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 (C)(2) 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, if any.

(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 (C)(3)(a) of section 145.814 of the Revised Code may, by payroll deduction under rule 145-1-38 of the Administrative Code, pay any additional liability that exceeds the amount on deposit. Service credit purchased under this rule shall be included in the member’s total service credit in the combined plan.

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

HISTORY: Eff 11-15-03; 1-1-03; 12-24-04

Rule promulgated under: RC 111.15

Rule authorized by: RC 145.80

Rule amplifies: RC 145.81, 145.8214R.C. 119.032 review dates: 09/29/2004 and 09/29/2009