145-1-38 Purchase of service credit by payroll deduction.

 

 

 

145-1-38                                           Purchase of service credit by payroll deduction.

 

 

 

(A)

 

(1)

 

(a)   A member of the public employees retirement system who is participating in the traditional pension plan may purchase service credit by payroll deduction, pursuant to this rule, rule 145-2-18 of the Administrative Code, division (Y) of section 145.01, and section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.2911, 145.301, 145.302, 145.31, or 145.42 of the Revised Code.

 

(b)     A member who is participating in the combined plan may purchase service credit by payroll deduction pursuant to this rule, rule 145-3-40 of the Administrative Code, division (Y) of section 145.01, and section 145.20, 145.201, 145.28, 145.29, 145.291, 145.293, 145.295, 145.2911, 145.301, or 145.302 of the Revised Code.

 

(c)    Under a plan that is in compliance with Internal Revenue Code section 414(h)(2), a member may purchase any such service credit by payroll deduction with amounts designated by the member's employer as picked-up contributions which is also known as an irrevocable pre-tax payroll deduction agreement.

 

(2) A member may purchase service credit in any combination of lump sum payment, partial payment, or post-tax payroll deductions. A member who has entered into a payroll deduction agreement as described in paragraph (A)(1)(c) of this rule, may not purchase a period of service credit by any other method while the agreement is in effect..

 

(B)

 

(1)   Upon a member's request for purchase of service credit by payroll deduction the retirement system shall prepare a payroll deduction form which states:

 

(a)   The service to be purchased;

 

(b)   The total cost of the service credit to be purchased; and

 

(c)   Alternate plans of monthly payments.

 

 

 

 

(2)   The member shall complete such payroll deduction form by marking a plan of payment, signing the authorization for payroll deduction and returning the form to the retirement system.

(3)   A separate payroll deduction form shall be completed for each separate type of service credit.

(C)

(1)    After receipt of the member's payroll deduction form, the retirement system shall notify the member's employer that payroll deductions shall begin within sixty days.

(2)   The employer shall report all members who have authorized payroll deductions on one report provided by the retirement system. Payment shall be remitted with this report. If the employer fails to timely file a report or remit payment to the retirement system, the employer shall be subject to the same penalty and interest described in section 145.47 of the Revised Code.

(D)

(1)   A member may increase or decrease the member's post-tax payroll deduction by written notice to the member's employer.

(2)   Except as prohibited in this paragraph, a payroll deduction shall be terminated:

(a)     Within  thirty  days  after  a  member's  written  notice  to  the  member's employer;

(b)   Upon termination of employment; or

(c)    Upon termination of participation in the plan under which the payroll deduction commenced.

(3)    Except as prohibited in this paragraph, a payroll deduction shall be suspended for any period that the payroll deduction exceeds the member's net pay. ,

(4)   A member may request to purchase the remainder of a service purchase that is being made by post-tax payroll deduction. Upon receipt of such request the retirement system shall provide the member with a statement of the balance

due for the remaining service credit available. A member shall notify the member's employer to terminate deductions upon payment of the balance due.

(5)

(a)   Notwithstanding any provision in this rule, a member, who is purchasing credit pursuant to this rule with amounts described in paragraph (A)(1)(c) of this rule cannot:

(i)   Decrease or increase such payroll deduction;

(ii)   Terminate such payroll deduction unless the member has terminated employment, terminated participation in the plan under which the payroll deduction commenced, or all of such service credit has been purchased by such payroll deduction; or

(iii)      Make a partial payment as defined in rule 145-1-35 of the Administrative Code.

(b)    The member's employer shall not decrease, increase or terminate such payroll deduction unless the member has terminated employment or all of such service credit has been purchased.

Effective:	01/01/2009
R.C. 119.032 review dates:	09/29/2010
CERTIFIED ELECTRONICALLY
Certification
12/09/2008
Date
Promulgated Under:	111.15
Statutory Authority:	145.09, 145.80, 145.82.
Rule Amplifies:	145.01, 145.20, 145.201, 145.28, 145.29, 145.291,
	145.293, 145.294, 145.295, 145.2911, 145.301,
Prior Effective Dates:	145.302, 145.31, 145.42, 145.81. 8/9/07; 7/1/07 (Emer.); 1/1/06; 1/1/03; 3/27/99; 2/1/97; 11/2/96; 12/3/90; 12/4/89.