Ohio Administrative Code › Title 3307:1 - Defined Benefit › Chapter 3307:1-3 - Restoration and Purchased Credit › Section 3307:1-3-13 - Determination of cost for service credit purchased under section 3307.70 of the Revised Code

Current through all regulations passed and filed through July 1, 2024
(A) As provided in section
			 3307.73,
			 3307.74,
			 3307.751,
			 3307.76,
			 3307.771, or
			 3307.78 of the Revised Code, a
			 member may purchase service credit at a cost that is equal to one hundred
			 percent of the actuarial liability resulting from the purchase. The cost for
			 each year shall be calculated separately and sequentially and shall be based on
			 the factors outlined in paragraph (B) of this rule.
(B) The member shall pay the retirement
			 system for credit to the member's accumulated account an amount equal to one
			 hundred per cent of the actuarial liability resulting from the purchase of the
			 service credit as determined by an actuary employed by the state teachers
			 retirement board based on the following factors at the time the cost statement
			 is issued:
(1) The member's age as of the
			 previous July first.
(2) The
			 member's years of service credit, which shall include all of the following,
			 except that such total combined service credit shall not exceed one year of
			 credit for any one year, and which shall be determined by the retirement system
			 in its sole discretion:
(a) Total service
			 credit as defined by section
			 3307.50 of the Revised Code as
			 of the previous June thirtieth unless such service credit reporting is adjusted
			 after that date, then the total service credit as of June thirtieth will be
			 changed to reflect the adjustment made. Should the adjustment in service credit
			 occur after the cost statement is issued but before the payment is completed, a
			 new cost statement reflecting the adjustment in service credit will be issued
			 to the member.
(b) All service
			 credit established after June thirtieth or being purchased through payroll
			 deduction as outlined in this rule and rule
			 3307:1-3-11
			 of the Administrative Code under sections
			 3307.71,
			 3307.72,
			 3307.73,
			 3307.74,
			 3307.75,
			 3307.751,
			 3307.752,
			 3307.76,
			 3307.761,
			 3307.763,
			 3307.77,
			 3307.771, and
			 3307.78 of the Revised Code.
			 Should the amount of service credit in this paragraph change due to other
			 purchases of service credit after the cost statement is issued but before the
			 payment is completed, the member's years of service credit will be adjusted to
			 reflect the change in the years of service credit and a new cost statement will
			 be issued to the member.
(c) All
			 service credit eligible for restoration under section
			 3307.71 of the Revised
			 Code.
(d) All service credit
			 established in the public employees retirement system of Ohio and the school
			 employees retirement system of Ohio including total service credit as defined
			 in sections 145.01 and
			 3309.01 of the Revised Code and
			 service credit eligible for restoration under sections
			 3309.26,
			 3309.261,
			 145.31 and
			 145.311 of the Revised
			 Code.
(3) The member's
			 salary base for determining the cost of service credit purchased under section
			 3307.70 of the Revised Code
			 shall be the  compensation as described in paragraphs
			 (B)(3)(a), (B)(3)(b), and (B)(3)(c) of this rule, and if the compensation is
			 adjusted after the cost statement is issued but before the payment is
			 completed, the salary base will be changed to reflect the adjustment made and a
			 new cost statement will be issued to the member. The salary base shall be
			 determined by the retirement system in its sole discretion.
(a) Compensation is defined the same as
			 division (L) of section
			 3307.01 of the Revised
			 Code.
(b)
										The calculation of cost shall be
			 based upon the greater of the salary base amount as defined in section
			 3317.13 of the Revised Code,
			 final average salary or the
			 most recent year in which the member had
			 compensation upon which contributions were made, adjusted to full-time
			 equivalence if less than full-time.
(c) The salary base shall also include all
			 compensation with the public employee's retirement system and school employee's
			 retirement system for the same year in which the member had compensation as
			 described in paragraphs (B)(3)(a) and (B)(3)(b) of this rule.