Ohio Administrative Code › Title 145 - Public Employees Retirement System › Chapter 145-3 - Contributions › Section 145-3-40 - Service credit in the combined plan for participation in member- directed plan

Current through all regulations passed and filed through July 1, 2024
(A) This rule
			 amplifies section
			 145.814
			 of the Revised Code and sections 2.03, 2.04, and 6.02 of the member-directed
			 plan document. This rule applies to members
			 participating in the combined plan on December 31, 2021.
(B) For each member who elects to transfer
			 funds from the member-directed plan to purchase service in the combined plan
			 under division (D) of section
			 145.814
			 of the Revised Code and section 2.03 of the member-directed plan document, the
			 public employees retirement system shall prepare a statement of cost for
			 service credit to be purchased in the combined plan based on participation in
			 the member-directed plan, at the request of an eligible member. An actuary
			 employed by the public employees retirement board shall determine the
			 additional liability, as defined in section
			 145.814
			 of the Revised Code, as described in rule
			 145-3-23
			 of the Administrative Code.
(C) An
			 eligible member shall purchase the service credit only by a lump-sum payment of
			 the amount on deposit, as defined in rule
			 145-1-35 of the
			 Administrative Code, except that a member described in division (D)(1) of
			 section
			 145.814
			 of the Revised Code may, pay any additional liability that exceeds the amount
			 on deposit by initiating payroll deduction under rule
			 145-1-38
			 of the Administrative Code or by direct partial payment. For plan elections
			 effective on or before July 1, 2015, the payroll deduction shall be initiated
			 or direct partial payment shall be made not later than one hundred eighty days
			 after the effective date of an election to participate in the combined plan
			 under section 2.03 of the member-directed plan document. Service credit
			 purchased under this rule shall be included in the member's total service
			 credit in the combined plan. If the member elects to receive pro-rated service
			 credit, for purposes of section
			 1.41
			 of the combined plan document, the period of service upon which contributing
			 service is based shall be the member's earliest service credit available to
			 purchase under this rule.
(D) Any
			 funds remaining in an eligible member's accounts, as defined in section
			 1.01
			 of the member-directed plan document, after the purchase of service credit
			 under this rule shall be credited to the member's rollover account in the
			 combined plan and treated as a rollover, except that amounts transferred to the
			 member-directed plan under section 2.02 of the member-directed plan document
			 shall be credited to the participant contribution account in the combined plan,
			 as if the contributions had been originally transferred under section 2.02 of
			 the combined plan document. A member may also elect, at the time of service
			 purchase, to leave any remaining funds on deposit in the member-directed plan;
			 any funds remaining shall be credited to the member's rollover account, as
			 defined in section
			 1.31
			 of the member-directed plan document, and treated as a rollover.
(E)
(1)
			 Service credit purchased under this rule cancels the corresponding years of
			 participation in the member-directed plan.
(2) For plan elections effective on or before
			 July 1, 2015, years of participation in the member-directed plan that are not
			 purchased under this rule shall be cancelled immediately upon the expiration of
			 the one hundred eighty day period following the effective date of an election
			 to participate in the combined plan under section 2.03 of the member-directed
			 plan document.