SENATORS Mumper, Robert Gardner, Randy Gardner, Harris

To amend sections 145.01, 742.01, 3307.01, 3309.01,

1

5505.01, and 5923.05 and to enact section 5923.051

2

of the Revised Code to provide for the payment of

3

specified compensation to certain public employees

4

called to active duty for more than 31 days; to

5

require public employers, under group policies,

6

contracts, and plans, to continue the health

7

benefit coverage of employees called to active

8

duty; and to declare an emergency.

9

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 145.01, 742.01, 3307.01, 3309.01,	10
5505.01, and 5923.05 be amended and section 5923.051 of the	11
Revised Code be enacted to read as follows:	12

Sec. 145.01.  As used in this chapter:

13

(A) "Public employee" means:

14

(1) Any person holding an office, not elective, under the	15
state or any county, township, municipal corporation, park	16
district, conservancy district, sanitary district, health	17
district, metropolitan housing authority, state retirement board,	18
Ohio historical society, public library, county law library, union	19
cemetery, joint hospital, institutional commissary, state	20
university, or board, bureau, commission, council, committee,	21
authority, or administrative body as the same are, or have been,	22
created by action of the general assembly or by the legislative	23
authority of any of the units of local government named in	24
division (A)(1) of this section, or employed and paid in whole or	25
in part by the state or any of the authorities named in division	26
(A)(1) of this section in any capacity not covered by section	27
742.01, 3307.01, 3309.01, or 5505.01 of the Revised Code.	28

(2) A person who is a member of the public employees	29
retirement system and who continues to perform the same or similar	30
duties under the direction of a contractor who has contracted to	31
take over what before the date of the contract was a publicly	32
operated function. The governmental unit with which the contract	33
has been made shall be deemed the employer for the purposes of	34
administering this chapter.	35

(3) Any person who is an employee of a public employer,	36
notwithstanding that the person's compensation for that employment	37
is derived from funds of a person or entity other than the	38
employer. Credit for such service shall be included as total	39
service credit, provided that the employee makes the payments	40
required by this chapter, and the employer makes the payments	41
required by sections 145.48 and 145.51 of the Revised Code.	42

(4) A person who elects in accordance with section 145.015	43
of the Revised Code to remain a contributing member of the public	44
employees retirement system.	45

In all cases of doubt, the public employees retirement board	46
shall determine whether any person is a public employee, and its	47
decision is final.	48

(B) "Member" means any public employee, other than a public	49
employee excluded or exempted from membership in the retirement	50
system by section 145.03, 145.031, 145.032, 145.033, 145.034,	51
145.035, or 145.38 of the Revised Code. "Member" includes a PERS	52
retirant who becomes a member under division (C) of section 145.38	53
of the Revised Code. "Member" also includes a disability benefit	54
recipient.	55

(C) "Head of the department" means the elective or	56
appointive head of the several executive, judicial, and	57
administrative departments, institutions, boards, and commissions	58
of the state and local government as the same are created and	59
defined by the laws of this state or, in case of a charter	60
government, by that charter.	61

(D) "Employer" or "public employer" means the state or any	62
county, township, municipal corporation, park district,	63
conservancy district, sanitary district, health district,	64
metropolitan housing authority, state retirement board, Ohio	65
historical society, public library, county law library, union	66
cemetery, joint hospital, institutional commissary, state medical	67
college, state university, or board, bureau, commission, council,	68
committee, authority, or administrative body as the same are, or	69
have been, created by action of the general assembly or by the	70
legislative authority of any of the units of local government	71
named in this division not covered by section 742.01, 3307.01,	72
3309.01, or 5505.01 of the Revised Code. In addition, "employer"	73
means the employer of any public employee.	74

(E) "Prior service" means all service as a public employee	75
rendered before January 1, 1935, and all service as an employee of	76
any employer who comes within the state teachers retirement system	77
or of the school employees retirement system or of any other	78
retirement system established under the laws of this state	79
rendered prior to January 1, 1935, provided that if the employee	80
claiming the service was employed in any capacity covered by that	81
other system after that other system was established, credit for	82
the service may be allowed by the public employees retirement	83
system only when the employee has made payment, to be computed on	84
the salary earned from the date of appointment to the date	85
membership was established in the public employees retirement	86
system, at the rate in effect at the time of payment, and the	87
employer has made payment of the corresponding full liability as	88
provided by section 145.44 of the Revised Code. "Prior service"	89
also means all service credited for active duty with the armed	90
forces of the United States as provided in section 145.30 of the	91
Revised Code.	92

If an employee who has been granted prior service credit by	93
the public employees retirement system for service rendered prior	94
to January 1, 1935, as an employee of a board of education	95
establishes, before retirement, one year or more of contributing	96
service in the state teachers retirement system or school	97
employees retirement system, then the prior service ceases to be	98
the liability of this system.	99

If the board determines that a position of any member in any	100
calendar year prior to January 1, 1935, was a part-time position,	101
the board shall determine what fractional part of a year's credit	102
shall be allowed by the following formula:	103

(1) When the member has been either elected or appointed to	104
an office the term of which was two or more years and for which an	105
annual salary is established, the fractional part of the year's	106
credit shall be computed as follows:	107

First, when the member's annual salary is one thousand	108
dollars or less, the service credit for each such calendar year	109
shall be forty per cent of a year.	110

Second, for each full one hundred dollars of annual salary	111
above one thousand dollars, the member's service credit for each	112
such calendar year shall be increased by two and one-half per	113
cent.	114

(2) When the member is paid on a per diem basis, the service	115
credit for any single year of the service shall be determined by	116
using the number of days of service for which the compensation was	117
received in any such year as a numerator and using two hundred	118
fifty days as a denominator.	119

(3) When the member is paid on an hourly basis, the service	120
credit for any single year of the service shall be determined by	121
using the number of hours of service for which the compensation	122
was received in any such year as a numerator and using two	123
thousand hours as a denominator.	124

(F) "Contributor" means any person who has an account in the	125
employees' savings fund created by section 145.23 of the Revised	126
Code. When used in the sections listed in division (B) of section	127
145.82 of the Revised Code, "contributor" includes any person	128
participating in a plan established under section 145.81 of the	129
Revised Code.	130

(G) "Beneficiary" or "beneficiaries" means the estate or a	131
person or persons who, as the result of the death of a member,	132
contributor, or retirant, qualify for or are receiving some right	133
or benefit under this chapter.	134

(H)(1) "Total service credit," except as provided in section	135
145.37 of the Revised Code, means all service credited to a member	136
of the retirement system since last becoming a member, including	137
restored service credit as provided by section 145.31 of the	138
Revised Code; credit purchased under sections 145.293 and 145.299	139
of the Revised Code; all the member's prior service credit; all	140
the member's military service credit computed as provided in this	141
chapter; all service credit established pursuant to section	142
145.297 of the Revised Code; and any other service credited under	143
this chapter. In addition, "total service credit" includes any	144
period, not in excess of three years, during which a member was	145
out of service and receiving benefits under Chapters 4121. and	146
4123. of the Revised Code. For the exclusive purpose of	147
satisfying the service credit requirement and of determining	148
eligibility for benefits under sections 145.32, 145.33, 145.331,	149
145.35, 145.36, and 145.361 of the Revised Code, "five or more	150
years of total service credit" means sixty or more calendar months	151
of contributing service in this system.	152

(2) "One and one-half years of contributing service credit,"	153
as used in division (B) of section 145.45 of the Revised Code,	154
also means eighteen or more calendar months of employment by a	155
municipal corporation that formerly operated its own retirement	156
plan for its employees or a part of its employees, provided that	157
all employees of that municipal retirement plan who have eighteen	158
or more months of such employment, upon establishing membership in	159
the public employees retirement system, shall make a payment of	160
the contributions they would have paid had they been members of	161
this system for the eighteen months of employment preceding the	162
date membership was established. When that payment has been made	163
by all such employee members, a corresponding payment shall be	164
paid into the employers' accumulation fund by that municipal	165
corporation as the employer of the employees.	166

(3) Where a member also is a member of the state teachers	167
retirement system or the school employees retirement system, or	168
both, except in cases of retirement on a combined basis pursuant	169
to section 145.37 of the Revised Code or as provided in section	170
145.383 of the Revised Code, service credit for any period shall	171
be credited on the basis of the ratio that contributions to the	172
public employees retirement system bear to total contributions in	173
all state retirement systems.	174

(4) Not more than one year of credit may be given for any	175
period of twelve months.	176

(5) "Ohio service credit" means credit for service that was	177
rendered to the state or any of its political subdivisions or any	178
employer.	179

(I) "Regular interest" means interest at any rates for the	180
respective funds and accounts as the public employees retirement	181
board may determine from time to time.	182

(J) "Accumulated contributions" means the sum of all amounts	183
credited to a contributor's individual account in the employees'	184
savings fund together with any interest credited to the	185
contributor's account under section 145.471 or 145.472 of the	186
Revised Code.	187

(K)(1) "Final average salary" means the quotient obtained by	188
dividing by three the sum of the three full calendar years of	189
contributing service in which the member's earnable salary was	190
highest, except that if the member has a partial year of	191
contributing service in the year the member's employment	192
terminates and the member's earnable salary for the partial year	193
is higher than for any comparable period in the three years, the	194
member's earnable salary for the partial year shall be substituted	195
for the member's earnable salary for the comparable period during	196
the three years in which the member's earnable salary was lowest.	197

(2) If a member has less than three years of contributing	198
service, the member's final average salary shall be the member's	199
total earnable salary divided by the total number of years,	200
including any fraction of a year, of the member's contributing	201
service.	202

(3) For the purpose of calculating benefits payable to a	203
member qualifying for service credit under division (Z) of this	204
section, "final average salary" means the total earnable salary on	205
which contributions were made divided by the total number of years	206
during which contributions were made, including any fraction of a	207
year. If contributions were made for less than twelve months,	208
"final average salary" means the member's total earnable salary.	209

(L) "Annuity" means payments for life derived from	210
contributions made by a contributor and paid from the annuity and	211
pension reserve fund as provided in this chapter. All annuities	212
shall be paid in twelve equal monthly installments.	213

(M) "Annuity reserve" means the present value, computed upon	214
the basis of the mortality and other tables adopted by the board,	215
of all payments to be made on account of any annuity, or benefit	216
in lieu of any annuity, granted to a retirant as provided in this	217
chapter.	218

(N)(1) "Disability retirement" means retirement as provided	219
in section 145.36 of the Revised Code.	220

(2) "Disability allowance" means an allowance paid on	221
account of disability under section 145.361 of the Revised Code.	222

(3) "Disability benefit" means a benefit paid as disability	223
retirement under section 145.36 of the Revised Code, as a	224
disability allowance under section 145.361 of the Revised Code, or	225
as a disability benefit under section 145.37 of the Revised Code.	226

(4) "Disability benefit recipient" means a member who is	227
receiving a disability benefit.	228

(O) "Age and service retirement" means retirement as	229
provided in sections 145.32, 145.33, 145.331, 145.34, 145.37, and	230
145.46 of the Revised Code.	231

(P) "Pensions" means annual payments for life derived from	232
contributions made by the employer that at the time of retirement	233
are credited into the annuity and pension reserve fund from the	234
employers' accumulation fund and paid from the annuity and pension	235
reserve fund as provided in this chapter. All pensions shall be	236
paid in twelve equal monthly installments.	237

(Q) "Retirement allowance" means the pension plus that	238
portion of the benefit derived from contributions made by the	239
member.	240

(R)(1) Except as otherwise provided in division (R) of this	241
section, "earnable salary" means all salary, wages, and other	242
earnings paid to a contributor by reason of employment in a	243
position covered by the retirement system. The salary, wages, and	244
other earnings shall be determined prior to determination of the	245
amount required to be contributed to the employees' savings fund	246
under section 145.47 of the Revised Code and without regard to	247
whether any of the salary, wages, or other earnings are treated as	248
deferred income for federal income tax purposes. "Earnable	249
salary" includes the following:	250

(a) Payments made by the employer in lieu of salary, wages,	251
or other earnings for sick leave, personal leave, or vacation used	252
by the contributor;	253

(b) Payments made by the employer for the conversion of sick	254
leave, personal leave, and vacation leave accrued, but not used if	255
the payment is made during the year in which the leave is accrued,	256
except that payments made pursuant to section 124.383 or 124.386	257
of the Revised Code are not earnable salary;	258

(c) Allowances paid by the employer for full maintenance,	259
consisting of housing, laundry, and meals, as certified to the	260
retirement board by the employer or the head of the department	261
that employs the contributor;	262

(d) Fees and commissions paid under section 507.09 of the	263
Revised Code;	264

(e) Payments that are made under a disability leave program	265
sponsored by the employer and for which the employer is required	266
by section 145.296 of the Revised Code to make periodic employer	267
and employee contributions;	268

(f) Amounts included pursuant to divisions (K)(3) and (Y) of	269
this section.	270

(2) "Earnable salary" does not include any of the following:

271

(a) Fees and commissions, other than those paid under	272
section 507.09 of the Revised Code, paid as sole compensation for	273
personal services and fees and commissions for special services	274
over and above services for which the contributor receives a	275
salary;	276

(b) Amounts paid by the employer to provide life insurance,	277
sickness, accident, endowment, health, medical, hospital, dental,	278
or surgical coverage, or other insurance for the contributor or	279
the contributor's family, or amounts paid by the employer to the	280
contributor in lieu of providing the insurance;	281

(c) Incidental benefits, including lodging, food, laundry,	282
parking, or services furnished by the employer, or use of the	283
employer's property or equipment, or amounts paid by the employer	284
to the contributor in lieu of providing the incidental benefits;	285

(d) Reimbursement for job-related expenses authorized by the	286
employer, including moving and travel expenses and expenses	287
related to professional development;	288

(e) Payments for accrued but unused sick leave, personal	289
leave, or vacation that are made at any time other than in the	290
year in which the sick leave, personal leave, or vacation was	291
accrued;	292

(f) Payments made to or on behalf of a contributor that are	293
in excess of the annual compensation that may be taken into	294
account by the retirement system under division (a)(17) of section	295
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	296
U.S.C.A. 401(a)(17), as amended;	297

(g) Payments made under division (B) or (D) of section	298
5923.05 of the Revised Code or, Section 4 of Substitute Senate	299
Bill No. 3 of the 119th general assembly, or Section 3 of .....	300
Bill No. ..... of the 124th general assembly;	301

(h) Anything of value received by the contributor that is	302
based on or attributable to retirement or an agreement to retire,	303
except that payments made on or before January 1, 1989, that are	304
based on or attributable to an agreement to retire shall be	305
included in earnable salary if both of the following apply:	306

(i) The payments are made in accordance with contract	307
provisions that were in effect prior to January 1, 1986;	308

(ii) The employer pays the retirement system an amount	309
specified by the retirement board equal to the additional	310
liability resulting from the payments.	311

(3) The retirement board shall determine by rule whether any	312
compensation not enumerated in division (R) of this section is	313
earnable salary, and its decision shall be final.	314

(S) "Pension reserve" means the present value, computed upon	315
the basis of the mortality and other tables adopted by the board,	316
of all payments to be made on account of any retirement allowance	317
or benefit in lieu of any retirement allowance, granted to a	318
member or beneficiary under this chapter.	319

(T)(1) "Contributing service" means all service credited to	320
a member of the system since January 1, 1935, for which	321
contributions are made as required by sections 145.47, 145.48, and	322
145.483 of the Revised Code. In any year subsequent to 1934,	323
credit for any service shall be allowed by the following formula:	324

(a) For each month for which the member's earnable salary is	325
two hundred fifty dollars or more, allow one month's credit.	326

(b) For each month for which the member's earnable salary is	327
less than two hundred fifty dollars, allow a fraction of a month's	328
credit. The numerator of this fraction shall be the earnable	329
salary during the month, and the denominator shall be two hundred	330
fifty dollars, except that if the member's annual earnable salary	331
is less than six hundred dollars, the member's credit shall not be	332
reduced below twenty per cent of a year for a calendar year of	333
employment during which the member worked each month. Division	334
(T)(1)(b) of this section shall not reduce any credit earned	335
before January 1, 1985.	336

(2) Notwithstanding division (T)(1) of this section, an	337
elected official who prior to January 1, 1980, was granted a full	338
year of credit for each year of service as an elected official	339
shall be considered to have earned a full year of credit for each	340
year of service regardless of whether the service was full-time or	341
part-time. The public employees retirement board has no authority	342
to reduce the credit.	343

(U) "State retirement board" means the public employees	344
retirement board, the school employees retirement board, or the	345
state teachers retirement board.	346

(V) "Retirant" means any former member who retires and is	347
receiving a monthly allowance as provided in sections 145.32,	348
145.33, 145.331, 145.34, and 145.46 of the Revised Code.	349

(W) "Employer contribution" means the amount paid by an	350
employer as determined under section 145.48 of the Revised Code.	351

(X) "Public service terminates" means the last day for which	352
a public employee is compensated for services performed for an	353
employer or the date of the employee's death, whichever occurs	354
first.	355

(Y) When a member has been elected or appointed to an	356
office, the term of which is two or more years, for which an	357
annual salary is established, and in the event that the salary of	358
the office is increased and the member is denied the additional	359
salary by reason of any constitutional provision prohibiting an	360
increase in salary during a term of office, the member may elect	361
to have the amount of the member's contributions calculated upon	362
the basis of the increased salary for the office. At the member's	363
request, the board shall compute the total additional amount the	364
member would have contributed, or the amount by which each of the	365
member's contributions would have increased, had the member	366
received the increased salary for the office the member holds. If	367
the member elects to have the amount by which the member's	368
contribution would have increased withheld from the member's	369
salary, the member shall notify the employer, and the employer	370
shall make the withholding and transmit it to the retirement	371
system. A member who has not elected to have that amount withheld	372
may elect at any time to make a payment to the retirement system	373
equal to the additional amount the member's contribution would	374
have increased, plus interest on that contribution, compounded	375
annually at a rate established by the board and computed from the	376
date on which the last contribution would have been withheld from	377
the member's salary to the date of payment. A member may make a	378
payment for part of the period for which the increased	379
contribution was not withheld, in which case the interest shall be	380
computed from the date the last contribution would have been	381
withheld for the period for which the payment is made. Upon the	382
payment of the increased contributions as provided in this	383
division, the increased annual salary as provided by law for the	384
office for the period for which the member paid increased	385
contributions thereon shall be used in determining the member's	386
earnable salary for the purpose of computing the member's final	387
average salary.	388

(Z) "Five years of service credit," for the exclusive	389
purpose of satisfying the service credit requirements and of	390
determining eligibility for benefits under section 145.33 of the	391
Revised Code, means employment covered under this chapter or under	392
a former retirement plan operated, recognized, or endorsed by the	393
employer prior to coverage under this chapter or under a	394
combination of the coverage.	395

(AA) "Deputy sheriff" means any person who is commissioned	396
and employed as a full-time peace officer by the sheriff of any	397
county, and has been so employed since on or before December 31,	398
1965, and whose primary duties are to preserve the peace, to	399
protect life and property, and to enforce the laws of this state;	400
any person who is or has been commissioned and employed as a peace	401
officer by the sheriff of any county since January 1, 1966, and	402
who has received a certificate attesting to the person's	403
satisfactory completion of the peace officer training school as	404
required by section 109.77 of the Revised Code and whose primary	405
duties are to preserve the peace, protect life and property, and	406
enforce the laws of this state; or any person deputized by the	407
sheriff of any county and employed pursuant to section 2301.12 of	408
the Revised Code as a criminal bailiff or court constable who has	409
received a certificate attesting to the person's satisfactory	410
completion of the peace officer training school as required by	411
section 109.77 of the Revised Code and whose primary duties are to	412
preserve the peace, protect life and property, and enforce the	413
laws of this state.	414

(BB) "Township constable or police officer in a township	415
police department or district" means any person who is	416
commissioned and employed as a full-time peace officer pursuant to	417
Chapter 505. or 509. of the Revised Code, who has received a	418
certificate attesting to the person's satisfactory completion of	419
the peace officer training school as required by section 109.77 of	420
the Revised Code, and whose primary duties are to preserve the	421
peace, protect life and property, and enforce the laws of this	422
state.	423

(CC) "Drug agent" means any person who is either of the	424
following:	425

(1) Employed full-time as a narcotics agent by a county	426
narcotics agency created pursuant to section 307.15 of the Revised	427
Code and has received a certificate attesting to the satisfactory	428
completion of the peace officer training school as required by	429
section 109.77 of the Revised Code;	430

(2) Employed full-time as an undercover drug agent as	431
defined in section 109.79 of the Revised Code and is in compliance	432
with section 109.77 of the Revised Code.	433

(DD) "Department of public safety enforcement agent" means a	434
full-time employee of the department of public safety who is	435
designated under section 5502.14 of the Revised Code as an	436
enforcement agent and who is in compliance with section 109.77 of	437
the Revised Code.	438

(EE) "Natural resources law enforcement staff officer" means	439
a full-time employee of the department of natural resources who is	440
designated a natural resources law enforcement staff officer under	441
section 1501.013 of the Revised Code and is in compliance with	442
section 109.77 of the Revised Code.	443

(FF) "Park officer" means a full-time employee of the	444
department of natural resources who is designated a park officer	445
under section 1541.10 of the Revised Code and is in compliance	446
with section 109.77 of the Revised Code.	447

(GG) "Forest officer" means a full-time employee of the	448
department of natural resources who is designated a forest officer	449
under section 1503.29 of the Revised Code and is in compliance	450
with section 109.77 of the Revised Code.	451

(HH) "Preserve officer" means a full-time employee of the	452
department of natural resources who is designated a preserve	453
officer under section 1517.10 of the Revised Code and is in	454
compliance with section 109.77 of the Revised Code.	455

(II) "Wildlife officer" means a full-time employee of the	456
department of natural resources who is designated a wildlife	457
officer under section 1531.13 of the Revised Code and is in	458
compliance with section 109.77 of the Revised Code.	459

(JJ) "State watercraft officer" means a full-time employee	460
of the department of natural resources who is designated a state	461
watercraft officer under section 1547.521 of the Revised Code and	462
is in compliance with section 109.77 of the Revised Code.	463

(KK) "Park district police officer" means a full-time	464
employee of a park district who is designated pursuant to section	465
511.232 or 1545.13 of the Revised Code and is in compliance with	466
section 109.77 of the Revised Code.	467

(LL) "Conservancy district officer" means a full-time	468
employee of a conservancy district who is designated pursuant to	469
section 6101.75 of the Revised Code and is in compliance with	470
section 109.77 of the Revised Code.	471

(MM) "Municipal police officer" means a member of the	472
organized police department of a municipal corporation who is	473
employed full-time, is in compliance with section 109.77 of the	474
Revised Code, and is not a member of the Ohio police and fire	475
pension fund.	476

(NN) "Ohio veterans' home police officer" means any person	477
who is employed at the Ohio veterans' home as a police officer	478
pursuant to section 5907.02 of the Revised Code and is in	479
compliance with section 109.77 of the Revised Code.	480

(OO) "Special police officer for a mental health	481
institution" means any person who is designated as such pursuant	482
to section 5119.14 of the Revised Code and is in compliance with	483
section 109.77 of the Revised Code.	484

(PP) "Special police officer for an institution for the	485
mentally retarded and developmentally disabled" means any person	486
who is designated as such pursuant to section 5123.13 of the	487
Revised Code and is in compliance with section 109.77 of the	488
Revised Code.	489

(QQ) "State university law enforcement officer" means any	490
person who is employed full-time as a state university law	491
enforcement officer pursuant to section 3345.04 of the Revised	492
Code and who is in compliance with section 109.77 of the Revised	493
Code.	494

(RR) "Hamilton county municipal court bailiff" means a	495
person appointed by the clerk of courts of the Hamilton county	496
municipal court under division (A)(3) of section 1901.32 of the	497
Revised Code who is employed full-time as a bailiff or deputy	498
bailiff, who has received a certificate attesting to the person's	499
satisfactory completion of the peace officer training school as	500
required by division (C) of section 109.77 of the Revised Code,	501
and whose primary duties are to preserve the peace, to protect	502
life and property, and to enforce the laws of this state.	503

(SS) "House sergeant at arms" means any person appointed by	504
the speaker of the house of representatives under division (B)(1)	505
of section 101.311 of the Revised Code who has arrest authority	506
under division (E)(1) of that section.	507

(TT) "Assistant house sergeant at arms" means any person	508
appointed by the house sergeant at arms under division (C)(1) of	509
section 101.311 of the Revised Code.	510

(UU) Notwithstanding section 2901.01 of the Revised Code,	511
"law enforcement officer" means a sheriff, deputy sheriff,	512
township constable or police officer in a township police	513
department or district, drug agent, department of public safety	514
enforcement agent, natural resources law enforcement staff	515
officer, park officer, forest officer, preserve officer, wildlife	516
officer, state watercraft officer, park district police officer,	517
conservancy district officer, Ohio veterans' home police officer,	518
special police officer for a mental health institution, special	519
police officer for an institution for the mentally retarded and	520
developmentally disabled, state university law enforcement	521
officer, Hamilton county municipal court bailiff, municipal	522
police officer, house sergeant at arms, or assistant house	523
sergeant at arms.	524

(VV) "Fiduciary" means a person who does any of the	525
following:	526

(1) Exercises any discretionary authority or control with	527
respect to the management of the system or with respect to the	528
management or disposition of its assets;	529

(2) Renders investment advice for a fee, direct or indirect,	530
with respect to money or property of the system;	531

(3) Has any discretionary authority or responsibility in the	532
administration of the system.	533

(WW) "Actuary" means an individual who satisfies all of the	534
following requirements:	535

(1) Is a member of the American academy of actuaries;

536

(2) Is an associate or fellow of the society of actuaries;

537

(3) Has a minimum of five years' experience in providing	538
actuarial services to public retirement plans.	539

Sec. 742.01.  As used in this chapter:

540

(A)(1) "Police department" means the police department of a	541
municipal corporation.	542

(2) "Member of a police department" means any of the	543
following:	544

(a) Any person who receives an original appointment as a	545
full-time regular police officer in a police department from a	546
duly established civil service eligible list or pursuant to	547
section 124.411 of the Revised Code, or who is described in	548
section 742.511 of the Revised Code, or who transfers from the	549
public employees retirement system to the Ohio police and fire	550
pension fund pursuant to section 742.513 of the Revised Code, or	551
who is appointed pursuant to section 737.15 or 737.16 of the	552
Revised Code as a full-time regular police officer and is paid	553
solely out of public funds of the employing municipal corporation;	554

(b) Any person who, on October 1, 1965, was contributing	555
four per cent of the person's annual salary to a police relief and	556
pension fund established under former section 741.32 of the	557
Revised Code;	558

(c) Any person who commences employment on or after	559
September 16, 1998, as a full-time police officer with a police	560
department in a position in which the person is required to	561
satisfactorily complete a peace officer training course in	562
compliance with section 109.77 of the Revised Code.	563

(B)(1) "Fire department" means a fire department of the	564
state or an instrumentality of the state or of a municipal	565
corporation, township, joint fire district, or other political	566
subdivision.	567

(2) "Member of a fire department" means all of the	568
following:	569

(a) Any person who commences employment after November 8,	570
1990, as a full-time firefighter with a fire department, in a	571
position in which the person is required to satisfactorily	572
complete or have satisfactorily completed a firefighter training	573
course approved under former section 3303.07 or section 4765.55 or	574
conducted under section 3737.33 of the Revised Code;	575

(b) Any person who has elected under section 742.515 of the	576
Revised Code to be transferred from the public employees	577
retirement system to the Ohio police and fire pension fund;	578

(c) Any full-time firefighter who, on November 8, 1990, is a	579
member of the Ohio police and fire pension fund.	580

(C) "Employee" means any person who is a member of a police	581
department or a member of a fire department.	582

(D) "Employer" means the government entity by which an	583
employee is employed and paid.	584

(E) "Member of the fund" means any person, except an other	585
system retirant as defined in section 742.26 of the Revised Code,	586
who is contributing a percentage of the person's annual salary to	587
the Ohio police and fire pension fund or who is receiving a	588
disability benefit or pension from the fund as a result of service	589
in a police or fire department. A person, other than an other	590
system retirant, who is contributing a percentage of the person's	591
annual salary to the fund and is dismissed, resigns, or is granted	592
a leave of absence from a police or fire department shall be	593
considered a "member of the fund" for a period of twelve months	594
after the first day of the dismissal, resignation, or leave of	595
absence, provided the sum deducted from the person's salary and	596
credited to the person's account in the fund remains on deposit in	597
the fund.	598

(F) "Year," for the purpose of determining benefits, means	599
any twelve consecutive calendar months of active service as a	600
member of the fund, or, in the case of a member whose salary is	601
paid weekly or biweekly, fifty-two consecutive weeks of active	602
service as a member.	603

(G) "Average annual salary" means the highest average annual	604
salary of a member of the fund during any three years of	605
contributions determined by dividing the member's total salary as	606
an employee during the years by three.	607

(H) "Normal service pension benefit" means the pension	608
benefit payable to a member of the fund under division (C)(1) of	609
section 742.37 of the Revised Code upon attaining age forty-eight.	610

(I) "Retirement allowance" means the total pension benefit	611
or disability benefit to which a member of the fund may be	612
entitled under division (C) of section 742.37 or section 742.39 of	613
the Revised Code.	614

(J) "Fiduciary" means a person who does any of the	615
following:	616

(1) Exercises any discretionary authority or control with	617
respect to the management of the system, or with respect to the	618
management or disposition of its assets;	619

(2) Renders investment advice for a fee, direct or indirect,	620
with respect to money or property of the system;	621

(3) Has any discretionary authority or responsibility in the	622
administration of the system.	623

(K) "Terminal pay" means the following payments made by an	624
employer to an employee on termination of employment:	625

(1) Payments for accrued but unused leave, including sick	626
leave, vacation, personal leave, and compensatory time;	627

(2) Payments deferred more than one year compensating the	628
employee for holidays worked or for longevity;	629

(3) Payments for overtime worked that are not included	630
either in the payroll for the period in which the overtime is	631
worked or for the next subsequent payroll period;	632

(4) Other payments that are not compensation for services	633
rendered in the last pay period in which services were rendered	634
and are designated as terminal pay by rule of the board of	635
trustees of the Ohio police and fire pension fund. The board	636
shall not designate as terminal pay payments deferred one year or	637
less compensating an employee for holidays worked or for	638
longevity.	639

(L)(1) Except as otherwise provided in this division,	640
"salary" means all compensation, wages, and other earnings paid to	641
an employee by reason of employment, but without regard to whether	642
compensation, wages, or other earnings are treated as deferred	643
income for federal income tax purposes. "Salary" includes	644
payments for overtime that are made not later than the payroll	645
following the payroll period in which the overtime is worked.	646

(2) "Salary" does not include any of the following:

647

(a) Compensation for services outside the scope of an	648
employee's regular employment;	649

(b) Reimbursement of expenses;

650

(c) Terminal pay;

651

(d) Payments for accrued but unused sick leave or personal	652
leave, or vacation pay covering periods for which salary,	653
compensation, or benefits are paid;	654

(e) Payments made under division (B) or (D) of section	655
5923.05 of the Revised Code or, Section 4 of Substitute Senate	656
Bill No. 3 of the 119th general assembly, or Section 3 of .....	657
Bill No. ..... of the 124th general assembly;	658

(f) Payments made to or on behalf of an employee that are in	659
excess of the annual compensation that may be taken into account	660
by the fund under division (a)(17) of section 401 of the "Internal	661
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 401(a)(17), as	662
amended.	663

(3) The board shall determine by rule whether any	664
compensation, wages, or earnings not enumerated in this division	665
is salary, and its decision shall be final.	666

(M) "Actuary" means an individual who satisfies all of the	667
following requirements:	668

(1) Is a member of the American academy of actuaries;

669

(2) Is an associate or fellow of the society of actuaries;

670

(3) Has a minimum of five years' experience in providing	671
actuarial services to public retirement plans.	672

Sec. 3307.01.  As used in this chapter:

673

(A) "Employer" means the board of education, school	674
district, governing authority of any community school established	675
under Chapter 3314. of the Revised Code, college, university,	676
institution, or other agency within the state by which a teacher	677
is employed and paid.	678

(B) "Teacher" means all of the following:

679

(1) Any person paid from public funds and employed in the	680
public schools of the state under any type of contract described	681
in section 3319.08 of the Revised Code in a position for which the	682
person is required to have a license issued pursuant to sections	683
3319.22 to 3319.31 of the Revised Code;	684

(2) Any person employed as a teacher by a community school	685
pursuant to Chapter 3314. of the Revised Code;	686

(3) Any person holding an internship certificate issued	687
under section 3319.28 of the Revised Code and employed in a public	688
school in this state;	689

(4) Any person having a license issued pursuant to sections	690
3319.22 to 3319.31 of the Revised Code and employed in a public	691
school in this state in an educational position, as determined by	692
the state board of education, under programs provided for by	693
federal acts or regulations and financed in whole or in part from	694
federal funds, but for which no licensure requirements for the	695
position can be made under the provisions of such federal acts or	696
regulations;	697

(5) Any other teacher or faculty member employed in any	698
school, college, university, institution, or other agency wholly	699
controlled and managed, and supported in whole or in part, by the	700
state or any political subdivision thereof, including Central	701
state university, Cleveland state university, the university of	702
Toledo, and the medical college of Ohio at Toledo;	703

(6) The educational employees of the department of	704
education, as determined by the state superintendent of public	705
instruction.	706

In all cases of doubt, the state teachers retirement board	707
shall determine whether any person is a teacher, and its decision	708
shall be final.	709

"Teacher" does not include any academic or administrative	710
employee of a public institution of higher education, as defined	711
in section 3305.01 of the Revised Code, who participates in an	712
alternative retirement plan established under Chapter 3305. of the	713
Revised Code.	714

(C) "Member" means any person included in the membership of	715
the state teachers retirement system, which shall consist of all	716
teachers and contributors as defined in divisions (B) and (D) of	717
this section and all disability benefit recipients, as defined in	718
section 3307.50 of the Revised Code. However, for purposes of	719
this chapter, the following persons shall not be considered	720
members:	721

(1) A student, intern, or resident who is not a member while	722
employed part-time by a school, college, or university at which	723
the student, intern, or resident is regularly attending classes;	724

(2) A person denied membership pursuant to section 3307.24	725
of the Revised Code;	726

(3) An other system retirant, as defined in section 3307.35	727
of the Revised Code, or a superannuate;	728

(4) An individual employed in a program established pursuant	729
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29	730
U.S.C.A. 1501.	731

(D) "Contributor" means any person who has an account in the	732
teachers' savings fund or defined contribution fund.	733

(E) "Beneficiary" means any person eligible to receive, or	734
in receipt of, a retirement allowance or other benefit provided by	735
this chapter.	736

(F) "Year" means the year beginning the first day of July	737
and ending with the thirtieth day of June next following, except	738
that for the purpose of determining final average salary under the	739
plan described in sections 3307.50 to 3307.79 of the Revised Code,	740
"year" may mean the contract year.	741

(G) "Local district pension system" means any school	742
teachers pension fund created in any school district of the state	743
in accordance with the laws of the state prior to September 1,	744
1920.	745

(H) "Employer contribution" means the amount paid by an	746
employer, as determined by the employer rate, including the normal	747
and deficiency rates, contributions, and funds wherever used in	748
this chapter.	749

(I) "Five years of service credit" means employment covered	750
under this chapter and employment covered under a former	751
retirement plan operated, recognized, or endorsed by a college,	752
institute, university, or political subdivision of this state	753
prior to coverage under this chapter.	754

(J) "Actuary" means the actuarial consultant to the state	755
teachers retirement board, who shall be either of the following:	756

(1) A member of the American academy of actuaries;

757

(2) A firm, partnership, or corporation of which at least	758
one person is a member of the American academy of actuaries.	759

(K) "Fiduciary" means a person who does any of the	760
following:	761

(1) Exercises any discretionary authority or control with	762
respect to the management of the system, or with respect to the	763
management or disposition of its assets;	764

(2) Renders investment advice for a fee, direct or indirect,	765
with respect to money or property of the system;	766

(3) Has any discretionary authority or responsibility in the	767
administration of the system.	768

(L)(1) Except as provided in this division, "compensation"	769
means all salary, wages, and other earnings paid to a teacher by	770
reason of the teacher's employment, including compensation paid	771
pursuant to a supplemental contract. The salary, wages, and other	772
earnings shall be determined prior to determination of the amount	773
required to be contributed to the teachers' savings fund or	774
defined contribution fund under section 3307.26 of the Revised	775
Code and without regard to whether any of the salary, wages, or	776
other earnings are treated as deferred income for federal income	777
tax purposes.	778

(2) Compensation does not include any of the following:

779

(a) Payments for accrued but unused sick leave or personal	780
leave, including payments made under a plan established pursuant	781
to section 124.39 of the Revised Code or any other plan	782
established by the employer;	783

(b) Payments made for accrued but unused vacation leave,	784
including payments made pursuant to section 124.13 of the Revised	785
Code or a plan established by the employer;	786

(c) Payments made for vacation pay covering concurrent	787
periods for which other salary, compensation, or benefits under	788
this chapter are paid;	789

(d) Amounts paid by the employer to provide life insurance,	790
sickness, accident, endowment, health, medical, hospital, dental,	791
or surgical coverage, or other insurance for the teacher or the	792
teacher's family, or amounts paid by the employer to the teacher	793
in lieu of providing the insurance;	794

(e) Incidental benefits, including lodging, food, laundry,	795
parking, or services furnished by the employer, use of the	796
employer's property or equipment, and reimbursement for	797
job-related expenses authorized by the employer, including moving	798
and travel expenses and expenses related to professional	799
development;	800

(f) Payments made by the employer in exchange for a member's	801
waiver of a right to receive any payment, amount, or benefit	802
described in division (L)(2) of this section;	803

(g) Payments by the employer for services not actually	804
rendered;	805

(h) Any amount paid by the employer as a retroactive	806
increase in salary, wages, or other earnings, unless the increase	807
is one of the following:	808

(i) A retroactive increase paid to a member employed by a	809
school district board of education in a position that requires a	810
license designated for teaching and not designated for being an	811
administrator issued under section 3319.22 of the Revised Code	812
that is paid in accordance with uniform criteria applicable to all	813
members employed by the board in positions requiring the licenses;	814

(ii) A retroactive increase paid to a member employed by a	815
school district board of education in a position that requires a	816
license designated for being an administrator issued under section	817
3319.22 of the Revised Code that is paid in accordance with	818
uniform criteria applicable to all members employed by the board	819
in positions requiring the licenses;	820

(iii) A retroactive increase paid to a member employed by a	821
school district board of education as a superintendent that is	822
also paid as described in division (L)(2)(h)(i) of this section;	823

(iv) A retroactive increase paid to a member employed by an	824
employer other than a school district board of education in	825
accordance with uniform criteria applicable to all members	826
employed by the employer.	827

(i) Payments made to or on behalf of a teacher that are in	828
excess of the annual compensation that may be taken into account	829
by the retirement system under division (a)(17) of section 401 of	830
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	831
401(a)(17), as amended. For a teacher who first establishes	832
membership before July 1, 1996, the annual compensation that may	833
be taken into account by the retirement system shall be determined	834
under division (d)(3) of section 13212 of the "Omnibus Budget	835
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.	836

(j) Payments made under division (B) or (D) of section	837
5923.05 of the Revised Code or, Section 4 of Substitute Senate	838
Bill No. 3 of the 119th general assembly, or Section 3 of .....	839
Bill No. ..... of the 124th general assembly;	840

(k) Anything of value received by the teacher that is based	841
on or attributable to retirement or an agreement to retire.	842

(3) The retirement board shall determine by rule both of the	843
following:	844

(a) Whether particular forms of earnings are included in any	845
of the categories enumerated in this division;	846

(b) Whether any form of earnings not enumerated in this	847
division is to be included in compensation.	848

Decisions of the board made under this division shall be	849
final.	850

(M) "Superannuate" means both of the following:

851

(1) A former teacher receiving from the system a retirement	852
allowance under section 3307.58 or 3307.59 of the Revised Code;	853

(2) A former teacher receiving any benefit from the system	854
under a plan established under section 3307.81 of the Revised	855
Code.	856

For purposes of section 3307.35 of the Revised Code,	857
"superannuate" also means a former teacher receiving from the	858
system a combined service retirement benefit paid in accordance	859
with section 3307.57 of the Revised Code, regardless of which	860
retirement system is paying the benefit.	861

Sec. 3309.01.  As used in this chapter:

862

(A) "Employer" or "public employer" means boards of	863
education, school districts, joint vocational districts, governing	864
authorities of community schools established under Chapter 3314.	865
of the Revised Code, educational institutions, technical colleges,	866
state, municipal, and community colleges, community college	867
branches, universities, university branches, other educational	868
institutions, or other agencies within the state by which an	869
employee is employed and paid, including any organization using	870
federal funds, provided the federal funds are disbursed by an	871
employer as determined by the above. In all cases of doubt, the	872
school employees retirement board shall determine whether any	873
employer is an employer as defined in this chapter, and its	874
decision shall be final.	875

(B) "Employee" means all of the following:

876

(1) Any person employed by a public employer in a position	877
for which the person is not required to have a certificate or	878
license issued pursuant to sections 3319.22 to 3319.31 of the	879
Revised Code;	880

(2) Any person who performs a service common to the normal	881
daily operation of an educational unit even though the person is	882
employed and paid by one who has contracted with an employer to	883
perform the service, and the contracting board or educational unit	884
shall be the employer for the purposes of administering the	885
provisions of this chapter;	886

(3) Any person, not a faculty member, employed in any school	887
or college or other institution wholly controlled and managed, and	888
wholly or partly supported by the state or any political	889
subdivision thereof, the board of trustees, or other managing body	890
of which shall accept the requirements and obligations of this	891
chapter.	892

In all cases of doubt, the school employees retirement board	893
shall determine whether any person is an employee, as defined in	894
this division, and its decision is final.	895

(C) "Prior service" means all service rendered prior to	896
September 1, 1937:	897

(1) As an employee as defined in division (B) of this	898
section;	899

(2) As an employee in a capacity covered by the public	900
employees retirement system or the state teachers retirement	901
system;	902

(3) As an employee of an institution in another state,	903
service credit for which was procured by a member under the	904
provisions of section 3309.31 of the Revised Code.	905

Prior service, for service as an employee in a capacity	906
covered by the public employees retirement system or the state	907
teachers retirement system, shall be granted a member under	908
qualifications identical to the laws and rules applicable to	909
service credit in those systems.	910

Prior service shall not be granted any member for service	911
rendered in a capacity covered by the public employees retirement	912
system, the state teachers retirement system, and this system in	913
the event the service credit has, in the respective systems, been	914
received, waived by exemption, or forfeited by withdrawal of	915
contributions, except as provided in this chapter.	916

If a member who has been granted prior service should,	917
subsequent to September 16, 1957, and before retirement, establish	918
three years of contributing service in the public employees	919
retirement system, or one year in the state teachers retirement	920
system, then the prior service granted shall become, at	921
retirement, the liability of the other system, if the prior	922
service or employment was in a capacity that is covered by that	923
system.	924

The provisions of this division shall not cancel any prior	925
service granted a member by the school employees retirement board	926
prior to August 1, 1959.	927

(D) "Total service," "total service credit," or "Ohio	928
service credit" means all contributing service of a member of the	929
school employees retirement system, and all prior service,	930
computed as provided in this chapter, and all service established	931
pursuant to sections 3309.31, 3309.311, and 3309.33 of the Revised	932
Code. In addition, "total service" includes any period, not in	933
excess of three years, during which a member was out of service	934
and receiving benefits from the state insurance fund, provided the	935
injury or incapacitation was the direct result of school	936
employment.	937

(E) "Member" means any employee, except an SERS retirant or	938
other system retirant as defined in section 3309.341 of the	939
Revised Code, who has established membership in the school	940
employees retirement system. "Member" includes a disability	941
benefit recipient.	942

(F) "Contributor" means any person who has an account in the	943
employees' savings fund. When used in the sections listed in	944
division (B) of section 3309.82 of the Revised Code, "contributor"	945
includes any person participating in a plan established under	946
section 3309.81 of the Revised Code.	947

(G) "Retirant" means any former member who retired and is	948
receiving a service retirement allowance or commuted service	949
retirement allowance as provided in this chapter.	950

(H) "Beneficiary" or "beneficiaries" means the estate or a	951
person or persons who, as the result of the death of a contributor	952
or retirant, qualifies for or is receiving some right or benefit	953
under this chapter.	954

(I) "Interest," as specified in division (E) of section	955
3309.60 of the Revised Code, means interest at the rates for the	956
respective funds and accounts as the school employees retirement	957
board may determine from time to time, except as follows:	958

(1) The rate of interest credited on employee contributions	959
at retirement shall be four per cent per annum, compounded	960
annually, to and including June 30, 1955; three per cent per	961
annum, compounded annually, from July 1, 1955, to and including	962
June 30, 1963; three and one-quarter per cent per annum,	963
compounded annually, from July 1, 1963, through June 30, 1966; and	964
thereafter, four per cent per annum compounded annually until a	965
change in the amount is recommended by the system's actuary and	966
approved by the retirement board. Subsequent to June 30, 1959,	967
the retirement board shall discontinue the annual crediting of	968
current interest on a contributor's accumulated contributions.	969
Noncrediting of current interest shall not affect the rate of	970
interest at retirement guaranteed under this division.	971

(2) In determining the reserve value for purposes of	972
computing the amount of the contributor's annuity, the rate of	973
interest used in the annuity values shall be four per cent per	974
annum through September 30, 1956; three per cent per annum	975
compounded annually from October 1, 1956, through June 30, 1963;	976
three and one-quarter per cent per annum compounded annually from	977
July 1, 1963, through June 30, 1966; and, thereafter, four per	978
cent per annum compounded annually until a change in the amount is	979
recommended by the system's actuary and approved by the retirement	980
board. In the purchase of out-of-state service credit as provided	981
in section 3309.31 of the Revised Code, and in the purchase of an	982
additional annuity, as provided in section 3309.47 of the Revised	983
Code, interest shall be computed and credited to reserves therefor	984
at the rate the school employees retirement board shall fix as	985
regular interest thereon.	986

(J) "Accumulated contributions" means the sum of all amounts	987
credited to a contributor's account in the employees' savings fund	988
together with any regular interest credited thereon at the rates	989
approved by the retirement board prior to retirement.	990

(K) "Final average salary" means the sum of the annual	991
compensation for the three highest years of compensation for which	992
contributions were made by the member, divided by three. If the	993
member has a partial year of contributing service in the year in	994
which the member terminates employment and the partial year is at	995
a rate of compensation that is higher than the rate of	996
compensation for any one of the highest three years of annual	997
earnings, the board shall substitute the compensation earned for	998
the partial year for the compensation earned for a similar	999
fractional portion in the lowest of the three high years of annual	1000
compensation before dividing by three. If a member has less than	1001
three years of contributing membership, the final average salary	1002
shall be the total compensation divided by the total number of	1003
years, including any fraction of a year, of contributing service.	1004

(L) "Annuity" means payments for life derived from	1005
contributions made by a contributor and paid from the annuity and	1006
pension reserve fund as provided in this chapter. All annuities	1007
shall be paid in twelve equal monthly installments.	1008

(M)(1) "Pension" means annual payments for life derived from	1009
appropriations made by an employer and paid from the employers'	1010
trust fund or the annuity and pension reserve fund. All pensions	1011
shall be paid in twelve equal monthly installments.	1012

(2) "Disability retirement" means retirement as provided in	1013
section 3309.40 of the Revised Code.	1014

(N) "Retirement allowance" means the pension plus the	1015
annuity.	1016

(O)(1) "Benefit" means a payment, other than a retirement	1017
allowance or the annuity paid under section 3309.341 of the	1018
Revised Code, payable from the accumulated contributions of the	1019
member or the employer, or both, under this chapter and includes a	1020
disability allowance or disability benefit.	1021

(2) "Disability allowance" means an allowance paid on	1022
account of disability under section 3309.401 of the Revised Code.	1023

(3) "Disability benefit" means a benefit paid as disability	1024
retirement under section 3309.40 of the Revised Code, as a	1025
disability allowance under section 3309.401 of the Revised Code,	1026
or as a disability benefit under section 3309.35 of the Revised	1027
Code.	1028

(P) "Annuity reserve" means the present value, computed upon	1029
the basis of mortality tables adopted by the school employees	1030
retirement board, of all payments to be made on account of any	1031
annuity, or benefit in lieu of any annuity, granted to a retirant.	1032

(Q) "Pension reserve" means the present value, computed upon	1033
the basis of mortality tables adopted by the school employees	1034
retirement board, of all payments to be made on account of any	1035
pension, or benefit in lieu of any pension, granted to a retirant	1036
or a beneficiary.	1037

(R) "Year" means the year beginning the first day of July	1038
and ending with the thirtieth day of June next following.	1039

(S) "Local district pension system" means any school	1040
employees' pension fund created in any school district of the	1041
state prior to September 1, 1937.	1042

(T) "Employer contribution" means the amount paid by an	1043
employer as determined under section 3309.49 of the Revised Code.	1044

(U) "Fiduciary" means a person who does any of the	1045
following:	1046

(1) Exercises any discretionary authority or control with	1047
respect to the management of the system, or with respect to the	1048
management or disposition of its assets;	1049

(2) Renders investment advice for a fee, direct or indirect,	1050
with respect to money or property of the system;	1051

(3) Has any discretionary authority or responsibility in the	1052
administration of the system.	1053

(V)(1) Except as otherwise provided in this division,	1054
"compensation" means all salary, wages, and other earnings paid to	1055
a contributor by reason of employment. The salary, wages, and	1056
other earnings shall be determined prior to determination of the	1057
amount required to be contributed to the employees' savings fund	1058
under section 3309.47 of the Revised Code and without regard to	1059
whether any of the salary, wages, or other earnings are treated as	1060
deferred income for federal income tax purposes.	1061

(2) Compensation does not include any of the following:

1062

(a) Payments for accrued but unused sick leave or personal	1063
leave, including payments made under a plan established pursuant	1064
to section 124.39 of the Revised Code or any other plan	1065
established by the employer;	1066

(b) Payments made for accrued but unused vacation leave,	1067
including payments made pursuant to section 124.13 of the Revised	1068
Code or a plan established by the employer;	1069

(c) Payments made for vacation pay covering concurrent	1070
periods for which other salary or compensation is also paid or	1071
during which benefits are paid under this chapter;	1072

(d) Amounts paid by the employer to provide life insurance,	1073
sickness, accident, endowment, health, medical, hospital, dental,	1074
or surgical coverage, or other insurance for the contributor or	1075
the contributor's family, or amounts paid by the employer to the	1076
contributor in lieu of providing the insurance;	1077

(e) Incidental benefits, including lodging, food, laundry,	1078
parking, or services furnished by the employer, use of the	1079
employer's property or equipment, and reimbursement for	1080
job-related expenses authorized by the employer, including moving	1081
and travel expenses and expenses related to professional	1082
development;	1083

(f) Payments made to or on behalf of a contributor that are	1084
in excess of the annual compensation that may be taken into	1085
account by the retirement system under division (a)(17) of section	1086
401 of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26	1087
U.S.C.A. 401(a)(17), as amended. For a contributor who first	1088
establishes membership before July 1, 1996, the annual	1089
compensation that may be taken into account by the retirement	1090
system shall be determined under division (d)(3) of section 13212	1091
of the "Omnibus Budget Reconciliation Act of 1993," Pub. L.	1092
103-66, 107 Stat. 472;	1093

(g) Payments made under division (B) or (D) of section	1094
5923.05 of the Revised Code or, Section 4 of Substitute Senate	1095
Bill No. 3 of the 119th general assembly, or Section 3 of .....	1096
Bill No. ..... of the 124th general assembly;	1097

(h) Anything of value received by the contributor that is	1098
based on or attributable to retirement or an agreement to retire,	1099
except that payments made on or before January 1, 1989, that are	1100
based on or attributable to an agreement to retire shall be	1101
included in compensation if both of the following apply:	1102

(i) The payments are made in accordance with contract	1103
provisions that were in effect prior to January 1, 1986.	1104

(ii) The employer pays the retirement system an amount	1105
specified by the retirement board equal to the additional	1106
liability from the payments.	1107

(3) The retirement board shall determine by rule whether any	1108
form of earnings not enumerated in this division is to be included	1109
in compensation, and its decision shall be final.	1110

(W) "Disability benefit recipient" means a member who is	1111
receiving a disability benefit.	1112

(X) "Actuary" means an individual who satisfies all of the	1113
following requirements:	1114

(1) Is a member of the American academy of actuaries;

1115

(2) Is an associate or fellow of the society of actuaries;

1116

(3) Has a minimum of five years' experience in providing	1117
actuarial services to public retirement plans.	1118

Sec. 5505.01.  As used in this chapter:

1119

(A) "Employee" means any qualified employee in the uniform	1120
division of the state highway patrol, any qualified employee in	1121
the radio division hired prior to November 2, 1989, and any state	1122
highway patrol cadet attending training school pursuant to section	1123
5503.05 of the Revised Code whose attendance at the school begins	1124
on or after June 30, 1991. "Employee" includes the superintendent	1125
of the state highway patrol. In all cases of doubt, the state	1126
highway patrol retirement board shall determine whether any person	1127
is an employee as defined in this division, and the decision of	1128
the board is final.	1129

(B) "Prior service" means all service rendered as an	1130
employee of the state highway patrol prior to September 5, 1941,	1131
to the extent credited by the board, provided that in no case	1132
shall prior service include service rendered prior to November 15,	1133
1933.	1134

(C) "Total service" means all service rendered by an	1135
employee to the extent credited by the board. Total service	1136
includes all of the following:	1137

(1) Contributing service rendered by the employee since last	1138
becoming a member of the state highway patrol retirement system;	1139

(2) All prior service credit;

1140

(3) Restored service credit as provided in this chapter;

1141

(4) Military service credit purchased under division (D) of	1142
section 5505.16 or section 5505.25 of the Revised Code;	1143

(5) Credit granted under division (C) of section 5505.17 or	1144
section 5505.201, 5505.40, or 5505.402 of the Revised Code;	1145

(6) Credit for any period, not to exceed three years, during	1146
which the member was out of service and receiving benefits under	1147
Chapters 4121. and 4123. of the Revised Code.	1148

(D) "Beneficiary" means any person, except a retirant, who	1149
is in receipt of a pension or other benefit payable from funds of	1150
the retirement system.	1151

(E) "Regular interest" means interest compounded at rates	1152
designated from time to time by the retirement board.	1153

(F) "Plan" means the provisions of this chapter.

1154

(G) "Retirement system" or "system" means the state highway	1155
patrol retirement system created and established in the plan.	1156

(H) "Contributing service" means all service rendered by a	1157
member since September 4, 1941, for which deductions were made	1158
from the member's salary under the plan.	1159

(I) "Retirement board" or "board" means the state highway	1160
patrol retirement board provided for in the plan.	1161

(J) Except as provided in section 5505.18 of the Revised	1162
Code, "member" means any employee included in the membership of	1163
the retirement system, whether or not rendering contributing	1164
service.	1165

(K) "Retirant" means any member who retires with a pension	1166
payable from the retirement system.	1167

(L) "Accumulated contributions" means the sum of all amounts	1168
deducted from the salary of a member and credited to the member's	1169
individual account in the employees' savings fund.	1170

(M)(1) Except as provided in division (M)(2) of this	1171
section, "final average salary" means the average of the highest	1172
salary paid a member during any three consecutive or	1173
nonconsecutive years.	1174

If a member has less than three years of contributing	1175
service, the member's final average salary shall be the average of	1176
the annual rates of salary paid to the member during the member's	1177
total years of contributing service.	1178

(2) If a member is credited with service under division	1179
(C)(6) of this section or division (D) of section 5505.16 of the	1180
Revised Code, the member's final average salary shall be the	1181
average of the highest salary that was paid to the member or would	1182
have been paid to the member, had the member been rendering	1183
contributing service, during any three consecutive or	1184
nonconsecutive years. If that member has less than three years of	1185
total service, the member's final average salary shall be the	1186
average of the annual rates of salary that were paid to the member	1187
or would have been paid to the member during the member's years of	1188
total service.	1189

(N) "Pension" means an annual amount payable by the	1190
retirement system throughout the life of a person or as otherwise	1191
provided in the plan. All pensions shall be paid in equal monthly	1192
installments.	1193

(O) "Pension reserve" means the present value of any	1194
pension, or benefit in lieu of any pension, computed upon the	1195
basis of mortality and other tables of experience and interest the	1196
board shall from time to time adopt.	1197

(P) "Deferred pension" means a pension for which an eligible	1198
member of the system has made application and which is payable as	1199
provided in division (A) or (B) of section 5505.16 of the Revised	1200
Code.	1201

(Q) "Retirement" means termination as an employee of the	1202
state highway patrol, with application having been made to the	1203
system for a pension or a deferred pension.	1204

(R) "Fiduciary" means any of the following:

1205

(1) A person who exercises any discretionary authority or	1206
control with respect to the management of the system, or with	1207
respect to the management or disposition of its assets;	1208

(2) A person who renders investment advice for a fee, direct	1209
or indirect, with respect to money or property of the system;	1210

(3) A person who has any discretionary authority or	1211
responsibility in the administration of the system.	1212

(S)(1) Except as otherwise provided in this division,	1213
"salary" means all compensation, wages, and other earnings paid to	1214
a member by reason of employment but without regard to whether any	1215
of the compensation, wages, or other earnings are treated as	1216
deferred income for federal income tax purposes. Salary includes	1217
all of the following:	1218

(a) Payments for shift differential, hazard duty,	1219
professional achievement, and longevity;	1220

(b) Payments for occupational injury leave, personal leave,	1221
sick leave, bereavement leave, administrative leave, and vacation	1222
leave used by the member;	1223

(c) Payments made under a disability leave program sponsored	1224
by the state for which the state is required by section 5505.151	1225
of the Revised Code to make periodic employer and employee	1226
contributions to the retirement system.	1227

(2) "Salary" does not include any of the following:

1228

(a) Payments resulting from the conversion of accrued but	1229
unused sick leave, personal leave, compensatory time, and vacation	1230
leave;	1231

(b) Payments made by the state to provide life insurance,	1232
sickness, accident, endowment, health, medical, hospital, dental,	1233
or surgical coverage, or other insurance for the member or the	1234
member's family, or amounts paid by the state to the member in	1235
lieu of providing that insurance;	1236

(c) Payments for overtime work;

1237

(d) Incidental benefits, including lodging, food, laundry,	1238
parking, or services furnished by the state, use of property or	1239
equipment of the state, and reimbursement for job-related expenses	1240
authorized by the state including moving and travel expenses and	1241
expenses related to professional development;	1242

(e) Payments made to or on behalf of a member that are in	1243
excess of the annual compensation that may be taken into account	1244
by the retirement system under division (a)(17) of section 401 of	1245
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.	1246
401 (a)(17), as amended;	1247

(f) Payments made under division (B) or (D) of section	1248
5923.05 of the Revised Code or, Section 4 of Substitute Senate	1249
Bill No. 3 of the 119th general assembly, or Section 3 of .....	1250
Bill No. ..... of the 124th general assembly.	1251

(3) The retirement board shall determine by rule whether any	1252
compensation, wages, or earnings not enumerated in this division	1253
are salary, and its decision shall be final.	1254

(T) "Actuary" means an individual who satisfies all of the	1255
following requirements:	1256

(1) Is a member of the American academy of actuaries;

1257

(2) Is an associate or fellow of the society of actuaries;

1258

(3) Has a minimum of five years' experience in providing	1259
actuarial services to public retirement plans.	1260

Sec. 5923.05.  (A)(1) Permanent public employees, as defined	1261
in section 5903.01 of the Revised Code, who are members of the	1262
Ohio organized militia, or members of other reserve components of	1263
the armed forces of the United States, including the Ohio national	1264
guard, are entitled to leave of absence from their respective	1265
positions without loss of pay for the time they are performing	1266
service in the uniformed services, as defined in section 5903.01	1267
of the Revised Code for periods of up to one month, for each	1268
calendar year in which they are performing service in the	1269
uniformed services.	1270

(2) As used in this section,:

1271

(a) "calendarCalendar year" means the year beginning on the	1272
first day of January and ending on the last day of December, and.	1273

(b) "monthMonth" means twenty-two eight-hour work days or	1274
one hundred seventy-six hours within one calendar year.	1275

(c) "Permanent public employees" and "uniformed services"	1276
have the same meanings as in section 5903.01 of the Revised Code.	1277

(B) Except as otherwise provided in division (C) of this	1278
section, any permanent public employee who is entitled to the	1279
leave provided under division (A) of this section and who is	1280
called or ordered to the uniformed services for longer than a	1281
month, for each calendar year in which the employee performed	1282
service in the uniformed services, because of an executive order	1283
issued by the president of the United States or an act of congress	1284
is entitled, during the period designated in the order or act, to	1285
a leave of absence and to be paid, during each monthly pay period	1286
of that leave of absence, the lesser of the following:	1287

(1) The difference between the permanent public employee's	1288
gross monthly wage or salary as an officer or permanent public	1289
employee and the sum of the permanent public employee's gross	1290
uniformed pay and allowances received that month;	1291

(2) Five hundred dollars.

1292

(C) No permanent public employee shall receive payments	1293
under division (B) of this section if the sum of the permanent	1294
public employee's gross uniformed pay and allowances received in a	1295
pay period exceeds the employee's gross wage or salary as a	1296
permanent public employee for that period or if the permanent	1297
public employee is receiving pay under division (A) of this	1298
section.	1299

(D) Any political subdivision of the state, as defined in	1300
section 2744.01 of the Revised Code, may elect to pay any of its	1301
permanent public employees who are entitled to the leave provided	1302
under division (A) of this section and who are called or ordered	1303
to the uniformed services for longer than one month, for each	1304
calendar year in which the employee performed service in the	1305
uniformed services, because of an executive order issued by the	1306
president or an act of congress, such payments, in addition to	1307
those payments required by division (B) of this section, as may be	1308
authorized by the legislative authority of the political	1309
subdivision.	1310

(E) Each permanent public employee who is entitled to leave	1311
provided under division (A) of this section shall submit to the	1312
permanent public employee's appointing authority the published	1313
order authorizing the call or order to the uniformed services or a	1314
written statement from the appropriate military commander	1315
authorizing that service, prior to being credited with suchthat	1316
leave.	1317

(F) Any permanent public employee of a political subdivision	1318
whose employment is governed by a collective bargaining agreement	1319
with provision for the performance of service in the uniformed	1320
services shall abide by the terms of that collective bargaining	1321
agreement with respect to the performance of suchthat service,	1322
except that no collective bargaining agreement may afford fewer	1323
rights and benefits than are conferred under this section.	1324

Sec. 5923.051. Notwithstanding any collective bargaining	1325
agreement or other agreement or law to the contrary, the state and	1326
any agency, authority, commission, or board of the state, at the	1327
request of any person who is employed by the state or any of those	1328
entities and who is called to active duty as described in division	1329
(B) of section 5923.05 of the Revised Code, or at the request of	1330
the spouse or dependent of such a person, shall continue or	1331
reactivate the health, medical, hospital, dental, vision, and	1332
surgical benefits coverage, whether provided by an insurance	1333
company, health insuring corporation, or other health plan or	1334
entity, of the person for the duration of the time the person is	1335
on active duty as described in that division. The person, or the	1336
spouse or dependent of the person, who requests the continuation	1337
or reactivation of the coverage and the employing state or state	1338
entity are each liable for payment of the same costs for the	1339
coverage as if the person were not on a leave of absence.	1340

Section 2. That existing sections 145.01, 742.01, 3307.01,	1341
3309.01, 5505.01, and 5923.05 of the Revised Code are hereby	1342
repealed.	1343

Section 3. Any person who is entitled to payments provided	1344
under division (B) of section 5923.05 of the Revised Code, as	1345
amended by this act, shall receive the payments based upon the	1346
later of October 1, 2001, or the date the person's leave of	1347
absence began due to being called to active duty as specified in	1348
that division. If the person was called to active duty prior to	1349
the effective date of this act and that person is entitled to	1350
benefits under that division, the person's employing entity shall	1351
pay, in a lump sum, the person the amount due prior to the	1352
effective date of this act.	1353

Section 4. Beginning October 1, 2003, and continuing as long	1354
as section 5923.05 of the Revised Code is in effect, a joint	1355
committee consisting of the standing committees of the House of	1356
Representatives and Senate to which matters concerning veterans	1357
affairs are normally referred shall biennually review the	1358
provisions of that section. Upon completion of each biennial	1359
review, the joint committee shall issue a report to the Governor,	1360
the Speaker of the House of Representatives, and the President of	1361
the Senate. The report shall make recommendations for changes to	1362
that section that the joint committee determines to be necessary.	1363

Section 5. This act is hereby declared to be an emergency	1364
measure necessary for the immediate preservation of the public	1365
peace, health, and safety. The reason for the necessity is that	1366
the recent activation of military reserve units based in this	1367
state requires an immediate change in the law to provide for	1368
payment of compensation and the continuation of health benefit	1369
coverage of public employees who are members of these units and on	1370
active duty for more than 31 days. Therefore, this act shall go	1371
into immediate effect.	1372