Chapter 145-3 Contributions

145-3-01 Plan documents.

(A) This rule amplifies sections 145.81 and 145.811 of the Revised Code.

(B) To meet the requirements of section 401(a) of the Internal Revenue Code, the public employees retirement board shall adopt the documents entitled the "public employees retirement system of Ohio defined contribution plan" and the "public employees retirement system of Ohio combined defined benefit/defined contribution plan." The board may amend the provisions of the plans in accordance with the provisions of the plan documents.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.811
Prior Effective Dates: 1/1/03

145-3-02 Combined and member-directed plan provisions.

(A) The combined plan consists of all of the following:

(1) Sections 145.01 to 145.20 and 145.80 to 145.98 of the Revised Code and any corresponding administrative rules;

(2) The provisions of the plan document for the PERS combined defined benefit/defined contribution plan, and any amendments thereto;

(3) Any rules adopted pursuant to section 145.80 of the Revised Code.

(B) The member-directed plan consists of all of the following:

(1) Section 145.01 to 145.20 and 145.80 to 145.98 of the Revised Code and any corresponding administrative rules;

(2) The provisions of the plan document for the PERS defined contribution plan, and any amendments thereto;

(3) Any rules adopted pursuant to section 145.80 of the Revised Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.82
Prior Effective Dates: 1/1/03, 12/24/04

145-3-04 Impact of weekend or holiday on initial plan selection.

(A) This rule amplifies section 145.19 of the Revised Code and sections 2.01 of the combined and member-directed plan documents.

(B) If the last day of the one hundred-eighty-day election period occurs on a weekend or holiday, the public employees retirement system may accept the election on the first business day after the last day of the one hundred-eighty-day period.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.19(A)
Prior Effective Dates: 1/1/12

145-3-06 Procedure for additional deposits.

(A) This rule amplifies section 3.04 of the combined plan document and member-directed plan document.

(B) A member participating in the combined plan or member-directed plan who makes a payment of additional after-tax contributions to the member's miscellaneous contribution account shall remit the payment with a form provided by the public employees retirement system.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81
Prior Effective Dates: 1/1/03, 12/24/04, 7/1/07 (Emer.), 8/9/07

145-3-08 Active/inactive administrative fee.

(A) This rule amplifies section 24.03(a)(2) and (3) of the combined plan document and section 21.03(a)(2) and (3) of the member-directed plan document.

(B) The public employees retirement board shall establish the administrative fee, if any, to be assessed under section 24.03(a)(2) and (3) of the combined plan document and section 21.03(a)(2) and (3) of the member-directed plan document.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.88(A)
Prior Effective Dates: 1/1/03

145-3-10 Application by participant for refund of contributions.

(A) This rule amplifies section 8.01(c) of the member-directed plan document and section 8.04(c) of the combined plan document.

(B) For purposes of section 8.01(c) of the member-directed plan document and section 8.04(c) of the combined plan document, "eligible for benefits under article IX" means a participant is eligible for a benefit under section 9.01 of the member-directed plan document or combined plan document with an effective retirement benefit date on or before the first of the month following the date application for a refund is received by the public employees retirement system.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81
Prior Effective Dates: 1/1/03

145-3-11 Waiver of spousal consent.

(A) This rule amplifies sections 9.02(b) and 9.03(e) of the combined plan document and section 9.02(b) of the member-directed plan document.

(B) For payment options under the combined plan or the member-directed plan, the board may waive the requirement of spousal consent in accordance with rule 145-1-70 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81
Prior Effective Dates: 1/1/03

145-3-13 Beneficiary and payment plan changes after retirement.

(A) This rule amplifies section 9.03(e) of the combined plan document and, in the case of a monthly annuity payment option only, sections 9.02 of the combined and member-directed plan documents.

(B) Beneficiary and plan of payment changes for a retirement allowance under section 9.03(e) of the combined plan document or for a monthly annuity under section 9.02 of the combined plan document shall be made in accordance with rules 145-2-44, 145-2-46, and 145-2-47 of the Administrative Code.

(C) Beneficiary and plan of payment changes for a monthly annuity under section 9.02 of the member-directed plan document shall be made in accordance with rules 145-2-44 and 145-2-47 of the Administrative Code.

Replaces: 145-3-61.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.80
Prior Effective Dates: 10/27/06

145-3-14 Designation of beneficiaries under the multiple-life plan.

(A) This rule amplifies section 9.03(e) of the combined plan document and, in the case of a monthly annuity payment option only, sections 9.02 of the combined and member-directed plan documents

(B) Designation of beneficiaries pursuant to a plan of payment under which a portion of the benefit continues, after the death of the retirant, to two, three, or four surviving beneficiaries shall be made in accordance with rule 145-2-60 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.80
Prior Effective Dates: 10/27/06, 1/1/14

145-3-15 Calculation of amount due retirant with multiple beneficiaries under the multiple-life plan.

(A) This rule amplifies section 9.03(e) of the combined plan document and, in the case of a monthly annuity payment option only, sections 9.02 of the combined and member-directed plan documents.

(B) Calculation of the amount due to a retirant receiving a benefit pursuant to a plan of payment under which a portion of the benefit continues, after the death of the retirant, to two, three, or four surviving beneficiaries shall be calculated in accordance with rule 145-2-62 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.80
Prior Effective Dates: 10/27/06, 9/1/13 (Emer.), 9/16/13

145-3-16 Priority of multiple court orders under the multiple-life plan.

(A) This rule amplifies section 9.03(e) of the combined plan document and, in the case of a monthly annuity payment option only, sections 9.02 of the combined and member-directed plan documents.

(B) The priority of multiple court orders shall be established in accordance with rule 145-2-64 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.80
Prior Effective Dates: 10/27/06, 9/1/13 (Emer.), 9/16/13

145-3-21 Purchase of service credit by combined plan members.

(A) This rule amplifies division (C) of section 145.82 of the Revised Code and section 3.05 of the combined plan document.

(B) A member participating in the combined plan may purchase service credit under section 145.20, 145.201, 145.291, 145.292, 145.293, 145.299, 145.2915, 145.302, or 145.47 of the Revised Code, former section 145.295, 145.2911, or 145.2913 of the Revised Code as they existed prior to January 7, 2013, or section 3.11 or 3.12 of the combined plan document.

(C) For purposes of determining the member's eligibility to purchase service credit under section 145.28, 145.295, 145.2911, or 145.2913 of the Revised Code or section 3.11 of the combined plan document, "eighteen months of contributing service credit in the system" means eighteen months of contributing service credit under the combined plan, inclusive of service credit transferred from a prior plan to the combined plan pursuant to rule 145-3-40 of the Administrative Code.

Effective: 1/1/2016
Five Year Review (FYR) Dates: 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.01, 145.20, 145.201, 145.28, 145.29, 145.291, 145.292, 145.293, 145.295, 145.299, 145.2911, 145.2913, 145.2915, 145.301, 145.302, 145.47, 145.81, 145.82
Prior Effective Dates: 1/1/03, 12/24/04, 1/1/09, 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13

145-3-22 Restored service.

(A) This rule amplifies section 145.97 of the Revised Code and section 3.06 of the combined plan document.

(B) A member participating in the combined plan or a former member who participated in the combined plan may redeposit the amounts withdrawn under article VIII of the combined plan, subject to all of the following:

(1) The member or former member has at least eighteen months of contributing service in the combined plan or in the Ohio police and fire pension fund or state highway patrol retirement system;

(2) The member or former member shall redeposit the amount withdrawn with interest on that amount compounded annually at a rate to be determined by the public employees retirement board from the first day of the month of withdrawal to and including the month of redeposit.

(3) If a former member is eligible to buy the service credit as a member of the Ohio police and fire pension fund, state highway patrol retirement system, or the city of Cincinnati retirement system, the former member is ineligible to restore that service credit under this section.

(C) The amount withdrawn shall be redeposited and credited as follows:

(1) To the employers' accumulation fund, the amount that equals the amount, if any, distributed under section 8.02 of the combined plan document.

(2) To the member's accounts, as defined in section 1.01 of the combined plan document, the amount distributed under section 8.01 of the combined plan document.

(3) To the member's account in the employees' savings fund, any remaining amount including the interest required in paragraph (B)(2) of this rule.

(D) The member may choose to purchase only part of such credit in any one payment, subject to rules adopted by the board. Except for the amount described in paragraph (C)(1) of this rule, the amounts paid to restore service credit under this rule shall vest as described in section 7.01 of the combined plan document.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.82, 145.97
Prior Effective Dates: 1/1/03, 12/24/04, 1/7/13 (Emer.), 3/24/13

145-3-23 Additional liability for service purchases in the combined plan.

(A) This rule amplifies section 145.29 of the Revised Code.

(B) As used in this rule, "service credit" means both of the following:

(1) Service credit that may be purchased or obtained under sections 145.20, 145.201, 145.291, 145.292, 145.293, 145.299, and 145.47 of the Revised Code, as those sections existed on and after January 7, 2013.

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

(C)

(1) Except as provided in this paragraph, the public employees retirement system shall calculate the cost to purchase service credit by using the greater of the member's final average salary or the member's earnable salary for the twelve months of contributing service under the combined plan immediately preceding the month in which the application to purchase is received by the system. If the member's election to purchase service described in paragraph (B)(2) of this rule occurs less than twelve months after the effective date of a plan change, the system shall calculate the cost to purchase service credit by using the final average salary or last twelve months of earnable salary in the prior plan.

(2) The public employees retirement board shall, based upon its actuary's recommendation, establish the percentage rate for the cost of the service credit under the combined plan.

(D) Payments made by a member to purchase service credit under section 145.29 of the Revised Code and this rule shall be credited to the employees' savings fund and shall be considered the accumulated contributions of the member.

Effective: 6/6/2015
Five Year Review (FYR) Dates: 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.29
Prior Effective Dates: 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13, 5/8/14, 3/23/15 (Emer)

145-3-24 Purchase of workers' compensation service.

A member participating in the combined plan may purchase service credit under section 145.2915 of the Revised Code in accordance with rule 145-2-03 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.2915
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13

145-3-25 [Rescinded] Prior service credit claimed after retirement.

Effective: 03/24/2013
R.C. 119.032 review dates: 01/04/2013
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.01, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-27 Purchase of service credit pursuant to section 145.293 of the Revised Code.

A member participating in the combined plan may purchase service credit under section 145.293 of the Revised Code in accordance with rule 145-2-04 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.293, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-28 Free military service credit.

(A) This rule amplifies section 145.30 of the Revised Code as applicable to members participating in the combined plan.

(B) Definitions

(1) "Maintained his membership" means any of the following:

(a) The member's contributions to the combined plan under section 145.85 of the Revised Code remained with the public employees retirement system during the military service;

(b) The member's contributions before the military service were refunded under article VIII of the combined plan document and redeposited in accordance with rule 145-3-22 of the Administrative Code;

(c) The member was exempt from membership or not a contributor to the retirement system before the member's military service, but Chapter 145. of the Revised Code authorizes a retroactive payment to establish membership before the member's military service.

(2) "Military service," "total service credit as defined in section 145.01 of the Revised Code of twenty years," and "was or is out of active service as a public employee by reason of having become a member of the armed forces" have the same meanings as described in rule 145-2-05 of the Administrative Code.

(3) "Was a member" means membership before the member's military service was established in the same manner as described in paragraph (B)(1) of this rule.

(C)

(1) The service credit to which a member is entitled shall be calculated from the date the member entered military service through the date the military service terminated.

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

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.30, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-29 Purchase of military service credit.

(A) This rule amplifies section 145.302 of the Revised Code as applicable to members participating in the combined plan and sections 3.12 and 24.02 of the combined plan document.

(B) A member participating in the combined plan may purchase service credit under section 145.302 of the Revised Code and section 3.12 of the combined plan document.

(C) The member shall submit report(s) of separation (form DD214) or other satisfactory documentation to the public employees retirement system as evidence of the member's military service and discharge.

(D) If a member has been in military service more than once as evidenced by more than one report of separation or service and wishes to purchase credit under section 145.302 of the Revised Code for more than one period of military service, interest as set in rule 145-1-35 of the Administrative Code shall be charged from the date the member last terminated military service.

(E) For military service purchased under section 3.12 of the combined plan document:

(1) A member shall have at least twelve months of contributing service for purposes of the calculation described in paragraph (E)(2) of this rule;

(2) The retirement system shall calculate the cost by using the greater of the member's final average salary or earnable salary for the twelve months of contributing service under Chapter 145. of the Revised Code immediately preceding the month in which the application to purchase is received by the system.

The cost of the service credit shall be not less than fifty percent of the additional liability to the combined plan resulting from that year of service as determined by an actuary employed by the public employees retirement board.

(F) Where applicable, the member's public employer shall certify information including, but not limited to, the earnable salary the member would have earned during the member's military service on a form provided by the retirement system.

(G) The employer contributions due pursuant to section 145.302 of the Revised Code shall be billed to the employer for payment after the member has paid all or part of the employee contributions due. If the employer fails to make the payments required, any employer amounts not paid shall be certified for collection and subject to the same penalty and interest described in section 145.51 of the Revised Code.

Replaces: 145-3-29

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.301, 145.302, 145.81, 145.82
Prior Effective Dates: 1/1/03, 7/7/13 (Emer.), 9/16/13

145-3-31 Additional service credit under section 145.201 of the Revised Code.

(A) This rule amplifies section 145.201 of the Revised Code as applicable to members participating in the combined plan.

(B) A member participating in the combined plan may purchase service credit under section 145.201 of the Revised Code in accordance with rule 145-2-07 of the Administrative Code.

(C) A member participating in the combined plan may elect to receive a refund of amounts paid to purchase service credit under section 145.201 of the Revised Code in accordance with rule 145-2-07 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.201, 145.82
Prior Effective Dates: 1/1/03, 4/7/07 (Emer.), 7/1/07

145-3-32 Purchase of school board member service.

(A) This rule amplifies section 145.299 of the Revised Code as applicable to members participating in the combined plan.

(B) A member participating in the combined plan may purchase service credit under section 145.299 of the Revised Code in accordance with rule 145-2-08 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.299, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-34 Purchase of exempted service credit.

(A) This rule amplifies section 3.11 of the combined plan document.

(B)

(1) For service that would have been covered by Chapter 145. of the Revised Code, but was exempted, a member shall make a request to purchase credit for this service on a form provided by the public employees retirement system.

(2) The employer for which the service was performed shall complete the certification of such service on the form and attach to the form a copy of each approved written exemption from membership on file with the employer for such member.

(3) After receipt of the completed form, the retirement system shall determine the amount of service credit that would have been earned had the service not been exempted.

(C) The service credit purchased pursuant to section 3.11 of the combined plan document and this rule shall be adjusted to the extent that one of the following apply:

(1) The service is concurrent with any other service that will be used in calculating a benefit;

(2) The purchase of the service credit results in more than twelve months of credit in a year.

Replaces: 145-3-34

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09, 145.80
Rule Amplifies: 145.28, 145.29, 145.81, 145.82
Prior Effective Dates: 1/1/03, 1/7/13 (Emer.), 3/24/13, 7/7/13 (Emer.), 9/16/13

145-3-35 Police and fire or highway patrol service.

(A) This rule amplifies sections 145.295 and 145.2913 of the Revised Code as applicable to members participating in the combined plan.

(B) Any payments made by a member to purchase credit pursuant to section 145.295 or 145.2913 of the Revised Code shall not be refunded to a member except as authorized or required under those sections, article VIII of the combined plan document, as amended on January 7, 2013, or rule 145-2-11 of the Administrative Code.

(C) This paragraph applies to purchases and transfers initiated after January 7, 2013. The member's effective date of retirement or disability benefit shall be no earlier than the first day of the month following receipt by the retirement system of the first partial payment or total payment, if paid in full by one payment. The member's effective date of retirement or disability benefit shall be no later than the first day of the month following the ninetieth day after receipt by the retirement system of the first partial payment or total payment, if paid in full by one payment. If the member fails to retire, or terminate employment for purposes of a disability benefit, before the ninetieth day after the first partial payment or total payment is received, the retirement system shall return the amount paid by the member to the member. If the payment was transmitted to the retirement system by a financial institution, the amount received by the retirement system shall be returned to the financial institution.

Effective: 01/01/2015
Five Year Review (FYR) Dates: 08/20/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.295, 145.2913, 145.81, 145.82
Prior Effective Dates: 1/1/03, 12/24/04, 1/7/13 (Emer.), 3/24/13

145-3-36 Purchase of optional service.

(A) This rule amplifies section 145.292 of the Revised Code as applicable to members participating in the combined plan.

(B) A member participating in the combined plan may purchase service credit under section 145.292 of the Revised Code in accordance with rule 145-2-12 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.292
Prior Effective Dates: 1/7/13 (Emer.), 3/24/13

145-3-37 Purchase of leave of absence.

(A) This rule amplifies section 145.291 of the Revised Code as applicable to members participating in the combined plan.

(B) A member participating in the combined plan may purchase service credit under section 145.291 of the Revised Code in accordance with rule 145-2-13 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.291, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-38 Cincinnati retirement system.

(A) This rule amplifies sections 145.2910 and 145.2911 of the Revised Code as applicable to members participating in the combined plan.

(B) Except as provided in paragraph (C) of this rule, a member participating in the combined plan may purchase service credit under sections 145.2910 and 145.2911 of the Revised Code in accordance with rule 145-2-15 of the Administrative Code.

(C) Any payments made by a member to purchase credit pursuant to section 145.2910 or 145.2911 of the Revised Code shall not be refunded to a member except as authorized or required under those sections, article VIII of the combined plan document, as amended on January 7, 2013, or rule 145-2-15 of the Administrative Code.

(D) For purchases and transfers described in paragraph (F) of rule 145-2-15 of the Administrative Code, if the payment was transmitted to the retirement system by a financial institution, the amount received by the retirement system shall be returned to the financial institution.

Effective: 01/01/2015
Five Year Review (FYR) Dates: 08/20/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.2910, 145.2911, 145.81, 145.82
Prior Effective Dates: 1/1/03, 12/24/04, 1/1/09, 1/1/10, 1/7/13 (Emer.), 3/24/13

145-3-39 Purchase of firefighter service.

(A) As used in this rule, "firefighter" has the same meaning as in rule 145-1-50 of the Administrative Code.

(B) 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 Revised Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-40 Service credit for participation in member-directed plan.

(A) This rule amplifies section 145.814 of the Revised Code and section 6.02 of the member-directed plan document.

(B) For each member who elects to transfer funds from the member-directed plan to purchase service in the combined plan under division (D) of section 145.814 of the Revised Code and section 2.03 of the member-directed plan document, the public employees retirement system shall prepare a statement of cost for service credit to be purchased in the combined plan based on participation in the member-directed plan, at the request of an eligible member. An actuary employed by the public employees retirement board shall determine the additional liability, as defined in section 145.814 of the Revised Code, as described in rule 145-3-23 of the Adminstrative Code.

(C) An eligible member shall purchase the service credit only by a lump-sum payment of the amount on deposit, as defined in rule 145-1-35 of the Administrative Code, except that a member described in division (D)(1) of section 145.814 of the Revised Code may, pay any additional liability that exceeds the amount on deposit by initiating payroll deduction under rule 145-1-38 of the Administrative Code or by direct partial payment. For plan elections effective on or before July 1, 2015, the payroll deduction shall be initiated or direct partial payment shall be made not later than one hundred eighty days after the effective date of an election to participate in the combined plan under section 2.03 of the member-directed plan document. Service credit purchased under this rule shall be included in the member's total service credit in the combined plan. If the member elects to receive pro-rated service credit, for purposes of section 1.41 of the combined plan document, the period of service upon which contributing service is based shall be the member's earliest service credit available to purchase under this rule.

(D) Any funds remaining in an eligible member's accounts, as defined in section 1.01 of the member-directed plan document, after the purchase of service credit under this rule shall be credited to the member's rollover account in the combined plan and treated as a rollover, except that amounts transferred to the member-directed plan under section 2.02 of the member-directed plan document shall be credited to the participant contribution account in the combined plan, as if the contributions had been originally transferred under section 2.02 of the combined plan document. A member may also elect, at the time of service purchase, to leave any remaining funds on deposit in the member-directed plan; any funds remaining shall be credited to the member's rollover account, as defined in section 1.31 of the member-directed plan document, and treated as a rollover.

(E)

(1) Service credit purchased under this rule cancels the corresponding years of participation in the member-directed plan.

(2) For plan elections effective on or before July 1, 2015, years of participation in the member-directed plan that are not purchased under this rule shall be cancelled immediately upon the expiration of the one hundred eighty day period following the effective date of an election to participate in the combined plan under section 2.03 of the member-directed plan document.

Effective: 6/6/2015
Five Year Review (FYR) Dates: 03/18/2015 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.814
Prior Effective Dates: 1/1/03, 11/15/03, 12/24/04, 1/1/09, 7/11/09, 1/1/10, 1/1/11, 1/7/13 (Emer.), 3/24/13

145-3-41 Application for a disability benefit.

(A) This rule amplifies division (C) of section 145.82 of the Revised Code and sections 10.02 and 10.03 of the combined plan document.

(B) Subject to paragraph (C) of this rule, a member participating in the combined plan who has disability coverage under section 10.01 of the combined plan document may apply for disability benefits in accordance with rule 145-2-21 of the Administrative Code.

(C) In addition to the agreement required under paragraph (C)(1)(d) of that rule, a member participating in the combined plan shall, prior to the public employees retirement board's approval of the member's application, elect one of the options listed in section 10.03 of the combined plan document.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-43 Disability appeals.

(A) This rule applies when the public employees retirement board denies an application for a disability benefit filed under rule 145-3-41 of the Administrative Code.

(B) After the board has denied an application under rule 145-3-41 of the Administrative Code, the board shall comply with rule 145-2-23 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-50 Designation of beneficiary prior to retirement.

(A) This rule amplifies section 13.02 of the combined plan document and section 11.02 of the member-directed plan document.

(B) The member participating in the combined or member-directed plan may designate a beneficiary in accordance with section 145.431 of the Revised Code and rule 145-2-30 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.431
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13

145-3-51 Survivor benefits.

(A) This rule amplifies division (C) of section 145.82 of the Revised Code and section 11.02 of the combined plan document.

(B) Subject to division (C)(1) of section 145.45 of the Revised Code, the beneficiary or beneficiaries of a deceased member participating in the combined plan may elect to forfeit the sums payable under article VIII of the combined plan document and to substitute survivor benefits if the beneficiary or beneficiaries:

(1) Meet the requirements of section 145.45 of the Revised Code;

(2) Elect to transfer to the traditional pension plan under section 11.02 of the combined plan document.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.45, 145.81, 145.82
Prior Effective Dates: 1/1/03, 12/24/04

145-3-52 Proof of dependency.

Where dependency is required for eligibility for benefits under rule 145-3-51 of the Administrative Code, proof of dependency shall be made in accordance with rule 145-2-31 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.45, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-53 Validity of marriage.

In the absence of a valid marriage certificate, validity of marriage shall be established in accordance with rule 145-2-35 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.43, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-61 Beneficiary and payment plan changes after retirement. [Rescinded].

Rescinded eff 10-27-06

145-3-62 Effective date of retirement under combined plan. [Rescinded].

Rescinded eff 12-24-04

145-3-71 Actuarial reduction factors.

The public employees retirement board shall, based on the recommendation of the board's actuary, establish the percentage rate for the reductions described in section 9.03(a) of the combined plan document, as amended on January 7, 2013.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.09
Rule Amplifies: 145.33
Prior Effective Dates: 1/7/13 (Emer.), 3/24/13

145-3-73 Cost of living adjustment.

(A) As used in this rule, "alternate payee" has the same meaning as in section 3105.80 of the Revised Code

(B) A benefit recipient who has received an allowance under section 9.03 of the combined plan document for at least twelve months shall have such allowance increased pursuant to section 145.323 of the Revised Code and as provided in this rule on the annual anniversary of the recipient's effective benefit date.

(C) A new benefit base upon which a cost of living adjustment shall be calculated shall be established when:

(1) A post retirement increase is granted, other than a cost of living adjustment or a payment representing reimbursement of premium for medicare part "B".

(2) A retirant receiving under the joint-life plan dies and the surviving beneficiary begins receiving a portion of the amount previously paid to the retirant.

(3) A retirant receiving under the joint-life plan reverts to the single-life plan as a result of the death of the beneficiary spouse, or divorce or dissolution of marriage as authorized in section 9.03 of the combined plan document and rule 145-3-13 of the Administrative Code.

(4) A retirant receiving under the multiple-life plan reverts to the single-life plan as a result of the removal of all beneficiaries as authorized in section 9.03 of the combined plan document and rule 145-3-13 of the Administrative Code.

(5) The benefit established at retirement is recalculated for any reason except for a cost of living adjustment or reimbursement of premium for medicare part "B."

(6) A part of a benefit is waived then the base shall be the portion being paid. If a waiver is withdrawn, the full base shall be re-established.

(D) For allowances that became payable before October 27, 2006, the apportionment of a cost of living adjustment between a benefit recipient and an alternate payee pursuant to section 9.03(d) of the combined plan document shall begin with the next cost of living adjustment granted on or after October 27, 2006, and shall continue while the order is in effect.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.323, 145.81, 145.82
Prior Effective Dates: 1/1/03, 10/27/06, 9/1/13 (Emer.), 9/16/13

145-3-75 Death benefit payment.

(A) This rule shall apply only to the death benefit payable pursuant to section 145.451 of the Revised Code.

(B) A retirant may designate a beneficiary or beneficiaries to receive only the death benefit payment.

(1) Such designation may be changed on a form provided by the public employees retirement system.

(2) Unless a different distribution is specified, the death benefit payment shall be divided equally among the surviving beneficiaries if the retirant designated multiple beneficiaries.

(C) If the death benefit is payable to the person responsible for the retirant's burial expenses, such person shall submit proof of financial liability for these expenses by paid bills or cancelled checks.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.451, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-77 Annual interest credited to contributor accounts in the employee savings fund.

The public employees retirement board shall set pursuant to division (A) of section 145.473 of the Revised Code the annual interest rate to be credited to the accounts in the employees' savings fund of members who are participating in the combined plan.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.473, 145.81, 145.82
Prior Effective Dates: 1/1/03

145-3-81 Military service.

(A) This rule amplifies section 21.02 of the member-directed plan document.

(B) A member participating in the member-directed plan may make contributions under section 145.302 of the Revised Code in accordance with rule 145-2-06 of the Administrative Code. Notwithstanding section 145.302 of the Revised Code, a member who makes contributions in accordance with that section shall receive a year or portion of a year of participation, as defined in section 1.38 of the member-directed plan document, rather than service credit.

(C) Contributions received from a member described in paragraph (B) of this rule shall be deposited and credited in accordance with section 3.03 of the member-directed plan document. Contributions received from the member's employer shall be deposited and credited in accordance with section 3.02 of the member-directed plan document.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.302, 145.81
Prior Effective Dates: 1/1/03

145-3-82 Purchase of service credit by member-directed plan members.

(A) This rule amplifies section 145.47 of the Revised Code as applicable to members participating in the member-directed plan.

(B) A member participating in the member-directed plan may purchase service credit under section 145.47 of the Revised Code in accordance with rule 145-3-23 of the Administrative Code.

Five Year Review (FYR) Dates: 09/24/2014 and 09/24/2019
Promulgated Under: 111.15
Statutory Authority: 145.80
Rule Amplifies: 145.47
Prior Effective Dates: 7/7/13 (Emer.), 9/16/13

145-3-83 Effective date of retirement under member-directed plan. [Rescinded].

Rescinded eff 12-24-04

145-3-84 Effective date of benefits. [Rescinded].

Rescinded eff 12-24-04