthly benefit the Participant is receiving at the time the decree of divorce or dissolution becomes final. The effective date of the decree of divorce, dissolution, or legal separation is __________ ;

2. If the Participant has applied for but is not yet receiving a monthly benefit, the monthly benefit shall be the benefit for which the Participant is eligible;

3. If the Participant has not applied for a benefit, the monthly benefit shall be the benefit calculated at the time the Participant elects to take the benefit.

D. Minimum Benefit Notice: The total amount paid to the Alternate Payee pursuant to this order plus any administrative fee charged to the Participant and Alternate Payee as authorized by Section 3105.84, Revised Code, shall not exceed fifty percent of the amount of a benefit or lump sum payment that the Plan Participant is to receive or, if withholding is to be made from more than one benefit or lump sum payment, fifty percent of the total of the benefits or lump sum payments that the Plan Participant is to receive. If the Plan Participant’s benefit or lump sum payment is or will be subject to more than one order issued pursuant to Section 3105.81, Revised Code, the Public Retirement Program shall not withhold an aggregate amount for all the orders plus the administrative fee(s) charged to the Participant and Alternate Payee as authorized by Section 3105.84, Revised Code, that exceeds fifty percent of the benefit or lump sum payment.

III. Notification to Alternate Payee: The Alternate Payee is hereby notified of the following:

A. The Alternate Payee’s right to payment under this Order is conditional on the Plan Participant’s right to a benefit payment or lump sum payment from the Public Retirement Program;

B. When the Plan Participant’s benefit or lump sum payment is subject to more than one order under Section 3105.81, Revised Code, or to an order described in Section 3105.81, Revised Code and a withholding order under Section 3121.03, Revised Code, the amount paid to the Alternate Payee under this order may be reduced based on the priority of the other orders;

C. The Alternate Payee’s right to receive an amount from the benefit payment or lump sum payment to the Plan Participant shall terminate upon:

1. The death of the Plan Participant;

2. The death of the Alternate Payee;

3. The termination of a benefit pursuant to the governing laws of the Public Retirement Program.

IV. Administrative Fee: Pursuant to Section 3105.84, Revised Code, this order authorizes the Public Retirement Program that is or will be paying the benefit or lump sum payment to withhold from any benefit or payment that is subject to this order an amount determined by the Public Retirement Program to be necessary to defray the cost of administering the order. This amount shall be divided equally between the Plan Participant and the Alternate Payee.

V. Application of Order: This order applies to payments made by the Public Retirement Program after retention of the Order under Section 145.571, 742.462,3305.21, 3307.371, 3309.671, or 5505.261, Revised Code.

VI. Additional Limitations on Order:

A. Payments under this order shall commence as provided under Section 145.571, 742.462, 3305.21, 3307.371, 3309.671, or 5505.261, Revised Code.

B. The Alternate Payee has no right or privilege under the law governing the Public Retirement Program that is not otherwise provided in the governing law.

C. This order shall not require the Public Retirement Program to take any action or provide any benefit, allowance, or payment not authorized under the law governing the Public Retirement Program.

VII. Notice of Order:

A. The clerk of courts shall transmit a certified copy of this order to the Public Retirement Program(s) named in the order.

B. On receipt of this order, the Public Retirement Program shall determine whether the order meets the requirements as set forth in Sections 3105.80 to 3105.90, Revised Code.

C. The Public Retirement Program shall retain the order in the Plan Participant’s record if the order meets the requirements in Sections 3105.80 to 3105.90, Revised Code.

D. The Public Retirement Program shall return, by regular mail, to the clerk of courts of the court that issued the order any order the Public Retirement Program determines does not meet the requirements in Sections 3105.80 to 3105.90, Revised Code, no later than sixty days after the Public Retirement Program’s receipt of the order.

VIII. Jurisdiction of the Court: The Court shall retain jurisdiction to modify, supervise, or enforce the implementation of this order notwithstanding Section3105.171(I), Revised Code.

APPROVED:

Signature of Attorney for Plaintiff/Petitioner

Attorney for Plaintiff/Petitioner (please type or print name)

Supreme Court No.

Address

Address

Signature of Attorney for Defendant/Petitioner

Attorney for Defendant/Petitioner (please type or print name)

Supreme Court No.

Address

Address

SO ORDERED.

______________________________ Judge

Division of Property Order approved per Section 145.571, 742.462, 3305.21, 3307.371,3309.671, or 5505.261, Revised Code, for filing and submission.______________________________

Retirement System______________________________

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: 145.561, 3105.80, 3105.81, 3105.82, 3105.821, 3105.83, 3105.84, 3105.85, 3105.86, 3105.87, 3105.88, 3105.89, 3105.90

Prior Effective Dates: 8/22/03, 1/1/03, 3/22/02, 1/1/02 (Emer.)

(A)

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

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

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

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

(B)

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

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

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

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

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

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

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

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

(1) The retirement system has made a distribution from a retiree medical account or 401(h) retiree medical account, as those terms are defined in rule 145-4-01 of the Administrative Code;

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

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

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

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

Effective: 01/12/2008

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

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.384, 145.40, 145.401.

Prior Effective Dates: 7/1/07; 4/6/07 (Emer.); 1/1/06; 2/16/04; 1/1/04 (Emer.)

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

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

(2) “Nonuniformed retirement system” means the public employees retirement system, state teachers retirement system and school employees retirement system.

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

(4) “Uniformed retirement system” means the Ohio police and fire pension fund and the highway patrol retirement system.

(B)

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

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

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

(C)

(1)

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

(i) Apply for a benefit if eligible pursuant to section 145.32, 145.33, 145.34, 145.37 or 145.46 of the Revised Code; or

(ii) Apply for a refund of contributions pursuant to section 145.40 of the Revised Code.

(b) If the member applies for a benefit described in paragraph (C)(1)(a)(i) of this rule, the system shall calculate the benefit with any necessary reduction for concurrent service among the systems.

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

(a) Apply for a benefit if eligible pursuant to section 145.32, 145.33, 145.34, or 145.46 of the Revised Code;

(b) Apply for a refund of contributions pursuant to section 145.40 of the Revised Code; or

(c) If as of the effective retirement benefit date from a uniformed retirement system the member has sufficient service credit to qualify for a benefit in this system, the member’s effective retirement benefit date shall be the first of the month following the later of the member’s benefit date in the uniformed retirement system or attainment of eligibility for a benefit in this system.

(3)

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

(b) If the member has been continuously employed in such position for at least two months prior to the member’s effective retirement benefit date in the uniformed system, the member may, upon termination of all sercice, elect to have the contributions to this system made prior to the effective retirement benefit date in the uniformed system also accrue the same benefit or payment described in section 145.384 of the Revised Code. The accrual of allowable interest shall not begin until after the effective retirement benefit date in the other uniformed system.

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, 145.38.

Rule Amplifies: 145.38, 145.382.

Prior Effective Dates: 1/1/03, 4/5/01, 2/3/00, 3/17/94, 8/1/92

(A) Definitions

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

(1) “PERS retirant” means any former member of the public employees retirement system who retires as provided in section 145.32, 145.331, or 145.37 of the Revised Code and is receiving a retirement allowance as provided in section 145.33, 145.331, 145.34 or 145.46 of the Revised Code.

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

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

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

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

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

(B) Elective positions

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

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

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

(D) Employment by legislative authority

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

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

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

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

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

(a) Section 145.38 of the Revised Code; or

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

(3)

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

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

(E) Health care coverage

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

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

(3) If the retirant is covered under the employer’s health care plan, health care claims paid by the retirement system shall be reduced by the benefits provided under the employer’s health care plan. If the retirant should be covered under the employer’s health care plan as required by section 145.38 of the Revised Code but fails to enroll in the employer’s health care plan, the retirement system shall not pay any reduced or primary coverage claims for any period that the retirant failed to enroll in the employer’s health care plan.

(F) Re-employment of a disability benefit recipient

(1) The retirement board shall terminate the benefit of a disability benefit recipient who is employed by, or who provides services under a contract as an independent contractor for, a public employer.

(2) The retirement board shall review the employment of a disability benefit recipient who is employed or compensated by an employer other than a public employer in a position similar to the position the recipient held as a public employee to determine if the recipient must undergo a medical examination to determine if the disability is ongoing or whether the benefit should be terminated.

(G) Determinations

A retirant or benefit recipient may request a determination from the retirement system as to the effect on the benefit of the retirant or recipient of a return to employment covered by Chapter 145. of the Revised Code or other employment.

Effective: 07/11/2009

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

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.38.

Rule Amplifies: 145.362, 145.37, 145.38, 145.382.

Prior Effective Dates: 2/19/60; 9/6/88; 8/1/92; 2/1/93; 3/17/94; 1/31/98; 8/1/98; 4/5/01; 2/14/02; 1/1/03; 1/1/06; 1/1/07; 1/1/09

(A)

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

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

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

(C) Unless voided by an event as described in division (G) of section 145.384 of the Revised Code, the designation of a beneficiary by a PERS or other system retirant shall apply for all re-employment periods except for a period for which a benefit has already been paid or for which a retirant is accruing a supplemental benefit.

(D) If a retirant makes an application for a benefit pursuant to division (B)(2) of section 145.384 of the Revised Code, the retirant shall select a plan of payment as described in divisions (B)(1), (B)(3)(a) to (B)(3)(c), and (B)(3)(e) of section 145.46 of the Revised Code, and designate a beneficiary.

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

Effective: 06/23/2008

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

Promulgated Under: 111.15

Statutory Authority: 145.09.

Rule Amplifies: 145.38, 145.383, 145.384.

Prior Effective Dates: 4/1/08 (Emer.); 10/27/06; 6/20/03; 1/1/03; 4/5/01; 8/1/92

(A) This rule amplifies sections 145.38, 145.382, 145.383, and 145.384 of the Revised Code and rules 145-1-74 to 145-1-78 of the Administrative Code.

(B) As used in rules 145-1-74 to 145-1-78 of the Administrative Code, “PERS retirant” includes a member or former member of the public employees retirement system who is or has received a payment under article IX of the combined plan document or member-directed plan document, and has not withdrawn the application for retirement pursuant to rule 145-1-71 of the Administrative Code.

Effective: 01/01/2006

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

Promulgated Under: 111.15

Statutory Authority: 145.80.

Rule Amplifies: 145.38, 145.382, 145.383, 145.384.

Prior Effective Dates: 1/1/03

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

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

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

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

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

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

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

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

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

(a) Apply for a benefit pursuant to section 145.32, 145.33, 145.34, or 145.46 of the Revised Code, for the active position which has the highest PERS annual salary, and,

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

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

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

(a) Apply for a benefit pursuant to section 145.32, 145.33, 145.34 or 145.46 of the Revised Code, for the active position which has the highest annual compensation, and,

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

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

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

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

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.383

Rule Amplifies: 145.383

Prior Effective Dates: 1/1/03, 4/5/01

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

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

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

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, 145.381.

Rule Amplifies: 145.381.

Prior Effective Dates: 1/12/04, 10/23/03 (Emer.)

(A) If a member has filed an application for retirement pursuant to section 145.32, 145.33, 145.331, 145.34, 145.37 or 145.46 of the Revised Code or article IX of the combined or member-directed plan documents and the member’s death occurs subsequent to the effective retirement benefit date, the beneficiary and benefit payable shall be determined by the plan of payment and beneficiary designated by the member on the application for retirement benefits.

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

Effective: 01/01/2009

R.C. 119.032 review dates: 05/26/2010

Promulgated Under: 111.15

Statutory Authority: 145.09, 145.38

Rule Amplifies: 145.32, 145.33, 145.331, 145.34, 145.37, 145.38, 145.382, 145.383, 145.384, 145.46

Prior Effective Dates: 8/11/05; 6/6/05 (Emer.); 1/1/03; 3/22/02; 11/2/00; 2/1/93; 2/3/92; 8/6/90; 2/15/67

(A) “Traditional pension plan” means the PERS defined benefit plan established under sections 145.201 to 145.79 of the Revised Code.

(B) “Combined plan” means the PERS combined defined benefit/defined contribution plan established under section 145.81 of the Revised Code.

(C) “Member-directed plan” means the PERS defined contribution plan established under section 145.81 of the Revised Code.

Effective: 01/01/2006

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

Promulgated Under: 111.15

Statutory Authority: 145.80

Rule Amplifies: 145.81

Prior Effective Dates: 1/1/03

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

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

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

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

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

Promulgated Under: 111.15

Statutory Authority: 145.80

Rule Amplifies: 145.171, 145.81

Prior Effective Dates: 1/1/03

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

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

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

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

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

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

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

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

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

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

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

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

R.C. 119.032 review dates: 09/14/2007 and 09/29/2010

Promulgated Under: 111.15

Statutory Authority: 145.09

Rule Amplifies: 145.19, 145.191

Prior Effective Dates: 11/15/03

(A) This rule amplifies division (C) of section 145.191 of the Revised Code.

(B) For each member or contributor who requests a transfer of accumulated contributions under division (C) of section 145.191 of the Revised Code, the public employees retirement system shall do all of the following:

(1) Credit to the participant contribution account the accumulated contributions of the member or contributor, other than those described in paragraph (B)(2) of this rule.

(2) Credit to the miscellaneous contribution account or rollover account, as appropriate, the portion of the accumulated contrbutions that represent additional deposits made under division (C) of section 145.23 of the Revised Code, as that section existed immediately prior to April 6, 2007.

Effective: 01/01/2009

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

Promulgated Under: 111.15

Statutory Authority: 145.80

Rule Amplifies: 145.191(C), 145.81

Prior Effective Dates: 1/1/06; 1/1/03

(A) This rule amplifies section 2.04(b) of the combined plan document and member-directed plan document.

(B) A member participating in the combined plan or member-directed plan described in section 2.04(b) of the combined plan document and member-directed plan document, as appropriate, may elect to have the amounts standing to the member’s credit under the member’s prior plan deposited and credited to the traditional pension plan in accordance with rules 145-1-88, 145-1-89, and 145-2-18 of the Administrative Code.

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

Promulgated Under: 111.15

Statutory Authority: 145.80

Rule Amplifies: 145.19(D)(1), 145.191(E)(2), 145.193, 145.81.

Prior Effective Dates: 1/1/03

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

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

(1) “Additional liability,” and “eligible member” have the same meanings as in section 145.814 of the Revised Code;

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

(C)

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

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

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

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

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

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

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

(E) An election to transfer to the traditional pension plan under section 10.03(a) of the combined plan document for the payment of a disability benefit is irrevocable. If the eligible member subsequently returns to service as a public employee, the member shall remain a member of the traditional pension plan and is not eligible to make an election under paragraph (C)(2) of this rule.

Effective: 01/01/2009

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

Promulgated Under: 111.15

Statutory Authority: 145.80

Rule Amplifies: 145.81, 145.814

Prior Effective Dates: 1/1/06; 11/15/03; 1/1/03

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

(B) Not later than one hundred eighty days after the effective date of an election under rule 145-1-88 of the Administrative Code, an eligible member who elects a different plan under that rule may have the amounts on deposit for the prior plan transferred in accordance with the member’s new plan if one of the following applies:

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

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

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

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

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

Promulgated Under: 111.15

Statutory Authority: 145.80.

Rule Amplifies: 145.81, 145.814

Prior Effective Dates: 1/1/03