742-5-09 Lay off credit.

(A) For purposes of division (B)(1) of section 742.27 of the Revised Code, Ohio police and fire pension fund (“OP&F”) shall consider a member to be “entitled to receive disability benefits” if that member is receiving a disability benefit from OP&F and that member has not timely withdrawn his/her disability application in accordance with the provisions of rule 742-3-17 of the Administrative Code, but in no event shall a member be entitled to purchase lay-off credit for any period that overlaps the receipt of that person’s disability benefits.

(B) As part of the purchase of such credit, the member must provide the following to OP&F:

(1) Written certification from the employer that the member was removed from active service as a result of a lay off that was involuntary;

(2) Written certification of the date on which the member returned to full-time duty as a member of the police or fire department (as such terms are defined in sections 742.01(A) and (B) of the Revised Code, respectively), which is certified by either the employer with whom the lay-off occurred or the new OP&F-covered employer in the event the member does not return to the prior employer;

(3) Written certification from the member that during the time the member was laid off, the member did not render any service that is not permitted according to division (B)(2) of section 742.27 of the Revised Code.

(C) As determined by OP&F’s board of trustees, after consultation with OP&F’s actuary, the “additional liability” to OP&F resulting from the purchase of lay-off credit is the amount the member and his/her employer would have contributed during the lay off period, including interest. Interest shall be calculated at OP&F’s actuarially assumed interest rate compounded annually based on the effective method of calculating interest from the date the member returned to duty as a full-time member of a police or fire department through the date OP&F receives the payment for such credit and the statutory contributions shall be, based on the member’s “salary” (as such term is defined in division (L) of section 742.01 of the Revised Code and section 742-3-02 of the Administrative Code) reported to OP&F subject to contribution for the last full month of his/her full-time employment prior to being laid off.

(D) A member may choose to purchase only part of such credit in any one payment, provided that any reduced credit is purchased in increments of one-year periods and if the amount of the lay-off credit is less than one year, then the purchase is for the full amount of the lay-off credit. If OP&F receives less than the full amount referenced in division (C) of section 742.27 of the Revised Code, as more fully described in paragraph (C) of this rule, this shall constitute the member authorization to OP&F to grant a proportionate amount of lay-off credit, which is calculated by taking the lay-off credit the member is eligible to receive multiplied by the ratio of the amount actually received by OP&F divided by the total amount due OP&F pursuant to division (C) of section 742.27 of the Revised Code, as more fully described in paragraph (C) of this rule.

HISTORY: Eff 7-17-93; 3-9-01 (Emer.); 5-24-01; 5-24-04

Rule promulgated under: RC 111.15

Rule authorized by: RC 742.10

Rule amplifies: RC 742.27

Replaces: Prior version of 742-5-09

RC 119.032 Review Date: 03/09/2004 and 05/14/2009