(A) A member may make application for the purchase of credit under section 3307.73 of the Revised Code if a total of at least one and one-half years of contributing service under this system or eighteen months of contributing service credit under the public employees retirement system or the school employees retirement system has been established. A member who is also a member of the public employees retirement system or the school employees retirement system is ineligible to purchase credit under this system if the unadjusted service credit established under either one of those systems exceeds the service credit established under this system.
(B) A member may purchase all or part of the service credit qualifying for purchase under sections 3307.70 and 3307.73 of the Revised Code. Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the cost to purchase service credit shall be based on section 3307.73 of the Revised Code as the section existed immediately before January 7, 2013 and if a member chooses to make more than one payment for any purchase, the balance remaining as used in division (C) of section 3307.73 of the Revised Code shall mean the cost for the remaining service credit to be purchased. The cost for the remaining service credit to be purchased shall be based on the cost per year, of the original cost established at the time of the first payment, plus compound interest at the rate established by rule 3307:1-3-01 of the Administrative Code.
(C) The member shall request that the employer for whom the service was performed certify such service to this system. Once certification is received from the employer, the amount of credit otherwise qualifying for purchase shall be determined as follows:
(1) If the credit to be purchased is for service waived or exempted under Chapter 3307. of the Revised Code or denied pursuant to rule 3307-4-01 of the Administrative Code, upon receipt of the certification of the employer, the system shall determine the amount of service credit that would have been earned had the service not been waived, exempted or denied.
(2) If the credit to be purchased is for service that would have been covered under Chapter 145. or Chapter 3309. of the Revised Code, the system shall transmit the employer's certification to the applicable retirement system and shall request certification from that retirement system that the service was exempt and the amount of credit that would have been earned had the service not been exempt.
(3) Credit may not be purchased for any service:
(a) Which is concurrent with any other credit that will be used in calculating a benefit under Chapter 145., Chapter 3307., or Chapter 3309. of the Revised Code; or
(b) If the purchase would result in the establishment of total service credit under Chapter 145., Chapter 3307., and Chapter 3309. of the Revised Code which exceeds a year of service credit in any year.
(D) Once service qualifying for purchase has been certified and determined pursuant to paragraph (C) of this rule, the cost of purchase shall be calculated, subject to the following:
(1) Through December 31, 2013 and extending through June 30, 2014 only if the member's application to purchase service is received by the retirement system as completed not later than December 31, 2013, the cost to purchase service shall be based on section 3307.73 of the Revised Code as the section existed immediately before January 7, 2013. The cost of any purchase shall be calculated as of the date of a cost statement generated by the system and shall be based upon the twelve most recent months of earnings certified by the member's current or most recent employers under Chapter 145., Chapter 3307. or Chapter 3309. of the Revised Code. Where a full year of service credit has been earned in such year, total compensation shall be used in the calculation. If less than a full year of service credit was earned in such year, then compensation on a full-time equivalent basis shall be used in the calculation.
(2) Effective January 1, 2014, except as provided in paragraph (D)(1) of this rule, the cost pursuant to section 3307.70 of the Revised Code for the purchase of a year or partial year of service credit under section 3307.73 of the Revised Code shall be an amount equal to one hundred per cent of the liability resulting from the purchase.
(3) The cost factors applied to the calculation are hereby established by the state teachers retirement board as those determined by the actuary as equal to the additional liability resulting from the purchase of credit. The actuary shall review purchases and liability upon request of the executive director.
(4) The cost for purchases of credit in portions of less than a full year shall be prorated on the basis of the cost for a full year.
R.C. 119.032 review dates: 06/11/2015
Promulgated Under: 111.15
Statutory Authority: 3307.04
Rule Amplifies: 3307.70, 3307.73
Prior Effective Dates: 6/22/92 (Emer.), 9/10/92, 7/1/01 (Emer.), 9/17/01, 08/01/05, 6/11/10, 1/7/13 (Emer)