LAW
Writer®
Ohio Laws and Rules
(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