Chapter 5505-5 Service Credit

5505-5-01 Credit for service in any calendar year.

(A) A member shall be credited with one year's retirement credit for each three hundred sixty-five days as an employee of the state highway patrol as defined in division (A) of section 5505.01 of the Revised Code except as provided in section 5505.16 and division (C) of section 5505.17 of the Revised Code.

(B) Days during which no contributions were withheld by the employer shall not be included in determining retirement credit under paragraph (A) of this rule, except as provided in sections 5505.01(C)(6) and 5505.18(C) of the Revised Code.

R.C. 119.032 review dates: 11/16/2012 and 11/16/2017
Promulgated Under: 111.15
Statutory Authority: 5505.07
Rule Amplifies: 5505.07, 5505.16, 5505.17(C)
Prior Effective Dates: 10/21/2005, 11/2/1989, 1/1/1986, 2/15/1981

5505-5-02 Prior service credit.

(A) A member of the highway patrol retirement system may purchase retirement credit for prior full-time service as a member of a state or municipal retirement system as defined in sections 5505.20, 5505.201, and 5505.40 of the Revised Code.

(B) "Full-time service" is defined as a period of employment during which the employee regularly worked substantially the same number of hours as would a member of the highway patrol retirement system.

(C) Credit may not be purchased for periods of employment during which the employee was not considered to be full-time, nor can these periods be combined for full-time credit.

(D) Credit may not be purchased for periods of employment during which credit was purchased from any other state or municipal retirement system.

(E) Upon application to purchase prior service credit, the appropriate retirement system shall certify the service dates and refunded contributions of the member on the application.

(F) The member shall provide documented proof of full-time employment as may be necessary.

(G) In the absence of clear documentation to the contrary, if the record of contributions indicates that the member was not receiving pay equivalent to or greater than the minimum wage in effect at the time on a forty-hour per week basis, it shall be presumed that the employment was not full-time.

(H) When prior service credit purchased under sections 5505.20, 5505.201, 5505.40, and division (C) of section 5505.17 of the Revised Code is purchased in increments, the cost for purchasing a portion of this service credit shall be calculated as a proportionate part of the total cost.

(I) Pursuant to section 5505.29 of the Revised Code, service credit shall be refunded to the member upon retirement, the member's surviving spouse, or to the member's estate upon death, if the credit purchased pursuant to this rule will not increase the benefit payable to the member or surviving spouse under section 5505.16, 5505.162, 5505.17, or 5505.18 of the Revised Code.

(J) Service credit purchased under section 5505.40 of the Revised Code shall be immediately transferred to the public employees' retirement system, school employees' retirement system, or state teachers' retirement system in the manner and form prescribed.

(K) Nothing in this rule shall be construed to permit a member's purchase of credit for purposes of meeting the minimum number of years of service necessary to receive a pension.

Effective: 02/01/2013
R.C. 119.032 review dates: 11/16/2012 and 02/01/2018
Promulgated Under: 111.15
Statutory Authority: 5505.07, 5505.40
Rule Amplifies: 5505.17(C), 5505.16, 5505.20, 5505.201, 5505.202, 5505.25
Prior Effective Dates: 10/21/2005, 12/1/1995, 1/1/1995, 11/1/1993, 11/1/1990, 12/1/1987, 1/1/1986, 2/15/1981

5505-5-03 Purchase of military service credit.

(A) If a member elects not to purchase interrupted military service in accordance with division ( D) of section 5505.16 of the Revised Code, the member may purchase military service credit in accordance with section 5505.25 of the Revised Code.

(B) The cost to purchase military service credit shall be calculated pursuant to division (D) of section 5505.25 of the Revised Code.

(C) Military service credit purchased in accordance with division (D) of section 5505.16 of the Revised Code shall be used to determine the member's eligibility for retirementunder sections5505.16and 5505.17 of the Revised Code.

(D) The member may only purchase up to the period of time from the entry date to the date of discharge as designated by the member's DD-214, or the period beginning with the date the member 's leave of absence began and ending with the date the member returned to active service with the state highway patrol, whichever is less.

(E) A member may purchase military service credit under section 5505.25 and division ( D) of section 5505.16 of the Revised Code in increments. The cost for purchasing a portion of military service credit shall be calculated as a proportionate part of the total cost.

(F) In no case shall a member receive more than three hundred sixty-five days of service credit for any one year.

(G) Pursuant to section 5505.29 of the Revised Code, service credit shall be refunded to the member upon retirement, the member's surviving spouse, or to the member's estate upon death, if the credit purchased pursuant to this rule will not increase the benefit payable to the member or surviving spouse under sections 5505.16, 5505.162, 5505.17, and 5505.18 of the Revised Code.

(H) A member shall acknowledge by signing a form prepared by the system of ineligibility to purchase military service credit under section 5505.25 and division ( D) of section 5505.16 of the Revised Code for any year of military service used in the calculation of any retirement benefit currently being paid to the member or payable in the future under any other retirement program, except for social security or retired pay for nonregular service under Chapter 67 of Title 10 of the United States Code.

Effective: 02/01/2013
R.C. 119.032 review dates: 11/16/2012 and 02/01/2018
Promulgated Under: 111.15
Statutory Authority: 5505.07
Rule Amplifies: 5505.16, 5505.25
Prior Effective Dates: 10/21/2005, 11/1/1990, 1/1/1986, 2/15/1981

5505-5-04 Interest rate.

The annual compound interest rate to be used in computing service credit as defined in sections 5505.16, 5505.20, 5505.201, 5505.40, and 5505.25 of the Revised Code shall be the actuarial interest assumption rate adopted by the board.

Effective: 02/01/2013
R.C. 119.032 review dates: 11/16/2012 and 02/01/2018
Promulgated Under: 111.15
Statutory Authority: 5505.07
Rule Amplifies: 5505.16, 5505.20, 5505.201, 5505.40, 5505.25
Prior Effective Dates: 10/21/2005, 12/1/1987

5505-5-05 Bureau of worker's compensation retirement credit.

(A) Members are eligible for additional retirement credit pursuant to section 5505.01(C)(6) of the Revised Code upon submission of a completed and certified application as prescribed by the board.

(1) The application shall be certified by an authorized employee of the state highway patrol.

(2) The application shall be submitted within one year after returning to contributing service, or upon retirement, whichever occurs first.

(B) The board will reconcile the time to be credited to a member's retirement account, and send notice to the member. Reconciliation by the board shall be final.

(C) Total credit allowable for any single claim for on-duty related injury or illness shall not exceed three years.

(D) No retirement credit shall be granted for periods that were used in the calculation of benefits under any other state retirement plan.

(E) In no event shall a member receive more than three hundred sixty-five days of service credit for any one calendar year.

R.C. 119.032 review dates: 11/16/2012 and 11/16/2017
Promulgated Under: 111.15
Statutory Authority: 5505.07
Rule Amplifies: 5505.01
Prior Effective Dates: 10/21/2005, 11/2/1989

5505-5-06 Service credit purchases by payroll deduction.

(A) A member of the state highway patrol retirement system (HPRS) may purchase service credit pursuant to this rule, rule 5505-5-02 of the Administrative Code, rule 5505-5-03 of the Administrative Code, and sections 5505.16, 5505.17, 5505.20, 5505.201, 5505.25, and 5505.40 of the Revised Code through:

(1) Post-tax payroll deduction, lump sum payment, partial payment, or any combination thereof.

(2) Pre-tax payroll deductions designated by the state highway patrol as picked-up contributions in compliance with Internal Revenue Code section 414(h)(2). HPRS will accept new elections to purchase service credit through pre-tax payroll deduction only if the election is received by December 31, 2014.

(B) Upon a member's request to HPRS to purchase service credit by payroll deduction for service credit, HPRS will prepare an application form which states the following:

(1) The service to be purchased, including the total years of service and the type of service;

(2) The total cost of the service credit to be purchased through payroll deduction;

(3) The total number of payroll deductions in the stated amount, starting with the proposed start date and ending on the proposed completion date; provided, however, that the payroll deduction cannot exceed the member's net compensation after all deductions and withholdings required by law.

(C) The payroll deduction plan shall not be effective until it is signed by the member and filed with HPRS.

(D) Upon receipt of a signed payroll deduction application, HPRS shall report to the state highway patrol the amount of the payroll deduction and when the deductions shall begin.

(E) HPRS will grant the service credit to the member only upon receipt of the applicable payroll deduction or lump sum payment.

(F) All payroll deduction plans may last no longer than five years for each year of service that is to be purchased.

(G) No member may participate in more than one payroll deduction plan to purchase service credit provided for in section 5505.203 of the Revised Code and this rule.

(H) Pre-tax payroll deduction plans (i.e. pick-up plans) shall be irrevocable and may only be terminated upon the member's termination of employment with the employer who is implementing the member's payroll deduction plan.

(I) Except for pre-tax payroll deduction plans (i.e. pick-up plans), a member can increase or decrease the member's payroll deduction by written notice to the state highway patrol and HPRS, except that in no event shall a deduction be decreased to less than fifty dollars per pay period.

(J) Except for pre-tax payroll deduction plans (i.e. a pick-up plan), a payroll deduction plan may be terminated or suspended upon any of the following events:

(1) The failure of the state highway patrol to forward to HPRS the payroll deduction for four consecutive pay periods;

(2) Upon the member's termination of employment with the state highway patrol;

(3) In cases where a payroll deduction exceed the member's net pay after all deductions and withholdings required by law; or

(4) When the payroll deductions received by HPRS equal the total cost of the eligible service credit, as originally outlined in HPRS' application form duly signed by the member.

Effective: 3/23/2015
Five Year Review (FYR) Dates: 03/23/2020
Promulgated Under: 111.15
Statutory Authority: 5505.07, 5505.203, 5505.40
Rule Amplifies: 5505.16, 5505.17, 5505.20 , 5505.201, 5505.203, 5505.25, 5505.40