3309-1-54 Purchase of service credit with amounts designated as picked-up contributions.

(A) A member of the school employees retirement system may purchase service credit by payroll deduction with amounts designated by the member's employer as picked-up contributions under a plan which is in compliance with section 414(h)(2) of the Internal Revenue Code pursuant to agency-level 3309 of the Administrative Code and section 3309.021 , 3309.022 , 3309.26 , 3309.261 , 3309.301 , 3309.31 , 3309.41 , 3309.473 , 3309.474 , 3309.73 , 3309.731 , or 3309.75 of the Revised Code.

(1) Prior to the purchase of service credit with amounts designated as picked-up contributions, the member's employer shall have adopted and filed with the retirement system a resolution authorizing the purchase of service credit for its employees by payroll deduction with amounts designated as picked-up and paid to the retirement system by the employer.

(B)

(1) Upon a member's request to purchase service credit with amounts designated as picked-up contributions, the retirement system shall prepare and forward to the member a payroll deduction authorization form which sets forth:

(a) The type and amount of service to be purchased;

(b) The number of months over which the service is to be purchased including the month of commencement and termination; and

(c) The amount of each monthly payment.

(2) The member shall complete and sign the employee portion of the payroll deduction authorization form and forward it to the member's employer.

(3) The member's employer shall complete the employer's portion of the payroll deduction authorization form and return the form to the retirement system.

(4) A separate payroll deduction authorization form shall be completed for each separate type of service credit to be purchased.

(C)

(1) The employer shall begin payroll deduction in the month set forth on the payroll deduction authorization form.

(2) The employer shall remit the amounts withheld and designated as picked up contributions directly to the retirement system on a monthly basis, accompanied by a report that identifies the members for which amounts are being remitted by name and social security number.

(D)

(1) The school employees retirement system shall annually notify the appropriate former retirement system of payments made to restore service credit under section 145.31 or 3307.71 of the Revised Code.

(2) The school employees retirement system shall transfer to the appropriate former retirement system, payments made under section 3309.261 of the Revised Code upon the member's application for service retirement, disability, survivor benefit, or refund under Chapter 145., 3307., or 3309. of the Revised Code.

(E)

(1) Upon request from the public employees retirement system or the state teachers retirement system, the school employees retirement system shall calculate and certify to the requesting system the cost to a former member to restore service credit under section 3309.26 of the Revised Code, plus interest, for each year or portion of a year for which the member seeks to purchase service credit.

(2) Upon receipt of payments transferred pursuant to section 145.311 or 3307.711 of the Revised Code, the school employees retirement system shall restore the former member's service credit for which payment is transferred.

(F)

(1) A member who is purchasing service credit pursuant to this rule cannot:

(a) Decrease or increase the amount of the payroll deduction;

(b) Terminate the payroll deduction unless the member has terminated employment or purchased all of the service credit set forth on the payroll deduction authorization form; or

(c) Make a direct payment to the retirement system to purchase the service credit.

(2) The member's employer shall not decrease, increase, or terminate the payroll deduction unless the member has terminated employment or purchased all of the service credit set forth on the payroll deduction authorization form.

Effective: 03/08/2013
R.C. 119.032 review dates: 02/01/2017
Promulgated Under: 111.15
Statutory Authority: 3309.04
Rule Amplifies: 3309.021 , 3309.022 , 3309.26 , 3309.261 , 3309.262 , 3309.27 , 3309.301 , 3309.31 , 3309.35 , 3309.41 , 3309.473 , 3309.474 , 3309.73 , 3309.731 , 3309.75
Prior Effective Dates: 11/1/97, 2/11/00, 5/2/01, 11/19/01 (emer), 2/11/02, 5/3/02